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The Global Jfewspape : x 

Edited in Paris 

Printed Stmu hawndsl y. 








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INTERNATIONAL 



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Published With The New York Times and The Washington Post 


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31^75 


SO/85 


** 


PARIS, MONDAY, DECEMBER 9, 1985 



ESTABLISHED 1887 



'* ,J ^ai 


Kenneth A. Briggs 

New YorkTima Serrtce 
ROME — Roman Catholic bish- 
iatatwo- 


rjLips, eaumg omocraaonfi a i axwo- 

^Tyeek synod here, haw called for 

oeasmes to hdp remedy problems 

. . /hat haw arisen since the Second 

?■- Vatican CounciL 


cally conservative concept of uni- 
f ormity , it recommends sach mate* 
tialsa»a“poim<rf reference'* lobe 
used by local bishops’ conferences 
to write their own teaching aides. . 
The reportaays a new compendia 

mn of the<AogMpniK$le8i based 

on the ladniy of Vatican U, 


The repost, wdeomed by Pope sbouMbe"biMicaI, Btmgical, and 
_ N lnhn Pml Tl t halamyn fthwi fl pint 81 OQC BOd fee SSSK tUD6 & preSCU- 


/'■ -• ^raditionafiai themes /that have 

- ' 'x >cea in contention daring the syn- 
;r ■■ j 7 ')3.Thea*rtcome oft!taedriveby 2 he 

' -'.-vV»shop« to make the report public 
'■’"‘Othi /iad been unclear until an an- 
■'■■■■ louncement by the pope on Satur- 

-Jay that it would be puhHshed. 

' , L/ Tic report, scheduled for release 
' ^ Vlcmday, was to be issued sqiarato- 

. y f pym a ptwfnral rn^wp ii ^ nf the 
..._ ~ iynod approved on Friday. 

- ' -^o.rekase the document was a vie- 
.7 ^ -~-iOty for the bishops in their effort 
'J ' •' ,L -‘ ~ o express independent views. Op- 
. ; '/xjgous of the mow said dial the 

- -~-v ; inly function of synods was to ad- 

rise the pope ana that their docn- 

- : client should be for bis eyes only. 

The snmmary report, prepared 

- •*•: '/• ry -Cardinal Godfried D&nneds of 

v 3 rignnn, mdndes a caH for JfcrAer 

- j Andy of local confer e nces 1 of bish- 
and a new universal catechism. 

doctrine and morab.lt 
- ilso endorses mhwmhbh «wi ad- 
vocates social justice. 

■' In the report, known as the “nitar 
:jo” the bisbcq» reviewed several 
---'xncemi that have arisen in the 20 
ii years ance Vatican n oveihanled 
. . najor areas of beBef and practice. 
Jv - Among, the issues raised by con- 
f- wvativ es were the need for ending 
. ..Jrtiaiit called abuses in fitmgy and 
-Jteology, infusing a greater sense 


tatkm of sound doctrine in a form 
accommodated to the contempo- 
rary life of Christians. 1 ' 

The section on bishops’ confer- 
ences accedes to die liberal stance 
that such local bodies make a valu- 
able contribution to the ^faireh 
But it makes a concession to con- 
servatives who question the legiti- 
macy of c on ferences in church law 
and fear that, in some cases, they 
might encroach on the authority of 
die pope and the Roman Curia, the 
church's central «t »ni i iitfni »iwi 
“Because episcopal conferences 
are so useful and necessary in the 
(Continued on Page 2, GoL 3) 


' S': ‘/J 


Ms, 



Blacks Make Show of Force at Funeral 


A marcher holds aloft a wooden model of an AK-47 rifle as a 
symbol of warfare against die Sooth African aovemroerit as 
paDbearets cany the coffin of one of 11 victims black unrest 


buried after a mass funeral in Queenstown isi eastern Cape 
province. A speaker at the ftmcral threatened that “people’s 
comma ttces” were forming to attack in white, areas. Fags 2. 


For Joint Ticket 


U.S. Budget BUI Would Force Shift in Policy, Politics 


By Jonathan Fuerbringer 

New York Times Sendee 

WASHTNOTON — A newly approved 
co mpr o m ise to require a balanced federal, 
.budget by 1991 would radically change the 
policy goals and political stakes in coming, 
budget battles between the White House and 
Congress, several lawmakers said. 

Top negotiators in die Senate and House 
of Representatives reached an “agreement in 
principle" on the proposal an. Fnday after a 
deadlock of heady two months. They said 
the full House-Senate conference committee 


the Reagan ad nritri stt ati on would i 
would depend on several undecided i 
The plan calls for steadily dedmmg annu- 
al ceilings on deficits, with automatic spend- 
mg euts set off when the ratings are exceed- 
ed. The ceilings would start at S171.9 billion 
in the current 1986 fiscal year, drop to $144 
billion in 1987. and decline to zero by 1991. 

The 1986 deficit is forecast to be at least 
$200 billkm, and undercurrent policy would 
fall to about $120 billion by 1990. 

Supporters said they hoped that the threat 
of automatic cuts would prod the White 


fiscal year, which began Oct 1. But if Con- 
gress does not act on its own to meet (hat 
the measure Hw i n any automatic 
spending am, due March 1, to $1 1.7 bQEon. 
Mr. ftnetta said Saturday that because 


balanced-budget bill for fiscal 1987 would be 

that much larger. 

Some important details of the balanced- 
budget legislation remain to be resolved 
Monday, when the foil House-Senate confer- 


the House and Senate may try to fmish their ence is scheduled to vote on the plan. 


session next week, they aright give up trying 
to find S55.5 bfltion in savings and simply 
take the $11.7-bQHon cat 
Another factor that might discourage 
Congress from making those cats now is a 
threatened veto by President Ronald Rear 
The House and Senate versions of the 


rf “mystery” into the church and run H£>use-j>enaic comerence commmec or a niamann cuts would proa tne wane gan. The House and Senate versions of the 
/estorine authority inthe bu&est and Congress were expected to approve the Honseand Congress to agree to compromise def^-rednetion bffl would permanently ck- 

— < . , , . - . nlnn thSc mri r fhrir onsla Miraioh tn wi ti irr tlu> ipfii'i* .. j a.. - ... if 


levels of church lnerarohy, oenter- 
ng an the pope. 

" At the same time, liberals , on- 
UTOSJijahasazed strengthening decukm- 
uniting at tbelocal levd and ac- 
f . » ( |__ Opting theological diversity and 
^ ■^wenness to in cfatnch <fis- 

The /pope s anuouncemeat that 
he would be made pub- 

,. " . 7 .-" - ic came in a speech to tbcsyaotTs 
inal sessicn, in which he said that 
ioman . Catholics should puisne 

- Ik; opezni^' to tie, modem wprid 
ushered in by .Vatican XL But in, a 

■ ■ . carefully balanced address, the 
GA 'NTcif-^ope also urged the rimrch “to 
i - Tvercome any false interpreta- 
: >• kms" of Vatican IL 
‘ '• ' , Recent synods have given their 
inclusions to the pope lor his pri- 
tewew. But there was strong 
MK w£-c •“'■mtinient for making the results of 
USA - "This session public among bishops 
vfao favor a greater voice for the 
nods. 

By making dear their intentions, 
bishops were credited withgiv- 
• i^'^ng added credHshty to the synods, 
• : vhich came into existence as a re- 

NASSAr oS Vatican II, and enhancing 
^'he bishops' role in the exercise of 
- ^iiuni authcaity. 

,f - “It iroresents (he maturing of 
. ’ --he synod as a body which is able to 
■rrive at a useful consensus in the 
jC- bishops’ agreement with one an- 

- nberand with the pope," said Rna-: 
' -• 'efl Shaw of Washington, spokes- 
man for the bishops in the United 

— -itates. “And they fed perfectly 
...omfortzbk in letting the world 
, now what they think!" 

PA® The report travels a careful path 
rQfj JiSwxigh asnes of importance to 
' . jolh hbcrals and conservatives and 

^‘ets forth suggestions that could 
~ ~ ! both debate and an agenda 
nr the church Tor years to come. 
One example of co mp ro mi se is 
jSSjCie request for a new catechism, a 
f of theological and moral gnide- 

I £ a T p°ks,t6 be prepared by the Vati- 
111 IJps. There has been no dnnchwide 
i since Vatican H and lo- 
conferences have for- 
ir own. 

WUk the repeat backs the basi- 


pJan this week. 

“We are onthe threshold of a whole differ- 
ent approach to dealing with the bu^et,” 
said Representative Leon E Panetta, a CaK- 
foroia Democrat who participated ic House- 
Senate negotiations on the measure. 

The White House called, the agreement “a 
positive step," but said a decision on whether 


their goals enough to reduce the deficit 
Some lawmakers said Saturday that die 
balanced-budget legislation could delay 
Congress^ work on separate legislation to 
make spending cuts of about S5S5 billion 
promised in its budget rcsohrtion for 1986. 

Passed in August, that measure sets a 
deficit eating of $1715 baffion for the 1986. 


tend (be cigarette tax of 16 cents a pock; 
which had been scheduled to revert to 8 
cents. Mr. Reagan’s advisers ate said to view 
this as a form of tax increase^ 

*T think it’s a real prcblegi," Mr. Panetta 
said. If a ddfidt-rednetum package « not 
approved by year’s did, he said, cuts needed 
to reach the $144-lnltian ceding set by the 


One issue is how much discretion to give 
the president in dmtfing what military pro- 
grams to ait if automatic cuts are needed. 
Another is whether programs that Congress 
had already moved to tom should be subject 
to /m t on ct f f?i 

The ww t titminwtity of the measure can- 
not be resolved until after it is sifted. Most 
of the negotiators agree that tins is an open 
question. 

One key concern is (he legality of nsiggthe 
Congressional Budget Office, (he White 
House's Office of Management and Budget 
and Congress' General Accounting Office to 
determine whether the deficit ceding has 

(Contfuoed an Page 3, CoL I) 



lOSEOHS 

Injure 39 in 
Paris Stores 


By Judith Miller 

New York Times Sendee 

PARIS — Bomb eaplorioos in 
two department stores iqjured 39 
persons, 14 of them seriously, offi- 
cials said Sunday. 

The explosions occurred within 
wwnnt&a of each other Saturday at 
the Gaieties Lafayette and Prin- 
lemps department stores. The 
stores are ahnost adjacent to each 
other on Boulevard Hausnuann in 
the ninth district of Paris, one of 
the busiest commercial sections. 

Three groups claimed responsi- 
bility for the explosions bat police 
treated the claims with skepticism. 

The explosive devices used led 
police to speculate that the blasts 
were the west of a disgruntled or 
unstable individual rather than of 
an extremist political group. 

The first claim of responsibility 
was by an anonymous caller to a 
French news agency who said that 
the explosions had been set by the 
Palestine Liberation Front, a 
breakaway faction of the Palestine 
Liberation Organization. 


was also claimed by the Islamic 
Jihad and a third caller who 
claimed to be speaking on behalf of 
the Armenian Secret Army tor the 
Liberation of Armenia. 

An Interior Ministry spokesman 
said that crude home-made mom- 



Haziness of Detail Oone» 
U.S. Plan on World Debt 


U« ,*in * d 

Paris firemen hdp one of the 39 victims of two explosions. 
At least 14- persons were injured, seriously hi the blasts. 


diary devices were believed to have 
triggered the two explosions. 

. The spokesman said that no evi- 
dence had -been uncovered of the 
sopbisticalcdbombsnomia2yuscd 
by tenons! , groups. He said that 
those used Satinday consisted of 
incendiaries with a inning system 
finked to a smaH explosive, perhaps 
a firecracker, connected to a drum 
of an inflammable substance. 

Fourteen people remained hos- 
pitalized Sunday, 12 of them with 
serious bums. 

The bombings were the latest m 
a series of explosions in Belgium 
and France. The extreme leftist 
group known as the Fighting Com- 


munist CeDs denned responsibility 
cm Saturday fior bombings Friday 
at installations of the North Atlan- 
tic Treaty Organization in Belgium 
and Franca 

A 23-year-old taw student was 
lolled Friday when a bomb wort 
off at the courthouse in Lifcge, Bd~ 
. No one has claimed rcsponsi- 


. In December 1978, a bomb ex- 
ploded in another department 
store, the Bazar de rHotd de YIDe, 
killing one person and in j uring 
right Last February, an explosion 
at Marks ft Spencer, a British- 
owned store on Boulevard Hauss- 
mann, killed -one person. 


. By Carl Gewirtz 

International Herald Tribune 

PARIS — The Baker plan, fee 
U.S. initiative on the world debt 
crisis, has been alow to move off the 
drawing board. 

The plan, pot forward by Trea- 
sury Secretary James A Biker 3d 
in early October, was presented as 
calling on commercial banks to 
tend $20 billion over three years for 
fee 15 most heavily indebted devel- 
oping countries, and for fee World 
Bank to lend an a ddi ti onal $9 hfl- 
lian. 

Acclaimed for its political cotn- 
mitineot to sponsoring a pofiey of 
adjustment through growth, the 
plan was an about-face for the Rea- 
gan administration, which until 
men had insisted more auster- 
ity was all that was needed 

But the details about the plan 
have turned oat to be a lot less solid 
than the commercial banks expect- 
ed. 

The $20 bfitton is only an ap- 
proximate figure, not tbs absolute 
criTtng that many batiks tfrnn ght 
they had heard; the three-year peri- 
od is not the end of the tunnel, 
which more Hketywffl take another 
decade to reach. 

And the 15 countries are really 
not IS, but as many of the debtor 
states as are willing to adopt do- 
mestic adjustment programs that 
(he World Rank ana International 
Monetary Fond endorse as setting 
the framework for a long-term so- 
lution. 


In other words, the Baker plan 
seeks only to establish a strategy 
whereby the global community 
wonts together to^fmance eaxtomic 

obSm the rram to adjust 

NEWS ANALYSIS 


in a way that sets 
path to ejqxxt-orieut- 


donxstic 
diem on 
ed growl 
lm^ in turn, u meant to result in 
financial rehahilitatian. What it 
takes to put tbe strategy into action 
has yet to be defined 
Within this long-term strategy, 
the $20 bfifion over three 
sought from commercial 
realty just a first 
it is a prelude seeded to 


ulariy the U.S. Congress, tint the 
banks are not being bailed out of 
their troubles. 

Such a realization would pave 
tbe way to approval for an increase 
in the capital of the Wadd Bank as 
well as the resources of the credit 
export agencies of the nugor indus- 
iiuImH countries. 

“I have the impression that we 
have tried to read too much into the 
overture, whereas the real action 
onty starts once the opera begins," 
a European banker observed.. 

The £20 bflHcra, according to ex- 
pats at the Weald Bank, the Inter- 
national Monetary Fond and the 
m^or commercial banks, is less 

(Continued onPage 10, CoL 1) 


By William Branigan 

Washington Post Service 

MANILA — Moves to unify (be 
Phfiippme opposition to President 
Ferdinand E Marcos for a sched- 
uled presidential election in Febru- 
ary fdl apart Sunday amid a last- 
minute dispute on the 
announcement of a single opposi- 
tion presidential ticket 

Salvador H. Laurel, a former 
senator; said at a news conference 
packed with his supporters that he 
still was a candidate for president 
against ML Marcos in the election 
set for Feb. 7. 

He said he had rejected an offer 
to nm for vice president under Cor- 
azon C Aqumo because she re- 
fined to join his political party. 
H o w ev e r, supporters of both Mr. 
Laurel and Mis. Aquino held out 
the possibility that unity still might 
be adneved after further negotia- 
tions. 

Political analysts say that a di- 
vided opposition has little chance 
of defeating Mr. Marcos in the 

dwiinn 

Mr. Laurel and Mrs. Aquino had 
ten expected to announce a joint 

fE^So wouhTron^ as presi- 
dent and Mr. Laurel would set 
aside bis longhdd ambitions by 
accepting the vice-presidential can- 
didacy. 

He heads the United Nationalist 
Democratic Organization, known 
as Unido, which he described as 
“thelaigenandmostoiganizedqp- 
poation political party in the coun- 
try today." 

Mrs. Aquino, the widow of the 
assassinated opposition leader 
Bcnigno S. Aqumo Jr., was drafted 
last week as the presidential candi- 
date of a newly formed coalition 
after supporters gathered \2 mo- 
tion signatures on a petition urging 
her to mo. 

Mr. Laurel said that he had ac- 
cepted Mrs. Aquino’s offer to run 
as her vice-presidential running 
male and that on Thursday she had 
acce pte d his demand that sbe join 
his party. But Mr. Laurel said Mrs. 
Aqumochanged her mind “for rea- 
sons undisclosed ” on Sunday 
morning. 

“This Sudden and unexpected re- 
fusal rat her part to nm as the 
Unido candidate leaves me no 
choice now bnt to decline her offer 
to nm as her vice presideni,” Mr. 
Laurel said as his supporters 
cheered. “1 can sacrifice myself, 1 
can sacrifice the presidency, but I 
cannot sa crifiee my party md my 
principles.” 

Mr. Laurel added that he would 
file his candidaity for president for- 
mally on Monday, 

Later, at anews conference, Mrs. 
Aqumo disputed Mr. Land’s ver- 
sion of events. She denied having 
agreed to nm as a candidate of Mr. 
LaureTs party and insisted that Mr. 
Laurel had accepted her desire to 
represent a newly formed coalition 
called I -aV>?Ti ng Bayan, pw fr fffag 
“People’s Struggle.” Sbe offered a 
compromise in which an Aquino- 
Laurel ticket would be registered 
under “a grand new coalition to be 
called Uiudo-Laban ng Bayan.” 

However, the Laurel camp 
promptly rejected the compromise 
Sunday at a meeting with Aquino 
supporters at Mr. Laurel's house, 
(me of his aides said. 

A new coalition “is not going to 
be acceptable,” said Luis Vula- 
fuertc, a Unido member of parlia- 
ment. 

Although the issue of party affili- 
ation struck some Philippine ob- 
serves as a minor one, roe mutual 
•Suspicion and distrust evident in 
both camps raised fears that tbe rift 
would not be resolved. Politicians 
on each side suggested that the oth- 


er was being manipulated by Mr. 

Marcos. 

Mr. Laurel said after his press 
conference that “the door is open 
any time” to Mrs. Aquino but only 
if she agrees to nm as vice president 
on his ticket. Mrs. Aquino has said 
she will nm only for president 

One Laurel supporter noted that 
the two sides had until Wednesday 
to reach an agreement. 

An opposition lawyer, Rene Sa- 
guisag. said that even if unity is 
eventually achieved, some damage 

(Continued on Page 2, CoL 6) 


Toss Reports 
Sakharov 
Is Healthy 

By Cdestine Bohlen 

Washington Past Service 

MOSCOW — The Soviet news 
agency Tass has reported that An- 
drei D. Sakharov, the exiled dissi- 
dent, was aging, bait in good health, 
contrary to “blasphemous political 
speaxlafioa” being spread by West- 
ern journalists. 

In a report clearly designed to 
counter renewed pessimism about 
Mr. Sakharov’s condition, Tass 
said Saturday that the 64-year-old 
physicist had recently undergone a 
medical checkup that showed “no 
negative dynamics in slate of 
health.” 

The medical report, filed by doc- 
tors in Gorki where Mr. Sakharov 
was banished almost six years ago, 
did reveal “deviations from the 
norm caused by aging,” Tass said. 
It said that as a consequence, Mr. 
Sakharov was following a regimen 
of “preventative medical therapy” 
at an outpatient clinic. 

Tbe- report on Mr. Sakharov’s 
health broke an 18-month official 
silence on the 1975 Nobel Peace 
Prize winner whose erik in ,Gcr’:s 
has become the most commonly 
dted example in the West of Soviet 
violations of human rights. 

The tinting was dictated by re- 
pots about Mr. Sakharov’s weak- 
ened state that have appeared since 
his wife; Ydeaa G. Banner, 62, 
went to the West on Monday to 
seek medical treatment. 

Mrs. Bonner, now in Boston 
where members of her family live, 
has held to the pledge of silence 
that she said was a condition of the 
Soviet decision to grant her a 90- 
day exit visa. 

Bat her relatives, and others ac- 
tive on Mr. Sakharov’s behalf, have 
stated publicly that Mr. Sakharov 
has been severely affected by his 
repeated hunger strikes and that be 
is not able to get adequate medical 
care in Gorki. 

In the report published Satur- 
day, Tass accused journalists and 
“politicos” in the West of spread- 
ing rumors that Mr. Sakharov’s 
brail th was declining. 

“One gets the impression that 
some of them and those who stand 
behind them would prefer the state 
of health of Sakharov to be poor, or 
better still, to become very poor." 
Tass said. 

Mr. Sakharov, who still bolds 
membership in the Soviet Academy 
of Sciences, was exiled to Gorki. 
250 miles (400 kilometers) east of 
Moscow, m January 1980 without 
ever having been charged, convict- 
ed or sentenced The banishment of 
Mr. Sakharov occurred during the 
last stages of a systematic eradica- 
tion by Soviet authorities of the 
(Cotttinued on Page 6, CoL 3) 


In Kampala, Signs of War Are Everywhere 



By Edward A. Gargan 

Nm York Times Sendee 

‘ALA, U ganda — There was laughter 
dancing Saturttay night &l the Hotel Biplo- 
iiL the green Mila of this city. But at the 
gate, there were young mm with antomat- 
ks, and ip the distance the Tumble of 
y could be heard. 

[The signs of war are everywhere, at road- 
manned by aimed men in tattered khaki 
ms,, in die anti-aircraft guns aimed sky- 
tram hilltops, in trucks loaded with sot 
hurtling through the capital over rotted 
s on the way to the battlraronL 
After nearly two decades of political oppres- 
rdn, religious strife and untold atrocities and 
assacres, Uganda is locked in a war with itself. 
^ 'he government, a coalition of ethnic and polit- 
jf si groups largely from the north, is on one 
.de. 

On the other is tbe National' Resistance 
rmy, made op predominantly of people from 
utnem tribes who have bon oppressed by 
r . ccessive Ugandan leaders. School in g has 
;.-ound to a halt in most parts of the country, 
ices of everything, from bananas to g as o li n e, 
ve rocketed. Hospitals have oo m eth an e. 


equipped and disciplined rebel army is pushing 
to the outskirts of the capital 
. On Saturday, heavy fighting took dace less 
than seven miles (11 kflometers) from Kampala 
around the village of Kawanda, and people saw 
trucks with bodes returning from the front 


The rebels have 'the capability 
to panic and empty the city of 
die government's security 
forces, 9 a diplomat said. 


Residents of Nansana, four nritas to die north, 
fled as the fighting drew near. 

“It’s fairly desperate,” said a Weston 
m m “Thia is a country that is effectively l 
a subsistence economy." 

For the last four months, the government has 
been seeking a negotiated settlement with the 
National Resistance Army, the guerrilla move- 
ment led by Yoweri Museveni, which has occu- 


vem has the capability to moimt a good targe 
strike,” a diplomat raid. “He has the capability 
to panic and empty the city of the gover nm ent’s 
security faces.” 

The c u r r ent confrontation, at the bargaining 
tabic in Nairobi and on the battlefield just down 
the road from Kampala, has roots boh in the 
brutalities of prior governments and in the his- 
torical tensions between the country's disparate 
ethnic groups, accord in g to Ugandans and 
Western observers alike. • - 

“Ever since 1964, Uganda’s government has 
been dominated by the military,” sad Sam 
Katwerc, dm managing editor of the Indepen- 
dent Star newspaper. “Dommaticai by the nriK- 


__ : -'.dashntkov automatic rifles, loot houses __ 
TV • al ears with, increasing frequency. K a m pal a 
. has been hewn into four parts with private 
^ ' litias occupying each quarter. A Well- 


and has established what it' describes as an 
Interim administration” in the areas it con- 
trols. 

Many people say they bdieve that if tbe talks 
between tbe two rides in Nairobi break down, 
the rebels will try to capture Kampala. “Muse- 


Las 

a final desperate response by the southern Ban- 
tu tribes, principally the Buganda people, to a 
history of harsh rag>katai«Q% northern tribes, 
represented by ImtonOboteandldi Aarin. Mr. 
Katwere said that Mr. Obotcfc government also 
was resented because of Ms exacerbation of 
tensions between Protestants and Catholics. His 
administration was made up almost exduavdy 
of Protestant officials. 

“Rehgjon is very important when we have 


Katwerc said. “But now, 
when it is a question of hfe.and death, ills 
primarily tribal divisions. Museveni has ceased 
to be Museveni the person. He has become a 

(Gmfinaerf on Page 2, Cal 3) 


INSIDE 

■ Sena South Asian nations 

formed an association for re- 
gional cooperation. Page 1 

■ Nicaragua’s president de- 

clnrcd that other rebel forces tn 
the region could obtain anti- 
aircraft missiles. Page 3k 

■The SUe Department tight- 
ened roles for travel for diplo- 
mats from four Warsaw Pact 
countries. Paged 

BUSINESS/FINANCE 

■ The Federal Reserve Board 

proposed curbs oo a device 
used in takeovers. Page 9. 

SPORTS 

■ Martina Navratilova beat 

Chris Evert Lloyd to win her 
third Australian Open women’s 
singles title. Page 2L 

■ TaUbadt Bo Jackson of Au- 

burn recaved tbe Heisman Tro- 
phy as UJ. college football's 
top player. Page2L 

PERSONAL INVESTING 

Concern over tbe vitality of the 
European markets occupies in- 
vestors preparing portfolios for 
1986. Page 11. 


Robert Graves, Author 
Of % Claudius, 9 Dies 


By Wolfgang Saxon 

New York Times Sendee 

NEW YORK —Robert Graves, 
the Fiigtiith poet and classical 
scholar, died Saturday at his home 
in Dcya, a fishing village cm the 
island ofMqorca.'He was 90 years 
old and had been living in seclusion 
since failing health stayed his pen 
about 10 years ago. 

Church beQs on the rang 
out a traditional sow of mourning. 
He was buried tater m the day with 
his family and neighbors in atten- 
dance. 

The local parish priest, the Rev- 
erend Ignacio Montcjo, said that 
Mr. Graves, an Anglican, had 
wished to be buried in the village. 

Robert Grays was an enor* 
mouriy profiCc and artraiishingly 
versatile writer. Best known for 
such prose works as “L Claudius” 
and *LTbe White Goddess,” ho was 
first and foremost a poet 

He regarded his other writings as 
the means of su ppor ti ng that voca- 
tion. “Prose books,” he said, “are 


tbe show dogs 1 breed and sell to 
support my cat" 

His range of subject matter was 
srtaggering. Prehistoric Greece, im- 
perial Rome, Cromwellian En- 
gland, revolutionary America, the 
Spain of tite conquistadors and 
Lawrence of Arabia were among 
hb chosen topics. Hfc also translat- 
ed works from Greek, Latin, 
French, German and Spanish and 
offered his opinions an everything 
from mushrooms to myths. 

The ideas he propounded often 
bore the mark of dawHng schotar- 
' raised the 
of scholars in one quarter 
or another. He concluded fitan his 
research feat Jesus survived the 
crucifixion, that the Emperor CLan- 
dius was a mild man and a good 
fldn w ntarr a tfle rather than a tyrant, 
and that Homer probably (fid not 
write the “Odyssey.” 

A gregarious,' strong-bodied 
man, Mr. Graves chose to live sim- 
ply and fredy, away from the stress 
Of modem sodety. Writing, he sa^, 
was Ms compulsion; he produced 



AP/1W2 

Robert Graves 

more than 130 volumes of poetry, 
fiction, essays, criticism and lec- 
tures. 

Hi$ works spanned more than 
half a century, and Mr. Graves was 
an author to be reckoned wife for 
most of that time. Attacks on his 
unorthodox theories notwithstand- 
ing, there were few who would not 

{Coafiaued on Page 7, CoL 5) 






J 



Black Militants Make 
Show of Force at Tense 


.. ■ 


WORLD BRIEFS 



By Allister Sparks 

Washington Past Soviet 

JOHANNESBURG — Uni- 
formed mili tants brandished wo od- 
en models of AK-47 rifies as blacks 
threatened at another emotion- 
charged funeral rally to attack 
white areas in South Africa, 

The funeral for 11 bl ac ks killed 
in a dash with police three weeks. 


2 Kidnapped 
LiBdrutat 

TT T J , a fee crowd and walked up to 

US. University ^ ^ 

agreed to aBow the crowd to leave 
the cemetery if it dispersed peace- 


ago in the *^^tern Cape province 
town of Queenstown was marked 
Saturday by one of the most open 
displays of Mack mflrtancy yet seen 
in South Africa. Flags of the under- 
ground African National Congress 
were displayed and songs prised 
its guerrilla wing. 

After the funeral, blade priests 
defused a tense confrontation be* 
tween armed policemen and a 
crowd of about 20 , 000 . 

- As the crowd moved away from 
the graveyard, it was confronted by 
poticemen in three armored per- 
sonnel camera. Another bktody 
da s h seemed mwnment until 18 
priests in cassocks stepped out 


Compiled br Our Staff From Dispatches 

BEIRUT — Two Leba ne se fac- 
ulty members of the American Uni- 
versity of Beirut were kidnapped 
by gmim«n Sunday morning near 
the campus in West Beirut. 

tan said con- 


folly. 
One i 


A police spokesm 

tacts were underway with Moslem 
militias in a effort to gain the re- 
lease of Joseph Salameh, an econo- 
mist at the university, and Mtmir 
Shaman, a medic*) specialist at the 
university hospital. 

The U.S. director of the universi- 
ty, David Jacobsen was kidnapped 
in May, and its dean of agriculture, 
Thomas Sutherland, was kid- 
napped in June. Their abductors 
are believed to be the Moslem fun- 
damentalists holding at least two 
other Americans. The university's 
librarian, Peter Kdbum, was kid- 
napped in November 1984. 

Ine tidnapping of the two teach- 
ers came cme day after unidentified 
gunmen seized two Finnish soldiers 
in West Beirut, demanding an ex- 
change for two Shiite Moslem bank 
robbers captured by the army in a 
shootout hours eadier. 

The two Finns, members of a 
UN peacekeeping farce based in 
southern Lebanon, were freed un- 
harmed eight hours later with the 
help of the Shiite Moslem Amal 
milrtia and the army. The two bank 
robbers were still in detention, po- 
lice said. 

Nabih Bari, the Amal leader; 
said Saturday he would resume his 
efforts to gam the release of West- 
ern hostages held in Lebanon, in 
particular two Frenchmen, Jean- 
Panl Kaaffmann, a journalist, and 
Michel Seurat, a sociologist. 

He said he hoped to succeed by 
Christmas. 

Tony Abi Ghanem, an Amal mfl- 
itant arrested in southern Lebanon 
last year, was released from an Is- 
raeli prison Thursday and Mr. Ber- 
ri "sincerely thanked” France for 
its “determining role." (UP I, AFP) 


: speaker. Stone Sizane, pub- 
licity secretary for the activist Unit- 
ed Democratic Front, refereed to 
the 11 dead as omabutho, aXhosa 
word that means fighters. 

Accusing the government of dis- 
arming the black people, then 
bringing in its security farces to 
shoot them, Mr. Sizane said: 
“Enough is ftuvig h Now is the 
time to hit bade.” 

He added: “We are now forming 
people’s committees to organize 
the amabmho to hit where it will be 
most effective, not only in the black 


The Nov. 17 “Queenstown, mas- 
sacre," as speaker* at the funeral 
called it, was the third mass killing 
by the police in South Africa this 
yean 20 blacks were shot to death 
in T-atigw township outside Uiten- 
hage ou March 22, and 13 were 
kilte d in Mamelodi township out- 
side Pretoria on Nov. 21. 

■ Land Mine Woonds 8 

A laud mine exploded Sunday 
outside a post office in a white 
industrial section of Durban, 
wounding eight persons. The Asso- 
ciated Press reported. 

Police at headquarters in Pre- 
toria said three Indian adults, three 
Tnrfian childre n and two white po- 
licemen were injured slightly by 
flying glass. 

A police spokesman in Durban 
said the explosion was caused by a 
Unmet which can be detonat- 
ed^ a timing device: There was no 
daim of responsibility. 

In another developm ent, W innie 
Mandela, wife of rite imprison ed 
leader of the banned African Na- 
tional Congress, Nelson Mandela, 
left a Johannesburg dime after a 
four-day stay to recover from ex- 
haustion and hypertension, a 
spokesman at rite conic said. 



Guatemalans Vote in Runoff Election 

otlATEMALA CITY (Reuters) — Voting took place Sund ay in t 
nJS* IdJ^^deot in G&temala after 30 yum off 

voKi. tmw-gi 

Mario Vritido Cerezo of the center-left Christian Democratic Pam 
against Jofge Carpio NicoDe of the ri^ti^ Nation^^^Un 1 ^^. 
Cercro won39 percent of the vow to Mr. NicollA 20 percent is the fist 

round of baflotiog on Nov. 3. 



Left to right, President Mohammed Zia td-Haq of Paki- 
stan, King Birendra bir BOonun Shah of Nepal, President 
Hussain Mohammed Ershad of Bangladesh, President 



7 South Asian Nations Form New Alliance 



ER MYSTERY 
WEEKENDS 


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FLORENCE - “A Murderous Habit", the VBa San Michele. AprS 4-6. 

GENEVA - “Guiliy She CrietT, Auberge da Pitre Bee. TaDoaes. April 11-13. 
VIENNA - “A Vintage Affair". Hotel Schtas Dumsein. April 18-20. 

BRUSSELS - "Murder Most Fool". Rebus du Marquis, lore, April 25-27. 
FRANKFURT - “Crimes of Passion". Schlossbotd Kronberg, May 2-4. 

PARIS - “Sing to Me a Lullaby". Aigle Nor, Fontainebleau. May 2-4. 


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By Steven R. Wtisman 

New York Timet Service 

DHAKA, Bangladesh — Lead- 
era of seven Sooth Asian nations, 
for the first time; estab- 
lished a new association for region- 


not to interfere in each other's in- 
ternal affairs. 

The South Asian Association for. 
Regional Cooperation was found- 
ed after two days of talks among 
die prune minister; two kings, two 
elected presidents two generals 
who countries comprising on e 
fifth of tiie worid’s population. 
Sooth Asia, the f™* of border 

rU«fw»« internal internal 

Upheaval and nrntnal m^irinn 

since the British withdrew in 1947, 
had been the only major part of the 
world with no association for re- 
gional cooperation. 

The prin c ipa l goals of the new 
group are to rodnee tensions among 

the member countries and to accd- 

erate cooperation m such areas as 
agriculture, rural development, 
telecommunications, transporta- 
tion, sports and culture. 

The leaders participating were 
President Hussam Mohammed Er- 


shad of Bangladesh, Prime Minis- 
ter Rajiv Gandhi of India, Presi- 
dent Junius R. Jayawaidene of Sri 
T-awin^ Resident Mohammed Zi 
ut-Haq of Pakistan, King Jignie 
Singye Wangcbuck of Bhutan, 
ic mg Birendra bir Shah of 

Nepal and President Maumoon 
Abdul Gayoom of Maldives. 

General Erahad said Sunday that 
the leaders had not discussed sever- 
al issues that have produced antag- 
onism b et w ee n some erf the coun- 
tries. 

The group did not discuss. the 
mutual suspicions of India and Pa- 
kistan about each other's nod ear 
, he said, or Bangladesh's 
tes with India over water. 

It was thus undear whether tiie: 
new association would play a rede 
in easing India’s differences with 

Palriatan, Sri T jnVa nr RnnplaHftch 

Sri t anhi hue accused India rn 
the past of fomenting its internal 
civil war, although President 
Jayawaidene has more recently 
praised Mr. Gandhi for hit efforts 
to help mediate a solution. ■ 

7jmr Rahman the Ranglariachi 

president who was assassinated in 
1981, gave impetus to the founding 


of anew Sooth Asian association 
five years ago. New Delhi’s suspi- 
cion that its neighbors might mft 
sock a group to gang up out TiuKa l 
however; proved to be a major im- 
pediment. 

The charter far the new organi- 
zation, approved Sunday in an 
elaborate ceremony, requires that 
all of the association’s actions he 
approved by cons e ns us and that it 
take care to avoid “contentious” 


The leaders also decided to ex- 
pire ways in which the association 
could combat terrorism and drug 
t rafficking in the rcgtOBL Roth is- 
sues are sensitive, for several of die 
countries accuse their neighbors of 
harboring terrorists and narcotics 


The leaders met in the starkly 
beautiful National Assembly 
bufldmg, which has hardly been 
used since its completion in 1979. 
Bangladesh has been under martial 
law for moat of that time. 

Addressing delegates from tiie 
participating countries, Mr. Gan- 
dhi said the new association was 
“an act of frith.” 

“India welcomes the diversity of 
our region,” he fWe affirm 
the sovereign equality of the seven 
states of South Asia.” . 

The new association created 

•terf mica! mmwwittenK tO dUKUSS 

ways to improve cooperation in es- 
tablishing telephone fines, weather 
forecas tin g, health care and other 
areas. 


AHhnng fi thg iMlinmt m ifck part 

of the wodd share much of the 
heritage , o o mnmufc tlion ho- 
tween them is at a low level. Most 
of the caphris are not linked by air 
connections, and telephone calls 
from cue country to wwAw mn 
take days to put through. 

Trade also is relatively meager, 
and there was no agreement over 
the weekend to accelerate trade 
tflIVc 

The 


The participating con: 
agreed to have their foreign : 


countries 

I ffllfllB " 

ten meet twice a year and to hold 
another summit conference in New' 
Delhi in November 1986. 

Diplomats said the seven coun- 
tries would have to take many 
bmII steps in "^ermtw w te n d ai ar- 
eas before tiie association could 
serve as an instrument to address 
mutual distrust- 


Cubans Land Plane in Zaire, Are Held 


KINSHASA, Zaire (Reuters) — Zaire is holding 40 Cuban soWjerj 
whose Soviet-built plane made an emergency landing during a fqghf 
between Angola, and the small autonomous Angolan enclave of 
Cabinda, official sources said Sunday. . . . 

The Cubans, together with three Angolans and a Camapoman,baroed 
the plane and tri^totede tbeir documents after the landing lasl&mday 
about 186 miles (300 kflometerr' — •*“"* ”* “““* fiMd 

the troops were h^tv^armed. 

■ebels 

deuce of Angola. The sources sam zaires 
government did not want to dramatize the inadent or mflame recently 
unproved relations with Angola, its neighbor to the south. 

Sudanese Court Jails Nimeiri Aide J 

KHARTOUM, Sudan (Reuters) — A Sudanese court has scmcncdd a 
top ride of former President Gaafar Nimem to 10 years m pnson and 
f jrted hrm $2 nriHkm on corruption charges. _ , J _ 

The court said Satnrday that Baha Edd in Idris, a f onner preswen tan t 
affairs minister, would be imprisoned for an additi on al 10 years a 

failed to pay the fine. ... 

Mr. Mri^ 53 , was found guilty of buying outdated hdkopie ra for'.t he 
snny and signing contracts with a South Korean construction company 
witho ut official approvaL He is the first senior aide of the former 
president to be put ou trial since Mr. Nimeiri was deposed m a military 
coop in April. 


Cypriot Leader Sees Rise in Support 


NICOSIA (Reuters) — Presi- 
dent Spyros Kyprianou of Cyprus 
predicted increased backing for his 
minority Democratic Party as 
Greek Cypriots voted Sunday for 
an enlarged House of Representa- 
tives. . . 

“I expect a considerable rise m 
support,” Mr. Kyprianou said as he 
cast his baHoL Voting was compul- 
sory for the 346,500 registered vot- 
ers. Results are expected to be an- 
nounced Monday. 

The two main opposition groups, 
the rightist Democratic RaDy Party 
and AKEL, the C ommunis t party, 
together hope far a two-thirds ma- 
jority in the 56-seat house, enlarged 
from 35 seats, winch they say could 
be used to force Mr. Kyprianou to 
face an eady presidential ejection. 
He has said that he will serve a full 
term to 1988. 



Conan Km 


Spyros Kyprianou 



s 



(Continued from Page 1) 
church’s pastoral work today," the 
report says, “their theological star 
tns and the question of their right 
to teach authoritatively should be 
more dearly explained and in 
greater depth. A study is urged.” 

Anotbff section, which drew the 
most criticism in the final vote; 
returned to a conflict over how 
much power should be exercised at 
different levels of the dxnrch- 

Ref erring to the principle of 
“subsidiarity," which has been 
much invoked since Vatican II to 
encourage the sahrtion of pnMans 
at the lowest appropriate levd, the 
bishops asked for a review of the 
entire concept 

“We recommend a study to de- 
tennme whether ihn principle of 
su b si diari t y , which is applicable to 
secular society, can he applied in 
tile chun k, and, if so, to what de- 
gree and in what senac," the report 

*^5ie rheme of abuses tn iJnii di 
wurat m and te ac hin g, voiced by 
man y Kd«yi J h in the re- 
port as part cf an appeal for a more 
vigorou s pro g ram to apbm (he 

ftenwP « toirninw 


. . 

Moreover, the tendency among 
some conservatives to bisane secu- 
larization far cgtain troubles such 
as disaffection from the church by 
young people and widespread dis- 
sent on moral teaching*, is accom- 
panied by a more Hbreal, positive 
of the wodd and the 
by the church, to read the 
“signs of tiie times." 

“Bishops should not only correct 
abuses hut also explain to their 
people with clarity the theological 
foundation for sacramental and li- 
turpcriffisapKne,” the report says. 

Regarding the church’s relation 
to tiie wodd, the report co m bines 
liberal stress on social activism 
with a co ns erv ati ve emphasis on. 
evangelism. 

“Sgns of the times,” the 


i XXm, who called Vatican L, 
“must be oontmuaHy analyzed so 
that the church's may be 

heard more dearly and its activity 
intensifi e d far tiie world's salva- 
tion." . 

Four areas of special attention 
arc died by the bariwps and repre- 
sent an effort to satisfy (Efferent 


interests. The flow are the theology 
of the cross and Easter mystery, 
with its impEcationi for preaching 
and sacraments; tiie theology and 
practice of adapting church teach- 
ings to local cultures as well as 
distogne with non-Christian refi- 
pats and nonbelievers; the option, 
of preferential treatment for. the 
poor; and efforts to r date tiie 

rt iii r rh tn rimmin g OOnffitipMi 

The entimsasm for (because of . 
tiie poor was resided as reflecting 
support tboae involved m^r^ 

advocates of ^cratzoverrial the- 
(rfogics of fibccation, who advocate 
support to the social and pohticri 
strides of the poor. . - 

The ecumenical movement md 
the limits of wom e n, within the 
roles permitted by tiie dum b, are 
also strong endorsed. - 

AnovecridingiKofakhi,aooord- 
ingtotiicb*sbc55S,istiiedeteanma- 
tioa to make Vatican IPs teachings 
better known and to try to gam 
greater unity in tiie midst of in-’ 
creasing diversity. They suggest the 
prcpsixtKmof mannab arm teach- 
ing devicra to further their suns. 


In Kampala, Signs of War Are Everywhere 


(Cuaft— il from Page 1) 
symbol, a threat to the north. When 
people speak of Mnseueni, they 
mean, the north." 

But Apodo Lawcko, a 
man for the go v e r n ment 
that there had been a history of 
idigtous "rtmii* strife in Ugan- 

da. “If there is any religious harmo- 
ny, it is in Uganda,” he said. “The 
question Of trihafiwn mmw from 


the mouths of defeatists. The south 
has been having its share.” 

Chi July 27, a group of army 
officers kid by Major General Tito 
OkcHo, the c ommand er of the 
armed forces, overthrew Mr. 
Obote. Mr. Obote”s government, 
according to Western human rights 
groups, slaughtered hundreds of 
thousands cT Ugandans regarded 
as opponents of ma rale. 


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Almost from the dsy Mr. Obote 
took office in Deceutoer 1980, his 
adversaries retreated to the coun- 
tryside and took up arms against 
him. After the July coop, ml but 
one of those guerrilla armies ac- 
cepted General Okello’s invitation 
tojoin the new government's ruling 
mflitaiy ooundL Only the National 
Resistance Army dedined. 

Instead, Mr. Museveni bwitin- 
ued to expmid the teajtoiy under 
his contrcj, inflicting several majpr 
def eats ou government troops- But; 
even as the National Resistance 
Army waged its military cam- 
paigns, Mr. Museveni aid the gov- 
ernment continued to hold talks on 
fanmng a umfiad 1 T pnrfgn grwwn. 

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Marcos Foes 

Faiterinjoint 

TicketFlan 


. (Contiuned from Page 1) 

to the opposition already has been 
done. ‘There will' be imnwfiate 
ptdilic diaRuriqcmfaxt,” he sakL 
“So we will havetopek vp tiie. 
pieces once more There is still 
tnne, bot not very much.” 

" ■ The Marcos govemmeirt appears 
to be greeting tiie oppositiou qdit 
until scarcely dis g uis ed glee. A 
presidential spokesman lamented 
jokingly that he is being left with 
“nothing to do" to promote Mr. 
Marcos’s re-election because the 
opposition was destroying itself. - 

The government tdeviakxLcban-' 
nd itparted extensively an tiie fsil- 
ure to anriaance a angle opporitioa 
ticket, calling it a “Ml-bkwu fias- 
co.” The staticm aired acontiastiug 
report on Mr. Marcos’s New . Soci- 
ety Movemart preparing to open 
. itscampaign headqpanrii andput- 
ting op posters. 

.Mr. Marcos has puNidycfiqiar- 

agedbothofhisc^poaiaUsaspies- 
idential contenders, assotiog that 
they are incapable of fi ll in g las 
shoes. He has accused Mr. Laurel 
of having “fraternized with theene- 
nw”; daring Wodd WarH and of 
taTWng to tiie Communist New 
People’s Army, which is croentiy 
waging a gnemtta war against the. 

Marcos government. 

Mis- Aquino, he has asserted, 
knows nothing of economics or in- 
surgency and would have to de- 
pend ou some “nincompoop” to 
run her go v iriru nenL Lately Mr. 
Marbok- vperratty feeflng tiiat a 
woman has a disadvantage in nm- 
nmg f<H- president also has rqxat- 
. edlyreboedwithcondesceiisonto 
Mrs. Aqumo’s sex. .. 

■ She has acknowledged that T 
don’t Jmow anythmg about being 
preatdenf” and repeatedly has ex- 
pressed ha reluctance to inherit 
ma ndeof her hus baud. 

: However, sosportets oonvmced 
her that rite is. urn <mly person ^io 
bouM'prcwide the 
. needw! to 
~do hattie with Mr. Marcos.; She 

accepted a draft as tfaepres ad en t ial 
candidate cf . tiie Laban ng-Bayan 
' coalition last week after supporters 
, had gathered 12 mDxm agnatnres 
<m a petition ujgmg.her to ran. 


U.S. Extends Deadline lor Bids on Jet 

WASHINGTON (NYT) — The U^. Air Foroe has extended [the 
ritaJHiv! for bids on a contract to develop a new fighter plane, thereby 
keeping open General Dynamics Corp.’s chancre of com p eting even 
though it has been suspended from recervmg new government contracts. 

General Dynamics, one of seven competitors for the fighter plane 
contract and die timid-largest U.S. military contractor last year, w» . 
suspended on Tuesday after the company and four former or cunwt 
executives were indicted on fraud charges. 

In the airforce action Friday, a spokesman said the deadline delay ym 
not connected with tiie suspension but was needed so that certain 
provisions in the advanced fighter program could be cleared op for the 
competitors. Hie other competitors are Boeing Gx. Grumman Carp., 
Lockheed Carp, McDonnell Douglas Coip, Northrop Carp, and Rock- 
well International Carp. The advanced technology fighter is intended to 
replace die F-1S, the air farce’s most sophisticated fighter. 

Qadhafi Says U.S. Attacked Aircraft 

LONDON (UPI) — Colonel Moamer Qadhafi, the Libyan leader, V 
asserted that LLS. fighter planes fired at a Libyan aircraft on a routine 
ie aHinaimiMTi flight over the Mediterranean, a Ghanaian radio station 
said in a broadcast monitored in London. 

■pie Accra statical reported that Coiond Qadhafi said Saturday, upon 
arrival in Accra for a three-day visit, dur the attack took “just 
before his current West African tour.” 

In Wa shin g ton , a State Department spokeswoman, Anita Stockman, 
aid, Tm totally unaware of such an event having tnlr?^ place.” 

For the Record 

pofioe arrested 50 ethnic Albanians alleged to be part of a 
i advocating separatism and nationalism in the southern 
an official announcement said Saturday. (Reuters) 
span v name controllers began a three-day natwnal strike Satur- 
day, airime officials said. The strikers are 4nwmiting a pay inoeare of 
more than 50 percoat to bring their salaries up to West European 
standards, and a ent in working hours. (Reuters) 

DOONESBXJRY 



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States Re-Estab3isfr 
Long-Lost Wdlife 

In the past 10 years 33 states 
hove; adapted programs to re- 
establish wMife species in ar- 
eas they were forced out ofby 
the advance of cxviljzardon.' 
Sometimes the states- trade: 
Wisconsin recently exchanged 
dver otters for Colorado pmc 
martens. . . 

Trumpeter swans are being 
reestablished throughout the 
Midwest EwentnaDy thcyviU 
drive out tbs more destructive 
mote swans, winch axe sot na- 
tive. Bighorn sheep are . back in 
Oregon’s mountams and bea- 
vers in Ohio’s rrvas. . . 

“We’re putting critters back 
that evolved here,” says Donald 
J. Dick of the Kansas gamp de- 
partment. “Critters kept die 
pests down and nature m bal- 
ance so there is a biological rea- 
son for restoring them. But 

there is also an aesthetic one. - 

Some of us think whatever 
evolved in a cextin area should 
live in that area. Man has de- 
stroyed them so man should be 
the one to bring them back." 


agement arid Budget when, die 
was head of the Environmental 
Protection Agency, as “bril- 
liant” but “driven and calculat- 
ing.” She said that “he hates 
EPA,.period." Of Rita ML La- 

vefle, the former agency official 

who served nearly ax months in 
prison for perjury, Mrs. Bur- 
jord says that, at their Sot 

meeting, “I didn’t think she wax 

as dumb as she turned oat to 
ba".- • 

At 84, Hatty Bridges is thin, 
bent and snfferrngfrom emphy- 
sema, bum OBtepofcm as when 
he was h nilding up the Interna- 
tional Longshoremen’s and 
Warehousemen's Union on the 
wharves of San Frmoscom the 
1930s. Now seuuxetized in S a n 


liyrERlVATIOIVAL HERALD TRIBUNE, MONDAY, DECEMBER 9, 1985 

Ortega Says More Guerrillas 
May Use Anti-Aircraft Arm 


Page 3 




££a 


Short Takes 

Dane! Cabey, 20, one of four 
youths dtot by Bernhard Hugo 
1 Goetz, the so-called “subway 
vigUante,” last Dec. 22, has stat- 
ed in a hospital interview with 

- the New York Daily News that 
bis three companions pinn^a 
to nd the slightly built Mr. 
Goetz because he “looked like 
easy baiL” Those three have in- 

- sisted they were merely asking 
for money to play video games. 

r . Mr. Goetz, 38, is free on $5,000 
bail awaiting trial on charges of 
attempted murder and posses- 
sion rtf illegal weapons. 

Bernadette Mobarak has 
been dismissed as a juror in a 
trial in Santa Barbara, Calif or- 
. iria, to determine whether die 
.RJ. Reynolds tobacco firm is 
foible in the death of John Gal- 
braith;^. He died three years 
■ ago .of fang cancer and other 
•admen t* after smoking Reyn- 
olds cigarettes for almost 50 
yaps. Miss Mobarak, defense 
attorneys learned, had posted 
“No Smoking” signs near her 
desk at work, often turned a fan 
air in the direction of cigarette 
smokers and complained to su- 
periors about smoking in the 
office. 

The US. nffitsj has been 
phasing out the Jeep in favor of 
larger vehicles for the past four 
year s. Now American Motors is 
dosing down production of the 
base civilian model fa favor of 

better-selling, station-wagon 

models. More than two mOKon ' 
Jeeps, civifyn. apd military/ 
Have rolled off assembly Times 
since 1940. 


Notes About People 

Ante M. Burford says in her 
book, “Are . Yon Tough 
Enough?” that she remembers 
David A. Stockman, who was 
director of the Office of Man- 


Hany Bridges 

Francisco, he told The New 
York Tunes that today’s union, 
leaders make too much money, 
have too little fight and are out 
of touch with thdxworkers, Bnt 
be added, “I have complete 
faith in the Labor movement" 

K ath k m Kennedy Tow useud 

is expected to join her brother 
Joseph P. Kennedy 2d in run- 
ning for Congress next year, he 
fro m Massachusetts and she 
from Maryland. Mr. Kennedy, 
32, announced his candidacy 
last week. Democratic Party 
sources say that Mrs. Town- 
send, 34, a lawyer specializing 
in public interest cases, plans to 
challenge Helen Ddich Bent- 
ley, the Republican incumbent 
in the Second District, north of 
Baltimore. 

George A. Keywortfa 2d, who 
has announced he is quitting as 
President Ronald Reagan’s sci- 
ence adviser to form Ids own 
industrial advisory company, 
said one reason for leaving the 
Wtite House was that things 
were at a “happy point,” and “I 
think the president needs some 
fresh Mood. When I walk into a 
room everybody knows what 
fm going to say.” 

Seven times a bride, EXza- 
beth Taylor says sbeTl probably 
try marriage again, bnt is in no 
hurry. “I think maybe Fm final- 
ly grewmgnp, and about time,” 
Miss Taylor, 53, told Vanity 
Fair magazine. But after two 
broken engagements, “pm be- 
ing very cautious. I'm sure I will 
remarry once more, but only 
once more, and boy, it’s going 
to be right Fm taking no 
chances.” 5 ■ 


By Edward Cody 

Washington Past Service. 

MANAGUA — President Dan- 
id Ortega Saavedra of Nicaragua 
has declared that “any irregular 
force in the area” could obtain and 
use anti-aircraft misaks/now that 
U.S.-supported guerrillas have 
used them to shoot down a Nicara- 
guan helicopter. 

, The wannng, a dear reference 10 - 
leftist gtwrnDas in El Salvudcr, ap- 
rpeared designed to dramatize Nica- 
ragua's outrage at the anti-Sandm- 
1st rebels’ use of such missiles last 
week for the first time in their fonr- 
year war to o ve rt hro w die Mana- 
gua government. 

Mr. Ortega, speaking at a news 
conference Friday, repeated Nica- 
raguan as ser tions that the Reagan 
administration had direedy sup- 
plied the Honduras-based Nicara- 
guan Democratic Forcevihe largest 
guerrilla f rape, with portable SA-7 
ground-to-air missiles. He said tins 
represented a “terrorist escalation” 
of Central American conflicts. 

“Here we have the U.S. govern- 
ment, which calls itself a fighter 
a garnet international iwmricm | it- 
self stimulating international ter- 
rorism,” he said. Later, he added, 
“They are opening the door for any 
irregular! race in Latin America to 
ose this type of aim.” 

In Washington, Secretary of 
State George P. Shultz denied Fri- 


phed the rebels with SA-7s. Bui he 
said, “If I were them I would cer- 
tainly want to” have socb arms. “1 
say, ‘fine, Fm all for it.’ * 

[Adolfo CaJerp Portocarrero, the 
political chief of die Vica ragnan 
Democratic Force, told the Los 
Angeles Times on Friday that the 
misrile used to shoot down the Nic- 
araguan bdjeepter was. purchased 
from a Soviet-Woe country earlier 
this year, using funds contributed 
by private supporters. “It was not 
given to us by the United States,” 
he said. “It wasn’t even brokered 
by Americans.”] 

The Salvadoran guerrilla alli- 
ance, the Farabnndo Marti Nation- 
al Liberation Front, has encour- 
aged discussion far die last several 
years about whether its combatants 
could obtain anti-aircraft missiles. 
The Nicaraguan mQitaxy has a sub- 
stantial number of the Soviet-made 
•SA-7S. • 

. Such weapons would mark a 
snbgtnntial shift in the Salvadoran 
csvQ war, where the U.S.-backed 
government has been, relying in- 
creasingly on aircraft for bombing, 
strafing and rocketing and for 
transporting troops for swift as- 
saults. To date, the heat-seeking 
missiles are not known to have 
been supplied to the Salvadoran 
guerrillas. 

The Nicaraguan Democratic 


Force announced early this year it 
had acquired a number of the 
shoulder-fired missiles and was 
training its men in their use. But 
Monday's downing of a Nicara- 
guan An- Force hehoopter was 

the first known occasion that the 
guemDas had successfully used the 
weapon. 

Mr. Ortega refused three times 
Friday to say whether Cuban nrili- 
tary advisers were killed when die 
aircraft' went down in the central 
Nicaraguan tnmiu t fjnR. The UJS. 
assistant secretary of state far in- 
ter-American affairs, Elliott 
Abrams; said in Washington an 
Thursday that Cubans had been 
lriTtwt in the crash. 

■ C n di to Process Smpen^ 

Foreign Minister Angusto Ra- 
mirez Ocampo of Colombia said 
Saturday that the Contadora 
Group had suspended negotiations 
on a peace agreement for Central 
America for five mouths at Nicara- 
gua’s request. The Associated Press 
reported from .Cartagena, Colom- 
bia. 

Nicaragua officially proposed 
the suspension on the ground that 
new governments that are to take 
office in G uatemala and Honduras 
in January and in Costa Rica in 
April could change policy toward 
the ne gotiati ons, Mr. Ramirez said. 

Colombia, Mexico, Venezuela 



y$TZ 


Miguel (TEscoto Brockmamu the foreign minister of Nicaragua, attending services at a 
Roman CatboEc church in Beijing on Sunday. Nicaragua established diplomatic relations 
with China on Saturday and announced it bad severed relations with Taiwan on Thursday. 


and Panama have been working 
with Central American countries 
for nearly three years in an attempt 
to attain a peace agreement fra* the 
region. They are known as the Cbn- 
tadora Group because they first 
met on the Panamanian island of 
Contadora. 

■ PopeDenomoesTn&iKlatioQs’ 
Pope John Paul D deplored on 
Saturday the expulsions of 10 Ro- 
man Carbolic priests from Nicara- 


gua in July and the government’s 
“intimidations and vexations” of 
the church in the nation. The Asso- 
ciated Press reported Saturday 
from Vatican City- 

In an open letter to the Catholic 
cardinal and bishops of Nicaragua, 
the pope said that the continuing 
presence of priests there was uncer- 
tain because of “obstacles of a vari- 
ous nature against the church.” 

John Paul did not elaborate, but 
he a p pea r ed to be referring govern- 


Two-Thirds of Toxic Waste Dumps Fail to Win U.S. Permits 


By Philip Shabccoff 

Mw York Timet Service 

WASHINGTON — More than 
two- thirds of U.S. tome waste 
dniwp* have failed to qualify Sot 
permanent operating permits «nd 
must now be dosed, the Environ- 
mental Protection Agency has re- 
ported. 


ARTHUR HIGBEE 


492 of the nearly 1,600 landfills 
now taking hazardous waste bad 
certified that they meet require- 
ment for manharing underground 
water and financial responsibility 
under the toxic waste disposal law. 
Sites that did not nuke such a cerri- 
. ficatkm to the agency by Nov. 8 are 
required to cease operations. 

The relatively small number of 
waste rites that could meet legal 
requirements under the law, which 
was amended last year to stiffen 
requirements for safe disposal of 

vironmental agency offinals^Just 
before die Nov. 8 deadfine the 
agency estimated that 30 to 40 per- 
cent of the operating landfill* 
would be unable to comply. 

Until Nov. 8, the waste disposal 
rites could operate under less strin- 
gent requirements. opera- 

tors that could not certify compli- 
ance with the rules were reqmrea to 
submit by Nov. 23 a plan for dos- 
ing their sites. The agency has sot 
yet received from state agencies in- 
formation on how many operators 
have submitted plans for dosing. 

Gene A. Lucero, who is bead of 
the agency’s toxic waste enforce- 
ment program, speculated that 
waste dump operators looked at 
the new 1 e&il r equirements for re- 


maining open and deckled it was 
not worth keeping their sites open. 
Such rules include refitting land- 
fills to thwri more secure, 
inamUnig ntiar mnnitming equip- 
ment and obtaining sufficient li- 
ability inam mcf. 

.' He said information be. had re- 
ceived indicated that many people 
who generated waste and disposed 
of it themselves were finding other 
ways to handle their wastes. He 
said he heard of a number of 
ml irfneties that were starting to 
rccycte their wastes instead of plac- 
ing them in surface nnpnmidnMn ti 
Other companies are looking for 


ways to reduce the of 

wastes they produce, he said. 

Mr. Lucero noted that many of 
last year’s amendments to the 
waste law were armed at just this 
result of compelling the adoption 
of alternatives to rite disposal of 
hazardous wastes is landfills, 
which inevitably leak. 

Officials said the compliance 
deadline would not immediately 
leave the United States short of 
capacity to dispose of toxic wastes. 

Well over 200 ariDioa metric tons 
(more than 220 million tons) of 
toxic waste is produced each year 
is the United States. This does not 


include the waste already in aban- 
doned disposal rites, which the law 
says must he cleaned up either by 
the waste disposers or by the gov- 
ernment 

Many of the disposal rites that 
[ailed to certify compliance were 
smaller facilities, usually situated 
oo the premises of the waste-gener- 
ating company. 

Most of the lug commercial sites 
that take waste from indus trial gen- 
erators have certified compliance 
with the roles and qualify for per- 
manent permits. The environmen- 
tal agency said SO of the 59 bag 


commercial sites bad certified com- 
pliance. 

The agency also said that 45 
waste disposal facilities could not 
comply with the rules, even though 
their monitoring of underground 
water was satisfactory, because 
they were unable to obtain the nec- 
essary liabili ty insurance. 

J. Winston Porter, the environ- 
mental agency’s adminis- 

trator for waste programs, said 
Congress was considering legisla- 
tion to provide relief to waste dis- 
posers who have otherwise com- 
plied with the rules but had not 
been able to find insurance. 


mem censorship against the publi- 
cation of priestly homilies. 

The Nicaraguan government ac- 
cuses church leaders of being 
coun ter-revol u tionary and has ex- 
pelled 17 foreign priests in the past 
four years, including 10 in July. 


.SANS 
CRAVATE 


one or the 

informal 

eating places 
al the 


PALACE HOTEL 
GSTAAD 
SWITZERLAND 

Please rail- 

Phone- 030/5 Jl 31 Trie* *>23 "3 
or 

G Jh^gadin^HotdsoftbcVMd 


.. iTT- 


U.S. Budget Bill Would Change Policy Goals 


. ^ (Continued from Page I) 

. ' 71 M - been exceeded and whether auto- 
matic spending cuts are necessary. 

. _ This might be considered an un- 

.^-constitutional mixing of the au- 
' ' thority of the executive and legisla- 
tive brandies. A court rating to that 
effect would cost the plan its en- 
forcement mechanism, the auto- 
. . j-x- .maiic cuts, the negotiators said. 

. If this happened, the House and 
. ... „ : ; ^lhe Senate could make cols of the 
' r.^same size through legislation sub- 

- -’jeetto presidential review, but that 

- ' "would bring in the same political 

considerations that govern the ex- 
_____ — ■'isting budget process. 

The key to the measure is the 
automatic spending cut And the 
- .'Crox of the automatic cut is the 

■ ^■.^requirement that it be divided 

'"Vrvcoly between military and do- 
y’^nestic programs. Many backers 
tope that these threatened cuts 
f* would be severe enough to force 

agreement fm- some tax increases. 

. The negotiators made dear Fri- 
> lay that they wanted to avmdanto- 

oatic cuts. Rather, they hoped 
’ -tagress and the White House 

Zm, ‘ vouM work from January, when 


the president submits his budget, 
until the start of the next fiscal year 
to reach agreement on how to meet 
the de&diceQing. If they failed, the 
automatic cuts would be made Oct. 
15. 

“The theme in what we did was 
to make this thing so irrational, so 
ugly that it works as a dab,” Mr. 
Panetta said. 

Lawmakers say they hoped the 
measure would force (he White 
House to agree to tax increases and 
lower military spending, and Con- 
gress to accept cuts in popular do- 
mestic programs from education to 
law enforcement. 

As of now, however, the admin- 
istration is sticking to its plan to 
propose a 1987 budget that would 
keep taxes steady while increasing 
military spending by the rate of 
inflation phis 3 percent 

Senator Pete V. Domemci, a 
New Mexico Republican who is 
chairman of the Saiate Budget 
Committee, indicated Friday that 
it would be nearly impossible polit- 
ically to meet these goals and the 
deficit cefling of $144 billion. 


Under the administration's plan, 
30 to 50 domestic programs would 
have to be efamnaird to meet die 
1987 deficit ceding, said Senator 
Bob Packwood, an Oregon Repub- 
lican who is chainnan of the Soaate 
Finance Committee. 

■ Reagan Urges Tax Overhaul 

Mr. Reagan urged the House on 
Saturday to approve a Democratio- 
h^rJr/vi plan to overhaul the tax 
systan. The Associated Press re- 
ported from Washington. 

Ways ^and^M^ans Committee 
comes before the foil House this 
week. Mr. Reagan's plea for pas- 
sage ca me amid warnings from 
Capitol LEU that unless the presi- 
dent works hard for the measure, 
the ro omenQwn for tax overhaul 
wifi die. 

In his weekly radio address, Mr. 
Reagan said: “While the proposals 
before the House are far from per- 
fect, they do represent an essential 
step toward a tax code that is fairer, 
simpler and encourages greater 
growth.” 


hpr' s 




-rtt '* 
v -V i 






Essex House Real Estate Corporation is 
pleased to announce availability of fifteen 
condominium suites at the Essex House 
Hotel on Central Park South in New York 
City. Fully furnished, designer decorated one 
and two bedroom corporate and individual 
residences from $350,000. Full hotel 
services , leasing program. 

Private lounge and concierge level (petting 1986. 

' Essex House Real Estate Corp. 

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New York, NY 10019 
(212) 484-5148 
Telex: 12-5205 


Falcon 100. 

The million dollar difference 
that leaves the competition 
out of sight. 











- : K 





After aH, there are other corporate aircraft 
on the market with that type of cabin and two 
jets. But the comparison ends there. Because 
when you look at safety, performance, life 
span or resale value, the Falcon 100 is in a cate- 
gory of Its own. 

No other business Jet has such a sturdy 
construction, no other business Jet combines 
compliance with airline standards and combat 
plane manufacturing methods. 

The result: no speed limits in turbulence, no 
detours caused by Icing, no limitations 
in life. ‘ , iKfe 

It is the fastest business jet — 
available making for tremendous time 
savings while other time savings stem 




its slow flight capabilities when it can go places 
off limits to other Jets. 

Lower approach speeds mean safer landings 
but the essential safety feature is the ease of 
handling at any speed, any altitude and here the 
Ealcon 100 Is far out ahead. 

Last but hardly least is the durability and 
resale value ; advanced design and sturdy cons- 
truction pay off: the Falcon 100 Is at the top of 
the list... year after year. 

In the competition, essential values keep 
the Falcon 100 above the crowd. No wonder 










leaders such as IBM, Sony, Rank Xerox, Saab or 
Volvo to mention just a few have chosen the 
matchless Falcon 100. 

Dassault International 


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Pag*4 


MONDAY, DECEMBER .9, 1985 


Herat 



(tribune. 


Pnh&ited Whh tV New Ytwk Time* nd TV Washington Poet 


A Week of Rush Jobs 


As so often happens, Congress and the pres- 
ident have left it to (be last few days. 

The tentative adjournment date is Friday. 
There are Eve mq'a bills left, summing op the 
entire year's work, and Mr. Reagan is said to 
be content with none in their present form. He 
has threatened to veto three; he has a mixed 
view of a fourth; he has reportedly derided to 
support a fifth only in hopes that the Senate 
can be persuaded, to amend it next year. 

' The five bills are: 

A bill to rase the debt ceiling abase 12 trillion 
for the first time, so that the Treasury am 
continue borrowing into next year; the much 
/ougfa-owgr Granm-Rudman deficit-reduction 
amendment is attached to this. The president 
has endorsed the goal of the amendment — a 
balanced budget in five years — bat has resist- 
ed the defease cuts that it would entail. Con- 
ferees reached a compromise as Friday. It is 
not clear whether be will accept it 

A continuing resolution to fund for the rest 
of the fiscal year the half of the government, 
including defense, for which regular appropria- 
tions bills hare not been passed. Present spend- 
ing authority expires Thursday night- The 
White House has threatened a veto on grounds 
that the resolution may proride too little for 
defense spending wink e xc eed in g budget tar- 
gets for various domestic programs. 

A “ reconciliation bUT restructuring a range 
of domestic programs, to meet those budget 
targets not aneredmthe appropriations process. 
Simil ar House and Senate versions are in con- 
ference, sponsors say that each would cut the 
deficit by about S20 bOUon this fiscal year and 
more thereafter. Admi nist ration spokesmen 
have warned of a veto because some of the 
deficit reduction would come from tax in- 
creases. some has already been achieved ad- 
ministratively and some is the product not of 
cuts bat of creative accounting. Both versons 


of the bill would also authorize sane new 
programs while cutting old ones. 

The farm bill new in conference. The confer- 
ees have been told that the president's advises 
wiD recommend a veto unless the conferees 
sharply cut the tail's bkri y cost. 

The tax reform bill scheduled to cook before 
the House Otis week. The Democrats preserved 
the label and the framework of the president's 
reform proposal of last May, but reworked 
drfinh The chfQl difference is that their plan 
would give a much smaller tax cut than the 

president's to people in the highest income 
brackets. Democratic leaders say the bin re- 
qniies presdential and Republican support to 
pass; the president has been standoffish. 

It is a terrible way to govern. That will be 
true however all the bluffing and maneuvering 
t urns out You have here bills of enormous 
economic, social and political consequence. 
Bunched and lost inside them are provisions 
that win affect every interest group and indi- 
vidual in America. Congress seems incapable 
of acting except in the rush of adjo ur nme nt 
when seized with the pre ss u re finally to go 
iKfcne. You can expect the president to deplore 
the behavior and habits of the legislators. 

The remarks will be deserved. Congress is 
not presently one of the world’s more efficient 
or impressive institutions. But the prerident is 
equally responsible fa the Hkdy week ahead, 
the possible train wreck. His tax and spending 
policies have produced the deficit that is the 
sauce of strain in all of tins Vgfalatinn. All 
year he has balked at moves to deal with die 
deficit h**3ni*f they have impinged on his 
preferences as to taxes vs. spending, and do- 
mestic spending vs. defense. 

The difference between this and the more 
orderly years of the fast term is that Congress 

is no longer so cranpHant. That much is good. 

— THE WASHINGTON POST. 


An Odd Israeli Response 


Something carious and unappealing is un- 
folding from the Israeli spying incident. Al- 
though an offense was committed a gainst the 
United States, some Israelis are malting thrir 
country oat to be the injured party. A burden 
is being pat upon the United States fa aslring, 
or fa asking too insistently, to get back the 
stolen documents and to interview the relevant 
offi cials. Days go by and the knots are slow to 
be nntwiri in the crucial Of transforming 

generous assurances of cooperation ou the 
political level into specific arrangements at the 
working kveL Far from moving to satisfy the 
American requests and to demonstrate forth- 
rightness and full good faith, there is a tenden- 
cy to sweep the matter under the nig. 

Some Israelis even have in mind the particu- 
lar “rug”: the U S -Tcrarfi relationship. The 
overall connection between the two countries, 
it is suggested, is too valuable to be made to 
suffer fa any excessively diligent pursuit of 
the facts in this affair. Too valuable to both 
countries, it is added. The Washington Post’s 
W illiam Claiborne reported from Jerusalem 
the other day “the frequently encountered 
view here (hat the United States is as depen- 
dent at Israel fa meeting its strategic objec- 
tives in the region as Israd is dependent an the 
United Stales fa financial and political sup- 
pat.” Or, as one official put it, “We know the 


Americans don’t give us all that money be- 
cause they like our beautiful bine eyes.” 

This is strange. There is in America a broad 
consensus behind support in g Israel on moral 
and sentimental grounds. But there is a deep 
continuing argument over whether Israel is 
more of a strategic asset, a kind of pad fa a 
launching of American faces in some nhiinate 

regional confrontation with Soviet power, a 
more of a strategic liability, an impediment to 
the pursuit of American interests in the Arab 
wodd. It is not the kind of question that a 
prudent Israeli would want to see Americans 
debating at this moment. In any event, to drink 
that America’s strategic dependence on Israd 
is no less beyond question than Israel's finan- 
cial and p olitic al dependence on the United 
States is dreaming. laadi* should not ali ght 
their “beautiful bine eyes" — their appeal as a 
fellow democracy and a haven fa Jews. 

We observe that die people in Washing ton 
most troubled by Israel’s performance in the 
spy affair include seme of its truest friends. 
They do not fear that the relationship will be 
disrupted; nor should they. But they are baf- 
ficdjto see Israd put domestic political consid- 
erations first, fail to realize the American di- 
mensions of the case and appear to try to take 
petty advantage of American gpodwiH 

— THE WASHINGTON POST. 


Other Opinion 


Combining Against Terrorists 

International terrorism is a growth business: 
There were 500 acts in 1983, 650 last year and 
experts are forecasting steady 30-percent 
growth fa some years yet Only a mqor initia- 
tive at international level will change that 
trend. That is why the imminent agreement 
between the United States and the U.&SJL on 
ways to combat the scourge is so important. 

The Communist countries have been re- 
sponsible fa much of this increase: The East- 
ern bloc, led by the Soviet Union, seems un- 
able a unwilling to distinguish between 
popular revolutions «nd acts of terrorism. 
While not even the CIA believes that the 
Soviet Union is the mastermind of wold 
terrorism, there is no doubt that terrorists 
have been armed, trained and occasionally 
financed by Russia and her allies. 

But in recent years the Soviets have found 
themselves increasingly under attack by ter- 
rorists, particularly abroad. This seems to have 
brought about a change of heart. 

Fa the West to take the Soviet Union 
seriously there must be more than a resolution 
in the United Nations. Training camps fa 
terrorists behind the Iron Curtain wffl have to 
be dismantled. The supply of guns and ammu- 
nition to terrorists by Eastern bloc aims deal- 


ers most end, and the giving of sanctuary to 
terrorists on the nm should stop. 

— The Sunday Times (London). 

It is time to end the convention that stain 
groups should always come from die country 
of the [hijacked] aircraft Airiines of any na- 
tionality ought to be able to call on a ruthless 
international rescue force: Britain’s Special 
Air Services a West Germany's Grenzscbutz- 
gruppe 9 might compete fa the contract 

Sane people will say that the 60 deaths [in 
Malta] diow it is wiser to negotiate with terror- 
ists than to by to storm them. This is wrong. If 
hjjackers believe they can strike bargains with 
governments, they will be encouraged to kid- 
nap and kin all the more. Although rate of the 
skills of an expert group should be to know 
bow long to draw out discussions, there should 
be an understood rule: No promises should be 
honored to airy hijackers who have murdered 
any hostages. At Malta the terrorists had ak 
ready shot women, jolting and dancing as they 
did. Later they threw grenades at children. 

If such psychopaths are succored by die 
governments of sovereign states Eke Libya, 
any action will justified against 
governments. Civilized peoples have to com- 
bine against Barbary pirates. 

— The Economist (London). 


FROM OUR DEC 9 PAGES, 75 AND 50 YEARS AGO 


1910: A TtimoBreedm^ System 
WASHINGTON — Mr. Franklin MacVeagfa, 
Secretary to the Treasury, in his report to 
Congress [on Dec. 8], renewed bis advocacy of 
currency reform in a more urgent manner than 
he has hitherto adopted. He also recommend- 
ed that, in the event of any general change in 
the cumucy system, the scope of business 
permitted to the national banks be extended to 
include the establishment of foreign brandies 
as well as toe entrance into toe several fields of 
business at home, which are at present restrict- 
ed to savings fanifcg and trust cnmp a niws “Our 
system,” he said, “can fairly be called a panic- 
breeding system, whereas every great national 
banking and currency system is panic-prevent- 
ing. So long as we continue with the present 
systfln we are liable to panics.” 


1935: Jews Are Beatsen in Bucharest 
BUCHAREST — Numerous persons, includ- 
ing several prominent Jewish lawyers, were 
inured in anti-Semitic riots here [ox Dec. 8] 
which broke out as a result of a movement to 
exclude Jews from (he bar. A body of 300 
nationalist lawyers and students, armed with 
sticks, broke into the Palace of Justice, where 
elections to the bar were being held, and beat 
up their Jewish coQeagnes. Several victims 
were in serious condition. The demon s trators 
then organized a hunt fa Jews. Buses and 
tramcais were stopped and Jewish-tooking 
passengers thrown into (he street, where they 
were trodden upon. It is stated that the rioters 
were encouraged by recent measures at 
Bucharest University a gainst Jewish students, 
who have been ordered not to attend lectures. 


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From a remote cabin in the Vrah> apolitical exile make* his oneprectotu phone caU to America ... 

As the Chinese Giant Awakens, the World Changes 

L OS ANGELES — Napoleon By Warren Christopher brought a nuga realignment in tl 

/ called China i de ep in g giant J * global balance of power. 

The writer is a former deputy secretay of state. This is the first cf two articles. 


“Let ha sleep,” he warned, “fa 
when die wares die will shake the 

WOdfL” That tint* fax crane. China is 
about to become a superpower. 

If China and die Soviet Union 


there were precisely 57 Co mm unis ts 
in the State Department came less 
than ri ght weeks after nriing Kai- 


Tn pint n'm th<* gprath rams tfay have shek picked up the remnants of his 
averaged over the last decade, by government and fled to the island 


a’s economy will be three province known as Formosa. 


times as big as the Soviet Union’s. China’s revolution helped define 
China's independent course in fa- America’s approach to the postwar 
ri gn affairs is producing a great drift worid. Here was proof that the Sovi- 
in the global military balance. ets aspired to reshape the worid in a 

The Own*** have emerged from Mamst image and that, unless resast- 
the Cultural Revolution — from the ed, they might In the 1950s and ’60s 
convulsive and costly process of turn- the memory of the fall of Qrina and 
ing a whole society on its head to feats of me Chinese Communists 
ffnfqTT ideological purity. hired America into divisive land wars 

And Orina J to a degree onprece- in Aria, first Korea, then Vietnam, 
doited fa a major Com muni st sod- Against that background, h is 
ety, is looking fa guidance Iras and stunning that Americans now find so 
id mare and more to much in common with the Chinese. 
e. What a powerful The shift began in the 1960* with 
he world’s largest de- the deterioration in China’s relations 
ty, with almost one- with her ostensible Soviet mentor. In 
mankind, embraces retrospect the split seems to have 


less to Marx and more and more to much in common with the Cmnese. 
the marketplace. What a powerful The drift began in the 1960* with 
example, when the world’s largest de- the deterioration in China’s relations 
vdopmg country, with almost one- with her ostensible Soviet mentor. In 
fourth of all mankind, embr aces retrospect the relit seems to have 
ideas Kke tl* profit motive, private been inevitable. Resistance to fawn 
entreprenrairshr p and marke t pricing, domination is doepfy IOOted in Co- 
in 1949 die “loss” of China sent a nese history, in the cultural self-con- 


tremor through UJ5. political life that 
re ve r be ra tes evm now. Senator Jo- 
seph McCarthy’s famous charge that 


fidriice of the CVwifncjan “Middle 
Kingdom” which fa Z000 years re- 
garded all foseignecs as “barbarians.” 


Even the Communist revolution 
could not erase all this history. When 
die Soviets asserted the right to de- 
fend anwaUtw by invading sovereign 
nations, Oechodovakia was the 1968 

dkkfl Hke it By 1969 thereu^spo- 
radic figbtmg along the Smo-Soviet 
border and Mao was trfimg 

his people to “store grain every- 
where” and “di g tmmris deep” — 
wads that resonated with Americans 
concerned about Soviet expansion. 

That parallel outlook toward the 
Soviets opened tire wayfor gradual 
normalizing of U.S.-Qrinese con- 
tacts, leading to the establishment of 
full d f j A a i mtic relations in 1979. 

Tins Sno-Sovia division has beat 
a fact of life fa many yean, but 
many may not have grasped its full 
importance. Not long ago U.S. de- 
fense planning was geared to right 
two and a half wars at once — against 
the Soviet Union, against Gwm and 
against a smaller regional power. 
Now the United States does not arm 
itself against China — but the Soviet 
Union This """ rfumgn imc 


brought a major realignment in the 
global balance of power. 

Will China slip Hack into Soviet 
obit? No — not necessarily because 
of U.S. dip lomats ’ drill but because 
of undedymg realities. 

We all have a tendency to overstate 
our influence — to confuse our pres- 
ence at an event with its cause, like 
the rooster who thinks bis crowing 
calls forte tire sun. The notion that 
America could manipulate China as 
part of a strategy toward the Soviets 
has always been the height of pre- 
sumption: to regard a nation of a 
bQlioo people as a playing card in the 
U.S. deck. Reasons of her own — an 
underlying Hnch of cultures and a 
long and troubled border — will keep 
China out of the Soviet orbit. Since 
China's positioa is grounded in self- 
interest, it is all the mare durable. 

. There have been convening new 
indications of a pragmatic Chinese 
pffl j mn * in df-aling with other coun- 
tries, notably in the handling of the 
Wring Kong matter. The Chmwa ap- 
proach in *hl< esse h»d many audi- 
ences, not least of than Taiwan. It is 
(me thing to talk about “one country, 
two systems”; it is another to enter 
into agreements to make it happen. 

. Lor Angeles Times. 


Regional 
Grounds 
For Talk 

By Dominique Mo&i 

-nARIS — to today’s complex 
Jr worid, lack of superpower agree- 
ment is due not to the ineptitude of 
diplomats or the shortsightedness of 
statesmen. Rather, it is a good illus- 
tration of an international system 
once described by the French politi- 
cal philosopher Raymond Aron as 
“peace impossible, war improbable." 

The name of the game is victory 
without war. The combatants use an 
indirect approach that combines the 
arms race, exploitation of local con- 
flicts and manipulation of pubGc 

opinion where it exists to be exploit- 
ed — that is, in the democracies. 
Summitry is part of tins equation. 

The results of Geneva will take 
time to unravel, but preliminary les- 
sons Mn be derived from the summit. 

The rim*! facta is worth emphasiz- 
ing. Ronald Reagan feels pressed by 
time; Geneva was to pave tee way fa 
resump tion of a more normal rela- 
tionship with Moscow and thus en- 
able him to leave an imprint on hristo- 
ry as the num of peace who restored 
A m e rican power. Mikhail Gorbachev 
needs time to consolidate his person- 
al power; and time is required if the 
Soviet Union, after its failure to pre- 
vent deployment of Euromissites, is 
to r egain the diplomatic initiative 
and partially revive its economy. 

The compromise in Geneva be- 


South African Truce Would Be Very , Very Easy 9 


I T IS tine that the African National Co n gress 
him membera of the Communist Patty. There 
has been an ovedanping of membeahip from the 
h eg humig - But ANC ma nbera who «re members 
of the Communist Party make*a vayde^rdu- 
tinction between these two independent bodies. 
We cooperate a lot, but the ANC is accepted by 
the C ommunis t Party as leading the straggle. 
There is absolute loyalty to that position. It is 
often suggested that the ANC is controlled by 
Communists. That has never been true. . 

As fa the charge that we are controDed by the 
Soviet Union, this, too^ is propaganda. We go to 
the Soviet Union as we go to Sweden and to 
Holland and to Italy to ask fa aeustancr. The 
Weston countries tut support us do not give ns 
weapons. Bat in the socialist countries we get tee 
weapons. So we go there to get what we can’t get 
elsewhere. And Oafs all there is in it 
There is also a lot of exaggeration about terror- 
ism. Far the better part of 20 years we were very, 
very careful in our sabotage actions to avead 
hurting anybody. We could have been terrorists 
but we chose not to be It is true that more 
recently we have stqmed things up. But this was 
after 20 years. We nave been notoriously re- 
strained in our armed actions — notoriously. 

□ 

All of ns in the ANC have always considered 
that whites, fike ourselves, belong to our country. 
We took the earliest oppor tun ity to dispel tee 


By Oliver Tambo 

Mr. Tambo, leader of the African National Con- 
gress, lives in exile in London, lids has been 
adapted from an Interview conducted by Anthony 
Heard, editor of The Cape Times in Cape Town, 
and published in that newspaper on Nov. 4. 

notion that we were fighting to drive the whites 
out. We have asked whites to join ns in the 
struggle to get rid of the tensions that come with - 
the aparthod system. We have hoped that to- 
gether we could build a non racial South Africa 
— and by nonrarial we realty do mean nonraciaL 
Ourcharter says that South Africa belongs to 
all who live in h, and we say that people who 
have chosen South Africa as their home are 
welcome there. There is plenty rtf room. We don’t 
really see pa white compatriots as whites in the 
first instance. We see than as fellow South Afri- 
cans. We are aD ban in that country. We live on 
that continent. It is our country. Let’s move away 
from these distinctions between Europeans and 
non-Europeans, whites and tumwhites. 

It would be in the interests of all of us that 
everybody feds secure. Evaybody*s property is 
secure; everyone’s bane is secure. Let us not look 
at one another's odor. Let ns not address that 
Let us see one another merely as feBow citizens. 

The question of violence worries many people. 
The unfortunate th i n g is that people tend to be 


worried about the violence teat cones from the 
oppressed. But there would be no violence at all 
if we did not have tee violence of the apartheid 
system. We can stop our struggle. We can stop 
our violent actions. But on what basis? And in 
return for what? There is always a possibOiiy of a 
trace. It would be wry, very easy, if fa example 
we started negotiations. 

[With the government?} Yes, with the govern- 
ment —when they are ready. At the moment we 
think they are not realty. A serious indication of 
readiness would be the release of Nelson Man- 
dela and other political leaders in prison. They 


emergency. Pull out toe troops from the town- 
ships, and the police: Rdeare the political prison- 
ers. Even onban the ANC Do all these things to 
create a dimate. Then we would begin to see that 
die other ride is ready to talk. 

. □ 

I am angry and frustrated, tike we all are, but 
Lwas once a full supporter of nonviolence be- 
cause I thought it would fulfill our objective. 
When that faded we had to look fa an alterna- 
tive. We found it in combining political and 
armed actions. — and his one of those things that 
you have todo, as there is no other alternative: 
1 think teat many people in the ANC would be 
gjad if there was no need fa violence: But die 
oeedla there, and we havega to go ahead with h. 

The New York Times. 


A Variable-Geometry Europe for Varied Flights 


P ARIS — The future of Europe 
depends upon Europe being un- 
derstood as possessing fluid framers, 
not always those of the European 
Commnmty 10 (soon to be 12) but 
sometimes tagger, sometimes snwllen. 

The Community is an ideaHsticalty 
coopera ti ve yet enulically and self- 
ishly uncooperative association of 
countries, torn between specific na- 
tional interests and the advantages of 
the larger association. Economic co- 
operation has slowly but steadily en- 
larged. There is not however, and 
probably never wiD be the common 
political Awnmuiuiltnig that wuc 

the ambition of Jean Monpet and the 
Community's other original buOders, 
Europe exists, nonetheless, as a 
moral and cultural entity. It incorpo- 
rates Eastern Europe in these re- 
spect^ a fact that produces persistent 
uneasiness in the EC, whose members 
appreciate their good luck but are 
aware that they represent an ampu- 
tated part of a dvQizatioa upon 
which Pttgpe, Budapest and Warsaw 
also make neglected claims. 

The risk is teat Europe's real posst- 
bnities are obscured, even discount- 
ed, because erf unrealizable ideas 
about what the Community is a 
might become. The political Emits 
of Europe were made evident once 
again at tee of the Commu- 
nity chiefs of state in Luxembourg 
last Monday and Tuesday. The crip- 
pling nde of unanimous dtw-iorm m 
rffect since 1966, could only be modi- 
fied at that meeting, not removed. 


By William Pfaff 


— whatever Europe's schoolbooks wodc when governments a national 
may teach about the advantages of an industries need oue another so badly 
international divirion of labor. teat they have to sacrifice selfish m- 

Every mqa country wants an an- - terests and find large mms of money 
tonomous aviation industry and its to spend on what often areexcecd- 
own computer designs, electronic ingiy speculattye eutetprises. There is 
chip . ca p re j ty j ' trf«n nn in n i ni e«tinim Utile ilt wMtm tO. cooperation ffl 
systems, car manufacture, cement, these cases. The threat to European 
sted and rinpboikfing, not to speak . technology — in itself,' of worid class 
of national overprod u ction of butter, — is that the existing national indus- 
wine, milk a mutton. . • trial bases, not tospeak of t he nati o n ? 

The two motives fa this are the al madcets, win not support iL The 
desire for setf-soffidency, a form of ta n ta lizin g o pp ort u nity xs presented 
the instinct of national security, and ity an open, alfEuropean market that 
tee feh need to control the national would be the richest a nd m os t sophg- 
ecQoomy. No polhidan wants to heated in the worid. . . - 
yield to an external authority a dec*- - Thus ’ the defense of E u ro pe an 
rive role in employment, inflation, technology and, through teat, of an 
investment decisions and growth. ■ • inde pendent European indn-ytrial 
Europe’s common practical soc- . economy — and of an autonomous 
cesses in recent years have come Europe — lies less in Luxembourg, 


Brussels and Strasbourg, where the 
Commnmty works, than in Ham- 
burg, Dflssddorf, Milan, Turin, Pu- 


rity because The compromise in Geneva be- 
but because tween the man pressed fa time and 
the who needs time was also 
to overstate posable because the personal opti- 
se our pres- m«m of President Reagan could 
i cause, like with the ideological optimism 

bus crowing of a Soviet leader who has been 
notion teal taught to believe that history runs in 
te China as his lava. But the encounter between 
the Soviets Mr. Reagan and Mr. Gorbachev 
gfat of pro- could not produce any kind of con- 
tatioQ of a crate agreement, given the diverging 
(card in the positions on almost all issues, 
r own — an A lesson to be drawn from Geneva 

ures and a j s that resumption of dialogue bo* 
—win keep tween the superpowers can no longer 
orbit. Since he limited to arms control 
ded in self- ^ At the peak of d&tente in the mid- 
durable. 70 s, after the SALT-1 treaty and the 
petting new Vladivostok agreement in 1974, arms ffi 

tic Chin e s e control negotiations were — at least 
jtbo- coun- for the Americans — the key element 
Hing of the of dtuate. At the time, Soviet adven- 
□tineseap- omsm in the Third Wcrid was initial- 
tnany andi- fy favored by opportunities created in 
'<ti wan.l t is Africa in the aftermath of tee Portu- 
ne country, gucse revolution; adventurism soon 
ter to enter took a new form and reached new 
it happen. peaks, endangering the ditente pro- 
s. cess itself, as demonstrated by the 

Soviet invasion of Afghanistan. 

Today, in the mid-1980s, could one 

envisage at least a partial reversal of 
9 the priorities of the 1970s by fully 

y balancing regional negotiations and 

/ arms control? The U.S. administra- 

tion is split on arms control between 
from the diszOosiai and sheer rejection. The 

nee at all Kremlin, far its pan, has not abao- 

[parthad dotted the idea of halting Mr. Rea- 

can stop gan’s Strategic Defense Initiative, al- j 

l And in- though it now seems to count on » 

nfityof a budget-cutting by the U.S. Congress 

example and on the intrinsic scientific obsta- 

cles. The Soviets win of course con- 
i govern- tinne to exploit tee SDI as one way of 

meutwe dividing Europeans and Americans 
ration of and potting America on the diplo- 
m Man- malic defensive. But they may have 
m. They decided that continuation of the U.S. 
estate of program will not prevent dialogue: 
ie town- More skeptical about arms control, 

J prison- the superpowers are also more wor- 

thrngs to ried by regional conflicts. The Soviet 
» sec that Union finds its latest conquest, Af- 
ghanistan, more difficult to digest 
than expected. It hesitates to take 
are, but more risks in Central America, and is 

encebe- largely on the defensive in the Middle 

bjective. East. It wants to be a party to any 
alteraa- negot iati o ns , bat also feds the grow- 
tcal and ing weight erf terrorism and tee dan- 
ings that ger of revolutionary Islam 

creative: Shared vulnerability does not nee- Jr 

rould be essarity breed complicity and is not in 
But die itself sufficient ground fa agree- 

1 with it meat Moreover, whereas the two su- 

perpowers can at least pretend that 
they are in control of their arms pro- 
grams, regi on al conflicts largely es- 
cape them. What unites tham in the 
l+n Third Wodd is a common impa- 
L lO tanco and a common incapacity. 

That i ncapa c i ty to control events 
omits the possibility of puttin g re- 
wfaere rite gional confects at the heart of the 
im Ham- East-West dialogue. It is absurd to 
rto, ftr- expect regional dialogue to compen- 


sate alternative to, cooperation in tant than tee cooperation generated 
these cases. The threat to European by specific projects that excite and 
technology — initsetf,of wodddass engage scientists, eng in eers and m- 
— is teat the existing national indus- - dustnal managers and inspire new 
trial bases, not tospeak of ti re na tio n ? administrative and legal 
al maricets, will not support it The to serve practical needs, such as the 
ta n ta lizin g o pp ort u nity i» presented quasi-autaiomoas amalgams of pnb- 
TEuropean market that he and private enterprise that run tiie 


in the Community's headqnaitera parties, may be a sufficient baas for 
and at its conferences is less nnpar- sustaining regional dialogues 


wonkl be the richest and most sophis- 
tkated in the worid. 

- Thus' the defense cf Euro pe an 
technology and, through teat, of an 
independent European industrial 


good luck but are abow aD in high-tech areas where 
represent an ampu- the scale of a project compdkd sacri- 
a civilization upon fices to international cooper a tion, 
udapest and Warsaw TheAirhcs.forexart^jle.isaEQropc- 
ited claims. an success, after a senes of individaal 

(Europe's real possir national failures to make a commer- 
ured, even discount- dal aircraft to compete with Boeing 
unrealizable ideas and Douglas. The European space 
> Community is a program and its Arianc rocket are 
The political Emits gnccegge*. The Tornado European 
made evident OllCe fi ghfw and ftp fVmrmx tr hm hrrn 

itmg of the Cbmmo- technological successes, evm if Coo- 
tale in Luxembourg conk failed co mm erc i ally (in part 
1 Tuesday. The crip- dw to a surge in fuel prices), 
urimous decision, m The French are now canvassing- 
, could only be modi- thdrnei^ibarafah^imbinldii^a 
ing not removed. E ur opea n space shuttle, Heanfts, as 

certainly, but on a .well as a new series of vny high-tech 
dosety' defined minumm. On the projects grouped under tee title of 
otoe: hand, the common economic Eureka. The French constantly buEy 
strategy to which the Community as- and cajole the other Europeans to 
jnres would inevitably benefit one come man ambitious space and aero 
cotmtiy mare titan another, a penal- nautical programs, justified by the 
me one a another. .Each wants pro- fact that without France’s pressure 
tectum of specific interests against and Madmunling, no European space 
com p et i tion. Bat beyond that, each a commercial aviation industry 
major European nation wants to would probably now be kft to oran- 
mamtain a sofBdeatty extensive and pete with the United Stales, 
balanced economy to be a u t o n o mous Cooperative European - programs 


big aero nauti c and space pungramf 
These are creative responses to the 
needsofaEarqpewfaosemoraLintd- 

lectual and even technological identi- 
ty is beyond doubt, but for whom an 
Mltonmnn iiK fifflm r enwint nnan* 

CJSH& William Pf off. 


One cannot dream of returning to 
the Machiavellianism of the 19th cen- 
tnry. Given tee nature of the Soviet 

system, dialogue can onty be fizm and 
without illusions. Yet the stmerpow- 
ers are learning the limits andfrustra- 
tWOS of power. If they r w- n grrig* that 
regional conflicts are as mnrti a 
source of vuhiaabOity as of opportu- 
nities, there is room for riialty n- 

^ is associate Orator cf the 

Frmgas des Relations Inter- 
yxton&s- He contributed this comment 


LETTERS TO THE EDITOR 


Pakistan Nixdiear Flans Haq stated categoricafly teat Palti- 
• . - Stan has “neither- the desire nor the 

lit rctytiutye to the opinion column ■ .capability . to produce an atomic 
“Pakistani ‘Iskmic Bomb’ Is Abnost bomb.” He added that “we wish to 


dear rangy for peaceful purposes T| 
<®ty- He said India and Pakistan ^ 


‘ ‘Pakistanis 'IsUumc Bomb’ Is Almost bomb.” He 
Here” (Dec. 2) by Harold Freeman: ’ obtain nude 
Pakistan’s nndear p ro gr a m stems . fnl purposes 
from tee country's desperate need fa already bron 
energy; there is a woeful drfiaeacy in suits m a 
convoitional -energy resources. The treatmeaLR 
program k needed to meet the re-, equivocal asi 
qrarements of pcesenjand future nu- * desire to n 
dear power plants, and not format- Mr- Fresa 

petition with other dmhtries which 
may be producing atomic bonbs a n«*«d byf 
have the intention of doing so. Paki- totally basefe 
stan is pmsumg a- peaceful nndear , 

program because it Ddfeves that nn- 
dear power bolds tee^ Jay feourfu- Embassy 

tureecaianksdevdopmentahdpre- 
sents the cmly viaWe ahemative fa . Mr.Freen 
overcom in g the critical power shot- iobked tee r 
age being experienced in thccountry. . President 
■DuriM Jus viat .to Cairbvlast semblylastC 
month, President Mohtffnaed 2a d t. . .was Pakistar 


obtain nndear teehnd^y fa peace- 
ful purposes” and that its use “has 
already brought about significant re- 
sults” in agriculture and medical 
treatment Refusal to accept such un- 
equivocal assurances reflects bias and 
a desire to malign Pakistan. 

Mr. Freeman’s daim that Paki- 
stan’s nuclear program is being fi- 
nanced fay Libya a Saudi Arabia is 
totally baseless and has no truth to h. 

AKRAM SHAHEEDI, 
Press Attache. 

Embassy of Pakistan, LdndoL 

Me. Fre&nan appears to have over- 
lap ri« important declaration by 
President Za to tee UN General As- 
sembly last Oct 23 invdndrhesaidit 
.rfes Pakistan’s polkyto develop nu- 


Je Intcraational JSSS^Sb 
Agenqr. He further said both conn- 
tnes should agree to a nndear weap- 
ons*ce zone m Soute Asia, as Paki- 
stan has been advocating fa yearn. 

khwaja daz sarwar, 


note that “Islamic 

wradbot not the dia^jora. The na- 

SSS*-? **“ wy’of the > 

drate tap than a havS^ ~ 
wconty .h it sot time we rethought 
saaosanct BnkbSvcm 
nationhood and territory? 

ANGUS SIBLEY. 
London. 






Page 5 



. . • , . ' INTERNATIONAL HERALD TRIBUNE, MONDAY, DECEMBER 9, 1985 


Forpeoplewho we only satisfied 
wim the best there's now an 
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f 






Page 6 


INTERNATIONAL HERALD TRIBUNE, MONDAY, DECEMBER 9 , 1985 


U.S. Ti^htensRules 
On Travel for Diplomats 
Of 4 East-Bloc States 


By Bernard Gwertzman 

Hew York Times S&vice 

WASHINGTON - The U.S. 
government now requires diplo- 
mats of Hast Germany, Poland, 
Czechoslovakia and Bulgaria- to 
make travel arrangements within 
the United States through the State 
Department 

The new policy, which runs 
counter to previous efforts to keep 
travel as uninhibited as possible, 
will make it posable for the Feder- 
al Bureau of Investigation to keep 
track of the four nations' diplo- 
mats. 

The government did not indicate 
that travel by nationals of the four 
countries would be curtailed. 

But it has warned all the East 
European allies of the Soviet Union 
that their diplomats' right to travel 
freely will be curbed if any of their 
nationals are found spying in areas 
that are dosed to Soviet citizens. 
State Department officials said 
Saturday. 

The moves are part of an effort 
to prevent East Europeans from 
spying on behalf of the Soviet 
Union. 

Two other Soviet allies — Roma- 
nia and Hungary — also have beat 
warned against spying, but their 
citizens do not have to make travel 
bookings through the State Depart- 
ment 

Other curbs are being placed on, 
some diplomats from Cam. Libya, 
Iran, Afghanistan, North Korea, 
Vietnam, Mongolia and Cambodia 
and representatives of the Palestine 
Liberation Organization. 

The government’s rationale in 
curbing the East Europeans was 
discussed Thursday in Senate testi- 
mony by Rozanne L. Ridgway, as- 
sistant secretary of state for Euro- 
pean and C anadian affairs. The 
testimony was made available Sat- 
urday. 

“Clearly," she said, “Moscow’s 
East European allies do involve 
themselves as surrogates for die So- 
viet Union in the illegal acquisition 
of int ellig ence and controlled tech- 
nologies. In taking steps to reduce- 
the espionage threat in the United 
States, we are mindful of the East 
European dimenskm.’' 

The new curbs on some of the 
East European countries reflect a 
foreign policy that differentiates 
between the Soviet Uman and its 
allies, and among the East Europe- 
ans. 

The United States has been ap- 
plying the most restrictive tram 
rules to Soviet citizens in retalia- 
tion for Soviet curbs cm the travel 
of Americans. 

The Soviet government not only 


requires that travel by Americans 
— and other foreigners — be ar- 
ranged through official agencies, 
but has placed about 25 percent of 
the Soviet territory altogether off 
limits to foretgnBS. 

In return, the United States has 
dosed about 25 percent of its tem- 
toiy to Soviet citizens, including 
areas of sensitivity, such as the Sili- 
con Valley computer development 
area near San Francisco. 

Henceforth, four of the Soviet 
allies — Bulgaria, Czechoslovakia, 
East Germany and Poland — will 
have to book travel through the 
Slate Department for their diplo- 
mats, although apparently no areas 
have been declared off Hmim 

A State Department official said 
that R omania and Hungary have 
been treated more favorably in rec- 
ognition of the independence of 
Romania from the Soviet Union in 
foreign policy and of Hungary’s 
relaxed domestic attitudes. 

In the light of recent espionage 
cases, some involving East Europe- 
ans apparently acting on behalf of 
the Soviet Union, several bills have 
been introduced in Congress to re- 
strict the number of Soviet-bloc 
personnel in the United States and 
to indnde East Europeans in the 
restrictions previously placed on 
the Soviet Union. 

The State Department has been 
concerned that extending the travel 
restrictions to East Europeans 
would lad to retaliation against 
Americans, who now are allowed to 
travel fredy within the East Euro- 
pean countries, and thus cut back 
on the gathering of valuable infor- 
mation. 

“Given the dosed and controlled 
nature of East European societies,” 
Mrs. Ridgway said, “oar ability to 
travel unimpeded by controls or 
restrictions is of significant value to 
us. The East Europeans do not im- 
pose discrinniiaioiy restrictions on 
travel by U.S. personnel in their 
countries. Our personnel can travel 
at wQl without advance notification 
or authorization. 

“Hence, in reviewing possible 
travel restrictions on East Europe- 
an personnel in this country, the 
challenge to our own interests is 
dear. 

“We need to preserve our ability 
to acquire vital political and eco- 
nomic information, maintain con- 
tacts with religious leaders, dissi- 
dents, academics and cultural 
figures, monitor military maneu- 
vers or the installation of new 
weapons systems, expand opportu- 
nities for American businessmen, 
provide the full range of consular 
services to American citizens in dis- 
tress.” 



Andrei D. Sakharov, 
in a pho to gr a ph made 
this fan in Gorki and 
released by his family. 
Mr. Sakharov’s wife, 
Yelena G. Bonner, with 
a grandson, Matvei 
Yankdevich, at Logan 
International Airport in 
Boston after her antral 
from Rome. 



Sakharov Is in Good Health, Toss Says 


(Cautioned from Page I) 

human rights movement in Mos- 
cow. 

In August 1984 Mrs. Bonner was 
tried rat charges of anti-Soviet slan- 
der and given a five-year sentence 
of exile to Gorki, a Volga River city 
off limits to foreigners. 

The last time Tass issued any 
information about Mr. Sakharov 
was in May 1984, when he began a 
hunger strike to persuade authori- 
ties to allow Mis. Bonner to leave 
the Soviet Union for medical treat- 
menL 

At that lime, Tass said that Mr. 
Sakharov was eating regularly, feel- 
ing well and leading an active life. 
According to recent reports, Mr. 
Sakharov's hunger strike in 1984 
endetF'mily when he was fed by 
force at a hospital in Gorki. He 
reportedly suffered a minor stroke 
at the time. 

The Tass report said that Mr. 
Sakharov had undergone a com- 
plete checkup at the Semashko re- 
gional clinic al hospital in Gorki un- 
der the supervision of “highly 
qualified" specialists. 

Mr. Sakharov was following his 
prescribed treatment “meticulous- 
ly,’’ Tass said, and his doctors de- 
scribed him as a “model patient.” 

According to Tass, Mr. Sakharov 
wrote a note of thanlra in the hospi- 


tal visitors' book, in winch he said: 
T have no complainis to make 
about the medical workers of the 
hospital. I am satisfied with die 
attention and care I receive from 
attending physician Aminyeva and 
the m e d ic al nurses.” 

■ Bonner Is ‘Very Concerned* 

Kerin Kbse -of The Washington 
Post reported from Boston; 

Looking strained and pale, Mrs. 
Bonner arrived in the United Stales 
Saturday and said she was “very 
concerned and anxious” fra her 

husband , 

Mrs. Bonner, who praised Amer- 
ican support for her husband. said 
she win attempt to telephone Mr. 
Sakharov in Gorki. - 

Although Mrs. Bonner refused 
to say more about hra concerns for 
Mr. Sakharov; her son, Alexei L 
Semyonov, said that if Soviet au- 
thorities refuse to allow the call to 
gp through, his mother’s- quest fra. 
medjcalhcip here “may be point-' 
less. She will be worried too much 
to have the operation.” She is in 
Boston for treatment of a severe 

heart ailme nt 

At Loganlntemanonal Airport, 
where Mis. Bonner arrived from 
Rome after her glaucoma condition 
was examined, Mr. Sdnyonov said - 
that he -expected a can would go 
through by Tuesday. . 


Shultz Says 
Trip Shows 
Support for 
East Europe 

By John M. Goshko 

Washington Pan Service 

WASHINGTON — Secretary of 
State George P. Shultz, who is to 
leave Monday night on a 10-day 
European trip, said he believes his 
visits will snow that the United 
States acknowledges and supports 
tire individual “identities and aspi- 
rations” of tbe countries of Eastern 


With Dismissals , Poland 1 
Hardens Line on Schools i 


Mr. Semyonov expressed out- 
rage at the report published Satur- 
day by . Tass that contended Mr. 
Sakharov was in good health. 

Calling die Tass account false, 
Mr. Semyonov accused Soviet doc- 
tors of violating medical ethics fra 
“knowingly allowing intrusion fra 
political purposes” into titeir treat 
meat of Mr. Sakharov. 

Doctors in Gorki “are under the 
control of the KGB,” Mr. Se- 
myonov said. 

Mrs. Bonner was met at the air- 
port in Boston by her mother, 
Roth, 85; her dangfrter, Tatiana; 
her daughter-in-law, Lisa' Se- 
myonov; and three grandchildren. 
She was accompanied by Mr. Se- 
myonov and hra son-in-law, Efrem 
V. Yankdevich, who both went to 
Italy to meet ber on Dec. 2. 

Mrs. Bonner's mother is a survi- 
vor of political oppression in the 
Soviet Union. Her husband was 
executed in 1937. She reminisoed 
Saturday at her family’s home in 
the Boston suburb of Newton, 
Massadmsetts, about her years in 
S talin’ s slave labor camps. 

“Nothing was pleasant, to be 
sure,” she said. “We survived, and 
here I am to talk abotit it" 

Ruth Bonner spent about 17 
years in labor camps, prison andin 
crile after her husband’s execution. 


EEs trip is to include stops in 
Romania. Hungary and Yugosla- 
via. . 

“The United States and its allies 
have always insisted that rite divi- 
sion of Europe is artificial, unnatu- 
ral ?nd illegitimate,” Mr. Shultz 
said Friday at a news conference. 

Romania and Hungary are mem- 
bens of the Soviet-dominated War- 
saw Pact; Yugoslavia is an inde- 
pendent Communist nation that 
pursues a policy of nonatigumenL 

Mr. Shnltz said: The peoples of 
-tilB Hmw n half «f tharwi tinent did 

trot choose to be cut off from the 
peoples of the Westi If there are to 
be more constructi v e East-West re- 
lations, they too must share in its 
benefits.” 

“I think it is helpful tons, and I 
. hope to them/* be added, “to hear 
from the United States what our 
view is of East-West relations and 

OU arm* ffnrrtwil mrttow and mat- 
ters across the board. This is an 
opportunity for me to do h. I’ve 
wanted to do it for some rime, and 
this is the fist real ch^nm that. I’ve 
had.” 

State De part ment officials, elab- 
orating privately on Mr. Shultz’s 


remarks, cautioned that they 
shook! not be interpreted as an 
attempt, after last month's Geneva, 
summit meeting, to sow dissension 
in -the Soviet bloc or to encourage 
East European governments to 
make any dramatic assertions of 
independence from Moscow. 

Instead, the officials said, Mr. 
Studies trip is intended as a low- 
key reaffirmation of the Reagan 
fld m hiin f ra l i nn ’a contention that it 
does not recognize the Soviet 
Union's hegemony over Easton 
Europe as a permanent condition. 


Administration officials tend to 
divide the East European countries, 
into two categories. 

Hungary, -Romania and Yugo- 
slavia filiter pursue relatively flexi- 
ble domestic economic and social 
policies ra have shown some inde- 
pendence in foreign affairs. . 

Poland, Czechoslovakia, East 
Germany and Bulgaria, by con- 
trast;' have governments font main- 
tain lightly rqpresHve mtemfll con- 
trol and foUcrw Moscow’s lead. k 


By Jackson Diehl 

Washington Post Semee 

WARSAW — The dismissal by 
the Communist authorities of 
about 70 university rectors and 
deans has prompted protests from 
students and faculty members and 
si gn aled a toughening approach by 
tbe government of General Wqj- 
deeb Jaruzdski to the nan on's re- 
bellious intellectuals. 

Acting on recommendations of 
Communist Party cells. Education 
Ministry officials dismissed six rec- 

tore, the top university officials, 
and removed dozens of deans 
charged with individual schools 
and administrative affairs in 15 of 
Poland’s 91 universities. 

Although carried out more than 
a week ago, the actions were con- 
finned only Friday night by the 
Official news agency PAP. 

The dismissals followed a con- 
troversial higher education law en- 
acted this summer that drastically 
curtailed the role of students and 
faculty members in university ded- 
sion-making, reintroduced political 
criteria into course work and re- 
quired professors to take loyalty 
oaths. 

University teachers, students 
and opposition intellectuals said 
the law was meant to end indepen- 
dent activity in Poland's schools, 
and that the rfiEmi reals may mark 
the beginning of an extensive purge 
of intellectuals. 

‘The firings are a kind of test to 
see what will be tbe reaction of 
society,” said Bronislaw Geremek, 
a medieval historian and adviser to 
tbe outlawed trade union Solidari- 
ty, who was dismissed from the 
Academy of Science earlier this 
year. “If there is not much reaction, 
they will move into a new phase of 
getting control over all intellectual 
circles through aggression:" 

Several university senates, made 
up of student, faculty, and universi- 
ty worker r ep r es en tatives, met last 
week to criticize the dismissals. But 
students in Warsaw decided not to 
stage a strike, fearing they would 
not attract enough active public 
support to win a confrontation 
with the authorities. 

“It is simply not a good rime in 
the cannery to start a student 
strike,” said a university source ac- 
tive in the talks. “But if the authori- 
ties push further now they will be 
risking a united response.” 

Government officials have said 
the new university law and the dis- 
missals were steps to improve effi- 
ciency and restore the “socialist 
character” of education. 

Faculty members and political 
analysts say ■ that General Jaru- 
zelslri is intent an restoring Com- 
munist Party- leadership to key so- 
cial institutions before a party 
congress early next year. The Polish . 


party’s lack of KmtroIowwttBec* m 
tual" circles and cultural activities 
remains tree erf Hstncst glaring fail- 
ings by the standards of tbe Soviet 
Woe. they said. /, 

“The authorities know the mid- . 
ligentsia has a tremendous impact - 
on the social climate,” Mr. Gere/ - 
mek said. “And the spirit of free- 
dom in the Polish people is first of-.. 
aU, they think, connected to the,-; 

intelligentsia.” 

Most of the deans and rectors^ 
dismissed last week were political- ' 
independents or Solidarity sysops-" i 
thizers who had been ejected by i . 
senates and hoped to keep the uni- # 
versifies somewhat autonomous - 
from the Communis; party and-, 
government. - j 

Under the new law, the ministers 
of education was given blanket au- 
thority to dismiss administrators 
and appoint new ones. In the fu- • 
ture, the minister also will have the --) 
power to veto rector candidates, r 
uommaied by tbe senates. 


U.S. Critidzes j 

Soviet but Denies " 

m 

Boycott of Nobel 'l 

Heaters 

WASHINGTON — The State 
Department has denied that the 
scheduled absence of the U.S. am*. 
bassadar to Norway at an award,. 1 
ceremony fra the 1985 Nobel Peace •„ 
Prize amounted to a boycott l~ 

The award, won by the Interna-" •£ 
tional Physicians for the Preven- 
tion of Nuclear War, has been critic- ’ 
rized in the West because of alleged-' 
Soviet human rights abuses. Thtf" 1 
prize is to be awarded Tuesday to- J 
the co-chairmen of the group. Dr.' 
Yevgeni Chazov of the Soviet ' 
Union and Dr. Bernard Lown of 
the United States. 

A department spokeswoman;- 
Anita Stockman, said Saturday '- 
that the U.S. ambassador. Robert 'j 
D. Stuart, would not be in Oslo ” 
during the awards ceremony .’>• 
Asked if this represented a boycott,**' 
she said, Tt just happens that heV* 
not going to be there.” She said that j 
the U.S. chargfc d’affaires would' 
attend in his place. * r * 

Tbe State Department sad, “We' 1 
believe the efforts of Dr. Lown and'” 
other nongovernmental interna- 
tional participants who state their^ 
views and publicize them through- " 
out the West are a sincere effort to. J 
grapple with difficult issues. The'" 
same cannot be said for Dr. Qia- 
zov, who is an official of the* 
U-S-SJL and cannot take public* 
positions oot sanctioned by his- ' 
government” «■: 


( a Hie r 










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Page 7 



* 




% 

“Sw 

/^»> 

Ajwtiattd Prm iagCoouxsttee for Multilateral Ex- 

BEUING — . China’s foreign pbn Controls, bared m Paris. — 

^nmnstcr said, the United Stales stifl committee clears technically 
- frj «>., regarded Beijing as a potential ad- phisdcaied Western export 
% ; versflty and that bariwy remainec 
- }tm rdatidns -between the two n* 
die official Xinhua newj 
h Sageacy WFW-ed Sunday. .•„ 
c ‘-^3. Foreign Minister Wu Xtieoian, a 
t fnwmh er of the ComutODSt 
poEtbmo, said that overalT 
'ti^^^pmentof relations between China 
; w "^ and the. llffited States had been 
v, steady^ this year, and that 

tc^ ^Chma^deeply appidates‘’grow- 
cooperation with Japan. 

. t| '^ Bat he cited the Taiwan issue 
P^and UiLexport restrictions as re- 
r„ _ maunng obstacles with Washing- 
i. 3 ,ton, and said Japanese investment 
technology transfer should 
on to a “higher stage.” ... 

h Mr. Wn said he welcomed the 
> . ./'^United States’s decision in October 
:h r 1 rtto* restrictions on spans af 

" ' high technology to Q>j™, as moni- 

^-^tcffed by COCOM, the Cooniinat- 

— " ■ . 7^ “ : * ~ 

>utDe Jordan Moves to Restrict Mitterrand Denies ^ ^ 

i ntv > *m ■■ * ' t W* RcPOi^iB OH fV illT TC passed Friday, 

^Moslem timdamentahsm, of Prime Minister ft. 


INTERNATIONAL HERALD TRIBUNE, MONDAY, DECEMBER 9, 1985 


Harriets Ifemain forlLS.and China, 
But Rel itions Are 'Steady,’ Wu Says 


East, West 
Join At UN 
To Condemn 


Potter Stewart, Former U.S. Justice, Dies 


countries. 
fThe Soviet deputy foreign min- 
ister, Mtkhail S. Kapitsa, has hdd 
“frank** talks with Chinese oJS- 
cids, including Mr. ;Wo, on nor- 


struct the mothedand,- turning it 
into a strong socialist power," said 
IiPe^d^wty prime minister and « # ' 

a PoHtbnro member. He said that m UnYll*lCHI 
in order to realize that aim, “we *.”■ ***"«' 

have to maintain stability and um- 

“ • York Tim* Service 


ty- 

Mr. Li, the adopted son ofZhou 
Fnlat, the former prime minister. 


UNITED NATIONS, New 
York —The United Nations Gen- 


By A1 Kamcn 

Washington Pan Sender 

WASHINGTON — Potter 
Stewart, a pragmatic, nonideotogi- 
cal Supreme Court justice whose 
mastery of internal politics made 
him a major force on the high court 
for 23 years until his retirement in 
1981, died Saturday in New Hamp- 
shire following a stroke Dec. 2. He 
was 70 years old. 

Justice Stewart retired from the 



Foreign dipj 


said the state- 


ment 1 s wording suggested that the 
talks had made no progress.] 

a Leaden Address Students 

The Chinese uov er m u cu t sent 
several of its top leaders Sunday to 
tdJ a convocation of university stu- 
dents that they should follow the 
leadership of the Communist Party- 
and concentrate on their studies 
rather than cn political danoustra- 
tionsand protista, the Los Angeles 
Tunes reported from Bqjmg. 

Today’s central task is to recan? 


About 6,000 students attended 
the official ceremonies in honor of 
the 50th anmvexsaxy of the Dec. 9, 
1935, demonstrations by students 
in Beijing against Japanese aggres- 
sion. 

Since last year, Chinese students 
have pat up posters and staged sev- 
■eral demonstrations to protest poor 
conditions on campus, against 
what was termed a “second inva- 
sion” of China by Japanese cem- ' 
aimer goods. They have also pro- 
tested rhe mflwrirwi smA a trinptirm 

that have accompanied China’s 
economic reforms. 


_ It was the first time that a resolu- 
tion dealing with terrorism had 
beat passed by the Assembly. . 

The vote was 118-1, with Cuba 


was replaced by Justice Sandra 
Day O’Connor. 

He is sorrirod by his wife, Mary 
Ann, a daughter and two sons. ' 
Reacting to the death, Chief Jiis? 


voting against the measure. Israel ■ tice Warren E Burger said Satnr- 
and Burkina Faso abstained. Iran day, “For more than two decades* 


' A - Tj. By Hasan A. Hijazi 

.7 York Times Service 

1 BEIRUT — Jordan has h 
' ' « 5 imposing tight restrictions on 1 

fundamentalists, reflecting a 
'• - ^growing tendency an the part of 
u t. Arab governments to suppress rdi- 
■ ..'-gjous extremists. 

'A J A bill giving the government the 
.,.•-(■*^7 right to monitor sermons at 
-jl,, ^mosques throughout Jordan has 
• - ^T-, '.'been submitted to Padament by 
v .^ 'Frime Minis ter Zaid al-Rifai, ao- 
; to press reports fitomAm- 


: 1 

■' The authorities were reported 
^ .... earlier to have rounded up 250 
; '^members of the Moslem Brother- 
••c.. .vi rjjQQ^ ^ fundamentalist organize 

• % report^ sweep came after a 

IT. ‘"pledge by King Husmxu last month 

; Jordanian temtory would nev- 

. ). 'S r r"' cr a 8 s * n ** BSe< l M a base for fun- 
; ; r: - damratalist extremists operating 
Syria.- The long acknowi- 
that such activity had oo- 
- curred in the past, but said he had 
. V not known about it. 

.— c.r^; Hussein made the gesture to re- 
_move strain in Jordam’s relations 
. j^with Damascus and to dear die 
- — ; way for a recent visit to Syria by. 
Mr. RifaL 

- :: Now the Syrian pome winista, 

Abdul Raoul al-Ka&m, is due in 
.^.r. j. Amman soon, and prditical . ana- 
-■.. t lysts say the Jordanian measure is 
intended to reassure Syria of a de- 


termination to keep the fundamen- 
talists in check. 

Over several years, the Moslem 
Brotherhood had engaged in a vio- 
lent campaign a gains t the Syrian 
pre sid ent, Hafez al- Assad, and, 

early in I9S2, the Syrian Army 
broke the back of the organization 
in Syria by attacking it in the city of 
Hama, its stronghold. 

A presidential decree issued in 
Damascus early tins year offered 
clemency to Moslem Brotherhood 
activists who repented, and as 
many as 300 have accepted. Many 
had bees living in Jordan, where 
they had operated training camps 
now dosed. 

After the fighting at Hama, 
about 50 Syrian Moslem funda- 
mentalists took refuge in the port 
city cf Tripoli in northern Leba- 
non. Reports in the Beirut press 
said they went into hiding after 
Syrian troops were deployed thou 
in October. 

The arrival of about 1,000 Syrian 
sokhecs backed by tanks, as well as 
the re-estabHshmeni of positions 
for Lebanese leftist factions backed 
by Damascus, sharply cut funda- 
mentalist influence in Tripoli. 

In eastern Lebanon, according to 
a FreochJangnagp daily newspa- 
per/Le.Rfiueu, tension has been 

^he^Modem "ftmdam^^lists 
who are membas of Hezbollah, or 
Party of God, winch is finked to 
Iran. 


Reuters 

PARIS — President 
Mitterrand has personally 
speculation that Prime Minister 
Laurent Fabtris might be about to 
resign or be replaced. 

Mr. Mitterrand said in a televi- 
sion interview Saturday that their 
“harmony action and thought 
covered practically every ficLd." He 
asked: “Why do you want me to 
deprive mysdf of a good govern- 
ment and a good prime nrimster?” 

The statement apparently was 
intended to stop rumors that Mr. 


was among the 37 natinmc that did 
not vote. 

The 'Warsaw Pact countries, as 
well as Nicaragua and some Arab 
nations, including Syria, supported 
the resolution although they criti- 
cized it because it did not specifi- 
cally. «wdHrm “state terrorism.” 
That term has been used in UN 
debates to describe American sop- 
of the rebels in Nicaragua and 
”s raids into Arab territory. 

The. Resolution, which was 
“unequivocally con- 
criminal, all acts, metb- 
practices of terrorism 
wherever and by whomever com- 
mitted, including those wbich jeop- 
ardize friendly relations amftng 
states and their security.” 

It also calls on “aQ states to ful- 
fill tf»«T obligations imiiw interna- 
tional law to refrain from organiz- 
ing, instigating, assisting or 
participating in terrorist acts in 

iixes within the^^^^^’towaord 
such acta. 


Justice Stewart gave dedicated and 
distinguished service to our coun- 
try, fast on the Court of Appeals 
and then cm the Supreme Court 
“His death removes a splendid 
jurist from the bench,’* be said. 
“We mourn his loss.” 

Most experts believed that Jus- 
tice Stewart’s most important con-_ 
tribution to the Supreme Court lay 
not in the theories that he pro- 
pounded, but in building consensus 
behind the scenes. They also cited 
Me commitment to 
each case objectively, an 
in winch be took great 
Announcing his retirement m 
1 981, he said: “I thinJc it is the first 
duty of the justice to remove his 
own moral, philosophical, political 
and religious beliefs and not to 

fhmlc of himswlf gg cnrwp great phi- 
losopher lcbg and apply his own 
ideology." 



UPV1976 



Potter Stewart 

Justice Stewart, a moderate Re- 
publican appointed by President 
Dwight D. Eisenhower in 19SS, 
generally sided with conservatives 
when he first joined the court He 
dissented from many of the liberal 
ruling? under Chief Justice Earl 
Warren, especially those extending 
federal court power to increase sus- 
pects’ rights. 

He disagreed, for instance, with 
the court’s Miranda ruling, which 
required police to warn suspects of 
their right to remain silent to 
have a lawyer represent them. 

But as toe court drifted to the 
light under Chief Justice Burger, 


Justice Stewart was perceived more 
as a moderate or liberal, especially 
on ciril rights and social issues. He 
joined the court’s opinions striking 
down government aid to parochial 
schools and its 1973 ruling that 
legalized abortion- 
justice Stewart’s most famous 

S atkm reflected the court’s (fif- 
ties in dealing with laws on 
obscenity. He admitted in a 1964 
case that he might never succeed in 
defining “hard-core" pornography, 
and toot added, “But 2 know it 
when I see iL” 

Shy and somewhat patrician, he 
was bom in an established, wdl-io- 
do, Cincinnati family. His father, a 
Republican, served as mayor and 
later on toe Ohio Supreme Court. 

After attending a private East 
Coast preparatory school, Hotch- 
kiss, and Yale university. Justice 
Stewart r e tur ned to Cmannaii to 
practice law. He was a member of 
the city council and a vice mayor in 
the early 1950s. 

He was toe youngest federal 
judge in the country when Eisen- 
hower appointed him to the 6 to 
U.&. Circuit Court of Appeals in 
1954. Eisenhower gave Justice 
Stewart a recess appointment to the 
high court in October 1958 and 

f o rmaTV y nomina ted hrm inl p niiay u 

1959. 

Barr TSBstroni, 68 , Creator 
Of TV’s TKiMa, Fran & Offie* 
PALM SPRINGS. Calif. (AP) - 
Burr Tillstrom, 68 , who created the 
children's television show “Kukla, 
Fran & OUie," died Friday at his 
home. 

The program, which starred a 
bucktoothed dragon, a little bald 


down and a gracious hostess, de- 
lighted millions of f amities and was 
credited with building an audience 
for television when h was a new 

The show ran from 1947 to 1957 
and was followed by ran carnations 
as late as 1976. It brought Mr. TiQ- 
strom three Emmy and two Pea- 
body television awards. 

■ Other deaths: 

M*n>sret Strong de Larrain, 88 , a 
philanthropist and the only sur- 
viving granddaughter of John D. 
Rockefeller Sr, Monday in Ma- 
drid. 

AnteOo Ddharace, 71, identified 
by federal and local investiga- 
tors as toe No. 2 leader of the 
Gambinos. the largest of New 
York's five Mafia families, Dec. 
2 at a hospital that was not iden- 
tified. 

Phifip S. Bernstein, 84, a rabbi 
who helped about 200.000 Jews 
resettle after World War II, on 
Tuesday in Rochester, New 
York. 

Loris Fortum, 61, an Italian min- 
ister who defied the Vatican by 
ushering in Italy’s first divorce 
law and sponsoring legislation to 
make abortion legal, Thursday 
in Rome. 

Walter Plane, 109, the oldest mil- 
itary veteran in the United 
States, Thursday in Lebanon, 
Pennsylvania. 

Doug Scorer, 86 , a radio pioneer 
who wrote the Amazing But 
True newspaper column and 
helped toe early careers of many 
stars, Wednesday in Clearwater, 
Florida. 


Robert Graves, Poet and % Claudius’ Author, Dies 


with the president over the visit to 
Paris on Wednesday cf toe Polish 
leader, General Wqjciech Jaru- 
zdsid ^ 

Mr. Fabius voiced disapproval 
of the meeting and told toe Nation- 
al Assembly that he had not been 
consulted about toe trip. 


■ LLS.-Soviet Effort Reported 

A British newspaper said Sunday 
that the United States and the Sovi- 
et Union were dose to agreement 
on a joint campaign to combat ter- 
rorism, Renters reported from 
London. 

The Sunday Tunes said toe two 
governments were expected to ex- 
change letters pledging action 
against kidnapping and hjjackxng 
before Dec. 25. 


Russians Admit to AIDS Cases 


The Associated Press 

MOSCOW — The Soviet Union 
has acknowledged for the first time 
that cases of AIDS have appeared 
here, bat contended that the num- 
ber of victims is fewer than 10 . 

Thedisciostires,inaa article Sat- 
urday in too cultural newspaper So- 
vietriesya Knltnra, reversed official 
reports two months jigo that there 
are no Soviet AIDS cases and that 


acquired ™mtme deficiency syn- 
drome results from Pentagon-in- 
spired experiments. 

The article made dear for the 
first time to Russian readers that 
the disease mostly affects homosex- 
uals and drug users, two social 
groups hardly ever mentioned in 
public. Both homosexnaHty and 
drug nse are Segal in the Soviet 
Union. 



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(Continued from Page 1) 
rank Mm rniwng the finest practi- 
tioners of the En glish lang ua g e to. 
day. 

He stood apart from fashions 
and never quite secured a central 
position in toe pantheon of poets 
who emerged in the 1920s and 30s. 
But from the 1950s onward, an in- 
creating number of younger poets 
and younger readers saw in his 
work an important alternative to 
toe EEot and Andes tradition. 

Mr. Graves, who fractured his 
nose by tackling low in a rugby 
game, had a ragged, athletic look 
that lasted well into old age. More 
than six feet (1.83 meters) laD, he 
had deep-set gray eyes, a high fare- 
bead, white hair and a large, arrest- 
ing head. He nsnaQy was deeply 
tanned from toe Majorcan sun. 

Robert van Ranke Graves was 
born in London an July 24, 1895. 
EEs father was Allied Perceval 
Graves, an Irish poet and ballad 
writer. His mother, Amy von Ran- 
ke, was tire daughter of a German, 
professor of mediane and was di- 
rectly related, to Leopold von Ran- 
ke, the great German historian. 
When war broke out in Europe, 
joined toe 


tire young Mr. Grates joined 
Royal Welsh Fusihcrs and served 
as an office in the same regiment 
as Siegfried Sassoon, who inspired 
him to write poetry in earnest. Be- 
fore the war was over, he had pub- 
lished three volumes. 

Mr Graves was severely wound- Muju’gn n Rpn nhIi'eqTiH 
ed m 1916. He recovered, but the > . 

agonies he had witnessed as a pte- Vote to Be First in 08 


to England in 1927, he vowed never 
to take another job /or the rest of 
his life; 

Working 18 hours a day, be lock 
two months to write a biography of 
Ins friend T.E. Lawrence, “Law- 
rence and toe Arabs." The book 
was selling at the rate of 10,000 
copies a week by Christmas of 
1927. 

The biography brought him the 
financial success that his poems 
had lacked, for all tire critical ac- 
claim that they received. 

Mr. Graves and his wife had two 
daughters and two sons, one of 
whom would be killed in Burma in 
World War IL But the marriage 
was an unhappy »"** aided in 
1929. 

His second marriage, to Beryl 
Pritchard, daughter of Sir Harry 
Pritchard, produced three more 
sens and one daughter. 

In 1929 he took the advice ot 
Gertrude Stein and moved to Ma- 
jorca. the largest of tire Balearic 
islands, to find the right atmo- 
sphere for bis work. Except for the 
years of the Spanish Gvil War and 
Wodd War D, he Hved in the small, 
flowering hfllw'di* village of Deya 
until his rimth 

Before departing for bis Medi- 
terranean retreat. Ire wrote an amo- 
biography, “Goodbye to AH That," 
published in 1929. His account of 


bis experiences in tire Great War — 
some harrifyin& others comic — 
made an enormous impression on a 
reading pnhhc that was just begin- 
ning to come to terms with the. 
realities oS the war. 

Fifty-six years later, it has lost 
□one cf its impact and generally is 
regarded as a classic. 

“ 1 , Claudios," which appeared in 
1934 and won him the Hawthorn- 
den prize, made him a novelist of 
stature. The book and its sequel. 
“ Claudius the God,” which won 
the James Tart Blade Prize, were 
hailed as b rillian t reconstructions 
of Roman time* Mr. Graves had 
succeeded in breathing extraordi- 
nary life into an ancient cast of 
characters. 

A later novel, “Count Bdisari- 
us,” won the Fomina- Vie Heoreuse 
Prize in 1939. 

“King Jems," published in 1947, 


challenged widely accepted reli- 
gious dogma with its bold but eru- 
dite interpretation of the life of 
Jesus. The book asserted that Jesus 
had not died on the cross, but lived 
out a natural life as a Jewish lay- 
man. 

The following year, Mr. Graves 
distressed anthropologists and 
scholars of poetic myth with “The 
White Goddess,” in which he 
traced the colt of toe lunar mater- 
nal deny ia Europe. 

In 1964 he “translated” Shake- 
speare’s “Much Ado About Noth- 
ing" by replacing now obscure Eliz- 
abethan words and phrases with 
others that are easily understand- 
able today. 

**A remarkable thing about 
Shakespeare," he said at the tiny, 
“is that be is really very good in 
spite of aB the people who say he is 
very good.” 


toon and company leader in tire 
front lines scarred him for Hfe. 

The war, he said later, 
his entire outlook on the wodd.’ 
joined those ^ who felt that Ins gener- 
ation had been sold by generals and 
men of wealth. 

He attended Oxford after the 
war and married Nancy Nkhalson, 
the daughter of Sir Wiffiam Nichol- 
son. 

Mr. Graves received his bachelor 
of literature degree in 1926 and was 
appointed professor of English lit- 
erature at toe newly founded Egyp- 
tian University in Cairo. Returning 


The Asso c ia t ed Press 

BATTLE CREEK, Michigan ~ 
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the United States to begin the 1988 
presidential nomination process 
under a plan approved by the state 
Republican Party. 

Precinct delegates will be elected 
in Angnst 1986 to county and con- 
gressional district conventions, to 
be hdd in 1987. Those conventions 
will choose delegates to the stale 
parley in January 1988, which will 
produce delegates to toe national 
convention. 


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fll* 


HcralbSSj^ribunc 


MONDAY, DECEMBER 9, 1985 


Page 9 


u.s. 


Drives Investors to Cover 

l %CAKLqEWIKK 

| 2 " . fruentatioiTa} Hoatd Tribune 

| .*ar\ ARIS — Year-end doMnnns, amvinga fait *h»n 
^fljP usual, sapped the Eurobond market last week. Instrtn- 
■ tkmal investors abandoned the rt, traces 1 p r e p a ri n g to 

! 4*- - busy themselves preparing their endrof-year reports iath- 
& than trying to guess where the market is headed. 
i »> The universal view is that interest rate* arc.tihimaldy 
Jbwer. But that is not'Seeb m hm wmig thus there 

is ho compulsion tom&h into mating new cQtm m tmatts now. In. 
Addition, between sow and. the time rates do drop, there is a fear 
there could be an upturn. ■ 

; The current inversion of the interest-rate vidd curve is feeding 

< 1 . c ' 


November the yidd curve Eurobond Yields 
Has been flat —with identi- For W««k Endod Doc. 4 

cal rf^irgea m the COSt of * U.S* Ig tom, hTt'l Inst. 

one- to sbe-month Eurodoi- — 

■« i f . | . • v - 5S medium iflcL — 

&T8. But last week, the curve con* radium torn, 


h' perverted, putting the cost of 
one- week to two- month 


binds, 8 3/16 perc e nt, above 
tire charge on three- or six- 
month money, 8J4 percent 
Even though this inversion 
1 seen to be due to tempo- 
iaiy factors, it unnerves the 
market because it is an un- 
natural state of affairs. Some 
analysts link it to year-end 
bookkeeping maneuvers, 
some to toe bunching erf U.S. 


French Fr. short, term 

Storting medium term 

Yen medium term. Inn tost 
Yen tg term, inn Inst. — 

ECO short term 

ECU medium term 

ECU long farm - 

EUA long term . 

LuxF med term Intt Inst'. 
LuxF medium fenn 


1030 % 
10*3 % 
1076 % 
1054 % 
1079 % 
1076 % 
647% 
672 % 
075 % 
971 % . 

MO % 

8*4 % 
9*7 %' 
975 % 


jiwAa because it is an un- ft' *» Luxembourg stack ex- 

natural state of affairs. Some ctxrVB - 
taalsm link it to year-end Market Turnover 
bookkeeping maneuvers, fa w «ek F mH Dec. 6 
some to me bunching erf U.S. immon* <* uX boiiora) f || || || ||N[ 

Treasury financings. tww do**- EeMvamt 

£ Whatever the reason and c*dei lamiouuauo &820J0 
gowever temporary it may Euroclw r 3a*i7703i*9iJ0 7/B5JQ 
be. the inversion caused serious discomfort in the floating rate 
dote market — particularly on the mkmafehed floaters. 

Ihe height of popularity for iMb paper occurred when the ano- 
ipanth Eurodollar rate was more tom 2 percentage points lower 
than the six-month rate By tying the interest payment to die sx- 
: month rate-and adjusting it monthly, nris-match FRNs allowed 
banks buying this paper to pocket as profit the d iff erence 
between their own borrowing costs and the ttvmw from the 
notos. 

" This haymow reversed. As foreseen in such circumstances, the 
coupons fix for six months at the lower rate — permitting holders 
to borrow six-month funds and bring their b or r o w in g costs into 
fine with the income from the paper. 

-> But heading that paper now is not very profitable; Die margins 
bver the interbank rate are *i»iwnw tiiim on normal FRNs. In 
addition, the banks are now holding paper that yields less than if 
the money was invested in a one-month instrument. 

T HIS ALSO affected the fixed-coupon sector as the increas- 
ing short-term rates offered an attractive substitute for 
bonds yielding scarcely more. Investors dearly p r eferred 
to p*Ar tfaMf money in the deposit market «t «1 retain *1*™* 
mobility. 

v The best example of tins was Gticoip’s $150-m3Hon of three- 
year, 9%-percent notes priced at 101% to yield 8.88 percent. Why 
lock into a three-year commitment when a one-month deposit 
fetches an annual equivalent of 8.19 percent? 

I. The market also registered its fatignewith bonds with wedded 
options — war r an ts that can be exerrised only by surrendering 
callable paper to bny a noncallable issue. Monsanto issued S100 
ntiffinn ol five-year, 9%-perccnl callable bonds at-lOQH and 

tn hny aoriodlafale bonds. •& -m >• • 


By John' Holnsha . 

. . New York Tbuet Service . . 

DETROIT — When Detroit 
derides to design a more expen- 
sive verson of a popular cat, it 
usually means that the newmodd 
wiB have a few bits of additional 
dxronie and a pfnsher * in te ri«w 
Pontiac's plan For the new Hero 
OT,alrigWkedcttpringofthe 
successful men> two-scat- sports 
-car, was dramatically different, 
however. 

• - ■ Thanks to the Ffcftfr .unique 
Gaustnxrion a plastic don of 
outer body panels attached to an 
independent sted “space frame” 

• — the General Motors Cop. di- 
vision was able to retool quickly 
and at .relatively low cost to 
change the styling from a 
choppod-off “notefabadk’’ look to 
a more streamlined “fasthadc.” 

GM officials and many others 
in the -industry axe ~ con- 
vinced that dearly differentiated 
styling approaches arc gong to 
be critical to the future soccesaaf 
specialty can Kke the Fkro, and 
family cars as wdL And, they say, 
plastic is goengto be critical to 
that effort. 

Detroit was first attracted to 
plastic because of its lightness, 
which made it akey ingredient-in 
the push to improve fuel ccono- 
my.But now that the antomakera 
are tnnring their .attention back 
to st y li n g plastic seems headed 
for a major design role. And uhi- 
matdy, the say, die 

high-stress, h fah -st rength quali- 
ties of composite plastics — ad- 


%#• rf-: 


r 1 '** 1 *^ K II 



fer; * 



Fed Votes Curbs 
In Use of Debt 
For Takeovers 




A Pontiac Fiero’s plastic dan is attached to the frame at GM i 


vanccd chemical -compounds 
available in a dizzying number of 
variations — will be put to nse 
structurally- 

One approach under close 
study is taking the hundreds of 
pieces of metal that are typically 
welded together to farm a car's 
sheS — the internal structure and 
outer body panels — and reduc- 
ing them to a few large, complex 
shapes from reinforced 


*Tn the 1990s, we are going to 
see the use of structural compos- 


ites in automobiles,” said Joseph 
Reed, an executive at General 
Electric Co’s AppUcadoas De- 
velopment Centor in Southfield, 
Mi c h igan. “A redaction in the 
number of parts on a ear is a real 
goal of the American auto indus- 
try." 

For now, some large compa- 
nies, mdndmg GE and Du Pent 
Co, are rapidly expanding their 
engineering facOities in the De- 
troit area to take advantage of 
what they see as the coming boom 
in plastic-skinned v ehicles Ow- 


1>» Nrw ftrt Tmm 

! plant in Pontiac, Michigan. 

ens-Cocning Hbcr^as Corp. re- 
cently predicted that the auto in- 
dustry’s use of fiberglass 
composites, just one kind of plas- 
tic , win increase to 450 million 
pounds (203.8 million kilograms) 
a year by 1990, from 275 milboa 
pounds tins year. 

GM appears to be well in fee 
lead, ahead of Ford Motor Co. 
and Chrysler Corp., in the use of 
the plastic body panels. Die re- 
placements for the current Chev- 

(Contmoed on Page 10, CoL 4) 


U.S. Demands EC Telecommunications Opening 


By Axel Krause 

International Herald TribaM 

STUTTGART — Some mem- 
ben of die European Community 
may face restrictions on their ex- 
ports to the United States if they do 
not accelerate the opening of their 
telecommunications markets, 
Clayton K. Yebtter, the U.& bade 
representative, has warned. 

Mr. Yeutter also said in an inter- 
view Saturday that the United 
States wanted trfwn nrnmn lwninnt 
ptnrfH hf^h gn the « gw"i» of Gen- 
eral Agreement' on Thrills and 
Trade tallm that have been pro- 
posed foe early 1987. About 90 
countries would take part in die 
talks under GATT, toe Geneva- 
based trade monitoring agency. 


warrants, a 




' <■; »i.'n t.. i. 


the penod after' the exeriahe can be effected ~wxA cash.- In the 
. Monsanto issue, that is after three years. Bui then, the xemamiiig 
life of the bond the warrant can buy is only two yearn And that is 
deemed as too short to have any real impact an the value of the 
• warrant. 

« The same was true for the five-year warrants offered by. MeraE 
Lynch to buy, starting in 1989, 10-pexcem bonds maturing in 
1990. Ditto for the put warrants it offered on the U.SL Treasury's 
934-perceat bonds due 1990. 

X Dart & Kraft did better, offering $100 nriUkax of 10-year, 10%- 
percent bonds at 101%. In tins case, holders of warrants have a 
. five-year period to exercise for cadi — but even here die issue 
: languished for lack of support 

The only fixed dollar issue to buck the trend was IntexAmeri- 
can Development Bank’s $200 mBHon of 10-year noncallable 
paper issued at par bearing a coupon of 934 percent —a reflection 
of the market’s cur re n t p re f ere n ce for noncallable paper from 
sovereign or supranational bo rr ower s. 

*: But whatever real interest therewas to makecoamtiiments now 
, was dearly reserved for equity-linked iss u es. Samsung Electron- 
ics, the first South Korean company to make a foreign equity 
offering, initially fared wefl trading at par to 202. But the closure 
^ (Continued on Page 10, CoL 4) 

I Last Week’s Markets 

K Afl figure* era as of doss of tracing Friday 


Mr. Yeutter, vdu> was beginning 
a West European trip that included 
stops in Geneva, Rome^ Paris and 
Brussels, said he would formally 
appeal far an opening of West Eo- 
ropean tdecommumcations mar- 
kets during his tour. 

In recent years, American Tele- 
phone A Telegraph Co-, Interna- 
tional Tdephone A Telegraph 

Carp, and Intematirmst] BoSWCSS 

Machma Coop, have estabBrited 

cnKcf^ntiiil rrnAm mWq )»rn Pn . 

rope, and AT&T and IBM have 
made affiances with other compa- 
nies. 

Bnl many other US. « vnpani^i 
— Mr. Yentter called them “the 
ouZsidera” — — are from tire 

West European market and are 


now pressing the UJL administra- 
tion for i»rfp to enter. 

“As port of the process to im- 
prove market access for our indus- 
tries,’' Mr. Yeutter said, “we must 
get started on opening tcfecom- 
mnnications markets now, and 
Germany ritould set the e xample. " 
He was speaking after a meeting 
Saturday m Stuttgart with Martin 
Bangenunm, the West German eco- 
nomics minister. 

“The philosophies of Mr. Bange- 
mann and myseff about free and 
fair trade are neariy identical,’’ Mr. 
Yentter said. “But they do not ap- 
ply to everyone else in Western 
Europe.” 

. Mr. Yentter referred to repeated 
demands by^ Washington that Bonn 


accelerate and expand plans to lib- 
eralize restrictions against U.S. 
companies maintained by the Bun- 
desposi, the West German telecom- 
munications »tm 1 postal agency. 

Meetings last Tuesday and 
Wednesday between West German 
and UA trade affinals .timgA at 
opening the West German telecom- 
munications market “solved virnir 
ally nothing,'’ a UJ5. trade nffipial 
said in Bonn. “Mr. jfamgwrmnw a 
liberal an trade, is by no means the 
only twfinwitiai voice in the Ger- 
man government.’’ 

Mr. Yentter warned that the ad- 
ministration was considering retali- 
ation against West Germany for 

(Continued on Page 10, CoL I) 


By Robert D. Hershcy Jr. 

New Yprk Times Service 

WASHINGTON — A divided 
Federal Reserve Board, which has 
expressed fears that the corporate 
financial world has become top- 
heavy with debt, has proposed to 
curb a debt-financing device that 
has been widely used in the latest 
wave of hostile corporate take- 
overs. 

Tbc board, by a vote of 3 to 2, 
proposed Friday that in a typical 

hostile takeover bid, the use cf debt 
be limited to half of the purchase 
price of the target company. 

The effect of such a requirement, 
which the board wants to put into 
effect on Jan. 1, would be to curtail 
buyouts in which the investor or 
group that seeks to take control of a 
company puts up almost no cash. 

What the board proposed was to 
apply its 50- percent stock market 
margin requirement to the issuance 
of debt in the typical hostile take- 
over hid. In other words, the buyer 
would have to put up at least half 
the purchase price in cash or other 
assets. 

After a comment period of about 
two weeks, the board hopes to 
adopt the regulation as applicable 
to agreements readied after Dec. 
31. 

AD of the implications of the 
proposal were not immediately 
dear. But there was general agree- 
ment that the main impact would 
be on unfriendly takeovers by com- 
panies seeking to swallow compa- 
nies considerably bigger than 
themselves. 

A Wall Street banker who has 
specialized in hostile takeover bids 
and a lawyer who handles such 
matters both forecast privately that 
the Federal Reserve’s proposal 
would set off a rush of activity for 
Ihe rest of December as acquirers 
scrambled to beat the proposed 
Jan. 1 effective date. 

Although the board said that it 
was not motivated specifically by 
its fears that the financial system 
had become overly dependent on 
credit, its general counsel, Michael 
Brad field, commented Friday eve- 
ning that “margin requirements are 
supposed to prevent the leveraging 
of the economy." 


In its proposal, the Fed sought to 
limit the use in corporate acquisi- 
tions of so-called “shell " corpora- 
tions created specifically to serve as 
the vehicles for takeovers. 

Its plan sets up a presumption, 
which would be rebuttable on a 
case-by-case basis, that when a 
shell corporation issues debt secu- 
rities to buy the stock of a target 
company, the debt is indirectly se- 
cured by the stock to be acquired 
and is therefore subject io the Fed's 
margin requirements. 

One prominent casualty of the 
new rule would probably be “entre- 
preneurial” takeover operators 
who rely heavily on credit to pursue 
their targets, which are often much 
bigger. One such prominent figure 
is T. Boone Pickens, the Texas oil 
man who on several occasions has 
employed the shell-corporation de- 
vice. 


Asbestos Accord 
SetforMomSIe 

New York Tunes Semce 

NEW YORK — A represen- 
tative of one of the key groups 
with asbestos-related claims 
against MarrviUe Corp. said be 
had reached “complete agree- 
ment" on a plan that would 
allow ManvQle to emerge from 
bankruptcy proceedings. 

Leon Silver man, a lawyer 

who represents any future 
plaintiffs with health-related 
claims, announced the accord 
Friday at a UK Bankruptcy 
Court hearing in New York. He 
gave no details on the plan, 
which must be approved by 
other claimants and by the 
courL 

But it was seen by partici- 
pants in the case as a step to- 
ward allowing Mauvflle to be- 
gin operating again without 
protection and to start paying 
persons who were injured by 
exposure to asbestos. Manville 
filed for protection in 1982, af- 
ter more than 16,500 suits had 
been filed asking for damages 
of more than S12 billion. 




pproocn 
Threatens Lower Prices 


• Stock Indexes 

'(felted States 

LastWk. PrwJMK. 
.DJ Indue — 1477.10 1471*0 

CdUtlL 145*7 14403 

CU Trans.— 403*9 40031 

S'SPUO 19673 195*3 

S*P 500 20248 30218 

PiySECp— 116SB 11655 

■ Soiree: MertBLyaA Par*. 


Money Rates . 

United States uwnk. pm*jw. 


F7SE100— 1399*0 
■r?x mug 


1439 JO —276% 
1141 JO —121 % 


- -tWig Seng. 1721*9 171495 + 0 * 8 % 

I35E 

’ 4 lkkelDJ—. 12793*0 127030 + 021 % 

. West Gammy 

tommerzbk 172400 1725*0 4-0*2% 

Atera.'jbmBCMiautMtoi 


Discount rate 

F«d*rai funds rate— . 
Prime rote 
Japan 

Discount 

Call moony 

60 -day Interbank 


OvemtgW 4*5 4*0 

l4iK*ita interbank- 4.90 4*5 

Britain 

Bank base rate life life 

Co 1 1 money — HA. 11% 

3-monto toterbar*— HA. ni/16 

Dote cast iml. rmML raw 

Bk Engl Index _ -127.10 13630 4-0*3% 

CoH 

London pm fix. $ 32230 32530 —053% 


Currency Rates 


: Q$L ' ]Zr ' 


'|^! r ->cm8 Rated 



t 

c 

DAL 

FJ*. 

ILL. 

Okta. 

1 ILF.' 

IF. 

Ytal - 

■BUrtum 

26*15 

tws 

112*4* 

86508- 

0.140* 


SJSJ* 

awn* 

13934V 

nmwa) 

5I3BB 

7551 

203773 

LOtS 

UR* 

uto 

— — 

34450 

KJM 

"«a«w 1 

1524 

1721 


3238* 

L44SX 

n*i* 

*913* 

13005* 

‘ 1*0* 

tauten lb) 

U7H 

__ 

17298 

iutn 

2*45*8 

«« 

7581 

1111 

300*13 

Urn 

1,721 JO 

2**1.H 

18228 

22361 

— . 

606*8 

SLOT 

*w*o 

8*73 

nr York (O 

__ 

*4748 * 

2*281 

7.7W8 

13226B 

234 

51 J6 

U86 

20325 

arts 

7J0 

11J7K 

MSB 

— . 

LOlX 

2312 

U99* 

14604 

- 33H3* 

**tyo 

rnnut 

38162 

B0J8 

JMJ 

11*»* 

71*3 

3%»* 

K83 

• 

Jrtdi 

Z10B 

11074 

03385* 

27J1* 

llffl* 

7466* 

4»»7 * 

— 

13387* 

ECU 

0673 

own 

2JBS9 

&72s 

1*0033 

2002 

44390 

i3ja 

177*67 

IDR 

1J9U1 

47365* 

2.75W* 

U9sn 

NA 

33911 

S63» ’ 

22ns 

man 


tastoss to Loude/t atdZtrtcn extras toother European confers. New Yeek rates at 4 pm 
ti ComnwnU franc fbl tomutts needed to oukom pound (ej Amounts nwdte te buy one 
^ tar ft UrntsoflOOtx} UaHsantBOM £Mteo4/M»6Ul.iiWouoftrf;6£A;»WfSWl«B0te 
OTa bey eae Mama: fUAtJU 

W it hollar Vriaet 

a-rcoev Per u*J Correncv Mr OSS Conwr pot iui omaev Mr 11*5 

teHLOHirol 0*0 Flo. markka SA55 Mtx-peso 47IUB SnfetnM 07M 

WMLS i*74S Grmic dree. 149J5 Non*. laws 7*09 Spaa-Maria 1SW0 

Wr.seML 17*8 Hong KangS 7*055 PNLpoM 18*0 SowLKnina 7*65 

■fe. ex.fr. 51*0 fpdteflrepw 11063 Port. escudo ISS.I5 Totems 39X7 

tan era. f 45400 Infem** 1.12300 Saadi rival 3*505 TWHM 3UB 

nodHnS U95V Iridic 0*157 Stag .s 2.1175 TrtHRa S61J0 

*MMraon 32015 Hratafjink. S. Mr. read 2J3B6 UACdtriren 3*725 

aumm 9.144 Kamnidtaar 03902 a.Kor.«M 889*0 Ve*ez-baB*. 1535 
typt.pomta 1358 Maknr.riap. 3425 

teOnv: UOOSlrWiC 

urees: Banoum au Basmkm (Brwsaeis): Bonos £tama«W» Hoomn (MHoa)i Sarwn No- 

I twta eta Ports {Perm: Barit of Tokyo (Tokyo},- IMF (SOB); BAll tdtncr. rival tOrhamis 
vtxrir tnjbb>. Other oeto ken Routers onaAP. 


ttoOano (Milan); Banoue Ho- 
; BAll (Mia. rival tOrharaii 


. By Bob. Hagerty 

Inunadonal Berad Triame 

GENEVA.-— The Orgamzaticm 
of Fetrdeam. Exporting Countries 
agreed late Sunday on a daft in 
strategy that threatens to depress 
prices farther. 

OPEC appointed a six-member 
committee to work out details, but 
the general idea idea is to mice oil 
cheaply enough to that OPEC* 13 
members can sell at least 16 nriffioa 
bands a day on average, that 
mwm« formaDv a b an don ma rigid 
official prices, which OPEC has 
bem nn^de to enforce in a glutted 
market, despite repeated produo- 

Several nunisters and d ri ^ ate s 
acknoMe^ed the KkeKhood ol a 

. b^'mperi^ of weak demand. 
But they said members, alread y 

- fackaTtite political will to reduce 
output ftntner. 

“We are not wilfing to lose mar- 
ket share to non-OPEC producers 
anymOTe,” a senior delegate said. 

Algeria’s minister, Bdkaccm 
Nafcri, earlier Sunday resisted tbc 
. new strategy in what one delegate 
described as an angry exchange 
with Sheikh Ahmed ZhK Yamani, 
the $andi minis ter. Mr. NStd ar- 
gued that OPECs rotes forbade a 
policy of charging free-maxket 
prices, but S»hraldi Yamani dis- 
missed that view as “theoretical,’’ 
given that most OPEC erode has 
been sold below market prices in 
recent years. 

Ministers said that there would 
be no final decision on details of 
the new strategy at this m e e t in g, 
expected to aid Mooxky. They said 
OPEC is likely to meet again in 
February or March. 

Die most important choice, ob- 
servers boo said, is bow mu ch 
OPEC should aim to produce. The 
group’s share of the market in the 
non-Counmnrist countries has slid 
to about 35 percent from 60 per- 
cantm 1979- 

At present, OPEC is producing, 
an estimated 173 nnffion to 183 
million bands a day, taking advan- 
tage of a seasonal rise m demand to 
enteeditesdf'hnposedceffingol 16 
imHi tm. 

. Venezuela has argued that 
OPEC should try to cat back to 
.about 16 million. Others have 
called that impossible; several 
members producing above their 
quotas— such as Iraq, Ni g eria and 
Ecuador — have openly said they 
do norinteod to cut back. 

“Nigeria has made enough sacri- 
fice to promote the ideals -of 
OPEC,” Tam David-West, the Ni- 
gerian minister, raid in a pugna- 
cious press release. Saadi Arabia, 
which used to take responsibility 
for thetadk of the output cuts, told 


other members it would no longer 
give up a single barrel of its quota 
of 435 mflHou, delegates said. 

Some delegates argued that 
OPEC ihonld produce IB million 
or even more. “For the first time I 
.see a mood of Bring very aggres- 
five," a delegate said. “People are 
saying, ‘OJL, let’s show them a 
lesson,’ " a reference to producers 
outside OPEC, such as Britain and 
Norway, whose North Sea output 
ha s rise n in recent years. * 

OPEC ranmb e ra would like to 
scare Britain and Norway into re- 

p^'nd^^w^headlined^Da- 
vid-West Squares Up far North 
Sea” and promised to “meet the 
threat posed to the hfigerian erode 
by the North Sea oil bared fay bar- 
rel and cent by cent.” 

But most delegates seemed hesi- 
tant to raise output much higher for 
fey of setting off an uncontrollable 
price drop. 

If oil producers continue to flood 

ftte rrmrlcpt <MH» VwTwttTn Saul, 

prices wiE “oame down drastically” 
from the current range of about 525 
to S30 a b a nd far most grades of 
erode. 

. Renewing previous warnings, he 
added: Tt will be veay hectic. One 
day it will be briow S20, mu day 
you wffl find it S23, 524. If * Kkc 
any commodity in the market 
“I dunk it is very frightening — 
for the consumers,* he said. 


Jaguar fe Fined 
$6 Million in U.S. 

Compiled ty (hr Sttf From Dbpaxke* 
WASHINGTON — The 

I oar mffian for im- 

porting 28^18 care in 1983 and 
1984 that fated to meet federal 
fod economy standards. 

The National Highway Traf- 
fic Safety Administration said 
Friday that it was the first pen- 
alty imposed under a 1975 law 
subjecting a manufacturer to a 
fmf. of S3 for every tenth of a 
mile per gallon a car falls briow 
the fuel economy standard. 

■ That number is multiplied by 
tile somber of cars involved. 
The imports in question had av- 
erage consumption of 19.2 
miles per g?Hoa in 1983, when 
the standard was 26 mpg, and 
19.4 mpg in 1984, when the 
standard was 27. 

Jagnar said in London that it 
had made provision to pay the 
fine, payabtein 15 days. “If you 
want to sell luxury cars in the 
UnitedStates,timtltisissoine- 
thing youjnst have to accept” a 
spokesman said. (Reuters, AP) 



HUNGARIAN 
INTERNATIONAL 
BANK LIMITED 

LONDON 

The Board is pleased to announce for the year ended 30th September 1985, 
a pre-tax profit of £6,185,457. Extracts from the consolidated balance sheet 
are set out below. 


Issued Fully Paid Capital 
Reserves 

Subordinated Unsecured Loan Stock 1991 

Primary Capital 
Deferred Taxation 

Total Capital Resources 

Balance Sheet Total 


30th September 1985 

£10,000,000 

7,804,365 

2 , 000,000 

£19,804,365 

7,623,035 

£27,427,400 

£210,893,197 


The Bank continues to maintain a high level of liquidity and low gearing and 
the Directors are optimistic that 1986 will be another successful year. 

At the Annual General Meeting of the Bank on 3rd December 1985, 
the National Bank of Hungary, recognising the increasing demand 
for the services of the HUNGARIAN INTERNATIONAL BANK 
LIMITED and its wholly owned subsidiary HEBTRADE LIMITED, 
agreed to take up on the 14th January 1986 US$15,000,000 Primary 
Capital Undated Loan Stock. This stock will form part of the Bank’s 
Primary Capital (as defined by the Bank of England) and will bring the 
Total Capital Resources at current rates of exchange to approximately 
£38,000,000. 

The 1985 Accounts will be published shortly. Please contact the Company Secretary for a copy. 
Telephone; 01*606 5371. Address; Princes House, 95 Gresham Street. London EC2V 7LU. 


-- • 










Page 10 


INTERNATIONAL HKRAllV TRIBUNE, MONDAY, DECEMBER 9, 1985 


New Eurobond Issues 


Issuer 

Amount 

(millions) 

Mat. 

Coup. 

% 

Price 

. Price 

" end Terms 

■uAaL 

worn 

HOATNGRATE NOTES 

ttaiex 

$230 

1992 

V* 

100 

99-81 Ov*r 6montti Ubor. Calafaia to par an awry mtorwt 
payment date. Snfcjng fond lo tot in 1969. Fats 020%. 
DeuuoarUions $250,000 

Angfio Building 

Soaety 

£100 

1997 

Vs 

100.05 

99J90 Ow?fflnrthlAnr.CrfoMotopwto19»arriracfttaKfcto 
to per in 1993 and 1995. Fees 0.19% 

Danish France 
Institute for Industry 
and Crafts 

DM 100 

1991 

1A 

100 

99 JO Over ^nmondi Libor. Mawowm coupon 7VK. Noncodabla. 
Fees (L40% 

HXED-COUPON 

Gtiaorp 

$150 

1989 

9K 

101 1& 

9838 NonooOablo. 

Dcrt & Kraft Fnondd 

$100 

1996 

10V4 

10m 

99 JO Colabio to par hi 1990. Aho 100.000 warranty priced to 
$17J0oogh, OMrosable inlo cw idanfcd, noncdliAia bond. 
Latter bond can bo bough* wth warrant* pha heal bond 
during the tint 5 year*, than wMi wuuanh aid cadi 
Wcrrotos ondod Iho wook to $17^0. 

General Motors 

' Acceptance Corp. 

$200 

1993 

9% 

100 

98X0 Nonooflable. 

Irrtar-Amerrcan 
Development Bank 

$200 

1995 

9% 

100 

98.00 Nonctotatto 

Monsanto 

$100 

1991 

9% 

TOOK 

98.25 GJabfe to par m 1989. AtolOQ^XX) womans, priced to $11 
each, ootTMObto into ai idanHeol. nonooltAb bond. Utter 
bondoonbo bought with hu iukIs plu host bond during the 
find 3 years, then -widi warrants and cadi Wunafe ended 
the wook to $10. 

Textron 

$100 

1998 

1034 

99V4 

97X10 Cofldde to 101H in 1994. 

European Investment 
Bank 

£75 

1996 

m 

9814 

9620 Nanocdabie. Purchaso fund to start in 1986. £50 mifion 
inued now and £25 ndfion rourvad for tap. 

Sainsbury [J.] 

£100 

1993 

10% 

100 

9820 Gdkfala to 101H in 1992. £60 mSon tauod new aid £40 
mflion rmorvod for a one-year top. 

CPC Int'l 

DM200 

2001 

634 

100 

97.13 NoncoEtoto. 

Inter -American 
Development Bank 

DM150 

1995 

7J4 

9734 

— — Noneaflafala priwJs pfaociiwrf« 

World Bank 

DM1,000 

2015 

zero 

13 

1150 YUd 7JM%. NonccBabie. FVocsadi 130 mXon mala. 

Brown Shipley 
finance 

ecu 30 

1994 

9* 

100 

98.00 Calafaia to 100H in 1992. 

ParbeJ finance 

ECU 50 

1989 

834 

101 

9975 NonaoflaUe. 

Chrysler financial 

0*1$ 75 

1993 

11 

100% 

97 JO Nonooflable. 

Ndrd LB finance 

aus$50 

1991 

14 

100 

98.00 NoncalaUo. 

Unilever Becumig 

a«$75 

1989 

14V4 

100 

9850 Nonco Sable. 

West LB finance 

au$5Q 

1991 

14 

100 

9800 Nonadofale. 

" Paribas Luxembourg 

mz$40 

1989 

18 

10034 

9950 NoncoBafala. 

Montreal 

Y 10.000 

1995 

6K 

10134 

9950 NanctoUil*. 

,‘OIAG 

Y 22,000 

1995 

m 

101% 

9950 NonooBabix Redeemable to nrtourity to 18250 yon par 
dafla for a ttoto to $1205 mMan. 

/.EQUIY-UNKED 

Ajinomoto 

$120 

1990 

534 

100 

99.00 Nowcolublo.Eodi$5J00 note wtoi ana warrant anordteblo 
into company's diarm to 1,133 yon par dnra aid to 20L95 
yon par dolor. Inuouod from $90 niSon 

Samsung Electronics 

$20 

2001 

5 

100 

IOOJOO Redeemable to 117 n 199a ComtoUt staling 1987 to 
1/52 won minimum par shoo and 0*889/0^ wan par dolor. 

Asko finance 

DM150 

1993 

3 

100 

106.00 NaiaJafalx Each S^IOOmarfc band with 2 werramonrds- 
abb into aanpaiy ■ sham to 1,140 mafa each. 

Credit Suisse finance 

DM150 

1995 

234 

100 

10200 CdUdo to pa- m 1991 Aho 150,000 4-yea warrants aid 
150,000 5-yrxr waratox al mordwbio otto 9 DaUiLiwtol 
ltd's booor poliaptoian uatifiuiai at 330 Swta francs 
each. 

DaikoKanko 

DM120 

1991 

234 

100 

99.00 Nonaaflabta Gawarlihia to2372 yon par diara and to8IJ25 

yon par mark. 

Maruzen Showa 

Urryu 

DM25 

1990 

open 

open 

101.00 Coupon mtoctoed to 3X. Noncdmo. WWi waiw'ta onor- 

chable into dnm at an esqaetod 2MW premium- Taras to 

bo ml Doc. 9. 

Volkswagen Int’l 
finance 

DM250 

1996 

3 

100 

108.00 Noncalabh. With warrants exercisable into compai/s 
shares at 407 marks oadv 

Bed Group 

AU$75 

1995 

open 

100% 

— Coupon inc&xstad to 10-1 1%. Noncolable. ConvarAle at an 
expactod TB-30% premuan. Toms to be sto Doc. 10L 

WARRANTS 

Merrill Lynch 

0.125 

1990 

— 

$14 

— Ctol woronls tecarcnoble to pa offer Doc 1988 info Menfl 
Lynch's 10% bands duo 1990. 

MerriB Lynch 

0.125 

1989 

— 

$17 

— Pot warrents eioorgisqblo to par afar Dec. 1988 into the US- 
Troamry’s 9N% bands due 199a 

Baker Plan: An Outline ofa World Ik 


Hig h liquidity Brings New Issues of Euro Paper 

St 1- to 365*fay Emo commodal againstwMAit can offer coamer- (^adv^ar&nar 


By Carl Gewirtz Stanley and Lehman Brothers to «m»nv. Bride* Ofl is seeking a ^paytodiawa^to thefadfty, 

IiOenutionttl Herald Tribme 

PARIS — -The international -of 1- to 365-day Enro commercial against which it can <>Baaamec- ^^^-^‘SJwthTLOTdon 

ssesaRsnss EsauAS gs «3SS 

wrwiAn Mua xm sJS^SJR£St ^£»£=Sf7£ 

™$XSX £2 gSSS S&sasps 

Banco diN^oeBamdatrfatH g^T nf „ m-rnmm marem of6% Co, is nosing ,£600 rnfflion m the 


Given the ahwndmit liquid] 

rf^»**ESaS sj-KssESEHis 

jotinow ““e”™.!*™”- 7- to 365-day papa, dcnomnuloi ^ or 15 basis credit priced a 35 basis pomtsom 

T!Lu ri». md oBar s.^gc peancigre mynnrts p^o^ti/SSndian bank bill Libor for the first rime yffis 

were annolS^^ci^ or ^ , ^ wcm^alae, • StTBrnb proofing Itttee of sbghay_moB *"■' *»° 


stepped-up pace of Eurocomnier- 
cial paper programs, die nan-un- 
derwritten (acuities that banks at- 


State Bank of New South Wales 
has named four dealers headed by 
Salomon Brother* to market pp to 
$500 million in. die form of certifi- 
cates of deposit issued by the 
bank’s London branch (cue-, two-, 
three-, six- or nine-month CDs) or 
promissory notes from any other 
branch far periods from 14 to 270 
days. 

Paccar Financial Carp., the fi- 
nancing wmi of tfrfr U-S- truck mak- 
er Paccar Ttv t h^c Morgan 


First Austrian Bank (Die Erste 
Ostenekfaisdre Spar-Casse-Bank) 
named MaiiH Lynch as sole ar- 
ranger ofa SHXknflfion Euro CD 
program, the first from an Austrian 
commercial bank. Merrill Lynch 

and fjtihanV hav e fllsn hegn lurmad 

to place up to $200 nriBkm of 7- to 
365-day paper for Smpbank of 
Finland. 

Underwritten fariKlies woe an- 
nounced fer Bridge Oil of Australia 
and MEPC, the British property 


for the final two 

credit wfll recave an annual fee of yeas. The rest is bemg toanoM 


Budget News 
Brings Late • 
Price Gains 

By H .J. Maidenbcrg 

Sew York Turn* Service 
NEW YORK — Although inS- 
as and investors in ftetHBOome 
securities ware mostly on the side- 
lines after hmch Friday, there was 
sufficient pre-woekead short-cov, 
ding throughout the day to keqj 
prices firm. : 

And when leaders of the Senate 
and House ap proved the 


27% bass points. 

MEPC is seeking a seven-year 
facility of £100 (SI. 47 sril- 

BonX which will be used to prepay 
two existing credits of £30 nnlhon 
and $35 nriffion. At least £75 mfl- 


througb the sale of £360 million of 
convertible preferred shares and 
£840 nrffmi through the sale of 
common stock. 

British finance institutions will 
be paid a heftier-than-nonnal 3- 


Hoaof the new fac^ty is classed as percent commission to market £500 
available, on which underwriters million of the stock if the bid is 
will be paid an animal fee of 25 successful or a trim % percent if the 
basis points. The fee on the reserve bid f aiU Tbc underwriting fee on 
is 12% basis paints. the remaining shares is a conven- 

TTw Tnarjrmtrn rate the company tional 1% percent. 


Plastics Play a Growing Role in U.S. Auto Plants 


(Cautioned tram Page 9) 
rolet Camaro and Pontiac Firebird 
models, dne out in 1989, and the 
new front-whcel-drive Chevrolet 
minivan, winch win probably be a 
1990 modd, will have plastic skins, 
according to industry sources. 

Clastic body panels are nothing 
new. The Chevrolet Corvette has 
had a fiberglass body since it was 
introduced in 1953. 

Besides helping with fud econo- 
my, plastic panels are not subject to 
small dents as is metal and do not 
corrode, an advantage in northern 


states with snowy winter weather. 
But until recently, they took much 
longer to make than sted pands, so 
they were restricted to low-volume, 
high-priced vehicles such as the 
Corvette. 

Interest in the plastic panels 
grew, however, as the auto industry 
began to concentrate again on styl- 
ing after years of focusing on fad 
efficiency and pollution problems. 

Although sted body panda are 
Less expensive in longs production 
runs, promoters of plastic point out 
that those runs are getting shortc 


as buyers Hwnand more variety. 

“The market is becoming more 
and more fragmented," said David 
Cole, director of the University of 
Michigan’s Automotive Study Cen- 
ter. “Instead of 200,000 mots of 
one vehicle, what we are going to 
have is 50,000 units of four differ- 
ent vehicles.” 

Reducing the cost of changing 
models would permit Detroit to 
shorten its product cydes, even to 
the point of re viv ing a cherished 

i-ncfnm- the, nraina l stylin g ehana i* 

“GM would like to go bade to the 


Uncertainly on Rates Scares Off Investors 


(Continued from Page 9) 
of the Sngapore-Malay&i&n marke t 
dearly affected attitudes about in- 
vesting in Third World nwfat 
and Samsung ended the week at 
98%. The paper was largely placed 
with Far Eastern institutions and 
E u ropean funds invest i ng in tire 
Far East 

The big - excitement was for 
Deut5che-maifc-denanrinated pa- 
pa. Volkswagen sold 250 milflnn 
DM of 10-year bands bearing a 
coupon of 3 percent and warrants 
to buy shares at a price erf 407 DM. 
The bands, offered at par, ended 
the week at 108. 

Asko Finance, a West German 
•retailer, sold 150 million DM of 
seven-year, 3-percent bonds with 
warrants to buy preferred shares 
and ended the week at 106. 

Cr6dit Suisse sold ISO million 
DM of lfi-year beads bearing a 
coupon of 2% percent with war- 
rants to boy nmvoting shares it 
hridin Ekktrowattataprice ofiJO. 
Swiss francs. Tins issue, priced^at ' 
pax; ended the week at 102. ~ 

The anhr DM straight bond to 
attract wide support was a 30-year, 
zero-coupon issue from the World 
Bank. Investors were asked to pay 


130 DM for paper that will be re- 
deemed at 1,000 DM — an implied 
yield of 7.04 percent This issue was 
seen as a very inexpensive way for 
foreign investors to speculate on an 
increase in the value of die mark 
and for both foreign and domestic 
investors to speculate on a decline 
in DM interest rates. 

Tension within the European 
monetary system, after comments 
from Gerhard Stoltenberg, West 
Germany’s finance minister, on the 
need for a revaluation of the mark, ' 
put pressure on the lira and the 
French franc and «mt Enrohre and 


Eurofranc short-term interest rales 
up. That increased short-term in- 
terest rales on the Europ ean cur-, 
reocy reducing the attraction 
for investors to boy ECU bonds. 

Instead, European investors 
were hired into baying high yield- 
ing Australian and New 7 jmT and 
dollar bands. West G erman inves- 
tor especially like such paper from 
issuers familiar tn than — West- 
Deutsche Landesbank, Nord- 
Deotsche Landesbank and Unil- 
eva in Australian dollars and 
Paribas Luxembo urg in New Zea- 
land dnllara 


old annual model change without 
the tremendous expense of devel- 
oping all new products,” Mr. Cole 
said . “The plastics approach makes 
a lot of sense.” 

The gleam in the eye of both the 
plastics suppliers and auto compa- 
ny designers is the possibility of 
“leapfrogging” the Japanese and 
rtirnTnafmg their cost advantage Of 

51,500 to $2,000 a car by changing 
the baric structure of automobiles. 
The idea would be to make modu- 
lar, sectioned underbodies with 
plastics fd then them togeth- 
' a with a Httie adhesive. 

Strength and durability are not 
really an issue, the designers say, 
pointing out that race cars and 
high-performance aircra ft already 
use reinforced composite plastics. 

But Hnflri Ahhkacti, who is in 
charge of advanced engmeering for 
the Chevrolet-Pontiac-Canada 
group at GM, doubts that there will 
be an aH-plaitic car soon. One rea- 
son is safety. “Mild sted is very 
good at absorbing energy in a 
crash," he said. “Plastics do not 
have that ability yet" 


uacREPcr markets; 

points in a budget-balancing bfll 
late in the day. a Huzzy of buying 
converted losses of shout 5/32 oq 
longer maturities into rains dj 
about that size. But the bflfe market 
continued to show losses. j 

Traders noted that theafternoaj 

market was thin as word was await; 
ed on the faxe of the budget billi 
The near standstill in trading 
reflected congressional inaction aq 
the national debt ceding, which was 
dne to fall bade to $1.8 trillion a( 
midnight from a tonporary kvd oi 
S2 crimen. ! 

The deadlock on the debt ceding 
caused the Treasury to announce a 
postponement of Monday’s rcgnW 
weekly auction of bQI& j 

Earlier, prices managed to recow 
er after n*etining slightly at 



Sobering Accuses Hutton of Fraud 

involved. Using the confidential in- 
formation, the suit charges, TTnttrwi 
bought Sphering stock an the opai 
■ moixet in a quantity *beheved .to 
be in excess or 25 ndlion shares.” 

• &henng da- aSki^rdmiHiittosL 
be «aqcaal from bayingany mare 
Sobering stock and that Hutton di- 
vest itself of stock aheady bought 
Wall Street sources said last week 
(hat Hutton had been buying 
Sobering stock in huge quantities 
and was allied with Dart Drag 
Corp- in the purchases. 


New York Tima Service 

NEW YORK — Schering- 
Plough Carp, h— filwi suit charg- 
ing that EJF. Hutton, ft Co. oigaged 
.in spam ties brand byusing. confi- 
dential infcsmatian'abbut me' drug 
company Cor its own porpoea." 

Scfaering said in the- snit, filed 
Friday in a UK court in New Jer- 
sey, (hat it had given Hutton the 
information because of a potential 
transaction involving Scfaering in 
which tfaeinvestment firm was also 


Caterpillar Automation 
Will End 10,600 Jobe 

Udt o d Prea International 

PEORIA, minois — Caterpillar 
Tractor Co. will spend mare than 
$600 "tiTKnn to a uto m at e its 21 
plants around the would, in a move 
that win rfwwinate about 10,600 
jobs in the next four years, a com- 
pany spokesman said. 

Caterpillar expects to eKmwmfK 
. about 20 perooit of its weak farce 
1 in the next four years, the spokes- 
man, Stephen Newfaousc, sad Sat- 
mday. About half the job reduc- 
tions will be made through 
at t ritio n. Caterpillar, the woritfs 
largest maker of construction 
equipment, employs about 53,000 
people. 


opening on carry-over 
the unexpectedly large 
surge in the weekly M-l mouejj 

amkTxridrJ 

spread expectathms that theFedoj 
al Reserve would add permanent 
reserves to the banking system] 
When the Fed did not do so, many 
traders and investors dosed their 
books. i 

Meanwhile, the bid price of the 
cur re n t 90-day Treasury bQls fefi 
seven basis points to produce axj 
effective rate of 7.41 percent. The 
rate on the w a n p m i fln ax-month 
issue, which fell five baas points] 
was 7.64 percent, while the price oq 
the one-year bill shaped fornf 
points, for a rate of 7.83 percent, j 
Also in the secondary market 
the offered price for the 8^-perceiq 
notes of 1987 dosed up 2/32, tq 
100 2/32, for a yield of 839 pert 
cent. At the longer end of the mar] 
ket, the new beOwetixer long Treat 

SS, b ^ed5/£, P tol00 1 l7»! ^ 
yield 9B6 percent, compared with 
9.83 patent a week earlier. j 

In the corporate debt sector! 
bond prices' continued to easei 
Lindtey B. Richert, chief markn 
analyst at McCartlnr, Crisanti A 
Maffd, noted that S3 J billion of 
new corporate issues flooded the 
market last week. 1 


U-S. Consumer Rates • 

for Wask BnM Dk b j 

Passbook Savinas 

5-50 % 

Tax Exempt Bands 

Band Buyer atFBona Index 

X54 % 

Money Moricat Fund* 

Donaohuo's WJay Avemoa— . 

1 

.748 4 

Bank Money Market Accounts 
Bank Rate Monitor Index 

.6471* 

Home Mortooue 

FHLB avaroae 

.1X61 4 


(Continued from Page 1) 
than what would be needed simply 
for the 15 countries died by Mr. 
Baker. Mexico alone is expected to 
need at least half the total for itselL 

In addition, the 15 — Argentina, 
Bolivia, Brazil, Chile, Colombia, 
Ecuador, Ivory Coast, Mexico, Mo- 
rocco. Nigeria, Peru, the Philip- 
pines, Uruguay, Venezuela and Yu- 
goslavia — are named simply for 
illustrative purposes, as they are 
the countries with the largest debt, 
a Treasury Department spokesman 
said. 

Mr. Baker never meant that 
lending expansion should be limit- 
ed to those countries, but intended 
that it should cover all countries 
with problem debts, the spokesman 

While the commercial banks are 
tied up wrangling ova the de tails 
of the commitment they are being 
asked to make, the World Bank, 
which is supposed to move to cen- 
ter stage in orchestrating this de- 
cade of development, has largely 
disappeared from die scene. 

Last week, almost two months 
after Mr. Baker’s speech at the 
IMF-Worid B«nlc BTmnnl meeting 
in Seoul, the World Bank surfaced 
with a joint statement from the 
IMF ex pres sin g “their strong sup- 
pot for the initiative'' and stating 
they “are ready and willing to play 
thetr parts in the implementation.” 


To outsiders looking in, die 
World Bank, loqg criticized for be- 
ing a bureaucratic : slowpoke, is im- 
mobilized by having a lame-duck 
president. A.W. Clausen an- 
nounced at the Seoul meeting that 
he would not seek reappointment 
when his five-year term expires in 
June. 

The institution is now bogge d 
down producing studies c ommis - 
stoned by directora co mp e tin g far 
dm hanOT of wbtefa department gets 
to lay out the strategic plan. There 
is no one at the top to establish 

such a pbm; Mr. CLausen obviously 
does not want to tie the hands of 
his successor. 

A speech he is to deliver Monday 
in Buenos Aires was initially await- 
ed as a major policy pronounce- 
ment But the speech now is expect- 
ed to address how to carry out the 
new strategy in only the most gen- 
eral terms. 

The critical factor that is lost 
amid this turmoil are what condi- 
tions will be applied to the new 
loans made to countries that agree 
to submit to the Baker plan. For the 
commercial banka, the existence of 
conditions is die only safeguard 
that the difficult domestic reforms 
will be carried out and that the new 
money will not be lost in a bottom- 
less hole. For the debtors, such con- 
ditions are the surrender of nation- 


al sovereignly. Thus, no debtor has 
get com e forward to inapgurate the 


Banks that initially stayed out of 


The cooxfitions to be set for con- 
tinued access to the Baker plan 
Ukefar will be less stringent than die 
tough duriHlean taigas applied by 
the IMF, which all the debtor coun- 
tries at one time or ano ther have 
failed to meet 

The new t ar gets likely will be 
kmgpw»ngt;per uBt t in gamorere- 
aEsac amount of time to construct 
a heahhia ec onomic base, and will 
have a more positive orientation. 
Instead of measuring what targets 
the countries failed to meet, the test 
will likdy be a positive measure of 
bow mum closer a couhtiy is to 


on loans. 

The c ommercial banks, mean- 
while, are caught up in all irinAi of 
wrangles. Up to now, new lending 
has been squeezed out at them by 
the IMF, which tied its own com- 
mitment to then*. The money the 
banks put up was measured in pro- 
portion to their own share of each 
country’s total bank debt It uses 
1982, the year the debt crisis erupt- 
ed, as the base year. 

Some argne that the 1982 histor- 
ic base should be kept Others, 
which have been active seflmg oar 
swapping defat, prefer to use the 
current real base.. 


involved in the debt cries only 
cause short-term interbank trans- 
actions also were rescheduled, now 
object to being included among the 
long-term leaden contributing 
their proportion, of new fimdsw 

Die banks are also trying to use 
rtw ir connnrtment to the Baker 
plan as a leva to pry coacesskms 
tram their own govanmails. These 

CODOBSBOnS such thing s IS 

tax or regulatory relief in increas- 
ing their loan loss reserves, and 

jmalriiing new wm w i i tmHiti from 

export credit a gencies . 

Abo still to be resolved is wfeethr 
a the Baker plan is a sequence of 
steps, bcginxriiig; as the banks 
would prefer; whi realistic adjust- 
ment pro gr am s in the debtor oonn- 
tries, or whether it b an integrated 
prog ram of concerted action with- 
out proconditiom; which the inter- 
national orga nizations would pre- 
fer. 

Despite die many unresolved is- 
sues, bankers expect European 
cKwinw- i riiil hunts in nsqmnd . posi- 
tiveiy to Mr. Bako’s request for a 
oomnatment to the program. They 
expect that there win be no formal 
commitm en t — a te rm t h at they see 
as too precise a pledge — butiatber 
a statement of support. 


u.s . Demands EC Telecommiinications Opeiiing 


(Continued from Ptge 9) 
what he said was its failure to move 
more quickly to open telecom- 
munications markets. Such retalia- 
tion, be said, could take the form of 
duties, fees or restrictions on im- 
ports Of West G erman products 
and services. 

Since September, under the 1974 
Trade Act dealing with unfair trade 
practices, the administration has 
initiated actions against Brazil, 
South Korea, Japan and the EC, 
and has listed more than 200 for- 
eign trade barriers that it said im- 
paled UK exports. 

The administration is now exam- 
ining several other cases, indndmg 
'"“ations of unfair subsidies to 


an consortium of French, West 
German, British and Spanish aero- 
space companies. 

Mr. Yeuttec said he planned to 
raise Airbus in his talks with West 
European trade officials this week. 
“There are a lot of allegations” 


about Airbus, he said, “but the case 
is not ripe for action." 

Mr. rentier also said “tele- 
communications is the most con- 
ten tkxa issue” faced by the Re^an 
administration in preparation for 
the GAIT talks. 

In an earlier interview afta talks 
Friday with GATT nffiwaig, Mr. 
Yeutter said: “What we are trying 
to do in Europe this week is but a 
beginning — but we want the pen- 
dulum to begin swinging on liberal- 
ization of trade in goods and ser- 
vices, with telecommunications 
vary high up an our list. 

“I am hopeful that we can move 
this process along through the ef- 
forts of not only Mr. B»ngrm arm, 
but Madame Cresson," Mr. Yeut- 
ter continued. He was referring to 
France's minister of indnstiy and 
foreign trade, Edith Cresson. 

Mr. Yeutter will meet Mrs. Cres- 
son on Thursday in Paris, and be is 

^mttoweenthe^ttoc^c^Qa 
Gfatade <TElectricjt6 and Ameri- 


can Telephone & Telegraph Co. 

dial would greatly strengthen each 
company’s position in the other’s 
domestic market 

A Nov. 30 deadline for a French 
government derision passed amid 
continuing urging in Washington 
by senior AT&T executives (hat the 
a dm i n istration press France for a 
“U& sedation." A French opening 
would represent a mri or success for 
AT&T. 

AT&T has been cooperating 
with Philips NY, the Dutch elec- 
tronics company, to produce digi- 
tal telephone switches for Weston 
Europe, and, in general, to expand 
its taecQunmmkations operations 
outride the United States. 

This is part of a joint effort to 
compete more effectively against 
IBM and and Japanese telecom- 
munications companies, and the 
proposed link with CGE would be 
a key element in that strategy. 

The French-U.S. agreement 
would also represent a major vic- 


tory for CGE, which would obtain 

AT&T’s help in marketing its trio- 
co mranmcatio ns-s witchnig equip- 
ment in the United States. 

A French official said Sunday 
that the government still favored 
an “AT#T solution,” bat wanted 
tn Tm pm vp the tfmrre nf thff ori ginal 
AT&T-CGE draft jugroement re- 
garding marketing CGE products 
m the UJS market This process 
could take at least several werics. 

The official described as “specu- 
lation” and “rumor” reports sug- 
gesting that France was seeking to. 
replace AT&T with several West 
European telecommunications 
companies. French industry 
sources have cited LM. Ericcreu 
T d e materid AB of Sweden and 
•.General Electric Co. of Britain, as. 
writ as Matra SA and the Bull and 
Jeumont-Schneider groups of 
France as possible replacements. 

“Oar hope is that AT&T will not. 
dose the door,” the official said in 
Paris. 


Mutual 

Funds 

Fieura a* a! dam at tnxBna Friday 


mew YORK (API— 
Tt» Mtowfmi m 


Ham. w P rtl ifl By m» 
Notional AmocU 


o» SoairftiM DM- 
•n. I nc- art Itw prfe- 
m% at Midi ftMM 
•MWlIlM eotrttf havo 
bttnioM (Nat Attar 
VMutl or muom 
( vatot rtwt toMt 
cHar«tl Friday. 

DM AM> 
AARP I aval? 
emor un NL 
CMM 1SJ3 ML 
Gonad IIS NL 
ethlnc IMS NL 
TjdFBd IIO ML 
TxFSJi 15JS NL 
AST MMwg h 
Emm UWKJi 
cmjnc lMtUW 
intOv rut NL 
LGOvrULM 113S 
I Socfnc TT.15 13.19 
UHikK UJSI73I 
ADTEK IM ML 
Acorn F 3TJ» NL 
AfBtora 1X05 NL 
AIM FtoodK 
CvYW T1JT9 12*2 
GfflWir VJH1057 
HJYM 9S7 mi6 
SwnD US 
AMEV FWlfc.^ 

l&Lr’&ySk 


Cham .lRffil IIjOB 
HKhd ILM 112 

iST" ixS 17 jn 

ss^jsgs 

A^F SilSS 

Amor Capirai: 

Carp 7.15 Ml 
Cmttk linus 
Entip 1XM MJ1 
EXCh 5054 
Ptf Am 1LU 1350 


1.1330 

Grow aucr^ _ 
H u rl f U5714X> 
HI YW 1027 1151 
Mun B 195S ' 

OTC 9M 

Pact 20 lM 3U9 
ProvW ATI US 
Vantr MM 154S 
• Armnaai Fundt: 
ABoi 1L1* YW 
Ameo 954 1021 
ajmuh i7.it ran 
Bond ofi MM 
Eupoc war W35 
RMnv TUS 1SLM 
GmHi UIZMO 
incam 1L40 \1M 
KA ram 1465 
NEca 1X73 20-4* 
N Port us 9<4S 

TOME HU9 IW 

WpMtWa 1152 
AGOlFd 754 US 
A Hcrlta tnavafl 
Alnvnf ' 751 NL 
A Inv In 954 NL 
AmMed 3X75 NL 
ANtGOi 455 43S 
ANtlnc 1949 .ZUB 
Anmtav Ui 7.12 
Anaiyt 14735 NL 
Annina unmall 
Am HoubWdo: 
FnflB 1145 124? 

-Incnm sjp 551 

Stock US 940 
Bataan Group; 
Bond 1J» NL 
Entarp 1341 ML 
Gwm 1347 NL 
linn- U4 NL 
UMS St 

1236 NL 
UMB B 1X71 NL 
..Vatat 12*3 NL. 
BLCOt 174* 19 JO 
BUC Inc 1430 1X3* 
Bariev unawn , 
■aacGWi 1439 NL 
Baoc Hill 2249 NL 
Bantam GapHal: 

. CaTFL W» NL 

coitfi nn nl 

COPMT row NL 

GNMA WZI' NL 

■BL'is 5 nl 

WlFd 1544 nl 


BW Ask 
iBorion Ok 
' CtaA»3030 NL 
MOdl 1135 . NL 

taGHi 3U4 , . 

Bowttr -137 NL 
Bract 714* NL 
Bull B Boor Go; 
CoptIG 13J3 NL 

Enonv UN nl 

Gfricn 941 NL 
HTYW 1441 NL 
ColMun WJ9 NL 
Colvart Graop: 
Equity 1141 NL 
Jnco T4J9 NL 
Social 2U0 NL 
TjcFLI 1052 NL 
TxFLOlSJM NL 
WotaAfUM NL 
Colvin BuHodu 
BaOta 0001421 
Grwlti 1749 1233 
Ctndn IN 945 
DlvSb* 121 X51 
USGvt 047 1X13 
MOOT 74* XU 
Mlnca rnsff IL33 
Molnco 1U3-U49 
1X2*1477 


111 U T1 
CMSta 1U7 NL 
Chart Fd 73* NL- 

aw.°F. us at 

upm SUi ML 

adNA Panda: 
Aarov 1X0* 1249 
GrwW .14301934 
HIYM 949 1041 
. inaom 7J2 7ji 
Munm 7J1 741 
VahM 1ZS21XU 
CalanM Fund*: 
AGatd unmta 
CaoA ism 1741 
QaCNi unawO 

Fund- 1530 1725 
CvfltC 123* 1102 
Grwttl 1123 1221 
HI Yld 743 747 
Incam 72Z 774 
Online 049 KM 
Opn II - 1^*1242 


1320 

ColumMa Funds: 
Rxtd Bte-.NL 
Grill - 27 JO NL 
Motto 105* NL 
CwntlAB U9 172 
CwtttiCD XU 2J4 

C urmwiB e Group: 

BdStk 933 NL 

Fund unowH 

IncnFd 122 M2 
Tcotfix *» NL 

C ZSSXdS 

«* ca K at 

&fCop 1733.1X73 
Crwton AoiAr 
C mrot 949 1041 

InvCN MZO NUB 

Lowry 940 103* 

pilot «5a nun 

GKKUT WwTT KU7 
SnAUt 1572 1749 
usov m.19 an 
DFAXm ms NL 
OPAFBCWI47 NL 
Doaawntar: 

CofTF 1U9 NL 
coavri W2i nl 
O vGtr 140 NL 
DhGt US* NL 

HIYM US 1422 

IndVIrlZM NL 

KVW - NL 
NL 
NL 
NL 


NtlRjC 7M 
OpHanXUS 
StarTx TL21 

■' nK ***» 
TaxEx 10511141 

USGvt I3J1 NL 

WrtdW 1294 NL 
DOtowant Gram: 
OMC 1051 1143 
~ ‘ '7545 .17.10 


NL 


Detow KM 3147 
DetoB 744 US 
TXFnt 721 727 
I Dattn 13471431 
falTCS. 1X05 NL 
DITAG 3053 NL 
OITCT 9S* NL 
DGDIv' SB NL 
DadOcBISOR NL 

DodCxStWJB ML 

DWtTIC TW4 H40 
iDrawiBmjtam! , 
■Bomb 1147 3143 
imranp WHd 
■Govt nos 

Owtt) 1777 


iui 

St 


DnvfnCn: 

ABnd 14U NL 
CalTM IMS NL 
Drtvf 1152. 1470 
GNMA nnavaS 
ImTx M47 NL 
Inform 1251 NL 
Lavas 1721 19.14 
GthOp 1130 NL 
NYTX 1427 NL 
Spl Inc MS NL 
To* Exit 34 NL 
TIM C 720 NL 
Bool Gtti 742 0J5 
Eaton Voact: 

EHStk 14341527 
"GvtOb 1157 1344 
Grwtl, 450 72* 
HlYTd 949 .54* 
tnefloo 939 1X50 
Invar lit 941 
MaaBd 021 X54 

NautU 1X24 1447 

SpEqt 19.15 2045 

TaMM 1032 3024 
V3S}4 12.17 TXX 
BmpBM 1421 17.12 
CvrwJi 1X3* NL 
EvrarTM 1721 NL 
FPA Funds: 

CWIt 1152 114 
Nwlnc .920 941 
Point 1440 1X17 


Mont .31249 ML 
Prm BG* 1431 NL 


CPCMi 1120 -NL 
-Exch 4X91 NL 
FTIntMJO NL 
FdlMr 954 NL 

SMMA 1127 NL 
. Gwfll 1X49 NL 
HI I cm 1XU 1XU 

HIYM 1043 NL 

Inca - HU0 NL 
Short -1X17- NL 
SIGvt 1022 NL 
StkM 1437 NL 
Stock 1924 NL 
PMaWyjnvtatt 
- Aarao* 1X42 NL 
CaWtai 1041 NL' 

Canon 4449 NL 
Canftd UJS NL 
CTAR IX** NL 
Dastnv 1X32 


nc 

Bcch 5373 NL 

mil 1744 NL 

n«Btf <jo ■■■ 

FndnMK .._ 
GvtStC 925 NL 
HI loco 9JS NL 

HlYld 1X72 NL 

LtMup XT* NL 
MaW 4US 4420. 
MuaBd 729 .NL 
Moot 7027 NL 
More 1X351*35 
-MtoSc VL4B NU 
NYHYd 1X33 NL 
OTC 1X&1S50 
OWW IXmT7X5 

Purlin 1220- NL 
Quaf 1479 NL 
SalBnh 1040 1143 
SofChtn 1139:1243 
MFM 11.19 1143 
SafDtf 1XB9 M.13 

5alEn 1X15 11 J1 

WPIn 3X9* W24 
SofHIt 2*70 27 M 

SoILM -1741 IZJS 

SoUM 949 928 
SalTCft 31212124 

SOftllR -2X21212* 

tacWt 13J713jp 

Thrift 1M4-.NL 
Trend *451- NL 
PMuCta 3M4 NL 
FOi ui iU ul Piw. 
Dvna 835 NL 
MielTK 1427 NL 
- lilYld . 834 NL 
IlMtet 445 NL 
lacorn «Jt ML 
Salter *39 NL 
WridT *20 NL 
Pit (nvatori: 
-BndAp 1349 UJS 
Dtooo 1147 024 
Govt 1227 1407 
. Grwttl- 418 475 
- Incan *93 *47 

. JdltSM 7233041 

90-10 T22IUJ7 
. . opin tn - 532 
Tax Ei< 930 1X01 
Gram? 
4X1) NL. 
j 95495* 

OMoOh - 940043 
FlOXPd 1132 NL- 
44WIEQ 14 '447 
44 WbH . . 259 NL 
Poundtrt Group: < 
Grwth BAS NL 
Hneanr 1444 NL- 

Mitfuat 934 NL- 

Snod 2531 NL 
PrankJOn Group: - 
-.AGE .159 -314-J 
CfPCM '94* NL 
DNTC .1X43 TT27 
EtaUV 543 UK 
FtdTx 034 1129 
GoW .749 129 


Bid Aik 
Grwttl 1350 1459 
MATP 1X3* 1X79 
NYTOK 1045 1149 
Option MO X90 
urn* Xu 737 
_Uicom 2 M 220 
US GOV 743 724 
CaTrx *44 *52 
FriJGG 1505 1534 
Fnllta KUO HUS 
Pdonw 1134 1X17 
FdTrGIt 1140 NL 
Gtlca unavaD 
GITHY 104* NL 
GIT IT 938 NL 
GTPW 1740 NL 
Gala Op 1443 NL 
Con Else Inv: 

EKnln 1144 NL 
. EMnTr 2740 NL 
EMnTX 1X74 NL 
SIS 3930 NL 
. SB3LPU40 NL 
Gan Sac 1U8 NL 

GMMEr 3753 NL 

Gtatol BX04 NL 
GrtaEm 1X45 NL 
GrtmE* 1X1* NL 
GwfftWtfi 953 1045 

Grill tnd .1147 NL 

Guanflon Fundi: 

Bond 113* NL 
PdrkAv 3025 2X13 
HamHDA XM 752 
Hart Gill 1141 NL 
HartLav 1X37 NL 
HawalTxIXll 1053 
HtartM .-12*9 1339 
Hmtlnv. 1X5* NL 
Hot Wan 3445 -NL 
Humor 1145 NL 
Hutton Group: 

Band r 1140 NL 
CMN - 1B2I 1044 
Emrarl2*4 NL 
Dwtttr 1454 . NL 

- Optlac 147 NL 
. GvtSC 950 NL 

Basic 1141 NL 
Nall - - ION 1135 
NY Mu TX50 1X94 
PracM 971 NL 
tRISIck UI 9 JO 
ID S M ot u ofc: 

IDS As 741 NL 

.IBff*.* 

U» EX 454 530 
. IDSOrt 1X71 1949 
IDSHIY 42* 449 

IDSInt A72 747 

IDSND 948 95* 

- IDS Prog *53739 
MofRor 544 596 
Mull- 1144 1235 
IMTX X71X90 

PntMt 4*S4J8 
■ Stock 1741 1XB2 
. Salad 834 847 
Ml Group: 

Oram .241 74* 
Incom 378 X13 
Trsfai H50 1140 
Idm 1054 1152 
Indutfnr xn NL 
InteCoprlUO NL 
.ItolDval .Mi 1073 
ln« PortWfa: 

Srew 944 NL 
, _«>to XC NL 
I TO Group: 

JnvBot 11441229 

Hllncn 1441 1545 
. «£TF 1539 Bw 
Inv Rash 451. 547 
to»«l.. 113*. NL 

IWGIti U3I NL 
Jvyintf 13920 NL 
Jp Grill 7545 1*29 
JPIooo SJ* 934 
Jonu* Pond: 

Fund. 1444 NL 
Voiut 117* NL 
Vamar2449 nl 


Band . 1535 UTS 
Grant MJ01541 

USOvF 157 930 

TaxEx HUM 1097 
U5GVT 1X68 1147 
Kawfmn - UI NL 
Komar RiadK 
Carr* ixnisja 
. . I Atom 4*5 930 
■ Ora? 114*1X91 
HIYM' mat 1143 
InHFd 1X72.1X27 
Mun & L73 9.17 
optn .1044 1143 
Summ 2*44 2X4* 
Tod) UTS 1344 
TM Rf 1440 WM 
USGvt 935 944 
KttoAono Mass: 

. iCusBl U49 -NL 
.tan 1X13 NL 
tau 742 NL 
CM K1 93* NL 
Cm IQ 732 NL 
.CBX» 3041 • NL 
Cbi SI X44 NL 
CUSS* XT4 NL 
Jnttr .550 NL? 
JWWr.lLW ML 
TkPrr xw NL 


Bid Ask 
KldPoor 1X77 NL 
LMH 2525 NL 
LtPBMn 2X03 NL 
Lahmon Graop: 
COPltl 19.19 NL 
InvW 1944 NL 
Oppor 2358 NL 
Lovrue X57 NL 
Lmdnatan Grt>: 
CLdrfr 1271 1345 

GOMM 349 NL 

GNMA 751 NL 
Graw 948 NL 
Rash 1740 NL 
Utarly Family: 
Am LOr 1 iflf NL 
Tx Fre 942 NL 
USGvt XM NL 
LWTYm 1X34 1249 
UndDv 2X17 NL 
Undnr 1X10 NL 
Loom lo Saytar. 
Capll 2427 NL 
Mut 3045 NL 
Lord Ataatt: 

Afflltd 953 1037 
Bnddb 1827 1132 

DovGf 744 X57 

GvtSpC 332 345 
T«Fr NLD0 105D 
TxNY 1039 13J0 
. ValAp 1147 1X54 
Luttiaran Bra: 

Fund 1X32 17.10 
locum 943 951 
Muni 732 771 

Mono Flnand: 

MFI 1138 1227 
MPG 1X33 1045 
MS Ma 9491038 
MS NC 10421094 

M3 VA 1XU1XU 

MIT 1244 1343 
MIG 1X75 1159 
MID 958 1033 

mcd 124* mm 

MEG 1571 1*54 
MFD 1142 1233 
MFB U3S U53 
MMB 94* 1X35 
MFH 744 759 
MMH KU5 1X55 
MSF 749 851 
MST Md 953 1043 
Mattlm 2155 NL 
Mwdirt 2556 NL 
Mavrin Lvnch: 
^Bosto 1X22 1X31 
CaTTx.unavmi 

2147 2139 
- 1044 104* 
_ Bd 1272 1325 
94* 1052 
FdTm 1255 NL 
Mine X12 04* 
HICWI 1121 1120 

IntHM 1177 HE 

InTtm 1149 1132 
LIMal 974 94* 
MU1H I 973 1X14 

Maidln -744 775 
NY MU urn NL 
NHIteciaiO NL 
PacPd 1054 203* 
Ptabl 1142 TZ43 
ScJTdi 1X341130 
..SfIVal 1341 1477 
Mid AM 731 74B 

ffiMzSV 

Amor H LM NL 
Grwttl X79 730. 

939 HW 
TxFra 1X71 1144 
JJttGoal 2X31 NL 
MutSur *1J9 NL 
N ot A via 1X5* 1144 
NoHnd 123* NL 
Nat Socurfttts: 
- Bata i 1*75 UJ0 
Ban! 33* 342 
COTiiE 11471244 
F odSc 1145 1X20 

Grain 951 1033 

Prato 755 19 
Jnram us 739 

tads 049 942 

Stock -VJK KLO 
TOOC E* JJB 945 

K3w!<toRh^ n 

N^PU^^ 

.Grwttl 2540 Z743 
Incom 1X71 1172 

. flats* 2XW2542 

T«E* 737 772 

H wto wr Bonn: 
Efirttv 1X39 NL 

S- NL 
Pwfn 1*4* nl 

^ at 

NWtajMGlSp; NL 

NL- 

NtoSSot 1 ® NL 

1X0 NL 


BW Aak 
NEinTr 1X0 NL 
NEIoGt 1*44 NL 
North Star-. 

APflflo 940 NL 
Bond 1X12 NL 
Ro u l on 1950 NL 
Stack MM NL 
NovaFU 1450 NL 
Nuvaan XB7 nl 
OMD om 2340 2546 
Omasa 1340 NL 
Opptnho lmt r Pd: 
AIM 2X34 2X23 
Dltaci 2X36 2X14 
Eqlnc 835 8J0 
Oman 1X72 1172 
Goto *70 732 
HI YM 17.1* M40 
NYT«1U2 1X06 


1*44 1547 
„ ... 2077 22JM 
Toraat 1X432X01 
TxPra XAZ 953 
Tima 1*82 1*30 
Bl uaCh 1134 1234 
Rot Gov WM 115* 

USGvt 1834 1050 
OTC SOC 1031 1942 
Pacific Hartmn: 
AepotM unavall 
CmH 1X01 NL 
HMiYdl54* NL 
PolBo W ahbtr: 
Altos iaw 1*49 
Amar 147* 1*.U 
OdTox 9591X33 
GNMA 1X1*1041 

HIYld 1020 1X65 

InyGd H30 1045 
Otvmp 1X17 TL11 
TmtE* Wat 1B49 
PmCWM 1X01 NL 
Ponn Sq 931 NL 
tomMu 73* NL 
PormPrt 1139 NL 
PM la 9J4 959 


Baton 1243 1341 
CvFd 1732 1853 
Gratfi 1577 1731 
HIYM 930 949 
Stodc 1353 1479 

-PC CP -1030 NL 
PHnrim Gtp: 

PAR Z105 2140 
GNMA UJB1XS4 
PWltaa BJ< 943 
PttoHI 744 X17 
M o n oor Pond: 

Band 93B 1X1* 
Fund 223* 3*44 

ffirttaSr NL 

gnu la TOH NL 
Gram 17.14 NL 
.Gfhlnc 1342 NL 
HIYld M54 NL 

Incom X5j NL 
tofl DUS NL 
NowAra 1150 NL 
NEra 1121 NL 
NHortzlUO NL 
«W in NL 
TxFil 044 NL 
TJtPrH 1041 NL 
T5t£rSJ 539 NL 
PrtnPTB 937 971 
PraSorvIcar. 

S??T nl 

PjW 1X00 NL 
Inaom 049 NL 
PnutontM BacMi 
Ad) PM 2447 M L. 

gttvr 1737 NL 
GtoWrU44 NL 
OvPtr 1033 NL 
6JJHC 1X47 NL 
GJOnr 1341 NL 
NIYMrM3B NL 
HYMriSM NL 
MuNY lijn NL 

g& r rlBi Sth 

»r r SS NL 
Putnam Puna*; 
CCArp «n*957 
9^* -4X0*4939 
CbfTx 14J3 icni 
Cap It 754 ml 
1444 loa 
Ensfla 1X141X2? 

gmra a*4 on 

,12 jig 
Toot Etc 2124 9ijn 
JPHIY T24S NL 
TPina 033 ml 

ojssrfis 1 ^* 

at 

S2R* »w IL& 

iummtp unavaD 


BW Aak 
Roroe 047 NL 
SFTEqt 1X40 1137 
Safaco 5*cor: 

Eqott HUB NL 
Grattl 1505 NL 
Into 1352 NL 
Mink: 1X5* NL 

**CorrI 'ixS*' NL 

S^SS Kt 

GvMtp 153* NL 
Grain 147* NL 
Incom 1251 NL 
I Ofl Fd MS ML 
MJWlB 840 NL 
NYTo* 10*7 NL 
TxFr87 1X05 NL 


Tnomaon 

McKinnon .i 
Gwttl 1X03 Nl 
Into 1X14 NL 
Opot 1X5* NU 
USGvt 1X34 NO 
Tudr Fd 2X12 NO 
TratPd 1X74 NO 
TraW Porttollo: i 
EqGtti 1132 NU 
EOlnC 1X00 NLJ 
28iti Cantury: J 

Gift r *34 «J* 
Grwttl 1530 NO 
Sotoct 2829 NO 
Ullror 743 7 M 
USGv 9941 NU 
--- „ ... VWu r XT* ajrt 

TxFrtO 1045 NL USAA Group: 
TxFr93 1055 NL Cormt 107* Ntj 


Soawttv FwW»: 
Action 8W 
Bond X13 B59 
eowtv 349 *40 
invest XM 979 
UHro 032 949 
Sotocrod Fund*: 

Am 1X73 NL 
_ Spl Shj 2040 NL 
Sellsman Group: 

Cap Fa 1240 lass 

CmStk 135* 1473 

Comwn 959 1048 
Grown 559 *46 
Inco 1U» 14.10 
MamT* 747744 
MkUTx 775X14 
MlnnTx 741 778 
Matrix 755 753 
NY Tax 754 842 
. OhlpTx 748 7M 
CaTax *10 *J9 
CaTxO 4.13 *42 

gwGM 774 X13 

SSS&c’&SS 
^K^ira* 

gond_ 04 2 743 
Cams 195*2149 
. Grwttl 1427 1550 
Srooto 4113 nl 
S entry 1150 1353 
Sha nno n Fundi: 
ATTGt 8445 NL 
ATlIric 824* NL 
AnrGr 1245 13.1 t 
A ppro 2349 2357 
CalMu 1474 15J3 
raVQl *41 759 
gtojal 3*57 2757 
HIYW UTS 1974 
SPlGvr 1123 NL 
MSGVI U3414JM 
MMan 1428 15^8 
NYMU 7iri 1577 

SSXEn® Sh 

Stoma Fuads: 
ptntt X10 XB5 
'"C0 052 939 

Inwst 850 941 
s»dn 031 940 
Traw 1X73 1351 

V«it 11 M U39 
Smtth Barmry: 

Eniri m, 

& 12 % 
jSISKS 
|«X r, ig St 

►ranra 954 
St Form Pda: 

1*32 NL 

rararon Fmdtt 

£””=■ ,■» ML 
immt LM nl 

8&.iS St 

^sss 

IZW nl 
1859 NL 
§* MM NL 
NL - 

St S hi ^ l5: “ L 

OO *70 
—SI tor 4JB eg 
WmnOv 2S3S ' NL. 
gTSfitelW NL 

ass. ggtff 

».wS 

& asia 


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Gold *41 
Gram 1472 NO 
Inn IUU NU 
son 1*3 * no 
T xEH U St NU 
TxElt 1152 NU 
TxEEh 1040 NU 
On mad Murwrt: 
Garni XM NL 
Gwttl 2071 Nl 
Inn .120* Nl 
indl U2 Nl 
Mull 1X57 NL, 
United Fundi: 
Accra 845 
Band X92 
GvtSae 555571 
IntGtti *53 7.13 
Coft me 1747 1931 
HllaciiS* M30 
incom S5* 1*2 
Muni *77 7JS 
NwCcpI 5485*? 
Rettre *18 
ScEno 943 
Vonp *45 
Utd Sedrica*: 

- GKtanr 3Jf nl 
GOT MM NL 
Grown 740 NL 
Into BUS NL 

L SSrt m 

vtoFro iX98 rfa. 
VWa Una Fd: - 
Bond 1255 NL 
Cantor uk ML 
Corn U48 ML 
Fund V354 NL 
incom *12 
LwOt 2050 
Munad 1X53 . _ 
Sot SIT 122* NL 
Van Konamn: I 
InTXF UJS 1*S 

TXFrM 147415W 

USGvt 159* l*n 
VuRto Fr n*Ttiti‘ r 
gSex ^S NL 

DB*I 47471 NL 

'sszm*- 


nx 




Ffesex GUI 
SoeFW *034 N|. 
Vtmsuonl Group: , 
En*- M NL 
fnill 284) NL 
Gamftt E8 nL 
Mem MJ3 NL 

KS3- S 

ootvl 173* NL 

QOtoll.XtV Nt 
OOVIII 235* NL 
STAS BMweSS , 
TCIdt fi.99:- W. 
TOJaa 3*74 NL 

GNMA VM 

HIYB6 070 ._ 

'm-JBL st- 

• fndTr 23.97 ft 
MuHY TUO . M? 
Mut ft? -TIJB N. 
MuLa IBM iff 
Mints 1071 ML 
MuSM 152* IS. 

vsPGdxn w. 

VSPTcnn Nt 
WWW U40 «- 

239 NL 

gg ffiUf 

■IIHV MraVTlA 


WhmiHI 

WUM 229 


NYVtn 

RWM7E 
KPFEdlU „ 

men 1149 ix] 

WPG 2347 , 

WStant 1X3* U 

Wood Strottwrc- 

daVao U4S 

JF-W 

WrtdTr 943 ' 
YtaFd ZfS 

NL •“.... 

toad thorartl 

quota, r- UrttiySp 
dtaroo mayam*y,| 











A Monthly Report for the International Investor 


INVESTING 


-CX iESS 

■*■«* Xr 
cri 



,vmet fc 

s#d 



H? mh 




Current wisdom: 

■ Recovery of the 
dollar will not 

be allowed/ 


John R. Hardy of 
Chemi cal Bank. 
Reports on currencies 
and options. Page 4 



Minus inflation, 
'you’re not going 
to get a booming 
rally’ in gold. 


Fred Bogart of 
Republic National 
Bank. The outlook for 
precious metals 
on Page 5 



Harry Schultz, ■ 
international Investor 
and adviser. A profile 
on Page 6 


Funds in Europe: 
Cautious Decontrol 


T HE collapse in 1970 of Bernard Comfekfs 
Investors Oversea Services fund empire has 
always represented a watershed for the food 
industry. Before the IOS collapse, investors 
in Europe "had to look out for themselves,” with 
unfortunate consequences, said one European Cora- 
nnmity official. After the scandal broke, member 
amines tightened protection far investors and, in the 
process, helped to create barriers that have kept the 


Not surprisingly, 1970 was also the year that EC 
officials first took up die idea of establishing roles for 
the sale, of fund shares. Fifteen years later, they finally 
established sane guidelines to make it easier for a fund 
authorized in one member country to sell its shares to 
ritiwaw of another member country. Although it may 
be some time before a West Geonan investor will find 
h as easy to purchase shares in a British fund as in a 
German one, die gmdefines have definitely altered the 
inks of the fond business in Europe. 

The liberalization “should quite definitely have dra- 
matic results,” said Denis Forthomme, a member erf 
the board of the Belgian Mutual Funds Association. 
The combined assets of the fund groups in 

Brigmm, Britain, France, Italy and West Germany 
have soared to $135 biffion, booyed by recent spectac- 
ular fund growth in Italy and France; 


T HERE is an incredibly large scope for seD- 
ing," Mr. Fortbomme observed, “but it’s 
going to be an enormous challenge'’ to con- 
struct a Europe-wide market- 
la one respect, fund groups are understandably 
cautious about wedfcting the results erf the new guides 
Kne^ which wul establish common rules allowing a 
group that is approved by one member nation to sdl 
shares in all the other member countries. The guide' 
lines, known collectively in community parlance as a 
coordinating directive, set a deadline for the changes 
of Oct. 1, 1989, for most countries. 

“We’re taking this thing slowly," said Stuart G3- 
martm, European investment manager of the British 
group Garttuore. The group’s cautious attitude is per- 
haps due to the diversity of Europe's national nmd 
markets. Bach has its own traditions and marketing 
regulations that w31 complicate cross-border sales, 
even after the new guidelines take effect, fund group 
directors said. 

The EC Council of Ministers began debating the 
liberalization proposal almost 10 years ago, but it took 
the impending entry of Spain and Portugal tins Janu- 
ary, British government pressure and the zeal of the 
new executive Commission, to prod nmristexs to take 
action last month. 

Mimaere realized that if they waited any longer, the 
(Coutimed on Page 14) 


The Rally in Europe Shows Its Staying Power 


By John Meehan 


G* 

floor of the 


; Fftmkfun 

uNTER. BurgoW is abusyman these days. 
As a senior trader for BHF-Bank, the West 
Goman merchant bank, he is a picture of 
perpetual motion as he glides around the 


floor of the Frankfurt Stock Exchange, ans we rin g 

^S^hnge dectromc tote boa^tiat 
exchange. Every week he squeezes a mile or two into 
the mate 20 feet that separate his small cramped office 
on the edge of the trading Boor from the MarUmdi- 
make, the rectangular dene in the center of the market 
where specialists execute orders. 

“I wouldn’t say that was the busiest I have been, but 
we haven't seen that land of activity in a loog time,” 
Mr. Burgold,avetcanaf27 years an the trading floor, 
said of the June through October period. “I couldn't 
even get away for vacation. I couldn’t afford to be 
away from my desk." 

In many ways, Mr. Bargold's hectic weak schedule 
reflects a profound switch, in investment strategy in 
the past year. Although equity markets arotmntbe 
'globe ewrtwwM to touoi record hi g h*, die ro- 
mance with the Tokyo market and uncertainty about 
prospects in the Umtod States have translated into an 
unexpec te dly big boom for markets in con tine n tal 
Europe. The Frankfort and 7mWi exchanges, whose 
prices moved at a glacial pace through most of the 
1970s and eariy 1980s, suddenly find themselves in the 
ti-mriight, ranting among the wold’s top per forming 
markets in 198S. Even the tiny Milan marke t, shunned 


‘.w&t^Uetrti .ini t 



far years by global investors because of its thinness 
and volatility, hire brightened its itfla gf thank* to an 
influx of foreign funds. 

The big question on the minds of many portfolio 
strategists is bow long the European rallies wifi contin- 
ue; The Frankfurter ATIgemrinc Zdtnng index of 100 
leading West German stocks languished from 1967 


After the Surge, 
Caution Sets In 


The three-year-old bull market sur- 
prised most investors with its stamina tins 
fall, when the Dow Jones industrial aver- 
age topped 1,400 and continued to gallop 
to new highs almost daily. But most ana- 
lysts expect the market to run out of steam 
eariy next year, perhaps correcting itself 
by 10 or even IS pocenL If, as most 
experts expect, next year's growth is con- 
centrated m tbe latter part of the year, the 
ball might not come rack until the second 
half. 

“You have to discount the managum 
who say its going to be a fantastic year,” 
said C. Bruce Johnstone, portfolio manag- 
er of Hdefity’s Equity-Income Fried. 
“We’re not looking for that" . . 

Canticcis. understandable. Equity vat . 
dcs have so far-risdtf mere than 2B percent 
in a year when corporate earnings are 
expected to finish -flat or, at best, up5 
percent “That’s a tough act to foBow," 
said Abby Cohen, an mvestmon strategist 


at Drexel Burnham InmboL She and oth- 
ers attribute the unusual rise in part to the 
growing cash reserves chasing a decreasing 
supply of issues. List year, mergers and 
stock repurchases took $70 bufion in 
shares out of the market Another $104 
bflHon have been tiphened off so far this 
year. 

There has not been a corresponding 
drop in demand. Institutional investors, 
some manag in g ballooning pensions 
funds, wwiinne to funnel their assets m*o 
die stock and band markets, encomaged 

ty" krw inflation that have maJTaftoma- 
tives such as real estate and precious met- 
als rdativdy less attractive. Strong foreign 
demand has also helped to buoy prices. 

But the boll’s strength must be men* 
sored a g»m«* a backdrop of maeasin^y 
complex factors affecting the economy. 
The federal budget deficit has i nu monad 
U.S. refiance cat the strength of foreign 
econonries^Cansomer and corporate debt 
levels also have readied u np recedented 
highs, leading many experts to wander if 
further recovery can be sustained. “These 
fundamental excesses will b egin to bite" 
eariy next year, warned Steven G. Bn- 





Trade Frictions 
Pressure Market 


It is traditional tor the Tokyo stock 
exchange to stage a year-end rally and 
dose cm as optimistic note, s om et hing 
market watchers fully expect to occur 
again this month. But the surge, if it 
comes, will hardly camouflage what has 
been a bumpy, unfocused year. The hfik- 
kra-Dow Jones index of 225 stocks moved 
m fits and starts, briefly breaking a record 
13,000 but also taking its steepest plunge 
in history. 

Blue-chip and high-technology issues 
that once reeled the nunket bottomed out 
Airing the mnwner, dnSed by UJS. trade 

For months the market has cast about 
nnsoccess fally fw * significant- thame, dip- 
ping into a series of such domestic-related 
areas as construction, real estate and de- 
fense. Since the start of the year, the index 
has advanced just over 10 percent, a tepid 
performance in face of previous annual 
gam* and the brisk ralbes in Europe and 
the United States. 

Most market observers expect more of 
the same in the first half of 1986 — plenty 
of turbulence and no dominant theme 
Shading the picture are predictions of a 
further U.S. economic slwdown, a dip in 
Japanese corporate earnings and fears that 



A Japanese pharmacy. Drug 
shares have been jotted. 

Japan's economic growth will fall to 
around 3 percent or less in fiscal 1986, 
down from this year's anticipated 4 per- 
cent. Moreover, analysts suspect the yen 
will be maintained at around 200 to the 
dollar, defusing trade friction somewhat, 
but also slowing exports. Interest rates are 
expected to fall in the first half, but will 
likdy be kept snffidenily high to support 
theyeo- 

Wbat A m o km the marfrat wQl take in 
the second half is where opinions begin to 
diverge. Some, Kke Alrio Kobno, chief 
economist alDaiwa Securities, think the 
market will strengthen sometime in the 
spring and continue fairly strong through 
the year, riding on expectations of a recov- 
ery m blue chips,' new go vernment policies 

to stimulate domestic demand, weak cal 
(CoBtimed on Page 13) 



No Shortage 
Of Confidence 


The financial Trines all-share index has 
advanced 13 percent since September, and 
the average price-earnings multiple on the 
London Stock Exchange is approaching 
K but Keith Brown, head of equity re- 
search at W. GreenwdJ & Co. in Loudon 
ttCs i nv e s tors not towony. *Tt might s e em 
like the market is at a turning print,” he 
said. “Bat it’s not" 

Strong corporate profits anti rising divi- 
dends, he argues, win likely sustain die 
autumn rally on the London Stock Ex- 
change through next year as the market 
experiences the “Big Bang" of deregula- 
tion and prepares itself fra a national 
election in 1987. Kenneth Ingiis, head of 

S research at Phillips & Drew, agrees, 
t now the market feds somewhat 
mghL But that doesn’t mean it 
won’t be higher a year hence." 

Few analysts expect British stocks to 
duplicate 1985*5 performance next year. 


L 



Prime Minister Thatcher. 
Investors ponder elections. 

Eanrinp rose about 15 percent this year 
♦bants to a soSd economic growth rate of 
about 3Kpexcent and strong consumer 
demand The market abo recovcd a boost 
from wefl-pobBdzed takeovers and the 
Muaring speculation about passible tar- 
gets. But the outlook is upbeat With the 


ret Thatcher faring probable elections in 
1987, analysts are confident that the gov- 
ernment will pursue its rogd expansi on ary 

(Continued on Page 12) 



until 1982 when markets began to stir in response to 
WaD Street's legend a ry performance. It 

dosed out November at 38332, op almost 60 percent 
from a year ago. 

Mr. Burgrid said a brand new dimension has been 
introduced to the 1986 market with Deutsche Bank’s 
surprise wmnm iBBwwn that it would most of the 


I 77 * 7 r 7 r 


Flick industrial empire, valued at over 5 billion DM 
($1.9 biDkn), on West Goman stock exchanges next 
year. He said it was too eariy to evaluate the impact of 
what will be West Germany’s largest share offering. 

“In keeping with pattern we've seen over past year, 
it appears British and UJS. institutional investors had 
closed out most of their investment activity by eariy 
November, accounting for the sharp drop in trading 
volume in November from record figures reached 
during the summer," Mr. Borgrid added. “I expect 
heavy institutional investor activity will be taken up 
toward tbe end of January, with professional opera- 
tors out of London and the U.S. taking the lead.” 

As investors restructure their portfolios fra 1986, 
concern over the vitality of the E ur o pean markets has 
replaced the broader themes that occupied investors 
through most of 1985. The debate over tbe slowdown 
in U.S. economic growth and its side effects on the rest 
of the world has substantially subsided. Even fear <rf 
the h«j faded. 

Roger Nightingale, chief economist at Hoars Go- 
vet* in London, sees the Sept. 22 meeting of the Group 
of Five finance ministers as a turning point that 
reshaped tbe environment for investors. Although 
most global investors had been trimming their dollar 
exposure for some time in anticipation of a significant 
drop in the U.S. currency, tbe public announcement 
that governments of the United States, Japan, France, 
Britain and West Germany would cooperate to arrest 
the dollar’s ascent removed a lot of the guesswork. 
“The investment dimale changed totally because of 

(Continued cm Page 12) 


Steven Einhom of 
Goldman Sachs. 

bran, 00 -chairman of Goldman Sadi's in- 
vestment policy committee. 

Few economists predict more than 
modest growth next year. Gross national 
product in the first half of 1986 will likely 
increase at a slower pace than the 23- 
percent average fra 1985. Activity proba- 
bly will not p i^k np significantly until mid- 
year, when the benefits of the Group of 

(Continued on Page 13) 


An Emphasis 
On Blue Chips 

Tbe steady gains on continental bourses 
may have poshed prices of popular shares 
to historic levds, but portfolio strategists 
are Mniiming hopeful ba rgain limi ters 

about taming to lesser-known stocks. 
With many of the smaller stocks lacking 
sufficient liquidity, analysts continue to 
recommend tbe bine-drips for eariy 1986. 

Indeed, tbe investment themes remain 
unchanged. The only significant develop- 
ment involves Milan, where hectic buying 
has given way to caution on the part erf 
many portfolio managers. Foreigners 
flooded the narrow market with cash earli- 
er this year in response to the mneiiiming 
of twntimi funds in Italy. The Bum Com- 
merdale index has doubled in the past 
year, and some fund managers are taking 
their profits. 

In Frankfurt, Memhard Carsiensen, 
deputy manag in g director at Dresdner 



A Daimler-Benz worker 
at a plant in Bremen. 

Bank, continues to favor financial ser- 
vices. “Bank stocks still look good," he 
said. “The banks are making a lot of mon- 
ey this year." With Deutsche Bank, 
Dresdner Bank and Commerzbank ex- 
pected to post record profits this year, all 
three top the buy lists erf most analysts. 

Big industrial companies remain popu- 
lar. especially Siemens. Auto companies 

(Continued on Page 13) 




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Page 12 


INTERNATIONAL HKBATJ) TRIBUNE, MONDAY, DECEMBER 9, 1985 


Value Line Outlook: A More Tranquil Currency Environment 


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(Coatinued From Page 11) 
G-5,” Mr. Nightingale said. “I 
wouldn't be surprised if all mar- 
kets act new highs.” 

With a degree of safety against a 
resurgence or a sudden collapse in 
the U.S. currency, investors find 
themselves in a more predictable, 
if not yet tranquil, currency envi- 
ronment. The dollar’s 25-percent 
drop in value since Jan. 1 has 
failed to generate any turmoil 
within the European Monetary 
System. Conventional wisdom 
hdd that as the dollar descended, 
the stronger EMS currendas, like 
the Deutsche mark, would rise so 
quickly as to force another re- 
alignment- Bat with inflation 
down, interest rates down and def- 
icits dpriimTip among .European 
countries, there has been little of 
the tradhioiial pressure for a read- 
justment m polities. 

More importantly, however, the 
G-5 meeting represented a tadt 
acknowledgment from Washing- 
ton, Tokyo and European capitals 

that they would erwitinne to pur- 
sue a more lenient monetary po- 
licy, nurturing economic growth at 
modest levels while bringing inter- 
est rates down another notch or 
more. Nigel Hurst-Brown, who 
manage* fixed-inDome portfolios 
for Hm fiamnri in London, thinW 
U-S- rates will drop another 100 
baas paints, or one percent. “We 
will see it sooner rather than lat- 
er,” said Mr. Hnrst-Brown. “One 
isn’t given such indication very 
often on where to make money.” 

Although in the Rea- 

gan administration have privately 
criticized Beam’s |»a of »«l in 
pursuing a mild reflation, it is 
dear that most governments are 


Total Return: Stocks Outrun Bonds 

Total return measures both the changes in the prices of securities and the income they provide, 
either in dividends or interest Gains or losses were measured by comparing market indexes 
with their levels a year earlier. The chart doeaoot take into account taxes or Inflation. 


Stocks 

. ^ 








I Total return for 1 2 months ended 
I October in local currency * 


Total return for 1 2 months ended 
October In dollar terms 


8ourttt 8mmlonL ComiclUM. Bond inttaxM v* proprietary. Equity indexes ara from Caprta) Interna fooal 


«Mtng their restraints, aheddfng 
some of the monetarist pdides 
that have been their mainstays 
gnnft^thc mWms mflnttan d«y» nf 

the late 1970s and early 1980s. 
"Everyone in die world seems to 
be accelerating money growth,” 
Mr. Nightingale said. 

With the recurring tear of an- 
other recession again postponed, 
U.S. economic growth, same econ- 
omists befieve, could he as low 1 


• ; . • V 


percent to 2 percent in the first 
half at 1986. A quicker pace is 
foreseen in die second half with 
growth for the year possibly 
climbing to about 3 percent com- 
pared with about 15 percent this 
year. Steadier growth is expected 
in Europe and the Far East. West 


is forecast to grow at an inflation- 
adjusted rate of Z5 percent to 3 
percent in 1986; Japan's growth 


win likely average about 3 percent 
to 4 percent. 

How tang the cement environ- 
ment will last remains uncertain. 
Mr. Nightingale echoes other ex- 
perts wfaca he wants that the huge 
debt load that has been accumu- 
lated by governments, corpora- 
tions and indrvidnak could even- 
tually spell trouble as econo m ic 
growth s laeVens. Hie bulging 
trade deficit in die United States 



. _ f ' • ... • . • . . - • •*».• 
• — ... .. . . : . 


also continues to cloud the hori- 
zon. Congress, be fears, may piece 
together some deTidi-rcducmg 
legislation toward the end of 1986 
that will include protectionist 
measures. 

Nevertheless, the climate in the 
near term seems more predictable 
than it has in a long rime. “Unfor- 
tunately, when tilings are more pre- 
dictable, it’s more difficult to make 
money," said Bernard Rattray, a 
director at American Express Asset 
Management in London. “The 
game is to beoome more inventive 
in picking stocks and markets to 
make money." 

Despite the exhaustive pace of 
equity markets in Europe, most 
global portfolio managers are bet- 
ting on further gawic and remain 
overweighted Ln continental 
bourses and somewhat under- 
weighted m the United Stales and 
Japan. “The ball markets in Eu- 
rope are relatively recent if yon 
take the long-term per sp e cti ve,” 
Mr. Rattray mid. "And you could 
say they are substantially un- 
dervalued." 


ipTiTiLi 


£acb record high in Frankfurt. • 
Zurich and Amsterdam can btf . ^ 
measured in degrees <rf anxiety. 
about a possible correction, but an-' 
alysts are hunting the downside 
risk. One reason is that European 
stocks remain relatively cheap 
thanks to robust company profits. 

In Frankfurt, for example, the av- 
erage price-earnings multiple 
edged up to 12 frdarlO thanks to a 
20-pereeat surge in corporate prof- 
its this year. Dutch stocks, mean- 
while are selling at about 9Vz times, 
ea r nin g s after a 14-percent gain in 
corporate profits this year. 

No one suggests, however, that' 
the European markets will dupli- 
cate their 1985 performance next ip- 
year. Corporate earnings in Eu- 
rope likely will slow. Commerz- 
bank bank, for example, predicts 1 
only a S-perceru growth in earn- 
ings for West German companies- 
in 1986. Kees van Dales, head of 
equity research at Algemene Bank 
Nederland in Amsterdam foresees - 
the growth in Dutch earnings at 19 
percent to 12 percent, still healthy 
but down slightly from 1985. 

Portfolio strategists are decid- 
edly less enthusiastic about U.S. 
stocks. As the boll market winds 
up its third year, analysts are more 
inclined to characterize it as fa-.- 
tigued rather than mature, even - 
though the New York Stock Ex-. 
chang e continues to set records. J| 
With economic growth slowing. m 
the dollar descending and con.-', 
sumer spending declining, the.' 
short-term outlook is less buoyant' 
than it was six months ago. 

Caution also is prevalent among* 
money managers when talking- 
about Japan. A stunning showing. 1 
in 1983 and 1984 has propelled' 
price-earning multiples oo the To- 
kyo Slock Exchange to a lofty av- 1 
erageof 26. Moreover, after stunh 
bling last year in response icr 
slower US. growth and rumblings' 7 
in Washington about protection 1 - ■ 
ism, Tokyo remains a market of 
rotating themes, none of which ' 
have demonstrated any staying ; 
power. John Templeton, who" 
oversees 54 bQHon in the Templo-L 
ton Group of Mutual Funds from jp 

his base in the Bahamas, once had. 

50 percent of his assets in Japan.- 
Today, he said, “I own practically 
nothing." ‘ 

Q- 



g-V*” '•'% . ; . - 

' • -• ■»,- : • • > A 5 * V 

[ • r / , '• ’*• * 


% 







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* - : 






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m 


Rosy Views 
On Profits 


(Continued From Page 11) 
paficfesT especially now that ster- 
ling has improved against the dol- 
lar. 

‘The government will ride the 
consumer tiger right to the elec- 
tions," Mr. Ingtis said. He sees a r 
10-percent increase in corporate 
prefits in 1986, which will allow a 
similar tire in dividends, Mr. 
Brown at Greenwefl also flunks 
e arning s wQl rise 10 percent as the 
economy grows at a comfortable 
rate of percent next year. This, 
he says, will force price-earnings 
multiples back to a more attractive 
average of 12Wt in 1986. 

Another major impact on the 
1986 market wfll be a further wave 
of privatization of government- 
owned industries. By for the most 
significant will be the sale of Brit- 
ish Gas, which will take about £10 
bflHo n ($14.8 billion) of funds 
from the market over two years. 

Mark Cliff of Capel Cure Myers 


believes that fears of the impact of 
privatization on equity sales may 
prove to be exaggerated. "Down- 
ward pressure may be relieved m 
several ways,” he said. “Discount 
pricing and heavy marketing of 
each floatation wiQ lead to a great- 
er proportion being taken up by 
the personal and overseas, sec- 
tors. Moreover.' he says the tax 
cuts paid for by privatization wfll 
benefit institutional cash flow, al- 
lowing more funds for investment 

Michael Hughes, an analyst at- 
De Zoete & Bevan, sees electricals 
as next year's recovery sector," 
“Once GEC moves, then the 
whole sector will go." he" said. 
Among electricals, Mr. Brown.' 
likes Ferranti. He also recom- 
mends Lloyd Bank. 

Mr. Ingfcs of Phillips & Drew 
looks to the consumer sector. With, 
proposals to expand the hours that 
pubs can remain open, he recoin-’ 
mends breweries nke Whitbread. 
He also favors what he calls 
“Deutsche mark sensitive" stocks 
that will see earning* rise as ster- ' 
ling loses ground against the West 
Goman currency. He says ICT 
and GKN are two examples. □ ’ 


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JKTEKNA'nONAI, HERALD TRIBUNE, MONDAY, DECEMBER 9, 1985 

IMBEP 

Page 13 

TT 1 

. V :i 

■ T*T *WT R 1 m *■ 1 




erwe: 



ew York and Tokyo 


' i , 9r " 

;jfc . i -L 


?*£* • 


5si 

~*«L ! 

^35 

v4‘ 

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; -^j*. 

■ , __ ■* *s 
y. 


? A Tough Act 
To Follow’ 


•Hie doflarY recent fa B- has 
made imtitmational companies an 
overwhelming favorite among 




*-r ^ 

•-••fa i- 

; i . ' ' 
VI'S 


; (Contfmwl FroniPage il) 
Five's efforts to drive down the 
dollar begin to take effect At that 
time, growth coold titan annual 
npe oT3 perron liy nextsummer, 
posaMjr setting the stage for an- 
cffw^mariotrSfy. 

. Analysts uniformly stress that 
thfitr forecasts would lose iimch of' 
tbeir rosy gtowif several baric as- 
sumptions do not prove correct 
Rat, the dollar must drop farther 
and stay down. Second, the Feder- 
al Reserve Board must maintain 
its recent accommodative stance. 
Paul A. Volker, the chairman who 
has battled inflation throughout 
his career, has pleased investors by 
allowing the money supply to out- 
strip this year's targets, presum- 
ably to assist the fall of the dollar 
and interest rates. If the Fed be- 
comes ■l ynngrf again about infla- 
tion and tighten! monetary policy, 
however, growth may be farther 
stymied. 

Bat despite what might be 
called a consensus an the pros- 
pects for long-term growth, cu- 
tioa prevails m the short term. “I 
wouldn’t be surprised if I were 

iwen mmentrmg sdfing Stocks and 
raising cash three month* from 
now,’*' said Mr. Emhom of Gold- 
man Sadis. Last month. Dread 
Burnham began. advising its cli- 
ents to decrease tbdr share hold- 
ings by 20 percent. And many in- 
vestors who had previously 
emphasized sectors and cycles are 
adopting, a “bottom-op,” or cran- 
pany-by-company approach. 


that derive a subs tantial amount 
of their profits from foreign activi- 
ties —IBM, Coca Col&a&d East? 
man: Kodak — are expected to 
reaEze greater profits as they 
translate tlwir ahcpaH 

into ddlars. Fred Fraeokd, an an- 
alyst with Prudential Bache, fa-' 
vors Gillette and CPC Interna- 
tional 

Analysts are divided over 
. whether short-term interest rates 
win fall or remain steady before 
they rise next year. Those who 
predict another drop are empha* 
siring interest-sensitive stocks 

■q y n b as re gional twn^ insmaoce- 
• fl rtm p n ni«t | savings amt Irum^ unit 

brokerage booses. Mr. Fraenkd 
recommends Fist Executive and 
Continental Insurance companies^ 
First Union Bank of North Caroli- 
na, and financial service firm* 
Dreyfus; Paine -Webber, and 
Quick ft Redly. T. Rowe Price's 
chfcf economist, Ben Laden, who 
expects interest rates to hold tight 
before rising, predicts that hous- 
ing and construction sectors wffl 
be hurt most seriously. 

Restructured companies have 
become mcreasmgfy attractive to 
investors looking for alternatives 
in a low-growth environment. Mr. 
Johnstone of Fidelity favors Ford 
and Chrysler, both of which have 
engaged in aggressive stock-repnr- 
chase plans. 

Fra: the longer term, analysts 
who expect a resurgence in eco- 
nomic growth during the second 
half of 1986 are again looking at 
cyclical stocks such as machinery 
companies, industrial comnxxf- 




~ iSBSKL' 





Mw 


i ■ Jag 

... 




Workers at d Ford Motor Co. plant in Ypsilanti, 
Michigan, showing the profit-sharing checks awarded . 
to them earlier this year. Ford is restructuring through a 
stock-repurchase plan. 


ities, papers and chemicals. Mi- 
chad Shaman, chief investment 
strategist for Shearson Lehman 
Broa, lists Coming Glass Works, 
National Gypsum and Collins ft 
Aikman. Mr. Einhom recom- 
mends American Cyananrid. 

Some analysts also are taking a 
second look at sectors that have 
long beat out of favor with inves-' 
tors. Mr. Emhom and others ex- 
pect a turnaround from nnaH-cap- 
ti a lization co m panies, which have 
underoeriarmed for the last two 
yean. Mbs. Cohen prefers oil com- 
panies because of their ability to 


generate cash. She consider Roy- 
al Dutch and Soldo to be good 
values. Byron Wien erf Morgan 
Stanley suggests wmwi ning od— 
service stocks. 

But Mrs. Cohen notes that bar- 
gams are rare in the current mar- 
ket, where stocks have risen from 
an avenge prioe of 8 times project- 
ed earnings in 198S to 11 times 
earnings forecasts. “How much 
higher can they go?” she ado. 
“Consensus ***""««** for next 

year are already b nilt tnfn tint mar - 

ket,** she added. “It's time to start 
looking to 1987." ■ □ 



Banks Top 
German Lists 

(Confined from Page 11) 
like Volkswagen r wimW . 
Bcnz and the leading 
firms —BASF, Hoechst and Bay- 
er — also are favored. 

“These bigger co mpanies have 
grown as fast as the smalle r ones,” 
said an analyst at another major 
West German bank. “Their multi- 
ples are still att r act i ve." 

Analysts, however, are less ex- 
cited about some of the new issues 
that capt ure d the attention of in- 
. restore earlier this year._Nredorf > 
the computer maker, is setting at 
twice the market m tilii^fc 

Investors are pursuing a similar 
strategy in Switzerland. The Swiss 
Bank Crap, index dosed Friday at 
387.4, up 43 percent from the start . 
of the year. 

Among Zurich analysts, the 
consensus is that the lnghs have 
not yet been reached. Most ex- 
perts expect the Zurich market to 
add 10 percent or IS percent in 
value within the next three to six 
months, an increase Hedy to send 
the Swiss Bank Cocp- index com- 
fortably above the 600 mark. 

The reason fra optimism is root- 


SIEMEHS 

Weafcfy shara price In 
Deutsche marks 


700 



Sept. Oct. . Nov. 
Source: Datastream 


ed in the conviction that the al- 
ready flourishing Swiss economy 
will strengthen even farther in the 
early part of 1986. Company earn- 
ings, which were exoeflent in 1985, 
are expected to increase by IS per- 
cent to 25 percent in 1986. 

Foreign investors should be 
aware, however, that they cannot 
hope to find a hidden bargain or 
unnoticed laggard on die Zurich 
Stock Exchange. The market is too 
small to allow for hiding places. 
But analysts point to a few shares 
th at have ri jen less than the indi- 
ces or hold special promise for 
above-average gains in 1986. 


Two famed Swiss names that 
. have underperformed are the 
drug-making wwown Hafiman- 
La Roche, and the eng in e erin g 
and machiner y company, BBC 
Brown, Borerift Co. Hoffman-La 
Roche's stock: has trailed the mar- 
ket by 20 percent for die past six 
months, but the company is very 
healthy iMmuing oyh huge 
ami* to n y« n* that the shares 
may be posed, in the opinion of 
same analysts, to catch up with the 
market Brown, Bovcri, a highly 

w prAH wigmuHing rntfh J it re- 
garded by some analysts as die 
lowest-priced Swiss high-technol- 
ogy company. 

Potential big w me r t include all 
; five of tibe largest hank* — Union 
Bank <rf Switzerland, Swiss Bank 
Corp-* Grfcdit Suisse, Bank Leu, 
and Swiss VoDrefcank. 

In Amsterdam, analysts are 

mnfiito it timt «hw im n kn t will mn. 

firme its advance in the first quar- 
tet Food shares Hke Urriksvtr and 
Hrindten, which are benefiting 
from strong export e arnin g s , con- 
tinue to rale a boy from most 
observers. Philips, the giant elec- 
tronics groups, and Royal Dutch 
Petroleum afeo arc recommended. 
Meanwhile, Stephen Butt, bead of 
Morgan Stanley Asset Manage- 
ment in London, think* it is rime 
to look at the depressed sectors as 


wdL He likes NedHoyd and Van 
Ommeren, two Dutch shipping 
com 


1 van. 

research at Algemene Bank Ne- 
rferiand mum* that the market 


I April ahead of the May gener- 
al ejections. 


T HE center-right gov- 
ernment, whose policies 
have favored the corpo- 
rate sector, is facing a 
strong challenge frcan a center-left 
coalition. Public opinion polls 
show that the Qmstian-Demo- 
cratic-Liberal coalition could lose 
its majority if elections were held 
now. 

Elections also loam in France; 
where the center-right parties are 
'expected to replace the Socialist 
majority in legislative balloting in 
March. John A. Lindsay, who 
tracks continental European mar- 
kets far Phillips ft Drew, said he 
expects the p roject e d outcome to 
be a positive signal for the Paris 
bourse, which has flourished un- 
der Socialist rule. Analysts recom- 
mend export-oriented companies, 
like Mott Hennessey, Pemer and 
BSN. Others are giving high marks 
to Peugeot and Mtcbdin as long- 
er-term buys. □ 


Look what the 
managed currency 





21 - 8 % 

growth every year 


gum ' 

1HTHE frve-and-a-half 
y^ars since launch, the 
Guinness Mahon 
International Managed 
Currency Fund has 
produced a sterling return 
qf 196.2 - an average 
Annual return <rf 21.8%. 
lb volatile markets this 
espertly invested ‘basket’ of 
leading currencies has 
amarsteafJy met the aims of 
the Fund’s managers - 
Wng-term capital and 
ihcoue growth. 



G«ia&css Mlhon Fund M aaa g er* (Guernsey) Limited, P.O. Box I8S, 
La^ VkSk Cdur , St. Peter Pott, Guernsey, Charnel Islands. 

Or telephoae (0481) 23506 exreasim 231 or tckx^ 4191482 GUIMAC G 

Plmx *W me a pmspcrtuxinn the sole baxturf which 
invmment mav «■ model and an appJcrahoa (arm. 


Guinness Mahon pioneered 
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1980. 

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allows it to pay all returns to 
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according to a recent survey 
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management charges - just 
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/ . .-V s -yJv-.L, ' ! -V 


Turibulence 

MayContiime 

(Continued From Page 11) 

prim s atvt ehgngwe in lha ri nnwa ir 

consumer pattern. 

“The Japanese economic situa- 
tion wiB get worse before it im- 
proves. fat the recovery should 
crane in the yeafs second half , not 
in 1987 as previously thought,” 
«id Mr. Kohno, g^railnring tint 
the dollar’s decline win improve 
die outlook for U.S. econonric 
growth. Others are less confident, 
predicting a open-ended period of 
uncertainty. “We don’t expect 
stocks to perform aO that well next 
year," said one foreign analyst 

Not surprisingly, the remit of 
these divergent views is a varied 
awH «n m » rii«M cooitsdictafy ros- 
ter of sttategin and recommenda- 
tions far 1986. Some investors are 
staying with domestic-related is- 
sues. Picks tw| ^ to be in higb- 

Iwjin ftUgy otww B ffh i Iff 

mnni cations, optical 

lY i ir imn niratifint imri Other KCUSS 

not overiy dependent on exports. 

Many money managers are 
maintaining a highl y diversified 
portfolio, hoping that careful 
share rotation is the best insurance 
until the market develops direc- 
tion. Returns are minima] using 
.this strategy, but Tetsuhiro 
Myake, head of hnwrinrional re- 
search for Nomura Securities, says 
“it is difficult to focus on any 
specific area and topic stocks wiB 
. otwithme to rotate.” 

Still others think Woe dims will 

finally malrf. a mwdwf k fat CS- 

veats tike protectionism, the 
blurred economic future in the 
.United Stales, the stronger yen 
and downward earnings projec- 
tions are making choices more 
complex. Mr. Kohno foresees a 
recovery in big high-tech isroes 
preceding the expected second- 
naif upswing in the U-S. economy. 
He thinks companies like NEC, 
Fujitsu, Hitachi, Toshiba and 
Matsuraita will be even more resil- 
ient than before. Strang enough, 
he maintains, to overcome the ill- 
effects of a robust yen. 

Hisamicbi Sawa, director of re- 
search at Prudential Barfr* in To- 
kyo, also favors the international- 
ly known issues, fat he offers 
some advice in this area. Choose 
shares with relatively low eroort 
exposure or with new products 
like facsimile machines, he says. 
His picks mfJndft Kokusai Elec- 
tric, Panne, Sumitomo Electric, 
Sony, Ricoh, Canon, NCR Japan 
and Fup Photo. 


The prospects of slower U.S. 
growth also weigh beavOv on the 
share market in Hong Kong de- 
spite its recent record pofoc- 
mance. With the colony’s heavy 
dependence on the Ui market 
for its exports, the slowdown in 
the United States has required a 

readjustment of official economic 

estimates for 198S and 
expectations for 1986. In 
his semiannual economic review, 
Financial Secretary Sr John H. 
Bremridge lowered bis forecast for 
gross domestic product from 7 
percent to between 45 percent 
and 5 pe rce nt. 

A second worry is the political 
outlook for Hong Koog, which re- 
verts to Chinese sovereignty in 
1997. For the most part, the politi- 
cal factor had retreated noticeably 
to the back of institutional inves- 
tors’ minds, and the surge of trad- 
ing activity in the last two months 
was largely led by institutions. 

G ENERAL confidence 
was jolted last month, 
however, by reports 
that China was upset 
about Britain's introduction of in- 
direct elections for the local legis- 
lature. The reports raised concern 
that China would not honor its 
pledge not to interfere in Hong 
Kong’s civil «mrf eommadal free- 
doms during transition p«in<l 
to 1997 and! dr 50 years thereafter. 
The stock marirt^ which aome 
brokers argae was due for a tech- 
nical correction anyway, plum- 
meted 49.69 points in only one day 
after the reports surfaced. 

StiE, _“at an av erage price-eam- 

in 1986, you can’t call tins market 
cheap," Shane N orman, assis- 
tant director at NJML Rothschild 
ft Sons. “It all comes down to a 
iwirwimi* fa ctor, «nd on that, the 
jury is still out" 

Sector by sectoc, the outlook is 
Hkdy to be erratic during 1986. In 
the property sector, which ac- 
counts for about one- third of the 
weighting of the Hang Seng index, 
analysts favor Hongkong Land, 
Sun Hung Kai Properties, Hen- 
derson Land, New World Devel- 
opment and Hutchison Wham- 
poa. Selected industrials also are 
worth watching in 1986, analysts 
say. □ 


This report on the outlook for 
world markets is based on report- 
ing by Cohn Chapman in Lon- 
don, David Tuutin in Zurich, 
Terry Trucco in Tokyo, Dinah 
Lee in Hong Kang and Leslie 
Whitaker in New York. 




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Return this coupon ta 
Merrill Lynch, Pierce, Fenner & Smith, Ltd., 
Attn: WS. Elliot, 26 Finsbury Square, 
London EC2A 1AQ, United Kingdom 

Name 


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TfeL (Hornet 


TfeL (Business). 


AIHIXSW 


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©B85 MhtBI l^nch. Hera, Fenner fi SnHh tat MembrrSIPC 











like to know more 
about options? 






For professional advice cad us directly at the floor, 
or send your name and address to: 

SURE OPTIONS B.V„ Koopmansbeurs 

Damrak40a 

1012 LK Amsterdam, Holland 


%*z— 

I am interested in (free of charge): 

□ options brochure 

□ visiting the Exchange 

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our strength! 


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City/Code 
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Beyond the debt crisis- 

Latin 

America 

the next ten years. 





London, January 27-28,1986. 

The International Herald Tribune and 
inter-American Development Bank are 
resenting a major international conference 
inging together an outstanding group of 
financial, government and corporate leaders, 
to address the outlook for Latin America over 
the next ten years. 

For full details, please contact the 
International Herald Tribune conference 
office in Paris, 181 avenue Charlesde-Gaulle, 
92521 Neuilly Cedex, France. 

Telephone: 03.1) 47 47 16 86. 

Telex: 613 595. 


Using Options 
For Betting 
On the Dollar 

By HJ. Maidenberg 

New York 

F OR THE investor who is interested 

foreign exchange market, currency options 
afford a convenient way to take a position 
on whether the dollar will rise or fall within 

a certain period erf time. Given the uncertainty of the 
dollar’s future course, an investor who guesses cor- 
rectly can reap huge profits. Those who are wrong 
can lose their entire investment, but unlike the 
futures market, they will never be ax risk for more 
than they originally have put up, and that can be as 
litde as $1,000 or $2,000. 

Many options players, for example, doubled their 
money on Monday, Sept. 23, and have increased 
their profits since then. The reason: on Sunday, 
Sept. 22, the United States, Britain. France, West 
Germany and Japan agreed to work toward the 
reduction of the dollar’s value. Tbe next day, the 

ever, and^iThas f>een in a downward trod since. 
Those who made money had purchased call options 
on such currencies as the British pound, Japanese 
yen and Deutsche mark. In effect, they sod tbe 
dollar short by betting that the underlying foreign 
currencies would rise against the dollar. 

On the other hand, those who sold the call options 
on those foreign currencies in the belief that the 
dollar would remain strong or appreciate further 
lost heavily. 

An option gives tbe buyer the ri g ht , without any 
obligation, to buy (call) or sell (put) a certain 
amount of foreign currency at a specified “strike 
price” during a fixed period of time. The cost of the 
option is termed the premium, and it is determined 
through a c ontinuo us exchange auction process. 

Options are “written” by investors who do so 
simply to earn the premium. Because writing entails 
unlimi ted risk for limited profit, only the most 
experienced options traders should engage in this 
ride of the business. The same applies to the multi- 
tude of strategies that involve simultaneous pur- 
chase and writing of options, or combining options 
and futures. 

“The ordinary investors need only make a few 
decisions before investing in currency options, and 
the first one, obviously, is whether they think the 
dollar will rise or fail," said Alan C Levcnten, 
preodent of Twenty-Hrst Futures, a unit of Twenty- 
First Securities Carp, of New York. “The second 
decision is how long it wQl take for the dollar to 
perform as expected, what foreign currency should 
be used as a surrogate for the dollar and, finally, 
bow much to invest” 

Most omens expect the dollar to decline over the 
next year, but no one can say how far or how quickly 
it will faD. Those who judge correctly could be big 
winners in the currency options market because 
options are highly leveraged instruments, Mr. Le- 
venten noted. 

The behavior of tbe British pound is a prime 
example. When the March 1985 British poand con- 
tract expired, the underlying currency was wrath 
about $1.05. J t was worth $1.25 when the June 
option expired. And when tbe latest quarterly op- 
tion contract expired in September, the pound was 
at $1.45. 

Because the standard Brit&i pound options trad- 
ed on Chicago Mercantile and Chicago Board Op- 
tions exchanges consist of £25,000 ($37,000), each 
cent’s move by the pound raises or lowers the 
contract’s value by $250. Investors who prefer small- 



U.S. Treasury Secretary James Baker 
III flanked by the finance ministers of 
West Germany France, Britain and Ja- 
pan after their meeting in New York on 
Sept. 22. 


er foreign currency options can trade half-size con- 
tracts on the Philadelp hia Stock Exchange. 

How much money was actually made by those 
who had guessed right also depended on which of 
the quarterly options they had bought — March, 
June, September or December. The longer the con- 
tract, the higher tbe p re mi um because it gives the 
buyer more time for the option to produce a profit. 

Most individual investors need not be experts bn 
foreign exchange to have a fair chance to make 
profits, provided their brokers, like professional 
traders, nave access to computerized trading strate- 
gies. Computers can “crunch" volumes of complex 
mathematical data tn seconds, provide mmole-to- 
minute statis tical rieta and inrfiBite marke t trends. 

The other major factor in determining the premi- 
um cost is how dose the underlying currency is to 
the value specified in tbe option — m the jargon of 
the trade whether his at, in, or oat of the money. For 
ffltanmlR, mat that British pounds are tradmg at 
SI .45. An option .with a strike price atorvoy dose 
to $1.45 would be an “at-the-maney” contract 
Strike prices for c urren cy options are set as Various 
increments, dqteudmg cm the size of the contract 

Using the same example, a pound calLoption with 
a strike price of S1425 or less would be tenned “out- 
of-the-money,” while those trading at SL475 or 
mare would be “in-the-money” But an out-of-the- 
money option dom not imply that it will cany a less 
expensive premium or that an in-the-money con- 
tract will be cosdfcr. The premium dqxnds on 
which way the market consensus lean* 

Recently, for example, when tire pound was worth 
$1.40, the premium for an at-the-money December 
option on the Chicago Mercantile Exchange was 
4 JO cents per pound, or $1,075 per £25,000 con- 
tract. At tire same time, a December $L375 out-of- 
the-money option traded at a premium of 5.5 cents, 
or S1J75 per contract, while an in-the-money op- 
tion with a strike price erf $1,425 carried a premium 
of 3 .25 cents, or $8 1250. 

Another variable fa the pncifaig of premium s was 
introduced Sept. 30, when, the Qncago Board Op- 
tions Exchange began trading '“European Style” 
currency options, which cannot be exercised by tbe 


M ' J 


Against the 
Japanese yen 

I"- Sept. 22 



SON 

Source: Dafasfnaa/n 



Tom 


buyer until they expire. Because the buyer cannot 
cam in a profitable option until then, buyers pay 
smaller premiums and the odds would seem to favor 
writers. 

By comparison, tire Chicago Merc's currency op? 
dons may be exercised at any time by e xchang in g 
them for the underlying futures. 

Above all, investors must be alert to tire fact that 
options are a “wasting asset” Each day the contract 
draws closer to csqnrationit either rises or diminish- 
es in value, at a rate determined by computer, audit . 
could expire worthless, except as a tax deduction. 
But the computer -cannot tell the investors bow 
much to risk betting on or against the daflar. 

© 1985 The Mew York rims 


Forecasts Focus 
On Interest Rates 

Currency forecasting has 
never beat a exact science, as 
tire dollar’s erratic journey 
over tire past five years has- 
shown. But the Group of 
Five’s September meeting 
has provided another argu- 
ment for a further decline in' 
tire UJ. currency in 1986. 

The market believes that 
“recovery of tbe dollar will 
not be allowed" by the 
Group of Five, says John R. 
Hardy, director of Chemical 
Bank’s foreign advisory service. The dollar's value 
has dropped 15 percent since tbe United States, 
Japan, West Germany, Britain and France an- 
nounced Sept. 22 thaz they would coordinate efforts 
to bring the dollar down. Mr. Hardy projects ex- 
change rates of 2.40 Deutsche marks andl90 Japa- 
nese yen per dollar by next June. His estimates are 
based oh expectations of continuing softness in U.S. 
interest rates and economic growth in Europe, espe- 
cially in West Germany. 

Kota Waschio, a Tokyo-based economist with 
Nomura Securities, matches Mr. Hardy’s projection 
for tire yen, bat places the maik slightly high er, at 
2.45, by nrid-1986- Mr. Waschio expects the Federal' 
Reserve to cut its discount rate mice or twice next 
year. He does not expect Japan to take similar 
measures before next spring when “the central 
banks of Japan and Germany may be forced to 
strengthen their own currencies to fend off protec- 
tionist sentiments in the U.S., especially since 1986 
is an election year.” 

Stephen Lewis, an economist with Phillips & 
Drew in London, stresses tbe desire erf the U.S. 
government to have tbe dollar fall gradually. That is 
why he does not expea the Federal Reserve to cut . 
the discount rate by more than one-half a percentage 
point in the early months of next year. He puts the 
dollar at 200 yen and 250 marks by mid-year. He 
expects that Japanese efforts to bolster the yen will 
ptBh the dollar under 20Q yen by tire end of 1986. < 

a 



Cautious Decontrol for Europe’s Funds 


(Confined from Page 11) 

new directive would have to be 
with tire two new 
, EC officials said. . 
What the d ire c tiv e does is set 
out- basic req uirem ents for the. 
structure,. investment and pricing 
of tire funds. If a fund located in 


one member nation meets these 
requirements and is approved by 
tire national authorities, it is then 
free to sell in other member na- 
tions. ' . *L 

The funds, however; still wfll be 
subject to the marketing rules of 
fire particular country Or countries 
it chooses to enter. This is a re- 


quirement that many fund offi- 
cials say is one erf their biggest 
current obstacles to foreign sales, 
and they believe it is one of tire 
major timiutions to the EG direc- 
tive. 

There are only two EC coun- 
tries, for example, that permit 
door-to-door setting — Italy and 


is pleased to announce 



of ouinew office 

: .''-••>. 1 " at ~ . 



London 



France, according to Marie V. St 
Giles, director of GT Unit Manag- 
ers — although the British Parlia- 
ment is to soon consider a bill 
allowing this technique. 

Another major problem that 
funds face when trying to break 
into a foreign market is establish- 
ing a distribution network that 
wfll rive them access and credibil- 
ity. “If I walked down the street in 
West Germany and tried to sell, 
no one would know anything" 
about the fund’s quality, said Paul 
Bateman, marketing and develop- 
ment director of Save* Prosper, a 
British fund group. 

To meet this problem, Mr. Bate- 
man said, his compa n y plans to do 
marketing research next year in 
several European countries. 

Mr. St. Giles sees another chal- 
lenge in finding foreign intermedi- 
aries — a natural bh of “commer- 
cial brutality” in the attitude of 
n a tion al fond markets toward out- 
siders, which he said will make 
international transactions “slow 
incoming.” 

Cross-border sales of funds also 
are Him ted by the foreign -ex- 
change controls in four EC coun- 
ties — France, Italy, Ireland and 
Greece. A second di rect i ve ap- 
proved by the ministers actuafiy 

allow s the free flow of capital con- 

cemed with fond transactions, but 
countries with balance of pay- 
ments problems or cw prmT fligh t 

difficulties are permitted to ask for 

exemptions from this requi r e ment . 

■ ° 
Steven J. Dry den 


An investment today in gold 
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INTEB^ATIOIVAJL HERALD TRIBUNE, MONDAY, DECEMBER 9, 1985 


Pin Their Hopes For 1986 on Inflation 


4*kfhe metal’s vigor 
\ . |ilfs at about $340, 
jut platinum’s rise 
L ttfers some hope. 


yi • New York 

■pB . HE NEWS for ^predooK inetalsltas been 

■ ^gopdlat^. Tbe Gioiip tf Five’s 

■ -' mtetveotioft significantly weakened the 

-Bietals paces have -stabilized 
|tf.fteir 1985 lows,: and the FederalTfcservc’s 
Mninodanve roongaiy policy is leading same to 
Set lugber inflation in. the months to come. 

rat to date^preaocs metals hare acted with wort 
jSnce than glee. At the New Yodc Commodities 
fiarige, traders still haggle aver wirfr'd »nd «4trrv 
i/es WMc gold and silver prices sit stubbornly in. 
middle of their 1985 price ranges. 


t prices ndghteven drift bdowj 

uise of investor apathy. 


I by February 


: . t reason is that inflation continues to be negii- 
:r. : ^ enhancing the relative attractiveness of finan- 
^ instruments. In the United States, the rise in the 

- J turner price index slowed to a 23-pcrcem annual 
a-.; -./.V-in the third quarter from 3 3 percent in the 

-~~_ L '»?ous quarter. On a global basis, inflation rates 
: - T> “expected to decrease toward the end of nest year. 

Organization for Economic Cooperation and 
^-..V^opmenl projects that inflation, will duplicate 
._. lr r. : 1 • 1 985 annual rate of 4.75 percent far the first half 
. .. ^{186 and dip to 45 percent daring the second 

• n.i JlV Tf you don’t think inflation's gang to be boom- 

• JK-.r -7, ahead, you’re not gpmg to get a beaming rally,” 
' Tp* c^aowtedged Fred Bogart, chief precious metals 

for Republic National Bank m New York. In 
o-j ^view, only a return to the double-digit mflatinn 

- late 1970s and 1980 would spark a rush to 
Hi:;-, ^jible assets. 

r “.V J -'^here is stiD hope, however. Technical analysts 
t Kuc!^ John Murphy of die Commodity Research Bu- 
*■■■? argue that tire five-year bear market has given 

- " ■; i;' to a sustained “basing,” or sideways pattern, 

acted by the narrow trading ranges for gold and 

- -v this year. Indeed, analysts note that gold has 

• hiv ;rfld support above $300 from central banks, who 
« 'jcz':; be net buyers in 1985 for the first time in two 

The indication of that partem cookl be a 
:: . dounccd upward movement within the next six 
:. i-iths. 

~~ r - the minds of some. observers, platinum, the 
’ ' pt volatile precious metal, could prove to be the 

• : ~-2yst. An $18 smgB near the end of November 
:<a - - -bed the January futures contract price to $355 an 

cc, a high for the year, leading some analysts to 
r -jest this coaid be the harbinger for a kmg- 
■ - Spared bull market in gold and silver. 

Platinum is goingto lead precious metals,” as- 
7..T “t.ed James Kneafsey, president of Cambridge 
7. "Tnmodities Carp., a research. firm in Cambridge, 


Platinum Sets The Pace 










Massachusetts. He said that the could move 
op gradually to $380 to $390 an ounce over the next 
few months. 

The .key difference between platinum and tire 

ntlwr jngfi^' iiirtiily ^ that ph rtrnrmi itT W ffip " 1 * 

sensitive to certain geopolitical factors than gold 
and silver. Sooth Africa, a country of increasing 
political turmoil, controls 75 percent of the world's 
platinum supplies. The Soviet Union is the other 
major prodneer. 

"There’s much less above-ground stock in plati- 
num, whi ch jpeans that platinum is mnd> more 
vulnerable to a cessation of supply from Sooth 
Africa” than is gold, said Alan Davidson, a prerious 
BwteU analysts with S he m ym . T dmnn Bros, in 
London. 

At the time; jtidnfprial demand is strong. 
Platinnm is an integral component in catalytic con- 
verters for antomobiles.' Worldwide demand is ex- 
pected to jump 19 percent within six years if the 
European Commrmiiy mmirfawc converters on Eu- 
ropean cars and trucks. 

Not surprisingly, many investors think the metal's 
volatility can tnggpr a bullish w«pn n« fr om gold 
and stiver. Only a few months ago, platinnm was 
trading at a S60 discount to gold. Since then, prices 


trading ai a 

have shot up .75 percent and the metal has been 

tr ading at a p remi u m 

“People suspect that when platinum is trading al a 
premium to grad, you're going to have a gold rally,” 
said George Ahagnos, market analyst far the New 
York Commodities Exchange. Because platinnm. 
rises faster than gold daring rallies, be explains, the 
p latinnm p mny im can be used as a measure of 
market trends. 

Historically,- there is some troth to this. In 1980, 
when precious metals topped oat at the height of . 
inflation, an ounce of plathunn was $1,18950 — 
more than a $300 premium to gold's record price of 
$875. Stiver, the so-called Smeak sister” of precious 
metals, had a high of $50.35 the same year. 

If gold is goingto rise,itwill need platinum's Lead. 
True to form, gold has risen inversely to the dollar. 


Platinum Price 

Per Ounce \ 


sepr. 




from a .bottom of $281 in February to $340 on the 
threat of a miner's strike in South Africa last Au- 
gust. Since then, the price has settled to its Curran 
range af $320 to $330. 

Technical analysts now are "ring that $340 high 

fiq a mpOimw harrier thaf gold tmn f break through 
if there is to be any kind of sustained rally. But gold 
has found stiff resistance at even $330 an ounce, and 
few analysts predict a short-term breakout. 

“Fm inriined tO think yOUT ate QO better 

than 60-40” that gold wffl go to $340, said David 
T jnoehan, *wiiv metal* analyst with Merrill Lynch 
Futures lac. in New York. He has been advising 
cheats to bny “cautiously.” 

One factor that could rhtrng * that w war - term situ- 
ation is the tin crisis affecting the London Metals 


Striking 

One of the popular coins among silver 
investors is the Ljbertad. a one ounce 
coin minted by the Banco de Mexico. 
Over 2 million have been minted in 
1985. The coin sells for about $1 .50 
over the daily spot price of silver. 


m 






Exchange- If tin prices go crashing, says Bette Rap- 
topoulos, senior metals analyst at Prudential-Bathe 
Securities, that might spark a flight to the “safe 
haven" gold provides and a 10-percent price im- 
provement. 

Another is the long-term bullish technical senti- 
ment- Mr. Murphy dunks that a five-year decline in 
commodities prices is over, reflected by the basing 
or tideways trend in precious metals and commod- 
ities prices overall. 

“If the bullish scenario works out, then 1 would 
look at gold moving to 5400” sometime in 1986 but 
not wiion the next two or three mouths, he said. “I 
think the people who are bearish on gold are not 
looking al the broader picture." 

If gold has lost Lis glitter, then silver has acquired 
.a tarnished reputation. The one bright day in silver 
trading occurred in early October, after a report said 
that the Hunt family had sold 90 percent of its 59- 
mfllioo-ounce horde. Prices jumped 33 cents to 
$650 but then quickly Fd3 bade again to their 
current $6.15-to-Sa30 range. 

M ANY analysts thought that the Hunt 

family sale would remove an important 
psychological barrier. There was fear 
the financially troubled family might 
suddenly flood the market with one big sale, causing 
prices to tumble even lower. Although the family 
secretly liquidated hs stocks over a matter of 
months, the same analysts now say that the Hunt 
silver has merely added to an overall market surplus. 
That, combined with weak industrial demand, has 
created short-term resistance at $6.40 to $650 an 
ounce. 

“To relieve the downside pr ess ure requires a 
weekly doting of $6.45,” said Martin Ar m s t r ong. 
ftiarrTTKm of Prjnceton Economic Consultants, add- 
ing that such a move is not immediately Kkdy. 

The good news, however, is that silver prices have 
found long-term support at $6. “I wouldn't rule out 
the possibility of near term weakness,” warned Ber- 
nard Savaiko, a senior predoos metals analyst with 
Paine Wdiber in New York, but “I think around $6, 
silver’s cheap and won’t fall that modi lower.” 

There is a similar consensus far palladium. A 
member of the platinum gpup, palladium has re- 
cently found a niche from 595 to $100 an ounce; a 
little above the 1985 low of $91.40 in Match, Ana- 
lysts say that short-term stability could lead to an 
upward trend over the long term. But the metal's 
price is likely to remain uncertain over the next six 
months. 

The mam reason is weak industrial demand, 
platinum and gold, palladium is used in electronics 
as connectors and contacts in computers. But the 
weakness in the computer and dectronincs industry 
has led to a corresponding decline in palladium 
demand, according to Mr. TJnnehan al Merrill 
Lynch. He expects pallxtinm prices to fluctuate 
from $92 to $1 10 over die short term. 

Adding to the uncertainty is the Soviet Union’s 
response to a price upswing. The Soviet Union is the 
world’s biggest palladium producer and in the past 
has sold huge amounts on (he world market when 
prices were attractive. 

Still, Mr. Lirtnehan and other analysis say the 
longer term prospects are strong. Palladium also is 
used in catofytic converters, though to a lesser extent 
than plathunn. If the EG chorees converters for 
automobile emissions controls, prices could grow at 
a double-digit rate, analysts say. 

□ 








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Page 16 



INTERNATIONAL HERALD TRIBUNE, MONDAY, DECEMBER 9, 1985 


PROFILE D - = 


Harry Schultz: Still Unafraid to Go Out on a Limb 


In twelve months investors 


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a yield of 8.07% p.a., which bettered the London 
call rate available during the same period by 0.35%, 
and nearly equalled the one month London 
interbank bid rate of 8. 11 % p.a. And this was before 
any rebate of the Management Fee. 

Yet Citifiinds does not sacrifice safety. These 
yields are achieved by the skilled management of 
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Citifiinds is advised by Citibank N.A. which 
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Thw al ■» pU nl h> Ckkocp hmmoi tank Unwrd. a i-vmjxrU drain 


By Edward Rohrbach 

Monaco 

I TS NOT Harry Schultz’s fault that 
so many people want to be rich. Or 
maybe, in the case of most of his 
faithful readers around the globe, 
just want to hang an to what they have. 

His “International Harry Sdmitz Let- 
ter,” written here in his office averkwlring 
the «»<ann and Mediter ranean, 
a readership of nearly 10,000, making it 
one of the highest-dreulation investment 
advisory letters of the hundreds that exist, 
At $250 per animal subscription, or $2,000 
for a lifetime subscription, h is also one of 
the most expensive. 

For personal financial consultations, he 
unflinchingly charges $2,000 an hour, 
which the CSumess Book of World Records 
says makes him the “world's highest-paid 
financial consultant” 

Mr. Schultz, who pioneered investment 
seminars almost 20 years ago, also “proba- 
bly is the most popular speaker on the 
circuit today," according to Charles 
Githler, president of Investment Seminars 
Inc^ which organizes about 10 big interna- 
tional events a year. 

“Harry’s always so outspoken, so spe- 
cific," Mr. Githler added. “He doesn't 
mind going out on a limb — I suspect he 
enjoys going out on a limb." 

Mr. Sdmitz, a Milwaukee-born expatri- 
ate who travels the world, likes to tdl bis 
audiences: “I'm never wrong. . lor more 
than 24 hours." 

As he explains with a characteristic imp- 
ish grin: “Tve been off on a lot of things, 
but I don’t sit on a prediction that mms 
out wrong. You can’t fight the market 
tread That’s what separates the winners 
from the logos." 

He is a strong advocate of hedging posi- 
tions and other defensive tactics to cm 
losses, such as setting a price bdow cast at 
which he will automatically bail out of a 



Harry Schultz 


stock or a commodity. His popular refrain 
is “don’t fly in the marketplace without a 
parachute.”. 

“Trading is. for widows' add orphans, 
while long-term investing is for Las Vegas 
gamblers," he asserts. His point is that 
often self-styled conservative investors 
will watch something they have bought go 
down 10 percent, thm another 10 percent, 
and when it -drops 40 percent say, “Now 
it’s too tew to sefl.” 

He goes so far as to maintain that pick- 
ing wrong stocks can be overcame if an 
investor’s tactics are good 

His best call came in the summer of 
1984 when he predicted that interest rates 
had topped out in the face of the consen- 
sus view that “crowding out” by U.S. gov- 
ernment bamming would drive them 
much higher. He strongly recommended 
buying bonds and Treasury bond futures. 
And, m fact, interest rates on long-term 


bonds have dropped about 3 percentage 
points since then. 

So sure was he of another imminent 
opportunity last May that he told his large 
audience at a seminar in Lausanne to leave 
immediately — “Don't even wait for the 
next speaker" — and buy Treasury bond 
futures. They shot np 2 points ovw the 
next week, affording investors an 80-er- 
cent profit per SZ50G-margin contract. 

- Gians, which plot past price move- 
ments, are what guide Mr. Schultz in his 
investment decisions. 

“Charts scream at you whether to buy 
or sell,” he said. “There are several hun- 
dred thousand people drawing charts^ in 
the world, but only a few are Renoirs." 

He nMiniflins that the majority of chart- 
. ists paint themsdkes into a corner by “let- 
ting a prejudice influence them. You need 
a blank utind to do a chart." 

In his most recent newsletter, just pub- 
lished, he applies another favorite invest- 
ment tool, the “law of contrary opinion.” 
Mr. Schultz notes a new poll in U.S. News 
& World Report in which 86 percent of 49 
lop American economists surveyed predict 
that interest rates will either go up or stay 
unchanged in 1986. 

“Obviously, these economists don't be- 
lieve in or can’t read charts,” he writes. 
“This same group has been wrong over the 
Last 16 months." 

Mr. Schultz, who said his personal com- 
modity account this year is up 81 percent, 
claims millionaire status dating back IS 
years, which is not disputed by several 
others in investment advisory business 
who have known him over the years. 

- But one of them said: “He's a secretive 
little guy, tight with money." 

Soft-spoken and physically slight, Mr. 
Schultz notes that “I like to keep a hairier 
between myself and the public." He is a 
devotee of astrology, numerology, gra- 
phology, physiognomy, or face reading, 
and takes all four into account in hiring 
staff and making friends. 


James Blanchard, who ran an invest* 
mem v«"foar Iasi month in New Orleans 
that Mr. Schultz addressed by telephone, 
oils him "a real investment gemus. white 
also allowing that "he's ccccntnc. but with 
flair.” 

Mr Sdmitz traces his success sn invest- 
ing to “always questioning the system, 
even as a bov growing up in California. 

at the trad of World War Il-Jbere was an 
explosion of capitalism in China then, he 
said, “and the year I was there 1 got a 
lifetime's worth of education investing in 
silk stocks, gold bare and Chinese currtn^ 

cv" 

B UT "freedom" is star central 
theme of his feisty 12-page let- 
ter. now in its 22d year of publi- 
cation and written in an abbre- 
viated. breezv style to pack in more of his 
views: “Can you imagine all the trees cut 
down because people doo't just use the 
ampersand." he lamented. 

Freedom from the “welfare state" and 
government interference generally axe 
what he focuses on. Most of the letters he 
receives from readers, in fact, do noi have 
to do with investments, he said, but the 
topic of individual freedom. 

Replying to his call last month m the 
newsletter to “Fight Organized Crime — 
Abolish the IRS." a woman reader wrote 
him that it should be emblazoned o r.^ 
bumper stickers. * 

Despite his sharp pen, Mr. Schultz, m 
the words of a fellow traveler on the in- 
vestment seminar circuit, is a “teddy 
bear." He recounted an episode about 10 
years ago in Vancouver when Mr. Schultz 
pulled up his car after ha ring driven across . 
Quaada from another seminar in Toronto. 
Spotted between the seats was a pistol but 
on examination it proved to be a starter's 
gun loaded with blanks. 


The Stormy Return of the Fund of Funds 


By Colin Chapman 


London 

W HEN the British 
brokerage Gri eve- 
son Grant went to 
the Department of 
Trade and Industry earlier this 
year with a proposal for a fund 
that would invest only in other 
funds, few observers expected it to 
get more than a courteous rejec- 
tion. 


types of “funds of funds." A few 
gave pp and organized their funds 
offshore. Official reluctance was 
traced to the memory of the col- 
lapse in 1970 of Bernard Com- 
f eld's Investors Overseas Services, 
which, had employed the “fund-of- 
ftmds” approach. Considering the 
cloud of disrepute that stdl hangs, 
over the concept, the British in- 
vestmenl co mmuni ty was jolted 
by the department’s approval of 
Grieveson's application to set up a 
“fund of funds" called the Bar- 


Over the years, dozens of other . rfngton Planned Investment 
applicants had tried and failed to Fuad. 


win British approval for various 


Both the timing and the rules 
established for “funds of funds” 
have come under heavy criticism 
from other financial service insti- 
tutions, particularly some of Grie- 
veson’s competitors'. Michael 
Hughes, a partner at brokers De 
Zocte & Bevan, said the decision 
“shows every sign of being 31- 
thought out and is a curious move 
by the DTI at a time when corn 
flkt-of-intcrest issues are under 
major discussion and a bill is im- 
minent on Gty regulation.” 

Under the new rules, an ap- 
proved “fund of funds” is restrict- 
ed to die managing company's 
own unit trusts, the British equiva- 


lent of rnntnai funds. This is in 
contrast with the rules that govern 

similar types of funds in the Unit- 
ed States, where they are required 
to invest only in funds other than 
those run by the managing group. 
The British-approved “fund of 
funds” must be in a group that 
holds at least four trusts, and not 
more than 50 . percent can be in- 
vested in any one. 

The fund may "vb - an initial 
charge on an investment, but can- 
not charge investors with front- 
end fees when buying units from a 
subsidiary fund. It may, in the 
manner of discretionary portfolio 
services, charge annual manage- 
ment fees on both the “master” 
fund and the subsidiary funds. 

‘Trankly.it is not .a very good 
product,” sail DiddEats, director 
of GT" Management of Loudon. 
“It is all right for people with large 
sales forces to feed, but we see 
them as a clumsy way of investing. 
People would be much better off 
in an International unit trust 
which does much the same thing, 
only more cheaply and effective- 
ly" ' ■ 

The originators of the new 
breed of foods argue that they are 
aimed at investors who are looting 


for safe place to put their savings 
and who may not have the re- 
sources to build up a diversified 
portfolio of unit trust shares. 

“An increasing number of peo- 
ple are looking for something that 
u steady if unspectacular and is 
not going to risk losing them a 
great deal of money," said Peter 
Saunders of Grieveson. He notes 
that developments such as the pri- 
vatization of British Telecom and 
new profit-sharing schemes have 
increased the number of people 
with “spare capital and savings." 

Indeed, the “funds of funds" are 
being seen, by some investment 
professionals as a marketing strat- 
egy designed to give the insurance 
industry a new product to sell and 
-to help than compete for savings 
with building societies, Britain's 
home loan banks. Life insurance 
policies that are linked with unit 
trust purchase plans have long 
been a mainstay of the British sav- 
ings scene. 

Mr. Saunders acknowledges 
that Grieveson Grant hopes the 
Barrington Planned Investment 
Fund win lure some money away 
from savings kept in building soci- 
ety accounts. Even a modest pene- 
tration of that market could add 


up quickly. The total amount of' 
money invested in all unit trust is 
put at £18 billion ($26 million). 
The largest building society. Hali- 
fax. alone bolds £20 billion of sav- 
ings. 

“Okay, it is a marketing ploy." 
said Mr. Saunders. “But the fact is 
that it is really an extension of our 
portfolio management service, 
where we suggest that £10,000 is 
the minimum investment. Under 
our savings plan you can get essen- 
tially the same advice for an in- 
vestment as little as £20 a mouth.” 
He said investor response to the 
Barrington fund has been “quite 
pleasing." 

The most closely watched issue 
will likely be the potential for con- 
flict of interest. The manager of 
“fund of funds" who wants to shiir 
assets among the subsidiary funds 
may come under a lot of pressure 
from bis colleagues who manage 
the funds that would lose assets. 

Says Mr. Eats of GT Manage- 
ment: “If the U.S. market cracks 
and you go to your American fund 
manager, and look him in the eye 
and say you are going to sell £1C 
million of units, he will say, ‘No 
you are not' “ 

□ 


YOUR PRIVATE 
BANK ACCOUNT 
IN LUXEMBOURG 


THE BENEFITS 


There are very special benefits to be gained 
from opening a private bank account in 
Luxembourg. Benefits which can be derived 

no place else. Benefits which 

the prudent investor should 
become aware oL 

Luxembourg is a secure — - " 1 1 » 1 

sovereign state, an EEC mem- 
ber, a major financial centre. 

The Laws of the Grand jSp 

Duchy offer the non-resident «... „ 

account holdcrconfidentiality 
and security second to none. 

The private banking 

services offered by Maryland ' 

Bank International S.A. make -ww# m 

these benefits available to you. We are a 
well established, wholly-owned subsidiary 
of Maryland National Bank, which is part * 
of the dominant banking gronp serving 
the Washington DC - Baltimore market. 


with assets in excess of $7 billion. 

Our size enables us to offer a truly 
personalized and confidential banking 

l service for an elite gronp of 

Hi high net worth customers, 

III A service which takes full 

1 1 — I advantage ol the benefits of 
H a Private Bank Account in 
H Luxembourg. 

^ ■ m Our booklet 'Confidential 

» if Banking Services in Luxem- 

H bour^ lists all the advantages 
If available to you: zero taxation: 
H unusual confidentiality; the 

i full range of banking facilities; 

%mmmm exceptional service It also 
comes with complete account opening 
forms. Send for it today. 

To: Maryland Bank International S.A^ 
33 Boulevard Prince Henri, 

Luxembourg. P.O. Box 11. 


MARYLAND BANK HSTYERNAnONALsA. 

PHASE SEND ME DETAILS OF YOUR CONFIDENTIAL BANKING SERVICES IN LUXEMBOURG 


Address 


WE WANT YOU TO GROW 















































































NASD^) National Market 

OTC Consolidated tracing for week ended Friday. 


Sataabi Nm 

loos High Law Claw oi4i 


4 ft 

|U 

7ft 7ft- ft 
2ft 7ft— ft 
Sft 
lift 



ft 
ft 
+3 
+ ft 
41ft— ft 
37ft 38ft— ft 
7ft 7ft- ft 
79 S3 43 
23ft 25ft — Vi 
2Tft 22ft + ft 
43 43 — ft 

Iff* lift— ft 
20ft 71ft 
Sft Sft— ft 
2ft 3ft + ft 
9ft 9ft 
Sft Sft + ft 
Sft Sft— ft 
Sft Sft— ft 
12ft + ft 
lift + ft 
13 — ft 
Mh— ft 
IBM— ft 


1 M O 180538 ft 


1X0 31 39832% 
Ufa 3.1 4139 






**?■ 





r^M. 


ft? 




M U 2417ft 


u 



BBDO 

270 

47 

87540*4 

44ft 


BGS 



52814ft 

Uft 

14ft + ft 

BtWCfa 

.10 

17 

13 Sft 

Hi 


BPISV 



684 2ft 

2ft 

2ft + ft 

BRCom 



1277 71k 

7ft 

7ft 

BR intes 



217114 

Uft 

15ft +!ft 

BTFncI 

ITS 

40 

732ft 


32 -MW 

BTR 

.1H 

IX 

108 10ft 

HI 

10 

BoMC 



276 8ft 

7ft 


BokrFn 

1.00a 3A 

16242ft 

41ft 


BdKJLv 

AO 

17 

566 

45 

a —4 

BdJftkl 



284 7ft 



BdBCP 

JSa 1.1 

2249311k 

30ft 

30ft— 1 

BnPnci 

1X0 

47 

1015a 

22ft 

23 


1.12a 47 

46*4 V. 

23ft 

24 

Bancokl 

70 

£1 

116 10 

17ft 

17ft— ft 


* 


If you still believe in me f save me. 






ECl Tel 
EH Int 
El L Inst 
EIP .12 
EMC In A 
EMF 
EMPI 
EZEM 

EoalTI 

EosTwtA 

Eortcal 


23Slft ^ 

227 7ft 7 7 -ft 

11 290 4ft » Aft + ft 
<6 61211ft 10ft 10ft— ft 

413 9ft 8* S + ft 
4 ft ft ft 

i in loft id wft 


American Fxrhang p Options 


' Figures as of dose of trading Friday. 



246921ft 20ft 21 + ft 

23911ft 10ft lift + ft 
S3 3ft Sft 3ft + ft 
237 8ft B Ift 
11 38335ft 34ft 24ft— ft 
48 21« Sft 2ft— ft 
24 5ft 5ft Sft— ft 
269217 6ft U«— 1 


Malrll 5 lie 
MairltA Ale 





ChicafflRxrfiai^e ( 



m 

ejf 

Uft 

17V. 2 H- 14 

Ilk 

19ft 

a 

13-14 

27-14 

Wft 

22ft 

7-14 

•11k 

BknuLm 21 

sn 

r 

30ft 

a 

in 

r 

8ft 

a 

ft 

. m 

JBeHSa 

a 

9ft 

4 

45ft 

a 

n 13-u 

45ft 

a 

ft 

ft 

BWTph 

a 

Wft 

r 

40ft 

a 

Sft 

•« 

«0ft 

40 

2ft 

r 

40ft 

45 

7-M 19-14 




T 


20 

9 

r 


22ft 

7ft 

•u 

29ft 

a 

4 

7ft 

29ft 

a 

3ft 

4ft 

QMUP 

> a 

4ft 

r 

41ft 

a 

2ft 

4 

41ft 

49 

13-U 21-14 

cMau 

N 

r 

1 

- 91k 

12ft 

r 

ft 

CMnr 

15 

zn 

r 

IMk 

a 

ft 

r 

CT*f 

22ft 

r 


Uft 

a 

3-M 

7-14 

Cooper 

a 

4ft 

r 

39ft 

a 

Ik 

- 2 

39ft 

a 


ft 


a 

r 

5ft 


a 17-14 

2ft 

39ft 

45 

ft 

ft 

DSC 

7ft 

ft 

1 

Mk 

n 

3-14 

ft 

«ft 

17ft 

MA 

r 

Dome 

34ft 

4ft 


«ft 

a 

5ft 

r 

«k 

a 

Ift 

2ft 

4BM 

« 

ft 

Ik 

DecDto 

l w 

Sft 

r 

12 

12ft 

IMA 

r 

n 

15 

344 

r 

Ooodvr 

a 

«ft 

r 

291k 


' Ik 

1ft 

. 291k 

a 

144 


GouU 

2S 

7ft 


an 

a 

3ft 

4ft 

an 

35 17-14 

2ft 

an 

a 

544 

1 

QmrM22n 

r 

r 

mi. 

25 

Mk 

r 

aft 

36 

2ft 

Sft 

au 

a 

ft 



» 

M 

r 

42ft 

« 

2ft 

3ft 

au 

45 

‘ ft 

1ft 


22ft 

7ft. 

71k 

29ft 


4ft 

Sft 

291k 

a 

1ft 

2ft 

29ft 

a 

3-U 11-14 

MBA 32ft 

r 

r 

32ft 

25 

7ft 

r 

32ft 

27ft 

Sft 

• 

22ft 

a 

3ft 

5 

32ft 

32ft 

2 

V 

32*4- 

a 

ft 


32ft 

a 

3-U 

r 

LBVT 

15 

2 

r 

14ft 

17ft 

M4 

r 

Lkffl 

a 

3ft 

r 

Lofts 

17ft 

r 

r 

- 2Hk 

W 

2ft 


a» 

22ft 

1ft 

2W 

a* 

25 

7441 n-u 

tift 

a 

1-U 

. r 


u 

2ft 

r. 

16ft 

17ft 

MA 

1544 

Wk 

29 

1-U 

544 


Uft 

. r 

r 

19ft 

15 - 

4ft 

r 

19ft 

17ft 

2ft 




JQmns 


Option & price Calls Puts 


* 19ft 22ft 
NctwSv 20 
34H 22ft 
24ft 25 
PMm 17 ft 
23 28 

21 2Zft 
23 25 

Pitney a 


3-U . I 
V) 1ft 
1 2ft 


ft 1« 

Sft -.r 

ft r 

ft . ft 

1ft Sft 

M r 

1-14 r 

ft ft 

ft i 

ft 2 

2 - • 


Qualm II 
lift 12ft 
lift If 
Romr 30 
34ft If 


48 SS 544 
ShMra K Sft 
17 T7ft ft 
Sonat 30 4 

33ft 49 344 

SyPran 15 r 
19ft 17ft Sft 
19ft 28 ft 
19ft 22ft S-1* 
19ft 21 ft 
TRW ft r 
82ft 75 r 
82ft ■ r 
Oft HS 1ft 
Tandem 15 Sft 
20U 17ft 3ft 
20ft SS 1ft 
20ft 22ft ft 
Tmtfy 25 we 
39ft X 9ft 
39ft IS 4ft 
3*ft 40 1ft 
tvhy a 4«h 
33ft 25 15-U 
uc am 45 11ft 
a so nt 
a ss ift 
a 40 sft 
<3 46211-14 

43 78 1 

USHBC2W. ft 
USHC«14ft r 
17ft 20 IHi 
USU 251 11-14 
94ft 8 ft 
2fft 35 r 

usmw m 1ft 

WUom 35 2ft 
am H r 
wmLm » 14ft 
43ft a 9ft 
42ft 40 *ft 
Oft 45 13-14 

4m a ft 
WMaa K 9 
4M a 4M 
41ft 45 1ft 
48ft ■ ft 
Ml Mur FOB Oft 
AMR » 4ft 
40ft « 3 

40ft 45 11-14 
40ft a 7-14 
ASA a r 
15ft *211-14 

. ssft a ft 
35ft 45 ft 
asft a r 
JM S 1-14 


4ft ft 
2ft ft 
1ft 2ft 
4ft r 


2ft r 
1*14 r 
2ft ft 
1ft 1ft 
4ft 5-14 


10 f 
4ft 8-14 
21 k 11k 

r f 
t» r 
r 1-14 
14ft ft 
10« 13-14 
7ft 25-14 
4ft 4ft 
2ft I 
r r 
r ft 
r 2Mi 
2ft ft 
ft 3ft 
H r 


Sft ft 
ift m-u 
15-14 r 
9ft r 
Ift ft 
3ft 2ft 


r ft 
414IU-U 
2ft 5 

1 r 

4ft 5-14 
rl 15-14 
1ft 4ft 


Ilk n-T4 
1 2ft 

7-14 r 



r 7-14 

r 1ft 
lit 4ft 


PDWB 

a 

r 

r 

r 

19-16 " 

41ft 

49 

3ft 

r 

2 % 

r 

41ft 

45 

m2 n-U 

4ft 

r 

RWVOT 

a 

2 U 

r 

I3rle 

iva 

25ft 

a 

916 

m 

r 

r 

ftoyOut 

40 

4 


ft 

m 

A2V> 

45 

Ift 

m 

Sift 

r 

Wooer 

a 

r 

r 

ft 

r 

au 

a 

r 

r 

ft 

1 

47U 

a 

4ft 

r 

111 

» 

42W 

45 

7 

3U- 

r 

r 

sunn 

a 

Ift 

f 

r 

r 

aft 

» 

Sft 

r 

Ift 

r 

34ft 

40 

13-U 

2 '«> 

4>6 

r 

34ft 

45 

ft 

r 

r 

r 

Stour 

05 

r 

9 

1-U 

1 

Tenoco 

a 

Ift 

r 

ft 

99 

40% 

« 

lu 

1 H 

1 

1 99 

40U 

a 

3-16 

Mt 

5 

r 

Varlon 

a 

Jft 

r 

1144 

r 

a 

» 

ft 

r 

2 U 

r 

2B 

» 

3-14 

r 

r 

r 

Zenith 

15 

r 

r 

ft 

r 

15 

17ft 

# 

r 

13-U 

f 

11 

a 

13-U 

r 

r 

f 

15 

22V, 

5-14 

■ 

r 

a 

I Tom volume joxa 





Figures as of dose of trading Friday: 




Put® I Option ft price Colls 



Gnimiii ' X 
Halbfn X 


shecth) lsjl/ojx, mam 


BID ASK 

.ApoBoComp. 14 V 4 141 * 

.Mr Gasket W* 91* 

Bfttar Gyp. 5 5j* 

.Modutore 105i 11 

Rodime ' 10% 11 

WITH COMPUMENTS OF 
COfmNBvfTAL AMERICAN 


LOW* a 2ft . r r r 

Tift 22ft Ift 211-14 r r 
21ft * 9-M r r r 59ft 

MCI 7ft 2ft r r r aft 

Wft 10 1144 Ift- ft ft aif 

Wft Uft MA ft r r 59ft 

" 55 * IS IK 17 * * 7 59 ft 

no no lift r r 1ft 59ft 

no ns 7i* wv. ift 2ft 

no no 8ft 7 2ft r 

no a I* r 5ft 7ft 

Moom a r 7ft r r 

44ft 45 2ft 3ft ft r 

40ft a 7-14 1 r r 

40ft a 1-14 r r r 

HWA a r S 3-14 i 

JS « 4 r ft Ift 

58ft a 8ft Sft 5 r 

50ft SS Ilk 4ft 6ft 7ft 

» « ft 2ft r r 

PalMW am r 144 r 

im a sft 6ft ft ft 

am a ift 3 nt 7* 

14ft a 746 1M 5ft r 

34ft « 3-16 ■ r i 

Ponm a r r ft ft 

. 63ft a Uft 10ft 7-14 M 

mam. n im» j 

Oft a 0ft n 3 5 

61ft 46 Sft 7ft Sft 7ft 

43ft a Sft Sft Ift r 

a r r ft r 

TTft r 1ft t r 

M 14ft r r r 

a 9ft II ft r 

n 4 ft 7 ft r 

a m 4ft jft r 1 


NO 37 r 1-14 r 

ns lift r 144 r 

no 27 25ft r r 

IIS 21 25 II. , 

no n 19 . ft ift 

125 13 r. 11-14 r 

W 9 Uft 2ft Sft 


45 

15% 

50 

Wft 


ns 4ft lift 4ft 

' UO 4ft 71k 7ft 

MS 2ft Oft r 

U0 ift 4ft r 

25 r 4ft r 

N 1ft 2944 7-M 

» 244 .. ft r 


a 
» 

12ft 

a 

17ft 
22ft- 
25 

Am Noo 40 
AinCm n 
102 95 

IK' in 
m in 

Amoco 45 

6 Sft 70 

AMP 25 
351k a 
35ft a 

am a 
Boadic U 
ISft Uft 
Uft a 
- ISft 17ft 
MkDt U 
-19 17ft 
if a 

.19 . 22ft 
19 25 


r 3 ft 
3 ft r 

Ift r 

ft 13-14 
r 5(4 
ft 1ft 
r 3-16 


Sft r 

3ft r 

2ft Sft 

11-14 r 


2ft 1 
ft r 
r 5U 
3 Sft 
ft 15V 
ft 7-14 
r r 
2 21-16 
M# 1 
ft ft 
H 0 
w* r 
(ft 7ft 
3* 4ft 
» 1* 
m aw 
r 

12ft ■ 

9 - Uft . 
4tt W 
4ft 7ft 
21k K 
2 4ft 

IS ? 

«£ r 
9ft 11 
Ift 7ft 
2ft 2ft 


4ft * 

£ « r 

Aft. H ? 
7ft Sft 
1ft 2ft 
ft 15-14 

























































cal' i 


SV~~ )xJ^> 


INTERNATIONAL HERALD TRIBUNE, MONDAY, DECEMBER 9, 1985 





Page 19 


llB 

I HW LOW CIb 
I 72I7W IT . 

is n w 

314 2W 14b 
SV 3*1 3 
11? ■« 7M. 
1031 DM W 
' SUU UH 
ais? iqu. m 

527 Art 5W 

mo m iK 

S3 7VS *44 
5395 In IV. 

: 117 10W 9W 
> 731 26 'A 2*W 
2837W 3414 
INM A 


17V. + 14 

rv. + w 

144— W 

a — w 

aw +i 

10—14 

i*w + w 

9W + w 

* + w 

k-* 

94k— W 
24 +1W 

3414— 44 

sw— w 


isaiiw low low— w 


Tytan 336101* 944 10 ♦ Vi 

Tyson* M 2 S224 Z7W 34W 27W + W 




YIOwFK 34 II I1145MW 345 m 36V, +I4k 
YorfcFd *0b 13 1«26W 2444 24 +44 



m 34k JW 
.101 A 9147 27k. 25 
M 10 BKB2JW 72 L. 

ua 14. 14k 
>60 15 337 14 13V. 

13* 10 7S745W 41 
750 3 24- 

1581 *h 5W 
JBI J 75212 11V> 

207711W 11W 
36 10W 10.. 
2301 3 2W 


Kretfielfox Indices 

(Bom 100 May t, 1*77) 

Industrials. USS L.T 

Inn Institutions US SL.T. 

US 4 medium lerm — 

C on od lan S medium lerm 

ECU medium term .... 

UC9 

DM 

FF chart term 

F Lux 

Inli Inst. F Lux medium term 
F Lux medium term — ... 

mn ins!. Yen long term 

ECU short term 

ECU Iona term 


3M 

25V.— Vj 
23 
144 

134k + 4k 
45W +2W 
24.- V- 
41k + W 
114* — V* 

nw + w 

'ft-w 


Last Weeks 
NTSE 


NYSE Most Actives 


707104k MW Wk +144 
2745 4 5W 544 + W 


Treasury Bffls 

Figures os of cloae of tnsdtno Frtdov 


5-22 
4-12 
7-10 
0- 7 

9- 4 

10- 2 

10- 30 

11- 9 

Source- Federal Re-1 


Bid Aik Vld 
W7U)i*i 
AM 444 451 
4J4 4i6 439 

AM 4.1 « Alt 
A37 421 6-13. 
&J» 472 636 
7.17 7.13 739 
7.M 7.10 737 
721 7.17 735 
732 7.11 730 
73A 732 7A3 
737 733 7AA 
73* 73* 7 M 
735 73\ 7A5 
732 7.U 7X3 
73* 732 7 At 

730 73* 7 S3 
732 7 35 7S7 
7 M 730 7 M 
73* 730 7*1 

7 34 730 7*1 

735 731 7** 
73* 730 7M 

732 73B 7JA 

731 739 7*7 l 

733 739 7M 
733 73* 7*2 . 

7 M 730 7 M 
73* 732 733 
73* 734 7J0 
730 73* 7 JO 
730 736 734 
735 733 73* 




Last Week's 
AMEX 


AMEX Most Actives 1 


NYSE Diories 


TW* Wk Last Wk 



AMEX Diaries 


This Wk Last Wk 


Advanced 
Declined 
Unchanged 
Total Isms 
New Highs 
New Lows 


Advanced 
Declined 
Unchanged 
Talal issues 
New Highs 
New Lows 


3*3 91 

3*4 30 

Ml 182 

VIB M6 

95 70 

9 23 



AMEX Sales 


Total tor week 


Year ana 
Jan 1 to date 
1*04 la date 
AMERICAN BONDS ■ 
Total far week 
Year aga 


53390000 
3X120000 
31340000 
1, *00700000 
1,411130000 


^ 

w ...... 








Now Thai can take you by DC-10 to the land of the Pharaohs. Our twice-weeldy flights, via Muscat, 
depart from Bangkok every Tuesday and Friday at 2330. And fly out of Cairo to Bangkokeach’'0(fednesday and Saturday, 

So now you can visit one of the oldest civilizations on earth with one of the most civilized airlines in the sky. ^8^) 


inai 

Smooth as silk 
across five continents. 


I 



















































Page 20 


INTERNATI01VAL HERALD TRIBUNE, MONDAY, DECEMBER 9, 1985 




look! look at this 

PICTURE OF SANTA CLAUSi 
P0NTTEUMEME15NT 
.OVKWaGHT.' - 


UMAT IF ME MAS A 


HEART ATTACK WHILE HE'S 


FLYING THROUGH THE AR e 
ON CHRISTMAS gV&w. K 


LOOK AT THAT PICTURE 
AGAIN -NOTICE ANYTHING? 




xtarmfl 




THE VISITORS 


KS 


^taring as an actual 


H1HIIII HlllHHH 


BLONDIE 



I 0EST CHOCOLATE CAKE )|t ! 
I EVER TASTED 



MUCH BETTE33 THAN # TOMORROW IS THE \J> 
MJ7S. WOODLEY© GLAZ^ POUgHN UT 

• - J ^_^cOMPErrnoN 




By Ronald Blythe. 239 pages. $16.95. 
Helen and Kurt Wolff IHarcourt Brace Jo- 
vanovich , 1250 Sixth Avenue, San DiegPt 
Calif. 92101 

Reviewed by Michiko Kakucuu 

I N “Akenfidd," Ida superb oral history of a 
Suffolk village, the British writer Ronald 
Blythe drew aummtdy detailed portrait of life 
in the Engfab countryside. By interviewing 
members of the roramunity from all classes 
and pro fe s si ons — from an illiterate hermit to 
the blacksmith to the local justice of the peace 

— arid atlrw fn g them ta dejjVgT monologues tO 


ACROSS 


1 Blossom 
7 Fertile region 

13 Raise 

14 Recipient of 
title to 
property 

16 Improperly 
failed to follow 

suit 

17 Makes ready to 
publish 

18 German 
possessive 

19 Aquatic 
mammals 

21 Pu trifles 

22 Arctic sight 

23 Greek letter 

24 Fish eggs 

25 Hawaiian 
goose 

27 Prayer 
endings 

29 State 

NUtaxiy Lions 

36 Property 
holdings 

32 French linen 
fabric 

34 Disconsolate 

35 Rim of a vessel 

36 Supposed 

46 Undeveloped 

rambler 

44 Fencing sword 

45 Old World 
finch 


47 Action to 
mislead 

48 Emulate Willie 
Sutton 

49 Fountain drink 
56 Strawberry, 

e.g. 

51 Short news- 
paper piece 
53 Place for a 
trellis 

55 Talented 

56 Hair shirts 
58 Border dty in 

Ariz. 

60 Buttercup’s 
relative 

61 Hillary’s 
conquest 

62 Diving birds 

63 Prevents 


11 Calls for more 
chi the Rialto 

12 Weights less 
adjustments 

13 Prized weasel 
•15 Member of a 

Jewish sect 
20 Consumed 

26 Stand for 
Wyeth 

27 Mosquito 

28 Drawing room 

29 Kind of tiger 
31 Playground 

game 

33 Prefix with 
lead or read 


-JSiW 


BEETLE BAILEY 


DOWN 

1 Defrauds 

2 Indulgent 

3 Kiln 

4 Humorous 
person 

5 French 
summers 

6 Converts into 
cash 

7 Symbol of 
victory 

8 Fermented 
drinks 

9 Free (of) 

10 Precious 


36 Home of a 
certain lily 

37 Crime during a 
blackout 

38 One who 
defames 

39 Attests 

40 Matured 

41 Clumsy one 

42 No good at all 

43 Hate 

46 Squabble 

52 Form of Greek 
drama 

53 Nota 

54 Wander at 
random 

55 River in 
Switzerland 

57 Com cm the 

59 Achieve 



fagjgg of a pastoral F-tiwi and replaced then 
with an. ungeptuuental picture of the repres- 
sive, fatalistic — and often stultifyingly pro- 
vincial —way of tife'that still exists not very 
many miles from Loudon. 

In “The Yiaiors,” a collection of short sto- 
ries belonging, the author points out, “mainly 

to the first years of my writing life," Blythe 
fnirwc on, in fictional terms, mnnh the same 


temtonrhe covered as a journalist in “Aken- 
field.” The setting, for the most part, is the 
rural England of his childhood — “on the face 
of it,” aslic wrote in the earlier book, “the land 
of place in which an Pn gfahmaw ha*? always 
fdt it his right and duty to live,” “the real 
country, no touched arid genuine.” And the 
dominant emotions, a gain, are a sense of suffo- 
cation, of lost innocence, and of time past 


ametic place, this world 
finH of the sort of social 


12 -4 


ANDYCAPP 



IF VOU CAN SWLE WHEN AU - AREXW b 
\OU AKE CHEFRH'iG SUBSTITUTE, 

► \CUQ£5£KV£' TO BE BSDUGHTOFF _ 
FOR DRINKING TOO MUCH AT HALF-TIME 


baddntmg that obtains among people of all 
rfflsms in an is ol ate d community — whether 
they like to hold snooty salons in their parlors. 
Sipping tea off a service from the Omega work- 
shop, or pass die time sitting about a grubby 
filming to the rats scuffling in the 
garbage outside. An aging spinster finally gets 

married, and the other women cattily point out 
that die can’t even enrifr a tm-mp mash; a 
would-be poet moves into the neighborhood, 
only to be immediately -pegged as a phony 
D. H. Lawrence. Even the sort of burial that a 
loved one receives is carefully noted by the 


a gossip is a primary activity in Blythe's 
fictional world, it is partly because anything so 


_ WIZARD of ID 


Solution to Friday’s Puzzle 


<S> New York Tones, edited by Eugene Maleska. 


i/k em& ^HcfPiH^MNP! Nfla? 

‘5ate#ote< 


DENNIS THE MENACE 





onne □□□□ aoaas 
□goe cDaan ansHS 
□cqd anna aaaso 
□□□a nannacaaaBa 
□□□aaa □□□□ 

□□33 □□□□□□□ 
OEBnaoaaaQ aaaa 
CEQoa □□□ aHHOia 
oeqb □aanoEanaa 
nmsnaaa □□□□ 

nrncia □□naoa 
aomHaasaan aoaa 
□coca □□□□ □□□□ 

DDCB3 □□□□ □□EH 

□BQcnn 


— uib *vw — _ — w 

mtaiL And when the characters are not busy 
Keeping secrets from one anoher, they are 
dissembling in nwre subtle ways. Ofttt ihty 
feel nothing but a deadening sens* of duty 
toward the people they should 
and so end up seeking some sort of refctfe or 
passing connection with a stranger, eacqoQ. 
teredtalf bv chance . 

An itinerant Jehovah’s Witness, a h andso me 
young man strolling in the park, a grap of 
soldiers temporarily billeted war town, 
artist in need of patronage — these straqgBqi 
all provide the frustrated women m SytoeV 
stones with intimations of passion, or aijes* 
serve to remind them that more exists begad 
the confines of their attenuated lives. _ - ± 

Indeed, many of the characters m om 
stories are. as the title of the voiume sugfcpm, 

viators — travelers who have happenaE by, 
exDes returning at last to their homes, or huh 
ply outsiders, who,, thanks to looks, dauCchw 
cumsiance or imagination, fed themsdveaaol 

to belong. Just how they adapt to— o r wiafd . 

ly flout-- the local conventions often becomes 
the focus of the story. . 

Marian, the distracted widow m Bride kifi. 
chad,” has spent the years since her buriatptf* 
death camped out in her father’s stuffy boose, 
trying to hold on to “a sense of the temporary 
to keep her s one," all the time trowing that she 
is not rcallv wanted there, that her life has been 
put indefinitely on hold. The narrator of **Al 
Swan Gates,” who has grown ro m InSa, 
living nervously with his father and his fathers 
mistress, finall y returns to the English town 
where he was born, in hopes of discovering ihk 
story behind his mother’s death and ctxnmgjg 
terms with his family past Uncle Jak e, on e of . 
the central characters in several of there sto- 
ries. suffers from “a private nature Which 
pimad naturally to private t hin g s ** — while he 
is continually idling bis nephew about , the 
importance of learning, he conceals his kweerf 
poetry from his bluff soldier mates. 

Although Blythe displays his usual eye for 
detail and a great tolerance for his characters’ 
foibles, these tales suffer from an air of contriv- 
ance that is absent from his no n fic t ion- With 

the notable exception of a fable about a diagoo 

and a lady that is funny in a children’s book 
son of way, most of his stories are old-fash- 
ioned exercises in realism that too often pivot 
upon overtly ironic sit u atio ns or feature char- 
acters whose hypocrisy is suddenly revealed. 

In addition, the ruder becomes irritated 
with Blythe’s penchant for explaining all the 
paints be wants to make. Instead of trying to 
dramatize ideas or emotions, he tends W 901; 
the reader exactly what to “Lotus Jost 
faith in Saul.” he writes in “The Church 
Mouse,” “the delirious aura of his magnetism 






BRIDGE 


^■'Ate.XcoRxijcc. 


O N the diagramed deal. 
North and South bid to 


DALLE 


V-/ North and South bid to 
six spades. Hie opening two- 
dub bid was precision. It 
showed 11 lb 15 points, with at 
least five dubs and usually 
more. North’s first response of 
two diamonds was a relay, ask- 
ing for more information, and 
his second-round jump to four 
diamonds was an asking bid. 

‘ .South’s response showed to 
the ace and long, by agree- 
ment, and North plunged into 
six spades. This was rot a good 
contract, but South capitalized 
on a favorable lie of the cards. 

He. planned -to- .draw., three 
rounds of tramps and lead the 
heart nine, hoping that West 
wonM duck, hoiLdmg the ace. 
But when the ace and king of 
trumps brought a heart discard 


from East he had to switch 
plans. He had to try for a re- 
; mote dinner, a dob distribu- 
tion that would allow him to 
avoid the loss of a trick in the 

. JSUfL 

Instead of trying to avoid 
the loss of a heart bide, he had 
to uy to make one. He entered 
his hand with another trump 
: lead, led the heart nine, ana 
guessed right by playing the 
jack from dummy. East won 
and returned a diamond. 

South won and led the dub 
queen for a finesse. When this 
won , and the nine fell from 
East, South be^an to feel hope- 
ful. He continued with the 
jack, and West covered the 
king. When he won with the 
ace and saw the ten appear. 
South was a happy man. 

The heart king was cashed, 
permitting a diamond discard. 


and the right of dubs 
played West had to foL*s 
with the seven, and Sooth 
thankfully led the last trump 
from dummy and claimed Ms 
slam. 


NORTH 

4.AKB3 

9KJS4 

092 

*A83 

WEST EAST 

OQS 82 Hill *A10Z$J2 
OQ8S3 O J107Q 

*K74 *109 

SOUTH (D) 

*QJS4 

09 

OAK* 

*QJ632 

Both sides were vulnerable. The 
Uddtag: 

Small Wot North Eta 

2* Paw .20 • Pius 

2* Pass 4 O' ftas 

SO Pass 6* 

Paw Pass "'■*» 

West led the diamond lixrae. ... 


CADAFE 


TXC 

_ 

□ 


JERPUM 


THE ONLY TIME 
SOME PR1VERS OSEY 
THE S PEEP LIMIT IS 
WHEN THEVKETHIS. 


SPORTS BRIEFS 


U.S. Swimmer Sets 50-Meter World Record 


in 2d for Title 


Now arrange the circled totters to 
form the surprise answer, as sug- 
gested by the above cartoon. 


Answer in a 


AUSTIN (AP) — UCLA’s Tom Jager set a wwkl record in the 50-meter freestyle 
on Friday, the first day of the U.S. Open international swimming meet- 
Jager famed earlier in the day that FINA, sw immin g’s international gsveming 
body, had voted recently to recognize the 50-meter freestyle as an intanatianal 


By Phil Berger 

New York Tbnes Street 


(Answers tomorrow) 

Jumbles AFTER IMPEL MUFFIN TWINGE 


Answer What a blizzard might do to dally Ilia— 
■■WINTER-UPT" IT 


record is really something to be proud of, and that gave me ah incentive that last 25 
metm.” 


WEATHER 


Sooth Korean Wms junior Flyweight Tide 


Moron* 

Berlin 

Bnmeta 


ZV&9PE HIGH 
C F 

Ataorv* 17 a 

AmUMorn 6 43 

Atoms ia 64 

BorateM 14 5 7 

Moron* 16 61 

Barilo 9 4t 

Braweta v 48 

Bwcfwnat M 57 

BBdoMst II 52 

Copeohcmn 1 34 

Cajto Del Sol 13 ss 

DoWIn 9 * 

EdUUmra* 6 43 

Flame* U 5V 

Frankfort id 50 

Gama 8 4* 

HaUhkl 4 27 

l lt o wb ul 14 S7 

Las Palms 22 72 

Lisbon 15 57 


LOW 
C F 
13 a a 
2 36 ta 
10 SO d 

6 <3 d 

1 34 fr 

7 45 a 
4 37 O 
-I 30 Ir 

2 36 o 
-19 m 
I t » r 

3 36 fr 

2 36 a 

12 54 0 

I 66 a 

3 36 a 

-17 1 O 

7 45 fo 
16 61 d 
V 48 d 


ASIA 

Baaokek 

HIGH 
C F 
32 W 

LOW 
C P 
22 72 

fr 

Doll mo 

-3 

27 

-15 

5 

fr 

Mono Kona 

22 

73 

16 

61 

fr 

Manila 

32 

90 

24 

75 

ah 

Now DUN 

24 

75 

10 

50 

fr 

SwnX 

-2 

21 

-e 

lfi 

fr 

5Mwrtm 

4 

39 

■l 

30 

fr 

Skwapora 

27 

B1 

24 

75 

Bf 

Totofll 

19 

66 

16 

61 

0 

Tokyo 

11 

9 

7 

45 

0 

AFRICA 

AiDai 

17 

63 

5 

41 

a 

Cam 

22 

72 

W 

50 

fr 

Cape Town 

24 

79 

14 

S7 

d 

CMuMaaaa 

17 

63 

12 

54 

Hi 

Harare 

24. 

79 

17 

63 

o 

LOOOm 

29 

84 

22 

72 

0 

Ha mill 

25 

77 

16 

57 

0 

Timta 

19 

66 

10 

9 

fr 


■ TEAGU, South Korea (AFP) — Yn Myung^ Woo of South Kwea won the Wadd 
Boxing Association junior flyweight tiue Sunday by defeating the champion, 
American Joey Olivo, on a spat decision. 

Judges Samuel Conte of Puerto Rico and Carlos Berrocal of Panama scored the 
15-round fight 146-141 and 148-142 in Yu’s favor. Judge Jesus Cdis of Venezue l a 
had CHzvo ahead, 145-143. 

Although there were no knockdowns, Yu’s aggres si veness paid off in the 11th 
round when a straight left and a right hook to the jaw made Olivo back up. The 
champion, his legs wobbling, survived only by clinging to the challenger. ' 


LAS VEGAS — Donald Curry, 
who has sought to be counted 
among the' due of boinng, took a 
riant. step toward that objective 
Friday night when he scored a 
s tunning -knockout over Milton 
McCrary at 1:53 of the second 
round, and became undisputed 
world welterimght champion. 

Introduced .as “The Lone Star- 
Cobra," Cnriy, of Fort Worth. 
Texas,-made good cut tbe-name. He 
struck early and with the kind of 

power that quickly pot a amfused 

kxdc on the face ctf McCrary, who 
came' into the ring as the Wodd 
BGxmgjCooncfl tituhedder. .. 
Carry, the Wodd Boring Assod^ 


athm champion, threw a left book 
to tbeheadlate in the first round 
that, sent McCrary ^ 'reding back, 
seamst the iopes and fien into 
Cuny*scoaie& 

- McCrary covered up, and sur- 
vived tiie round. But with that 
punch, Curry, 24, saised he could 
driimnate the native of Detroit 
McCrary attempted to box in the 
- second round, -but he . could not 
lKdd off theWBA champion, who 

».i a .i — . i 


in the past. A left hock fo the chin 
dropped McCrary onto bis seat 
and he strunUed once before, he 
rose to Iris, fen, taTring tbe manda- 
^^ eagfatL-coont from fiie referee 

"He de&iitdy knew he’d been 


hit," said Lane afterward. “After 
the knockdown, be said to me, Tm 
OBL’ His eyes wore dear. He fo- 
cused right on me.” 

Curry wasted no time in finish- 
ing McCrory, 23. He hit him with a 
picture-perfect right-hand lead that 
sent McCrory sprawling onto his 
bade, and Lane counted him out. 

“He was poking the jab out 
there," Cuny said afterward, “and 
I saw that I could step inside it I 
thought Milton was a lot faster. 

“He wasn’t as strong as I thought 

he was. And once I realized thw« i i 
started moving in. After he went 
down tbe first tone, I knew the fight 
was over." 


Cutty’s 24-0 record now includes 
19 knockouts. But until Friday 


Kiehl, Steiner, Mair Win Cup Ski Races 


LATIN AMERICA 


From 

Reykjavik 


annnAim sun 
Caraass a B 2 20 

Lima 54 B W 

Mw*e»CHr 20 « 6 

RtottaJomir* — — — 


SESTRIERE, Italy (AP) — West Germans Marina Kiehl and Mjchada Gerg 
RrmHed 1-2 in the giant slalom Saturday that opened the women's World Cop. 
skiing season and Roswifia Steiner of Austria edged Erika Hess and Brigitte Oertri 
of Switzerland to win Sunday’s slalom. 

In Val DTsera, France, on Saturday Italian Michael Mair wot his first cup 
downhill with a two-heat docking of 2 minutes and .1 32 seconds down the 3,298- 
meter n0£20-foot) course. Mair was M seconds ahead of overall cim champion 
Marc GiraxddE of Luxembourg, who achieved the best downhill mash of his 



NORTH AMERICA 


StKMnbn 

Stiwtoera 

Vertex 

Vtama 

Warsaw 

Zorich 


AiKhoroM -6 

Atlanta 15 

Boston 6 

CWcbm 3 

Poor er 3 

Detroit 3 

Koaoiulo SB 

Heestaa 34 

Lot Ac 0 0 IM 20 

Miami 2s 

MbMOPeUi 4 

Momraal o 

Haw 28 

Hew York g 

See FraHdMA 14 

S eotlM S 

Toronto — 

Wakbmaa 10 

frawere ot t ; pe-pqrtiy ( 


1 45 to 

3 37 ta 

6 43 O 

3 37 0 


MIDDLE EAST 

Ankara W X 


Ankara W H 

Mrat — — 

Damoccec — — 

Jmvntan t? 66 

TelAvl* 23 »3 

OCEANIA 


— — no 
II 52 Ir 
I 41 d 


Aacktoad 30 al 13 ss o 

Svdeev 30 U 22 72 st 

ct-doudv; ta-tanar, Ir-talr; h-bcril: 
OMiMoin: sw-ooow; S-otarmy, 


Kidd negotiated the Kandahar-Bandieua trade, which dropped 475 meters, in 
1:28.44; Gog was timed in 1:28.66. In Sunday’s race, each of whose runs ware 
flagged with 54 gates, both Perth and the former world slalom champion Hess were 
JO seconds behind Steiner’s 1:30.02 aggregate. 


Longer Takes South African Golf Tourney 


SUN CHY, South Africa (AF) — Berohazd Longer cf West Germany shot a ooe-. 
underpar 71 onSumlay to wm the Sun ChyhfilK(Hi Dollar Golf Qiallaige, beating. 
Lanny Wadkms of the United Stales by two strokes. 

Longer carded 278 for die72rhdetoaniamaiL Wadkins, cloang with a.73, was at 
280 while Made O’Meara of the United Slates finished third al 69—4281. 


MONDAY’S FORECAST— CHANNEL: Smooth. FRANKFURT: Ctovfr.Tenm 
18—7 (JO— 45). LONDON: Cloudy early, Mr Krtw. Tamp. 7—2 (45— Ml. 
MADRID; Ctauav early, fair letar. Tama. 8— 4 146— W. NEW YORK; Partly 


On Saturday, both Langer and Wadkins shot 68s to share the lead after Lee 
Trevino of the United States, the overnight leader, fell two strokes back with a 71. 


MADRID; Cloudy early, fair letar. Tenw.fi— 4 146— 371. NEW YORK; Partly 
Temp. 6 — 2 (43 — 36). PARIS: Ctoixty aiy. Mr kdar. Temp. 9—4 
. ). ROME: Cloudy. Temp, is— 10 (5* —SCI. TEL AVIV: Pair. Tama, 
33—10 173 — 581- ZURICH: Cloudy. Tamp. 8— 2(46— 36L BANGKOK: Foocv. 
Tenw.33— -24(91 — 751. KOHO KONG: Fair. Temp- 30— 15(68— SH. MANILA: 
Fair. Temp. 31—24 Ififi — 75). SEOUL: Fair. Temp. -3 — -fi (37 — It). 
SINGAPORE: Thunderstorms. Tema.® — 34 (84— 75). TOKYO: Fagpy. Toma. 
11 — 7(52 — 451. 


Quotable 


• Clndimati Bei 
Dallas: “The first 
cheericaders." 


arterback Boomer Eaasai. on Sunc 
that comes to nsy nrind about the 



is iheiz 
(IAT) Referee 




night, that unblemished record was 
not enough to establish Qiny*s ere- 
den dais as a boxing s up eh rt a fc one 
capable erf earning prases as fit as 
the cues Marvelous Marvin H&gler 
can command. * 

That should change with this vic- 
twy. Cuny nnlfified McCnay’s 
slick besting siriih with stutfiog 
ease, and tbe triumph ought to give 
the champion the staturebcanc^i 
camp fdt be has been u n jus tl y 

niftrl 

He mad e a believer of McCray, 
whose record is now 27-1-1. Ap- 
pearing at the news co nfe ren c e af- 
terward, McCrory shook his head 
and gave a sheepish smile. -“Being 
knocked out,” he said, “is afttriny 
thing. I never thought .rd be 
knocked out. I thought I had a steri 
chin. It seems unreal." 

He appeared slightly stunned by 
the turn of events and repeated 
three thoughts several times Wore 
gNing Cuny his due. “He’s a good 
fiStocr," McCrory said. “And JBcb 
him personally.” 

The two had been good friends 
dating back to tbe^sy* 
when they were succesrfnl anayfcr 
boxers. y:C‘ 

^McCroi/s parting words woe 
ihe Lord works m mysterious 

ways, m be back." 

As for Qmy, he now mnsterelri* 
ate his plans. Daw: Go rma n^ Ito 
mana 8«* had expected tlx: chtinpi* 
on to move up after tMs fight 
jumcr middtewagfat divisicKL and' 

the case with nindi Qairf 
made tte 147-pound wdierwpi^ri 
toDit, which in the past had been 4 
strain, caused Gorman to 
bit “Ifs stffl possSrfe DooaW#^ 
dtf caod tbe unified title once/i 
said. 

EaA filter received S7SO&0- 
fi^xt was 4,185, 
giSfiate.was irat uadtf 
TIte she of fiebopt d» 
ffiltoa Center, seats 9.000 peopfc 


i .1 — 


i.. 


\ 


■ - , 7- - : . p - .* 
























Page 21 







INTERNATIONAl, HERALD TRIBUNE, MONDAY, DECEMBER 9, 1985 



SPORTS 


‘ ' 

Oar StaffFi 

J MELBOURNE — Martina 

SrfS— 

d [S. 


for anodjcrycar,’ 

be tougher. ■ 


although “it win 


the 

minutes 


set lasted just 28 
avratflova moved 


quickly to the net at every opportu- 
nity and punished some loose shots 


rmd Chris Evert 
here Saturday :wilh a 6-2, 4- 
2 victory that gave her a third 

from her opponent with oisp vd- 

AUSTRALIAN OPEN teys.<al<» Stage ieradedoff 12 

77 — : . * - . — ; — , straight joi nts). Navrati lova broke 

, L " a S? v^Odttn’i wiiglew tide in die Anstra- ' serve in the fourth, sixth and eighth 
^ Open tennis championships: ' game s , dropping her own in the 

'^r 

'iai. 


yirpiff cfaanqiac n i hips 1 1 
' “1 wanted her and I go* what I seventh. 

i,* Nawatflova said after the . .Evert began to get into dsmatch. 
\ 44-mmute match before a 


; ^ wd of 9,600. “This win was 1 


20 Wfcurm and year out 1 
“5 Her SI00.000 first 


$100,000 first prize and a 



winnings 

^7>, 766,474, made her die first play- 
^m teams history to win JlOmfl- 
in oneyear. 

^ Cw>*boni left-hander, 29, 
5" :-^>id woo the Australian c banapjoi i- 
V ^se.ictipm 1981 and 1983; die also has 


^ Eisct^' Wimbledon, two French Open 
:,f! ' ita^bd two US. Open tides. 

Evert, 30, firm Ft Landcrdafe, 
3-.5k)rida, was also bidding for her 
‘ xi^^asA Australian tide. Tnmwwi, Nav- 
:rr - U) i^idlova beat her for the 35th time 
' " 7c. the two ifirst played in Akron, 


^ '.rj^ioo, in 1973. 
• -ii; "In the firs 


first set die upset my 


strokes to good effect m some long 
rallies. The only break came in die 

fifth pwM, by )wy tWO 

superb shots down the me. 

Navratilova kept scrapping* 
however, and Evert needed eight 
setpoints before winning. Then she 
raced through die final set When 
die took a 5-2 lead she held up a 
finger and called out* “Just one 
more game. 

“1 could wnrft that finish fine,” 
she said. “1 was just getting 
pumped up and it was getting bet- 
ter and better.” 

Evert, as she had m die first set, 
had tried to go tor too many win- 
nan from tlw» h n so lm n amt mufa 
too many mistakes. 

“Even though I ktt- the second 
set I felt in control” said Navrati- 



; Edberg, W i lander in Final 

Younger Swede Stuns Lendl in Marathon Semi 


Martina Navratilova: *1 got what I wanted.’ 


ConpUat by Our Staff From Us patches 

MELBOURNE — Swedish 
■teeiHmer Stefan Edberg created 
tennis history Sunday by defeating 
Ivan Lendl, the wodifs top-ranked 
male tennis player, in five grading 
. ytf in ■ delayed semifinal of the 
Australian Open. 

The 6-7 (3-7), 7-5, 6-1, 4-6, 9-7 
victory set m the first aH-Swetfish 
final in grand tia ra to un i ii iiflnl his- 
tory for Monday when Edberg, 19, 
the former Wimbledon junior 

rhampi nn will day Mats Wi- 

lander. Wilander. 21, who is trying 
to Vt""" * the third mgTI to win 
three consecutive Australian 
Opens, completed aram-ddayed 7- 
5, 6-1, 6-3 semifinal victory over 
‘Slobodan Zxvcjfaouoric of Yugosla- 
via mi Saturday. 

Edberg, the fifth seed here, 
played coaly trader p re sa ge in a 
maiA that was for Fri- 

day, was ramad out Saturday and 
lasted for more than four boors 
Sunday. He tod, two sets to one and 
4-4, when ram again began to falL 


woe off the court He was quietly confident erf his 
and 43 minutes. When chances against Wilander. “If I $3 

>~t Y . *1 ~1„., in,. T A- A I tli.nlp 1 ha... S- 


The 
for an 

they returned, Lendl promptly 
brake Edbergs save and tied at 
two sets each. 


r, I ihinlc 1 hflVC 

same dance, but Mats is a very 
tough competitor,” he said. 

The Czechoslovak got a service Wilander bolds a 4-1 career edge 

break early in the fifth set, but over Edbog and, in their only 
Edberg brake bade immediately meeting an grass, won in four sets 
and had three match pants m the in the ggnifinak here in 1984. 
Mg^aEof^hesqaa^ He had won the first two sets 
dered. But «gam he ralhed, tins againstZvqinovicand trailed, 0-1, 


time dosing out the match. 

Lendl, who was Jeered by the 
capacity crowd for his poor sports- 
manship, still was in a sour mood 
when he walked into the press con- 
ference afterward. 

”1 don’t call this Australian title 

a major ehomponraltq i J put it in 

the second class with the Masters, 
WTC and Delray Beat titles,” be 
said. *1 non rid nr myself fortunate 

to have escaped serious injury.” He 
received treatment for a kne e inj ur y 
after the thud set, but it did not 
B p p w >r to inhibit Ms movement. 

Edberg entered the press confer- 
ence carrying a can of Aussie beer. 


in the third when rain h»i»wi their 
m at c h Friday. When play resumed 
Saturday, Wilander took just 29 
minutes, breaking sera in the sev- 
enth and ninth g»nv« 

Five hours later, referee Peter 
Bdknger halted play for the day as 
yet another thunderstorm inundat- 
ed the stadium. 

Wilander, seeded third, beat 
Loidl for the title in 1983 and Ke- 
vin Correa in last year’s final. Jade 
Crawford was the Australian Open 
champion from 1931 to *33, and 
Roy Emerson woo five titles in a 
row starting in 1963.” (AP. UP!) 



Stefan Edberg 

‘If I play like J did today . . . . ’ 



Navratilova said she < 
with Evert, who has waked hard 
this year. “I know how much it 
meant to her to win,” die said. “I 
how die feds. I’ve been 


SCOREBOARD 


Basketball 


Hockey 


- x &.SO was beaten by Navratilova at 
‘ t- ht tfCfimbfedcn tins year. 

■ “It was frustrating. I have been 

r^’r^tfT^unk I canfind it in me to go 


T knew I had to Ireep coating in 
ff pti putting the pressure of 1 , °tiH j 
feh I had a better chance of break- 
ing her sera than she did of break- 
ing mine.” 


Then she added “I don’t want to c , . jttc r> ti c 
sound p r esu mp tuous, but before oCWCted U«&» v4Ul^6 Scores 

’ * “ s*nw W aH ilnotan tX Jocfceonville 77 

Hotv Com 1M. Ma nhattan 71 
McntMtt W, Wnt vkiHo IS 
■ ncvj-Loi vm m. Maryland a. OT 
Nn, HawMTf IS. Har w fl <2 


the match I called a Chechoslova- 
kian restaurant and ordered dock 

■tiH Mna t r mt and, nf creme, wine 

to celebrate.” (AP, UPI) 


nUMTi RESULTS 
SOUTH 

G eor g e t ow n 77, GrarnMlno St. 3D 

sounnresT 

So. Methodist m. Cant MkttDon 45 

FAB WIST 

CoUarii Barbara 7X wtashfewtan St 71 



es Out Long for HeLmum; 
McCaEum Runs Navy’s Upset of Army 


SATURDAY'S RBSULTS 


-Krt, 

'“--ass' 

-"»• lj 5Lv. 

^CcmpQedby Our Staff From Dbpatdm 
NEW YORK — Auburn tafl- 
rr.!. • ^Tadt Bo Jadcsmi, the front-runner 
* "iff the 51st Hdsman Trophy, won 


Am* M, St. Pater'S 51 
Boatan Cpl a. wok* Form to 
CtaHc M. AmDarat 58 
Oamacfla* 97. Basted u. 7* 
Ouwraana H St Francfa. Pa. a 
•Goarva Moaon N, Budmafl S7 


NorttMMHtara & Caraall Si 
Pam i* r P al— a M 
Pt l wcal u d 9. BoMflno Oraan a 
F— »Ka I stand 71 
vannaNl V7, MWdtebanr 42 
Vlltenwa SS. Wasnar <2 
SOUTH 

Oasmed 7X Saotb Cmttn M 
Outa TL vuvloia M 
Florida <*. a Florida SS 



CCMXEGE FOOTOALL 

■■■ -t^rmy and Oklahoma, ranked sec- 
m the wire service polls, 
-.r.^ shipped Southern Methodist to set 
• '■■'itp a meeting that wOl decide tile 

— itional rfumpinmihip when the 

■-■vraooers play top-ranked Penn 
tale in the Orange BowL . 

The 1 2 th running back in the last 
1 years to take the Heisman, Jack- 
in woo by the closest vote ever, 
iging the Iowa quarterback 
huck Long by L509 total paints 
~ 1,464. Bn^m Yom% quarter- 
■ jdc Robbie Bosco was third, with 
rnichigan State sophomore pi n n ing 
j-ick Lorcnzo mute fourth and 
diami University quarterback 
inny Testaverde fifth. 

Jadcson, a 6-foot- 1 (1. 8-meter), 
4 !2-pound (100-kilogram) senior 
iOm Bessemer. Atomuna, carried 
’8 times for 1,786 yards and~I7 
* Tichdowm this year, for his car 
- ; "" er, be has 3^28 yards on 563 
rries with 38 touchdowns. 
Jackson answered same ques- 
.ms about his toughness on Nov. 
f when, with two broken ribs, he 
riied for 142 yards and two TDs 



NalkmalBa^ellianAfifiodatumStiiii^iigB 



Di«darS-WS-n9iBlnlM»saaa«teHaii7- 
UH11. mtwR: Portend 57 (BowtoUl, 

icwwntA — i wm—w tw- 

I 71, Boston 2S (Alnoo »1. 

M 23 U IF—03 


WHOM IVaDT-lS 23. MvoreMSM Mj Mon- 
Criaf U-UHa CumroJno* 4-11 F10 U. B»- 
1iT-fT ^r- - ICummlnaB 13), Atlan- 

ta 44 (WBktaa IS}. AMtelm: M mm*— IS 
(P—nr, Modm 4», AHonta as (Wvm M). 
Cl I l.l 22 24 27 E — 131 

Saa A Hoti 2i 11 22 27— 121 

Oarvta 10421431,0—7-114-420; Ratiart- 
*an 10-17 20 ZL Offlnara 7-11 0-12 2t Ite- 
MMc OileaMda (COrzlno m^on Antenlo 
4»<Retartean TO. Aotei: Odano 25 (Pn*- 
*on 5), San Aafante T9 IRetwrteoa 7). 

VM 22 » If 10- n 


Dote 

11 

8 

J77 

2V8 

Phneehr 21 29 17 29-111 

Utah 

n 

TO 

MS 

Tfx 

Nonce 0-154828, Davis 7-20 2-2 20; Dnittay 

Son Antonio ' 

ii 

10 

-924 

Th 

4-14 471Z Grant 8-1224 15 Matoas415 48 1Z 

Sacramento 

7 1J JSB 

Facflta Ptvtalio 

1 7 

RohisoOn Utah 47 (Malone 10), Phosntac 58 
(Nance m. Aaeteta: Uk* 17 (Stocktaa O. 

LA. Lakea 

• 17 

2 

MS 

— 

Phoenix 22 (Davta 11). 

y* | eiim_iT 

rUf IrUB 

13 

11 

SO 

Oh 

IliPBtaO O V 22 2ft— 112 

Seattle 

* 

12 

AS 

■ 

LA. yesn - 28 M 38 38— T20 

AbduKiabbm- 1741 1-32Z 9coit tv-if 23 28; 

Golden State 

7 

M 

J*1 

TO 


Florida SL n. w. CaraBm n 
Caerola Tach M, Oaanria ts 
Kantou 71, N. Carolina St 54 
Kantucfcy 41 IraSana 58 
Loutevna 77, Pardua 58 
VWbIppI 7a Alcorn si 70 
North Carolina 114, Rutean 71 
Tama— m. T«ta» aom 78 
VandarbRt ts. Baylor 41 
Viral nia Tacti 71 VO. CMune—aH 
MIDWBST 

Bradtev 44 Mamuatte 44 
Dayton n. Lana Iteaad U. 4» 
DwmH 41# lIBnote 51 54 
Drake 77, Iowa St 97 
lUnali MS. UMi St. 44 
Km SL KL Ton* TtUi 57 
MUcMean th Florida Southard 48 
MteRtoan SL ft Coaldn 41 
WUnnmlB nun— 44 
MtaOHri 47, SL Banavaatura 5S 
l 71, CroteMon SB 
I 72, nL-CMeaoa TO 
1 71 Loyola. 1U. 5i 
OMa SL n. CMaid St 95 


llo Won 74. SL MaryV. Tam 45 
W. Tam SL PL H o n a n B. 42 
Okhdioma SL 7X Oral Mu 71 
FAB MIT 

Air Farca 05, UX Mwo dted «2 
Ariataa 44 7L ArBana 57 
SYU-HohoB 7* WMTttor » 

Col Honda 40, MonOowc 8L 42 
Colorado 74 Wyoming 71 
MomoMo SL 8a From SL 54 
N. Mexico SL m B teM To Bi M SL 44 
Nov^lteno fh Ccd-Davfx 77 
PoaaarAio n, CaMrvtao 72 
Souttwra Col 44, Cotarado SL 53 
UCLA K Lena Baacfi St. 44 
WndMon 72, Tutea 48, OT 
Wpbor St A Uhdi 47 


Stetson 74, Brooklyn CoL 97 
Loyola JHPd. ■». mr dO i 8 U im 


N HL S tandings 


WALES CONFERBNCE 


Loyola, Md. 47, Stetson 42 
Hardln-Slai 87, Bldyn Cot. 74 

lam i 


Illinois 77, E. Kentucky 54 
Ulan SL IX Murray SL 7* 
racmolpqpkli: Illinois n% utaA st 44 
TIM Pteeo: Murray SL 41 E. Konliidcv 41 
Jap Laaruirk Mo ira rtol 
CkomMooMdK SL JeteiY BL Pteloh Dick. 54 
Third Pteeo: Columbia 81 Hotstro 40 


To m CMdkn O. Srtoham Youna 50 
Arteona St. ft Fordhani 40 
ClniteilWIOhli : Arizona St. 71. TCU 48 
TbM Pteeo: Brianom YOuae 73b Fordham 72 


First i 

Canzone 42. Howard ML OT 
tana 73. Lteoyotto S7 

Iona 74. Oenzaoa SS 


First I 

pram SL 47, ToaQ» Artteoton 43 

MnMlb St 75, HomoU LOO 52 

Third Pteeo: Texas-Ari. 77. Hoaon Laa 82 


Ttenate 47. Twister Todt 43 
Wieblia SL 78. Portland 54 

Tomato 42. WJcWta SL «0 
sTocii 48. Portland 54 



W 

L 

T PtS GF GA 

PMiadetahta 

20 

7 

D 

40 

123 

77 

naranmn 

18 

7 

3 

35 

108 

78 

NY letonoera 10 

10 

6 

28 

94 

US 

NY Raneeri 

12 

14 

1 

25 

98 

72 

PlHeburon 

11 

13 

3 

25 

102 

95 

New Jersey 

11 13 1 

Adame Dtvtsten 

21 

*3 

Ml 

Quebec 

15 

19 

1 

31 

Ml 

83 

Boeton 

13 

7 

4 

30 

Vtt 

72 

Montreal 

13 

10 

3 

27 

111 

79 

Buffalo 

13 

12 

1 

27 

94 

82 

TTorTroro 

12 

12 

0 

24 

77 

77 

CAMPBELL COHFIRIHCE 
Norris Division 


SL Louie 

11 

11 

3 

25 

88 

*7 

Chicago 

7 

12 

4 

22 

7* 

113 

Minnesota 

7 

13 

4 

20 

*8 

104 

Detroit 

7 

15 

4 

11 

85 

120 

Toronto 

7 16 1 

Santa# Division 

17 

98 

11* 

Edmonton 

1* 

4 

4 

42 

142 

100 

Coiaarv 

IS 

8 

3 

33 

114 

91 

Winnipeg 

7 

16 

3 

21 

94 

UI 

Vancouver 

9 

17 

3 

21 

107 

125 

Los Anastas 

6 

16 

4 

18 

88 

135 


ELY. 



Tnas Soutitern 54 
, Houston Baptist 51 
to Tokos-ei Praa 44. Pi Am. 50 
TkM pteeo: houl BooNst 47. Tom Sol 40 
UTC i 


TDUBMAMBHTS 


AHted H JMr Jar 44 
Third Pteeo: Bwrtden sr. Qmidtio S3 



IhMaM Bi 

Despite an elbow in the chest from Matt Buckner, Navy end 
Tray Saunders held on to tins pass for a first-period score. 


-LA-CItenora -i -- 

FRIDAY'S RBSULTS 

27 34 27 3>— 322 
23 22 20 24—121 
EnsUdhlMiMMNottTi-UMastMaiano 
4-14 M-W 2L Oa b 0-12 23 18. B lOl— 4 0: 
Dam 27 (NattV}. PNiodMoMa 51 (Barhtev 
14}. AteMto Domor 35 (Honztt r>. PMtadM- 
oMo 28 (Chooks II}. 

HUM 2V— S3 


Stanford 127, Yolo US 
Rich mood 75, SL MaryX CollL 41 
Cteaptadb: RkSmtood 57, Stanterd 53 
Third Pteeo: SL Monte. Coot M. vote 81 



Bo Jackson 


on 31 carries before Auburn’s last- 
second loss to Alabama. 

Oklahoma 35, SMU 13: In Nor- 
man, Oklahoma, the Soooers tal- 
lied 21 pants in the second quarter 
to erase a 7-0 deficit Their tail- 
back, Spencer^ HHman, scored from 
a yard out at 14:52 of the period, 
tying the score, and 16 seconds lat- 
ex freshman quarterback JaxneDe 
Hoiieway scored on a 38-yard ran 
after SMU fumbled. 

On their next possession, the 
Somers went 68 yards in 12 plays, 
Patrick Collins scoring from the 1 1 . 
A penalty against SMU feu: rough- 
ing the punter kept the drive alive 
after it had stalled at midfield. 

Oklahoma (10-1) won its seventh 
straight. 

Nary 17, Army 7: In Philadel- 
phia, McCaDum — seventh in the 
Hrisman voting — gained 217 
yards and helped set nn 10 fourth- 
quarter points as the Midshipmen 
won the 86th meeting between the 
two service academies. 

McCaHum increased his NCAA 
career aH-ptrrpose yardage record 
to 7,172, and set an NCAA record 
for aO-pmpose plays with 1,137, 


wmtam 15-04 7-8 37, TtedMe MJ M 18: 
Searra* MJ 3-4 U. Swine 5-14 >4 12. mm- 
■ n o te : Now York 44 (Ewlna. TTwmtoo 7), 
tedh—41 CTtadotePi.Atetoto: Now York M 
(Orr, a ao nii w 2). iraSteW 27 (FtemOw to). 
Seattle 20 21 21 25— W 

W—bOutea 22 38 24 27-T15 

Matane 14-22 5-4 37. WfflUarns UF14 4-7 24; 
Qte m bor e W 1 V14 24. MeOontel WI7 1-glf. 
B H ioad r Soottto22iaid4na7}. 1MMldn o to w 
SJ ( RaKwd 7) Jltetsts: Soatllo22 (SBaito.Hwv 
dorian 4), waste neton 20 fWTHKra 4L 
P ortlan d M 22 27 34— «1 

Kanay 1VU m 22, Cottar 54 U-M 22. 


Tennis 


breaking the record of 1,120 set by 
Tony Doraett at Pittsbnrgh. 

In addition to carrying the ball 
41 times, -McCall rnn cangjit one 
pass for 10 yards and retnrned two 
IrickoBs for a total of 49 yards. He 
carried eight of the 10 plays as 
Navy drove for Todd Solomon's 
victory-ensuring 26-yard field goal 
with 1:15 to [day. 

McCalhun’s six-yard rrm on the 
previous possesaon set up Chuck 
Smith’s five-yard run up the middle 
that made it 14-7 with 8:26 toft. 

Navy held Army’s wishbone of- 
fense to 192 yards on the ground, 
about 160 yards below its average. AnwfcraKgn Onwi Rrenha 
The Cadets stalled in the second - 

half behind backup quarterback 
Tory Crawford, a sophomore. 

Crawford had replaced senior 
starter Rob Healy, whose left 
shoulder was separated before the 
first half ended at 7-7. 

Healy was faun on fourth-and- 
one at Navy’s two-yard Ene. He 
h»d driven the Cadets 70 yards, but 
on the crucial play, he faked to 
fallback Doug Black and was hit in 
the backfidd by cometback Steve 
Brady. (UPI. AP) 


Baboon 74, FWtera St. 44 
TWrd Ftaoo: MoM^BotooanNowaort COL54 


HettenlM 11-17 11-12 3L WIMm 4-22 44 
14, M. JeteHOn 5-10 0-1 14; Bawto 0-12 44 22. 


Marlfeto Novradtlewa, UjS,doL Cbrte Evort 
Ltovd.UA. 44. 44,4a 


A— tea Ha« 

FRW l 

> MOS *S 32. Otalwwon 144M-M-27. Ala^BIrmlngtetei 71. Lotiteh 41. • 

: Houston 41 (OtoTiradn U). LA. Artaanai SL M. Iowa 42 
I {Lucas, Oran, *), Assists: Houteon CkaraotaMbte: Atab-Birm. 70, Ark. SL 97 
38 ISonteteto, Uin»7). LA. LiWrite iJotei- TMrd P teeo : lowo 07. Lsnltei 48 
■on 14L 

. SATURDAYS RBSULTS 

2* 28 *1 37— *22 
27 28 to 25-112 
Woodson 18-14 74 2k Thaos 7-15 10-12 28; 

Thomasto-ll7-827,Tr1puckn7-134-£lLLona 
5-TT84IM. R I0 i nis- SoeranMateTJCEjBbn- 
son T2J, Datralt 45 (Latmboor Ui. A win: 

SacranantaSi niteitetl.DatrattZS rnnRm 

m. 

Forttood 21 a to 38— 184 FRW Boon 

Syraoteo 77. La SoOs 72 
MOW 72, onto u. 42 
CtavtaaatlF: svracuw 87, Now 47 
Paxaon 577 44 22, Drsteor 4-11 54 17. ten Fteco: OMo u. 70. La Salto 15 

■quart,: Parttad 42 (Bawto W, Now jwiay 
54 (WlSIwiie 17). s s s k te : Porttaid 21 
(Draidsr.ThDnwwm 41, Now Jarosy 31 (Rk2v- Montaao 84, Son Dtooo 47 
antoaa 72). S. Aktoama 73, M etis sis SL 58 

Denver to 27 21 28-W8 Ckten »ls8 rtl»T Montano 21. 8. Atabomo 44 

CfnnlteiO to SI 2) 28— UI ThM FteOK Son Dtor> IL Mrt lli ss St 44 

Froo1M4M31, Hubbard 10-14 *4 22: Bn- 
OMlU48442a Cooper 5-1 1 74 18. Robteteds: 

Oanvor 44 (Nett TO), qn iota nd a (Hubbard 
10 A^ toi: Donvarto (Loiter n.Otetetandto 

(Boater 14). 

Idlll Stata 97 22 M 82—118 

Moo 29 29 S3 27—128 

totew im 1 2L Deals 7-11 5417; Corroa 
TH8 54 27. Floyd 1 VI* 7429, abort 444 04 2L 
R s h s —rts: Ou ldiii Sta te 47 (Smite WI.DWkte 
4S(Fw*teo,VteC17) 88NNT nslilsuSluls CDLLBOM 

W(H«d ill, DOU08 27 (HorrarT. ALABAA4A— Cxtandadttweantrodot Rov 

iZX Wto to 2=m Ptekkte.faoteo .1 raoeb. tar terra won. 

Otaluwon 1443 57 XL Somooon 8-U 44 20; 


Morrar 4L TiLOMttanoooa 57 
Col Southern if. E. Tsitosw SL 44 
Oteditlt: Go. Souttwm 5s. Atartor 52 
ThM Fteco: Tsnrv-ChaL 77. E. T«m. 5L 47 


W. Ksntocky Ml, Cte mul naas 75 
Aabara IB Koteucfcy WMovwi 71 
n iateolsoshto: W. Kontocfcy 7L Auburn 50 
TkM Fteoo: Qiwntaado4L Ry. Rtotoovanli 


World Cup Skiing 


FRIDAY'S RBSULTS 

I 2 0-8 
3 1 1—7 

PJkBtny 2 (131. Anderson (8), Patamant 
(4). Coutot (15). Ashton (41. Price (2li Dtot- 
ter (7). Fetvin (41. Bowy (171. Sbota oa goal: 
N.Y. IstaDdors (an Caowllnl 7-84—24/ Qua- 
bee (an Smith. Hrudw) 15147-34. 

V ra co u iter i o o-l 

Now Jonoy 2 2 0—4 

Breton 2 (71, Summon (71, Adorn* (7): Lo- 
mov (n.SMtiMooaJ: Vancouirar (an Rosrti) 
7-11-7—25; NowJoraav (on Cocrlca. Bradnir) 
7-44—17. 

0 1 2-9 
0 0 1—1 

error 2 (7). Lomtoux (14); DvMra (3). 
Slots an coal: P m s bw oli (on Barrawo) 515 
*-30; ButMo (an Ramona. Ms lochs) 1T-4- 
13—27. 

Ollaooa 2 0 0-2 

CMBWY I * 7—5 

W8san2 tlD.Foellnskl (tt.Sutor MI.Loab 
7; Larmr (*}. Socart (to). Sbota mm goal: 
Oilmoo (an D*Amourl 74-12—24; Coiaarv 
(an Snivel 7-17-10-34. 


N.Y. | 


HORN 

DOWNNILLL 
CAI VH « 

1. Ml c h u te Matr. Itwy.2 mteotan 132 aoB- 

J. Marc OlrontaUL Laramboura, 1»ML 

2. Potar W l msboroor. Austria. 2:0197. 

A Pater MOtkr, SwRzsriand. 2:0225 

3. Staton Nloctano 
A ConraOn CattnmMt, 


Transitjon 


lliwlisn l Hotter LOOWte 

WASH I NCTOH— ■ Tradod Doua Jorvla, c 
tar. to Hartford tar Iwoon P s tta rws n. I 


7. PMHmw vornoroL Francs, and Anton 
Stainer. Austria T.02M. 

t. Leonhard Stock, Austria 2:0247- 
w. Helmut H W ta te wr. Auatria 2:82A 

OVERALL STANDI MOS 
L Karl AM aor, aw m o rtui o f , St points. 

L Potar MU nor. SwttzortonCL 44. 

3. Potar Wl r nsboraor, Austria 24. 

4. Marc OtrantoMt, Luanmbouni. 33. 

3. Hoftaut HBltahnor, Austria 3L 

4 Markus Wasmator. West Cormanv; Rok 
Patrovic. Yugoslavia and Michael Malr, Ita- 
ly. 2 S. 

«. Douo Lewis, UJL 2L 
10. Baton Krlzol, Yuootoavta 2L 



P rsrt A nn noonaU J»ond Christa van Rons- 
taro. South Africa dt(. Mark Cdmondm and 
Kim Wtarwfdr. Austrota. 54 7-4. 54, 6-4. 


WbobWas 12-15 M 24 Dal toy 4-13 10-12 IE. 
Rakeon dr ; Cblcaoo 28 (Croon 4). Houston 51 
lOtahnwoo 15L Aatostei C Mcn oa 2) (Wad- 
rtdoo 7). Houston V (Lucas 14). 

M 29 38 20-121 
21 20 to 18- 71 
Dardtayl0to772E Hanson 0420414: John- 
son 7-17 53 17, Whtto 4-13 44 IE Rsk.wids: 
Utah 94 (Estonia) ; LA.caooora9l (Coos 18). 
AstotaB Utah 40 (Stockton 14), LA. CBMwra 
23 (Nltoto 4). 


teroufih ttw 1*70 aoosen. 

LOUISIANA ST ATE—Gavstooteodcooch 
BIN. 


European Soccer 


3engals Crush Gowbojs, 50-24 


'aiifikdtf Our Stiff From JX^Bcka 

CINCINNATI — Quarterback 
om« Esiason threw three tooch- 


NEL ROUNDUP 


a 5-yard Nol Lomax pas for a 
thud ta 


: " s staggered Dallas with 22 first- 
■ utcr points and rolled to a 50-24 
• tknul Football League victory 
Sunday. 

- The Bengals trapped quarter- 

- 4 Danny White for a safety cm 

game’s third play and then 

- eked the Cowboys with three 
chdowni Wb than trine minutes 

. , J the game. It was the most first- 
trier points ever given up by a 
. ^ '^hoy twin, and the 50-point to- 
: . was the highest against Dallas 
’- : ■ * a 54*13 shredding by Minna- 
im 1970. 

. v - lie 9-5 Cowboys came into the 
. oe hading the National Confer- 
. -.»e East by agame over the New 

- k Giants. Toe Bengals stay in 
-tentkm in the Amoican Con- 
: nee Central witii a 7-7 record. 

aasen threw scoring passes of 
' V S and 58 yards, reqJertivdy, to 
'.' .•fie Brown, Steve Kreider and 
Cris CkdHnsvrorth; the Bengals 
.•by 50-10 before Dallas, which 
■ ttitted four tumovas. dosed 
i two touchdowns. 

V ; tiriots 23, Lions 6: In Foxboro, 
,- sachusetts, Tray Eason threw 

- - . -■ me touchdown and ran for an- 

- r and Craig James became the 
. ' player to rush for mare than 

/ ' ; yards against Detroit this year 
. • - ew England beat the Lions. 


With their fifth consecutive 
bone victory, the Patriots im- 
proved their record to 104 and 
kept a share of the AFC East lead. 
Fmling to get a touchdown for the 
fourth time this season. Detroit (7- 
7) lost its seventh consecutive road 
game. 

Jets 27, Buffalo 7: In Orchard 
Park, New York, Ken O’Brien 
threw three TD passes in leading 
the New York rets past Buffalo. 
O’Brien, who completed 25 of 40 
passes for 370 yards, threw scoring 
passes of 20 and 2 yards to Mickey 
Shuler and hooked up on a 96-yard 
touchdown play with Wesley Wal- 
ker, die longest pass completion in 
Jet history. 

Bears 17, Colts Kfc In Chicago, 
Walter Payton, rushing for more 
than 100 yards for the ninth 
straight week, went 16 yards for a 
touchdown late in the third quarter 
to snap a 3-3 tie and spark the 
sluggish Bears past Indianapolis. 
Caiwn Thomas added a 3-yard TD 
mn midway through die fourth 
quarter to hdp Chicago finish with 
an 8-0 regular-seascai home record, 
the franchise's first undefeated 
ttwrlr at homo since 1956- 

Canfinafe 28, Saints 1& In St, 
Louis, Stump Mitchell scored on 
runs of 5 and 16 yards and pulled in 


the 




touchdown m 
Cardinals past New Orleans, 
nmg hack MilcheD, starting a fifth 
straight game in place erf injured 
Ottis Anderson, gained 158 yards 
on 28 carries. 

Qk£s 3B, Falcon 10: Is Kansas 
City, Missouri, Todd BbcBe dg e 
ed for 219 yards and a career- 
three touchdowns to pace the 
is* pasting of Atlanta. Black- 
ledge completed Ms first seven 
passes for 190 yards, induding a 
70-yard scoring hookup with Ste- 
phone Paige. 

Redskins 17,£agtes 12: InRrOa- 

touchdown as Washington beat the 
Ea^esagdtqHaKveitsmatbemat- 
fcal chance for a fourth consecutive 
NFL playoff spot 

Dofefams 34, Patkos 24: In 
Green Bay, Wsconsin, Dan Mari- 
no passed for 345 yards and five 
TDs — two in the fourth quarter — 
as Miami held off the Puckers. 

Marino Ht .tight end. Joe Rose 
from two yards out with 3:18 to 
play, and Dan Johnson an a'61- 
yard some with 2:10 left. 

Miami led at -the half by 20-3, 

Juventus of Italy celebrated Sunday's victory in Tokyo over 
James; Eddie Lee Ivoy scored with Argentines Jnnjors for tbe unofficial world dnb soccer 

8:32 to play and A1 Dd GrecoV championship. Jpyentns won, 4-2, on penalty kicks after the 

kick gave Green BtQr a 24-20 lead, teams had played fiiroagfa a 30-minnte overtime to a 2-2 tie. vamaVavTo 


Tfcs A uodctodPrsa 


WaST OCRMAN FIRST DIVISION 
Boetwnt Z Nursmbora 1 
Frankfurt Z Colaons 2 
Kalssrslautarn L Hom ta ro 2 
■tenter Braman X SctaSeo 1 

Bayern Muntah Z Bayer uonSnoon 1 
BorusHa Dortmumi 3. Saorbruscksn 1 
Mannheim z Fortune Du m ss ta n rf 1 
Bavor LMtertaissn 4. Honnmsr 1 
Potatt: WOrtor Bramen27j BararnMunkb 
9t: BerussteMflctohon nh tabac lw Homburoa: 
Bayer Loitertamm 2Z* Wotabol Mermholm20: 
Bochum if: StunaartU; Catenas 17; Baras- 
sfoDertmmLBaysrUsrdlnesn.Kalssrs)au- 
tarn U; Frankfurt 15; SdMka Hsmow Ui 
Saarbrvsdcsn TS; Hurombora M; Portuna 
tk 

ENBUSH FIRST DIVISION 
1 , awtoso 1 

Leicester l Mandiostar aty I 

Uwpat z Aston Vine o 
Luton Z Mowcaotta 0 
Monctatfsr United 1, HMdiO 
P u s s n s Park I 1 wr s 8. Wet Ham 1 
C hstftaW WteO n o irt ov Z Netthiabom Forest 1 
Southampton X Arsenal 0 
Tottenham 5. Oxford 1 
■test Bromwich l Everton 3 
Birmingham i, Watford 2 
Potato: MoochHtor United 44; Liverpool 
44; West Ham 41; CtaNoaStaRtaldWOdaoto 
dev 39; Everton 37; Luton 31; Arsanal 32; 
WtiibiiHb 9; Tottenham S; M u ttl n ot ibin 
ForasLOusono Pork RoneoraW; Watfcrd24/ 
Coventry, So u tna mpta nac Agon VPta.Mon- 
ch otaor atv. Leicester, Oxford 17; BMm- 
ham 17; Ipswich n l west Bramwico 7. 

FRIMCH FIRST DIVISION 
Brest 1# Auxstts 3 
Lent Z Morsel Bo 1 
Nancy I, BarOmaux t 
Nsrtao 1, Metz 3 
Him L Is Havre 1 
PorttoSL Gsrmotoi 5. Laval i 
RmvMf Z Toataasa I 
Toulon 1. Batata 1 
Sochoux 3 Lite 1 
Stradwvrs 1 Monac o 1 

SPANISH HRST DIVISION 
Root ModrU A Cotta Vigo 8 
ABdaBc Bffhao X S o ntem ta i 0 
Vattadefid a Starling (Mton 1 
Real Madrid 4, Cotta S 
VtatadoM Z Odon 1 
Cadiz Z Real Sortodod 0 
Barcelona L Bails 2 
Horeutas Z Wateneta 2 
Sfwfflo 1, EvaAot 1 
AttrioHc de Bltaao X Santander 8 
Osasena Z Zaraoaa 1 

ITALIAN FIRST DIVISION 
AMonta l, Udtaera 1 
Floranttaa L Aval lino 8 
inter Muon X Tortao 3 
Lecra 1, Como 4 
Hapofl Z Mhon D 
RmmIPInI 


RIANT S LALOM 
(At sesartere, Itahr) 

1. Mortno KleM, West Cermony, 1 minute, 

X Midneta Gera, WOW Oenrxmr. 1 4U4. 
X Moteta «vet, Yuaoeiavta. ir».i4. 

4. Debbie Armotrons, U5. 1:27 M. 

5- Eva Twardokens. uz i^»js. 

4. Ml cm In Marzola, Itaty, 1=30.18. 

7. Anne- F l ora Rev, France, V3Q23. 

L Karto Detaoa. Italy. 1^855. 

7. Cataertrw au!ftet France, 1:3857. 

M. Reatae MSewitedmer. West CermaBV, 


(At sastrtera) 

1. Restrain Seiner, Austria, 4L7045L42— 


Z Ertko Hen, Swltn i l u n d , 4S2Z4L77- 


X Brtattte (taria, swttnrlood. 44784UB- 


4. Eva Twardok e ns, U5. 4SL8V4JL73 — 


SATURDAY'S RESULTS 

■ 8 8-8 

1 I 2—4 

Craven 2 (*), Praea 2 (Ml. Shots an goal: 
New York (on Fraose) 5**-3U PNladatpMo 
(an Hanlon) I5-W-M-8Z 
ttaoksc 2 l 1-4 

ily. iiiieiin i • o-i 

Cautel 2 (17), Ataitan (7). PJtaetnv (14); 
PaMn (TI.SHteaaaoal: auebec (on Hruaoy) 
20*14-14—40; New Yack (on Motorchuk) 7-10- 
17—81 

I 3 1—8 
8 1 8-1 

Bratan (i). Anderson CD, Adams (St, 
McNabbZ 08); Simpson (7). Slats on seal: 
New Jersey (an Metactw) 13-125-30; Pitts- 
burgh (oa Ratal) 7-8-10—35. 

Bostoa 1 1 0-3 

He rte tota I * *— » 

Turpson 7 111}. Francis 112), Dfraen |M), 
MOtorw l«J. O u s nn ov U te C3), L a e rt s s s 15); 
ROM (4), Bourque (4). Sbotsoo ooal: Boston 
(an (Jut) 888—31; Hartford (oa Keens) 1B4F 
4—34. 

Van cs evzr 8 0)—) 

Christum (14), Duchssns (4); Smyl (11). 
Shotasaeoat: Vancouver (en Jenssnl 7-048— 
23: W Bshln atan (on Brodour) 17747-33. 

3 2 1-4 
1 I 1-3 

Smith 2 (7). Natauna n9},Oiellos (8),Deb- 
lote (3), Tremblay (81; Thomas (8), H odgs o n 
(6). Stastny (»>. State on ooal: Montreal (on 
C awards. Wrsoeot) 108* 1 4-30; Toronto (on 
Ray) 8 - 7 0 — 34 . 

OatraN I l 8—4 

SL Loots 2 8 3-8 

LOVotte (5). Sutter 2 (12). Romoee (4), 
Hunter (M); Youna 3 (I), Klslo (3). Shots oa 
ooo4: Detroit (on Wamsety) 1284-28: St 
Louis (hi LoForest) M8-H-38. 

8 1 2-2 
1 8 1-3 

N knolls (12). Dionne neL Erickson (1); 
Nsuhrtd (8), Hawerctwk (17). Shots oe goal: 
Los Anodes (hi Bouchard) 7-58— W; winai- 

psa lea EDot) 7-11-11—31. 

Mi nnes ot a 9 1 1—4 

Ba sin g ton 2 4 2-0 

Gretzky < 17). KrasholnyeU (8). Kuril 3 1177, 
Anderson 2 (20), Napier (10); Blugstad2(11), 
McKeonev (12), Plett (3). Sbeti do goal: Min- 
nesota (on Fuhr.Moool 14- 77 — 3D ; EOmw it w i 
(on P ooup r o. Casev) 7-12-13—31 


5. CtenIBo Nltaeon, Sweden, 48504478— 
U18JL 

5. Paoletta MaoonL Holy, 45284585— 
laBBL 

7. vneni Stauwlder. Swttzerland. 48.17- 
4500—' I3US. 

A 


Football 


Sheeted College Results 


7. Monika Heoe, SwftzerWtak 48.1 7 4548 - 
10183. 

Ml Tamara McXtanoy, ILL 45454827— 
T^UZ 

OVERALL STANDI NOS 
l Marina Hehl West Oermanv. and Ros- 
wRba Stetoer. Aoetria 25 potato. 

31 Ertko Kara Serttrarlmi and Eva TVmr- 

dokeaz UJLZL 

5 Mbsmoia Gera. Wool Germany. 30. 

5 Matata Svot Yagoetavta end Briodta 
OertlL Swttzottand. 15 

L vrwd SchnoMor, Swfflaertand. U. 

7- Debbie Am aliens. UA, 12. 

Mk Comma NUseon, Sweden, 1L 


now 17, Army 7 
Ithaca 34, Gattysbvrp 0 

SOUTH 

Furman 57. Rhode island IS 
Geo rota southern 28. Mlddta Tann. 21 
Louisiana Stale 35, E. Corollna 15 
MIDWEST 

North Dakota SL 14, South Dakota 7 
N. Iowa 17, E. Washington U 
SOUTHWEST 

OkUwmo 35 Southern Meth. 13 
PAR WEST 
Brioham Yoons 25 Hawaii 8 
Mom (CotaJ 37, w. Oregon 32 
POC Lulhernn 35 UnfMd 12 


LIVE TELECAST OF KEY NFL GAME! 

(Large Sc reen Precfston Projection Via Satellite) 
Sunday, December 17 

N.Y. GIANTS 



vs. 


DALLAS COWBOYS 


Kick-Off lime: 7:00 (un. (Doors open at 6:30 pjn.) 
All Seats 250 F. 

Palais Des Congres - Salta Bleus 
Refreshments Available 
Contact: Skip Kerr 
MaxCom Associates, Inc. 
Te l eph one: 46 08 04 82 
Telex: 270 560 P A T 

Limited Seating - Calf Early For Reservations 














Page 22 


INTERNATIONAL HERALD TRIBUNE, MONDAY, DECEMBER 9, 1985 


LANGUAGE 


John Updike: Cosmic Thoughts and Rabbit Sequels Qq Easy on the Tingerspitzengefiihl 9 

bv^s^ 


By Mervyn Rothstdn 

New York Tbna Service 

XT EW YORK —John Updike is feeling 
IN a little funny sitting at what used to be 
Alfred A Knopf’s desk in what remains of 
the late publisher’s office — a once large 
room that has been turned into a number 
erf much smaller ones. “It was a funny 
sensation," Updike says. “A little like 
Proust I was brought down this set of 
corridors which I know faiiiy wdL I step in 
hoe and it isn’t Alfred’s office. But the 
desk is here. The desk has survived." 

Updike is reminded of a poem, “The 
Furniture,” in his recent collection, “Fac- 
ing Nature." The poem begins “To things 
we are ghosts." 

‘1 went to see an exhibit of photographs 
at the Fine Arts Museum in Boston,” he 
says. "Given the choice of going for a wall 
of photographs or a wall of paintings — 
arid I love paintings — I will go right for 
the photographs: The fact that there once 
was just this somewhere — old photo- 
graphs, especially scenes of New York, old 
trolley cars, straw hats. There's this abyss 
of time that is behind ns and under us. 

"One of the photos showed an Egyptian 
monument that I’ve seen that hasn’t 
rhanged a lot in 3,000 years. The sand has 
gone up and down a little but this th i n g has 
lasted and lasted and lasted. And against it 
in the picture somebody had moved and 
made a little blur, this camel driver, or 
whatever he was. And we are sort of like 
that, we are blurs on the face of t hin gs" — 
“his life a blur," Updike wrote in the poem, 
“a dark smear on the nncha n gi ngstonc” — 
“and even thing s of no great intrinsic mer- 
it, like that chair in the comer of this room, 
have a very good chance of outlasting you 
and me. It doesn’t seem right, does it? 

"In my mother’s attic in Pennsylvania,” 
he says, “are comicbooks I collected in the 
'40s, Walt Disney comic books. I was an 
only child and I was a cherished child of 
parents who didn’t move much, and I have 
the advantage of having many of my child- 
hood things stffl there. Toys I played with 
are still there — a httiefnnny tin Hu to dqg 
that used to turn on the table in a way I can 
remember. It’s in a bushel basket, and 
when you wind it up it still runs. Isn’t that 
marvelous that this is a virtually archaeo- 
logical thing out of the deep loam of my 
remote past, and yet it doesn't think much 
tinift has passed at afl. There’s a little rust, 
but it still runs. Objects to me seem kind 
enduring, so impressively permanent 
Books. Look at the way books last They 
may get a little yellow, but they’re still 
there.” 

Updike is much better known for his 
fiction, but he has published a number of 
volumes of poetry. 

In New York for the day after reading 
his poetry the previous evening at a univer- 



' ■ . ' <* a- ^ 

- ■£- .... . : 

i&nz,',. • w ■ 

* ' ■,>*,/ , ’ ' V\ » 


Updike’s version. 

sity in New Jersey , he seems to have 
cosmic thoughts on his mmd. “One of the 
riwig n that is there for fiction writers or 
writers of any sort to do is to try to incor- 
porate into our imagery and version of the 
truth what science has been telling us for 
the past 100 years,” he says. 

“After all, a whole alternative view that 
was unavailable to the h umanis ts of the 
Renaissance has built up. Thau’s all this 
weird information about the world we live 
in, both at the biological and atomic level, 
and most novelists, and poets, ignore it. 
They don’t know it, they don’t want to 
know it.” 

Updike’s new novel, which will come out 
next summer, is an attempt to bring some 
of the science into fiction, he says. 

“The title of it is ‘Roger’s Vernon.’ It’s a 
mouthful, but it’s the best title we can think 
of. ft's a cousin in a sense to my ‘A Month 
of Sundays,’ which was Dimmesdale’s ver- 
sion of The Scarlet Letter’ told in modem 
dress. This is Roger’s version, Roger Cbflr 
lingworth’s, Hester Prynne’s husband’s, of 
an mstance of adultery. In my novel, Roger 
Lambert is a divinity school professor, and 
he’s approached by a young man from the 
otwioh end of the university who has a lot 
of scientific facts about how unlikely our 
present universe is given the kinds of uni- 
verses we might have. 

“There is a so-called anthropic principle 
now, that the universe had to be the way it. 
is for intelligent life to emerge. The weak 
anthropic principle, as I understand h, 
merely says that since we’re here observing 
it this uni vase had to be such and so; 


there’s no miracle implied, no divine hand 
necessary, but a great deal about the uni- 
verse can be deduced from the fact that 
intelligent life has had the tune to evolve. 
The strong principle would be that God 
made this world just this way so we could 
arrive in iL Anyway, this scientist is also a 
Jesns freak. He annoys the divinity profes- 
sor so much and fascinates him on the 
other hand, and they have a number of 
long discussions full of science and statis- 
tics that may daunt a lot of readers. The 
challeng e to me was to work up' enough 
computer knowledge to give the young 
ip up some Hnd of credibility. He wants to 
use the computer to prove God’s exis- 
tence.” 

His fiction, Updike says, contains his 
daiVer side — - a side he does not think 
comes throoghin his poetry. *My sense of 
futility and of doom and of darkness is one 
thing — that is, of death being hehfarf 
everything in hfe, a sort of black backdrop, 
and if yon look the right way yon can see 

Hrath right through the ribs, HS it WCTC,” he 

says. 

“Bat beyond the death, there’s the vi- 
ciousness — my father was among the 
gentlest of men, and he was always talking 
about how it’s a dog-eat-dog world, and it’s 
kill or be killed. He was bom In 1900, and 
so a lot of the so-called welfare state wasn’t 
in place for him. He really did see tire 
possibility of dropping out of the economy 
entirely and becoming a bum, starving. We 
lived not far from the poorboase, and it 
was very much in our mind. 

“So in a way we’re all kilters — that is, 
we are all fi ghting for food and fame, 
whatever the good thing is. And there's a 
lot of killing in onr minds, though some- 
what less in our real lives. Most of us, after 
aU, are not murderers in that we pull a 
trigger, but most of us are murderers in 
that we often wish somebody were dead. 

“In “Rabbit, Run,’ the epigraph is from 
Pascal — ‘the hardness of the heart.’ Sol 
guess a lot of my books are about hardness 
of heart. “Rabbit, Rim’ was distressing to 
readers — it stiH is — because of Rahim’s 
hardness of heart. But I meant to aay, 
“We’re all hard of heart like this; don’t get 
mad at him. ’ We all can take only so much 
pity and sympathy into our lives before our 
own survival. So this thing about how brut- 
ish even civilized Kfe is is one of the things I 
say in my novels.” 

Of aU his novels, he says, he stffl thinks 
of “The Centaur” as his favorite. “In some 
ways it embodies my addesoence,” he says, 
“and it’s a portrait of my father, and I 
loved my father, and really could say it 
only in that book — I don’t think I ever 
said it to him.” 

Perhaps Updike's most famous charac- 
ter is Harry (Rabbit) Angstrom. He has 
written three novels about him so far, one 


roughly every lO years —“Rabbit, Run,” 
“Rabbit Retime” and the Pulitzer Prize- 
winning “Rabbit Is Rich.” And be says he 
is p a nnin g to bring Rabbit bade again. 
. “I have contracted with myself to write 
at least one more book about Rabbit Ang- 
strom,” he says. “I was going to finish it up, 
but maybe there’s something kind of open- 
ended about hrm Yon can’t finish him up. 
I fed at horoewriting those books. Return- 
ing to it every 10 years, when the decade 
winds down, 1 found it's still a comfortable 
thing. The bodes are not loved by every- 
body and may be docply flawed,and there 
may. be Hmits to my empathy with a man 


make me fed like Fm full of material m 

some odd way. 

“I haven't Jived in Pennsylvania in many 

yeais and when I did Jive there as a youth 
(here was a lot I didn’t know about what 
was going an around me,” he says. “T was a 
school teacher’sson and had a fairly limited 
view of the warid. Bat in alT ctf our child- 
hoods we are open to experience in a way 
we cease to be. The older we get the more 
we can control our environment, and also I 
think the leas' -vulnerable we become to it, 
whereas a kid ispretty open to whatever 
shocks and thrills the environment pro- 
vides. So all of us writers, whether it’s 
Roth's Newark or Bellow’s Chicago, or 
whatever, it’s where you somehow fed 
warmest and seezn to have the most to say.” 

Updike, 53, has lived in Massachusetts 
since 1957. He has been a successful writer 
for more than 30 years, and says he still 
finds fresh rfndfonge s, as weH as fresh 
problems. 

“1 had both the happiness and possible 
misfortune of very, early getting into print,” 
he says. “And having, beat a writer now 
since my. eady 20s, there is a danger of 
getting written ant and even becoming 
state There is some advantage to doing Eke 
Conrad — having a lot of life and then 
sitting down ai 40 to write. Yon certainly, 
won’t nm out erf material that way, because 
life isn’t long enough to write it all out” 

Writing fiction, he says, is “a Kttle Hire 
handwriting. It comes ant ro be yon no 
matter what you da Hut is, it’s recogniz- 
ably Updike. But you have to fed that 
you’re going off in a fresh direction. Yon 
nave to be m some way excited, arid in a 
way frightened — can yon do this? Without 
that can-yoo-do-it? feding, you can’t do it. 
YonYe going to produce something that 
you’ve already done. 

“It doesn’t get easier, this setting out 
again. You use up those first 20 years of 
your life one way or another, and die 
material yon collect in adulthood doesn’t 
have that. It’s not that magicaL You have 
to give it ma gi ft. You have to substitute 
wisdom and experience for passion and 
innocence.” 


By William SafLre 

W ASHINGTON — You cannot wme about cover ” M player “covers” tbeurine^dT an oppos- 

world affairs without a Weuansdunnmg; you jjjg player, whKh is more accurate than one to ewe, ^ 
cannot practice therary criticism without an under- ^ 

standing of Zeitgeist you cannot nibble yournails [hyphenate thephrase when usuigil as an adjective, 
property without Angst, and you cannot report on ^ ^ but resist hyphenation 

turmoil anywhere without Sturm imd Drang. nring it adverbially, as in they met one an one . 

Lei us suppose you already have a worid view Y ou thmk it's from Football, don’t you, as the 


op^uTT^ “Wrong!” afw*S 
are suffering anguish to &£wbo were using it yearn before. Hah! Both am 

(iOigtf), and can thus clearsightedly observe the storm The firet use cited in the Oxford English 

and stress of a thundering confusion {Sturm und ^ Supplement is from the Feb. 20. 1967. 
Drang). What is « that you need? ^ ^ Week, describing, of all things. 

You neat Zugzwang. defenses against nrissiks long before “Star Wars”: “In 

I nsedthsword in a cdnumabqut the recentworid- ^ oae^^e, relatively ‘simple’ intercepts am dur- 

ing the 1962-63 test series, the ‘old’ Niko-Zeus scored 

move but doomed by moving. Then a r^dcr wrote to l0 d , 4 attempxc d live ICBM intertepis.” Not* 

ray, “Safiredoesa t seem to understand the concept of ^ ^ ^Kdid one on one become spat? 

Zugznang- ‘ , lingo. (This certitude would be shattered if some 

For gmdmct m chess (and, «. part, wnds oooodw with the worid of tad- 

used m its play). I am a rawn in the hand (rf Arthur co ^ y / ( |^^ t h m earii«rprintrforrecnried 
Bisguier, grand master and technical adviser to Chess mniext.1 

Life magazine. I turned to him: Have I embarrassed usa ® e m a ^P 0115 ’ 


myself with my Zugzwng gambit? 

“You have used a word,” replied the grandmaster. 


HE long ’one on one' talks.'’ wrote Richard 


“for a position in which each player would obtain a Beeston in The Telegraph, another British newspaper 
worse result if it were his turn to move than if h were that revels in discovering America n is m s, “must have 
not. It occurs only in end-game situations or in com- been agonizing for such Pentagon hawks as Mr. Weta- 
posed problems. It might be a whoever-moves-loses berger’s deputy, Richard Pffle, whose nightmare is 
situation. Briefly stated, the onus of moving causes a that Mr. R e a gan , if left on his own, might 'give awaj 
worse result than would otherwise occur.” the store.’ ” 1 

How might Zugmuang be used in a no n-c he ss situs- 7b give away the store was indeed the cliche most 
don, or what Gary Kasparov might call real Kfe? used by hard-Hneis at Geneva. I recall Richard M, 
“When s tanding in a traffic island, with cars gwmg Nixon’s using the pbrase “to give up the store” fre- 
in both directions, one is most assuredly in quently during his administration. The earliest use I 
Zugzwang.” can find in my computer’s databank is ibis quotation 


f was right- The slogan of people in Zugzwang is of a TRW official in Business Week, May 31, 1976, in 
“Don’t jest do something, stand there.” The noun a corporate, but not exclusively retailing, context jj 
Zugzwang cannot be translated into a ringto English “We want controlled expansion only — we won’t pte 
word; in this characteristic, it is rimflur to GenrmUch- away the store to build volume.” I suspect a touch 


le get when; 


trouble). 


Representative Samuel S. 


Plop a little Hmy t pijftg of a Goman word into your hawk, rose on the floor of the House on Feb. 2, 1977, 
language soup for flavor or even for affectation's to wonder if Paul G Waxnke, the Carter admin i s ira- 
Bul choose with care; for this sent of things you have to tiou's arms negotiator, “would be likely to give mixn- 
have what HHdegaide Merrill Mahoney, rubbing the the store in a mistaken mood of guilt and good will, 
sensitive tip of her thumb against her other fingertips. At the Geneva meeting of the superpower leaders, 

calls Fingerspitzengef&hL Robert G McFariane, then still the national security 

T adviser — who used fora as Lhe plural of forum, whidi 

HERE sat Ronald Reagan and hfikhail Gorba- is not incorrect butis not preferred even by those of us 
cfaev in front of the fireplace, alone except for inter- who n» the classical plural of memorandum and 
pretere. “The smmmfsffratest surprise,” wrote a referendum — suddenly shifted to colorful slang in 
Sunday Observer team, “Vas the five hours the two desmbing a straggle: “They’ll just have to duke it 
leaders spent t&e-a-t8te (or, as the Americans insist on a , 

railing it, ‘one on one’).” - 7b duke it out is, l think, a modem marriage ot put 

Americans insist on calling it that frrare one on your dukamih fight it out. One version of the origin 
one is a phrase dooting competitive intimacy T$te-a- of duke meaning “hand,” or specifically “fist,” is in 4 
tffe, nr It TfrngKch h nncinf^ n rrm. Cockney riiyming slang: fmgere were referred to a§ ’ 

notes dosmess without tenrian; you have a little tite- “forks,” and the slang rhyme to conceal the word was 
a-tite talk at smne sednded ' rendezvous when you Duke °f Yorlcs '> henc e. the hands became dukes. 
want to conspire -to' defect In the same way, the as the British press was picking up an the 

Geneva phrase unter vier Augen, “Under four eyes” Americanisms one on one and.gro? away the store, the 
(that’s two persons’ eyes, not one guy with glasses), president's adviser was piercing the summit air with 
impBes conspiracy or at Least complicity. Oneonone, the latest twist on Cockney rhyming slang, 
however, means matched for competition,'’ closer to New York rum Service