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The GJ 

l Newspaper 
in Pari* ■ 


4n.| „ >u ' ,fu I . rarragae ana Marseille 

’ *l -. V, * *»’ lira, J ^ : 


«*■ 1 ;■* **{< .-11: — — l- 

No. 31,798 ■ 


£B§ia Reagan A 
!|^ 'Populist’ 
"::i:^ Hard Can 

iswjs: By David Hoffman 

“-tu and Anne Swardson 

Mtr,-, ' i' r ' li ‘ the 1W ; WasUngm Post Service 

f WASHINGTON — President 

j t£, hap -a^ R^MJ tcagan. hasacccpted a far- 


No. 31,798 

Reagan Approves 

By David Ho ffman 
and Anne Swardson 

Washington Post Service 


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: :tl * fcifobr* 1 ^ will be 5P n a CTiripaign far it 
“ '•■' Monday wiflt a televised address 

Pir* ^ etnphanring hs “populist" aspects, 
!fv irifi™ administration officials said. 

‘ Mr. Reagan approved most as- 

i!«* pects of the plan at a White House 

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A Senate measure would levy a 
mfnhman tax on many Ameri- 
cans working abroad. Page 3: 

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'**■ meeting Tuesday with Treasury 
a Secretary James A. Baiter 3d and 
^ other senior officials. 

^ . The plan includes almost dou- 
Wing toe personal exemption' to 
$2,000, lower indhddnal rates and 
the ehminatioa of many popular. 
®fr deductions and tax breaks. ' 

«3c Officials said the proposed 
i fc\ three- tier individual itmnm f tax 
adc structure would call-far a sate erf 15 
percent for low incomes, 25 percent 
, for middle incomes and a top 
: bracket of 34 or 35 percent. 

: They said there was discussion at 

bringing the top bracket down fur- 
f ; v ther, possibly to as low as 30 per- 
cent, or of adding a fourth bracket 
at 30 pencenLbnt those ideas were 
set aside. *' 

The proposal s expected to in- 

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ing stock, to be deducted at their 

marlcpf w nhif rather *ban at thdr 
(Higinal price plus inflation. Uni- 
versities had complained that the 
latter approach would drastically 
reduce their revenues. 

Officials had discussed raising 
the personal exemption from 
$1,040 this year to $1,800. The de- 
rision to make it $2,000, officials 

would begin Monday with a tele- 
vised speech from the White 

In receat days. Representative 
Jack Kemp, Republican of New 
(Gaataoed an Page 2, CoL 3) 

US. Seeking Inspection 

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By John M. .Goshko . • 

Washington Post Service 

States has asked to inspect secret 
nuclear installations tn Israel to 
verify that American-made timing 
devices, allegedly obtained by sur- 
reptitious means, have not been 
used in making atomic weapons or 
re-exported to other countries, Ui 
and diplomatic sources report. 

The devices, tiny switches known 
as loytrons, provide the precise 
tinting necessary for nuclear explo- 
sions. They are also used in ad- 
exploration equipment and medi- 
cal equipment 

According to the sources, Israel 
has not replied to die formal re- 
cjucstsf or mqiectiOTjma de^the 

the ritnatiou had potentially sensi- 
tive implications for U-S.-Isradi re- . 
lations because the Israeli govern- 
ment was aware that U-S. pdicy 
forbids overseas sales of krytrens 
unless th^y are subjected to strict 
case-by-case review and licensed by 
the State Department 

If Israel is unwilling to permit 
such inspections, the United States 
wants Israeli officials to come op 
with an alternative means of ac- 
counting for an estimated 500 to 
600 devices. 

Washington has also called on 
Israel to return unused devices still 
in its possession, because they were 
never licensed for export, the 
sources said. 

Jl became known this week that a 

{ federal grand jury in Los Angdes 
\ras investigating whether the de- 
vices were smuggled out of the 
country in violation of U-S. law. 


■ The Soviet Union has 
stepped up air and artiDery at- 
tadts in Pakistan. Page 2. 

■ United Afaimes and its pitots 
are nearing a strike. Page 3. 

■ Democrats' budget plan 
would freeze funds for military, 
not Social Security. Fuel 

Under the Atocuc Energy Act and 
tiie Export Administration Act, vi- 
olators could be liable to a 20-year 
prison term if it were proven that 
the devices had been exported for 
tire national security advantageof a 
foreign country. 

' It has been widely assumed for 
years that brad' can make atomic 
weapons. U.S. officials have said, 
however, that Israeli secrecy pre- 
vents the United States from team- 
ing whether Israel has such weap- 

Israel's refusal to submit to inter- 
national controls and inspection 
has. also meant that, despite its 
dose ties to the United States, it is 
barred by UJS. nodear prohfera- 
ticn rules from obtaining devices 
snch as kzytrons that could be used 
in developing nuclear weapons. 

The Israeli. Defense Ministry, re- 

jury investigation, admitted that it 
had obtained a number of krytrons 
between 1979 and 1983 and still 
had a large stockpile. The ministry 
said the devices bad been used only 
in conventional equipment for re- 
search-and development and test- 
ing and that none had been sent to 
other co unt ries. 

A Pakistani citizen, Nazim Ah- 
med Vaid, wg arrested in June in 
Houston on charges that be had 
tried to obtain 50 krytrons and 
smuggle them out of the counby. 
The Pakistani government denied 
that ills actions were, connected to 
■its reported atomic bomb program. 
Mr. Vaid, after .bring allowed to 

( CrmH— cd op Page 2, CoL 6) ' 



said, would hdp Mr. Reagan em- 
phaftT y the “jpcpnlism” theme bo- 
cause it represents an added tax cut 
for millions of Americans. 

OffidaU said Mr. Reagan would 
try to sril tire proposal as both a 
break for a^rerage taxpayers and as 
a heavier hmdea far weutby Amer- 
icans and corporations that have 
paid Hole ctf no taxes in the past. 

Bat this effort may nm into criti- 
cism because the president also has 
derided to restore a number of tax 
breaks Are investors and tire cfl and 
gas industry. Thcsc tax breaks were 
curtailed in the Treasury Depart- 
ment’s initial tax-simplification 
proposal released last year. 

In an effort to give the proposal 
some pofitical momentum, an ad- 
ministration source said, the presi- 
Hent is planning to M get oat and 
reaDy sal it fasr almost every day 
next week by foenssg attention on 
the benefits for families and for 
average taxpayers. 

Mr. Reagan intends to advertise 
the > m.qnipiifinitin n plan as the 
centerpiece of the “second Ameri- 
can revolntioir he described in his 
second Inaugural Address, officials 
pnA Republican political sirate- 
sriothey were hoping the pro- 
posal would ^ve Mr. Rea^n a pos- 
itive issue to caiyprign for after 
recent poutrawatics that pot the 
White House on the defensive: 

The president can nsetax simpli- 
fication to “wash away, tome of the 
bad taste of the budget” fight, as 
well as the co n troversy over Ins 
visit to the German nnfitaiy ceme- 
tery at Bilburg, a Republican offi- 
cial said. 

Administration nffirink said Mr. 

<&!:> ' r~ * % *" 

Aldan Walsh 

Armed Men 
Kidnap a Top 
UN Official 


BEIRUT — Armed men kid- 
napped a senior United Nations 
official in Moslem West Beirut on 
Wednesday, bundling him jato a 
car after smashing the windshield 
of his UN vehicle and holding a 
gun to his. driver’s h«»d. 

Aidan Walsh, 46, deputy direc- 
tor for the United Nations Relief 
and Works Agency, which asssts 
Palestinian refugees in the Middle 
East, was seized on a seafront bou- 
levard white going to work, officials 
of the agency said 

Mr. Walsh, an Irishman, was the 
second officer of the agency and 
the 12th foreigner abdneted in Leb- 
anon this year. He was the first 
person abducted since a wave of 
kidnappings in March. 

There was no hmnediat^ indica- 
tion of which group was responsi- 
ble for tire abduction. 

An official of the UN agency 
said that two cars containing eight 
gimtnen in- green camouflage fa- 
tigues blocked Ml Walsh’s, car. 
“Foot mm jumped out, pointed 
Kalashnikov rifles and' pistols at 
Walsh and ordered him out of the 
Gar," the official said. 

“The Palestinian driver tried to 
argue wilh them, saying Walsh was 
Irish and UNRWA' was hripmg 
people in Lebanon," tire official 
said, ?bnt one of the men smashed 
his windshield with a rifle butt and 
hdd a cocked rifle to his head.” 

Two gunmen then grabbed Mr. 
Walsh by tire arms as another 
poshed him from behind They 
bundled him into the back seat of 
one of their cars and drove off. ' 

{The police said that nine per- 
sons were killed and 22 were 
wounded in sectarian battles that 
raged along Beinn’s Green Line, in 
the 18th straight day of clashes on 
the line dividing tire city’s Christian 
and Modem sectors, The Associat- 
ed Press reoortcd.1 

Mr. Walsh has been in Beirut 
since September. His wife and 
three children live in Dublin. 

He was seized nearly two months 
after a British joarnafist, Alec Col- 
lett, who was on assignment as an 
information consultant in Beirut 
for tire agency, was kidnapped 
south of Barm on March 25. 

Mr. Collett was among nine for- 
eigners abducted in March. One, a 
Dutch Jesuit priest, was found 
murdered in the eastern Bekaa Val- 
ley and four^ were freed, but the rest 
are still held 

Mr. Walsh’s kidnapping brought 
to 10 the total of foreigner still 
rmaring after abduction in Mos- 
lan-cmtrdkd regions of Lebanon 
tins year and in 1984. 

Aside from Mr. Walsh and Mr. 
CoQett, those hdd indude five 
Americans, two French diplomats 
and a Saadi Arabian d i p lom at. 

Anonymous callers saying they 
represented Tshnmic Jihad, a Mos- 
lem fundamentalist group, have 
dawne d responsibility for most of 
the abductions. 

isBjj ftffiew York Times and Hie Washington Post 


Toll at 8 
In Siege 

Mayor Defends 
Action of Police 
In Philadelphia 

The Associated Pgess 

reported Wednesday that they had 
found eight bodies in the charred 
mins of the boose formerly occu- 
pied by the radical back-to-nature 
group MOVE. 

The house was destroyed after ; 
the police bombed it in an attempt 
to gain entry, and about 60 neigh- . 
boring dwellings also were burned. 

On Tuesday, Mayor W. Wilson 
Goode defended the derision by 
the police to drop a bomb on the 
house as appropriate, although the 
action “did not turn out as intend- • 
ed.” The city's police commissioner 
said Wednesday that officials be- 
lieve the group had a hand in start- 
ing the fire. Tin ABObctad Pm 

Afl or parts of six chaired bodies, -- _ , 

two of fen tire remains of chfl- . "■ /Vflsoo Goode, 

dren, were removed Tuesday from . rigjxt, defended in a 
the house: Clarence Mosley, the television broadcast the 
city's assistant managing director, <U y««4o n by the 
said that one of the two bodies Philadelphia police to 

fowid Wednesday also was that of bomb (he beataarters of 

a , . . - Ihe back-to-natme group 


been K«rr in tire house be- . nagWXHrnood mat burned 
fore the police tried to dear them - in the ensuing fire, Leslie 
oul Other reports said that MOVE Ga m er, above, wore a shirt 
members had dog a labyrinth of supporting the groqi. One 
tunnels from the basement, and the . of the co-founders of 
police were looking for signs of move, John Africa, above 

who dcBOuacd JJSSS"" 1 ™ 
tollmnng a q mftony ion 

said at a press conference that he «n which a Phaaddphw 
accepted responsibility far the “ao- pobce officer was killed, 

oriental and unexpected" fire. “But 
it was the right decision,” he said. 

He promised the estimated 225 - 

neighborhood residents who were ' l — — — ■ 

displaced by the fire that the rity 

would pay to rebuild their, houses “To tire best of our knowledge, 
About 60 houses were destroyed, die MOVE members had spread 
more than in 3ny other fire in the .flammable material in their com- 
history of the fifth-largest U.S. rity. prwmri and in neighboring areas," 

Damage is estimated at least $5^ said, in explaining why the fire 
million- •* spread so' quickly, ' ' 

Police Commissioner Gregore ^lOVE members had said they 
Sambor, interviewed Wednesday were “prepared to die," he said, 
cm a television news program, said, Mr. Sambor said the rubble 
“We did not create any fire.” the MOVE house was being cxi 

Mr. Sambor said die rubble at 
the MOVE house was bring exca- 

‘TTre fire did start inside the ^ted by a five-story crane. The 
house," said Mr. Sambor; who or- house, he said, was “the most 
dered the bomb dropped. He said heavily fortified of any building I 
that the police had toted the bomb have ever s$en in 35 years of ponce 
on similar structures made of wood work." 

and |«r nn iy y with i n star ting aTi y “The msidc of the home was for- 
fires. tified with trees,” he said. “Tree 

trunks with the bark still on. and 
through which fire p ort s were cut so 
they could shoot outside." 

The police surrounded, the 
MOVE rowhouse in a neat, work- 
ing-class neighborhood Sunday 
night and evacuated 200 homes. 
When they tried to evict MOVE 
members Monday on charges in- 
cluding possession of explosives 
and harassment of neighbors, a gun 
battle ensued. 

Policemen in a helicopter 
dropped a bomb on the house 
Monday night to destroy a rooftop 
bunker and then the fire started. 
Slots from made the house pre- 

vented firefighters from controlling 
ibe blaze. 

Two MOVE members escaped 
their fortress with minor bums — 
9-year-old Birdie Africa and Ra^ 
mona Africa, who had been sought 
by the police on various charges 
and is being hefd oa S3 wShoa bad. 

MOVE follows a philosophy es- 
poused by its founder, Vincent 
Leaphart, who later took the name 
John Africa. Its members, who use 
the surname Africa, avoided con- 
tact with bureaucracy, ale mostly 
uncooked food and welcomed ver- 
min in their home as pert of their 
back-to-nature outlook. 

U.S. Progresses With Laser Weapon 

■ By William J. Broad 

New York Tunes Service 

NEW YORK — Scientists tit the 
Lawrence Livermore National 
Laboratory in California have 
made what appears to be an impor- 
tant advance m developing an X- 


The government scientists and 
others familiar with the top-secret 
research said Tuesday that the ad- 
vance has increased the brightness 
and thus the power of the X-ray 
device by focusing its rays. 

Major critics of a space-based 
missile defense system, which is 
strongly supported by President 
Ronald Reagan, have been briefed 
on the advance. 

Dr. Hans A. Bethe, the Nobd 
laureate physicist who has been a 
key aide, wrote to the chief scien- 
tist cm the space defense project 
soon after the briefing to say, “The 
X-ray laser should not be disquali- 
fied simply because it exploits a 
nuclear explosion as a power 

Previously, Dr. Bethe has been 
publicly disparaging of the X-ray 
weapon, but it was not dear if the 
briefing was what changed his posi- 

The X-ray laser has been under 
development for nearly five years 
at the Uvermore laboratory! It was 
a major catalyst in the start of the 
space defense plan, which Mr. Rea- 
gan calls the Strategic Defense Ini- 
tiative and which is widely known 
as “star wars." The first-generation 
device was known as Excalibur, 
from the le ge n d of King Arthur. 
The new device is known as Super 

In recent months, Reagan ad- 
ministration officials have tended 
to play down the X-ray laser’s im- 
portance in the five-year, $26 bil- 
lion research project on space 
weapons, emphasizing instead the 
use erf nonnuclear devices to de- 
stroy enemy missile s in space. Far 
example, these devices might hurl 
hanexplosive projectiles to destroy 
targets through their speed and im- 

As a result, one critic said Tues- 
day, the recent development at the 
Livermore laboratory is politically 
embarrassing, in a sense, to the 
Reagan administration. 

Increased brightness is crucial if 
the laser in the X-ray tang: of the 
spectrum is ever to be effective 
against and mresfles in 

space, according to both defenders 
and detractors of the device: 

The nuclear X-ray laser takes the 
power of a nuclear explosi o n and 
channel p jt into laser rods tha t emit 
powerful bursts of radiation. Over 
long distances in space, these rays 
would tend to spread out, gradually 
reducing the destructive power of 
the weapon. 

According to government scien- 
tists, a method at focusing the rays • 
was tested in Nevada in an under- 
ground explosion. The test oc- 
curred March 23, the second anni- 
versary of Mr. Reagan’s speech 
proposing a space shield to raider 
nuclear weapons *lmpoieQt and 

Hans A. Bethe 

According to the scientists, the 
key aspect of the advance is to use 
special optics to focus X-rays as 
they stream out of the nuclear ex- 
plosion. Many critics had viewed 
the task as virtually impossible, 
since X-rays penetrate matter rath- 

(Contmned on Page 2, CoL 7) 

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In U.S. 

Drop Is First 
In Six Months, 
The Fed Says 

The Associated Press 

WASHINGTON — UB. indus- 
trial production fell 02 percent in 
April, the first decline in six 
months, the Federal Reserve Board 
reported Wednesday, 

The central bank said its index of 
the total output at U.S. factories, 
mines and utilities fell for. the first 
time since a 0.4-percent drop in 
October. April's decline followed a 
03-percent rise in March. 

[As the report of a dccline < ’in 
output was being made public, 
Larry Speakes, the White House 
spokesman, sought to allay fears 
about savings and loans associa- 
tions in Maryland, where two such 
institutions have been placed under 
a state-appointed overseer. United 
Press International reported from 

[“The federal system is safe and 
protected,” Mr. Speakes said. 
“We’re monitoring the situation at 
the Treasury. It has been discussed 
at the White House, but these are 
state matters." Details, Page 13.[ 

Sales of manufactured goods 
rose a slight 0.4 percent in March, 
and inventories declined for the 
first time in two years, the govern- 
ment said Wednesday. 

The Commerce Department said 
that sales totaled a seasonally ad- 
justed $4202 billion during March 
after a 03-percent February in- 

Total business inventories 
dropped 0.1 percent in March to 
$578.2 billion. It was the first de- 
cline in inventories since a 0.6-pcr- 
cent drop in March, 1983. 

The setback in production re- 
flects the industrial sector’s strug- 
gle to overcome the effect of Amer- 
ica’s worsening trade performance, 
where imports are outpacing UB. 
exports by a record margin. Econo- 
mists have also cited (he trade defi- 
cit for limiting overall U.S. eco- 
nomic growth so far this year. 

' Analysts said the inventories de- 
cline reflected the general weakness 
in the overall economy and showed 
that businesses were trying to cut 
their stocks of unsold goods be- 
cause of weak demand. 

.. The Reagan administration and 
some economists said they viewed a 
03-percent increase in retail sales 
last month as an encouraging signal 

(Continued on Page 2, COL 7) 

Shultz Says 
Nothing Set 
On Summit 

The Associated Press 

VIENNA — Secretary of State 
George P. Shultz said Wednesday 
that in talks Tuesday with the Sovi- 
et Foreign Minister, Andrei A. 
Gromyko, the superpowers had not 
set a time or place for a U.S. -Soviet 
summit meeting. 

Mr. Shultz then left for Washing- 
ton, declining to say whether the 
proposed meeting had been dis- 
cussed during the six-hour session 
at the Soviet Embassy. 

He had said previously on Aus- 
trian television. “We have not been 
able to settle on when or where that 
meeting will take place." 

Mr. Shultz said that both sides 
obviously were interested in an ex- 
change of views between President 

not Social Security. Page 3. 

■ A eonqRtferized eyo-mmitor- 
ing system may give voice to 
people 1*0 otherwise could not 


■ A key siarehoWer ia Dormer 
GmbH has accepted a {dan to 
sell a slake in the company to 
Daimler-Benz AG. P^e 1L 


■ Lower ofl income in the Unit- 
ed Arab Emirates has hurt po- 
litical consensus. Page 7. 


The alternative press in the 
UnitedStates is seeking ail old- 
er, mote affluent readership. 

Romanian Policy of U.S. Is Assailed 

Envoy Resigns, Says Washington Ignores Bights Violations 

:$■ ilJ§ 

. -A ^ 


- Wm-Mr 

Jean Dnhrffetf tbe French artist, and David Rockfefler, chairman of the Chase 
Manhattan Bank, flew a model of die sculptors “Group of Four Trees” in 1972 at 
Chase Manhattan Plaza in New York. Mir. Dubuffet, 83, died Sunday in Para. Page 5. 

By Bradley Graham 

Waxfuttgum Pea Service 

: MUNICH— After three and a 
half years of trying to persuade 
officials in Washington to toughen 
(tytr approach to Romania, David 
B. Funderburk has resigned as the 
U.S. am bassado r to Bucharest and 
decided to publicize a pdicy dis- 
pute with senior administration of- 
ficials. ' . 

Mr. Funderburk contends that 
UR. policy toward Romania is 
largely misconceived and ineffec- 

Mr. Funderburk, in an interview 
Monday, mJM for .a revision of 
.UR. policy and a possible end to 
the mosl-favored-nation trading 
status and other concessions Wash- 
ington regularly grants the Bucha- 
rest government. 

Romania has received preferen- 
tial UJ3. treatment since tbe late 
1960s on the basis of a foreign 
policy that ofteo diverges from 
Moscow’s, But Mr, Funderburk 
contends that Romania’s indepen- 
dence is exaggerated and that its 

ties to the Soviet Union are more 
extensive don Washington policy- 
makers are willing to recognize. 

Moreover, he says, Romania's 
abysmal record on human rights 
and its lack of internal reforms are 
a mockery of U.S. policy goals. 

For example, he said, on tbe sur- 
face. it looked recently as if the 
Romanians woe complying with 
U.S. 'wishes to rekx emigration 
constraints. Hundreds were being 
granted permission to leave Roma- 
nia and were flooding the U5- Em- 
bassy requesting visas. 

But on closer examination, U.S. 
officials found they had been out- 
witted by tbe Romanian president, 
Nicoiae Cemsescn, he said. Many 
Romanians being let go turned out 
to be unqualified for admission to 
the United States. 

“We were ontfoxed by 
C eauses n i," Mr. Funderburk said. 
“He in effect domed people on ns 
like a- nmri-Maiiel” a reference to 
the “boat lift” of Cubans to the 
United States in 1980. “Hundreds 
erf those approved for emigration 

were undesirables. Meantime, 
many of those we wanted out are 
stifl waiting for official permis- 

He continued: “Ceausescu is try- 
ing to turn the tables on us. At 
human rights conferences, to de- 
fuse the emigration issue, the Ro- 
manians now say to us, 'Look, you 
Quit criticize us fra not letting 
enough people oul beca u se many 
of those we’ve already aroroved to 
go have yet to be let into the United 
States.’ " 

He added: “There is a street term 
the Romanians use, smecher, mean- 
ing someone who is sneaky, crafty, 
a wheeler-dealer," he said. “That 
applies to the government in Bu- 

Mr. Funderburk. 41, is a former 
university professor erf history with 
links to Senator Jesse Helms, a con- 
servative Republican senator from 
North Carolina- He was appointed 
ambassadorin 1981. He speaks Ro- 
manian and studied in Romania 
for two years in the 1970s on a 

(Continued on Page 5, CoL 1) 

Ronald Reagan and the Soviet 
leader, Mikhail S. Gorbachev, but, 
“We just have nothing to add to 
what is already known?* 

Mr. Reagan has invited Mr. Gor- 
bachev to Washington, but the 
Russians apparently are more in- 
terested in meeting in New York in 
September when world leaden are 
attending the opening of the UN 
General Assembly. 

Before leaving, Mr. Shultz had a 
another 10-jninute discuss on with 
Mr. Gromyko, accompanied only 
by interpreters. # 

■ Austria Mats Indep endence 

Austria marked 30 years of post- 

war independence Wednesday as 
governments bom East and West 
praised its neutrality, Reuters re- 
prated from Vienna. 

Mr. Shultz and Mr. Gromyko 

nations that led to the treaty 
showed that, given the will talks 
could bring solutions to problems. 

The former Austrian chancellor, 
Bnmo Kreisky, a leading member 
of Austrian negotiating teams 30 
years ago, said dial the Austrian 
treaty laid the foundations of de- 
tente. “1 express the wish that we 
return to this policy ” he said. 

The treaty was signed May [5, 
1955. after 10 years of negotiations 
It led to the withdrawal of occupy^ 
ing troops from the United Stafri 
toe Soviet Union, Britain and 
France. Shortly afterward Austria 
declared itself permanently neu- 

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Page 2 



Soviet Raids in Pakistan 
Viewed as Bid to Deter 
Aid lor Afghan Rebels 

1 By Steven R. Wrisman 

New York Times Serna 

- ISLAMABAD, Pakistan — The 
■Soviet Union has stepped m air 
and artillery attacks Tn<iVto Paki- 
stan in recent months in what Paki- 
stani officials say is an attempt to 
undermine support here for Af- 
ghan rebels. 

The officials said Monday that 
their latest figures showed a dou- 
bling tn the rale of attacks by Sovi- 
et planes along the northwestern 
border. 'They said there had been 
"83 violations of Pakistani airspace 
since the b eginning of the year, 
compared with 88 such violations 
of 1984. 

The increased activity has stirred 
new concerns among American 
and Pakistani policy- makers that 
the attacks could generate resent- 
ment and fear among Pakistanis 
over the toll being taken by the 
fighting in Afghanistan. 

“The air incursions are impor- 
tant.” a U.S. official said, “because 
if they keep continuing, they could 
create a public perception that Pa- 
kistan is somehow helpless in the 
face of them. They have a bad psy- 
chological effect, and they give am- 
munition to the opponents of Paki- 
stan's policies." 

Indeed, the attacks appear to 
have been a factor in what some 
call a growing tendency by critics 
of President Mohammad Zia nl- 

Haq to question the government's 
strong support of the Afghan re- 
bels. Three milli on Afghans — one- 
fifth of the population — have fled 
into Pakistan since 1979. 

In interviews, Pakistani and 
American officials expressed full 
confidence that public support for 
the Af ghan rebels would not dimin- 

ish. They predicted, however, that 
be a debate 

there will be a debate over the wis- 
dom of that support when the Paki- 
stani Notional Asse 
next month. 

Such a debate would be likely to 

Assembly convenes 

force General Zia’s government for 
the first time to mount a vigorous 
defense of his policies and answer 
his critics in a public forum. 

A senior Pakistani official said 
that after meeting in Moscow in 
March with the Soviet leader, Mik- 
hail S. Gorbachev, General Zia 
concluded that the Russians were 
growing “impatient” with the stale- 
mate in Afghanistan. 

This official said that Mr. Gor- 
bachev had told General Zia that 
the Soviet Union was highly con- 
cerned about Pakistan's support 
for the guerrillas. The official said 
that Soviet incursions into Paki- 
stani airspace were thus seen as an 
attempt to “in timi date" Pakistan in 
what be called “a war of nerves." 

Far years, it has been widely 
known that the United States has 
joined with Arab countries and 
others to help provide covert assis- 
tance to the Afghan rebels, who are 
waging a fierce battle against more 
than 100,000 Soviet troops, who 
began entering Afghanistan in De- 
cember 1979. 

[The UR Senate voted unani- 
mously Tuesday to proride SIS 

mill i nn in direct hnmanitarian aid 

to Afghans affected by the Soviet 
occupation. The Associated Press 
reported from Washington. The 
vote marked the first time that the 
Senate had publicly designated 
funds for this purpose.) 

The Soviet intervention prompt- 
ed Resident Ronald Reagan to 
provide Pakistan with a 51. 6-bil- 
lion mili tary aid package, including 
40 F- 16 jet fighters. 

"Those planes are not meant for 
Pakistan to go out and find Soviet 
planes to attack-in Af ghanistan, ” a 
U.S. official said. “They are meant 
to prevent the Soviets from attack- 
ing the bean of Pakistan. That de- 
terrence has worked." 

Tba i 

GANDHI HOLDS FIRM — Despite the urging of 
Sikh leaders in New Delhi, left, and some members of 
P&rtiament, Prune Minister Rajiv Gandlri of India, 
center, persisted Wednesday in bis [dan to visit the 
United States. Concerns about Mr. GandM’s safety 
stem from the FBrs charge of a plot to bfil trim. 



Mengele Reported Seen 

In Paraguay Last July uTn.„ s« Back m Qt»» 


Wies&uhalJlso Says KohlHas Sought 

—Communists are expected to be shut out of Office in 
cst cities as a result of defeats in local 
elections last weekend, political commentators said Wednesday. 
Bologna nod Horace arc JSW £ 

aU but two of Italy’s nine bv 


New Yarlc 

Se rvicr 

Communists have the strength to take control of the aty commit m 
alliance with other leftist patties. The Communists. Italy ssecomHtrgEM 
party, formerly con trolled six of the nine obes. ' _ ■ 

^ta^ttereMiing seven cities — Rome, Milan, Turin. G*Poa.Vcakc, £ 

General Stroeswert vail to West 

Germany offered the best chance ^ ^ 

VIENNA— Simon Wksenthal, for bringing Dr. Mengele to justice. Bari* and Palermo^- the five parties that form the coalition headed by 
the Naa-hnmer, says Josef Men- InMr.WksemhaTsview.aswdlas Minister Bettino Craxi, a Socialist, have won enough seats to form 
, l that of investigators in other ebun- majority dry councils. Five-party adnunistratiam also are expected to 

tries, Paraguay’s wishes arc the key ^ over in scorcs of smaller dtiM. 
to a p p re hensi on - 

General Stroessner wanted to c i! Data Released on Korean 747 Flight 

liver Dr. Mcogcfc his secret police 
could do so quickly. 

gde, the German death camp doc- 
tor, was sighted in Paraguay as late 
as last July. 

Mr. Wiesenthal, in interviews at 
his Documentation Center hoe in 
the last week, said the last can- 
finned sighting was in die set tle - 
mot of Gaphdn Miranda, outside 

According to previous accounts. 
Dr. M engete , 74, was seen in 1983 
in Farral, Chile, and m Brazil Oth- 
er reports placed him in Paraguay 

According to Gerald Posner, a 
New York lawyer who is writing a 

Egyptians , Israelis Seek 
To Clear Way to Summit 

Egyptian and Israeli diplomats 
id the 

The Associated Press 

CAIRO — Israeli and 
negotiators held talks Wednesday 
to resolve issues that have clouded 
their relations and have blocked a 
proposed summit meeting between 
President Hosni Mubarak and 
Prime Minister Shimon Pines of 

If the talks succeed, sources close 
to Mr. Mubarak said, such a meet- 
ing can be held by July- 

book on him, in the 1960s Dr. Men- 
gelc narrowly escaped capture in 
by Jewish agents m the area of 
CapiiAn Miranda. The area was de- 
scribed as difficult to get to because 
it is near a dosed military zone with 
several presidential summer 

Mr. Wies enthal said he had in- 
formed Chancellor Helmut Kohl of 
West Germany that Dr. Mengele 
was seen ax different times in July 
by three unidentified persons who 
do not know one another and who 

srid ttetaU^hdd tmta heayy ^ fa maaa 

security in a hotel in Giza on the 
outskirts of the capital, woald cov- 
er several issues. 

The most crucial topic for Egypt 
is settling the status of Taba, a 250- 
acre (100-bcctarc) beach tract over- 
looking the Gulf of Aqaba at the 
southern end of the border between 
die two countries. 

Israel retained control of Taba 
when its soldiers withdrew from die 
Sinai Peninsula in April 1982 under 

■ Soviet Prisoners Reported 
Afghan guerrilla sources told 
The Associated Press in Peshawar 
that scores of Soviet soldiers and 

GunpaignSet SSSSS 

X O i nil inn hut Israel wants tn trv me- 

For Tax Plan 

Bangladesh Urged 

rp -J? , r interrogated, inside Pakistan with 

1 o raid r rog Joan 


DHAKA — Exporters of frogs’ 
legs, claiming financial loses, urged 
Wednesday that a ban on those 
exports be ended, but the govern- 
ment replied that Bangladesh 
needs more frogs to fight insect 

The four-month ban on frog 
hunting was to “give the frogs a 
chance to breed in safety,” an offi- 
cial statement said. 

- Bangladesh exports the kgs of 70 
million frogs each year, officials 
said. If the frogs were left alive, 
they would eat more than 100 tons 
of insects, particularly mosquitoes, 
every day. 

the knowledge of the Pakistani gov- 

The Soviet Union asserted re- 
cently that 24 Soviet and Afghan 
soldiers were killed whOe trying to 
escape April 27 from a 
camp about 10 miles (16 
ters) from Peshawar, near the Af- 
ghan bonder. The Pakistani goveru- 
ment, however, has denied 
knowledge that any Soviet or Af- 
ghan prisoners have been held in 
the coantry or that any were lulled 
in an escape attempt. 

Senior guerrilla and other Af- 
ghan sources, speaking an condi- 
tion of anonymity, said in inter- 
views that the guerrillas had been 
bringing Soviet prisoners across the 
border since 1981. 

(Continued from Page 1) 
York, and Senator Robert W. Kas- 
ten Jr., Republican of Wisconsin, 
authors of a major tax-simplifica- 
tion proposal in Congress, have 
urged the White House to bring the 
top rate below 30 percent. 

Officials said this idea was dis- 
carded Tuesday became the reve- 
nue loss could not be easily offset 
elsewhere in the plan. Mr. Ragan 
has pledged that the plan will be 
revenue-neutral, m«mmg that it 
will bring in approximately the 
same revenues as existing tax laws. 

White House officials said they 
did not expect congressional advo- 
cates of tax simplification to em- 
brace the new plan immediately. 
They said they hoped it would be 
seen as a “framework” for produc- 
ing legislation in the next few 

iration, but Israel wants to try me- 
diation first. 

A four-member US. team at- 
tended the afternoon session of die 
talks. U.S. Embassy sources said 
the Americans were participating 
as observers only in talks concern- 
ing the border dispute and would 
not be on hand for other talks 

Relations between Israel and 
Egypt soured after the Israeli inva- 
sion of Lebanon in June 1982. Mr. 
Mubarak recalled his ambassador 
to protest the invasion and a mas- 
sacre of Palestinian refugees by 
Lebanese Christian militias who 
supported IsraeL 

Meanwhile, riot police used 
truncheons to rout hundreds of 
protesters outside Cairo’s mam 
synagogue. The protest appeared 
related to reports that a ceremony 
commemorating the 1948 founding 
of Israel was planned inside the 
syna g og u e. The Israeli Embassy 
dented that a ceremony was 

Mr. WIesenthal wrote to Chan- 
cellor Kohl in response to a letter 
requesting assistance as West Ger- 
many prepares for a visit in early 
July by General Alfredo Stroess- 
ner, the Paraguayan leader. 

A West German government 
spokesman, Karin Konrad, said 
Tuesday that she was unable to 
confirm the exchange of tetters. 

General Stroessner, who was 
bom in Hof, Bavaria, mid last viat- 
ed West Germany in 1973, win be 
ftted in Bavaria by an organization 
called the Institute for the Devel- 
opment of German-Paraguayan 
Relations. He is expected to be re- 
ceived by Bavaria's premier, Franz 
Josef Strauss. 

The visit has been criticized by 
the main West German opposition 
party, the Social Democrats, and 
President Richard von Wrizsficker 
has, according to officials, extend- 
ed a summer vacation abroad to 
avoid having to greet General 

Mr. Wiesenthal said recent re- 
ports from agents and informers 
had convinced him that Dr. Men- 
gele remains in hiding under Para- 
guayan government protection. 

Mr. Wiesenthal said that Chan- 
cefiorKrihL in a letter dated March 
8, said be intended to “raise em- 
phatically” the issue of Dr. Mea- 
gde’s extradition. In view of the 
Paraguayan government’s asser- 
tions that the wanted man is not in 
Paraguay, the chancellor contin- 
ued, West German pressure would 
be more effective if Mr. Wiesenthal 
were to supply particulars to sub- 
stantiate ms belief that Dr. Men- 
gele is there. 

Mr. Wiesenthal told the chancel- 
lor that the Paraguayan govern- 
ment was in a position to profess 
that Dr. Mengele does not live in 
Paraguay because he has been liv- 
ing there since 1979 under an as- 
sumed name and as a citizen of an 
unidentified Central American 

In Februaiy 1981, Mr. Wie- 
senthal informed Hans-Eberhard 
Klein, the Frankfurt prosecutor re- 
sponsible for the West German 
case against Dr. Mengele, that the 
doctor obtained a passport of that 
Central American country in 1979. 
He was said to have done so 
through an office in the Washing- 
ton area. 

TOKYO (AP)— The pilot of the Korean Air linexjtirimer shot down 
by a Soviet fighter in September 1983 misled Tokyo «r control about Us 
altitude during the last minutes before the attack that killed the . 269 
persons aboard, according to data released Wednesday by the Japanese 
government. ■ 

In a news conference, Yutaka Hata, a member of the upper house of 
the Diet from the ruling Liberal Democratic Party, said (he data revealed 
that the pilot of the Boeing 747 had t aken comman d sad was pot 
solely on an pptofmuie plot, system during the last mi nut es. 

The new document was issued in the name of Prime Mhus ter Y asabmo 
Nafcasone and was delivered in reply to a formal Query submitted by Ml 
Hata last month. However, a research group led by Mr. Hata and 
Hideyuki Seya, a Socialist member of the upper house, did not offer 
possible reasons why the pilot would have given wrong information ip ah 
traffic controllers. 

Swedish Teachers’ Strike Is Ended 

STOCKHOLM (Reuters) — The main public employees’ union a 
Sweden called off a 13-day strike by teachers on Wednesday hut said that 
work stoppages by other civil servants would continue until wage de- 
mands were met 

Lara Backfill of the TCP-5 union said the strike by same 6,000 teachers 
would end at midnight Wednesday .to refieve pressure cm students and # 
their parents. “We baieve the teaems' strike has made hs point," hesaid. 
About 23,000 teachers still will fac affected by a lockout imposed hut 
weekend, unless employers respond to the union ges ture and allow 
schools to reopen. 

The union’s chief negotiator, Rune Larssan, said the union waseigar to 

get negotiations started again. Swedish companies said Wednesday they 
would face serious problems if the strike, winch has reduced the coantiy's 
foreign trade to a trickle, was not settled soon. About 70,000 poUfo-sector 
posts have been unmanned because of the strike and retaliatory lockout, 
which have halted air traffic and dosed customs offices at aD dux a few 

Docmnent Reportedly Found 
A document issued by an Italian • n ' ■% T T n 1 0 : 

Red cross office in 1949 bean the I Jiina Faroles Lawyer Jailed as bpj 

cno «■ juwwri. BEUING (AP) — Qinasaid Wednesday ithad paroled a Hang R&ag. 

bom. Harvard-trained lawyer jailed for spying two years agora a case 
that focused attention on arbitrary arrests rad secret detentions in tte 
Chinese justice system. 

The news agency Xinhua said that parole for Hanson Huang, 34, was 
based on his “prison behavior and willingness to serve Chinese modern- 
ization.” Mr. Huang, wbo once worked for a U.S. law firm, d isap pe are d 
in January 1982 during a visit to Bering. The government (fid not 
acknowledge until February 1985 that he had been arrested, tried asfcipy 
and sentenced to IS years at an undisclosed prison. 

The announcement said Mr. Huang was paroled by an mdOmateA 
judge of the Beijing Intermediate Peak’s Court It did not disclose Me. 
Huang’s present whereabouts or explain whether he would be allowed to 
leave the country. 

fingerprint of Dr. Mengele, accord- 
ing to an Associated Press report 
on an article in a Frankfurt news- 

The F rankf nrter Rundscha u raid 
UJS. and West German authorities 
searching for Dr. Mengele have ob- 
tained copies of the document, 
which is a temporary travel appli- 
cation issued in Genoa, Italy, to a 
Helmut Gregor and recently found 
in the archives of the Geneva-based 
International Red Cross. 

The newspaper did not identify 

its sources far the article, whi 

Dr. Mengde's right thumb- p j 

print was cm the document. r OFtll6 llCCOXu 

Dr. Mengele is wanted in West 
/, Israel j 

Germany, Israel and the United 
States for atrocities committed as a 
physician at the Auschwitz concen- 
tration camp, where be selected vic- 
tims for the gas chambers and con- 
ducted fatal and maiming 
experiments on prisoners. 

Mr. Wieseathal said he believed 

In Geneva, a Red Cross spokes- 
woman confirmed that copies of 
the application woe recently riven 
to Ui£ and West German authori- 
ties. But she said she could not 
confirm that Dr. Mengele's finger- 
print was on the document 
She said the document apparent- 
ly was sent by the Genoa office to 
the archives m Geneva for storage 
and had remained there for years. 

In the rity of Anuradhapura, Sri Iraki, 10 Tamils were killed and 11 


- V. 

homes set bn fire in reprisals against an attack by Tamil separatist 
in Colombo said Wednesday. The death tell in die 

guerrillas, police 

original attack on Tuesday rose to 145, they said. They aba reported 
attacks on Tamil property at Putialam on the west coast and Tlssanahar- 
ama in the south. (Aft 

Deputy Prime Minister U Feng of China left Bemngfor East Germany, 
Poland and Hungary on Wednesday. He is the highest-ranking Chinese 
official to visit the three East European countries m 20 years. (Reuters) 
The death toQ from Legonnalres* desease in Stafford, England, roeeto 

Hold on fo your memories. 

You keep your fondest memories 
fresh and alive when you call the 
people you care about In the States. 
The sounds of their voices. The 
stories of reminiscence. AU 
the things that brought you to- 
gether will keep you together 
when you stay in touch by 

Check Sought 
Of Israeli Sites 

(Continued from Page 1) 
plead guilty to a reduced charge, 
was departed. 

Sources familiar with the Los 
Angeles investigation said it cen- 
tered on an 
Arnon Milchan, 
worked with a Los Angeles compa- 
ny. Mtlco International, to obtain 
the krytrans from their American 
manufacturer, EG&G Ino, a high- 

37 on Wednesday, officials said. Six muses contracted the disease Got 
have recovrred and retunied to wOTfc. The disease is nc<oontayOQS. Yi4f3 
In Yugoslavia, Radovan VTaptoric, 63, took over Wednesday as pres- 
dent of the counliy’s collective state presidency, the lrigjbcst government 
body, the news agency Tanjug announced. The presidency is a rotating 
position. (At) 

The leaders of two US. affle^fa Central America are to meet in 
Washington with President Ronald Reagan, it was announced Wednes- 
day. President Jos6Napde6n Duarte of H Salvador is due at the White 
House an Thursday, and President Roberto SuazoC&dova of Honthiras 
is to visit Tuesday. (AFP, AP) 

HSS U*S. Industrial Output Falls 

dotimed front Page I) hdp to boost cneaB economic 
; economy might be reviving growth in coming months, 
sluggish fint quarter. “Retail sales m April are verr . 

n u.. „ _ supportive of the view that we wifi £ 

technology company in Wellesley, 
and I 

transfer them 

to IsraeL 

Jade Donohue, an attorney for 
EG&G, said Tuesday that “we sold 
a number of these items” to MUco 
and that “as far as we knew, the 
purchaser indicated they were for 
domestic use and there was no in- 
tention to export them." 

One source said, however, that 
“it’s dear on the face of things that 
the Israeli Defease Ministry knew 
that it was receiving restricted 
goods without having followed the 
prescribed rules." 

“What remains to be seen,” the 
source said, “is whether the admin- 
istration or Congress will make a 
major issue out of this incident 
when it’s dealing with Israeli aid or 
whether the matter wQl be soft- 
pedaled in exchange for an Israeli 
act of contrition.” 

Israel is the largest recipient of 

US. foreign aid. The administra- 
tion has proposed aid levels for 
fiscal 1986 of SI-8 billion in mili- 
taxy assistance and S1.2 billion in 
economic aid, as well as emergency 
economic assistance ot Sl-5 billion 

(Conthmed bom Page 1) 
that the i 
after a 

Retail sales, boosted by a re- 
bound in demand for automobiles, 
rose to a seasonally adjusted total 
of SI 122 billion in April after a 
0.7 -percent drop in consumer 
spending the month before, the 
Commerce Department said Tues- 

Bat, in early May. domestic car 
sales FeU 8.6 percent compared with 
the year-ago period, the seven ma- 
jor carmakers reported. 

General Motors Corp.’s sales 
were down 12.9 percent and Ford 
Motor Co.’s sales were off 3.0 per- 
cent. Chrysler Corp. posted a gain 
of 3.8 percent../ 

supportive erf the view that’ 
have a rebound in growth ia the 
second quarter,” said ADea Sinai, 
chief economist far Shearsan Leh- 
man Brothers. 

He forecast growth from April 
through June of around 3J5 per- 
cent. This would be substantial 
stronger than the Janmny-March 
rate of 1J3 percent. 

Other economic developments 
Tuesday included a government re- 
port that Americans took on $834 
billion more in instidhoeat drill 


V. — 

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than they paid off in March, 
le March i 

The March increase was 7.7. per- 
cent below the S9.04 billion ad- 
vance registered in Fdwuaty, an- 

The seasonally adjusted armnal 
" ‘ US. it 

sales rate for the U.S. industry in 
the May 1-10 period was 8.1 mil- 
lion, which is healthy but below the 
recent strong tread. 

Some economists interpreted the 
April retail sales increase and an 
upward revision in the March data 
as signs that consumer spending is 
regai n ing lost momentum and will 

Reserve Board. The 
as $1037 
Separately, the Labor Depart- 
ment reported Tuesday thatjoWess 
rates in 34 states and the District of 
Columbia in March were below 
those of a year earlier, . but .seven 
stales still were experiencing dou- 
ble-digit unemployment ... 


-!> • v 

to be spread over two years. 

U.S. Candidates Spent 
Record in 9 84 Elections 

U.S. Progresses on Laser Art ns 

The Associated Press 

WASHINGTON — Candidates 
spent a record $374 million on last 
year's congressional races, up 93 
percent from the 1982 elections, the 
Federal Election Conumsson re- 
ported Wednesday. 

In the previous two congressio- 
nal elections, spending climbed at 
rates of 43 percent in 1980 and 23 
percent in 1978. 




For Wwfc, t Uafa-fc, U» hprtww 

Send detailed resume 

far free evaluation. 


MW N. Sepulveda Blvd« 

Las Anode* California USA 

(Coatznaed from Plage 1) 
er than being reflected, bent or fo- 
cused by it 

However, in testimony last Au- 
gust before the House Republiran 
Study Committee, Dr. Room Jas- 
tro w, a p hysicist at Dartmouth 
University who is a proponent of 
the space-based missile system, 
said that ways would be found to 
f ocas radiation. The X-ray laser, he 
ssid, “is one of the most promising 
possibilities for a defeny* against 
Soviet missfles.” 

Scientists familiar with the re- 
cent underground test say that the 
results, while generally positive, 
were in some cases ambiguous. 

“It was a very good experiment," 
said one scientist, who requested 
anonymity. “Some parts worked 
welL Some didn't. But nothing was 
so good for Teller to be so euphor- 
ic.” He referred to Edward Tefier, a 
physicist at L i v e rm o re who phr 
a central role in developing the 
drogen bomb and has vigorously 
promoted development of the mi- 
clear X-ray laser. 

“To turn it into a weapon system 
a dozen other 

would ulw maybe 

tests,” the scientist added. 

Trying Lo interpret the results of 
underground nurfwir tests is com- 
plex. Analysis and debate often 
continue for months after. ' • 

In an interview, Dr. Bethe re- 
ferred to Mr. Reagan’s plan, say- 
ing: “I stifl fed thatSDI asa whole 
is nonsense, but within it one 
should not disc rinmiarft agains t the 
X-ray laser. You should not rule 
ottt any specific technology for po- 
litical^ nasoos.” 

Although weapons experts in the 
national laboratories are eager to 
pursue X-ray laser research, son* 
military officials in the paragon 
see substantial difficulties.. The 
problems include treaties barring 
predeployment of the weapons in 
space, special time constraints oo : 
trying to get them qtndctv-inte 
.space during a Soviet, attack, and 
rite damage that exploding audear 
weapons would inhier on nearby 


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By Margaret Shapiro 
Wa ta gt o g Pan Serwer 
WASHINGTON — Democrats 
on toe Budget Committee of the 
House of Representatives have 


•to. Me*." *' 

... . us ..i«.. i ■■'»e 

, Th Ji i 

•M Hdu ., :lK . Bi . *** 

1 ' tile 

wsr* ;; "3?*iTS 

p*** Sink 

that would trim $56 trillion 
federal spending, It would 
freeze tmliuuy spending, with no 
increase for inflation, and would 
not reduce Social Security benefits 
or raise taxes. 

A one-year freeze on Social Se- 
curity was a key part of the $56- 
biHion deficit-reduction budget 
passed Friday by the RepubKcan- 
oontroOed Senate. Tbe Senate plan 
would allow militaiy -spending to 
rise at the rale erf inflation. 

The plan tbe House Democrats 
agreed to Tuesday mgfrt also would 

defense number back up at teas as 
high as it is in the Senate,” United 
Press International reported.] 

President Ronald Reagan has 
said he backs the Senate’s plan and 
mB give no more grotmd on mili- 
tary spending. . 

Some m em bers of the budget 
committee, speaking before tbar 
final' vote on the plan, said addi- 

WflBam H. Gray 3d 

ad pro- 

rinnal savings in ■ 
would be used to protect 
programs Mr. Reagan had 

pond elimin ating 

mass-transit yihsii tie s, the Amtrak 
raff system. Urban Dere^pmat 
Action Grants and the Small Buri- 

Hffi l ArimmU lraHon 

But these programs stiff would 
be reduced substantially by the 
Democrats. For instance, they 
d evd- 

nr sJ 

‘ ,r, uf umi l 


Becaus e Democrats control the 
budget committee, 20-13, their 
plan is likdy to be seat to the 
House floor. The committee’s 
chairman, WffKam H. Gray 3d of 
Pennsylvania, said he did not know 1 
if it would be approved there. . 

Mr. Gray said the military 
spending froze would not hurt the 
Uni ted States because, doe to pre- 

Tbey also said revenue sharing 
with local 

s ‘■^’iKpanifs ow i 

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have approximately 
$15 biUkjn more to spend next 'fis- 
cal year than it did in 1985. 

“No contract, no equipment, so 
weapons system would have to go 
on tbe -chopping block with tms 
budget,** he said. 

[Representative Dick Cheney, 
Republican of Wyoming, appear- 
ing Wednesday morning cm a tele- 
vision interview, said House Re- 
publicans would “try to get the 

governments wonld be 
reduced by 25 percent in fiscal 1986 
and then eliminated, while mass- 
transit subsidies would be frozen. 
Education funding would get a 
smafi increase, and such programs 
targeted at the poor as Medicaid 
and food subsidies would receive 
enough funds to cover inflation. 

Mr. Gray said that, in addition 
to protecting senior citizens by re- 
faring to freeze cost-of-living ad- 
justments for Social Security and 
other retirement plans, the budget 
committee Democrats had rejected 
the “ tre me n dous” cuts in Medicare 
approved by tbe Senate. 

The Senate voted to reduce fund- 
ing for Medicare, tbe health-care 
for die elderly, by $163 
over three years. 

* Anti-Thatcher Right Gaining Ground 

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By Karen DeYoung 

Washington fast Service 

LONDON —Unease within the 
Conservative Party over Prime 
Minister Margaret Thatcher’s 
hardline economic policies contin- 
ues to grow, keeping pace with in- 
creases in the unemployment rate 
and the opposition's standing in 

The latest attack from within 
Mis. Thatcher’s party, ioUowinpits 
poor showing in county elections 
May 2, was the formation of a 
splinter group, called Conservative 
Ceater Forward, by32 Conserva- 
tive members of PariumenL 

In a speech Tuesday at Oxfcxd- 
University, Francis Pym, the for- 
mer foreign minister and chairman 

of the splinter group, said Mrs. 
bert g 

•r. t in!»ul 

V, *••>•' 

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jrial Output Fal 

Thatchers government had “im- 
.v prisoned itaif in an idectogical 

He accused it of “throwing the 
baby out with the bath water” m its 
zeal to overturn the 1970s policies 
of .tbe Labor Party. Noting that 
unemployment, has .neady tripled 
since Mrs. Thatcher took office in 
1 979, he said tbecountry*5 econom- 
ic reawery “literally does not ex- 
ist” for most Britons. 

Members of Conservative Cen- 
ter Forward have called for in- 
creased public spending and an . 
“industrial strategy" that allows for 
more government intervention in 

• *.?• 

Frands Pym, the former British Ft 
himself as he awaited a speech by 


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Uveness for British industry. AD 
these are anathema to Mrs. Thatch- 
- ^ ex’s free-market, private-enterprise 

Such outspeten dissent is nor- 
mally the province of the Labor 
Party, with militan t leftists fre- 
quently differing with the party’s 
more subdued center-left. Mr. Pym 
tempered his remarks with opening 
and dosing statements that mem- 
bers of his group were not “disloy- 
al** and disagreed not with Mrs. 
Thatcher's objectives but with her 

Mrs. Thatcher has appeared un- 
deterred by opposition from out- 
ride the jarty, and site and her 


spokesmen have tended to respond 
to internal dissent by ridicuKng or 
ignoring it Asked Tuesday in Par- 
liament to repwHate the new group, 
Mrs. Thatcher quoted one line 
from Mr. Pym. calling the Labor 
Party “anti-democratic” and$aid 
she rheartffy agreed,” 

Mr. Pym and most other mem- 
bers his group are weD-known 
“wets,” or members of ’the party’s 
moderate wing in Pariiament the 
public nature of their mtiriem has 
raised the stakes of the 
and coincides with their 
negative aspect of a number of < 
er indicators. . 

Chief among them is unemploy- 
ment now ataboot 133 percent of 
the work force According to the 

Gallup POD'S April Political Index, 
80 percent erf nitons consider un- 
employment the country’s most ur- 
gent problem, and a large number 
of those polled said Labor was best 
able to deal with it 

Only 38 percent said they were 
satisfied with Mrs. Thatcher as 
prime minister- As have other re- 
cent surveys, the Gallop Poll 
showed voting support for Labor to 
be several points higher than for 
tbe Conservatives. 

But neither the Conservative 
Center Forward group nor the split 
opposition appears to be in a posi- 
tion to seriously interfere with Mrs- 
Thatcher s p lans to win a third 
imn in general elections that wfll 
be held by the fall <rf 1988. 

Philippines Arrests 5 Rights Lawyers 


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By Steve Lohr 

yew York Times Service 
MANILA — Several human 
rights lawyers have been arrested, 
recently, and attorneys* groups and 
opposition politicians say that 
President Ferdinand E. Marcos’s 
government is Dying to iotiondafe 
rights lawyers andfrighten opper 

Five he” 1 ™ rights lawyers have 
been arrested and detained by the 
mili tary in the past two weeks. All 
are membra of the Free Dgal As- 
sistance Group, an organization of 
290 lamas throughout the Philip- 
pines who handle human rights and 
national security cases. 

The lawyers in the group typical- 
ly defend clients against the gov- 
enunoai and the rnSiary. They are 
often some of tbe most outspoken 

, ; members of the political opporitkm 

in then local regions. 

“These arreas are politically mo- 
tivated,” said Homobono Adaza, 
an opposition member of the nar 
tional assembly Iran die sonthem 

island of Mmdarao. “The govern- 
ment is trying m dismantle the legal 
apparatus of the of^osition.” 

A human rights lawyer, Marcos 
^ Rbonar Jr^ was arrested Monday 
' in Davao, the largest dty erf Minda- 

nao, the southern Philippines is- 
land where the Communist New 
. V People’s Army has its stronghold.. 
V Two otbermembcisof the Frre 
Legal Assistance Groiqj, Laureate 
; ffagan and Antonio Ardlaim^ were 

arrested Friday in Davao. Romeo 

Astudfllo and Alberto 'Benesa, two 
lawyers from thc l^al group in 
Abra Province on the mam is 
of Luzon, were taken into militaiy 
custody two weds ago. . 

The lawyers have been arrested 
on the authority erf so-called pre- 
ventive detention actions. A pre- 
ventive detention action allows the 
military to arrest a person without 
an application to civilian authori- 
ties if, with Mr. Marcos's ; 
it is detemrined that an h 
would “findaagerpuWic coder and 
safety as w^l as the stabffity of the 
state beforeproper warrant could 
be obtabmd.*^ 

The detained lawyers have not 
yet been shown, the charges or de- 
tention actions rnithoriang their 
arrests, according to lawyos from 
the lepd assistance group. 

“Marcos can do whatever he 
wants and he has decided to crack 
down on human rights lawyers,"’ 
said Joker Arroyo, chairman of the 
Human Rights Committee of the 
Free Lqgal Assistance Group. “The 
government is instilling fear in 
those who oppose h.” 

The ntight erf the lawyers has 
alarmed a UR. legal group, .whidi 
monitors devdopments in the Phil- 

“This sysematic harassment of 

lawyers fato With hmnan rights 

cases is vary disturbing to us." said 
DianeOrenthdier, deputy mrector 
-of the Lawyers Coriumfiee for In- 
ternational Human Rights. 

The. government has essentially 

contended that those arrested were 
in subversion or aiding 
Little has been said 

'officially about the two lawyers in 
•" — ^constabu- 

lary in Mindanao did issue a press 
release explaining the detention of 
Mr. Hagan. 

In tire press statement, the mili- 
tary $ajd that Mr. bad “late- 
ly been io human righ& 

lawyering for sn^tectedpenons de- 
tained for snbvasion, rebellion and 

other charges” and that Ms arrest 
was “long overdue.” 

Ml n« pn is the Mindanao 
duunnan of a leftist opposition 
group led a general 

strike for two oays this mc«th on 
Mindanao. Tbe strike brought nor- 
jnal travel and business to a stand- 
still on much of the island. . 

The two arrested in Abra woe 
the only *m™m rights lawyers m 
the area. 

“So now the militaiy has a free 
hand in Abra,” said Maria Socorro 
Diokno, a dmini strator of the Free 
Legal Asristance Group. 

Baldridge Mason to Indm 

The .issodoted Press 

NEW DELHI —The U.S. com- 
merce secretary, Malcolm Baldrige, 
arrived here Wednesday from Chi- 
na on a major visit to pranote 
trade, investment and the transfer 
of hirii tedmology. He said that 
liberalized pofioes had made India 
more attractive to UR. business. 

United Air 
And Pilots 
Near Strike 

Taxing Americans Abroad 

Bill Would Cut Overseas Exclusion by 50% 

By Douglas B. Feaver 

' Washington Post Service 

Line Pilots Assodarion and United 
Airlines, the largest U.S. carrier, 
are nearing a strike deadline in 
tough contract negotiations. 

A 30-day cooling off period ex- 
’ sat 12:01A.M. New York time 

* Weinberger Makes Proposal 

Defense Secretary Caspar W. 
Weinberger recommended Tues- 
day that Congress reduce inflation 
and other contingency accounts in 
the Pentagon budget rather than 
cut weapons prog rams. The Wash- 
ingionPost reported. 

He listed 54 billion marts from 
the fiscal 1985 budget that could be 
credited to fiscal 1986 to avoid an- 
ting into military programs. This 
would “reduce meukesbood” that 
the Pentagon would have to come- 
to Congress later this year to re- 
quest supplemental funds for fiscal 
1986, he said. 

Mr. Weinberger's recommenda- 
tions came after he had studied the 
impact of the Senate’s action on 
military spending, the Pentagon 
said in a press release. It said he 
concluded “that tbe new budget 
levels cannot be accommodated 
without seriously impacting Che de- 
fense program." 

Under Mr. Weinberger offer, 
$1.6 inDion would come from the 
surplus in this year’s account to 
cover inflation; $15 billion from 
money that has been set aside but 
not obligated to contractors, with 
$1 bffKoE of tfrat amnnnt in pro- 
curement and most of the remain- 
der in research; and $900 milli on m 
cash kept in various funds to pay 

ay and, if there is no resolu- 
tion, tbe i 

pilots’ group says that Un- 
ited’s 4,900 pitots wiU walk out. 

[Negotiators opened their third 
consecutive day of federally medi- 
ated talks Wednesday, United 

Press Infwnatinnai reported frOXD 

Boston. Both sides reported little 
pro gres s Tuesday.] 

The central icctk is whether the 
pilots' group win let United hire 
new pilots for lower wages than it 
now pays beginners and main tain 
them for many years at Iowa pay 
than that earned currently by Unit- 
ed pilots. 

United says that in a strike it 
would fly some of its schedule with 
new pilots that it has been training, 
a nd with an u ndetenmned number 
of management pilots. 

By Robert C Siner . 

fiuenuuional Herald Tribune 

WASHINGTON — Provisions 
that could levy a minimum tax on 
many Americans working abroad 
who claim the earned income and 
bousing exdnaons have been intro- 
duced by. Senator Daniel Patrick 
Moynihan, Democrat of New 

The measure would impose a 15- 
percent tax an combined salary 
and allowances, interest, and divi- 
dend income exceeding $40,000, or 

550,000 for a roamed couple filing 
a joint return. Corporations would 

have to pay a 1 5~pereenl anmmum 
tax on income exceeding $100,000. 

At present, the first $80,000 of 
income earned by Americans 
abroad is excluded from UR. taxes. 

Taxpayers would still be allowed 
to take snch personal deductions as 
charitable contributions, medical 
expenses, home-mortgage interest, 
UR. state and local taxes and casu- 
alty tosses. However, tax-shelter 
losses and preferential treatment of 
certain forms of income would not 
be allowed. 

Applied to taxpayers abroad, the 
mininmm tax would be computed 

by finding tbe “net taxable in- 
come,’’ the total of all salaries, bo- 
nuses and allowance. 

From this amount tbe taxpayer 
would subtract $40,000. or $50,000 
for a married couple; the personal 
exemption and the major personal 
deductions or the standard deduc- 

Police in U,S, Turning 
To More Powerful Arms 

However, industry observers say 
many pilots who bde 

long to the as- 
sociation would have to cross the 
picket Hue before United could fly 
a agmficant portion of its schedule. 

United carried 41 million pas- 
sengers last year, the most of any 
UR. currier Hie number repre- 
sents about 15 percent of all do- 
mestic aMinc trips. 

Tbe salary table United wants 
for the pilots is caBed a “two- tier" 
schedule. American Airlines nego- 
tiated such a contract with the Al- 
lied Riots Association in Novem- 
ber 2983. and United says if must 

haw* the <am»» filing tn remain po m - 


United is healthy financially . It 
led the industry in revenue last year 
at $6.2 billion and operating profit 
of $564 mfiffon. Inexorably, as 
American Air hires more banners 
at cheaper wages, its costs will go 
down compared with United's. 

“Tbe company’s No. 1 objective 
is to obtain a cost-competitive con- 
tract without a strike," said a Unit- 
ed spokesman. Chuck Novak. He 

The Associated Press 

NEW YORK — Philadelphia 
police used a wide range of weap- 
ons, from powerful water cannons 
to a plastic explosive that started a 
fire Ural burned nearly 60 homes, in. 
their attempt to remove memben 
of the radical group MOVE from a 
fortified row house. 

Tbe incident illustrates a nation- 
wide trend. As confrontations with 
drag dealers, terrorists and- other 
beavQy armed criminals become 
more common, police departments 
are mring new kinds of weapons, 
both lethal and nonletbaL 

Police in Los Angeles even have 
a tank, which they use as a batter- 
ram a gains t criminals’ fortified 

such a decision are many, 
the fallowing: 

• In New Jersey, the 1981 slay- 
ing of a state trooper, Philip La- 
monaco, in a gun battle led the 

Hie minimum tax would be 15 
percent of this figure. A taxpayer 
would compare this with any lax 
owed using Section 911 of the UR. 
Internal Revenue Code, under 
which some taxpayers living, 
abroad may deduct part erf their 
housing expenses, and pay which- 
ever is greater. 

However, this minimum could 
be reduced on a doUar-for-dollar 
basis by crediting any income taxes 
paid to a foreign country. The for- 
eign- lax credit is not affected by 
ihe Moynihan biff 

In introducing the fnininwim tax 
bill, which was co-sponsored by 
Senator John H. Chaiee, Republi- 
can of Rhode Island, Mr. Moyni- 
han cited 67 major corporations 

Daniel Patrick Moynihan 

that paid no corporate taxes and 
25,000 individuals with income 
over $50,000 who paid no UR. in- 
come tax. In most cases, Americans 
living abroad paid income taxes in 
the countries where they resided or 
did business. 

Mr. Moynihan called on Con- 
gress to restore “the basic principle 
of fairness, the basic democratic 
ethos of sharing the burdens as well 
as the bounties erf the American 

department to replace 2R00 357- 
caliber Smith & W 

said the average United pitot, re- 
st officers and 


was paid 591,200 a 

Untied has completed negotia- 
tions with two onions, the Associa- 
tion of Flight Attendants and the 
International Association of Ma- 
chinists and Aerospace Workers. 
Two-tier salary sc h ed u les were net 
go dated in both cases. • 

Local Balloting 
In Ulster Tests 

IRA’s Following 

The Associated Pros 

BELFAST — Northern Ireland 
voted in local elections Wednesday 
that were seen as a significant test 
of tbe outlawed Irish Republican 
Army’s following in the province. 

Tbe ballot marked the fim time 
that the overwhelmingly Catholic 
IRA’s legal political wing, Sinn 
Fan. has competed in elections 
across the predominantly Protes- 
tant province and promised to par- 
ticipate actively in politics. 

About 1.1 milKon people were 
eligible to vote for party lists cover- 
ing 989 candidates for 26 local 
councils. First results of the hand- 
counted ballot were not expected 
before Thursday. 

For the first time, Shut Fern is 
entering elections across the prov- 
ince and, equally important, is 
promising to take whatever seats it 
wins and participate actively in 

Candidates from Sinn Fein con- 
tested 91 of the 566 seats up for 
electi o n. 

In most police dep artm ents, the 
six-shooter is still standard equip- 
ment. But many police depart- 
ments have replaced the 38-cali- 
ber, six-shot revolver with 
semiautomatic weapons that fire 
more shots, reload more quickly 
and are more powerful. 

It is generally the smallest of the 
nation's 19,000 police and sheriffs 
departments that are first to adopt 
new weaponry because they can 
make changes with less expense, 
according to Leslie Dees, president 
of the Police Marksman Associa- 
tion, an organization of policemen 
who are gun enthusiasts. 

Another reason, Mr. .Dees said, 
is that the smaller departments 
“are the ones where the Green Be- 
ret goes back and becomes the man 
in charge of the potiee department 
because he’s the expert” Green Be- 
rets are members of the UR. Army 
Special Forces, an elite unit trained 
in the use erf special weapons and 

“We see that,” said Robert Haas, 
a spokesman for Smith A Wesson, 
K .gun manufacturer. “The guys 
who were in Vietnam are touch 
more concerned about their weap- 
ons than older officers." 

Ubi A. Kooks, 52, Philadel- 
phia’s managing director and the 
man wfap coordinated Monday’s 
daylong siege against toe MOVE 
stronghold, is a retired major gen- 
eral who saw two tours of duty in 
Vietnam. » 

There are^reasons for using new 
weapons other than the simple fact 
that they are available or because 
officers arc high tech- 
nology. Reasons contributing to 

r esson six-shoot- 
as wito 9mm scaaiaiiiomaiic weap- 
ons made by Heckler and Koch. 
The new weapons carry nine bul- 
lets and reload three times as 
quickly as toe old ones, according 
to Capuin Joseph Kobus. a 
spokesman for toe department. 

• In Chicago, toe Hostage, Bar- 
ricade and Terrorist Incident Team 
was having a tough time maneuver- 
ing with their 12-gauge shotguns 
and 30-06 rifles, said John Gavin, 
an officer in the Uniform Equip- 
ment Standards section. 

“We looked for an intermediate 
assault weapon fra going up small 
stairways in crowded apartment 
braises," he said. They chose a 323- 
caliber rifle wito a collapsible 

• In New York, where police 
killed an emotionally disturbed 
woman in an eviction proceeding 
last year, toe search is on fra nonle- 
toal weapons. The Emergency Ser- 
vices squad has purchased several 
stun gyms called lasers and is ex- 
perimenting wito a type that atta- 
ches to poles, said Inspector Ray- 
mond Abruzzi. commanding 
officer of the squad. 

Tascrs shoot electrically charged 
darts that cause a loss of muscle 
control Stun guns are similar in 
effect, but the pocket-size weapons 
must touch a person directly. 

Five police officers have been 
indicted in New York on charges of 
using stun guns to torture suspects^ 
but stun guns were not issued to 
them from the department. They 
were not members of Inspector 
Abruzzfs squad. 

U.S. Conducting 
Simulated Raids 
On Its Embassies 

Students, Police Clash 

Daring Protests in Seoul 

The Associated Press 

SEOUL — About 125 student 
demonstrators have beat detained 
by the police after anti -government 
protests, sources said. The police' 
and other authorities, following 
ii! uv ?l practice, declined comment 
on toe incidents. 

Several hundred students shout- 
ed slogans near toe Seoul railroad 
station late Tuesday, then broke 
into small groups, witnesses said. 
Demons tfa tors hurling stones, 
flaming torches and gasoline 
bombs clashed repeatedly with not 
police, who fired tear gas in at- 
tanpts to control toe protesters. 

The Associated Press 

W ashington — The Reagan 

oArmnic t rfitinn k simu- 

lated terrorist attacks on the most 
vulnerable UR. embassies to test 
their ability to handle future crises, 
a State Department official re- 
vealed Wednesday. 

Robert B. Oakley, director of the 
Office far Counter-Terrorism, said 
tbe program was sjnrilar to militaiy 
exercises that test the ability of 
U.S. forces to respond to emergen- 

“A writing twain ginwlarac a hi- 
jacking. a bombing or an assault on 
toe embassy,** Mr. Oakley said in 
lestimonyprepared fra a Senate 
bearing. “This program, which be- 
gan in 1983. wfll test the capabili- 
ties of about two dozen of onr em- 
bassies in higb-toreat areas daring 
1985.” He did not identity the em- 

Mr. Oakley testified on the third 
and fin«l day of hearings on inter- 
national terrorism. The Senate Ju- 
diciary and Foreign Relations com- 
mittees conducted toe sessions 
together. ’ 

Every piece of Jeweriy has a story to teJL 

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Page 4 

THURSDAY, MAY 16, 1985 




Pub&ixd Wbfa The New York Time* ad Tfar Wx&affloa Fmi 

Carry On With SALT-2 

Id kinder tunes, there would be no question 
but that the United States would deride with- 
out much fuss to keep in force the terms of an 
old, admittedly imperfect arms control agree- 
ment while working on a new and supposedly 
better one. For the Reagan administration, 
however, it is a tough question whether to 
continue respecting the never ratified SALT-2 
treaty, which the president at first pronounced 
“fatally flawed” but later reluctantly agreed 
not to undercut so long as Moscow did not 
undercut it either. The date at which the treaty 
would haw aspired is coming up, and even 
sooner the United Stales must deride whether 
to retire some old missiles in order. to make 
room for new ones under the SALT-2 lid. 

Within the administration a range of opin- 
ion is evident. Important figures on the politi- 
cal side continue to regard SALT-2 as a sym- 
bol of the failure of past arms control accords 
to do more to strengthen American security 
and as a damaging restraint on American 
arms. b uilding programs. That the Soviets say 
they can still live with SALT-2 is taken as 
evidence that the restraints are not tough 
enough. It is suggested that breaking out of 
SALT-2, far from complicating the Geneva 
talks, would give Moscow added incentive to 
consider the proposals Washington is making 
there. Anyway, why should the United States 
honor an" agreement when many questions 
about Soviet compliance are still hanging? 

Elsewhere in the administration, including 
on its. 

There is, for instance, a disposition to 

that the Soviets are considerably better placed 
to deploy threatening new weapons than is the 
United States without SALT-2. To understand 
why, you need merely look at the bedraggled 
history of the MX. Military officials can iden- 
tify no good military reason to go past the 
SALT thrifts. Diplomats worry how American 
allies would react to the spectacle of an Ameri- 
can breakout. Many observers fed that Con- 
gress would reset sharply to that spectacle by 
miring new budget hostages. The best cure for 
the flaws in past restraints and verification 
standards, many of these officials fed, is pro- 
gress in Geneva — something arguably more 
likely to come in an atmosphere undisturbed 
by the detonation of SALT-2. 

Liberal arms controllers argue that the very 
process of arms control is as important as the 
product — the agreements, which so far have 
turned out to be pretty thin. At this late d ate, 
however, no one can orally think that President 
Reagan is going to change spots and adopt this 
sort of questionable reasoning. 

Nor is h necessary for him to do sa In his 
own administration, among people devoted to 
his conservative principles, there is comfort- 
able support for continuing to observe the 
terms of SALT-2. He should do it 


Helms vs. Birth Control 

Senator Jesse Helms and his supporters are 
continuing their fight to dismantle U.S. aid far 
birth control programs in developing coun- 
tries. Senator Helms has attached a crippling 
amendment to the Foreign aid bill now being 
considered on the Senate floor and may try to 
odd even more destructive language. 

Ostensibly the Helms amendment is intend- 
ed only to prevent U.S. money from being used 
for coerced abortion and infanticide in China 
— alarming reports of such practices have 
been widely circulated — and this is an objec- 
tive with udiich no one would quarrel But the 
fact is that, under current law. no U.S. money 
now supports such activities either directly or 
indirectly. The Helms amendment is- thus un- 
needed for its stated objective. 

It is also dangerous. It would prevent any 
U.S. money from being used, either directly or 
indirectly, in any country that “permits, offi- 
cially or in practice, infanticide or coerced 
abortion,” or by any organization that gives 
any kind of direct or indirect aid to such 
country. Senator Helms states in a draft report 
that the language is dehberatdy “very broad'’ 
so that aid may be cut off not only to China 
but also to any other country in which the 
forbidden practices might be suspected, even if 
they were without official sanction. 

Since infanticide is a tragic occurrence in 
nearly every country of the world, including 

the United States, a rigorous application of the 
amendment obviously could serve to terminate 
all birth control aid. The most direct casualty 
of this amendm ent would be U.S- assistance to 
the useful and well-accepted United Nations 
birth control programs. The United Nations 
includes China among its aid recipients. How- 
ever, contrary to recently published allega- 
tions, UN money is narrowly confined to stat- 
ed purposes and no UN money has ever been 
used for abortion, whether voluntary or co- 
erced, much less for infanticide. 

Senators who are rightly concerned that 
U.S. money not be misused do not have to rely 
on birth control advocacy groups for this as- 
surance. The Reagan administration's own 
Agency for, International Development has 
repeatedly investigated UN programs and re- 
affirmed that they conform to long-standing 
U.S. policy against aiding even voluntary 
abortions. The most recent report, issued only 
two months ago, once a gain gave the United 
Nations a clean bill of health. Of course, the 
United States should use all its moral suasion 
to press for stronger action by the Chinese 
government against coercive practices. But 
senators should remember that voluntary fam- 
ily planning programs are the best-proven and 
most humane way to reduce resort to the age- 
old practices of abortion and infanticide. 


Private Bank Insurance 

Only a few weeks ago Ohio’s privately 
insured savings and loan associations budded 
under a wave of scandal and depositor panic. 
Now Maryland’s privately insured thrift insti- 
tutions are under severe strain due to large 
withdrawals of deposits. Two of these institu- 
tions have been takeover by the conservators 
of the insurance fund but others are in jeopar- 
dy and looking for federal help. 

Nothing that has happened in Ohio or 
Maryland puts federally insured bank deposits 
at risk. But the federal government’s concern 
is certainly justified. The two crises suggest 
that private insurance offers inadequate pro- 
tection to depositors and poses a threat to 
America’s national banking system. 

Congress should insist that privately insured 
thrifts switch to federal insurance or, if they 
cannot qualify, dose up shop. 

In Maryland — and also in Massachusetts, 
Pennsylvania, North Carolina and Ohio — 
siate-chartered savings and loans have been 
able to avoid tighter federal regulation of lend- 
ing and higher federal insurance p remiums by 
joining private insurance pools. When two 
such Maryland thrifts were about to default on 
obligations last week, the insurer stepped in. 

The Maryland Savings Share Insurance 
Corporation could probably have covered the 
losses of the two. but if others also get into 
deeper trouble the fund might run short. If 
that should happen, the Maryland Legislature 
would have to decide whether to make good on 
the insurance fund's unpaid debts or leave 
depositors to lose some of their money. Surely 

the state bears some responsibility to deposi- 
tors who had reason to believe that state regu- 
lators would protect them. 

That is not, however, the end of the matter, 
as uneasiness in North Carolina shows. The 
line between a state's private insurance system 
and federally insured systems elsewhere is not 
a reliable barrier against losses of confidence. 

When Ohio's private system went belly up, 
depositors in nearby federally insured Ohio 
banks were sophisticated enough to under- 
stand that their money r emained safe. But the 
Ohio crisis triggered an abrupt decline in the 
value of the dollar overseas. How foreigners — 
or Americans — would react to marc bad news 
from Maryland is not known. Bat a world 
financial system already buffeted by explosive 
movements of capital 1 would surely be better 
off if it avoided gratuitous strains. 

The prudent course would be for Congress 
to set a timetable for ending all private deposit 
insurance systems. Even federal insurance is 
no panac ea. Many federally insured savings 
and loan' institutions are in weak financial 
condition — and getting weaker. Regulatory 
reforms to prevent their manager s from bet- 
ting the store on speculative loans and in- 
vestments are overdue. 

But federally insured thrifts, however seri- 
ous their problems, at least have the benefit of 
Congress's determination — and capacity — 
to guarantee their deposits. That cannot be 
said for deposits in the still privately insured 
offshoots of the thrift industry. 



1910: A Leader Soon in South Africa 
JOHANNESBURG — The situation here on 
the eve or Lord Gladstone's arrival is most 
interesting. Every colonial Premier is on the 
way to Cape Town, where they will meet the 
new Governor-General of South Africa [on 
May 17]. Lord Gladstone will also meet Lord 
Sdborae, high commissioner for South Africa, 
and will hold consultations with him in order 
to familiarize himself with the situation. Mr. 
John X. Merriman, os the oldest politician in 
the oldest colony in South Africa, Cape Colo- 
ny, would in the ordinary course be constitu- 
tionally chosen Premier or United South Afri- 
ca, but the whole country, with the exception 
of the Orange River Colony and the western 
portion of Cape Colony, favors the appoint- 
ment of General Louis Botha on account of 
the latter’s youth and striking personality. 

1935: European Trade Talks Begin 
BRUSSELS - — Fresh attempts to promote the 
economic unity of Europe were launched when 
the European Economic Congress opened its 
three-day session here [on May 151. Among the 
delegates are the former Belgian Premier, 
George Theums, and M. Pierre Forthomme, 
who negotiated the Belgium-United States 
trade agreement M_ Paul Hymans, Belgian 
Foreign Minister, delivered the op ening 
speech. Most delegates approve of Aristide 
BriancTs proposal in 1930 for a “pan-Europe- 
an customs union,” but owing to the present 
political difficulties it is expected that the 
congress wfl] content itself with urging that the 
advanced ground seized by the League of Nar 
lions committee of experts in September, 193], 
and lost in the subsequent outburst of national 
tariffs and quotas, be again attempted. 


JOHN HAY WHITNEY, Chairman 1958-1982 




LEEW. HUEBNER, Publisher 
Exeaahe Editor RENfiBONDY 

Deputy Editor 
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Paris- ISSN: 0294-8051 

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■0 1985. International Herald Tribune. Alt rights reserved 

Writers in Politics: To Succeed, f . 
Just Stay at the Desk and Write 


By William Pfaff 

P ARIS — The Mexican writer Carlos Fuen- 
tes has said that a writer in his country 

he must rimultaneously' bea^tocljeMO the 
illiterate and a lawyer for the downtrodden.” 
Whatever the merits of tins argument in the 
pow countries— where it would seem to enjoin 
afl privileged persons, not artists alone — it has 
an extreme power of attraction for artists and 
intdkcmals in the rich countries. 

The can to Ktivism appeals to the idealism of 
intellectuals, bnt also seems to offer a solution 
to their sense of alienation — of isolation from 
the real forces at work in tire world. 

A Polish poet and essayist. Stamslaw Bar- 

kis writing. This seems to me to be a. key.. 

observation, lost in too much of the discussion 

that writers and professors have amon g ihan - 
sdves about commitment, political engagement , 

and tbetr role in the public wodd. Cj 

.' They in fact possess no spedaipofitiealquai- > 

iFications, When the ime&ectua] takes up a 
poetical rote, be does so on the politician’s 
terms, not his own. A political party o r move- 
meat may be able to use him as proptflmtost, 
analyst or but it cannot use [inn as 

poet, scholar or novelist without subverting the 
art or There is dreary evidence of 

i- ’ 


anezak, raid recently that the dose coHabor* 


(km of Polish intdkctuah and artists with 
workers in the Solidarity movement once 1W0 
has provided, for than, “a unique moment," 
One might parenthetically observe that Marx- 
ism thus at last delivers mi its promise to cure 
the alienation of mteUectaaJs: It has forced 
them into a selfless civic cooperation to resist 
the political regime inspired by Marxism. 

Speaking to a meeting organized at Skidmore 

College in Saratoga Springs, New York, to 
observe (he 20th anniversary of the American 
quarterly Salmagundi, Mr. ftwancrak made a 
second observation that significantly mortifies 

jnean&by which tkeinteUectual 

rwal, the working-class rd>eL 

the first. What has Happened m raand since 
1980, he said, has enabled Polish intellectuals 
to atone for then conduct before and just af- 
ter World War EL A great many of them had 
then been enflmaasts fa- Marxism and apolo- 
gists for the Communists. They contributed 
more than their share to the tyranny imposed 
on the Poles as the Communists were consoli- 
dating their power after 1945. 

He also said that despite the intensity and 
value of the work he did with Solidarity, it was a 
relief finally to return to his own proper work. 

this in all the “committed" but largely worth- 
less literature produced on party lines by Com- 
munists and Fascists since the 1920s. 

Even the people who more recently have 
turned themsoves into propagandists for tiber- 
al (or neo-conservative) governments — wheth- 
er under the auspices of government agencies 
or of committees for present and future dan- 
gers, and the like — have all paid some cost 
In damage to their real work. It can be reason- 

The CIA in Beirut: Less Than Extreme Caution 

W ASHINGTON — The latest front-page 
appearance of the CIA provides one 
more piece of irrefutable evidence that the 
United Slates should engage in ambitious co- 
vert operations only with the utmost caution. 

Even if the agency were absolutely first-class 
in such matters, which it is not, the nature of 
American society makes exposure of failure' 
practically certain. When that occurs, Ameri- 
can agents become subject to retaliation and a 
precious resource of national security, the 
whole intelligence community, ^ets a black eye. 

Terrorism in Lebanon provides the back- 
ground to the most recent fiasco. As that coun- 
try began to disintegrate in factional warfare 
last year. Americans on the spot became in- 
creasingly subject to violent incidents, ranging 
from threats through kidnapping to car bomb 
attacks on the U.S. Embassy and the marine 
headquarters in Beirut Several top officials — 
including Secretary of Slate George Shultz, 
CIA Director William Casey and National Se- 
curity Adviser Robert McFarlane — came to 
the conclusion the United States should devel- 
op, if only to protect its agents, a covert capari- 
ty to penetrate and pre-empt action by anti- 
American terrorist organizations. 

At the end of 1984 Mr. Reagan signed the 
order authorizing such action, ms decision was 

cleared with the chair men and vice chair men of u 
the House and Senate intelligence commitiees. ’ 
With those mandates, the CIA began to devel- 
op a covert counterintelligence capability in 
cooperation with the intdligaice arm of the 
government of President Amin GemayeL But 
the Lebanese regime is more a faction among 
factions than a central government. 

After receiving American training in coun- 
terterrorism, Lebanese intelligence agents went 
into business for themselves. On March 8 
tried to wipe out Mohammed Hussein Fi 

By Joseph Kraft 

la Vi the leader of an extremist Shiite group 
thought to be responsible for terrorist attacks 
against Americans in Lebanon. 

A powerful bomb was exploded near his 
home in the outskirts of Beirut. Some 80 people 
were killed by the explosion, box not Mr. Fad- 
lallab The story of that fiasco leaked. An ac- 
count was published in The Washington Post of 

trying to shift the blame to others. But there are 
constants that run bade from the Beirut ind- 
dent through the muting of Nicaraguan harbors 
to many previous episodes. They provide a set 
of the givens, the normal ingredients that have 
to be considered in planning any covert opera- 
tions - — the material for fust-guessing. 

For one thing America is an open society. 
Government agamies constantly Dicker with 
one another, taking their complaints to Con- 

It is naive to the point of 
criminal stupidity to suppose 
that large-scale operations can 
long be kept secret if they faiL 

May 12. Even before the story was out, various 
parties began running for cover. 

Some officials in t fee CIA claimed they had 
always insisted that the operation be limited to 
fact-gathering because anti-terrorist opera- 
tions were too dangerous. The CIA itsdf put 
ota a statement saying it had "no foreknow- 
ledge of the bombing modem." The agency 
disclaimed “any training of 'Lebanese security 
forces” involved in the Marti 8 incident. 

Other intelligence operatives blamed Con- 

gress for leaking the story, and the press for 

along toe 

publishing iL They asserted that vengeance 

would now be wreaked on American agents in 
Lebanon. Patrick Leahy of Vermont, the new 
Democratic vice chairman of the Senate Intelli- 
gence Committee, indicated that he wanted to 
some questions — as if he were not bound 
the actions of the previous vice chairman. 
Second-guessing faunre is nearly as odious as 

pul : 
by tl 

grass and to the press and television. It is naive 

ceed, can long be" kept ; 

Second, working with foreign agents is par- 
ticularly tricky. They have thor own agendas. 
They usually have scores to settle with various 
parties in their own country. Some of their 
targets are not necessarily the targets of Ameri- 
can foreign policy. Foreigners working in the 
terrorist field especially tend to be flaky, and 
they are therefore doubly unreliable. 

Third, the cost of publicized failure runs 
high. The intelligence community comes back 
into the public pulonr. U.S. agents abroad be- 
come subject to retaliation. A major asset of 
foreign policy is weakened, if not paralyzed. 

Extreme caution should be exdreued before 
en gaging in covert operations. But the Reagan 
administr ation has thrown caution to die 
winds. Exrept for the oversight committees of 
Congress, it has practically wiped out institu- 
tional checks on dubious intelligence business. 
It has converted the presdent’s Foreign Intelli- 
gence Advisory Board into a haven for right- 
wingers. And it has maintained at the helm of 
Central Intelligence a figure who combines in- 
sensitivity to ethical questions with a gung-ho 
spirit when it comes to clandestine operations 
of the most extensive kind — Wflliam'Casey. 

Las Angeles Tima Syndicate. 

by me, giving me the emine 
work has failed to provide." 

The argument has been made that Marxism 
itsdf is really the means by which the intel- 
lectual revolutionary puB down his rival for 
power, the working-class rebel. Marxism says 
that revolution is a science. You have to be an 
educated person to understand it, so as to be 
able to tell the workers what to do. 

Power and fame are the spurs, more often 
than altruism — which is exactly thesame as 
for the politician himsdf. except foathe is more 
likely to know what he is doing, and what he 
cannot do, in his hard trade, bteucrtiuls like to 
apply abstractions to living society, with the 

ocairiflml unfortunate etw^eqnqny yprii a* the 

Gulag, Pol Pot's killing fields, the camps, the 
fm nfrtg* produced by improving agricultural 
techniques in backward societies. 

In the end, nonetheless, tbepofitirian is near- 
ly always applying someone die’s ideas — die 
innocent slave, as Keynes said, of some long- 
dead economist orphuosopher. The intellectual 
wins in the end. There is no joy in this for the 
economist or philosopher, wi» would have pra 
fared the Nobd Prize and rich consultancies 
while alive; but it is probably safer that way. 
Die cobbler to his last. 

© 1985 William Pfaff. 

LETTERS: 'Theheart of the matter is not war guilt but Nazi guilt 9 

Tbe Seeds of Anti-Semitism 

The heart of the matter is not war guilt but 
Nazi gtriK. The Nazi horrors were not acci- 
dents or by-products of the war, but the 
systematic realization of a declared ] 

mils? And why do visiting dignitaries like 
President Reagan not lay wreaths at the 
tombs of Germans who resisted Hitler? 



realization ox a aeaarea program. 
Without denying national responsibility, we 
sect the racist notion of a “amity 

of course reject 

nation." But differentiation between Nazism 
and the German nation demands a clear 

break with the Nazi past The Bitburg visit 
has not helped that. It is a pity. 


As an American Jew living in Germany, I 
am all too aware of the sosds of Nazism 
buried in the guilt of this great country. The 
weed is dead but the seeds remain. 

Who ranoribers the eight martyred ham- 
lets smith of Florence where 581 innocents 
woe slaughtered try members of the Her- 
mann C- g Division in the spring of 1944? 
Or the hundreds of other communities in the 
West and tie thousands in Eastern Europe 
and the Soviet Union which suffered thesame 
fate at the hands of Wehnriadu units? - 




In 1984 I voted for Ronald Reagan. His 
insistence upon visiting the Bitburg military 
cemetery has left me incredulous. 



I was awakened the other day at 4 AJrf. by 
an anonymous (dephone call: “Filthy Jew, 
you deserve to die. Jew bastard, into the 
oven," and so on. Perhaps some felt enheart- 
ened, emboldened, absolved by a presidential 
blessing. While stressing “never again" and 
the need to remember, President Reagan may 
have conveyed by his very presence atBitbrng 
that what happened was not so bad after aR 
that it is all right now, thus encouraging not 
remembrance but ~ 



strayed by the Nazis, I consider that the 
maimer in which President Reagan's recent 
visit to my country has been commented upon 
by the American puess in general and by your 
newspaper in particular is shamrfnL 
It is one thing to ask, as Manes Spober did, 
quoting Martin Buber “AM woo am I to 
presume the right here to forgive?" But (foes 
recent history really entitle yon to pass judg- 

Did not^e^^BOTemment refuse to do 
anything to save the European Jews? Did not 
the American army commit atrocities in Viet- 
nam? Who are American journalists to pre- 
sume the right to. condemn a generation of 
Germans and to refuse President Reagan the 
right to honor the dead? 


Kronberg, West Germany. 

What Sort of Peace Is Hiis? 

Do UJS. executi o ners question their orders 
when they inject their prisoners with deadly 
poison or tie them to a chair to be fried? 

Hong Kong. 

It takes a statesman to do certain unpopu- 
lar things — Sadat’s trip to Israel, de Gaulle’s 
decolomzatkm of Algeria, Truman’s derision, 
to use the atomic bomb. Despite our personal 
losses in World War II and because of our 
relationship in the past 40 years, the majority 
of the American jpeople understand and ap- 
prove their president’s gesture. West Ger- 
mans have earned it A national referendum 
on this subject would bear this out 


MarbeQa, Spain. 

At Dachau, when asked for her reaction to 
Mr. Reagan's visit Simone VoL a survivor of 
Auschwitz, said. “California is a long way 
from the real world." (She did not say, as 
reported, “a long way from Europe.") 


Augsburg West Germany. 

'Will everybody shut up? We’re 
tryin’ losing "L&Martene.” ’ 

A Gesture of Reconciliation 

On May 5 in Biibmg, police at the barrage 
on the mam street, when asked why they were 
halting authorized demonstrators, replied 
that they were merely obeying orders. 

Amstdveen, Netherlands. 

President Reagan showed courage. His Bit- 

The average Goman dislikes President 
Reagan and could not care less what graves he 
walks past Amid aU this anti-German senti- 
ment we may wonder why Germany shnnitf 
stay in an alliance that makes it an unprotect- 
ed forward position full of weapons con- 
trolled by Americans from the safety of SDI- 
America. If it is still “Woe to tbs vanquished" 
after 40 years, then here's to neotralum! 


Braunschweig, West Germany. 

tbtighim, suffered gravely from the war. 


Europe has a 1 

again st Germans, with all the suffering 

entails. A lingering feeling remains that there 
is a streak of bellicosity jn the German people 

that could return a g am 


As an American student abroad, I salute 
President Reagan’s gesture at Bitburg as an 
encouragement to the new generation of Ger- 
mans, my generation, who have to live with 
the guilt oftheir ancestors. 



Americans hated Hitler and a few of his 
crazy he nc hme n. The ordinary German sol- 
dier — and wc had quite a few as prisoners erf 

war working on our farms in the South and 
Midwest — was thought to be a dean fighter. 

San Antonio, Texas. 

Students the world over, including Go- 
mans, are militant about what perturbs than. 
Do German students agitate for less ambigu- 
ous penalties against convicted war ctimi- 

. Bara in Berlin in 1931 as the son of a 
Prussian Jew who fought as an officer in tbe 
German aimy during World War I and whose 
very existence as a German citizen was de- 

AHied air raids turned the big cities of 
Germany into the blazing funeral pyres of 
more than 800,000 children, women and old 
men. The Germans are ashamed of the crimes 
of a mad dictator, but many Americans still 
justify those harrowing atrocities. Ronald 
Reagan and Margaret Thatcher should com- 
memorate those Victims of marine {qq 


Saarbrifcken, West Germany. 

While we Americans, with a misplaced 
sense of sdf-rightcousness, ahalti- our heads 
over the atrocities committed by the Nazis, it 
might be recalled that a German government 
has not been the only one to prepare bonify- 
ing te c hnol ogy capable Of destroying miTHnna 
(rfinnoomipccrale. The bulk erf the American 
nation sits idly by or evoi justifies the deploy- 
ment of nuclear weapons. A number of these 
have been placed on tbe soil of those whom 
we expect to fed continued shame for the * 
daughter of millions 40 years ago. 


Munhardt, West Germany. . 

President Reagan’s “1 am" sequence at Kt- 
burg was very one-sided. “Never again" does 
not mean it can’t happen a gain . It ts happen- 
mg in various places m the wodd today, and 
not only with Communist inspiration. What 
about afl those oppressive regimes the UR 
government maintains? Further, what dirt of 
peace is there to celebrate after 40 years in a ' 
world where both the United Stales and the 
Soviet Union continue an arms race that 
threatens it with -total destruction? 



Wide the Bitburg controversy raged, I read 
that toe Canadian writer Farley Mowathad 
been barred from entering the United States, 
apparendy because he wrote a book portray- 
ing toe Soviets m a friendly light As a Cfflia-. J 
man lam beginning to wonder just what sort ■ 

of values prevafl south of our border. 

MarbeDa, Spain. 

“ “Bitburg, 1985: The Dam- 
z&jsDonc, a Lesson Remains” (April Th 
cited Ryszard Kapusdnksi's reference nvhie- 
tory as a river consisting of deep 
nmt ourents and of surface flows that appear. 

“^sroxar. But die does noi oonvioc K* 

msoera the deep currents in discussing. 

Uttiofirmaicly, toe deep current involved 
^nsts of atroatws throughout histay, , 
much manifest themselves on the surface*- 
to submerge and re-emoge in endtessty' 
forms. The awnnaisNaa atroritief- 
witom view m the adult memory S- 
sWl active people. Nevoihetess, b suriW- 

anifestanoas of historical atrocities they artf ' 

Ey People, Cambodian ' ^ 


? d ° awith 

present and prospective atroddS. 


rerney- Voltaire, France. 



«V ' 

-i" -• 

.y- ■■ 

».< • 

. i • 

times the principal convert. 

Those who become advisers to presidents 
more oftoi than not find themselves turned into 
ornaments or instruments. It was flattering 
to John Kennedy to have Arthur SchlesmgcrJr- 
as cram historian, but Professor SchJesmget’s 
advice on such manors as whether or not to 
invade Cuba was ignored. Hairy Kissinger, by 
career a political analyst, nonetheless did what 
Richard Nixon decided. One may 
ask if much would have been changed 
either stayed at Harvard. 

The artist or scholar is loo oftoi drawn to 
political action because he lacks confidence in 
the authority of his trade. He is looking for a 
cure to his sense of exclusion, obscurity, fins- , . 
(ration. When toe intellectual says “I must give j»‘ 
myself to the people" he is often saying, M 1 want 

to grethemsdves to me, toteledSSSol] 

; me the aninence and. power my 

to Mt 

:u 1 


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Page 5 

k nn< t Jfyj'Jea* 1 Dubuffet, Creator of l’Art Brut, Is Dead at 83 

faff * Iff 

1 By John Russell 

Not York Times Service 

- ll5v f t . NEW YORK — Jean Dubuffet, 

H 83 > widely regarded as the most 
important artist to emerge from 
' '" lB ^ France at the end of World War n 


' ‘b {s. 
»«U \\ 

, Rt:i «, ^ 

H*-U «v 

* >« I*. 

’ V* 

**..«?*£ -- 

u and a master of French prdse^ died 

' fe* rtf Mnnhwma £tmrlav rn Paric 

‘ •' -1.. *1«l 
■v.-. ,>« 

of emphysema Sunday m Pads. 

In recent years, he was the redpi- 
I'^^eat erf large-scale sculptural cbm- 
1, r^ : missions the world over. Mr. Du- 
buffet had an international 



^ reputation as paimer, sculptor. 



<ihruJ,. b,t yii 


!,.*••• 1 **r!\ Miffci 

3 s , il ■■ it.-!-.,' 
d nifniv:.;' • **** 

I.i •: 

«vni>, u;:i ‘ 


Jt! «•— 


ic media of his own devising, col- 
lector, controversialist and corre- 
spondent In all of these capacities 
he was inimitably vivacious, pun- 
gent and contrary. 

It was in October 1944, just after 
the liberation of Pads, that he had 
his first solo exhibition at the age of 
43. It caused an uproar of a kind 
that was to become ever more fa- 
over the next few years.. 

Mr. Dubuffet was known to 
many people in the Parisian art 
World 8S a darrirng talfcw, an exed- 
ip -i* 1 * 8 lcnt arK * extremely conscientious 
r ’ ,r " ■' wine merchant, and a friend since 

his school years of same of the 
more gifted writers of the day. He 

He had made portraits of some 
of the more anment men of leans 
in Paris and had panted street 
scenes, subway scenes and land- 
scapes. But he had done these 
things as if the hierarchies of tzmfi- 
tional art had no meaning. 

in many countries. Even much of As exhibition followed exhibi- 
wbat passes now as neo-expres- don, his output in all media was 
sronism can be traced back to l'art minutely recorded and published 
brut in one or another of its forms, in a long series of publications. 

In New York, he had an early Jean Dubuffet was bom in Le 
and immediate success at the tinted Havre, the sot of a wine merchant, 
of his fust sok) exhibition — at the His early studies in art never 

All that mattered to ton, as he Pierre Matisse Gallery — in 1947. took Fire. Fundamentally insubor- 
saidlaterin published writings, was Fifteen years later a large retro- dilute, he was one of the few men 

speedve exhibition at the' Museum 

Greets Pope 
As f Pilgrim 
Of Peace 9 


it as a young man, 

id soon gave it 

had tried to 
tot got 

Few people knew what ids first 
show would be like; but it was a 
shock to almost everyone when the 
work looked — so people said — 
like the work of & graffitist, an 
rniftmghr dnld or a menial patient. 
“Is it at r people asked, and al- 
most all of them answered “No!” 

energy, spontaneity, truth to self— 
and, with them, a spirit of insubor- 
dination and impertinence. These 
t h in g s led to a rough and ready, 
caricatural form of statement that 
was completely contrary to every- 
thing that was expected of a Frenifo 

la toe with tins, he ranked the 
obscure, the self-taught and the 
clandestine artist higher th<m the 
famous and highly priced survivors 
of an earlier age. He prized work 
that had never been seen and would 
never make file conventional grade, 
and he liked artists who worked for 
themselves alone, in secret In time 

he formed an tmmCTw».iy>n ertion p f 
work of tins scut, which he gave to 
the city cf Lausanne in 1972. 

L’art bna, or art in the raw, was 
his name for tins kind of art, and 
his advocacy of it was to have a 
considerable influence on painters 

of Modem Art confirmed his stat- 
ure It also made it dear both that 
Mr. Dubuffet had the power to 
renew and redefine himself. 

His was an esthetic of continual 
change. “Unless one says goodbye 
to what one loves,” he once wrote, 
“and unl aw? (me travels to com- 
pletely new territories, one can ex- 

in military history to be dismissed 
from the French meteorological 
corps for indiscipline. 

Although in many ways a pure 
intellectual he went to Buenos 
Aires in 1924-25 as a technical 
draftsman for a central heating 
co n c er n. Later he founded the wine 

business that was to support him 
during World War n. 


pect merely a long wearing-away of After returning to art in 1942, 

oneself and an eventual exnnc- Mr. Dubuffet began an auxiliary 
don.” career as polemicist. Arguing the 

; the way, the scourge of the case for his own art, and for the 
it became the estab- kinds of art by others that he pre- 
lishment’s favorite. In particular f erred, he wrote essays in a style 
his very large black and white remarkable for its energy, its speed 
sculptures in fiberglass became fa- of wii and ferocious precision, 
voriie adult playpens, and his the- Above aD, be let a new kind of air 

ater piece, “Coucou Bazaar” had a into the art world, and he stood for 
great success during the ran of his the primacy of intelligence in all 
retrospective exhibition at the things. “Being and thoaght are 
■ Tenbeiin Museum in New one,” be wrote in one erf his last 



in 1973. 


" «.<■ ...m n^ n ?< 

Envoy Resigns, Criticises U.S. Policy on Romania 

■ thr p--« ■ L_kl or 4. ^founda 

.w v.*; ^ ■ Mr.i 

<■?{*■. 1 , 7 MSfn to tfc no* tar 
iv**|. . • person* 

|L- -, r m,ri ' li 1 ^? audio; 
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(Contiuned from Page 1) 

Ful bright scholarship and other 
on grants. 

Mr. Funderburk said he resigned 
for political reasons but ont of 
personal and famfiy considerations 
return to.CampbeD Univer- 
. atytn North Carolina to leach gov- 
erament studies. He also plans to 
' .is write and lecture about R omania 

limn In a letter accepting his reagna- 
■K'firrh-ia^ **° n ^tii deep n^rel” Presioent 
' kiv rtv-' Rcmald Reagan expressed appreci- 
ation for Mr. Funderburk’s “ef- 
forts to improve the human rights 
situation in Romania” and com- 
mended him for “steadfast support 
of our national security interests in 

Mr. Funderburk’s 1981 Senate 



Hr :• 

acozszng the State Department erf 
whitew^ihing human nghts reports 
on Eastern Europe. 

He said Ins views were supported 
by s majority of the principal offi- 
cers at the ILS. Embassy in Bucha- 

Accusing the State Department 
of disapproving of dissent m its 
own ranks, Mr. Funderburk said a 
handful of embassy officers due for 
reassignment were being trans- 
ferred to lesser posts than they de- 
served in apparent retribution for 
havin g rfmlfwiged policy on Roma- 
nia. . 

“Two at the embassy, for in- 
stance, were recently moved to ont- 
of-the-way positions back in Wash- 

A State Dep ar tm e nt spokesman, 
Edward P. pjercjian, responding to 
Mr. Funderburk’s allegations, said 
that nndw a “long-standing po- 
licy” in effect since the 1970s, “con- 
structive and creative dissect is 
something encouraged by the State 

Mr. Funderburk referred to a 
“network” of administration offi- 
cials, p rimarily at the departments 
Of State and Piv n men * and inriud- 
ingsome at the Central Intelligence 
Agency, who, he sad, have dis- 
missed or befittled evidence collect- 
ed by tbe embassy in Bucharest 

He said the evidence document- 
ed Romania’s growing economic 
ties with tbe Soviet Union, the pres- 
ence of large nnmh ent of nnrtmili- 

„ . . ipgtoa where they will be out of the 

, ..^Confirmation hearing was marked limelight,” he said. ‘They have tary Soviet personnel in the coun- 
by controversy over st at em e nts he been put in places where they can’t try, the transfer to the Soviet Union 

*•“'* — "* — ■" " UVTO ^hlet step out publicly and where they 

can be. mo ni tored. It lodes like a 
dej id end for their careers.” 


had written in. a 1978 . 
aBegmg the “aristeac hing' of 1 
m n n ism” in UJS. umveraties and 

Kohl to Meet 



By James M. Markham 

New York Toner Service 
BONN — A gpvemmenrspdces- 
f. man said Wednesday that Chancd- 

— lor Hdmut Kohl would go ahead 
with two controversial encounters, 

* an address to a gathering of Sfle- 
sian exiles in June and a visit to 
V Bonn in early July by General Al- 

— fredo Stroessner, tbe ieaikr of ftr- 

The spokesman, Jflrgen Sodhoff, 
-- said that Mr. Kohl would address 
:■ r die annual meeting of the Silesian 
Compatriot Association in Hanno- 
ver on June 16 despite an article in 
its official organ that, laced with 
__ anti-Semitic undertones, attacked 
President Richard von WmsScker. 
Tbe . spokesman said that tbe 

m ’ * ..)/ *^rorkingvirirbyGenadStrDess- 

1 f \ //**■./ < "71 lit n», who has ruled his South Amer- 
^ ican nation with an iron hand for 


. (« nm 


31 years, would “go forward as 

During his stay, the 72-year-old 
Paraguayan strongman is expected 
visit his father's birthplace in 

Coming after the emotional up- 
. roar over Pres dent Ronald Ra- 
gan's visit to the Bitbnrg military 
cemetery, the two events on the 
_ chancellor’s calendar have devd- 
' oped tbe potential for farther em- 
. barraaang him His critics main- 
tain that be has a tendency to 
stumble into difficulties. 

In the latest issue of “The SOe- 
dan, ” Martin Jenke, a columnist, 
. took issue with a speech by Mr. von 
WcizsScker to the B u n d e s ta g on 
May 8 and said that tire president 
had erroneously saddled Hitler 
■ with all the blame for starting 
World War a 

^“For the war agitators Roose- 
velt, ChurdnII & Company,” wrote 
: Mr. Jenke, “there was no Ugger 
bonanza fra: stirring up their peo- 
ples against a newly strong Germa- 
ny than the shameful persecution 
of the Jews in the ThirdRdch. Tbe 
Western powers rejected the sug- 
^stion made by Rach President 
Schacht in 1938 that they allow the 
mass of Gennan Jews to emigrale 
and to settle with than” 

The columnist also contested 
Mr. von WrizsSckei's assertion 
that most Gennai» had been in a 
position to know about, the system- 
atic persecution of tile Jews. ■ 

The opposition - Social Demo- 
cratic party has caned lor the can- 
cellation of -the Stroessner Visit os 
hihe ground that the Paraguayan 
d iet at ri r was “an international^ 
scorned friend and protector, erf 
Nazi criminals and drug smug- 

Press To Be Admitted 
To Gandhi Mrader Trial 


NEW DELHI — The judge 
bearing the Indira Gandhi murder 
trial announced Wednesday that 
•' proceedings, which resume Fri- 
day. would be open to the^ press. 

Prison authorities refused Mon- 
day to admit reporters to the open- 
ing of the trial of Satwant Singh, 
aroused of monderingTrime Minis- 
ter Gandhi in October, and of two 
other Sikhs charged with conspira- 
cy to murder. 

Pan Am to Offer 
Night Flights 

lor Angrier Timer Service 

WASHINGTON— In an ef- 
fort to achieve greater use of its 
giant A-300 Airbus fleet. Pan 
American World Airways plans 
to launch an ovcnugjbt-cargp 
service that also will cany pas- 
sengers at greatly reduced 
prices, C Edward Acker, chair- 
man and chief executive of the 
airline’s parent company, an- 

He new service, which will 
allow passengers to fly during 
the night for 80 percent less 
than the regular coach fare will 
begin tins summer, Mr. Acker 
told shareholders Tuesday at. 
Pan Ain’s annual meeting here 

.Mr. Acker said that fores and 
routes had not been decided but 
that cities served would include 
Los Angeles and Miami. He 
predicted that revenue would 
be substantial. 

A Pan Am spokesman ex- 
plained after the amnml meet- 
ing that the airline’s A-3Q0s, 
which have a very large cargo 
area, often writ for as much as 
14 hocis unused at aixporls, of- 
ten in the Middle West With 
the new service, tbe planes 
could be used “at no great in- 
cremental cost,’’ ‘ 

of technology Romania has ob- 
tained from the West, and Bucha- 
rest’s position as a major exporter 
of arms. 

Regarding the Soviet presence, 
Mr. Funderburk said (bat “our 
guys observed a large Soviet pres- 
ence in Ro mania that was not wel- 
come news to some officials in 

“On our own initiative,” he said, 
“we looked in registries, checked 
schools, traced license plates and 
came up with an ungodly number 
of resident Soviets, including Sovi- 
et agents in factories mom toting 
Romanian exports to the Soviet 
Union. - . 

“This should have been an indi- 
cation that Soviet-Romairian coop- 
eration is closer than had been pre- 
viously repealed and a sign that 
Romania isa more refiaMe Warsaw 
Pact partner than is commonly 
thought Instead, the information 
was ignored.” 

“Much evidence we sent in was 

overlooked and ignored,” Mr.' Fun- 
derburk added. “They scrambled 
to denigrate a lot of the material we 
put forward.” 

US. policy toward Romania has 
been based on tbe premise that ibe 

E ublic displays ra independence 
ran Moscow by Mr. Ceausescu, 
who has ruled Romania since 1965, 
are a genuine irritant to the Soviet 
Union and a positive example to 
other East bloc nations. 

Mr. Ceansescu has criticized the 
Soviet invasions of Czechoslovakia 
and Afghanistan. His country is the 
only Warsaw Pact member that re- 
fuses to let Soviet troops on its 
territory for maneuvers and that 
does not send troops to joint pact 

tr aining HBriys 

He defied the Soviet-led boycott TT C fifill TrviTio 
of the Olympic Games in Los An- U.O* Dull 1 lying 
gdes last year, and he has scolded rp . n . t t O*-,** ^ 
tbe Soviet Union as we H as the O 5CI Up dtRtlOll 
United States for raising i unarms 

- — The Associated Press 

Information Agency has indicated 
that it will con tonic to explore ways 
of setting op a television station in 
West Berlin to beam programs into 
East Germany. 

Funds for the proposed station 

Burns in Norway 


OSLO — When a military 
truck carrying more than 2,000 
hand grenades caught fire in 
southern Norway, the driver 
raced through a village and 
stopped in an open field before 
it exploded, police said. 

The grenades began going off 
Tuesday four minutes after he 
stopped. In the meantime he 
had halted traffic and shouted 
for nearby dwellings to be evac- 

The exploding grenades 
showered an area 300 yards 
wide with shrapneL 

in Europe over nuclear weapons. 

Mr. Ceansescu’s ties with China 
and his relations with aO parties in 
the Middle East have proved useful 
back channels for UiL policy-mak- 
ers. Romania is the only East Euro- 
pean nation to have maintained 
diplomatic contacts with Israel 
since 1967. 

Mr. Funderburk said other 
Western countries were ahead of 
the United States in reassessing 
formerly positive approaches to 

He said he had teen diplomatic.' S8! F tmIton to build and equip a 
reports describing increasingly • studiq in West Berlin and then let 
negative views of Romania among West Germany’s Ministry of Intra- 


Paul FI was welcomed by 
bourg’s head of state on Wednes- 
day as a “tireless pilgrim of peace” 
when the pope arrival in the coun- 
try after a turbulent four-day stay 
in the Netherlands. 

In a speech to greet John Paul at 
Find el airport, Grand Duke Jean 
also described the pope as the voice 
of conscience in a troubled world. 

John Paul shook hands 
the small crowd that bad gat 
at the airport before traveling to 
tbe cathedral of Our Lady of Lux- 

At a service attended by the side, 
handicapped and aged, the pope 
recalled Luxembourg's tradition as 
a bastion of the Roman Catholic 
frith. Faced with sickness, war, 
death, destruction and famine, 
Christians needed to trust in God 
as never before, he told his listen- 

“Are not the riders erf the apoca- 
lypse still abroad, with ever new 
names?” he said. “If we no longer 
have the plague today, there are 
still all too many other sicknesses 
and scourg es that befall human- 

Speaking in Ger man, one of 
three official languages of the 
grand duchy, the pope urged Catb- 
oticsiD Luxembourg to remain true 
to the Blessed Virgin Mary, their 
patron for more man three centu- 

The pope’s two-day visit to Lux- 
embourg was expected to give him 
a brief respite after the protests and 
criticism he witnessed in the Neth- 

In the first official reaction to the 
papal visit by die Dutch episcopal 
authorities Tuesday night. Hans 
van Munster, general-secretaiy of 
the national conference of bishops 
said in Utrecht that John Paul had 
pointed to defects without suggest- 
ing remedies. 

The pope is to travel Thursday 
night to Belgium, where police 
leave has been canceled following a 
wave erf bomb scares and other 
threats to security, on the final 
stage of his tour of the Benelux 

Tta »Tmnre«d Proa 

Pope John Paul .11 read an address on arriving at Luxem- 
bourg's airport Wednesday. Grand Duke Jean is at right 

Spanish Officials Admit 
Spying on Opposition 

The agency had wanted to spend 

O' L.J1J J 1— . 

iralcd its attention mainly ou ex- 
tremist, non parliamentary parties, 
although he acknowledged that it 
had collected information on the 
Popular Alliance as well. 

Mr. Elias said that most of the 
information on the alliance had 
been filed away “because it did not 
have any value” and that “very 
little” had been passed on to the 
Socialist political appointees who 
nm the Interior Ministry. 

Manuel Fraga. president of the 
alliance, retorted, “It is very diffi- 
cult to accept that the documents 
taken from here were not used.” 

Among the documents that El 
Pais said had been taken were re- 
ports by private consultants on 
ways to combat tbe Socialist gov- 
ernment and confidential position 
papers that Interior Ministry offi- 
cials acknowledged had shown up 
in the ministry before the}’ were 
presented to the Spanish parlia- 

Although Mr. Fraga calls the 
case a Spanish “Watergate.” he has 
stopped short of accusing Mr. 
GoazHez or other senior officials 
of running the spy campaign. 

In part the case appears to exem- 
plify the holdover independence of 
the intelligence agencies formed 
under Franco. 

Of the eight agencies, some have 
been accused in the press of bring 
b ehin d assassinations of Basque 
separatist leaders and others of col- 

T i t A it tt I.i lecting information on officials and 

In 5 Years Announced by Health Group members of parliament. 

_ . . 1 The Interior Brigade has about 

Los Angeles Tima Service — 1 — J — * " •— — - 

By Edward Schumacher 

New York Times Service 

MADRID — Spanish officials 
have acknowledged that a govern- 
ment intelligence agency has infil- 
trated opposition political parties. 

Deputy Prime Minister Alfonso 
Guerra said Tuesday that the gov- 
ernment would conduct a thorough 
investigation of the spying. 

The political espionage, first re- 
ported Sunday in El Pais, a leading 
daily newspaper, has angered op- 
position parties. The conservative 
opposition, the Popular Alliance, 
filed a lawsuit Tuesday demanding 
a court investigation. The group 
said that some of its confidential 
papers were taken. 

Interior Ministry officials in tbe 
Socialist government of Prime 
Minister Felipe Gonzilez sard that 
they had moved to curtail the polit- 
ical spying since they uncovered it 
in 1983. But tbe officials said that 
some of the espionage continues. 

Mr. Gonzilez, who is attending a 
disarmament conference in Swe- 
den, has made no comment on tbe 

Alberto Elias, head of the intelli- 
gence agency, the Interior Brigade, 
said that the agency has conceo- 


were deleted by the U.S. House of 

Representatives when it considered n . r n „ n • a • 

the u.s. state Department budget. Lfforts to Lituxicate Folio ui Americas 

The Senate has not yet voted on the " ' 

financing measure. 

several Western European nations. 
He said a report by an official of a 
neutral European country who had 
visited most East bloc conn tries re- 
cently concluded that Romania 
ranked worst in observance of hu- 
man rights and general conditions. 

German Relations run it The 
funds had been asked as part of the 
US. Information AgencVs request 
for construction of foolities. The 
agency said Tuesday that it will 
continue to 'explore options for a 
station. \ 

American Health Organization has 
declared its intention to eradicate 
polio from the Americas within five 
years and announced a SlOO-mD- 
tion acceleration in its immuniza- 
tion program to achieve that goal. 

Die effort announced Tuesday 
wfll be an extension of the organi- 

zation s Expanded Program on Im- go members divided into cells. Ac- 
munization, established in 1977 to cording to officials, their responsi- 
ounbat six diseases, including po- bilities include spying on pacifist 
bo. Since the program s inception, groups, Soviet residents and indus- 
poho in the Americas has dropped trialists. The brigade's court-ap- 
firom 4.T72 cases in 19 countries to proved wiretaps were key dements 
489 m 11 countries, according to in the fraud case that led to the 
figures tdeared by foe organiza- expropriation of foe industrial em- 
twm. In the United States, seven ping of Jos£ Maria Ruiz Mateos in 
cases were reported last year. 1983 . 


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Michigan Inyentor’s Device Helps Eyes Speak for Paralyzed 

By Jane Leavy 

Washington Past Service 

E AST LANSING, Michigan — 
Her name is Blanche. She lies 
in bed, as sbe has once the fall of 
1978. She waits for her husband 
who has nft come in two years, for 
her children who sometimes visit 
on holidays, for someone to change 
the television channel 
Today she waits for Martin 
King, the inventor of a computer- 
ized eye-monitoring system that 
gives voice to people who have no 
other way to speak. 

Mr. Kmg lives a life of chips and 
diodes, input and output, modems 
and programs. He is e xhilara ted by 
high-speed CMOS integrated cir- 
cuits, enthralled by EPROMs. He 
is (he new American' hero: the cora- 

“Invention is not bow to do 
something but the perception of 
need,” be said. Blanche’s need is 
dear. Six and a half years ago sbe 
entered a hospital Tor minor back 
surgery and left a quadriplegic. She 
can feel but she cannot move, ex- 
cept to nod. She can snwie but can- 
not tell you why. 

Her main communication aid is 

a 4-by-6-inch (10- by- 15-centime- 

ter) card crayoned in primary col- 
rith the' letters of the alphabet 

ors. with the 

aligned under the numerals 1 
through 5. Mr. King reads the num- 
bers and letters aloud. Blanche 
nods when he reaches the right one. 

“One, two, three, four, five," he 
says. “One, two. three, four, five" 
Plflimhe nods at a four, then an L 

then a T and an H, until slowly. 


inexorably, sbe says, “I think of old 
men being inventors.” 

Mr. King, who is 35, kneels by 
her side, holding her hand He is 
tall about 6 foot 4. Kneeling, be 
can look into her eyes, which is not 
so much a nicety as . a necessity. 
Blanche says people who know her 
can read her eyes. Mr. King’s de- 
vice, the Eyescan Communicator, 
can read her eyes and translate 
their position into written speech. 

Blanche has been testing the de- 
vice for Mr. King since December. 
The first time they used it. she 
broke her glasses. Today they will 
buy new rates. 

' Will Mr. King's machine make a 

sig nificant difference in Blanche’s 
“Yes,” said Blanche, who agreed 

to be Interviewed as long as she was 

not further identified “I like to run 
my mouth all the time.” 

Mr. King sighed “You're going 
to tins funny, aren’t you?" he 


The question was posed ag a i n: 
Will it make a significant differ- 
ence in her life? 

She looked at him, but his head 
was buried in his hands. 

“The bottom line is, *Who gives a 
Hamn while rm lying here? " Mr. 
King said “Blanche won’t tell you 
that. So I will Isn't that so, 

She nodded vehemently and 

“One. two, three, four, five,” Mr. 
King said “One, two, three, four, 
five." , 

“Let's go get the glasses, 
Blanche said 

Mary Brady, assistive-device 
specialist at Pennsylvania Special 
Education Resource Center, calls 
Mr. King “typical of the crazy- 
inventor type. 

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“1 hate that tag, because of all 
the things it denotes,” Mr. King 

said: “The eccentric guy in the 
back yard, not directed at nadity, a 

little crazy. You get a picture of 
Charles Goodi 

Banking Consultants 

lyear, who ran around 
in his rubber clothes for 10 years 
and tried toconvince people ri)ber 
was a great thing.” He added, later, 
“I hate it, probably because it’s too 



NE night three years 
read a novel about the 
of a Mafia family. “He had a stroke 
and the only thing be could do is 
move his eyes.” Mr. King said. “1 
bis is really stupid. I 
help tins guy communicate 
with a computer that monitors 
where his eyes are looking while he 
is looking a a display of charac- 

He quit his job and founded 
Eyescan Inc, gambling that he 
could find a way to make his idea 
work- He put 550,000, all of his 
savings, into the company. An 
equal amount hiss been invested by 
his mother; his girlf riend, Ritchie 
Patterson; and her brother, Hugo, 
the president of Eyescan. 

Last fall be became an adjunct 
specialist at Michigan State Uni- 
versity, working with Dr. John En- 
lenberg, director of tire Artificial 
Language Laboratory. He works 
16 to 20 bouts a day. Some nights 
he never leaves tire office. Some- 
times be struggles with depression. 

“It’s my life," be said. *Tm 100 
percent into iL This is not at all like 
work to me. It's tqyiand in a certain 
sense. Going home to sleep is actu- 
ally a distraction.” 

For Blanche, Eyescan means a 
visitor, a touch of the hand. “What 
she doesn’t realize is how the ma- 
chine will put her in contact with 
people,” Mr. King said. “She hasn't 
seen that yet.” 

The device — if it works — will 
allow her to make phone calls and 
receive mail, to shop, perhaps to 
hold a job. Mr. King hopes she will 
be able to do these tilings by Sep- 

tember, which is when he expects to 
market He 

have Eyescan on the 
hopes to sell it for less than S2LD00. 
one-fourth tire price of the Eye- 
typer, the only other comparable 
device available. 

Companies in Australia, the 
Netherlands and Canada, as well as 
the United States, are working on 
eyc-moniioring systems. Dr. Euten- 
berg has estimated that a milli on 
people worldwide could use a de- 
vice like Eyescan. Mr. King said 
there were 20,000 to 50,000 people 
in the United States for whom eye 
communication would be the only 
appropriate technology. 

“The population with that par- 
ticular disability is increasing enor- 
mously, " says Virginia Stern of the 
American Association for tire Ad- 

vancement of Science, because 
stroke patients, disabled newborns 
and others with cerebral palsy and 
Lou Gehrig's disease are all living 

The Eyetyper, which has been on 
(he market since December, is a 
stationary device that requires the 
use - to sit motionless in front of it. 
But Made Friedman, who devd- 
c^>ed the Eyeiyper for Sen tknr Sys- 
tems Technology Inc. with students 
from Cariregie-Melkm University, 
said the company would market a 
head-mounted device in the fall. 

The Eyescan prototype is a pair 
aS black-framed glasses, the right 
lens fixed with a cyBndncal donee 
about the size and shape of a rail 
shaker. The eye sees a multicolored 
display co mpos ed of seven hexa- 
gons, the lotos of tire alphabet 
divided among them and grouped 
around centered dots. In order to 
produce an A, the eye fixes on the 
tetter, which is blue, and then on 
the hexagon with the blue dot An 
A appears an the screen. 

Although it is slower than a di- 
rect gaze mechanism, which re- 
quires the eye to fix an only one 
character, it is also more reliable. 
Mr. King expects users to be able to 
produce at least 50 characters a 

Research in the area is not new. 
"The milit a ry hre hwwi inra»as i rg jy 
interested in hand-free control, us- 
ing the eye and the head to operate 
devices m the environment of the 
cockpit," said Maty Brady at the 
Pennsylvania research center. She 
supervised a Defense Department 
project involving the development 
of an electromagnetic head-track- 
ing device for aircraft pilots. 

“At the same time, rehabilitation 
researches have been interested in 
eye control" she said, “because 
with most disabled people it's the 
Iasi site of bodily controL When 
everything else goes, what they 
have left is control of the eye." 

The essence of the Invention is 
a sensor rin g within the cylinder, 
composed of six infrared light- 
emitting diodes, “which are solid- 
state tight sources tike tiny light 
bulbs, and six photo-transistors 
that have the ability to sense the 
light being reflected back from the 
eye," Mr. King said. “We turn on 
one of those light bulbs at a time 
and we look at the reflected intensi- 

ty at various positions around that 
nng. You can imagine if I shine a 
flashlight in your eye and watch 
how much light is reflected back, 
that the light will vary depending 
ou where you are looking from. 
This change is what we use to mea- 
sure eye position. The computer 
processes the reflection. 

. “The novdty of the technique is 
that the sensing mechanism is very 
simple — there is no hardware, no 
optics, no lenses. The complexity 
resides in the software. We let the 

microprocessor do the w rat." 

The device can function as an 
independent communication aid or 
can be plugged into a personal 
computer equipped to perform 
such tasks as dialing the phone. 

Mr. King was working at the 
Cornell High. Energy Synchrotron 
Source laboratory when he read the 
book about the Mafia don. His 
former bass there. Professor Boris 
Baucrman, said; “I think Martin is 
as dose to a genius as I’ve ever 
come across. Also, he’s crazy. He 
really is. His mind bubbles more 
than he can handle.” 

im - 

The character display seen by someone wearing %mran. 

Birth of Solar Systeng 
Called Battle o 

XT WAS Eyescan that enabled 
Michael Ryan, a 6-year-old boy 
who became a spastic quadriplegic 
because of medical malpractice, to 
convince insurance „ companies 
that as Mr. King put it, “he was 
capable of an intact intelligence 
ami thus capable of using a com- 
munication device and that he 
needed more money than just life 
support, he needed money to sup- 
port a technology to give him an 

The insurance companies agreed 
to a settlement that guarantees Mi- 
chael a minimum of 526 millinn 
over the course of his life 

Questions about the device re- 
main. “The questions I have are the 
visual fatigue, the difficulty cali- 
brating and the cosmetic problem 
of having a big glob hanging in 
front of your eye," Mary Brady 

Eventually, Mr. King said, tbe 
user should be able to memorize 
the display ami remove the cylinder 
from the glasses, leaving only the 
sensor ring. Patterson made a large 
plexiglass display for Blanche so 
she could bran to memorize the 
positions of the letters. 


Fossilized Leech Found in Wisconsin 

. WASHINGTON (NYT) — Paleontologists have reported finding a 
fossil bed in Wisconsin that contains the remains of what appears to be 
the oldest known leech, among many other soft-bodied creatures — 
animals that are not usually preserved as rock fossils. 

. In thejoomal Science. Donald K_ Mikulic of the Illinois State Geologi- 
cal Surrey and colleagues from other institutions said the remains 
resulted from a “unique dqpqsitional environment” that preserved the 
fossils during the Silurian period about 400 milli on years ago. 

The investigators believe tbe leech was probably predatory rather than 
parasitic. Another find in tbe fossil bed was a hitherto unknown crusta- 
cean with compound eyes, tike those of a fly, adjacent to pincers that may 
have been used to seize prey. 

Some Bulb Imports 
Endanger Plants, 

Botanists Warn Coronal Loops Called Solar 'Healing’ 

By Erik Eckholm 

New York Times Service 

N EW YORK— By merely buy- 
ing flower bulbs for then gar- 
dens, botanists warn, conserva- 
tion-minded consumers who would 
not dream of buying cheetah pelts 
or parrots may be depleting rare 
species by planting cyclamens, 
snowdrops and anemones uproot- 
ed from fields in western Asia. 

“For years, people have been 
getting wild-gaithered bulbs for 
their gardens while assuming 
they’re getting propagated ones,"' 
said Linda McMahan, a botanist 
with the World Wildlife Fond-UA 
in Washington. 

Most of the bulbs sold try mail- 
order houses and flower shops are 
propagated from seeds. But mil- 
lions of bulbs are dug up from 
mountain fields, mainly in Turkey, 
and trucked to tbe Netherlands and 
other European countries for resale 
in Europe or the United States. 

Several of the wild species being 
traded are disappearing and a few 
face extinction, botanists say. 

The greatest attention has been 
focused on cyclamens — actually 
tubers but commonly referred to as 
bulbs. Half the known pedes erf 
cyclamen are in danger in their wild 
habitats, Ms. McMahan said. 

Bulbs of same popular species of 
snowdrop, inducting Gamahus el- 
wesii, have been gathered in bulk 
from natural fields. Some spedes of 
anemone and a few rare varieties of 
tulip and narcissus from the wild 
hare turned up. 

Concerned gardeners should 

TUCSON, Arizona (AP) — Arches and loops of huninous gas that rise 
far above the sun's surface after a major solar flare may represent a kind 
of healing of the sun’s magnetic field, tbe Solar Physics Division of the 
American Astronomical Society has been told. 

Dr. R. N. Smart: of the National Optical Astronomy Observatories 
said tbe loops marked a recovery from a disruption in the magnetic field 
caused by the flare: He said tbe loops could define a healing process that 
occurs over many hours, during which strands of the magnetic field 
reconnect gradually. The loops then fade and disappear after the magnet- 
ic fidd has reformed, be said. 

Dr. Smartt's observations were based on photographs of a series of 
coronal loops associated with solar flares in 1980, obtained through.a 
coronagraph at Sacramento Peak Observatory in New Mexico. 

- Human Link to Animal Virus Found 

WASHINGTON (NYT) — Immunologists in West Germany, working 
with biologists and psychiatrists at tbe University of Pennsylvania, hare 
found evidence that certain psychiatric disorders might be related to a 
rare virus disease of sheep and horses. 

The affEction, Brona disease, causes spasms, paralysis and either 
excitability or apathy in affected livestock in Germany and Switzerland. 
Brain tissue from infected animals and injected into healthy chickens, 
chimpanzees, tree shrews and other spedes had been known to cause 
behavioral abnormalities and reduction in cognitive ability. Now, accord- 
ing to a report in the journal Science, researchers suspect a human link. 

The sdentists took serum samples from 979 psychiatric patients in 
West Germany and the United States and tested them for the kind of 
antibodies that would indicate (hey had been exposed at some time to the 
Brona virus. The screening turned up 16 patients with positive Brona 
antibody reactions, all of whom also had depression, mostly rtf a cyclic 

By Walter Sullivan 

New York Tima Service 

T HE inner planets of the solar 
system appear to hare been 
formed in a planetary Armagpddon 
in which contenders for ultimate 
survival, some of them three tunes 
larger than Mars, repeatedly collid- 
ed with one another until only one 
survived in each of the present 
planetary orbits, according to a 
newly published analysis. 

Dr. George W. Wetherill believes 
the planets had “lots of brothers 
and sisters,” not much smaller than 
those of today, which collided to 
form “trial" planets. “The four we 
see today," be said, referring to 
Mercury, Venus, Earth and Mars, 
“are the survivors." 

One of the final collisions, he 
said, probably increased the spin of 
Eaith sufficiently to throw off ma- 
terial that then consolidated to 
form the moon. 

Dr. Wetberin, director of the de- 
partment of terrestrial magnetism 
at the Carnegie Institution of 
Washington, published his findings 
in the journal Science. His hypoth- 
esis is derived from a computer 
simulation of what probably hap- 
pened after the solar system began 
to take shape from a rotating cloud 
of dust and gas about 43 billion 
years ago. 

The analysis took into consider- 
ation various factors affecting the 
formation process once about- 500 
bodies, each one-third- the- size of 
the moon, had formal in the region 
around the sun now occupied by 
Mercury, Venus, Earth and Mars. 

Among those factors were the 
gravitational fields around each 
object, tbe frequency of near-hits 
that would throw the objects into 
eccentric orbits, and the ooUisons 
that might have canceled tbe eccen- 
tricity. K 

Collisions would have generated 
enough heal within Earth to melt 
most, if not all, of its interior. Such 
melting would have occurred 
throughout the bombardment, al- 
lowing heavy material to rink and 
form Earth’s metallic core. 

The calculations assumed that 
not enough gas was present to af- 
fect motions of tbe ejects as they 
sped past one another. The inner 
solar system, many sdentists be- 
lieve, was swept clear of gas by a 
violent “wind” from the sun. 

Furthermore, each collision 
would hare driven off most of any 
planetary atmosphere that had be- 
gun to accumulate. Since the im- 
pact histories of Earth and Venus 
woe different, this could account 
for the differences in their atmo- 
spheric abundances erf inert gases 
such as argon. 

Initially, material destined to 
form the planets was so uniformly 
spread around the sun that its mo- 

tions were- „ 

collisions much like those i 
cules in a hot gas. By the tiBtelhis 

. i was 10 

raaterial had fc 
bodies, their mutual, 
attractions would 
significant factor. 

What ensued was i 
By the time the solar 9 
million years old, Dr. 

Eeves, the existing ; 
quired SO percent afjbetrpreseal 
material; after 100 mfl&on years, 
the process was. 99 percent com- 
plete. According to the calcula- 
tions, the planets that survived 
would have been in Drifts very 
much like those of today. 

Age deterrra nations on mooq£ 
rocks indicate that the last great 
crashes, enough to pftitftfc* tbe lu- 
nar seas, did not emTuotil 3,8 bil- 
lion years ago. By then, however, 
the bodies were “quite smaU," Dr. 
Wetherill said — about 30 miles in 

It may be, he added,*thal no 
planet formed in the asteroid beta, 
beyond the orbit of Man but inside 
Jupiter’s orbit, because the im- . 
raense gravitational pull of Jupiter 
threw much of the material there 
out of the solar system. . 

Women Smokers 
Victims of Disease^ 

Linked to Cancer 

United Pita InlcrmlKfnaJ 

L OS ANGELES — Women who 
* started smokmgriimng World 
War II are being treated in increas- 
ing numben for a chronic lung dis- 
ease that has now been Baked to 
cancer, researchers say. : - 
Dr, Dorothy Sexton of the Yale 
University School of Nursing said 
Tuesday at the annual American 
Lung Association meeting that a 
study of 112 women compared 
those with chro nic obstructive pul- 
monary disease— apo^x of disor- 
ders usually characterized by 
“smoker’s cough” — to healthy 
women who did not smoke. • 

Tbe results showed that women 
with tbe disease were more restrict- 
ed in activity, suffered more from 
loneliness and depression and felt * 
ill more often, she said. P 

Emphysema and chronic bron- 
chitis are the most frequently diag- 
nosed forms of the- disease, the 
most common chronic lung disease 
in the United States. Although it is 
most often caused by smoking, re- 
search also shows it can develop 
after long exposure to environmen- 
tal and occupational pqflutanls. 

A report at (be meeting by doc- 
tors from the Mayo Clinic in Roch- 
ester, Minnesota, said the disease 
was also linked to lung cancer. 

la Between June and July, 

Plea Made for Endangered Primates One Second Will Be Added A 

WASHINGTON (UFI) — Developers who have cut down tropical 
forests have made survival so difficult for monkeys, gorillas and other 

The Associated Press 

perfectly kept human time to the 

check plants’ origin, the British ex- 
field wr 

pert Sara Oldfield writes in Garden 
magazine: “If in doubt they should 
ask the nursery proprietors and teO 
them of their concerns." 

too late;” said the chimpanzee expert Jane GoodaH, honorary head of the 
five-year, $1 millin n fund-raising effort by the World Wildlife Fund-UJS. 
Tbe organization warned that up to one- third of 200 species were 
threatened with dramatic population declines and 14 percent could 
become extinct by 2000. 

Russell Mittermrier, director of the money-raising campaign, singled 
out the black lion tamarin as the most endangered primate, noting that 
only about 100 are still living. Extinction could come within three years, 
he said. 

On the last minute of the last 
hour of the last day in June, one 
second will be inserted into the 
atomic docks at the U. S. Naval 
Observatory in Washington and at 
the National Bureau ofStandaids 
in Boulder, Colorado. That minute, 
that day, that week, thisyear will be 
a second longer — all to match 



Arthur Andersen & Co., the international 
accounting firm, seeks US. tax professional in London 
Multinational T£x Services Group. Salary level 
commensurate with background and experience 
Applicants must be US. qualified CPA or Lawyer . 
with 7-8 years' tax experience in corporate tax matters 
Please write with lull CV to'Carol Ufebb. Arthur 
Andersen & Co. ! Surrey Street London WC2.R 2 PS. 





sacks a 


To work on several countries In the American region including 

The work indudes investigating human rights in this area, preparing material 
and advising on initiatives to be taken by Amnesty International in relation to 
prisoners at conscience, trial procedures and the treatment of prisoner?. A 
speaafisr knowledge of (he region, particularly the pofitical and legal 
background, is required. The ability to seek out and evaluate information 
objectively and to communicate fluently oroly and in writing in English end 
Spanish s essential French would be at advantage. 

Salary: £9,676.20 (index-linked annual Increment s ). 

dosing dote June 14, 1985. 

For further details contact the Pmonnei Office Amnmtv Interna- 
tumaL (left AMR 2), I Easton Street, London PTClX SDJ or- 
telephone (OI) 837 3805 (24 hours) . 

Men’s collection 

Summer suits: 
unbelievable lightness! 

Less than 700 grams (22.4 oz.): that’s the total weight of an 

incredible high-summer suit offered by Lanvin. 

The secret qf this exceptional lightness is that it is made of terital 
twill woven on authentic silk looms. Another advantage 
Of this fabric is that it does not crease. 

It makes an ideal suit for travelling, as it washes Just like a shirt ; 
by hand or in a machine, it dries in three hours, 
and it needs no ironing. 

It comes in navy, beige , petrol blue, brown or putty, either in town 
$u it cut or with bush Jacket, Yo u can also buy Ih e pants separately. 


IS, me du Faubourg Saint -flnnnrc, 7 thus /bins • 7?/. 265.14.40 
- . -- rue ( Mm bun. 1)00 1 Puri* 

dock time is 
frequency of the cesi- 
um atom. Solar time is based on the 
Earth's rate of rotation. The two 
are not always the same. . . 

Tbe official time represents the 
average of many cesium-beam 
atomic docks. The system, says the 
naval observatory, is accurate lo 
within a billionth of a second per 
day — “a time-measurement pred- 
aon equivalent to measuring the 
distance to tbe sun to within less 
than oae-tenlh erf an inch." 

But humans, whose timekeeping s 
predates atomic docks, like to & 
watch tbe sun and tbe stars to set 

their docks. When a given heavenly 
body is at tbe same pace tomorrow 

as it was today, that's one revolu- 
tion, one day. And Earth cannot be 
counted on like cesium atoms. 
Sometimes it speeds up. Mostly it 

The rotation is uniform only to 
within one-thousandth of a second 
per day. In the observatory's analo- 
that is equivalent to measuring 
tne sun's distance to within about a 
mile or 1.6 kilometers. 

To get the atomic and solar time 
standards together, a “leap second" 
is slipped in evenr so often. It was 
done twice in 1972 and has been’ 
done once every year since except 
for 1980 and 1984.. The extra see* 
ond inserted between the end of 

June and the beginning of July will 
be (he 13th in the series. 

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THURSDAY, MAY 16, 1985 

Page 7 


^ b > *>m„ ini 

By Franks Heard-Bcy 

ABU DHABI — Hie United 
\»Arab Emirates is a small country 
^by any standard, with just over 12 
mJKtm inhabitant s , ft 1 opt” - to w p - 
predate why (his apparently fragile 
federation, holds together, h is re-. 


nfc »f Pirn e 

: 'u-.i; 

' rvvn 


«-■ ^ ii. 
'•‘UIV!..;) t| 


' lxi{ mutual £ 

V'‘ : " »i'uU bit 

■ ■ >.c- : ar „, 


* • . . ftl*. 

* - 1 . '■ !> "v.', =srL 5 . 

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’ • Uu- ^ 

Political Consensus Hurt 
By Lower Oil Revenues 

By Sarah Searight 

warding lo focus on the even small- 
er political units that ctmstrtute tins 

The seven emirates are not neat- 
ly balanced districts, created for 
administrative purposes. They are 
ideal entities that predate tire 
oundation of the federation in De- 
cember 1971. Each has its own 
■ ■■■ '*c!c klcuTinin^L identic rooted in iristoiy. ThfrOil 
*’ ‘ JAc^'v revalues of three of thesevenemir- 

g* ates have turned some areas of the 
' *■ UAE. into cosmopotitan urban 
centos, while other para of the 
country have changed compara- 
tively little 

over the last two de- 

'•X !>• £ 


The historical developments that 
were responsible for mating these 
seven political entities so very dif- 
ferent in size of population and 
area, however also provide the 
strongest common band between 


O: Oman 
A: Ajman 
D: Dubai 

AO: jointly adminfe- 
lered by Ajman and 
F: Fujairah 
FS: jointly adminis- 
tered by Fujairah and 
& Sharjah 

babdGnUtlln u aa / HT 

■■ ,J - 
-«- p * ' 

Until recently territorial borders 
did not matter in fins comer of the 
wcaid; what mattered were people. 

i: "Pi: growers or traders, they wotted 

mostly within jhe '‘mnnmir. frame- 
work of the extended family or the 
subtribe. They were politically 
bound together by reco gnizing die 
leader of one trinil group as their 
representative in disputes with oth- 
er tribes and as meriiptnr and 
est legal authority in domestic 

A tribal sheikh attained his posi- 
tion cuty partly bdcmgmg to the 
family that had tradition ally pro- 
vided die leader. He also had to 

• -i-'t-r. 

- ..if-;. 



excel in the virtues rapected of him 

\\ omrn Smi' 

\ itiimsollV 

1 inked lofe 

— personal courage, sense oL jus- 

tice, generosity. The hisuny ( 
seven emirates is full of incidents 
where entire tribes withdrew their 
loyalty and attached thpnsdves to 

another, particularly charismatic 
shaikh IBs standing was thus 
greatly enhanced, having acquired 
not only many more fighting men, 
but also access to more of the pre- 
cious few {daces of economic value, 
such as oases, natural harbors, 
markets or grazing areas. 

Hms, successive sheikhs of a 
smaS but «n«get ic clan of mari- 
time trading Arabs, the Qawasim, 
manag ed during the 18th and 19th 
centuries to attract as thrir follow- 
ers almost all the tribes living in the 
areas .now belonging to the emir- 
ates of Ras al-Khaunah, Sharjah 
and Fnjsirah. Their descendants 
failed to maintain a grip on these 
tribes, which live on the coast of the 
Gulf, file coast of the ladiyn Htmti 
or in the most inaccessible valleys 
of & barren mountain range. Eany 
this century the core of the Qawa- 
sun “realm” split up into two parts, 
Ras al-Khaunah and Shag>h, 'both 
ruled by. different branches of fire 
Qawasim. On tike east coast the 
tribaUeaderof the large Sharqoiym ' 

Map adapted from **From Trodal States to United Emirates,” 
by Fiaahe Heard-Bey, courtesy of Longman Group Ltd. 

tribe finally manag ed tO shake Off 
Qasinri domination in 1952, when 
Fujairah formally k*«wie the sev- 
enth Trucial Stalft 

ln Abn nh»W oiw^ctiw nhiiHjy 

of the A1 Bu Falah, a subtribe of 
the confederation of Bani Yas 
tribes, have retained the undisput- 
ed of all the tribes firing 

in. 'the sandy desert and along the 
coast of what is now the territory of 
the emirate of Abu Dhabi. But in 
2833 another subtribe of the Bam 
Yas, the A1 Bu Falasah, seceeded 
from Abu Dhabi and joined other 
Bani Yas tribesmen is the ffahhig 
settlement rtf Dubai, a move that 
very soon led to the establishment 
of the sheikhdom of Dubai under 
the descendants of Makimn bin 
Buti, who died in 1852. 

Tribal politics and the personal 
standing of leading sheikhs have 
been eclipsed by a new political 

The London-based Iraq Petro- 
leum Co., an imernatinnal anman r- 
t mm obtained concessions in all 
the then Trucial States from 1938 
onwards. As soon as h began ex- 
ploring for ofl in 1946 the defiuea- 
-tionof the boundaries of the con- 
cessions became all impohant. 
Henceforth, politics was no longer 
only a matter of the loyalty of tribal 
people, but of possession of square 
miles rtf desert with the potential of 
off-bearing rock beneath. 

OQ was first found in commer- 
ce] quantities in Abu Dhabi terri- 
tory m I960, and in dne course that 
state became one of the foremost 
exporters of off and gas in the 

Today, after two dec a d es of oil- 

exportnig, (he population of Abu 

has grown from 47,000 in 
1968 to some 520^000 inhabitants, 
of many nationalities in two highly 
urbanized centers. 

Since the state of Abu Dhabi is 
host to the U-AJL’s capital of the 
same name, the ever-present ques- 
tion is: Where does the emirate end 
and the federal state begin? The 
simplified answer is that ji begins 
at the purse strings. Haring pro- 
moted with singleminded dedica- 
tion the formation of the federal 
state and having been its twice re- 
elected only president, the Ruler of 
Abu Dhabi bved up to expectation. 
In the initial years he committed 
unKantcd funds from Abu Dhabi 
for developing and naming the en- 
tire federation 

This generosity, vyfnch stands in 
the tradition rtf a successful tribal 
sheikh, was linked lo one condi- 
tion: to progressively solidify the 
newty created federation. In a mul- 
titude of aspects this has certainly 
been successful Backed by Abu 
Dhabi's funds and an army of bu- 
reaucrats, most federal ministries 
extended their operations into the 
(Continued oa Ned Page) 

The writer is the author of “From 
Tnicial Stales to United Arab Emir- 

ABU DHABI — The United 
Arab Emirates is a rich country by 
any standards, despite the cries of 
economic hardship from individual 
emirates. Its dependence on ofl and' 
gas revenues, however, has left the 
economy vulnerable to the fluctua- 
tions of world energy prices. Oil 
revenues have been halved over the 
last three yean and may fall fur- 

The effect is most strongly felt by 
the smaller, poorer emirates, whose 
individual economies have been fi- 
nanced principally by federal 
(pending augmented by the per- 
sonal generosity of Sheikh Zayed 
bin Sultan al-Nahayan, the 
UAE’s president. 

Today, with the reduction in fed- 
eral resources, especially develop- 
ment spending, which was down 
last year by around 27 percent on 
t983's figure, the institutional 
weaknesses of the federation and 
die old rivalries among its members 
have resurfaced. 

The federal budget should run 
from January to Deoember but for 
the last two years it has only been 
approved in midsummer, and 1985 
is Hedy to be the same, both in the 
timing and in the amwmtu- In 1984, 
expenditure was budgeted at 17.2 
billion dirhams (54.69 billion) and 
income was around 12B bOHon dir- 
hams; the wrii^ifeH 4.4-bflfion (fir- 
ham deficit was funded by Abu 
Dhabi Dubai. Actual expendi- 
ture is generally lower than esti- 

All the ofl-produdng emirates 
are supposed to contribute half of 
their cu revenue to the budget, but 
in practice, only Abu Dhabi and 
Dubai do sa Abu Dhabi contrib- 
utes around 80 percent of the total, 
half its oil revenue of 34.7 bflfion 
dirhams, plus its share of the defi- 
cit. Dubai's oil revenue, is a some- 
what mysterious figure because it 
sells its ofl independently but the 
total is around 13.1 bflfion dir- 

Dubai usually wi thholds some of 

its contribution to federal spend- 
ing. When Abu Dhabi complains, 
Dubai argues that Abu Dhabi gams 
most from federal spending, and it 
also disputes federal military pur- 
chases made by Abu Dhabi. De- 
fense absorbs about half of federal 
budget allocations but the emirates 
spend without much consultation 
among one another. In Abu Dha- 
bUs case, such spending, includes 18 
Mirages bought from France, the 
building of special shelters for the 
aircraft and three military schools. 

Ike institutional 

weaknesses of the 


federation and the 
old rivalries among 
its members have 

Hie Mirage purchase was mainly 
covered by an ofl barter arrange- 
ment Abu Dhabi also considers 
that Sharjah, whose condensate 
production is now at 60,000 bands 
a day, should contribute to the 

budget. Shariah replies that this 
" i only if there were 

would be possible < 
more signs of accountability from 
ministries in Abu Dhabi. 

Consensus is not always easy in 
the UAE, and the frequent ab- 
sences abroad of Sheikh Zayed and 
the prolonged illness of Sheikh 
Mai turn bin Rashid of Dubai ac- 
centuate the impression of a rud- 
derless economy. 

Both in the Federal National 
Counril and in the chambers of 
commerce, local merchants are 
pressing the authorities for a 

prompter budget and, above all, 
[ of fede 

the revival of federal development 
spending. There has also been criti- 
cism of the lack erf an overall devel- 
opment plan. This stems partly 
from the fact that outride the fields- 

of health and education, few feder- 
al ministries have effective writ. 

Federal action, not only In bud- 
getary matters, is generally the re- 
sult not of ministerial action but of 
meetings among three or four offi- 
cials from Dubai and Abu Dhabi 
Council members have asked to see 
u report by an economic committee 
set up by the president lost autumn, 
in the hopes that this will lead to 
some kind of activity by the au- 

Abu Dhabi's economy often 
seems in a worse plight than Du- 
bai's because of its greater depen- 
dence on ofl and gas and the vaga- 
ries of the worid market. Much of 
its administrative structure is still 
finding its feet; it is not easy for so 
young an economy to deal with a 
31-percent fall in revenue since 
1980, when many projects that 
seem extravagant in today's terms 
were conceived. 

Attempts to diversify from hy- 
drocarbons have been unsuccess- 
ful but there are oil reserves to 
cover 50 years of production at 
current rates and tnis output re- 
leases a steady flow of dir hams into 
the local market through oil-servic- 
ing business. 

Last year, the Abu Dhabi gov- 
ernment borrowed 1.5 billion dir- 
hams from the National Bank of 
Abu Dhatn to cover its deficit. The 
chair man of the bank and of the 
Abu Dhabi Investment Authority, 
Mohammed Habroush, recently 
said that such borrowing would 
probably be needed for another 
two years before the winding down 
of projects leads to a balanced bud- 

Meanwhile, the Central Bank is 
flexing some much-needed federal 
muscle in the banking sector both 
in Abu Dhabi and Dubai talcing 
measures to improve liquidity 
while malting local banks more ac- 
countable: None of the hanks, ex- 
cept the conservative National 
Buik of Dubai which is described 
as the Dubai government’s “trea- 

(Continued on Next Page) 

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'Page 8 



Economic Squeeze Quickens 
Pace of Mergers in Banking 

By Stephen TimcweH . concept has gained momentum and new bank’s capital and reserves 
' * three hank mergers have taken and to provide for the three banks 

r AvrnAM < .^.n. . . u . _ « * * _t 

Military Necessity Is Forcing Closer Cooperation 

y " Mohammed bin Rashid al-Maktum. ft 

pill* 11 ’ 

By Robot Bailey 

Arab Emirates following the col- 
lapse of Union Bank of the Middle 
Hast. With ofl revenues at little 
more than half the 1980 peak of 
S13.6 billion the economy of the 

federation has rfiangtS significant- 
ly but the hanlrtnj* sector, Mlich 
has ballooned dnnng the boom, 
had' not responded to the squeeze. 

* Bankers readily acknowledged 
that the country was overbanked 
and that a country of 12 mfllion 
people did not need over 50 banks. 
The Central Bank, too, had no 

Federal Commercial Bank, Khaleej Dhabi and the re mainin, 
Commer cial Wan if and Emirates divided between the three 
Commercial Bank — combined to — fhflt 

The pattern that has emerged 

£5 ibis year is that the government or 

LONDON — The spillover risks from the long-running 
war between Iran and Iraq have been highlighted by tire 
growing number of attacks bn ships in thcGulf by both 
belligerents in the last 12 months. The atmosphere of 
violence has given greater legitimacy to the United Arab 
Emirates' heavy nnlhaiy spending of the last few years. 
However, such expenditure has proved to be of limited 
value in building up a viable deterrent to aggre ssi on. 

The compromises inherent m the fragiV makrirp of [he 
UA.E. are reflected in federal policies toward 'Mfrnsf 
questions. On one hand, the dominance and concern of 

«£«*“■ seeratheomy 

The much-rumored merger of most all the ] 
the three commercial banks foOows candidates sufl 

rly make stronger banking units. This 
seems the only possibility since al- 
of most all the prospective merger 
ws candidates suffer from the same 

lea d ership of the Gulf Cooperation Council is recognized 
by the participation of the Abu Dhabi armed forces in the 
GCCs Peninsula Shield nri&taiy 

diplomatic relations with Tehran. Most cooperation be- 
tween the U.A-E. and Iran ended with the fall of the shah 
and the individual emirates have only enroll, though con- 
centrated, Shiite Moslem minorities, com p r o mising not 
much more than 6 or 7 percent of the population. 

Howewa; Dubai, despite the Iranian revolution and the 
war, has maintained a healthy re-export trade with Iran, 
while Shaijah remains dependent for its oil wealth on 
Iranian cooperation. 

Relations with both its major neighbors in the region, 
Saudi Arabia and Iran, have been complicaied by rivalries 
among the individual emirates themselves since indepen- 
dence, particularly between Abu Dhabi and Dubai An 

son, Sheikh Mohammed bin Rastud al-MUtum, weflfr- 

W » a .empay y -itfrinw l rt 
Dubni's forces from the joint U.A.E. emnroiuja. 

But altfKWgh the old-style family nvalnwa^BB* 

fikelv to go away cniiidy, tower oil revratwand the a*4 

Sjri^mciaingly ^totaa teddd e ngaynm.a.B 
wdl as the threat from Iran, ore forcing greater coopera- 
tion in security nutters. 

i V /- ■ 

The u5 E.’s complicated, expensive and StiB 
search for security starred afwrSSa ended te.Wfite 

the takeover in January of the small problems of bad loan portfolios. 
Dubai-based Emirates National Inadequate liquidity and weak 

On the other hand, both historical and longer-term 
considerations are recognized by the maintenance of foil 

Relations with both its major neighbors in the region, search for secuntysiarttm a “r“ n *?“ C aT,, -muMKy 
Saudi Arabia and Iran, have been cotnplicaied by rimrira role in the Gulf m W L S«w 
among the individual emirates themselves since indepeu- maintained one of 
dates, particularly between Abu Dhabi and Dubai An turcsin the worUL 
example of this occurred in 1978, Mien the U.AJE. presi- billion dirhams (S 1 .86 bi llion 
dent, Sheikh Zayed bin Sultan al-Nahayan of Abu Dhabi, tion of 1 2 million, half of who® w 
named his sou. Colonel Sultan Inn Zayed, as commander The foreign dement is evident m »re »cdw« wuj 
in chief of the federation's armed forces without consult- 43,000-raan armed forces, which has fl high yopwootira 
ing either the federal prime minister, Sheikh Rashid bin recruits from Boluchisten as well as Pakistani, Jonanae 
Said al-Maktum, the ruler of Dubai, or Shaikh Rashid's 

and British contracted officers. 

doubts about its objective. The 
governor, Abdul Malik al-Hamar, 

Bank by Union Bank of the Middle management. A mere merger 
East, which is now 73- percent would only compound the prob- 

govemor, Abdul Malik al-Hamar, 
said on numerous occasions that 
“we want fewer banks, better quali- 
ty banks and stronger banks." The 
| question, however, was how to 
•Achieve this aim when the banks 
jwere often linked inextricably to 
ifamiiy, tribal and emirate ties and a 
;lot more was at stake than just 
I Hank assets. 

; The political and social dimen- 
sions of the merger issue have been 
^compounded by the Central Bank’s 
'relative inability to enforce certain 
requirements, but this is changing. 
As one Dubai Hanker put it: “You 
can’t have a shotgun wedding in 
.this society; force will not work 
here. The shareholders simply have 
to come to grips with the problem.” 

This year, either through gentle 

owned by the Dubai government. im«. 

One of foe ironies of the changing The Central Bank has been slow- 

fice of Emirates banking is that ^ tightl!nin& up the system. With 
UB^isnowonerf the vdudes JJ e SSonof new regulatory 

measures in January on bad loans 

for implementing the government 

Construction Projects Favor Local Contractors 

“SK Jess than two years ago ^presentation of balance sheets 
the Dubai government had 1 infer- problems in many of 

vened to prop up the bank when its cLh. Qn > 

principal shareholders were Abdul 
Wahab Galadari’s two brothers, 
Abdul Latif and Abdul Rahim. 

measures in January on bad loans By Toby Odone reven ues f rom their ofl, have “As federal minister, I do not 

and 'presentation of balance sheets , nMr)OTy , _ ju. nn :, M slowed down their development have control over what the other 
the stnictural problems in many of ^ P^Offams. Stapah has Idem off emirates do - only over Abu 

the smaller banks are becoming aadw usmg foe revenues from foe Dhabi” was foe way foe minister 

nrare evident " tSSS of petroleum , e- 

mare evident 

As foe economy is unlikely to 

construction market in the Middle develi 
East since 1980. But with foe ex- base.' 

“As federal minister, I do not In 1984 Abu Dhabi allo- 

ive control over what the other cated S5.9 billion for spending. But 
urates do — only over Abu themajorprqects expected to go to 
babi” was the way foe minister tender did not. These were: foe 
. petroleum and mineral re- Hodaryat, Sadiyat and Maqra 
a r i on g- term industrial sources, Mana Said al-Oteiba, bridges Mfo a combined value of 

to be contracts this W for several 
road widening jobs in Ipeaty. 

.our northern emir- summed up the problem in an in- about S500 millio n and foe S55- 

EasSKSs ssssas s.'ssm 

The oil sector is stiQ a in^or 
source erf woifc. The two U.Sgw&ta, 
Bechtel and Fluor Cocp„ have 
managed to monopolize most tf 
the project management side of fo- 

W r(t 

ot with the bigger 5tat»ontrDnal 

arrangemaits for feth_ deals are 

the seven emirates, typified foe 

ersm federation. tire reductions in production called tion of hardened shelters at the 

Payment delays and wrangli ng for by the Organization of Peticv- Dhafra air base. The law bidder for 

undwTMd complicated by the 29 fo f a Sn banks, a justifi- of the late 1970s and early 1980s to uc to plague federal funding. In 

government involvemenL ranonfl l e sm ¥ ler Projects that arc of December 1984 President Sheikh 

“ nn Iahopt mctc Kill it ownc r irrMt^r infArwct to Inral mmruntifle 1 v_-_ . • vr_t 

ffftm tVa lama J 1 ■U""U UJ UWi MIUUUAUUIL Ul KvllU 1 * UiUiiTn Oik DSbC- IDS iUW UlUUdV XvL 

toum Exporting Countries at Gene- the job is a joint ventnre of Italy* 

In Abu Dhabi, the local gpvem- 

no longer exists, but it seems dear greater interest to local companies Zayed bin Saltan al-Nahayan set 

persuasion or foe realities of a re- ment is expected 10 inject around 
cession-hit economy, the merger 5327 milli on of new funds into the 

that the authorities are anxious to 
avoid foe outright collapse of even 
foe smallest institution. 

than to foe international scl up a mmrmn r m 
While Abu Dhabi and Dubai, membera of the Fi 

og senior 

with their long established source Council, the appointed parliament, 
to prepare “a comprehensive eco- 

Payment delays and wrangling over 
emirate contributions continue to plague 
federal funding. 

posed oil pipeline between Ain 
Dhabi and Fujairah is not consul* 
ered a commercial venture bra nay 
emerge os a Gulf Co-operation 

Council prefect, depending 00 bow 
the war between Iran ami Iraq pro- 

Political Consensus Hurt by Lower Oil Revenues 

—rents have fallen by at least 50 num, the dxy dock and the Trade 

; (Continued From Previous Page) get and its contribution to foe fed- constantly rumored, mainly be- 

eral budget, and can also put a tidy cause of the flaring of around 400- 
■suiy,” is in good shape. In Abu sun into reserves. Its major pro- million cubic feet a day of gas, bat 
Dhabi, where banks have been hit jeets — Jebel Ali port (now to have these are so far limited to a lique- 
by foe decline in real estate values a free-trade zone), Dubai Alumi- fled petroleum gas project and pos- 
: — rents have fallen by at least 50 num, the dry dock and the Trade sible sales to Dubai 
percent — three of the local banks Center — are managing to hold The Ras al-Khaimah emirate has 
have announced plans to merge, their own despite recession. Dubai achieved respectable condensate 
Dubai has seen some spectacular in particular, has proved itself a products of around 13,000 barrels a 
tidying np among its banks, and Jow-cost operator, now exporting day. There is a limited building 
most observers believe this is not 40 percent of its prodnet to foe boom of villas and palaces but 
yetover. United States. Trade is well down Crown Prince Sheikh Khalid is a 

The reomt collapse of Dubai on figures before the Ir anian revo- cautious person who does not rush 
Bank anged the fingers of some lotion, but Dubai’s merchants are into risky ventures. He has been 
rqnitable intecnationai banks, m- spreading their wings beyond the outspoken about the lack of Ieader- 
cluding Citibank, Lloyds Intana- region. ship in the federation and would 

ooniic plan” to deal with foe prob- 

n lems caused by falling oil revenues. - 1 1 1 ' ■ 

lljjq The ccmmittee had not published ^ in October 1984. The Emirates Bernini Constructions and West 

1 t/f/COO ils report by the end of April has rarely dropped below produc- Germany’s Coutinho, Caro St Co. 

Payment delays hare become so ing l.I million barrels a day of oil The concrete shelters will provide 
Other emirates, without ofl, pine pressing that in the first six months despite a new quota of 950 million protection for the 18 Mirage 2000s 
for foe days of federal and Abu 1984 about $500 million was bands a day. on order from France’s Avioos 

~ ~ J — - - For contractors and consultants Marcel Dassault-Breguet Aviation. 

Dhabi largtfse. Fujairah is trying allocated to paying off contractors 

10 capitalize on its strategic ooa- mainly in the defense sector. A spe- al ^ e it is the individual emirate _ 
tionmiiside foe Gulf, butnotvoy dal committee was set up to over- budgets and plans that provide foe 

successfully; Abu Dhabi NatioS see this but very little of foe money adM - JSdd^^nlM farnroraS 

011 Co. frowns on a projected ofl 1134 actually been di^ersed, con- ty. A bu Dhabi s budget has not mAbu Dhabi and Dubai 

pipeline from Abn DlSbiSfidds tractors say. While some of .foe been published as tbs^report went SSSSL^SffSlSlmiS 

With its cal revenues apparently 
unaffected by OPEC quotas, Dubai 
continues to improve its infrastruc- 
ture. In August 1984^ South Ko- 
rea’s Keang Nam Enterprises was 
awarded a $Z3GmjHion contract 
for a sewerage treatment plant and £ 
pipeline network. 

Oil Co. frowns on a prqjected oD 
pipeline from Abu Dhabi dl fields 
to a Fujairah lenmnaL 

tne emirates tetecommumca- And after three years of nnotia- 
dons Carp. (Etisalmj is expected to non over the price a conmetio 
award deagn^tiacts for wo new draw up a master plan tor foe emu- 

boom of villas and palaces but 
Crown Prince Sheikh Khalid is a 
cautious person who does not rush 

Umm al-Quwain does wdl from 

more pressing problems of the fed- press but all the indicati o ns are 
era! system may be resolved by dial it will be much the same as 
Sheikh Zayed’s committee foe 1984's. 

buildings in Abu Dhabi and Dubai 
during the year. The overall project 
is managed by Bechld Cbrp n of foe 
United States. 

its ruler’s fnendship with Shrikh nicre deep-seated problem of the But in Abu Dhabi foe larger pro- Another U.S. company, De 
Zayed and has a quietly prosperous whole federal structure is likely to jeets tend to make news these days Leuw Cather International, is su- 
air, without a grrat deal of activity, linger. only when they are postponed or pervuing the 8.9-bilIkm-dixharo 

tiooal American Express and Roy- 
al Bank of Canada International 

Shaqah's revenue from its ex- 

confidence in Dxibai has been shak- ports of condensate have enabled it 

ship in the federation and would 
like to see more use being mad" of 
the Supreme CouncC, which is 
made up of foe seven rulers. Offi- 

_... _ . . „ t0 .P a y offold debts and recently daUy, it meets very seldom, al- 

But Dubai has some healthy oil raise a $154-mfllion bank loan, though the rulers often get together 
wenoe to meet its mumapaibud- Downstream developments are socially. 

Ajman has a bad-debt problem, 
caused by projects that railed to 
attract federal funding. It has tried 
and Med to draw investors from 
other parts of foe Gulf, who in a 
number of small ways have con- 

A Political Federation 

(Continued From Previous Page) to find oil. It also has rock, which is 

tributed to the economies of foe w ^ ^ 000^ both used locally and exported to most of the 

other nonoil emirates. , emirates, bringing kmg-awaitedin- other Gulf States. completed bi 

f restructure projects and services 
to foe people. 

Ajman has developed its ship- 
building tradition, and it benefits 

transport and road improvement 
program, which had provided sub- 
stantial work for both local and 
international contractors over foe 
last three or four years. 

Apart from foe three bridge 
most of the lug jobs have been 
completed but there are expected 

ate was awarded to Greece's Dcr- 
iades Associates. France’s Sogreah 
was also asked to do a hydrological 
study for the emirate. Both parts of 
the work ore expected la be com- 
pleted in two years and should pro- 
vide ample opportunities in foe 
coming years. 

. To keep up with the expected 
growth in activity a second termi- 
nal is being built at Dubai airport 
by the local Dutco in joint venture 
with the UX’s Balfour Beatty, The 
S30-milfiaa contract was awarded 
in August 1984,. 

_ . . . . from its geographical proximity to 

In other ways, however, the rnev- shariah and Dubai offering rcla- 

ifnKli* aitimnKminw an it nnhfiraiT .1 ■ ■ . 


- . n. •, i r.» V x'T 

•• . 

domination by — foe capital is ate& 

Stiffs. - u ™ mmdns “ ^ 

himself as the one who has to shape m ^.. COI ?? UIU t y' , „ , .. , 

foe destroy of his stale and of those 

. . , center of the UAJE. always in foe 

Thera ore, competition between forefront with educational projects, 
the seven emirates is vigorous, with exhibitions, book fairs, conference 

local authorities keen to explore a centers, theatrical competitions 
multitude of avenues to enhanc e and a very outspoken press. 

the economic 

spec&ve states. 

in their re- 
there was 

In Dubai trade has been the key 

experimenting with identical the community's stunning eco- 

and sometirc^mKanomical pro- ? 1 T C .f D ^5 W ? 1 ^ f?*®' 
jeets in the 1970s, most local an- fu J,. od export level had been 

thorities now concentrate on seeing acmevea - 

how they can best take advantage Dubai’s singletninded pursuit of 

of their own particular geographi- 
cal conditions and natural re- 

Fujairah has quite naturally de- matin 
vdoped agriculture and fishing of foe 
along Mth some small-scale manu- farlar 
factoring and a good new harbor, ences 
The emirate could become the The 

the goal of prosperity for itself does 
not fit easily into foe overall pat- 
tern of the UAH as a union in the 
making — even (hough the nature 
of the Federation is to provide for a 

factoring and a good new harbor, ences than a centralized stale. 

The emirate could become the There is a widespread desire for 
UA-E-’s sa fe oil-e xport terminal in the old spirit of unity of 1971 to be 
the Indian Ocean. _ rekindled to counter the growing 

Ras al-Khaimah is a major mar- trend of isolate 
ket garden’ of foe Emirates, and from the rest. It is 
strenuous efforts have been made t h« with a new cx 

the old spirit of unity of 1971 to be 
rekindled to counter the growing 
trend of isolating maH emirate 
from foe rest. It is Eoped to achieve 
this with a new constitution. 

H.H Shaikh Sultan Bin Mohameri Al Qassimi 

No. 1 in the Arab World 



Sharjah, United Arab Emirates. 

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Page 9 


Dubai Dry Dock Adds to the Port’s Efficiency 

. . . '■'Mjif... _ .. . ' . 

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By Phillip Hastings 

DUBAI — Despitcnew port do- 
vdopzaest throughout the United 
Arab Emirates over the last decade, 
Dubai is still the major shipping 
center and general entrepflt not 
only for the Emirates but fra- the 
Gulf as awbole. 

Key factots in Dubai’s continu- 
ing success in shipping are the 
emiraie’s two majo r seaports, now 
backed up by the large although 

Altogether, the pan now has 36 
berths, giving a total berth length 
of more than 7 kilometers (4.3 
miles), and a range of covered car- 
go sheds and hard-surfaced yards. 
Equipment indudes five gantry 
erases, straddle carries, roll an- 
/raH off tractors, terminal tractors 
and a large number of forklift 


still undmtsed Dubai Dry Dock 
complex with Us facilities for 

Central to Port Rashid's good 
reputation as a fast and rffiwant 
handler of both the UAE and 

Overall, the Port Rashid Author- 
ity claims to have the sim plest and 
most st reamlined documentation 
system in the world. A printout 
detailing every container loaded 
onto a vessel is available within 24 
hours of sailing and shipping 
agents are supplied with regular 
printouts showing the status of 
their containers in port. 

Port Rashid also uses a prebook- 
ing system for vessels thk is de- 
signed to ensure that sH necessary 

Fast to the Gulf and then air- 
freighted to Europe and other des- 

Sea-air traffic has only really 
started to develop as a significant 
business over toe Iasi couple of 
years as international airlines, in 
particular, have looked for ways to 
counter the prevailing one-way na- 
ture of the Middle East airfreight 
industry. Return traffic out of the 


The better-known of Dubai’s 
two ports is Port Rashid, often am- 
ply referred to as Dubai Port, 
inaliy planned as a four- 
deep- water harbor in the late 
1960s, it was rapidly expanded into 
"a 16-berth port as shipping de- 
mands increased. 

region is even now predominantly 

^ still limited to personal effects and 

Aj p Gulf transhipment cargo traffic is a ground equipment is available pieces of equipment Wig sent for 
F wefl-estahlisJied computer system when each ship arrives. repair. 

covering the container terminal op- ^ „ 

- ' * • Overall, Port Rashid has to date 

stood Dp fairly wdl to the general 
fluctuating fortunes of Gulf econo- 
mies over the last couple of yeas. 

Total cargo throughout readied 5.4 
million tons in 1982 6 million 

tons in 1983, before dropping back 
to about 5 niiTH nn tons last year. 




U* if* 


* fr- 
r Un 
a!* ■> 

€ develop] 
completed in 1979, created a fur- 
ther 20 berths, which included a 
modern five-berth container termi- 
nal, as well as 10 transit -sheds and 
several more open berths. 

Integral Foreign Participation Buoys Oil Output 




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l* 7, b.,.' ' 

s 1 r..-i. nr , , in the United Arab Emirates, is 

i i-ikm*.*.* unique in the Gulf in the integral 
involvement of foreign oil compa- 
nies. They operate under a wide 
range of agreements in which gov- 
ernment participation as wdl as 
foreign shareholding varies. 

When all other OrEC countries 
were moving toward full takeover, 
Sheikh Zayed bin Sultan al-Na- 
hayan of AbirDhahi decided to 
hah Abu DhabTs participation at 
60 percent, a policy that has been 
faDowed in the other emirates. The 
UAE benefits from access to the 
technical expertise and marketing 
experience of the oil em n panies 
'% They, in turn, benefit from access 
to crude, as wdl as downstream 
opportunities. Profit margins for 
ihe companies are often low but in 
the long term, they .say, the invest- 
ment wul be worth it 
Long-standing foreign share- 
holders in Aba DhabTs oil (40 per- 
cent of tiie two main onshore and 
offshore concessions), Shell, Mobil, 
Exxon and Partex (Gulbenkian). 
There are also a number of more 
recent Japanese arrivals involved in 
the development of smaller fields 

erations. Basically, the system re- 
cords all container movements 
from discharge to faariiiig and vice 
versa, as weti as providing statisti- 
cal information and biffing ser- 

Data is entered pup the system 
through *«vwrnai equipment locat- 
ed in the container control office 
and connected directly to the cen- 

. tral wmi|>u]>i‘ Stmflnny , informa- 
tion held in the computer can be 
extracted and displayed on the ter- 
minals at any time. 

Moreover, Dubai's reputation as 
an enirepat has made it an obvious 
choice as the focal point for sea and 
air activities, which generally in- 
volve goods being shipped from the 
Indian subcontinent and the Far 

points to be included in its net 

At the same iim*» the carrier has 
extended its network westward to 
include Sana'a, North Yemen, and 
Khartoum, Sudan, and it j$ looking 
at adding Nairobi and Mogadishu, 
Somalia, so opening up further 
freight transhipment possibilities 
via the Guff, with Dubai and Bah- 
rain the obvious choices for such 

Other airlines, too, are building 
up their Dubai transshipment busi- 
ness as a means of general! 
much-needed freight traffic out of 
the Gulf. British Airways has been 
looking to develop more sea-air 
and all-air transshipment fndi 
business through Dubai and otl 
Gulf centers. 

“For transshipment in the Gulf 
there really is nowhere to compare 
with Dubai; here you have a very 
flexible pint managemen t SO you 
turn to expand its Far East opera- can, for instance. undertake res- 
tions. At the moment the carrier towing operations in the port for 
serves Hong Kong, Manila and traffic going on to Saudi Arabia, 
Bangkok but it already has its eyes Kuwait .ana other Gulf points,' 
on Singapore and Seoul as future one Dubai-bared executive said. 

Guff Air leads in tins 
mani The wilting although 
quartered in ’Ruhram , has concen- 
trated its sea-air operations on 
Dubai. la addition to sea-air busi- 
ness, it is also developing all-air 
traffic in a similar way. 

Further transhipment business 
could result from Gulf Air’s mien- 


■ IV. K 


'■vtM U 
•“ ''a.'.: kf-pj" 


. 1 . 

■’ i%« . i 
■r w", 


'■ ' 2 i-Ct 

- |!. r«jj. 

■ . v^.:r; 

c •Tr-'t.-is- 


k • 

. v. high price of Abu DhabTs 
API) Murban crude led 

year, compand with 205 jOOG bar- 
ids in 1982, and there has been 
some hard bargaining for conces- 
sions bn payment teems. ADNOCs 
officials are holding their own, bnf 
most recently the Japanese suggest- 
ed they should pay in yen rather 
than in dollars. . 

There have been several offshore 
gas finds over the last year and 
development of the Khuu field is 
going ahead to reinject 250 rntDion 
cnWc feet a day into die Uweinat 
formation. Uweinat cap gas is now 
providing at least half the needs of 
the voracious Abu Dhabi Gas Liq- 
uefaction Cou, which was in danger 
of failing its commitments because 
of erode production cuts. 

Aba Dhabi Gas raised produc- 
tion in 1984 over 1 983 (when it was 
affected by technical problems) as 
a result of this additional supply. 
But it, too, has had to bargain with 
Japanese customers (Tokyo Elec- 
tric exclusively for its LNG and 
others, through «pnty holders BP 
and Con mag nie Fatn$aue de Pfc- 
trofe, for ns LPG) because of the 
link bewteen,the price of crude and 
the price of gas. 

The most interesting develop- 
ment in the last few years in the 
Fjrtiratwi tme been the gas conden- 
sate discoveries in other parts of 
the country — a geological break- 
through uang rapidly evolving seis- 
mic techniques mat has attracted a 
host of fonagn oH companies of an 

The discoveries include Dubai’s 
Maigha field, a concession owned 
by Axco mad Bfitoil, which has 
been producing about 25,000 bar- 
rels a day of condensate since early 
last year and reinjecting the gas. 
Sharjah's Sajaa field now produces 
about 60,000 barrels a day of con- 
densate and is Haring 400 mini on 
cubic feet a day of gas, having sold 
only about 100 mfilion cubic feet a 
day fora remarkably high price to 
Emirates General Petroleum Co. 
for power generation in the north- 
ern emirates. 

There is also Ras al-Khaimah’s 
offshore Saleh field, now produc- 
ing about 13,000 barrels a day, flar- 
ing some of the gas and raping 
same onshore for cement kilns. In 
Abu Dhabi, Amoco is exploring a 

continuation of the Margham- Sa- 
jaa structure; its first wdl found 
noncommercial quantities of gas 
condensate and is now drilling a 

There is hide new downstream 
activity in the Emirates despite ru- 
mors. Bhwnah has gone ahead with 
its $300-mflHon LPG plant in part- 
nership with Amoco and the Japa- 
nese but the proposed fertilizer 

minsiter of petroleum, Mr. ai- 
Oteiba, has the unenviable task of 
combining the roles of chairing the 
OPEC production monitoring 
committee, heading the federal 
ministry and also Abu DhabTs De- 
partment of Petroleum. 

Dubai does not fed bound by the 
ministry, and Abu Dhabi 
therefore, had to bear the brunt of 
cuts in OPEC production quotas. 

TA..T -rr-t. /r 

plant has foundered on the price of Dubai’s offshore production (from 

- - ‘ - - - gas, winch fo 

eign investors reckon is too 

the feedstock, Sqaa gas, winch for- rapid^d^ning" reserves) is at 

Oil observers criticize Sharfah’s 
flare but in preseat market condi- 
tions the government’s hesitancy is 
understandable. Agreement is re- 
ported to have been reached with 
Dubai for purchase of Sharjah gas 
for power generation; Dubai needs 
the gas, rod anything would be 

better than Shar jah flaring it But 
relations between Ihe two emirates 
are still clouded by their border 
dispute, which also affects delinea- 
tion of their respective dl fields. 

The uncertainty of federal au- 
thority as a whole is most dearly 
demonstrated in dl matters. Hie 

bands a day and the 
Dubai government refuses to be 
bound by OPEC decisions on the 
grounds that it produces less thro 
Abu Dhabi anyway. Condensate 
production is not included in 
OPEC's quotas. 

There is no sign that Federal 
National Council pressure an the 
authorities to rationalize rod reac- 
tivate the economy an a federal 
basis is likely to make any impres- 
sion on each emirate's determina- 
tion to preserve independent con- 
trol of hydrocarbon resources and 
their devdopmenL 


and also minority partners (12 per- 
cent) with the Abu Dhabi National 
Oil Co. in the giant upper Zaknnr 
offshore project. 

During 1983-84 the 

'Greening of Desert’ May Dry Up Water Reserves 

■ AB.UDHABL— The drive from 
Abu Dhabi to the fast-expanding 

proUema, “““ty ** " oasis of Al-Airris hoi rod exhanst- 

of differentials a wider OPEC ing_ Two-tbirds of the way there is 

i.-d AratoEmwtes 

issue — and that of mamas, die 
barrel allowed to the 
Idas. as a return an their 
investment. Last year Abu Dhabi’s 
erode was consistently overpriced 
relative, to its ^value on the often 
market Disposing of it was in- 
creasingly difficult, and in Novem- 
ber the government temporarily in- 
creased the margins provided the 
shareholders lifted thor full entitle- 
ments. In Janoazy this year OPEC 
eased the differential problem, 

an unexpected oasis, great hushes 
of bougainvillea and hibiscus and 

M de. From there lo Al- Ain, 
sides of the road, is a 
continuous beh of saplings. Al-Ain 
itself, ora* a string of date gardens 
with small patches of cultivation, is 
bow surrounded by an ever-grow- 
ing belt of farmland. 

Gardens, forests and farms arc a 
remarkable achievement here, the 
result of wealth, determination and 

number and size of farms has most- 
ly occurred in ihe Al-Ain area, in- 
spired by Abu Dhabi’s ruler, 
Sheikh Zayed bin Sultan al-Na- 
hayan. New areas are fenced in 
every week. Another weQ-devd- 
oped area is around Dhaid, in Shar- 
jah, and there has been consider- 
able expansion of the traditional 
agricultural base in Ras al-Khai- 
nwh, best watered of the emirates. 

Farms vary from large govern- 
ment projects to private holdings, 
experimental (dots and a few joint 
ventures with foreign co nc e rns . A 
farmer is well subsidized by tjte 

Al-Ain, Dhaid and much of Rasi 
al-Khaimah are on a wide gravel 
plain between the sand of the de- 
sert and the mountains that' run 
parallel to the southern coast of 
Arabia. Beneath this plain is an 
extensive shallow aquifer fed by 
rainwater from the mountains. 
Rainfall in the United Arab Emir- 
ates is erratic, averaging 6 to 10 
centimeters a year (236- to 33 indi- 
es). About 72 percent of this is lost 

and rf«nKnMtir\n plant when the 
installation is complete; at present, 
about 2 million gallons is being 

Dub^i dty is switching to desali- 
nation because of the depleted 
ground Aater resources. 

Local dptics are concerned that 
agriculture is drawing too lavishly 
an finite water resources. At a re- 
cent seminar on sweet-water re- 
sources at Al-Ain Universit; 

esj. adoui u. percent ui a sources at Al-Ain university, 
through evaporation rod about 14 Sheikh Nahayan bin Mubarak, 
percent drams directly into thc sea. president of the university, said 

Ninety percent of' the U.AJ?s 
consumption of water is used for 


than November's. 

Abu Dhabi still has problems 
sefirng its crude; as the minis ter of 
petroleum. Mans al-Otdba, pant- 
ed out recently. Most of it goes to 
Japan, supplies partly from the 
dureholdas but principally from 
ADNOCs 60-peroent share of pro- 
duction. This is stridty tied to the 
officii price, which sometimes 
mnfa* it difficult to move. The re- 
mit has been temporary cuts in 
onshore raoduction even below the. 
OPEC eating. Offshore production 
cannot be cut further bdaw a mim- 
mnmlhmi because associated gas is 
needed fra the LNG plant on Das 

Japanese customers have been 
turning to cheaper sources, notably 
Oman, winch is not a member of 
OPEC. Thear contracted purchases 
of Abu Dhabi crude are now down 
to 90,000 barrels per day fra this 

Ministry of Agriculture, in the case agriculture. In Abu Dhabi city, all 
of Ras al-Khaimah, or the local water is desalinated, with some re- 
Department of Agriculture in Al- cycled water used on municipal 
Ain. gardens. A pipeline bos been laid 

Irrigation roerhpd ! 1 ! v8fy> hut are between Ami Dhabi and Al-Ain 
Most of the new greenery is agri- becoming more economic with the capable of sendmgm to 20 zmllkxi 
ytqfrfcw installation of drip, bubble rod gallons (75.7 million liters) 

ml piraT, farms 

and fodder. 

in the 

sprinkler systems. 

water from the Tawedab power 


of the London-based 

reports editor 
East Economic 

PHEUQP HASTTNGS is a journalist based in 
Britain who specializes in the transportation 

‘ FRAUKE HEARD-BEY, a member of the 
Center for Documentation and Research in Abu 
Dhabi, researches and frequently writes about the 
Gulf and Arabian Peninsula for English, French 

man put 

“From Truaal States to United Arab Emirates” 
(Longman, 1982). 

TOBY ODONEis a staff writer for the Middle 
East Economic Digest 

SARAH SEARIGHT is a London-based 
journalist who writes about Middle-Eastern 

STEPHEN TTMEWELL is a staff financial 
writer fra the Middle East Economic Digest. 

that at present rates of consump- 
tion, ground-water resources in Al- 
Ain would be exhausted in 10 to 11 

The issue is highly political Re- 
ports by roe group of experts on 
routed resources gather dust while 
other experts report unlimited re- 

OQ companies are contributing 
data on deep aquifers but they are 
the first to point out that brackish- 
ness increases with depth (although 
this can be filtered out to seme 
extent) and that there are the same 
limitat ions to deep resources as to 

No one disputes the achievement 
of the United Arab in 

feeding a population that has 
grown so quickly, both in heads! 
and appetites, over the last 10 
years. But further development de- 
mands further imports of qualified 
manpower, which in turns needs to 
be fed. When rainfall is as small as 
the UAE’s, all resources are limit- 


They *0 look. They - * fasten. And 


Pnme business prospects with 
the authonty end the funds to 
conclude worthwhile business with 

So if you've got a product or 
service to soU to the Middle East 
show ri to theml And do it in the best. 


I71h -21s! March 

Arab Cleaning & NWrrtenence 


1st - Sth April 

Interiors *85 

21 st - 24th Aprd 

Arab Padcprint Exhibition 

13th- 17* October 

Middle East Agriculture D5 

27th -31st October 
Hotel *85 

Ttti - toth November 
Motextia A Chlktexpo 

25th -28th November 

5th Gulf Co mp uter exhibition 

most successful way possibto-Hn a 
pro te sstonaMy-run trade exUbttton. 
At the Dubai International Trade 

Taka advantage of two 
aheondttoned exhibition halta that 
combine to offer you over 10,000 
square metres of first dass, 
pupa88-buttexhatition apace that’s 
unrivaBad in the Arabian Gulf. 

And capitaEae on a busy 
p rog r amm e of international trade 
shows, any one ol which, oould work 
wonders for you business. 

Just show it to them and seel 

16th - 20th February 
Arab Air Exhibition 

2nd -6th March 

Gilt? Communications *88 

18th -20th March 

2nd Arab Gas Technology Exb. 

20th -24th April 

Gut! Industrial Plant and 

Factory E q ui pment *86 

28th September - 2nd October 
2nd Mddte East ReMgenrtle* 

VenthwOon & Ahcondttlonlng 


12th -16th October 

4th Arab Water Technology Exb. 

Arab Municipal Sarvtcaa Exb. 

26th - 30th October 

3rd Gutt Safety, Security A 

Fha Equipment Exhibition 

27th- 30th October 

6tti Gulf Computer Exhibition 

8th -99 t November 
Motaxha a ChMaxpo 


9th - 12th January 
3rd GuK Sports A Leisure Exb. 

12th - 16th January 
Middle East Electricity Exb. 

27th January - 7lh February 
Dubai Spring Fair *86 

For more information about exhibitions in Dubai, writs or caH 
Trade Centre Management Company, P.O. Box 9292, Dubai. 
United Arab Emirates. Tel: 472200. Telex: 47474 DtTC EM or 
Seymour House, 17 Waterloo Place, London SW1Y 4AR. 

Tel. 01 -930-3801 . Telex B88193 GENNAV G. 

Jfic. yilgallvyUull wajsja 

MW dubd hterncitjcfd tadecente 


Handling all 

lonnsof cargo ^ the Sharjahpom' 
system is idotVy located 
for transhipment services to the 
Gulf States, Iraq, Iran, Pakistan, India and 
the East Coast of Africa 
With an expanding infrastructure programme 
providing die latest in equipment, extra berthing 
and improved depths, it offers Con t ainer, RO-RO, 
Reefer Project and general cargo facilities; plus 
specialised services including heavy lift 
arrangements and a centre for oilfiel d supply. 


The only natural deep water port in the 
k Middle East, it is situated on the east coasts 
outside the waters of the Gulf and the 
“war risk insurance" zone 

Port Khalid. 

P.O. Box 510, Shariah 
United Arab Emirates 
Tel: (06) 356000 Telex: 68138 SHAGUL EM. 

Port Khor Fakkan 
P.O. Box. 10542 Khor Fakkan. 

United Arab Emirares, 

Tel: (070) 85324. Telex: 89023 SEAGUL EM. 


Banque Lndosuez 

in the United Arab Emirates. 

the Middle East to give you the green light for business. 

Banque lndosuez, present in 65 countries, opens 
up a whole world of opportunities. 

Banque lndosuez is present in the United Arab 
Emirates, in Dubai and Abu Dhabi. 

Banque lndosuez is in all the major countries in 



Head office : 96, boulevard Haussmann, 75008 Paris. 



Page 10 



NYSE index - 


iMms 1371 „io rajs ib&m iaa + W 
Tm mm louS an m + uj 
Util 15M0 15988 157.S8 + g£ 

Comp 53SJD XBJ3 51782 4*184 + 087 

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Tables tadode the nottonwide prices 
as to the dosins an WaU Stmt amt 
an not reflect tote lrodn etsawtmre. 

Via The Associated Press 

Standard & Poor's Index 

pravtsas Today 
Mob Law ansa 3 ml 
industrials 2058J 20U3 28359 2086 

Tramp. MOST 15453 15458 15*^7 

sisiams* S3J3 no mm «» 

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AMEX Sales 

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Trading on NYSE Is Active 

United Press International 

NEW YORK — Places on the New York 
Stock Exchange were slightly lower lace 
Wednesday in active trading. 

The Dow Jones industrial average was off 
0.88 to 1J7241 an hour before the close. Ad- 
vances led riwrirnfts by a 4-3 ratio. Volume was 
about 88.5 million shares, up from 82.6 mfilian 
in the same period Tuesday. 

Analysts said a prime-rale cut to 10 percent 
by Bankets Trust announced shortly after noon 

Akkottgh prices in tables on these paws are 
from the 4 PM date at New York, for time 
reasons this article is based on the market at 3 

had aided the market in gains earlier in the 

"The prime rate cut is good medicine for us 
and the market greeted it with open arms,” said 
Keith Hertefl of Drexd Burnham Lambert- 

Other analysts were more skeptical. 

The prime rate cut stirred a lot of activity 
but we might just be seeing another spurt on the 
upside,’' saidHUdegardZlagorskiof Prudential- 

A slowing economy, interest rates not yet low 
enough to trigger a recovery in mannfactaiing, 
low cash positions in institutional portfolios, 
and expectations for depressed second-quarter 
corporate profits will keep the market from 
breaking through the upper end of its trading 
range. Miss Zagorski said. 

**A discount rate cat might cause a blip in the 
averages but that’s partially in the market as 

wen,” she said. “The market will probably re- 
sume its drifting phase." 

Before the market opened the Federal Re- 
serve Board said that Uj. industrial production 
Tell 0.2 percent in ApriL UJ3. business inven- 
tories fell 0.1 percent in March, the Commerce 
Department said later . 

AT&T was near the top of the active list and 
higher at midday. 

Western Union and Federal National Meat- 
gage Association were also active and higher. ; 
" frank stocks moved higher. Citicorp, Chase 
Manhattan, Manufacturers Hanover, Chemical 
New York, Marine Midland and Bankers Trust 
were all up. 

IBM and Digital Equipment were up. Na- 
tional Semiconductor was unchanged. 

General Motors and Chrysler were higher. 
Ford was off slightly. 

LTV Coro, was off. 

TWA and UAL Inc. were lower. 

Unocal was off slightly. The company said it 
was extending the expiration date of its pending 
exchange offer. 

Seagram was up after withdrawing a plan for 
a new class of shares. 

Crown Zeflerbach Corp. was easier. British 
financier Sir James Goldsmith said he increased 
bis holdings in the corporation to slightly more 
than 20 percent from 19.9 percent. 

Arkla Inc. was off on weakened expectations 
that a takeover for that company is imminent. 

CBS was unchanged at 1 10. The company 
said it had filed suit m New York against Ziff- 
Davis Publishing Co. and Tooche Ross & Co. in 
an action related to the acquisition of 12 Ziff- 
Davis consumer publications. 

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50 20 17 322 IV* If* 19*—* 

50 15 1351 33* 22* 22* 

1 JO 48 3 34* 24* 96* + M 

450 90 202 51* Sm> 51* + * 

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134 2* 3* 2* 

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1 6JM1M 436 56 55* 55* + * 

5002X6 51 53* 52* 92* + * 

1J3 55 13 121 20* 27* 28 + * 

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831 42 ■ 84 IM 7* 7*—* 

581 LD 57 48* 48* 48* + * 
37 12* 11* 12* + * 
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2-20 3L1 16 3H TO* 70 TO*— M 
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54 13 16 1012 19* 11* 18* 

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3.12 6-5 I 24 4706 47* 47* + * 

2.16 145 6 633 IS 14* 15 

475 138 4008 36 36 36 +1 

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754 1U H20z SS* 55* 55* +1 

788 TX5 „ 75t*«* 40 65*+* 

82 38 25 391 21* 28* 21* + K 

M 28 15 517 34* 31* 34* + * 

88 J 13 313 25* 25* TO*— * 

14 29 34 23* 21* 

284 47 710341 49* 47* 48* + * 

9 2081 36* 36* 36* + * 

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287 116 Its 25 25 25 

72 MU 4 71 7 6* 7 

1.10 19 91 247 28* 28 28* 

12 S3 u* li* II* + M 
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2-52 128 6 1069 20* TO* 20* + * 
750 128 5001 58 51 58 + * 

50 45 35 13* 13 13* + * 

223 1X0 10 17* 17* 17* 

184 107 20 17* 17 17*— W 

18 U II W M 38 JS — * 

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180 38 12 476 30* 30 30*— * 

180 58 TO 19 18* 18* 

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286 43 U 3091 68* 67% 68* +1* 

180 16* 13* 14* 

180 41 17 404 29* 29* 2948— * 
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111 108 <36 29* 29* 2fffc— * 

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116 44 9 412 47* 47* 4714— * 

111 U 1 614 XI* TO* XI* + * 

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Statistics Index 

MMEXprfcw P.15 UambmraMrt>l».l2 
amex MkAmP-U FttBBAdt notes PM 
MYSE Ortas P.18 Guta mortals 
NYSE UMartoM P52 Man* ram - ?.11 
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. THURSDAY,. MAY 16, 1985 



VS, Stocks 

Report, Page 10 

Page 11 


^ Men’s Long Skirts in Vogue 
si As Investors Torn Bearish 



International Herald Tribute 

P ARIS — Men's skins are “all the rage in New York,” 
according to a newspaper item cited by Edward S. 
Hyman Jr. o£ Cyrus J. Lawrence Inc, called “Wall 
Street's favorite economist” He comments: “That has to 
be bearish for the stock market,” since a photo accompanying the 
article shows a sheepish, bespectacled man who is wearing a long 
skirt and is. about lo step pot into traffic 
Mr. Hyman’s whimsic al point, of coarse, is that the relation- 
ship between rising hpfnKn^ qn women's skirts pnd rising stock 
. prices has long been recognized — so men wearing long darts has 
r to be too ranch even for Wall ——————— 

punishment on 
Wall Street 

Street to bear. ‘ c . . ' 

while the fashion world ‘ ^woe investors are 

tiring of taking 

ness, Stan Weinstein, editor T nmiahmpjit on 
and publisher of the Profes- JL 
sional Tape Reader, evokes Wall Street, 
the traditional macho imy ■ 
in his latest commentary: 1 

“Like a prizefighter fei g nin g with his right hand and then 
jabbing with his left, this market is bobbing and weaving and 
totally confusing the street. More arid more investors are throw- 
ing in the towel and becoming bearish as the market whipsaws 
back and forth.” .. . 

But that is giving up too early, he believes, because the Dow- 
Jones Industrial Average is “overstating flic market’s weakness” 
and there is “sub-surface strengthening taking place.” * 

Y *ET Mr, Weinstein, who reties solely on technical analysis, 
is more sane of Wall Street’s favorable trend over the 
distance than he is about the next few rounds. For one 
thing, he does not like the way General Motars’s has been 
staggered lately. 

Has top gronps for investment are broadcasting, drugs, hospital 
companies, oil-rdaied concerns and restaurants. Sectors to avoid 
are al uminum stocks, autos, auto parts and semiconductors. 

Tins contention that investors are getting tired of ta kin g 
p unishm ent on Wall Street is reflected m the latest “decision- 
makers” poll conducted by Richard B. Hocy, economist at Drexd 
Bu rnham 

■ Between February of this year and April “optimism about the 
stock market declined abruptly,” he disclosed, according to 
responses bom 106 big institutional investors such as banks and 
pension funds. He calculates Ms Institutional Sentiment Stock 
Index by subtracting from the percentage of investment manag- 
ers expecting to be in a bull market in three months the percent- 
age a bear market • 

In February, the index readied the highest level of the 1984-85 
period at 4S.1 percent, as 5&1 percent of the those surveyed 

hd jgqwl thaf otw stock marfe-if wriuM in a hull marker fn three 
months, with only 1 1 percent expecting to be in a bear market by 
May. Bui two months later, optimism had waned as the index 
dropped 38_5 percentage points to 6.6 percent, the lowest level in 
the 1984-85 period 

Describing the index as a “useful intennediate-tenn contrary 
opinion indicator,” Mr. Hoey added, “Thus, we takethe erosion 
of the extreme optimism of February as an encouraging sign for 
the stock market.” 

The firm’s director of research. Burton M. Siegel, put it this 
way: “Consensus expectations have plummeted in recent weeks 
and. now they incorporate most cif the disappointing news. 
Positive surprises havehecome riiore hkriy . 

Noting that the key assumption behind Drexd Burnham’s 
market optimism is the sustainability of the economic cycle, Mr. 

continued: “The recession and growth recession senarios 
that are attracting great interest axe likely to recede as favorable 
economic data axe reported later tins spring and s ummer . The 
negative company earnings surprises and the adjustments in 
(Confined on Page 13, CoL 3) 

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Asian Dollar Rates 

ISh-lRi Ml -IK 

Source: R*vm . 

Key Money Rates 

United Sfites c 

PtKHMl Rote 
Mm) Fundi 
Prime Role 
Broker Lm Rata 
Comm. Paper. JMB dan 
Jmonrti TraoEiirv BUIS 
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CCS 98-99 days 

May is 

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7 JO 72 1 
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530 155 

5J0 5J0 


Gold Prices 

Calls S&L 
Units Safe 

But Maryland 

Acts on Crisis 

Untied Press hammmti 

WASHINGTON — As steps 
were being taken to resolve the cri- 
sis among Maryland's savings and 
loan associations, Larry Speakes. 
the White House spokesman, said 
Wednesday that the UB. federal 
savings ami loan system “is safe 
and protected” 

Asked if there is any concern in 
the White Haase over the federal 
system in view of the Maryland 
savings and loan situation, Mr. 
Speakes replied: “The federal sys- 
tem is safe and protected. We re 
moni torin g the gjirrarirm at the 
Treasury. It has tv»*n at 

the White House, but these are 
state matters.” 

Both Ohio and Maryland have 
undergooe problems with savings 
and loans associations. The gover- 
nor of Maryland, Harry Hughes, 
took control Tuesday of die state’s 
102 savings and lorn associations 
that do not have federal insurance 
md miio*? fie state legislature into 
emergency session Friday to con- 
sider a new insurance plan u> pro- 
tect investors. 

A run fay nervous depositors on 
• Maryland’s privately insured sav- 
ings and louts eased Wednesday, 
but measures taken to save the 
shaky thrifts disrupted business ac- 
tivity in the stale. 

Mr. Hughes, who dedared a 
state of emergency Tuesday, met 
with F ederal Reserve nffiriak and 
a team of attorneys to search for 
solutions to new problems created 
by his iWkinn an Tuesday to limit 
withdrawals by depositors to 
S1.000 a mooth. 

JEjner Johnson, the governor’s 
chief of staff, said the state would 
set up a hotline to answer questions 
from nervous readmits — some 
trying to dose deals on new houses 
or pay large bills or payrolls. 

But Mr. Johnson said it was un- 
likely Mr. Hughes would make ex- 
ceptions to the withdrawal limit, 
imposed to stop the drain on assets 
at the state-chartered saving; and 

“There are no plans to modify 
that at the moment,” Mr. Johnson 
said. “We have to^ make a determi- 
nation what kind ofhqnklitY is out 
there. We want to staunch the flow 
of withdrawals.” 

Nigeria’s Foray Into QUrBartermg 

Its Swaps Have Depressed 
World Prices, Traders Say 

By Bob Hagenr 

Immotianai Henud Trmune 

LONDON — A spate of oQ-bartering by Nige- 
ria is hetpmg to depress petroleum prices, traders 
say, and more such sales stem the works. 

Barter — or countertrade; as the more complex 
arrangements arc called — in recent years has 
become a major selling method for many members 
of the Organization of Petroleum Exporting Coun- 
tries, notably Iran, Algeria, Libya and Saudi Ara- 
bia. Bat Nigeria, one of OPEC's biggest producers, 
has become a big user of countertrade only in 
recent months. 

Already, it has readied agreements involving SI 
billion worth of spare parts and other goods from 

Dornier Holder 
Ends Resistance 
To Daimler Pact 


France, and S200 miHjon worth of machinery, sled 
and other building materials from Austria’s state- 
owned Voest-AIptne AG. 

Countertrade allows oil producers to give well- 
disguised discounts from oftirawl OPEC prices. 
Though the producers generally deny this motive, 
“You don’t undertake a barter deal if you can sell 
crude at official prices,” said Mehdi Varzi, an oQ 
analyst at the London stockbrofcerage of Grieve- 
son. Grant & Co. 

Tbe ofl market in genoal has been weak recent- 
ly, and it is difficult to isolate one factor from 
another. But traders note that Nigerian crude 
prices have fallen mere steeply than some other 
widely traded crudes. 

Petroleum Argus, a trade newsletter, reports 
that Nigeria's Bonny light crude is quoted on the 
spot, or noncon tract, market at around $26.80 a 
band. That is down about $1 JO from .two months 
ago and compares with the official price of $28.65 
a band. Forcados, a lower-grade Nigerian erode, 
was quoted Wednesday at around $26.70 a barrel, 
down SI .50 from two months ago. Nigeria’s Bonny 
medium has slumped $1.80. 

Britain’s Brent mend and West Texas interme- 
diate, a widely traded UJ3. crude, are down less 
than $1 from their mid-March levds. 

Nigeria's oil minister, Tam David-West, said in 

Tam David-West 

a telephone interview from Lagos that his country 
was trying to structure its countertrade in a way 
that would avoid undermining the market The 
minister added that he was analyzing bow the new 
practice was affecting spot prices. 

“I owe nobody any apologies for doing counter- 
trade — provided we do not rock the boat,” Mr. 
David-West said. 

In theory, countertrade need not rock the boat 
any more ih«n rach sales do. In practice, however, 
it often does. 

For one thmg , countertrade allows producers to 
pump more crude than they would if they retied 
solely cm cash sales. Oil executives estimate that 
Nigeria in recent months has been producing 
about 1.7 milli on bands a day, well over of its 
OPEC quota, which the Nigerians define as 1.45 


Mr. David-West declined to comment on such 
estimates, but be said Nigeria next week would be 
hosting KMG Kfynveld Kraaymboff & Co., a 
Dutch accounting firm recently hired by OPEC to 
monitor members’ production. “Our doors are 

(Confened on Page 13, CoL 4) 

BigU.S. Bank Lowers Prime to 10% 

Compiled br Our Staff from Dispatcher 

NEW YORK — Bankers -Dust, 
the eighth largest U.S. bank, cut its 
prime lending rate Wednesday by a 
half percentage paint, to 10 per- 
cent, the lowest level for the bench- 
mark rate in more than 6% years. 

Although a few small banks low- 
ered thar prime rate last month, to 
1054 percent, the major ILSL banks 
have posted a 103^>ercent prime 
since mid-January. No other major 
bank followed Bankers Trust's lead 
an Wednesday. 

The reduction follows a sharp 
decline in money-market rates in 
tire past week, partly as a result of 
speculation that the Federal Re- 
serve will farther relax its grip on 

credit to stimulate the stuttering 
U.S. economy, analysts smd. 

The deposit rate for 90-day cer- 
tificates of deposit, adjusted for de- 
posit mgiranrfi and reserve re- 
quirements. was around 8.40 
percent Wednesday, or more than 
200 baas points below the 103- 
percent p ri me rate; A basis point is 
one hundredth of a percentage 

Some analysts said tow financing 
costs would have justified a cut in 
the prime rale much earlier. 

“On balance this comes as no big 
surprise," said William Sullivan erf 
Dean Witter Reynolds Inc. “Banks 
have dragged their heels, and a re- 

duction in the rate was long over- 
due,” he said. 

The prime rate is the benchmark 
against which banks measure rates 
on other short-term loans to small- 
and medium-size businesses. Large 
businesses are often able to borrow 
at rates below the prime rate, while 
many smaller box t owers frequently 
must pay more. 

The prime has been falling since 
Sept. 27, when it was cut to 12.75 
percent from the 13-pocent level 
that had prevailed for three 
months. The last time the prime 
was cut was Jan. 15, when it was 
reduced by a quarter percentage 
point, to the anient 103 percent 
(Reuters, UPI). 

By Watreo Oder 

International Herald TrSaaie 

FRANKFURT — A battle for 
control erf Dornier GmbH ended 
Tuesday when Claudius Dormer, 
the senior shareholder of the fam- 
ily-owned concern, agreed to a plan 
to sell a 68-percent stake in the 
oonmany to Daimler-Benz AG. 

Under the plan, Mr. Dormer 
wonkl retain a 20-percem stake in 
Dornier, West Germany’s second- 
largest aerospace group with 1984 
sales of about 1.6 billion Deutsche 
marks (about $520 million). The 

era! Cartel OfljctTwfaerc no major 
objections are foreseen. 

Tbe takeover, if approved, would 
make Daimler one at West Germa- 
ny’s leading military contractors. 
The automaker earlier this year ac- 
quired full control of MTU GmbH, 
a major Uialrw of engines for nrfli- 
taiy aircraft with 1984 sales of 22 
billion DM. Abont half of Dor- 
mer’s sales are imlitary-rdated, a 
Dornier spokesman said. 

Mr. Dornier, the only one of six 

objected to the Daimler Utleover 
plan announced April 23, said 
Wednesday in a telephone inter- 
view that he frit he could not go 
against the^ wishes of the company s 
work force and the government in 
his effort to Node Daimler's bid. 

Under tana of the company 
founder’s will, Mr. Dormer holds 
de facto veto power over the sale of 
stock to outsiders. 

Mr. Dornier, whose stake would 
rise from a current 12J5 percent 
under terms of the agreement with 
Daimler, had the legal option of 
baying shares of the other family 
monbers before those shares could 
be offered to outriders. He had 
hdd. out for a 25-percent stake, 
which under German law would 
have granted him veto power over 
manag ement decisions. 

On the eve of Daiml er’s April 
announcement, a large majority of 
Dormer’s 9,000 employees had vot- 
ed in favor of Daiml er’s acquisition 
proposal, which also was strongly 
endorsed by- the regional govern- 
ment of Baden- Wuerttemberg 
where the two companies are locat- 
ed. Under the agreement, the state 
government would become a mi- 
nority shareholder, taking a 4-per- 
cent stake, while the remaining 8 
percent would be hdd by Claudius’ 
brother. Savins. 

Union members at Dornier had 
become increasingly agitated over 
Mr. Dormer’s resistance to the* 
Daimler {dan and were understood 
to be set oo calling a strike if the 
future ownership a the company 
were not settled prooptiy. 

Justus Dormer, Gandhis’ step- 
brother and a rival for conuoHhog 
influence within the comp an y, said 
in an interview that other family 
shareholders had repeatedly 
warned the elder Dornier in recent 
weeks that they “did sot want to 
see the dock turned back” on 
Daimler’s plan. He said his step- 
brother’s opposition to the Daimler 
agreement broke depn. because 
“Claudins could not come up with 
a viable alternative." 

“With Daimler's acqnaing ma- 
jority control, we re-establish credi- 
bility at Dormer,” Justus said. 
“Dormer has never been a compa- 
ny with financial uoubks: the 
shareholders have created prob- 
lems, not the company itself. 

Claudius Dormer had said re- 
peatedly that his objection to any 
outside group acquiring majority 
control of the company doived 
from a desire lo observe the testa- 
ment of his father, the company 
founder. He declined to elaborate 

(Continued on Page 13, CoL 4} 

Dollar Is Mixed 

The Associated Prat 

LONDON —Tbe dollar was 
mixed Wednesday as markets 
responded unevenly to a drop 
in U-S- industrial production.. 
The U.S. Federal Reserve 
Board announced Wednesday 
that industrial production fell 
0 l 2 percent in April the first 
decline since last October. 

Currency dealers said trading 
was quiet ahead of Thursday’s 
Ascension Day holiday in many 
European countries. 

In London, the British pound 
closed at $1.2628, down from 
SI .2748 on Tuesday. The dollar 
ended in Frankfurt at 3.0835' 
Dentsche marks, up from 
3.0613 DM; in Zurich, at 23775 
Swiss Francs, up from 23725 
Swiss francs; and in Tokyo, at 
250.175 Japanese yen, down 
from 250175 jm 

U<a i n ter benk rates on May 15 , acdudmg fees. 

Official fixings far Amsterdam, Brussels, Frankfurt, Mkm, Puri*. New York rates at 
2PAA. . • r nu r B Ul SMp - ILF. IF. Vn 

China Imposes New Tax 
On Foreign Businesses 

;. oK UU 2 tagtaafiOLtatc < 1 JS wo m a w or uw umnmHiu 

0733 Catalan i UB MN MWar.rtaaaS MB taw i * T7W# 

OHO Daabfcknwa UJ7JS fl.mitaw.knw UtS MIX SM.MH UK 

X ■ 0.15M naUintU uw OflMJ MlM*> J14SB5 BOS1 TUmS »S\ 

n potti Bute Hmrtaa US50 flJOOSt Rat. Maria 17X00 flJOMTMMri 2748S 

1 .- C oral Haaa KoagS 77*5 UWMiM ZAm Utm UJULfirtaa U73 

, i staita.U3K?rW«s 

- * . ' (alCo mm we M lnoKtb) AnMMrtsPteitalaMiriwPBunrilOAHtari M MriMtefcuyBaadotatl 

UnttaoCHO lx) Unttio) UD0 (V) Units of HUM 
7 . • V NjQ^iwJ quoted; naj notowflaM*. 

1 ' i-' some: Bonqua Ou Bonetu* (BmaetetJ Banco Coamerdolo ttaUano IMBaaJ: Qiemtcot 

• Vi Bm* (Nm* Yoridi Ban** mttonaie t* Parts (Parts); tMF (3D8); Boaoue Arab* ot 
: >- f ntef nat ion a ls dW wH— ainfl Mw, rtyoL outturn}. Other data from Ream andAP. 

j J» - . ‘ 

.7; s'; 

1 7 -’^Enrocnrrency Deposits May 15 

■"%* Do nor D tutor* RrS* Stertta ss? ECU SDR 

■ ’ ‘ 1M. ■ - M Stt-SMi «% - 5* 720k - 12* 10*.- »«• 9 V. - 9 V. 7*0 

* 2M. IH.-IK I ■ it* OK- t2H MB. Rt 7% 

*. , UL Bte -au 5Ml-Ste 5te-5te lSte - t» Wte- Itte *«■-*«. B 

’ • ,.'■** ml m -aw SW.-50W ste -5te i2*b- tth na,- tote f% -m ate 

: ; > 5' TV. 9 - Vte Ste - 6 Ste -5te Hte-ITte TOte-WW - «t 8ft 

!• *; ■ Raima oppOeotle lo k O m bovA dwifti of St mBIM mtntmnn (or mo atu at uO ). 

’ * ’ .i,’ Sources: Maroon Guaranty (dotfar, CMC SF, Pound, FFJi Unde Bar* (ECU)i Rmrtwn 

■ . * ■_ • ISORA ’ 

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Emantli Interbank STS SSS Hang Kong - ' JBX m/a — US 

fam; UwmbowsV' . . mss - — oo 

Pork (125 Wo) 32X38 - Cttd — O® 

imorvonno n Roto rate rate, lurw* - - an» 322*5 — uo 

Cat! Menoy . Wte Ute Lmdoa mM 33275 — ATS 

Ona-monHi interbank 10 l/W 10 1 /W Nnr York .- ■ — fiDO — UO 

S^nontti Interbank Hte Wte andol flxtaoo lor 'tmat- Parts and Lww»- 

craeMh interbank M 10 boura. ocanUiaanl rtailnaDrtcoc lor Hons Koas 

and Zarleii Hem York Canon nonnt controd 

Sources: Rmutn QmumstxmtuCriOtLr- M prleo* lo ujss pie am. 
annals, Unydt Boole. Bank of Totem. Smarm: Rmuiers. 

Markets Closed 

Finanrial narkets will be closed Hnirsday m.Frahce, Bdgjum, West 
Germany, Spaim Laittinbourg,, flw Netireriarids, Sooth Africa, Sweden 
and Switzfiland. - , l 

By Rick Gladstone 

The Associated Press 

BEIJ ING — r^rina anztonneed 
Wednesday an unexpected tax an 
farriga conmanies retroactive to 
Jan. 1, in wnal some Westerners 
saw as evidence that the country’s 
hard-currency reserves are down 
and the government needs 
The 15-percent “enterprise in- 
come tax” will be levied on foreign 
offices that earn money from ser- 
vices and consultation, reports in 
the stale-run press said. 

They also said a 5-percent “in- 
dustrial and commercial tax” 
would be levied on all foreign, 
Hong Kong and Macao enterprises 
starting June 1. 

Overseas business representa- 
tives and Western diplomats, who 
spoke on tbe understanding that 
they not be identified, linked the 
tax to a recent tightening on Chi- 
nese spending, delays on loan re- 

Nissan Agrees 
To Purchase US. 

Washington Post Service 

Motor Co. has agreed to buy a 

nnihmriHion-dollar U-S.-made 
supercomputer for its Japanese 
design facilities after negotia- 
tions that were seen as a test of 

Japan’s willingness to purchase 
UJL high- technology products. 

The contract, which Nissan 
announced Tuesday in Tokyo, 
was awarded to Ckay Research 
Inc, a Minneapolis company 
considered the world l ea der in 

Hitachnaoncbed a late, high- 
level attempt to win the con- 
tract. . 

The U.S. commerce secre- 
tary, Malcolm Baldiige, wrote 
to Kajiro Murata, Japan’s min- 
ister erf international trad e and 
industry, in February to suggest 
that Nissan's decision should be 
made cn “tbe technical merits 
of the equipment and soft- 

Nissan said it selected Cray 
after “an exhaustive evalua- 
tion” of Japanese mid U.S. 

Cray has persisted in its ef- 
forts to sell s uper c omputers to' 
lappraw. commercial compa- 
nies despite what appeared to 
be a ban on the pnrdiase of the 
American product by Japanese 
government concerns. . 

payments and sudden cancellations 
of foretgQ business agreements. 

“This appears to be part of a 
pattern to stretch out Diet; pay- 
ments.” a diplomat said. “It’s just 
another form of gpoeration of reve- 

US. business sources said at 
least five U.S. companies had com- 
pkuned in tbe last two months 
about Chinese delays in repaying 
debts, and said this indicated that 
Beylng had a cash-flow problem. 

After a spate of bonus-giving, 
leading and spending, China’s 
hanking system has tightened np 
significantly on the spending of 
foreign currency. 

The newly appointed director of 
the People’s Bank of China, Stale 
CoundUor Chen Mnbua, is known 
as a conservative spender. 

Enterprises liable for the new tax 
appear to indude the China-based 
offices of more than 60 foreign 
banks, which offer consulting «nrt 
liaison services to foreign clients 
but are restricted firom conducting 
ordinary banking activities. 

Several foreign law and account- 
ing firms have also set up represen- 
tative offices in China to provide 
consultancy sendees for economic 
contracts between CHinrse and 
overseas partners. 

The reports said the enterprise 
income tax would apply to afi of- 
fices receiving commissions, re- 
bates, fees arm other income for 
provixfii^c on sultat k a , market sur- 
veys, Haisou and other services to 
riienfac in fhnra 

They quoted Jin Xin, director of 
the finance Ministry’s . general tax- 
. ation bureau, as saying that such 
offices would be taxed “so matter 
where the payments are 
whether in Hm-m qj- elsewhere.” 

Asked whether this mi ght dis- 
courage foreign businesses from 
coming to China, the Foreign 
.Trade Ministry spokesman, Huang 
•Wenjun, said if they “come to Chi- 
na just to have general contacts, 
then there will be no taxation.” 

The announcement ■ coincided 
with the end of a visa by the U.S. 
commerce secretary, Malcolm Bal- 
drige, who said he had complained 
to the Chinese about the high cost 
of doing business m China. 

Foreign businesses have long 
protested what they call “bidden 
taxation” by the nibieac govern- 
ment, indudiTTg high prices for la- 
bor and sup^ms and 100-percenl 
ditty on imported equipment. 

Foreigners mast mre all Chinese 

fcdp through a government-run 

agency, which in some cases 
charges 10 times the amount the 
Chinese employees receive in 

All of these securities having been sold, this announcement appears as a matter of record only. 

U.S. $75,000,000 

Drexel Burnham Lambert Capital Corporation 

11%% Guaranteed Notes due May 15, 1990 

Unconditionally Guaranteed by 

The Drexel Burnham Lambert Croup Inc. 

and under a Surety Bond Issued by 

The /Etna Casualty and Surety Company 

Drexel Burnham Lambert 


Bankers Trust International limited Banque Paribas Capital Markets 

First Chicago Limited Samuel Montagu & Co. Limited 

Union Bank of Switzerland (Securities) Limited Algemene Bank Nederland N.V. 
Banque Bruxelles Lambert S.A. Banque Internationale a Luxembourg S.A. 

Kuwait International Investment Co. s-aic. Nomura International Limited 

Svenska Handelsbanken Group Swiss Bank Corporation International Limited 

Mav. 1985 

We are pleased to announce that 
our current capital* exceeds 


The Drexel Burnham Lambert Group Inc. 

May. 1985 




TbMm lndiidA ttM noNoiiwiM prices 
hp to the dosing on Vlftill Street 
and do not reflect late trades etowtwra. 

I«»- * 

30 + * 


51 W— W 
144b + Ob 
8* + * 
*5 -ft 

mo + * 
aavb + u 

S -* 

sm + * 


15* + Vb 
13* + V. 
321b + lb 
16* + * 
44te- * 
41* — Vk 

sm + * 

15U + M 


4*14 — Vb 
33 + Ml 

62 + tt 

36 * + * 
416— «■ 
49* + * 

54 * — n 

23 + * 

10 — lb 
39* + lb 
23 * + 44 
20 +116 
3 5 *— Vi 

B4M + * 


Mto + ft 
34 + 16 

anb + n 

31 + * 


126b + 16 
3916 + 4b 

77*- * 
in + Vb 

33 +14 

416— Vb 
3Mb + lb 
3314 — VS 
1866 + 4b 

38* + lb 
34*— 16 

S85 + * 

23 + * 


1166 + 6b 
06 + W 

336b + Vb 


on +i 

JSS + * 

24* + 16 
25* + 14 
3116 + * 


19 13* 

17* 11* 
7316 54 
286b 2166 
3366 27* 
43* 25 
34* 25* 
39 2 7 
2816 2M6 
6 4 

Mb 16b 
31 13* 

416b 31 
US 3 
196b 12* 
18* KJV6 
21* 12* 









164 1U 








ZOO 106 







467 12/ 

















U.S. Futures May 


Pnv. Dor amnM. 3/43 aM7 
SJJOO war es^aatsiMrtrov at 
15116 35X0 May 4516 

14416 5C6 Jol 4196 

1U36 5H6 Sap 4306 

1TO6 «76 Mar 400 7 

DH86 5316 May 7116 7 

*456 4186 Jut 7306 7 

*«6 4416 lap 7325 7 

2«{ EJ-8 ‘if ' ms 7 

7896 3250 Jan 

M16 7416 Nter 7786 7 

BtSob» 25600 Pm.SdiM 386* 
Prav. Day Opantaf. 74641 up 500 

4516 4546 —45 

4546 4416 —36 

4440 KM -41 
4806 4843 —36 

PM —36 
5976 09.1 -44 

7106 7096 —45 
TIM 7386 — 36 

nzs 732J —47 

7526 7306 —4b 

7S5J9 -19 

7780 706 —46 

zns 30* 

70 57* 

38* 23V* 
24* 20 

a so* 

27* 22* 
30* 25* 
MIS 55* 
70 58* 

40* 31* 
25* 20 
54* ms 
17* 9* 

44 23V* 

55* 39* 
30* 17* 
M* 7* 
22* 12* 

3 3 
-61 6 
171 13 
66 23 
38 16 14 
160 36 15 

zor 1/8 







UTS 64 




IE pt UO 13/ 


IE pf 871 Kl 


IE Pf 1/1 


IE pf 163 136 


IE pf 765 146 


lEpf 168 136 


1 0 17.12 146 


IE 0 960 146 


IE pf 760 14.1 


IE pf 7/5 14.1 


BSuto 162 




Mr 460 




Upln At 




■Paf 360 




ItVH A0 





HQ 231 




r 1 



MH-V 164 




OMf 164 




nrEl .177 1.1 



nvB 160 






nRs 60 




tarn .KSb 16 








200 126 
397 MB 
230 140 
400 147 
U0 143 
64 26 I 143 
32 6 33 10 

164 11 9 50 

I 40 

6 8 1143 


36 8 932 
26 14 3183 
36 30 3343 
116 547 

96 134 




50600 Bn.- cants oar 0 

S3 £5 & as & ss a- 35 

23 £5 S£ S3 55 S3 =3 

7060 4695 MOV 4X65 4565 «56S 4568 -68 

TUBS 4*77 Ju» 4460 4460 4560 *471 — . A 

4560 4560 Oct 4168 +.W 

Bat.SotaS 3600 rvw*-SoUm 3615 
Prw. Day Opm lot. M643 up 318 

ssra tom *m 

4435 Jut 060 079 0.15 063 ~M 
4835 AM 7030 70£ 0* 7MB -69 
Tktfl 71 JS 7&JA * NoM 


40* 40*— 2* 
329b 32*— lb 
H» 11 

17* 17* + * 
2Hb 21*— lb 
0* 0* + lb 
3 3*— * 

72 72* + * 

1Kb 1Mb— * 
21 21 — IS 

74* 75 + * 

2914 29* + lb 
13* 13*— lb 
55* 57 — 1 Vb 
3* 3* 
340*— 1 
21 VS + * 
4Mb + * 
SMS + * 
42* + Vb 
81 1ft— * 
23* + * 
TO* + VS 
23*— H 
38* + » 
341S— * 
331b + * 

34 + * 

54* + VS 
»* + * 
90*— 11b 


17*— H 
33* + * 
27*— * 
4* + * 
50 + * 

55 + * 

45 + * 

MS + IS 


35 + * 


13*— * 
If*— * 



15* Mb 
48 30 

20 5* 

32* 19* 

41 31* 

34 25 

44* 34* 

51* 43* 

29* «b 
41 14* 

98 10* _ 

49* 34* WM 
32* 34* 

29* 17* 

25* 14* 

121S Mb 



37.500 On.- cants par Ox 
15200 12201 May 14370 14460 

I496D 12160 Jot 14250 14465 

. 147-50 12760 3ap 14460 14565 

14&40 mas doc 14350 msoo 

M1S0 12860 Mar 14400 14460 

14500 13168 May 14365 14365 

14230 13550 Jul 14300 14360 

14200 13279 Sap 

Ext. Sal as Prev. Solos 1655 

Prey. DoyOpan lot. 12887 off 21 

T12O00 Iter cants par Us 

995 292 Jol 369 110 

975 3ttS Sap 361 363 

965 217 Oct 334 037 

775 ZAO Jon 370 370 

923 39B Mar 4.15 4.1 f 

7.15 4JD May 434 460 

469 465 Jill 464 460 

46D 474 Sap 

494 470 Oct 405 490 

Ext. Sofas 4650 Praw. Salas 1*94 
Pray. Day Open lot 85683 up 700 

10 manic tons- Saar ton 

2620 1998 May 2191 2400 

2-*} Juf 2155 2158 

2415 1987 Sap 3118 2119 

2337 1945 Dae 2080 20U 

3190 1955 MOT 2073 3004 

14300 14X37 
14365 14X42 
143J0 14464 
14X35 14177 
14X50 14X50 
14365 14X25 
14X00 14X00 

365 365 

320 361 

131 361 

365 365 

414 4J5 

*34 425 

454 CM 
464 490 

222 2273 
2107 2111 
2005 2087 
2050 2053 
3058 3050 


5KXUNQ prta-pts HMa mo net 


708 Jun 8KB 






7541 SOP 83-24 






75-13 DK 11-24 






75-14 Mar 




74-30 Jun 




Prav.Sotaa 18651 

Prow. DoyOpan tat 44614 off 20 


(8 PCf-nOBDXMi+JMl Of U0 sctl 


57-24 Jun 73-27 






57-10 SaP 72-27 








57-2 Mar 7M 









589 Sep 49-29 






54-25 Dac 48-27 






5827 Mar 




43-12 Jun 40-4 






43-1 Sap 47-23 






43-24 Dac 





Ptbv. Day Opm UR629629 up 1/44 


SKKUM0prtn-pts832ndiof IOOpci 



57-17 Jun 71-15 





59-13 Sap 70-23 






59-4 Dec TWO 






5820 Mar 


— i 


5825 Jun 




45 SOP 6823 




EsL 5a las 



Prav. Dav Opan lot. 4/05 up 37 


Si million- pfs of no per 


8560 Jun 9164 






060 Sap 91/3 






8564 Dac 9088 






8664 Mar 




B4/3 Jan 




8704 SOP 9068 






8864 Dac - 



Ext. Sates 

494 Prav. Safas 


Prav. Day Opan inL 5/17 off44 

tlndaxts canadad abortty baba 

sp comp, ttmax (omr) 

points oxl cants 

10.10 158.10 Jim HUB 18860 

19270 MOW Sac HUS 7*030 

-19160 USX Dac 1*168 19968 

19*00 IKLW MOT .188J8 MOJO 

(sL Salas Praa. I ni at 87601 

prav.ooy Oran tat sumo upm 
potato and cant* 

21960 17361- Jon 19760 .19960 

21X30 18575 SOP 20175 30X15 

EsL Solas Prav. Solas 4973 

Pray. DoyOpan mt «JT3 0030 . 
points and cant* 

11860 9BM - JlM W768 10865 

11160 9X33 San 186 11868 

11X75 - KUO Dac 11165 U290 

11460 NOW Mar 1M60 11460 

Est Sedas Prw. Solas MJ8B 

Prav. DoyOpan tat M601 ap0l 

18478 US6S +61' 


HUB 19860 +iS 

HUI 19768 —Of 
30160 30160 -60 

WHS 10760 +60 

TOMB UK60 +35 
11165 11W - +.15 
rtX6B HMD +165 

Commodity Indexes 

Cl tmi 

Moody's 92560 f 

Reuters 1044/0 

DJ. Futures NA. 

Com. Research Bureau. NA 

Moody'S : bene TOO : Dec. 31, 1931. 
p - preliminary; f - Rnal 
Reuters : base 100 : Sep. 18. 1931. 
Dow Janes : base TOO : Dec 31. 1974. 

921.90 f 

London Metals 

Hay IS 

■M Ask Bid AW 

Sterling per metric too 
SPOt 88960 89160 87460 87760 

forward *1360 91360 89960 89960 


Stortlag oar metric too 
■pat 163000 163260 162060 162260 

fo rw ar d 161760 161760 T6B760 140860 


Stcrllna ner matrle tan 
soot X210IS 161560 160260 160760 

forward 160560 160960 160060 160X00 


SferBaa per matrf c ton 
spot 30060 30160 29760 29860 

forward 30260 30250 30060 30050 


Starting par metric tun 
spot 447060 4/8000 461560 442560 

forward 443060 443560 438560 439060 


Ponca par tray oa aca 

spot 51460 57760 57160 32360 

forward 53260 53660 53760 53968 

TIN (StBPdann 

Starting per metric ton 

spat *60060 961060 9.41060 7/2060 

forward 9/7560 9/8060 9/0860 9/0560 


Sterflaa pot oKhic fM 

soot 66060 64260 66460 66460 

forward 64460 4*560 44460 44560 

source: ap. 

Paris Commodities 

May 15 

London Commodities 

May 15 

Asian Commodities 

May 15 

Cash Prices May 15 

9460 9760 
10060 10040 
10660 104/0 
11670 118/0 
12270 12X40 
13X80 134/0 

Starting par matrtc ton 
Am 9560 *5/0 95/0 KM 

Oct 100X0 *8/0 9860 9960 

Dec 10660 TMM 10460 10560 

Mar 11R30 11760 11760 117 JO 

MOV 12260 12160 13160 121/0 

Aon 12760 12760 126/0 127/0 

Oct 13160 131/0 13040 13200 

Volume: 2684 lots of 50 tans. 


Starttog par matric Mo 

May 1610 1J9S TJ96 X798 613 1615 

Jis 1640 1624 162S 1627 642 1643 

Sep 1624 1612 1614 1615 625 1624 

Dac 1JB3 1/76 1/74 1/77 /HI 1/82 

Mar 1ZH 1/79 1,781 1/82 /82 1/83 

May 1/95 H/ffiB 1/93 1/94 J90 1605 

Jhr 1600 1/98 1/99 1600 1/90 1620 

VWume: 3620 lafi of 10 tons. 



» Lew Sett* some 

32450 32450 32530 

Aua ILT. N.T. 32860 32930 

S4P N.T. N.T. 330-50 331-30 

Volume: 104 Mart 100 ez. 

Makryston cants par Ufa 

Oosa Pr a rta o s 

Bid ASlt BM Ask 

JlM 1*0-25 1*073 19075 19260 

JIV 19250 192/S 192/5 1932B 

AUB 19550 19660 19460 19760 

Sen 19760 19860 19750 19850 

Valuma; 27 lots. 

Singapore cents per kBo 

CanndSdRy end Unit 
Coffee 4 Sontw. 

Prlntdoiti 44/00 30 *. vd __ 

Steel billets fPitt), ton 

Iran a Fdry. PMa. ton i 

Steel strap No 1 kw PItl. - 

Lead Spat,* 

Copper elect, 8 _J 
Tin (Straits), lb I 
2Jnc E. St. U Basts. * __ - -- 

Silver N.Y- ai 

Sauna: AR. 

161 1^ 

Bj83 068 
47360 45360 g 

21360 21360 P 

79-80 100-181 i • 
3«1 25-28 

49-72 69*72 
.5/547 46234 

044-/7 052-53 

sra 152* 

45X5 LN 

Dividends May 15 

RS5 1 Jun_ 14860 14850 

RSS1 Jhr — 149/5 17025 

RS5 2 Jun 14750 16150 

HSS3 Jun__ 14550 164J0 

RSS4 Jun— 16150 16350 

R5S5 Jun— 15450 15850 
Motovsloa rtooairs per 25 Ions 

Bid Ask 
M85D 1060 
17060 17050 
147/5 148/5 

145/3 144/5 

161/5 163/5 

154/3 158/3 

Company Earnings 

Rrvenun and profits, In millions, are In local 
currencies unless otherwise Indicated 




0* 831A Xerox 360 4 l2 3D 3145 48* 48* 48*— * 

SMS 45* Xerox pt 10 HU .. 3 53V. 53 52V. + 34 

29 19 XTRA 64 25 18 408 24 29* 24 + * 

30 2A ZaiaCp 16 47 I » 2* 27* 27* + * 

Vtb 12* Zapata 64 45 25 347 13* 13 13 — Vb 

a 32 Zavre /Ob 6 17 492 44* 44VS 44* -Kl 

49* 34 Zomwt 4 38 0* 30 +* 

30 18* ZenltflE ..S*™ 2 20* 2S* + * 

21* W* awa» 62 16 13 2 17* 17* 17*- * 

AIM 1648 

Od 1/M 

Dec 1-290 

Mar 1645 

M"V »LT 

Aua 1/40 

Est. uol.: 1/50 
salts: 1/87 fiS. 

Low Bid Aik ddaa 

or metric tan 

UBS 1640 16<3 +7 

1/50 1/55 1/M +7 

1690 1681 1694 +3 

1640 WSS 1647 +2 

N.T. 1688 1692 +2 

1/48 1/32 1/47 +2 

lots of 30 fens. Prw. actual 
Opm Interest: 17.134 

UA Tromm) B 31 Rates 

May 14 

Aa bill ASEA 

Yaar »M 1983 litQpor 1981 1984 

Revenue— MJffl. 1140. Revenue 8/40. 7601 

Proftts — — 4864 40/4 Profits 5476 5W6 

Per Share — 0224 fils Par Share L60 uo 

NYSE Highs-Lows 

May IS 


43* 28* OuafcOB 164 26 12 499 45 44 44*- K 

22* 15 Qaak50 603824 90 21* 21 21—* 

11* Mb Quonex 32 35 5 7V.8+U. 

34* » Quastor 1/0 4/ 71 217 34 33*33* + * 

35* 14 QklM 640 16 18 457 23* 22* 23* + * 

14* 3* 
43* 291b 
39* » 
100 71 

12* 24* 
37* 29* 
9* 41b 
444 3 

18 12* 
llUt 7 
43* 2 » 
8VS 5* 
21* 16* 
f 2* 
44 47* 

17* 10* 
48* 34*. 
13* 7* 
22* 14* 
17* 9 

134b 8 

9* 7* 











3/5 W0 















112 11/ 



94 7* 

1441 41* 
30z 34 
2 95 
134 31 
12 35 * 
43 7* 
71 4* 
39 17* 
79 10* 
1911 41* 
SOB 7* 
1 17* 
144 3H 
144 44* 
29 10* 
2154 44* 
383 9* 
4 19* 
194 12 

7* 7* 

41 41* 

34 34 

95 95 +* 

30* 3044— lb 
34* 34* + * 
7* 744 + M 
4 4 — * 

1714 17* + lb 
10* 10VS + * 
41* 41*— * 
7* 7* + * 
17* 17* 

3* 3* 

4344 44* 

10 10 — * 
44 4<* + * 

9* 9* 

19 19 — M 

11* 12 + M 
8* 0* 

8* 8* 

Ford Molar Brita in 

Year 1784 1983 

Revenue 3/501 xssa 

Pretax Net- 486 1716 


lit Half 1985 1984 

Revenu e— 2/50. 2/0. 
Pretax Net__ uu U75 
P*r Share _ 0.126 0.13 


„1MQu ar. 1989 1984 

Revenue ax i4 7846 

Pretax Nat- u>u 59/ 

Par Share — 0.171 fill? 

Dorm PM. Canada 

1st Om. HOI 1984 
Revenue.. . . 512 446 

Profits—. 10/ 80 

Per She re 8.12 869 


WOear. 1W Hf4 

nevww* M.1 46*5 

Prom 93/ 796 

Per Share 265 153 

United Slates 

Andareoii Clayten 

XteOnor. iff* 

Rewoe — » 

Net Inc. 2/2 n.13 

par Share— 828 050 

9 Months i«5 104 

Revenue — 16ML 1614 

Net Inc 13.11 37/2 

Per Shore— 168 361 

Dresser Industries 

2 nd Qaar. 1915 104 

Revenue—. 16U 90*9 

Nat Inc 2X3 226 

Per Shore 061 068 

1st Hc4f 1185 1984 

Rcvetxje 16H. 100. 

Marine 386 32/ 

Per Shore 051 8/0 

West Germany 


frnocs per 1*0 kg 

7S H.T. I4.T- — 2670 —20 

EsL VOL: 270 lots of TO tor&Prav. actual 
gates: 115 tatcOPtn Intoret: 791 

COPI 1166 

Fraach francs par Mi ks 
MOV 2/21 2/25 2680 2/25 UlKh. 

Jfy 2/71 2/71 2/71 2/79 —11 

Son 158 2645 2/45 2650 +20 

N.T. N.T. 2640 +U 

JWI N.T. N.T. 2645 2660 +20 

Ntar ILT. N.T. 2650 2/90 +20 

May N.T. N.T. 2635 — ,+ 5 

Est. voL: 25 lots at 5 tom Prev. actual sales: 
5 tats. Oaen Interest: 247 
Source : Hours* du Commerce. 

DM Futures Options 

May 15 







3 3-manHi 





l 6 month 





j One raw 





J Source: Salomon Brothers 

SAP 100 Index Options 

May 14 

Mn Jta Jtr 





- 1/U 



i nt vm 



l/U A 


1* 2* 



Si 0 7 


ire ms 





To Onr Readers 

Floating Rates Notes were not 
available in tins edition because of 
computer problems. 

Brazil to Discuss 
Its Debt With IMF 

United Press International 

BRASILIA — Brazil will be gin 
talks with the International Mone- 
tary Fund this month to obtain 
financing for its huge foreign debt 
over an 18-month period, accord- 
ing to Francisco DorneDes. the fi- 
nance minister. 

He said Tuesday that the talks 

would be aimed at procuring funds 
to help pay Brazil’s $102.4-billion 
foreign debt, the world’s largest, 
for an 18-month period, Mr. Dor- 
neQes, who began talks with banks 
last week in the United Stales, said 
Brazil would negotiate simulta- 
neously with the IMF and private 

He said talks with the IMF could 

focus on setting targets for Brazil- 
ian economic performance. “We 
are going to mast on realistic tar- 
gets so the country will not go into 

secession,” he said. Mr. Doraeileg 
said Brazil should receive IMF 
credits worth $1_2 billion in 1985 
slightly less than officials anticipat- 
ed at the beginning of the year. ' 

Inflation in Sweden 
Increased During April 

The Associated Press . 

STOCKHOLM — Swedish con 
“nwr pnets rose Q.4 percent L 
JVnI from Math to a level 7 j 
percent above that of a year earliea 
the mvonment’s statistics agenc 
said Wednesday. ■ 

.The agency, Statistics Sweden 

P^aft-" ** 

i » ** 

! sS 5 SS ss 

'•i »,*■ ». ,• 

’*■ *2 
►» "2 *•*■. 
■r •-. Hi. 



i f;** -£* w- c Z+< 

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ti & 


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S ' 5s ^ 

K • **■ T - 

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S-’.Ssiis., " 





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Page K? 


Phillips Plans Asset Sale 
And Work-Force Cuts 

Hyundai Says Allied, Signal Seek Merger Backing 
Car Exports 

By Lee A. Daniels 

New York Times Service . 

NEW YORK — Conuntring its 
attempt lo pare the huge debt acco- 
mplated in two bruising takeover 
battles within the last year, Phillips 
Petroleum Co. says ft will sell sever- 
al of its less valuable assets and 

offer early rednsnent to 10 percent 

of its U.S. writ force. 

The assets include interests in a 
California oil field ami a refinery in 
Britain and an office building in 
Denver. Last month, Phillips, the 

I Ith-largestU-S. ed- 
its coal and ^ 
on the market 

Analysts said the sale of the com- 
bined assets could bfing 
between $800 mtffion and $1 

CBS files Suit 
Against Ziff-Davis 

“These are positive step, but 
only the fast stqx,” said John A 
Martin, a rese arc h analyst with 
Provident National Bank in Phila- 
delphia. “It seems likely that to 
alleviate their debt amafton quick- 
ly, they’re still going to have to look 
to thnr rna^'or pndndog market- 
ing or refining assets.” 

Phillips ended 1984 with $2-8 Wt- 
Hon in ddrt, part o£ which was 
aoenmnlattrt to prevent a takeover 
by T. Boone Kdcens, the Texas 
oilman. It soon took on $4 5 bfflian 
more to SLavc off another takeover 
attempt, this (ne fay Cad C Icahn, 
the New York financier. That 
brought its total debt to.$73 bflhaa 
and prodneed a debt-to-equity xde- 
do of 80 peroenL 
In tbe^fteonath of the Icahn 
battle, the company pledged to 
ly reduce its drat by S2 bit- 

SB n't Up by 140% 

, and that pledge was reiterated 
Tuesday by _CJ. Si 

United Press International 

NEW YORK — CBS Inc. filed 
suit Wednesday against Ziff Carp^ 
dMggjng the publishing company 

the operating earnings of 12 
Davis magazines that it add to the 
broadcaster eariy this year. . 

CBS also sued Touche Ross & 
Ox, the indepradem auditors for 
Ziff in the sale, which hrongbt a 
record $362 millio n for die gr ou p 
of sp ecialt y map/mines that, include 
Modern Bride, Car and Driver, and 

! CBS suit contends that Ziff, 
which is privately held, allocated 
costs that should nave been deduct- 
ed from die magazine groap’s oper- 
ating profits to the corporate side 
of its 

Sih>< [ philips’s 
chairman and chief executive offi- 
cer, arid Glenn A. Cox, its presi- 
dent. and chief operaring officer, in 
meetings with empbyees jt the 

prwnpiny’c hcgdrpw»rfi»t*m Ttartlwu 

viDe. CBdahoma. 

“We’re gong to be a Afferent 
company from now on," Mr. SQas 
told die employees. 

The assets pot up for sale Tues- 
day are a 25 percent interest in the 
Coal Paint on field in California; 
the company’s fertilizer opera- 

ness; natural gas liquids plants in 
Nmth Dakota: an interest in the 
Ptrihnac bitonrin refinery in Brit- 

ties in the Net^S^^^md'otSr 

The Associated Press 

SEOUL — Hyundai Motor Co. 
reported Wednesday that its car 
exports in the first ioar months of 
tbs year rose 140 percent from a 
year earlier to 27,101 units. 

71ie South Korean antomaker 
said Januaiy-April shmrnmis were 
worth S120 mulion. No compara- 
ble figure was given for a year ago. 

Hyundai said Canada was the 
biggest, buyer during the past four 
months, taking 15,985 of two 
Hyundai models — the subcom- 
pact Pony and the compact Stellar. 

Hyundafs headquarters in Seoul 
declined to rive the number of cars 
shipped to Canada a year ago, but 
its sales arm in fVnaHa , ratv»d 
Hyundai Auto Canada, reported 
over the weekend that Hyundafs 
car sales in Canada during the peri- 
od increased 330 percent compared 
with a year earlier. 

One main attraction for Hyun- 
dai cats sold overseas is their 
prices, reportedly lower than for- 
eign counterparts. 

Company nffiwak said the Pony 
model is sold in Canada for be- 
tween $5,000 and $6,000, 

Hyundai is the biggest South 
Korean antnmaVty ana d ominates 

the country’s car exports. 

The Asseoased Press 
Jersey — The chairmen of Allied 
Cbip. and Signal -Cos. Inc. an- 
nounced Wednesday that they will 

seek approval from then boards of 

directors to merge the two compa-, 

Meetings of the two boards were 
scheduled to begin Wednesday to 
consider the merge; which would 
produce a major high-technology 
holding compan y called Allied Sig- 

Under the agreement. Allied 

each share of Allied stock would 
become one share of common stock 

of Allied SgoaL 
d LHe 

would begin a cash tender offer for 
22 paB t O P shares, or 20 percent, of 
Signal’s common stock outstanding 
at $45 per share. 

Farfi of the remaining common 
shares of Si g nal, which is based in 
San Diego. California, would be 
pyrhanyH for me share of com- 
mon stock of Allied Signal. And 

Edward L Hennessy Jr, chair- 
man of Allied Corp n would become 
chairman and diirf executive offi- 
cer of the combined companies. 
Forresi N. Shumway, chairman of 
Signal, would be vice chairman and 
chai rman of (he ex e c u t i ve commit- 
tee. Signal's prsstdem, Michael D. 
D ingmsm, would be president AD 
three would also continue in their 
present positions at Allied and Sg- 


Last year, Affied reported a prof- 
it of $486.4 mxIHon on sales of $10.7 
billkKL Allied is involved in a vari- 
ety of fields, trrrinHrng 
energy, aerospace and automo- 

Si gnal L which has interests in 
aerospace, electronic communica- 
tions, energy sendee, transporta- 

tion and construction, bad a profit 
of $285 million on sales of $6 tril- 
lion last year. 

The combination would rank it 
among America’s 20 largest indus- 
trial organizations. 

‘Signal has great technolo gy, 
particularly in aerospace, automo- 
tive and electronic. With that ex- 
pertise. we’re going to accelerate 
very dramatically Affied’s growth 
in aerospace, automotive, chemi- 
cals ana electronics,” Mr. Hen- 
nessy said. 

Dunlop Sells Off 
Its U.S. Operation 

Airlines Named 
In Laker Suit See 
Out-of-Court Pact 


LONDON — Dunlop, the for- 
mer leading British tire maker, said 
Wednesday that it was selling its 
U.S. operations in a $11 8- million 
transaction that effectively marks 
the and of its tire-manufacturing 

Dunlop has already sold its tire- 
making plants in Western Europe 
and New Zealand and rubber plan- 
tations in Malaysia. 

The buyers are a U.S. investment 
group led by First Boston Bank. 
Dunlop Tire Coqx. the U.S. sub- 
siding, made a profit of $173 mil- 
lion in 1984. 

, Ncfi 



1 ssr- .■ 


Tlfes' 3sV ^ 

Gold Options (prim in I/a 





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Valero WUteWeM&. 

I. Qmh 4m 

1211 Cent** 1. Swit 
TeL 510291 - Trim 3.10$ 

arcas^ ondevdoped land in Hous- 
ton, and the company’s office 
bdhfing in Denver. 

Belgian Bank Lowers Rate 


BRUSSELS — The Belgian Na- 
tional Bank said it will cut its bank 
rate to 9V4 percent from 9% percent, 
effective next Monday. The rate on 
ordinary advances wfll be cut to 10 
percent from 1014 percent, also be- 
griming Monday. 

U’ U’ tin 

h Says He Plans to Sell 2 Papers 

Untied Preo International 


— the New 

York Post and the 
reported Wednesday. 

The newspaper quoted Representative Matthew I Rmaldo, a New 
Jersey Republican, as saying that Mr. Murdoch told him and other 
members of the House telecommunications subcommittee at dosed 

tee that he plans to sell two of bis daily UR n ew sp ap er s • 

Chicago Sun-Times, The New York Daily News 

meetings Tuesday: Tm going to sdl both newspapers. But I fed 
realty badly about the Chicago Sun-Tunes because it’s doing so well 

Mr. Murdoch's plans are part of a $2-billion agreement with 
to ouy si 

Metromedia Inc. to buy seven of its television stations, indudmg one 
in New York and one in Chicago. The Federal Communications 
Co mmissio n prohibits anyone from owning both a daily newspaper 
and a television statical in a major madia marVat 
“I will be complying with all rules and regulations," the News 


quoted the A 

publisher as saying. Mr. Murdoch also plans to 

become an American citizen to speed up the transaction. 

• Mr. Murdoch said he had no 

The News 
intention of 

the the Sun-Times and 

that lawyers for! 
from the Congress or the FCC to hold on to 



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price es on Amstanfeni steefc Exettonoe - 

New York Times Service 

NEW YORK — British Airways 
and tbe other 1 1 HafanHomo in an 
antimist suit filed by the liquidator 
of Laker Airways are optimistic 
that they will have an out-of-court 
settlement ready by Monday to 
present to a United States judge in 
Washington, according to a source 
close to the negotiations. 

The settlement, winch is expect- 
ed to total about $65 millio n, would 

be presented to Judge Harold H. 

S. District Court 

Greene of the UK 
of the District of Columbia, who 
has presided over the suit. The 
source said Tuesday that all the 
defendants have agreed to the 
amounts each would pay toward 
settling with 1-aVer creditors and 

The sauce also said that Sir 
Freddie Laker had indicated at a 
court conference in Washington on 
May 8 that be would be satisfied 
with the $8 millio n offered him, 
although he had some reservations 
about the terms. 

Wall Street 
Is Bearish 

Nigeria’s Foray Into the Barter Market 

(Continued from Page 11) 
consensus pstimams that they en- 
courage are expected to abate 

David A. Levine, economist' at 
Sanford C. Bernstein, agrees that 
chances at arecessioc occurring in 
1985 are dim — less than one in 
five — but believes die dunces of a 
major business upturn beginning as 
early as the second quarter are even 
less. However, he thinks interest 
rates will decline sharply in June 
and July as the Federal Reserve 
eases, igniting the economy. 

While tbe senario of a burgeon- 
ing economy, whenever it might 
crane, would indeed be bullish Tor 
Wall Street, not everybody sees the 
world unfolding that way. Joseph 
Granville, an influential market ad- 
viser. believes strongly that the 
stock market anticipates the econo- 
my, but says whal is being cast now 
is a “bear market shadow.” 

Citing whal he views as numer- 
ous current similarities to 1929, he 
is particularly fearful of the federal 
deficit's ultimate impact on stocks. 

“While it took McDonald’s over 
20 yems to sdl 50 billkm hamburg- 
ers, the Reagan administration re- 
duced the significance of that fig- 
ure by producing a deficit of over 
$800 biflion in only four years, thus 
outrunning McDonald’s growth by 
80 to 1,” be said.. 

(Continued hum Page 11) 
wide open, our books are wide 
open,” the minister said. 

Countertrade also tends to weak- 
en the market because it generally 
involves substantial discounts. 

In a typical arrangement, the oO- 
prododng country transfers crude 
to a trading company. The trader 
then sells the ofl on the spot market 
and puls the proceeds mto an es- 
crow account. - 

may 1 

fared at official prices. If so, how- 
ever, the price of the goods proba- 
bly has been artificially inflated to 
offset any loss on resale of the raL 
“That is precisely the sham,” said a 
trade spraialist at a U.S. bank in 

Countertrade also can result in 
the damping of large quantities of 
oil oo a weak market. CM compa- 
nies that buy oil on a regular basis 

aS Dornier Holder Steps Aside 

(Continued firm Age II) 

Daimler officials and Dornier 
shareholders agreed to value tbe 
with Daimler, -company at 750 mil Hon DM. This 
that he may have woh'' WDa i t j Daimler’s 68-percent 
stake at 510 million DM. 

on his 
but fain 

some important concessions. 

One family member said private- 
ly that Daintier may have agreed to 
“tolerate” Claudius' independent 

from OPEC countries have some 
flexibility to modulate their pur- 
chases «T»d shipmen t* to meet de- 
mand. But an ml trader standing in 
the middle of a countertrade agree- 
ment migh t have to nnlmui the ail 
quickly to avoid huge storage costs. 

Nonetheless, as Mr. David-West 
noted, Nigeria idles overwhelm- 
ingly on ofl exports and must find 
ways to maint ain them 

Talbot Motor Ctx, a unit of 
Automobiles Peogot SA; a Dutch 
food company, and some West 
German steelmakers also are hold- 
ing countertrade talks with Nij 
traders say. Motors Trading 
a unit of General Motors Coip., 
said last week that it was holding 
similar discussions involving 
trades, diesel-engines and railroad 


Weekly net asset value 

Tokyo Pacific Holdings N.V. 

L— J on May 1 3, 1 985: U.S. $1 32.85. 

Listed on the Amsterdam Stock Exchange 

Information: Pierson, HaktringA Pieraon N.V„ 

Herengractrt 214, 1016 BS AnwtanJam. 


Istituto Fmarr&ario Industrial 


Corporate oAmk 2S. No Morg nco . Tuna Hair 
Capital Rock Lkte 104.000000000 KRy port 
Turin rostotry at aw Comp a n h w no. 327, Mo 2370/27 


Notice is hereby given that □ shareholders' extraordinary meeting 
will be held in Turin, at the offices of SAI - Societo Assicurairice 
Industride S.p.A., Cor so Galileo Galilei 12, on Monday June 3, 1985 
at 4 p.m. and in cose of a second call on Tuesday June 18, 1985 at 
the same place and time, for consideration of the following agenda: 

1 . • Proposal to increase the capital stock from Lire 104 billion to bic 
110.5 billion through a stock dividend of 3.25 million ordinary 
shares and 325 million preferred shares to be distributed to the 
shareholders of each dass. 

- Proposal to increase the capital stock from Lire 1 10.5 billion to 
Lire 1 23 J5 billion through a rights offering of 6.5 million ordinary 
shares and 63 million preferred shares. 

- Related modification of article 5 of the by-laws. 

Z - Proposal of modification of arlide 6 of the by-taws. 

In order to participate to the meeting, holders of ordinary shores 
and holders of preferred shares are required to deposit their 
certificates, at least five days prior to the meeting, at the corporate 
offices in Torino - 25, Via C. Marenco. or at any of the following 

in the Netherlands: Amsterdam Rotterdam Bank N.V. 

In the Federal Republic of Germany. Commerzbank A.G. 

In Switzerland: Credit Suisse and Soafetg de Banque Suisse. 

In France: Lazard Fr£res & Ge. 

In Great Britain: Lazard Brothers & Ca and S.G. Warburg & Co. Ltd. 

AH the leading banks in Italy 


amphibious- plane project known 
as Scastar. The source said be felt 
Claudius’ opposition to (he Daim- 
ler takeover had “less to do with 
honoring the will of the company 
founder than it did with jockeying 
for support of the Seastar project" 
Daimler has derimed to say what 
it will pay for its majority stake, 
although at a press conference in 
late April it did not deny specula- 
tion that tbe cost of the takeover is 
around 390 mQhoa DM. A Dormer 
family member said, however, that 


Ministry of Public Works, Construction, 
Posts and Telecommunications 

National Office of Telecommunications Ivory Coast 

No 3290/84/ONT/DFB/FM/031 


The National Office of Telecommunications (ONI) invites 
international tenders for the supply, installation and connection 
to tbe telephone network of an 5PC digital local/ transit ex- 
change of 10,000 lines, extendable lo 60,( 

__ „ . ) lines, in ABIDJAN 

and such other optional ex c ha n g e s or eq u ipment as may be 
required by the ONT. 


Finance for the project is assured jointly by the African 
Development Bank (ADB) and the Ivorian Government. 


Hie tender is open to manufac turers and suppliers of digi tal 
exchange systems in member countries of the ADB and whose 
equipment is produced in these countries. The fligftal exc h an ge s 
offered must nave been already proven in service. 


The tender documents will be available to be collected from the 
20th May 1985 at the following address 
Service des Marchfcs 
Bureau des Appels d’offres 
4° & age, Porte 04-01 f 

Postel 2001 ABIDJAN 

on payment of 200,000 F CFA by cheque or hank order, si gned 
by the manufacturer or supplier, made payable to: 

"Office National des T&£ranmmmcations de Cote d’Ivoire". 


The tenders most be delivered not later than 17:30 on the 20th 
August 1985 to: 

Direction de F Office National des T felneotmrnirrira tiftrT^ 
Service des Marches 
Bureau des Appels d’offres 
AP fctage. Pone 044)1 
[2001 ABIDJAN 


AH enquiries during the preparation of tendera must be made in 
writing or by telex to the "Service des Maxeh&" for administra- 
tive information and to the "Dfipartemem de la Production, 
Projet Plateau HL Postel 2001”, co nc er n ing all other matters. 

Director Notional Office of tefacomm gni C BtioHB 
total 2001 ABD1AN 
01 BP. 1838 COTE D'IVOIRE 
T&BC 23790 or 23758 

rew ISSU E 

These Notes having been sold, this announcement appears as a matter of record only. 


US $200,000,000 

Croupe CIC 

Compagnie Financiere 
de Credit Industriel et Commercial 

Floating Rate Notes Due 1997 

Credit Suisse First Boston Limited 

Kidder, Peabody International Limited 

Merrill Lynch Capital Markets 

Banque de I’Union Europ£enne . 
BankAmerica Capital Markets Group 
Banque Bruxelles Lambert S.A. 

Citicorp Capital Markets Group 
Deutsche Bank Aktiengeselbehaft 
Fuji International finance Limited 
Mitsubishi Finance International Limited 
Samuel Montagu & Co. Limited 
Morgan Guaranty Ltd 
Orion Royal Bank Limited 
Sumitomo Finance International 

Credit Industriel et Commercial de Paris 
Bankers Trust International Limited 
- Caisse des Depots et Consignations 
County Bank Limited 
Dai-Ichi Kangyo International Limited 

Ensldlda Securities 

Skandinavfaiui EwkMa Limited 

Generate de Banque S.A. 
Mitsui Finance International limited 
Morgan Grenfell & Co. Limited 
Morgan Stanley International 
Sanwa International Limited 
Swiss Bank Corporation International Limited 



NASDAQ National Marks? Pricas 

Ma Man Lo« luam 

May 15 


Hie Perfect Executive Folder 

Exclusively designed for the Jntomatoial M d Tribune 

by Leathosamth of London, in supert), fiD&gtamed leatha' 

The most efficient of all possible solutions for 
praaniziDg the many papers you need— a mi coflect — at 
meetings conferences, on calls and appointments* on 
business trips. . __ 

The ideal business gift for an assoaatt^ a family 

member or yourself. . _ . ' . . 

folder is fashioned m fine suk-gram blade 
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Four gilt pi***! corneas. ftasanaKzad with three initi al s 

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• Inside left, two large, practical pockets for 
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The perfect practical gift for the businessman or 
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Please send me Executive Faldos. Price includes gpld-blocked 

embossed initiate, gdar calculator, gilt-metal penal, blue papa A-4 pad. 
Price: Destination in Europe, US$120. Outside Europe, US$130. 
Includes packing and handfing , airmail postage, plus postage 
insurance or registoed mail charges. 

Return this order form to: 

Dataday Ltd, attention: Paul Baker 

8 Alexandra Road, London. SW197JZ, England 

Please check method of payment 

□ Enclosed is my check or money order for $ made to the order 

of Dataday lid (Payment can be made m arry convertible European 
currency at current exchange rates.) ngp 

□ Please charge to my credit card Dh □ H □ 

Flat and dega&t when dosed, 
xmpact way to organize everything 
used for meaims and conferences. 





#r///<m ih\vv#//hii iuvv\%V 

■ ■■I '■! III .Xl. Ilf l I I'.w !,■■■] 
!■■■ .. m ik. 'i ■■■■ 





Budapest, June 1 3-1 4, 1 985 

The Intenvjtiond Herald Tribune conference on 'Trade and InvestmentOpportun^ 
will be of keen interest to aiyexecutive concerned about future economic rolcii^ between Bjstand West. 

The conference provides an extraordinary opportunity for business leaders to examine 
how the Hungarim government is approactingqp&stionstf and /hferrwifanc^ 

and offers Western executives an unusud occasion for direct contact with business leaders from Eastern Bjrope. 
Senior executives wishing to register for the conference shoufd complete aid return the coupon below. 




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JUNE 13 
Keynote Address: 

Mr. Jozsef Maid, Deputy Prime Minister 

The Economic Outlook 

Professor Jozsef Bogyidr, Director. Institute cf World Economics 
cf the hk/ngarian Academy of Sciences 

Foreigi Trade 

Mr. Isiv6n Tarak, Secretory of State for Foreign Trade 

The five Year Pfcsi 

E>. Janes Hods, Secretary of State, National Plaining Board 

Afternoon Address 

Dr. Armcnd Hammer, Chairman aid Chief Executive Officer, 
Ooddentd Petroleum Corporation 
Investment Incentives and Tax Free Zones 
Dr. P6ter Medgyessy, Deputy Minister of finance 


Mr. Sandor Demcsak, General Manager, Hungarian Foreign 
Tracing Bank 

JUNE 14 

The Bcsddng System 

Mr. Jfinos Fekete, first Deputy President, National Bank of 

Western Baddng end Hungary 

Mr. Gabrid Bchler, Vfce President end General Manager, 

Bank of America N.T, Vienna 

Industrial Outlook 

Mr. Ferenc Horv&th, Secretary of State for Industry 

ftnel of Hungarian hduslriafcfs 
Afternoon Address 

Professor Richard Poles, Director, Centre far Econom ic Poky 
Research, London 

Jasit Ventures 

Mr. Laszlo Borhgy, Director General, Department far 
International Monetoy Affairs, AtasAyofftiana? 

ftmel of Foreijpi Companies 

Moderator: Mr. Tomes Beck, President, Hungarian Chamber of 

J Wdpesf TO5>: T&frTjW&tm&W&gi 

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PhM * ,rEI saum:<MA - 

Floating Rates Notes wens not 
available in this edition because of 
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18 Capital of 

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22 Circus animal 

23 Chemical 

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26 Furniture 

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34 “ Yankee 

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38 Admiral who 
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40 Threat 

41 Dijon season 

42 Lemon 

43 Property, e.g. 

44 Paid athlete 

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47 Tokyo, once 

49 Phonograph 

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57 Move 

58 Melee 

60 Price offering 

61 Feel 

62 Cyclotron 

63 Imitation 

64 Corners 

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2 Lobster 

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46 Husband of 

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56 Author Gale 

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*P New fork Times, edited by Eugene Mahs lta. 












HE HAS A HD OCLOCR LHTTURE | rg a i wu n i l l flll 


IF HE ' S still 

— ,/ J3 AT HOME, I'D 

BETTER talk 

iCjKTIM TO HIM' jmri 

FLIESS, 1887-1904 

Translated and edited by Jeffrey Moussaieff 
Masson. 505 pages. Illustrated. S25. 
Belknap-Harvard University Press, 79 Gar- 
den Street, Cambridge, Mass. 02138. 

Reviewed by 

Christopher Lehmann- Haupt 

Y OU PICK up this book expecting it to 
blow up in your hands. After aS, it con- 
tains the complete letters written by Sign and 
Freud to his friend and colleague Wilhelm 
Fliess, which means that it adds 133 previously 
unpublished items to the 168 letters that com- 
posed “The Origins of Psycho-Analysis," 
whose English-language edition first appeared 
in 1954. 

And, after alL it was these 1 33 letters that set 
off a chain reaction whose main explosions 
included the following controversial events: 
the falling out between the present volume's 
editor, Jeffrey Moussaieff Masson, and the 
trustees of the Sigmund Freud Archives over 
the significance of the letters; the assertion by 
Masson in his 1984 volume, “The Assault on 
Truth: Freud's Suppression of the Seduction 
Theory." that the letters revealed how Freud, 
in developing his psychoanalytic theories, had 
dishonestly denied the evidence of actual se- 
ductions of children by their parents in 19th- 
century Vienna, and the publication of Janet 
Malcolm's book, “In the Freud Archives,” 
which deftly- traced the history of the entire 
unseemly affair. 

But what impresses one about “The Com- 
plete Letters” are the peaceful perspectives 
unfolded in its pages. Surprisingly enough, this 
results from the meticulous scholarship that 
Masson seems to have applied to his project 
He is above the battle here, throwing no 
punches and digging no elbows. His energy has 
gone into putting the letters in their proper 
historical perspective, into painstakingly cor- 
recting the errors of “The Origins of Psycho- 
Analysis,” into annotating obscure references 
in Lhe correspondence. 

Indeed, Masson has done such a conscien- 
tious job that one can't even distinguish be- 
tween the old letters and the newly published 
ones unless one troubles to consult the appen- 
dix as one reads along. The most dramatic 
result of this seamless rrwldrng is that there 
appears to be no dramatic revision of the 

Solution to Previous Puzzle 

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noBD naas ana 
ebbdbb BBEanaBE 
sana bbbbqb 
□□□□ c isse qbe 
E naoaaaaDiaaaa 

□□□□be oiiaa 
□□□□□□aa Eaaaaa 
□BE □□□□ BEDE 


RS OF seduction theory. Just as one had always beard, 
M Freud at first took his patients hieraBy ^ when 

them when they were children, then decided, 
by tuTSf of the statistical unlikelihood of such 
prevalent abuse, that these “assaults must 

nave been fantasized. Masson even takes rams 

to clarify and sharpen Freud’s rejection of his 
wirlier views, which would seem to counteract 
Masson's assertion of Freud's dishonesty. 

What absorbs one instead, reading Freud’s 
letters to Fliess, is the peculiar nature of their 
relationship. It is a two-sided view, of course, 
because, except at the tnd, we get only Fraids 
side of the correspondence. But if one may be 
permitted to draw the briefest thumbnail 
deftrfi of the friendship as it emerges in these 
pages. It began with passionate courtship on 
Freud's part, gradually subsided into gentle 
pammization (interrupted by the subtle but 
savage satisfaction that Freud seems to have 
derived from Fliess' medical blunder in the 
Fmmfl Frinrfein affair), and finally collapsed 
because Freud had outgrown his friend. 

Why did Freud need Fliess’ friendship? 
There are pitfalls and dragons here, and mate- 
rial for a thousand monographs, not a few of 
them focusing on what Freud refers to in an 
unpublished 1910 letter to Sander Ferencs as 
“the greater independence that results from 
having overcome my homosexuality.” 

But the drama one plays out in one’s mind as 
one reads this volume is that here are these two 
characters, one in Beriin, the other in Vienna, 
working on these absolutely off-the-wall ideas. 
Freud starts off proposing, among other 
things th at n eur asthenia is ca used by mastur- 
bation in mains and tr ansmi tted (0 the normal 

females they many. Fliess is working on a 
theory relating the nose to the sexual organs. /[. 
Freud sends rliess patients with sexual prob- 
lems. Fliess performs surgery on their noses. 

In time (and in a series of drafts that unfold 
dramatically in these pages) Freud, constructs 
the foundations of psychoanalysis. He writes 
“Studies of Hysteria,” “The Interpretation of 
Dreams,” and other masterwarks. Meanwhile, 
Fliess continues with the nose, develops a the- 
ory of periodicity that sounds like the ancestor 
of biorhythms, and propo s es that left-handed- 
ness is a sign of homosocnality. The friendship 
grows shamed. Fliess throws a tantrum be- 
cause Freud has insufficiently acknowledged 
his ideas on bisexuality. Freud apologizes. 
Fliess rejects the apology. The relationship 
cods. This, at least, is the way that I would 
draw it ifl had to do “The Complete Letters” , 
for Classic Comics. f\ 

Meanwhile, what became of the seduction 
theoiy? What was all the biting and scratching 
about? In the sequel to the first Classic Comics 
I would depict Jeffrey Masson enraged in a 
titanic Oedipal struggle with the elders of (he 
Freud Archives. Or maybe I would have him 
ranting like the man in the old Philadelphia 
Bulletin advertisements, just eying to draw 
attention to himself. 

In any case, he has got his way. He has 
■ created a fuss that makes ns want to read “The 
Complete Letters of Sigmund Freud to WII- 
hdm Fliess.” There, instead of a minefidd, we 
find a landscape whoe scholars may safely 
graze. It is an nnHfcdy outcome of a war, and 
Masson should be given all due credit. 

Christopher Lehmam-Haupt is on the staff of 
The New York Times. 

But just aw hands an 1 feet an'kxe wears n cheeks 






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V HOW MOO 90 IT "y 


Unscramble these four Jumbles, 
one letter lo each square, to form 
lour ordinary wads. 

By Alan Truscott 

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5 Bird’s 13 points in the final period led the Celtics to a 106-98 NBA playoff triumph Tuesday. 

Oilers, Flyers Take 3-2 Leads 



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* Compiled by Our Staff From bbpatcha 

. -1 EDMONTON, Alberta — Paul 
r Coffey, Jari Koni and Wayne 
; Gretaiy, the heart of the Edmon- 
- - ton offense, responded to their big- 


gest challenge of the season with a 
record-shattering performance 
here Tuesday niriiL 
— * The trio combined for 6 goals 
and IS points to spade the Oilers to 
a 10-5 rout of Chicago, putting Ed- 
___ monton within cme victory of sob- 
duing the stubborn Blade Hawks in 
1 their best-of-seven National Hock- 
ey League semifinal ptayoff series. 
1 The teams return to Chicago for 
1 Thursday’s Game 6 in the Camp- 
beD Conference finals. 

\ Meanwhile, the Philadelphia 
■ Flyers rallied to down Quebec, 2-1, 
*' and took a 3-2 lead in the Wales 
Conference finals. Game 6 will be 
played Thursday night in Fhfladd- 

' The Oilers knew they needed an 
explosive showing after being 

shackled in two losses in Chicago. 
“Everyone jnst did their own job,” 
said Kiuzi, who bad three goals and 
two assists after failing to seme in 

It was Kura’s third hat trick in 
the current playoffs, tying the re- 
cord set in 1983 by Mike Bossy and 
Mark Messier. 

Edmonton n eede d two first-peri- 
od goals from Kurri and one by 
Mike Krushduyriri to offset the 
first three of five Chicago power- 
play goals. But the Oileis were get- 
ting skating room: They had 17 
opening-period shots at goal tender 
Murray Banserman ana their of- 
fense was at fidl flow. 

Coffey wound up with a goal and 
five assists; his six prams were the 
most points ever in a playoff game 
by a defenseman. 

He assisted on three of the four 
second-period goals the Oilers 
scored to assume control after the 
Hanks had taken a 4-3 lead. Mark 
Messer tallied 21 seconds after De- 
nis Savard banged in Chicago's 
fourth power-play goal; and the 

Oilers then started to pull away on 
two goals by Gretzky and Klim’s 


In Qodiec City, after two lack- 
luster periods — and a tongue-lash- 
ing from Coach Mike Keenan — 
the Flyers exploded to edge the 
Nordiques. “Mike gave us a very, 
very stiff talk between the second 
and third periods," said Murray 
Craven, who scored the winner at 
15:01 of the final period. “He told 
us we didn’t look like we wanted to 

Outsbotby 18-12 in the first two 
periods and loang by 1-0, the Fly- 
ers came out winging for the final 
20 imputes. 

Joe Paterson tied the game on a 
power play at the one-minute mark 
when he tipped a Mark Howe pass 
past goalie Mario Gosselin and 
into toe right side of the net Cra- 
ven’s decisive goal came on a wrist 
shot from the right face-off circle; 
he took a cross-ice pass from Brian 
Propp and put the puck over Gos- 
scHn's shoulder. (AP, UPI) 


Celtics 2-Up on 76ers; Nuggets Even Series 

The Associated Press 

BOSTON — It was just one bad 
quarter, but it left the Philadelphia 
76ers perilously dose to the end of 
one fine National Basketball Asso- 
ciation season. 

Robert Parish and Dennis John- 
son oatscored the entire 76er squad 
in the third period here Tuesday 
night as the Cdtics rolled to a 106- 
98 victory and a 2-0 lead in the 
Eastern Conference final playoff 

Meanwhile, Denver evened the 
Western Conference final by blow- 
ing out Los Angeles, 136-114. 

"7116766X5 didn’t show up in the 
third quarter,’’ said the losers’ Ju- 
lius Erring. “You have to play all 
four quarters to play basketball — 
winning basketball. . The next two 


gaTMB, rm Saturday and Sunday, 
will be in Philadelphia. Only four 
NBA teams have ever won best-of- 
seven series after losing the first 
two games. 

The 76ers, with the NBA’s 
fourth-best regular-season record, 
led by 13 in the second quarter, but 
managed jnst 18 points — to Bos- 
ton’s 32 — in me third period, 
when Johnson had 10 points and 
Parish 9 pom ts and 8 rnxmnds. 

Boston-hit only one-third of its 
first-half flora - shots. “We could 
have crumbled," said Coach K.C. 
Jones. “They went ahead by 8 to 10 
points. At halftime we just talked 
about what we weren’t doing. We 
weren’t running the offense with 
any semblance of patience." The 
Cdtics improved to 473 percent 
from the field in the second half. 

points in the spurt to spark Boston 
to a 62-58 advantage with 7:38 left 
in the third period. The 76ers came 
back with 5 consecutive points on a 
free throw by Charles Barkley and 
field goals by Malone and Erring, 
but Boston dosed the quarter with 
an 18-7 surge and its 8-point bulge. 


In Inglewood, California, Alex 
.English poured in 19 of his 40 
points in the fourth quarter as Den- 

ver outsorted Los Angeles by 47-28 
to ice the victory that squared mat- 
ters in the Western Conference fin- 
als at a game apiece. 

A late-game scuffle between Los 
Angeles center Kareem Abdut-Jab- 
bar and Denver's Danny Schayes 
resulted in Abdul-Jabbar’s second 
technical foul and his automatic 
ejection. “They keyed on Kareem," 
said the Laker coach, Pat RHey. 
“Some call it good defense and otn- 
ers call it karate." 

Doug Moe. Denver's Coach, saw 
it differently: “We were playing — 
they were the ones throwing the 
elbows and doing the tackling." 

Dan Issel adds! 22 points for the 
Nuggets; teammates Calvin Nan 
and Elston Turner contributed 18 
apiece. The Lakers were plagued by 
turnovers and poor shooting 
throughout — including Abdul- 
Jabbar's 4-of-16 from the floor. By- 
ron Scott led Los Angeles with 22 
points and James Worthy had 17. 

Abdul-Jabbar was held to 13. as 
was Johnson. 

Abdul-Jabbar’s ejection came af- 
ter Schayes and Earvin Johnson 
tangled briefly. Abdul-Jabbar 
grabbed Schayes. riding him to the 
floor and holding him there. The 
two had exchanged words and' 
shoves a minute eartira , resulting in 
Abdul-Jabar's first te chni cal. 

“TTiere wasn't one person in tht 
NBA who gave us a prayer of win- 
ning ibis game," said Moe. 

Yankees’ Late Rally Again Defeats Twins 

from the field in the second half. 
For the game, they outscored Phila- 
delphia by 32-1 8 from the foul line. 

i .wnting by 52-46 at the half, 
Philadelphia fdl behind fra good 
when Larry Bird’s lay-up ™=»te it 
64-63 with 433 left in the third per- 
iod. The Cdtics widened to 78-70 
entering the final quarter, when 
Bird scored 13 of his 24 points and 
the lead ranged from 4 to 10 points. 

It was the second consecutive 
game in which Boston held the 
76ers under 100 points (the Celtics 
won Sunday’s opener, 108-93). 

In stretching its home playoff, 
winning streak to 10, Boston was 
led by Bird’s 24 points, and 22 each 
from Johnson and Kevin McHalc. 
Parish had 13 points and 16 re- 
bounds. Erring had 22 points; 
teammate Moses Malone had 20. 

The 76ers led, 58-53, before Par- 
ish started a 9-point run with a faD- 
away jump shot Johnson had 6 

! FignontoMiss 


PARIS — Cyclist Lament 
Fignon, winner of the Tour de 
France for the past two years, 
will not compete in the 1985 
tour because of tendinitis in his 
left Achilles tendon, it was an- 
nounced Wednesday. Fignon, 
,24, is scheduled to have correc- 
tive surgery on Thursday. 

Fignon brushed Bernard 
Hinault aside as France's top 
•rider in 1983 with a victory in 
his first Tour de France, the 
world's most prestigious cycling 
event Fignon won the three- 
week tour again last year as his 
Renault dominated from the 

Compiled by Our Staff From Dhpaxha 

NEW YORK — Trafling by 7-3 here Tuesday 
night the Yankees had the Minnesota Twins 
right where they wanted them. For the second 
straight game. New York came from way back 
to defeat the Twins. Ken Griffey’s grand-slam 
home run climaxing a six-run seventh inning 
that rallied the Yankees to a 10-7 victpiy. 

In Monday night’s 9-8 triumph, the Yankees 
had overcome an 8-0 deficit and won on Don 
Mattingly’s three-run homer in the ninth. On 
Tuesday, they sent 10 batten to the plate in the 
seventh and received five walks from three relief 
pitchers, paving the way fra their comeback. 

With <me out in the wining Willie Randolph 
singled off Pete Filson. who then walked Don 
Mattingly and Dave Wmfield. Rick Lysander 
came on and walked Don Baylor, forcing in 
Randolph. Curt Wardk took over, and walked 
Butch Wyrtegar — making die score 7-5 — 
before Griffey deposited WardJe’s first pitch 
over the right-fid a wall for his third homer of 
the year and his third career grand slam. 

Baylor gave the Yankees an insurance ran in 
the eighth with an RBI double. Rdiever Brian 
lusher pitched 3 % innings for his first major- 
league victory . 

Tim Teufel and Roy Smalley had three hits 
apiece for the losers, and every Minnesota start- 
er had at least one hh except Mickey Haicher 
and Gary Gaetti, whose respective hitting 
streaks or 10 and 8 games were halted. 

“My guys came out swinging the bats," said 
Minnesota Manager Billy Gardner. “We lost a 
tough one last night and put seven runs on the 
board tonight. It’s about time the pitchers start- 
ed doing their part" 

Said Yankee Manager Billy Martin: “Hold 
them to less than nine runs and you’ll win." 

Royab 5, Orioles 3 

In Baltimore, home runs by Frank While, 


George Brett and An Sundberg highlighted a 
five-run fourth. Kansas City’s biggest inning of 
the year, as the Royals got past the Orioles. 

Mariners 5, Red Sox 0 

In Boston. Mike Moore scattered seven hits to 
shut down the Red Sox and record his first 
shutout since August 1983. 

Blue Jays 6, Angels 3 

In Toronto, Damaso Garcia, who weut S-fra- 
13 with seven runs batted in during a weekend 
sweep of Seattle, stroked a two-out. >-p-nm 
single in the sixth to break a 3-3 tie red boost 
the Blue Jays past California. 

Tigers 4, Ranges I 

In Detroit, Lou Whitaker raised his league- 
leading batting average to .366 by going 3-for-4 
(inducting his second home run in two games) as 
the Tigers defeated Texas- 

White Sox 2, Indians t 

In Chicago. Greg Walker’s two-out single in 
the eighth drove home Ozrie Guillen from sec- 
raid base to give the White Sox their squeaker 
over Cleveland. 

A*s 6, Brewers 3 

In Mflawukee, Dusty Baker’s two-run pinch- 
hit double broke a 2-2 tie and keyed a five-run 
Oakland ninth against reliever RoDie Fingers. 

Cubs 8* Dodgers 3 

In the National League, in Los Angles, short- 
stop Larry Bowa had two hits and drove in two 
runs as Chicago defeated the Dodgers. Bowa, 
39. started because 22-year-old rookie Shawon 
Dunstoo had been struggling with a .194 aver- 
age (he had also made nine errors). After the 
pme, the Cubs ann ounced that Duuston had 

been demoted to ibrir Triple-A farm dub in Des 
Moines. Iowa. 

Giants 3. Pirates 1 

In San Francisco. Mike Krakow doubled 
twice and drove in two runs — in addition to 
pitching a five-hitter — to pace the Giants.' 
Krakow lowered his eamed-run average to 1.45 
in registering his third complete game of the 

Padres 6, CanBnals 2 

In San Diego, Andy Hawkins gave up five' 
hits, including homers to Andy Van Slyke and 
Darrell Porter, before departing in the sixth, but 
still improved his record to 7-0 as the Padres 
beat Sl Louis. Hawkins benefited from a three- 
run home run by Kevin McReynoIds, who has 
hit in nine, straight games, driving in 10 runs 
during that stretch. 

Mets 3. Braves I 

In Atlanta, Roger McDowell pitched 4 % in- 
nings of perfect relief and combined with Calvin 
Scmraldi on a three-hitler as New York won for 
the seventh time in eight games. The Braves lost 
tor the sixth tune in ihdr last seven outings, 
Rick Mahler dropped his second straight after a 
7-0 start and Dale Murphy, who went 0-for-4 
(he struck out twice), saw his hitting streak end 
at 15 games. 

Astros 10, Expos 0 

In Houston, 17 hits — four by Craig Reyn-, 
olds and three each by Jerry Mumphrey and Bill 
Doran — along with eight walks and three’ 
helpful errors enabled the Astros to bury the- 

Pbflfies 7, Reds 1 

In Cincinnati, Juan Samuel and Mike 
Schmidt homered (Samuel drove in five runs in 
all) to hdp Philadelphia end a seven-game los- 
ing streak. (l/PI. AP) 


f r •*r r 

- »*; ,«f ; 

hzXB? Tt:C 

RaolanUaitad ftwi ImmMad 

Trying to score on a fty baH,^ WIIBe Randolph seemed to have 
a leg up in a fnst-inmng collision with Minnesota catcher 
Man; Salas. But Salas made the tag, above, and beM on to 
the ball as Randolph got the bad news from the plate umpfre. 


Tuesday's Major League line Scores 

Team Ml MB Mfr-T H I 

Detroit 1J» «M OBx— 4 ■ 7 

Hough and SlauBht, Bru mmy (g); Wilcox. 

■ ' (VI. HR— Qotrolt. Whitaker IS). 

- Kamos aty OK 5S0 MOS 1 7 

. * Baltimore 100 0» 100—3 i • 

G<*b*cztt M. Janes f7). Gufienbyry t*) and 
1 Sunday; Mc C mor.SnMI (51 onODMawr. 
W-GUMao. 14 L— McOraoar. 1-4. Sv-<M- 

■ i senberrv (SI. HR*— Kansas Cltt, White (A), 
. Brett jo, Sundberg (2). • 

i Cafttonria . 021 OM 100-3 * I 

■ Toronto lMIBeix— 6 9 7 

■ 'Staton. John Is) and Boone; Alexander, Lo- 

'■ V"!3)te <7). Acker (U.COudlll (»>ond Whitt W- 
»' Atancwtar.S-l.L— Staton. M.Sv— CaudlR (7). 
•' * HRs— California. Grtch [3),Cam (ll.Taroo- 
to. Barfield te). 

. Seam* ttflOMMi— 4M 0 

. Boston MB MB Ml— 0 7 2 

?, Moore and Scott; BavcLKbon (3), Clear (B> 

' ond Gedman. W Moo rs . M. L— Boyd, 4-1 
, t \ Mteaessta TO HO-OM— 7 11 0 

New York 102 Mft 41*— » 11 I 

-• Ktowittcr, Prison l3>,Lvsander <71. WanSe 
■! * (7> M Solos. Laudny(S);MontefuscoiFish- 
•. or (4), Rfghotff (gland Wmeoar.W— Fttfw. 

• Sv-RWwffl (W. HR*— 
’ New Yoriu Winfield (31. GrHfov (3). Mtanmo- 
ta Brunamky (*). 

- Oakland BN Oil MS-4 7 ■ 

■ MBweakee MB 1M MV- 3 V 1 

CwflroU, How*fl 19) and Heath; Burris. Hn- 
' non 19) ond Schroetter. W— CwflroB. 4-1. L— 

' Fingers, frl 

Major League Standings 

Best DMsto 





. 'eronto 





P Detroit 





j Botttmera 





. Boston 





' New York 










■ - Cleveland 






West Division 






. Chknaa 










Kansas aty 










' ; Seattle 




.- Texas 





■ New Yam 

• rthteooo 

J Louis 

fP^ * -Rhitadetahta 


.a . 

Son Dten 

• •' v Los Ansotes 
^ ancfratoti 

]. 1 5an Francisco 
•* . h Alton la 

lost OMlIon 

W L PCt. 
•30 0 MO 

11 19 
9 21 


-II 12 

W L PCt. SS 
30 9 MO — 

IB 11 J21 2 

19 12 J13 3 
U 17 AS 7 
11 19 20 9» 

9 21 JM 11* 

11 12 AO 0 — ' 
37 14 ■ jm 1M 
.17 H J1S - 3M 
is u An sft 


United States Footall League Leaders 



Ctovdtend mw BOO— 1 7 * 

Chicago TM OM OIx-2 8 0 

Ruhta. Eootertv (SJ.Thomrwon (71. Waddell 
U) and Benton; LoIior.GJfetton (7}.aJames 



Lone* (6>, Hernandez (9) and Parrish. W— ff? QBNFN k.W-G L— Thomason. 
Wtleox. 1-1. L-Noueh. 3-2. Sv- Hernandez 3v ~ »>• 

Pt U o d e ta tUn * MO MT M*-r H C 

CtacRnatl OM 000 001—1 3 0 

Hudson Cartoon (9) and Virgil; Brown torn 
Wnas (9). Paotare (9) ond Van Qardsr. Bttar- 
detto (9). W— Hudson. L2.L— Brown too. V2. 
HRs— Phnadotahta. Samuel ro.sctmddt (4). 
Pittsburgh 0M IN M0-1 S i 

o— f j imjit n . sag see n-s 5 1 

Mcwwtami. BtatecU (51. Cuaate (7) and 
Pena; Krukaw and Brenly. W— fCrukew, 3-2 
L— McWBItoms. va. HR — Pittsburgh. Mfifr 

zllll n). 

-Now Yeffc 010 «■ MO-3 9 0 

Atketto BN m SOS — 1 3 1 

sadroicH. McOowolt (Sl and Carter; Moh- 
1. L— Mahler, 74. HR— Atlanta Wa s htogton 
( 21 . 

Mo ta real •/ MO NO 00fr- 17 2 

Houston 021 310 42X— 10 17 2 

Rogers. Otvnn (31,'Burke (4), Schatzodar 
IS) and FHzaoraU Butera W; Morthlv Mm 
m and Boltov. «MUnMhH.b-RomrfcML 
St Loots M0 m NB-a 7 2 

soi nch an on «>*— t 7 1 

Tudor, KonNre (5), Alien (71 and Port w; 
Hawkins, Thurmo«| {ft and Kennedy. W— 
Hawktos.7^. L— Tudor. VS. Sw— ' Thurmond 
ni. HRs— Son EMega Afc Reynold* (3 )l St 
Louis, van Stvfce (1), Porter (2). 

Chicago 140 NO NO-fl 11 1 

.Los Anastas - 200 1M BOO— 1 * 1 

SuMHfa and Dawte; vdereueta. Oku (5).' 
BrBnnonm,How«(7)ondSctasdo.W— 5ut- 
dlHa frfr L— 1 Vntanwte frt . 


PMtadotaMa B g 3-3 

QtfSiNC 9 1 ^-1 

Paterson (3). Cnavw (3): Satnm (5). Shots 
a a good: PtiPodeWifa (on GoMoHn) frfrfr-21; 
Quebec (on LMBhWU M-B-JL 
Chfasgo . 2 11—5 

Edxw nta a ; 3—10 

Krusnotnvskl 13L Kurri 3 (T4), Mossier (B), 
GretakvanOLCottayW. Hunter (lLFoaonn 
OH T. Murray (51. Sutter? ratLamwr (9L 
Seward (9). sheteon geat: CMsoaa (a Fuhr) 
4-64-27; ecbnonfeii (on BcMRonnan) 17-33- 
W— 51. . 


_• (PhBaaeMg leads series fr& 

Mav Id: Quebec Hi PMIadafnMa 
k-Mov 19: PhBOdowua at Quebec 

(Ednwntan toads series H) 

MOK. Ul Edmonton at Oliengo 
x-MOV 10: Chleaao at Edmonten 

UHi n eo soonr yt ' 







Tampa Bay 








New Jersey 




































Los Angeles 








San Antonio 




Team Defence 

Team Defense 

















Tampa Bay 




Son Antonia 












New Jersey 












Las Anaeles 












Lmb, MEMP 
Steudfc BIRM 
Reaves, TB 
Fuslna BALT 
Luttwr, JACK 
Flutle, NJ . 
Collier, ORL 

Walker. NJ 
Rader. JACK 
Anderson G. TB 
CrlWjs. BIRM 
Brvont. BALT 
Btadsow ORL 
Carthoa NJ 
Lewis. MEMF 
Horvln, BALT 

Smith J. BIRM 
AlwrtL JACK 
Fltikee. BALT 
Brodsky. TB 
Ked. JACK 
Crawford, MEMP 
Anderson G, TB 
Koidp, JACK 

Latxtafa BALT 
Cater, ORL 
SwMer, JACK 
Grwp. MEMP 
Psrtrtdow NJ 
AnOrvsYstrrn, TB 
Parson* BiftM 

AH Com Yds TO Ini 
172 92 1400 15 4 
314 183 2204 21 13 

W2W2W7 W M 
3M IK 2291 9 11 

200 109 1870 10 14 
346 117 1794 12 12 
229 117 1446 S 12 

**AH*YdS AW Ls TO 
M4 U5Q SS SS 11 
214 942 4-4 23 8 
194 822 42 68 13 
197 79S 40 19 6 
1S3 709 4d 02 6 
160 642 3J 20 2 
MS 5M 44 55 5 
56 457 13 43 3 
112 427 38 47 3 
Re ceivers 

No Yds AW U TD 
55 B56 lid 54 N 
54 684 1X7 51 2 
54 647 12S 37 2 
46 729 1X7 0 5 
43 457 196 40 8 
42 735 178 4* 7 
42 388 90 32 1 
41 842 295 59 4 
_ 40 540 135 34 4 

NO YdS AW Tb 120 Lg 
a 2872 432 14 11 60 
62 269 09 51564 
39 1613 4L4 5 8 57 
26 1056 4B6 1 3 SS 
44 1750' 3M 6 10 61 
37 1445 39.1 1 11 S» 
50 1971 396 4 13 £2 


MeFodden. BIRM 
Lone, BALT 
Jackson v, ORL 
mUoma H, MEM - 
DantoL kJ 


Pmguos. NJ 
McCanfs, BALT ' 
Camdth BIRM 
Matthews, JACK 
vnutams H, MEM 
Butts. JACK 
wffilems. TB 

CagOang, OEN 
Williams IXARI 
Evans, DEN 
Yams. LA 
ttoahetsei, SA 

Johnson B. DEN 
Bentley A. OAK 
Brawn R. ARIZ 
.Jordan, port 
wlTUams j, OAK 
Gray, la 
N ehosv LA 
Wllttams V. FOR 
Lon«, ARIZ 

Johnson, hou 
V erdta. HOU 
Harris L. OEM 

LAwta. DEN 
White, DEN 
Carter A. OAK 
Banks. OAK 
Hvrell, HOU 

Tolley, OAK 
deBrufln. ARIZ 
Gossett. PORT 
Pnrtridae, LA 
waiters; HOU 
Mlk*A4aver. «A 
Xeeetmon. DEN 

Alt Com Yds TD Inf 
610 324 4053 35 17 

320 167 3487 21 13 

W8 86 ?<MI 8 7 
311 167 2132 II 12 
301 145 19S9 12 IS 

174 80 1217 4 9 

265 139 1791 12 19 


AW Yds Aw La TD 
140 965 69 56 18 
132 778 19 57 1 
144 70S S3 te 7 
IBS 630 6J 41 3 
KB 471 4426 4 
09. 301 4.1 26 1 
VB 355 14 32 1 

71 300 42 17 0 
95 284 10 17 4 


. No Yds Aw Ln TD 

72 815 123 52 10 
70 797 114 74 6 
46 039 124 46 6 
51 746 144 30 6 
46 537 IL7 49 5 
44 031 18J9 62 9 
40 791 194 69 6 
40 661 16J 43 4 
■40 374 94 S 7 


No Yds Aw Tb 120 Lb 
. 47 2076 442 4 19 76 
45 18N 420 4 15 79 
53 21S0 4L9 112 56 
572295 4U 115 S3 
38 1499 394 4 8 56 
31 1186 382 3 9 55 
' 31 1179 3U 1 3 58 

Yds AW Pc La TD 
23 251 MJ 9-45 fl 
32 227 102 3 20 0 

21 227 99 3 71 0 

22 168 74 0 47 0 
t3 71 54 3 15 0 


NO Yds AW LB Td 
38 179 23.1 99 2 

13 264 203 38 0 
20 309 200 38 D 
77 348 SOS 37 O 
17 333 194 26 0 

14 269 192 46 0 
. 29 644 1U 49 D 

20 375 m 33 O 

15 268 175 jg « 

Martin. DE-AR 
Gunn. La 
Harris. Afi-OE 
Hafl, PORT 

Verdin, HOO 
Foulkiter. OAK 
Harris. AR-OE 
RkJa. PORT ' 
Turner L. DEN 
Boddle. LA 
Brawn a ARIZ 
Banner, SA 

No Yds Aw Pc Lg TD 
>R 16 181 IU 4 a 0 
13 160 1S7 10 45t 1 
39 306 106 2791 1 
E . 9 245 18 2 23 0 

17 150 04 6 32 6 
Kkawt Between 
. No Yds Avg LB TO 

•a 644 200 102 3 

17 414 344 57 0 

19 457X1 74 0 
16 364 224 2 0 

18 375 2U 41 0 

22 449 204 X 0 

18 351 194 29- 0 

14 367 19.1 23 0 

16 293 104 31 0 

NBA Playoffs 

Italian Open 

Pfagod eto hto a 24 II 28- 98 

Boston 3B 26 32 as— 106 

- Bird fra 8424. McHole 8-14 6622. D John- 
son 0-15 6422; Ervins 8-13 6622. Malone S-1B4- 
6 a Rebounds: Philadelphia 54 (Malone 13) ; 
Boston SS (ParWi 16). Assists: phltadelnhta 
21 (Ervtrtg. Cheeks 7); Boston 23 (Bird, 
□Johnson 7). 

Denver M 36 23 47—136 

I— A. Ldkers 27 33 27 38—114 

English 17^1 6640. Issel 8-136622; Scott ifr 
153-222. Worthy 8-11 1-217. Rebouuds: Denver 
60 (Turner 11); l_A_ Lakers 3 I Johnson 91. 
Asstais: Denver 41 (Turner 81; LJLLakera 29 
(Johnson IS). 


(Bestaa toads sertat Ml 
Mav 18: Boston at PMtodetohla 
May 19; Boson at PhJIadetohto 
x-Mav 22: PhllodeiPhla td Boston 
x-Mov 24: Boston at Philadelphia 
x-Mav 26: Philadelphia at Boston 
(Sartos tied Vt) 

May 17: Las Angelas at Denver 
May 19: Loo Angel os a) Denver 
Mav 22; Denver at Las Anoetes 
x-Mav 24: Los Anastas al Denver 
x-May 27: Denver at Los Anuetes 

European Soccer 


Everton X Rapid Vienna l 

Broun 3 

Hungary X Netherlands l 
Potato s t wdhiBS -. Hunaa> 1ft Austria 7. 
Me t hertont te 7 . Cyprus ft l Hungary awllftas 
tor the H6t cup ftnol In Mexico City; the 
Netharlandfr on goal difference over Austria, 
will meet the wtoner of IBoOcecrtn Group for 
a aw berth.) 

Laval ft Bordeaux 2 
NdnQr 1, Naples 2 
Sachaux VMete 1 
Rouen I, Auxcrre 2 
RC Parts X Tours l 
srras&oura 1 , Basfla 1 
Monaco 4, Paris 5C l 
Toutouse ft Brest 0 
Uita L Toulon 1 
MVMiae 1, Lend 2 

Mete tamdtogs: Bordeaux SS: ManfwSZ; 
Monaco 45; Auxerra 44; Toulon 42; Moiz 41: 
Lenstoj Sachaux 36; Brest 35; Laval 34; Tou- 
louse 33; Money. Ports SC, Marecflta 31; 
S t rosb uu r u. Bastio30: Lille 29: Rouen, Tours 
27; RC Parts 26. 

Chelsea 1. NorwWi 2 Covwttrv 0 

Southampton 1. Lharaaal 1 
Tottenham z Shelftofd Wednesday D 
weri Ham ft Stoke 1 

First Roaed 

JosiUrfsOerc. A r ge nt ina del. Simone Co- 
lomM, ttaiv. 741 7 4L6 l Atoe r toT n u e . ante 
del. Zafton KuharNiy, Switzerland. ML 64. 
Roll Gehrtna. West Germany, del Jos* HL 
gueras,Spaliv6-ft74. Gabriel Un»LSpaln,deL 
Gfvoldo BortMea BnulL 74 (7-e). ML Jean 
Bautista Avondano. Snala def. Ivon Kiev. 
Brazil. 6-fr74 (7-1 J. Anders Jonva. Swedea 
def. Victor Peed, Paraguay. 7-ft frft C la u di o 
A Henrt k Sunslroia Snwdecbdet CJaudta Pts- 
totesL Italy. 7-6 (7-1). 6-1. 

Second Round 

Mots WUander. Sweden fll.dM. Pavel Sla- 
sll,CcechoNav«Ada4-l (ret). Emilio Sanrtoez. 
Soobi, deft Mlctnei westphal West Germany, 

6- 4. 6-fr Anders Jarryd, Sweden (33, def. Mike 
Loocto US» 6-3.1-4,6-L Jon Gumarsson. Swe- 
den, def. Alekmdro GanzobaL Arawrtlna 6-4. 

7 - 5 . Gut Oermo VI las Argentina (Wl.dtf.Mas- 
•VnB Ctarra, HMSMM 6>1 Mliosiov Mecir. 
Cndwstovtoda (7), def. Blaine WIUetAora 
US.W&P7 Ifr7).6-L Henrik Sunfetrem.Swe- 

Tonr Leaders 



1. John McEnroe. S364JT15. ft Ivon Lendl 
5351 JJ32. 3. Tim Moyotte, 8236,177. 4, Tomas 
Smki S15IML S Anders Jarrvd. S144JN8. 6. 
Jimmy Connors. S13LS7Q. 7. Mlkstov Mecir. 
SI2943D. ft JOOkim Mygtnjm, 513^924. 9, Staten 
Edbere. STZ1J38, lft Mots WUander, 5118451. 

ATP corapater Rankings 

i.jahn McEnroe. 175.14 points, ft ivon LeodL 
U94ft ft Jimmy connorfr llSJft 4 , Mats WL 
kXKtar,9ft20Lft AndftS GOflWI. AndlTS 
• JcxTyd.S929. 7. Aaron Kridtxtola 5169. ft K»- 
‘vln Curran 4ft3ft 9 . Jooklni NvSrwn.47j2.lft 
Pat Cash. 4A73. 

Toar Potato 

L John McEnrowL77ftft Ivwi LoML1.10ftft 
Tim Mayotte. 832. 4. MJIastav Medr, 810. ft 
Scott Davis, 764. 6. Tomas SmkLKfr 7 , Jimmy 
Connors, 6 X. ft Anders Jarryd. 382. 9. Mats 
WHander, 56fr Ml Johan Krtek. 548. 



1. Mori I no Navratilova. 36B&687. ft Oris 
Ewrt Ltovd. S37SAB7. ft Hano Mondllkova 
06X087. 4. Hetooa Sukava. siffLSTX ft Pom 
snrfver, SUSJDft ft Zina Garrison. SU0L57S. 7, 
Ctoudta Kodho^aiscfr 5)19,973. ft Kalliy JOr- 
don. 5WL32S. 9. Carflng BawrtL 599000. lb 
Cotart no Undqvtat. *95^75. 

WTA conwutor Rankings 

I. Martina Navratilova 178739$ paints, ft 
Chris Evert Ltovd. MLST96. ft Mono Mondll- 
kova 88.1888. 4 . Monueki Maleeva. 7L1B60. ft 
Helena Sukava 64X691. ft Zina Garrison. 
6X4631. 7. CkMdla Kohde-Kltech, S7A39X ft 
Wendy Turnhull, Sft269fr 9, Pom Shrtver. 
S.1948. lft Carting Bastott. 454782. 

Tear Petals 

L Martina Navratilova. 45L ft Chris Evert 
Lloyd, 48ft ft Zhw Garrison, 375. 4, Ctoudta 
Koftde-KUsch.33S.ft Manuda Maleeva, 32ft 6, 
Katerina italeawa 387. 7Jtattry Horvath. 271 
frAnna Maria Cecchinl 267.9. Gabrtoia Sabo- 
I Ini and Vlrafaita Ruzld. 265. 

den 15). def. Staton Slmwissoa Sweden, 2-fr*- 
ft 6-3. Juan Aaultera Spain, def. John Umfr 
Britain. 6ft 6-1 Jo« Luis Ctorc Argentina 
(I3),4tot.aaudta Ponatta italv.6H.l-6.7-6 (7- 
2). Ctouflo MazzodrL uarv. def. Paul McNa- 
irwe.Awstrnlla6ftl-6.7-6 17-51. Jimmy Arkw. 
Oft, doLSlohodaitZlvonnovIc, Yugoslavia 6- 

4 . oft Kent Carttsaa Swedea def. Ubor PL 
mek. CzechoelovoUa 6ft 6-2. Boris Becker, 
west Germany, deiTtaMryTutsane, France. 1 
6ft 6-1. Yannick Noon Franca del. Ricky 
Ostonhua West Germany. 6ft 7-ft Tomas 
SmULCzerinstovakta (6).def. Jimmy Brama 
US. 6ft 2ft 6ft 


American Longue 

MILWAUKEE— Recalled Eamle Riles, 
shortstop, tram Vancouver ol the Pacific 
Coast Looguc. Oottoned Doug Lomaa out- 
ftaktor. to Vancouver. 

SEATTLE— Optioned Harold Reynolds 
tocond baseman, to Calgary ot the Pacific 
Coast League. Recalled Darnell Cole*, third 
baseman, tram Calgarv. 

National Leasee 

ClNClNNATi-ftent Dram BUardetlo, 
cotcher.and Carl Willis. otWw, to Denver of 
ttwAmerleon As s orJulloa Recalled Alan K16 
cetv, catcher, on) Ran Robinson, pitcher, 
from Denver. 

HOUSTON— Recalled Mark Rosa pitcher, 
from Tucson of the PacHieCoasi League. Sent 
Julto Solano, pitcher, to Tucson. 


Nattooot Baskrtholl A no dattoP 

HOUSTON— Stoned Erie Tumor, guard, to 
a two-rsor contract. 


National FootbaB Leooee 

CHICAGO— Stoned Bonrv Harsna tight 

end; Stan Johnson end Keith Ortega, wide 
receivers: Ken Miller, defensive bode; Mike 
Stoops, safety; Rick Ward, Punter, and Tony 
Lombardi, tailback. 

DETROIT— Signed Rav Stadiowtcz. punt- 
er; Tam Kanka. defensive end; william Dot- 
ton. fullback; Kevin Solti to, nnebadter, and - 
Scott Ahvord and Jeff CoMn. tight ends. 

INDIANAPOLIS— Signed Lamante Htmfev 
ond Gary Pouien.llnobncfceri.ond Pot Oeocn. 
no« end. Released James Kevton. aifenslve - 

tackle, and Ed Lee and Frank McClain, wide 

rece i vers. 

n.y. giants— S toned Greg Mil ond Victor 
Jama, wide receivers, and Phil Mock, defen- 
sive tackle. 

PHILADELPHIA— Announced Me retire- 
ment of Frank LeMhEter, linebacker. 

SAN FRANC) SCO-Stoned James Brawn 
and Mike Wvmtxv detersive tackles: Vyn 

Goodman and Willie Sektoa linebackers, and 
Chants Huff and Doug McCann, defensive 
backs. Stoned BUI Wgtov head coach and 
president hi a tour-year Contract. 

PGA Leaders 

Statistical tenders on the Professional Oert- 
ers AMO ctatton tour through the Bvran Nel- 
son Classic; 


1. Qirttt StranBO 5397,115 

ft Colvin Peeto 28M30 

ft B er n h a rd Longer 267A3S 

4. Crato Stodtar 252J48 

S Mark O’Meara 24Z311 

A. Lartnv Wodidrts QIJHl 

7. Nay Floyd 225,147 

8. Tom watean 17U99 

9. Fuzzy Zoeller 166.156 

Ifr Tom Kile 156JB2 


b Dan Pwtoy 7b». ft Crato Stodtar 7frlfr ft, 
Larry Mtae Cotvlrt Poete 7051 5. Tom 
Watson 706ft 6. Curt fa Strange TfrTfr 7, Corey 
Povta 7077. ft Den PoM 71139. 9. Roy Floyd 
7083. 10. Lonny WOdklns 7086 

1. Fred Couples 276ft Z Andy Bean 2M.L 1 
Grea Norman27frfrfr Bill Glasson27fr4.ftMac 
O’Grodv and smxtv LyM 27X6. 7. Jtai Dent 
Bobby WbdkUw 270ft Driving Percentage in 
Fairway ... 

1, Calvin Peeto JOfr ft Halo Irwin ADSL ft 
David Edwards JM. 4, Tam Kite .767. 5, Tim 

Harris and MU* Retd 768. 7. Lorry Nelson .7 go. . 
ft Bruce Uetzke J7S1. 9. Jack Renter .750. ifr 
SceH Sknpggn ^49. 

1. JoA Nlcklaua J36.2,Bruce Uetzke J29.X - 
Dan Pohl and Calvin Perto JU. S Al CM- 
beraer JZL 6. John Mahoftev J17. 7. Mac . 

D Graov 711 ft Cor*v Povte 711 9. Doug . : 
Tevtell 709. Ifr Tze-Chung Qten 707. 

1.L0TM Roberta 2fr4B. ft CM Chi Rodrtouoz ’ Fuzzy 2oel ter ■ 

2frJ7. & Dan Pooler 2070. 6. Frank Comer - 
2&M. 7. Nick Price 3U4. 8. Ed Fieri 2187,9, 
Bobby Ctompetl 2UB. 10, Crotg Stodter 2&9fr ' 
1. Grata Sledtar 736. ft Tom Walsai 72fr ft .’ 
Philip Btockmar Tze-Chung Own 719. ■ 

5. Hal Sutton and CurUsstronao 317.7. 1 »» » r Don Pootey 715.9. Fred Coo- • 
Mas ftix 10, Lorry NUze ftio. P 


1. Larry R Inker g. 2. Curtis Strange Fred *'• 
Cowta. Buddy Caninar and Philip Bta^ 

mar frfr Craig StadterCorgy Pavlnanci 

art Twltfy. 7. 9 tour Had with fr 

LOrotaStadler21ftftFrMCbijataEmft """ 

Hal Sutton Wfr 4, Bernhard Longer jjj, * " 
&rtUStranoel87.frJoevSlndetorl0fr7j CMt . ' 
aMia.bMtaga anpMimh « . 

Page 18 



Banking Citizen of Year 

Growing Up on TV: Britain’s '7 Up’ Kids Are 28 


Dear Freddy. ^ 1 1985 
I know you haven’t heard from 
me for some time. But Tm writing 

i- y P u would attend a 
w- *" ch I’m going to be 
honored ^ the “Good CiSzcn of 
tbc Year at the Grand Milkwood 
Hotel on June 3. 

loans, my bank also invests with 
go-go securities firms in Florida 
and New Jersey. They pay us inter- 
est rates you wouldn’t believe. 

By Georgia DuIIea 

>w York Times Service 

J guess you’ve been wondering 
what happened to me since ? 

stopped selling 
door-to-door in 
Bethesda. Well, 
believe it or not. 

I’m a hotshot 
banker in Mary- 

I know what 
you’re t hinking 
What do I know 
about banking 
after selling ai- Bochwald 
cyclopedias for the last 10 years? 

It’s a business just like any other 
business. People are always looking 
for bargains and if you can offer 
’on a belter deal than ihe guy down 
the street you’ve got a customer. 

Ba nki ng is really a snap if you 
know anything about human na- 
ture. The trick is to have a solid- 
looking building with lots of mar- 
ble and a guard standing by the 
door with a gun on his hip. who 
looks real serious about protecting 
the customer's deposit. 

Since I pay more interest than 
other banks in the area, the money 
just keeps pouring in. 

People are standing in line in 
front of my window right now with 
paper bags full of currency, scared 
silly our safes will be full up before 
they can open an account with us. 

. 1 don’t have any problems ai- 
. tractiug deposits. My difficulty is 

est rates you wouldn’t believe. 

The depositors are getting rich, 
businessmen are getting their loans 
and the bank is earning a huge 
return on its money. 

The reason I'm bang made “Cit- 
izen of the Year” is that I have just 
bought new uniforms for the nigh 

L OS ANGELES — “What do 
t vou want to be when vou 

J — < you want to be when you 
grow upT becomes a provocative 

question when pul to a group of 7- 
vear-old British children and re- 

school football band, and die peo- 
ple of Milkwood don’t know now 
to say thank you. Hope you can 
make it 

Best regards. 



May 10, 1985 

Dear Freddy. 

The dinner has been called off. 

1 don’t know if you saw it in the 
papers or on TV but my bank has 
been taken over by the slate. Whal 
happened was this dipsy -doodle se- 
curities outfit in Florida walked 
away with our money. 

We could have survived that but 
the news or our losses got into the 
papers, and suddenly the deposi- 
tors made a run on the h ank. 

It was a small run until the TV 
stations showed the people with 
their beach chairs and paper bags 
waiting to take their dough out 
Then all hell broke loose. 

Obviously we couldn't give ev- 
erybody their money back since it 
was all out on loans or lost some- 
where in the swamps of Florida and 
New Jersey. 

What with the unfortunate pub- 
licity, the bank examiners decided 
to come in with their crummy little 
hand calculators. They found some 
minor discrepancies on the books, 
which they claimed were fraudu- 
lent but which were really little 
mistakes in bookkeeping. 

They also said 1 took out several 
million dollars for my own person- 
al expenses, which they’re going to 
have to damn well prove. 

Anyway, the governor is blazing 
mad and the people who lost thdr 
savings are kmda upset, so we de- 
cided to postpone the “Citizen of 
the Year” dinner until I could work 
out some sort of plea bargain with 
the attorney general. 

Besides, I’m now living in the 
Bahamas and it’s hard to pin me 
down for a date when 1 can pick up 
the award. 

All the best, 

figurine how to spread it around 
Heh, hah, heh. What I mean, 
Freddy, is that, if I’m paying 7 
percept to the depositors, 1 have to 
loan it out at 15 percent to make 
any money. 

Well, fortunately, there are a lot 
of people in the United States who 
are more than willing to pay more 
than the going rate to borrow mon- 
ey. Most of them were turned down 
by the other banks for one stlly 
reason or another. 

These guys and dolls are salt of 
the earth, they’re real estate devel- 
opers, commodities speculators, oQ 
drillers, takeover artists and horse- 
racing enthusiasts. 

Besides the money I make on 

year-old British children and re- 
peated every seven years until 
they are 28. The result is “28 Up," 
Michael Apted’s award-winning 
documentary, which has touched 
audiences in the United States 
and abroad It has also given edu- 
cators and psychologists a rare 
longitudinal glimpse of the myste- 
rious proc e s s of growing up. 

Shown recently as pan of the 
Los Angeles film festival, “28 
Up" won wide critical acclaim. 

A pied, 44. best known in the 
United States for “Coal Miner's 
Daughter,*’ was a researcher at 
Britain's independent Granada 
Television in 1963 when the pro- 
ject had its modest be ginning. 

“At the time," he recalled re- 
cently. “we were being fed a lot of 
stuff in England — the social rev- 
olution, the swin ging '60s and 
‘You never had it so good' This 
was to be a kind of salutary tale 
about the class system." 

He chose 14 children, not 
knowing be would follow them 
into adulthood across continents, 
up and down dreams. They were 
rich, poor and middle-class. They 
came from cities, suburbs ana 
farms. Ten were boys, four were 
girls. One was black. All looked 
into the camera and in response 
to Apted’s questions, poured out 
their views on such topics as love, 
work, money, class and race rela- 

“What are your plans, John?" 
an upper-class 7-year-old was 
asked. John spoke confidently of 

' * } 

Director Michael Apted with, from left, Jackie, Lynn and Susan. 

The Now Yori Ti . 

private schools, “if 1 pass the 
exam, and then Cambridee." Cut 

exam, and then Cambridge." Cut 
to Paul in a children's home, who 
asked “What’s a university?" 

The resulting program, “7 Up," 
was a sad funny, touching, suc- 
cessful piece of television. The 
young researcher thanked his 
small subjects and wished them 
well. That, be thought, was that. 

No one was more surprised 
than he when “7 Up" became a 
standard work in teacher colleges 
and psychology classes. Child de- 
velopment experts uiged Apted 
then a director at Granada, to 
film the same children as adoles- 
cents. It was a challenge. Ip re- 
called “but also a burden because 

I'm not a psychologist or an edu- 
cator and I kept thinking. ‘Am I 
asking the right questions?' ” 

In “14 Up,” the children hid 
from the camera. They appeared 
confused self-absorbed and in 
one or two cases, drugged. 
Though “21 Up" was more suc- 
cessful its director admitted: “It 
was far more interesting to pro- 
fessionals than general televirion 

In the next seven years, Apted’s 
filmmaking career flourished in 
the United States. Some said he 
had “gone Hollywood" and 
would not return to Granada for 
“28 Up." But be did. Two of his 
subjects refused to be inter- 
viewed one had become a barris- 
ter — and the other a documenta- 
ry filmmaker. Still with the 12 
left, the film came alive. 

“It catches fire at age 28," Apt- 
ed said “because it shows human 
beings making major decisions 
about their lives — careers, mar- 
riage, children. The dreams ex- 
pressed as children, adolescents 
and young people must be mea- 
sured against reality. They are 
adults now. painfully getting 
through the day." 

Shown , in Britain six months 
ago. “28 Up" won a television 
academy award. It is expected to 
be broadcast in the United States. 

28 Up" uses footage from the 
earlier films . The effect is similar 
to time-lapse photography: The 
children seem to sprout, bud and 
blossom into maturity in seconds. 
Wives, husbands and children 
spring up beside them. 

If there is a star, it’s Tony, from 
London's East End. At 7, he got 
into fights, stayed out too late and 
haled the rich. At 21 be was a 
bookie's runner after a failed ca- 
reer as a jockey. At 28 he is driv- 
ing a cab. supporting a family and 
parlaying his celebrity from the 
earlier f ilms into bit acting parts: 

Apted recalled the young 
Tony: “I was convinced that little 
tear-a way jockey boy would end 
up in prison because of his envi- 
ronment and the pressures on 
him- In the early interviews I 
dwelled on that and he kept say- 
ing. Tm not like thaL’ I didn’t 
believe him and I was wrong.” 

Bruce, an almost saintly child 
of privilege, planned to be a mis- 
sionary. After distin guishing him- 
self at Oxford, Bruce taught 

mathematics in a poor pan of 
London — at Tony's old schooL 
His students are from Bangla- 
desh. Of all the subjects, only 
Bruce consciously set out to 
change his social class and suc- 
ceeded, Apted said. 

Two boys who fared better 
than might have been expected 
ended up leaving Britain. Paul, an 
orphan who vowed to remain a 
bachelor because a wife would 
force him to “eat greens," is a 
happily married, fairly prosper- 
ous bricklayer in Australia. Nick, 
bom on a Taim. or educated par- 
ents, longed to know “all about 
the moon.” He became a nuclear 

physicist and is an assistant pro- 
fessor at die University of Wis- 

fessor at the University of Wis- 

Nick's outspoken wife is one of 
what Apted calls the film's “re- 
flective girls." The wives of the 
film subjects are substitutes for 
the girls he wishes he had chosen 
in 1963. “We missed the boat by 
not choosing enough girls," Ire 
said. “Perhaps the most impor- 
tant cultural issue of our time is' 
that choice between working and 
bringing up a family ” 

At this point he said, “our four 
girls have only got bigger and ful- 

filled thdr biological function.” 
He added, however, that the 
women might “pay off* dramati- 
cally at 35. “As their children get 
older " he said, “they’re going to 
have to make serious choices.” 

The three working-class wom- 
en, Jackie, Lynn ana Susan, seem 
content at 28. Their marriages are 
solid, their childr en healthy and 
thdr homes better than the ones 
they grew up in. When the direc- 
tor a s ks if they think the rich have 
an advantage, one of them says: 
“We never think about it for sev- 
' en years until you come along and 
ask os again.” 

But it is the middle dass that 
intrigues Apted. an insurance in- 
spector’s son and a Cambridge 
graduate who drifted into film. 
“In England,” he said, “and to a 
lesser extent in this country, tire 
lower-middle classes are hurting. 
All you hear in America is' tins 
nonsense about Yuppies, but 
once you get out of Los Angeles 
and New York you find that these 
young people are being hung* out 
to dry. 

Clearly, two of his middle-class 
subjects, Neil and Peter, are hurt- 
ing. Both warned to be astronauts 
when they grew up. Both come 
from Liverpool 

Neil was among tire smartest 
and most charming of the chil- 
dren. He dropped out of college, 
suffered a series of nervous break- 
downs and became a red use. He 
roams the countryside in search 
of odd jobs. 

- Peter, another promising child, 
is an embittered schoolteacher, 
railing against tire Conservative 
government — “the most incom- 
petent, uncaring bloody shower 
we’ve ever had.” He admits to 
being lazy and his wife says be 
looks “on the negative side of life 
before the positive.” 

Apted worries about tire Peters 
of this generation. “That’s a voice 
you don’t often hear in the me- 
dia," he’said: “the voice of lower- 
middle-dass kids who grew up in 
the ’60s and 70s on the wave of 
tire brave new world, tire educa- 
tion, the hope and tire rest Those 
people now are stock. There’s a 
stagnancy about them and it’s 

There is a larger tragedy in tire 
film: Children who are bright, 
hopeful and spontaneous at 7 be- 
come disillusioned. 

“Yes, it is tragic,” Apted said, 
“but lhaf s life, isn’t it?* 

Sculpture by Max Ernst 

Sells at Record $962,500 

“Capricorn." a monumental 
bronze sculpture of a man with a . 

t ■«,. ■ j __ j - kw hie ride 

biilTs head and a siren by his side 
by Max Ernst, was sold Tuesday 
night at Sotheby’s in New York for 
5962^00, a record Tot a work by 
the German-born Surrealist. A 
pamting entitl ed “Summer Land- jf. 
scape”by the Austrian artist Egan 
Schiele fetched S2J3 million and 
“Baigneuses debout” by the French 
Impressionist Auguste Renoir was 
sold for SI .98 million. 


Mayor Edward L Koch of New 
York loved “Mayor," the musical 
bared on his autobiography, but it 
didn’t go aver so well with the real- 
estate tycoon Harry Hehnsley and 
his hold- tycoon wife, Leona. Koch 
told the cast “You read my book. 
You it ring. You’re woader- 
fuL” Hehnsley drew some of the,, 
most barbed jokes in tire off >€ 
Broadway production, a satirical 
look at life and politics in New 
York. He and his wife left during 


When Bob Hope arrived in the 
city where he was bom to celebrate 
the 82d anniversary of that event, 

- he said be fell right at home: Lon- 
don was full of Americans. Hope, 
whose family moved to Cleveland 
when he was 7. was the center of 
attention at a gala that drew edeb- 
.rities md tiffing Prince Ffafip, has-/ 
band of Queen Elizabeth II. Hope 7 
won’t actually be 82 until May 29. 
“He’s not quite made it — another 
10 days or so — but I think heU 
iriakg it,” tire prince said. “He’s a 
very generous, kind-hearted chap. 
And occasionally he’s quite fun- 
ny.” Hope was bom in utham in 
southeast London. The gala, which 
raised $28,575 (of tire Duke of Ed- 

inburgh’s Award Scheme for young 
people, attracted a cast including 
Debbie Reynolds, Brooke Striekh, 
Joiio Igjesias and Onritoa Heston. 

Pickle Packers International has 

mmvri President Ronald Reagan j> 
Pickle P er so n of the Year because * ■ 

Pickle Person of the Year because i 
he "has gotten into a lot of pkddes 
this year, bm he has gotten out of 
them,’ too." Bill Moore, executive 
vice presidetitof Pickle Packers In- 
ternational said in Chicago that 
the president would receive an in- 
flatable plastic pickle on May 23, 
the Erst day of International Pickle 



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