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London, Thursday, July 2$, 1994 

No. 34,652 

Competitors Decry EU Approval of $3.7 Billion Subsidy 

By Alan Friedman ‘ 

International ffanU Tribune 

PARIS — The European Commission's 
approval Wed n esday of a controversial 20 
bilhon French franc ($3.7 bflfion) govern- ‘ 
Mat bailout of Air France prom pted arp 
avalanche of criticism from the uLS. and 
British govanments, as well as from sever- 
al European ai rii n e Sn 
The decision also set the stage for legal 
challenges before, the European Court of 
Justice by Prime Minister John Major's 
government and airlines like British Air- 
ways and British Midland. - . . -- 

The three-year aid package is a dear 
victory for France, winch has been lobby- 
ing heavily in Brussels to win approval. 
Hie subsidy, which is the largest ever to be 
approved far a European airline, was at- 
tacked by critics who said it would distort 
competition and nm counter to efforts to 
liberalize the European airline industry. 

However, the European Commission 
imposed a number. of c mwiiifons , Among 
them is a requirement that the French, 
government lift restrictions on the number 
of flights by other European airitnes into 
Oriy airport, south of Paris. 

The government of Prime Minister 
Edouard Bafladnr also must promise to 
keep the Air France fleet stable at. 146 ; 

aircraft nmst not provide any of the mon- 
ey to Air Inter, the airline's domestic sub- 
sidiary, nmst press ahead with its previous- 
ly announced plans to sell its M6ridien 
Hmtrf rhaTn and to eventually privatize the 
debt-ridden state airline. 

While applauding the commission’s de- 
cision. Mr. Balladur said France would 
nonetheless bring its own appeal to the 
European 'Opart of Justice, against Brus- 
sels’ order that Air France repay 1.5 billion 
French francs of government aid it re- 
ceived in 1993. 

- The long-awaited Air France ruling — 
which was accompanied Wednesday by 
approval of a separate 545 billion drachma 
($2.27 biIlion) aid package for Olympic 
Airways of Greece — was lambasted by 

Airways of Greece — was lambasted by 
the U.S. transportation secretary, Federico 
Peaa, as “flatly unfair to competing, pri- 
vate airiines which cannot draw from the 
coffers of government.”' 

Britain’s transport minister, Brian Ma- 
wfamney, condemned the bailouts as dis- 
torting competition in the European air- 
line industry and said legal action by his 
government was a possibility. 

The chairman of British Airways, Sir 
Cohn Marshall, called the commission’s 
approval “deplorable” and said it repre- 
sented “a serums setback for the develop- 

ment of a genuine free market in air trans- 
port in Europe." 

KLM Royal Dutch Airlines said it was 
cansidermg legal action against the com- 
mission and termed the conditions im- 
posed on Air France “too mild.” The 
chairman of British Midi and. Sir Michael 
Bishop, said “the sheer size of this rescue 
package for Air France is grotesque." 

The European Union’s transport com- 
missioner, MarceJino Oreja. defended the 
Air France bailout as having “very strin- 
gent conditions" attached to it Mr. Oreja 
contended that any legal challenge would 
“not be successful," but be added tbal the 
commission would respect any ruling by 
the European Court of Justice. 

On the eve of the Brussels decision, Mr. 
Oreja received a two-page letter of protest 
from Mr. Pefia. In it, the U.S. transporta- 
tion secretary criticized the commission's 
approval of the aid for Olympic Airways 
and a recent 180 billion escudo ($1.1 bil- 
lion) package for Transportes Acreos Por- 
tugueses SA, known as TAP Air Portugal, 
as well as the Air France bailout. 

“Unprecedented billions in subsidy are 
being poured into the state-owned Europe- 
an amine industry,” Mr. Pena complained. 

See AIRLINE, Page 4 

Berlusconi’s Brother Is Ordered Arrested in Tax-Bribe Affair 

By John Tagliabue . . . . 

New York Tines Service 

ROME — Magistrates in Milan issued 
an arrest order Wednesday for the brother 
of Prime Minister Silvio Berlusconi in a 
widening scandal involving dozens of Ital- 
ian businessmen and government tax in- 
spectors accused of trading bribes for le- 
nient or fraudulent tax audits. 

The order for dm airest of Paolo Berlus- 
coni, 44, brought the investigation peril- 
ously close to the prime minister. 

News of the arrest warrant rippled 
through the Milan stock exchange and 
buffeted Italian financi al markets, sending 
the lira to a new low against the Deutsche 
mark. The index'd snares on the MQan 
market dosed down nearly 2 percent, ap- 
parently reacting to rumors that the prime 
minister himself was sought with an arrest 
warrant and that he had resigned. The 
government denied both manors. (Pa gel?) 

Confronted with the spread of the inves- 
tigation, the prime minister struck put in a 
speech Tuesday night against the Milan 
m ag istr a tes conducting the investigation, 
which has led to the arrest over the last 
several days of numerous senior business 
leaders, including the head of the tax de- 
partment of the prime minister’s own Fin- 
mvest corporation. 

Mr. Berlusconi, 57, accused the magis- 
trates of usurping political powers, though 
undected. . - 

Their investigations, be said, could be 
seen as a “devastating gutting action 
against society, tins time not political, but 


. An earlier wave of investigations in Italy 
had exposed systematic corruption among 
h^h-levd politicians taking bribes and re- 
ceiving undecla r ed donations to bankroll' 
their party machines. 

Mr. Berlusconi accused the magistrates 
of using preventive imprisonment to co- 
erce confessions from suspects, “things 
that were once seen only beyond the Berlin 

Paolo Berlusconi has been implicated by 
Salvatore Soasda, the head of Fininvest's 
tax department Mr. Sdasda told magis- 
trates that tax inspectors were paid bribes 
totaling the equivalent of $210,000 for fa- 
vorable audits of companies linked to Fin- 
invest including the Mediolanum insur- 
ance group, Viseotime, a television 
products company, and the Mondado ri 
publishing company. Mr. Sdascia said the 
money for the bribes was supplied him by 
the younger Mr. Berlusconi 
A lawyer for Paolo Berlusconi, Vittorio 
Viiga. said this evening that his client 
would turn himself in when details had 
See ITALY, Page 4 

Brussels polio: stopping Wednesday to check the identity of -a pfa 
taking a picture of a synagogue. Security was being increased at J 


Automakers Defector ( or Is He?) Claims North Korea Has 5 Bombs, 

|\Uplr tA By James Sterngold Myong Do, 36, may be the most da m a g i ng said, would give him the muscle he needs pressed deep skepticism after analyzinj 

York Tima Serna defector ever to escape from North Korea, to stand up to the United States. Mr. Kang's comments. 

The world automobile industry, , TOKYO — In a potentially saious His stoty could also spur a major reassess- “Some say North Korea is only using n n Washington, the State Departmen 

The world automobile industry, 
buoyed by economic recovery and 
cost-cutting, turned out a stream of 
upbeat financial news an Wednesday, 
led by Ford Motor Ctx’s report of a 
record quarterly profit of $1.71 bil- 

The Volkswagen group, Europe’s 
largest automaker, said its worldwide 
sales increased 7.8 percent to 1.726 
million vehicles in the first half of the' 

BMW reported a 14 percent in- 
crease in net profit to 290 million 
Deutsche marks ($182.4 million) 

But while Ford forecast a continued 
recovery, there was concern among 
analysts in the United States that ris- 
ing interest rates could aga in slow car 
sales. Ford stock fell 87-5 cents in late 
trading on the New York Stock Ex- 
change. (Page 9.) 


Tokyo Said to Weigh 
Loan to Ford Motor 

The government-controlled Export- 
Import Bank of Japan is negotiating a 
large, politically sensitive loan to Ford 
Motor Co, the Nihon Keizai Sirim- 
bun reported Wednesday. 

The loan which could amount to as 
much as S3Q0miliion, would be aimed 
at helping Ford to produce right-band 
drive autos for export to Japan, the 
newspaper said. That, in torn, could 
help reduce Japan’s huge trade sur- 
phis with the United States. (Page 9) 

By James Sterngold 

New Yen t Times Service 

TOKYO — In a potentially serious 
heightening of the tensions between South 
Korea and North Korea, the South Korean 
intelligence agency arranged an unusual 
press conference Wednesday for what it 
said was a high-level North Korean defec- 
tor who claimed that, despite repeated de- 
nials, the government in Pyongyang has 
five nuclear bombs and may develop five 
--mare soon. 

• - If the story presented by the National 
Security Planning Agency is true — and 
some experts harbored doubts — Kang 

Myong Do, 36, may be the most damaging 
defector ever to escape from North Korea. 
His stoty could also spur a major reassess- 
ment of the efforts to persuade North 
Korea to abandon its nuclear program. 

Mr. Kang was introduced at the press 
conference in Seoul as the son-in-law of 
the North Korean prime minister, Kang 
Sung San. In a session that ran nearly three 
hours, he said that North Korea’s new 
leader, Kim Jong H, sees the development 
of nuclear weapons not as a bargaining' 
chip, but as the only way to rescue his 
hard-line government in the face of a col- 
lapsing economy. Ten bombs, Mr. Kang 

said, would give him the muscle he needs 
to stand up to the United States. 

“Some say North Korea is only using 
the nuclear issue as a card," said Mr. Kang, 
who claimed his information came from a 
senior North Korean intelligence official. 
“I don't think so. There is a firm belief that 
the only way to sustain the Kim Jong U 
system is to have nuclear capabilities.'' 

There was no way to confirm the veraci- 

S r of the claims about North Korea’s nu- 
ear arsenal, which would contradict even 
the gloomiest estimates by Lhe Central In- 
telligence Agency, and some Western in- 
telligence officials and diplomats ex- 

pressed deep skepticism after analyzing 
Mr. Kang's comments. 

[In Washington, the State Department 
also expressed skepticism about the defec- 
tor’s allegations. Reuters reported. Mike 
McCurry, department spokesman, said, 
“The reliability of the information is some- 
thing that, frankly, we're not certain we 
can assess at this potm.” 

[“There is a debate within our own intel- 
ligence community about the exact param- 
eters of the North Korean nuclear pro- 
gram, but the information provided by this 

See KOREA, Page 5 

Rwanda Orphans: The Moans Are Better Than Silence 

Book Review 




page 7. 

By Jonathan C Randal 

Washington Fan Service 

NDOSHO, Zaire — As visitors walk 
down the dirt path leading from the busy 
paved road, it is the moaning that first 
strikes them, even before they see the 
4,000 Rwandan children on the volcanic 

It is the despairingsound of orphans 
and “unaccompanied" children, a relief 
organization label for those separated 
from their families. It is used even when 
everyone knows that in many cases the 
parents more than likely have died in the 
cholera epidemic that has ravaged 
Rwandan refugee camps here in the 
Goma region on Lake "Kivu. 

That odd noise is almost reassuring 

too chstnrbed by the toss of 
family or often too 01 from dysentery, 
cholera or intestinal worms to make any 
sound at alL 

The relatively healthy are protected 
from the African sun by lean-tos or ten is. 
The seriously sick are placed inside one- 

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••• „ '1 

V [ 

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['juJ Tuniki ' kfUKTw 

Rwanda children, sick with cholera, ad orphanage in Zaire. 

story buildings designated “The Hospi- 
tal," or, in more desperate cases, left 
naked outside on plastic sheeting to 
avoid soiling clothing. 

Only two weeks ago, SOS Village 
d’Enfanis was a well-run orphanage 
eight miles outside Goma for 40 children 
who had lost their families in ethnic 
conflict last year in the Masisi region of 

But since about 2 million Hutu fol- 
lowed their defeated government’s or- 
ders and fled into Zaire, those orphans 
have been moved and their places taken 
by waves of Rwandan children. 

Picked up along the roadside, often 
□ext to dead parents, the children were 
trucked in by foreigners, such as soldiers 
of the French Army or workers for the 
International Committee of the Red 
Cross and the United Nations Children's 

As the cholera epidemic spread, the 
orphanage’s population jumped, soroe- 

See ORPHANS, Page 4 




Flying Frugal Class , a New Trend in Business Travel 

The Dollar 











Newsstand Prices, __ 

BO hrofn...aa»Wn 

Oenwflrit^WD.iCr. gJ^.. lf ooQ Rials 

Finland — tlFJg. Qatar 8.00 Rials 

Glbraltar-...-£0-w ReP . irelandlRfii.® 
Great BritaimE 0.65 Saudi Arabia 9.00 R 


iSSrsiH. » 

Kuwait JOOFi/s Zimbabwe, nm 

By Adam Bryant 

New York Times Service 

NEW YORK — Matty US. companies, eager tq cut 
costs, are rebelling against the airiines’ 16-yeai policy of 
mairfng business travelers pay higher fares than leisure 
travelers. These companies are finding ways to save 
money, even if that sometimes mans inconvenience to 
their employees on the road. 

Apple Computer Inc* for instance, has set up a net- 
work that provides employees, working on computers at 
their desks, options for planning their trips, including the 
potential savings from discounts that the company has 
Deviated with certain airlines. 

The company’s department beads then evaluate em- 
ployees on how often they use those discounts compared 
with their Mow employees. In the first five months of 
this year, Appfe spent 25 percent less on travd than in the 
corresponding period last year, even though its employ- 
ees tome 14 percent more trips. 

Boeing Co. keeps for its own use tbe frequent-flier 
miles, its employees earn on business trips. The Dr Pep- 

per/ Seven-Up Companies is more generous. Last year it 
began offering to pay its workers to use their frequent- 
flier mileage for business trips, giving them S30Q for a trip 
that would have cost the company $600 or more. 

Dr Pepper/Seven-Up also encourages its traveling em- 
ployees to stay over on a Saturday night, so they can take 
advantage of discount fares requiring a weekend stay. 

On another frost, 17 companies, including General 
Motors and Merck, announced their support last month 
for a fledgling venture that plans to negotiate with the 
airlines for lower fares in exchange for sacrificing fre- 
quent-flier miles and eliminating commissions to travel 


The new aggressiveness by businesses could become a 
nightmare for the airlines, which have been plagued by 
tosses and are hoping for increased revenue from busi- 
ness passengers as the economy recovers. 

"Clearly, it’s a threat,” said David A. Swierenga. chief 
economist for the Air Transport Association, an industry 
trade group in Washington. “Business travel has always 
been the backbone of air travel, and if ure suddenly find 

that there is a big change in that part of our market, the 
airlines will have a hard time in the short term coming to 
grips with that." 

Many analysis say business travelers may no longer be 
the customers they were in the days when they traveled 
with little regard for cost. 

Indeed, many travel managers say that despite the 
moderately improving economy, they are more deter- 
mined than ever to squeeze costs out of their travel 

Georgia Pacific Corp.. for example, recently told its 
employees to avoid Delta Air Lines when possible be- 
cause Georgia Pacific believed it was not getting a large 
enough volume discount for a company its size. Georgia 
Pacific, which has about 50,000 employees, has also 
chartered buses occasionally to drive groups of employ- 
ees to meetings up to 300 miles (480 kilometers) away. 

The new frugality is not only affecting air traveL Many 
companies have told their employees to stay at less 

See FARES, Page 4 

Sabir r Pshn/ Renter* 

West Fears 
A New Wave 
Of Islamic 

Support of Iran Is Seen 
Behind Bomb Attacks 
In London, Buenos Aires 

By Joseph Fitchett 

International Herald Tribune 

PARIS — A series of attacks against 
Jewish targets in London and Argentina 
aroused fears Wednesday that a Middle 
Eastern terrorist wave w31 be unleashed in 
Europe and tbe Americas. 

Western and Arab specialists accused 
Iran of being behind the fresh spate of 
attacks. They said the operations, so dis- 
tant from the Middle East, probably re- 
quired the backing of a state's diplomatic 

But these officials expressed doubt that 
Iran could imagine that a terrorist cam- 
paign potxlti seriously disrupt the Arab- 
Isradf peace process, which now seems to 
have strong momentum. 

“Maybe in Tehran they're deluded 
enough to think that anti-Jewish terrorism 
will prompt Israel to back out of peace in 
the Middle East,” an Arab diplomat in 
Paris said. 

Sounding puzzled by the timing and 
political aim of the offensive. Western offi- 

fcradi officials accuse the British of laxity in 

protecting Jewish facilities. Page 2. 

dais, speaking on condition of anonymity, 
said they could not offer an estimate of its- 
extent and duration until the terrorists’ 
motives were better understood. 

The outburst came as a surprise after . 
several years when attacks by Islamic fun- 
damentalists and Arab extremists had 
been largely confined to the Middle East 

Prime Minister Yitzhak Rabin of Israel 
called for concerted “international action 
against Islamic terrorism." 

Throughout the European Union, gov- • 
emmenls said they were tightening securi- 
ty around their Jewish communities. 

“I wouldn’t feel safe in Europe for a 
while,” tbe bead of a pro-Israeli organiza- 
tion said. 

The London bombs caused only 20 inju- 
ries, “miraculously ” considering the size 
and placement of the explosives, according 
to a British official. A similar blast July 1 8 
at a Jewish community center in Argentina 
killed 96 people. 

And a bomb on a Panamanian airliner 
last week claimed 21 victims, most of them 

Israeli and other officials linked the out- 
break to resentment about the White 
House-sponsored ceremony Monday in 
which Mr. Rabin and Jordan’s King Hus- 
sein formally’ ended the long state of war 
between their countries. As a reaction, 
these officials said, urban violence was 
being spread in the West by Islamic terror- 
ists, a term usually used for Iranian- 
backed groups such as Hamas and Hezbol- 

The timing may simply be opportunis- 
tic, other sources said. “For a Jong time, 
we've been seeing Iran get the potential for 
this sort of campaign through their train- 
ing camps for terrorists in Lebanon and 
Sudan,” said Shoshana Bryea, special pro- 
jects head at the Jewish Institution for 

See TERROR, Page 4 

War in Bosnia 
Looms Again, 
Only Worse 

By Rpger Cohen 

New York Times Servin' 

PARIS — After several months of virtu- 
al status quo, tbe Bosnian war is about to 
change, probably for the worse. 

The changes, beyond a renewed Serbian 
siege of Sarajevo, are likely to include a 
substantially increased use of NATO air 
power against the Serbs, a partial with- 
drawal of the United Nations troops in 
Bosnia that are targets for Serbian reprisal 


and possibly a major battle between a joint 
Croatian- Muslim force and Lhe Serbs in 
the Posavina area of northern Bosnia. 

The scenario is chilling, and for this 
reason, American diplomats said, the 
United Slates, Russia, France, Britain and 
Germany are scrambling to salvage a take- 
ii-or-leave-it peace plan rejected last weds 
by the Serbs before their foreign ministers 
meet Saturday. 

Already, on Monday, British diplomats 
traveled to the Bosnian Serbs' self-styled 
capital in Pale and tried to do some coax- 
ing — to no avail. Russia is pressing Presi- 
dent Slobodan Milosevic of Serbia to fur- 
ther press his Bosnian Serb brothers into 

The message to the Bosnian Serb leader, 
Radovan Karadzic, is simple: Just agree to 
the map. which offers the Serbs 49 percent 
of Bosnia and the Muslim-dominated gov- 
ernment 51 percent, and everything else - — 
except the existence of Bosnia within its 
international borders — is negotiable. 

The Bosnian government has accepted 

See BOSNIA, Page 4 

Angered by 2d Blast, Israelis Criticize British Security 


By Richard W. Stevenson 

Yew York Tima Service 

LONDON — After a second car bomb explo- 
sion in less than 24 hours against a Jewish target 
here. Israeli officials voiced harsh criticism 
Wednesday of security precautions by Britain 
against what appeared to be terrorism by Islamic 
opponents of the Middle East peace process. 

There were questions whether the explosions 
were part of a conspiracy to attack Jewish inter- 
ests around the world, possibly with the support 
of Iran or some Arab country hostile to Israel 

The British Foreign Office said a caller pur- 
porting to represent Hamas, the radical Islamic 
group that operates primarily in the West Bank 
and Gaza, had asserted responsibility for a 
bombing Tuesday at die Israeli Embassy. 

The Foreign Office said the telephone call had 

come from the Middle East but added that it 
had not been made to British authorities. 

The Reuters news agency later quoted a 
spokesman for Hamas as denying that organiza- 
tion had been involved. 

The police in London said they were hunting 
for a woman who had parked a gray Audi sedan 
next to the Israeli Embassy in the Kensington 
district just after noon Tuesday, moments before 
a bomb exploded, injuring 14 people and c au s in g 
extensive damage to the embassy and an adja- 
cent apartment building. 

The police woe also combing the wreckage of 
a second car bomb, which went off early this 
morning in North London outside the headquar- 
ters of a Jewish fund-raising organization, Israel 
Joint Appeal. 

The explosion, at 12:46 A.M., slightly injured 

five people »nH apparently occurred just minutes He did not Angle out any nation.' But on 

r r , , .« V ■ j lllimrtar Vlpilxit Dakin isf 1«M»1 

after the car had been parked, the police said 
‘After several years, Middle 

ddle Eastern terrorism 
is again being played out on the streets of Lon- 
don," said Sir Paul Condon, the metropolitan 
police commissioner. 

The bombings in London followed an attack 
on a Jewish community center Iasi week in Bue- 
nos Aires that killed about 100 people. 

David Veness, the assistant police commis- 
sioner for special operations at Scotland Yard, 
said it was “prudent” to assume the two bomb- 
ings in London were linked In both cases, the 
cars carried bombs containing 20 to 30 pounds (9 
to 14 kilograms) of explosives. 

Mr. Veness stressed that it would be difficult 
for people to acquire and move large quantities 
of explosives in Britain. 

Tuesday, Prime Minister Yitzhak Rabin of Israel 
said he belie 

ieved Iran might have played a role in 
the attacks. 

In an interview, the deputy bead of mission’ at 
the Iranian Embassy in London, Mohammed 
Safari, denied that his nation had anything to do 
with the attacks. 

“The Islamic Republic of Iran does not believe 
in acts of violence or terrorism whatever the 
cause,” Mr. Safari said. “Iran has not been 
directly or indirectly involved.” 

Scotland Yard's anti-terrorist branch had im- 
posed parking restrictions and . 
around a few buildings housing Israeli and Jew- 
ish organizations in London late Tuesday. . 

“It's really a true blunder of the locals here,” 
Brigadier General Azriel Nevo, the Isradi mili- 
tary attache, told Israeli radio. 

54,000 Muslims Flee India Violence 

RARPFTA India (Reuters) — More than 54XXXJ people ha w £ 

state of Assam since Bodo v 

tribal suntan 

_ jk - w « k “ d - 


state within India, The militants am attacking Mu^n»*«fienfflr 
arrived from Bangladesh, accusing them of takmg over tribal land. 

_ M • ■ i 9 

Cambodia Rejects 'Chinatown’ Offer 

Tuesday. . mninw /a * n»\ _ r*nmivwiia has refused an applica 

Jews in Argentina 
Face a New Enemy 

Foreign Terrorism Replaces 
Local Neo-Nazis of the 1950s 

By James Brooke 

Sew York Times Service 

Korin looks back with almost a 
touch of nostalgia to the sim- 
pler days of the 1950s. when he 
and other Jewish teenagers car- 
ried clubs and bicycle chains to 
defend synagogues from gangs 
of Argentine neo-Nazis. 

“Then, we knew who are ene- 
mies were, where they went to 
university, which cafes they fre- 
quented,” Mr. Korin, now a 
principal of a Jewish school re- 
called over tea. “Now, we are 
up against highly sophisticated 
groups. International terrorism 
is now installed in Argentina." 

Workers rolled oil drums in 
front of the school; filled with 
sand, the drums would form a 
Beirut-style defense against car 

The truck bombing here last 
week at a Jewish cultural center 
left about 100 dead and 231 
wounded and tore open a co- 
coon of security for Latin 
America's largest Jewish popu- 
lation. Long ago. this communi- 
ty of 250,000 people had be- 
come accustomed to low-level 
harassment, from spray-paint- 
ed swastikas to homemade 
noise bombs. 

“Before it was child’s play — 
with clubs or spray paint,” said 
Oara Jaia de Rubin, principal 
of another Jewish school “But 
something has changed. Now- 
we are going to incorporate 
these new measures into our 

She listed new measures to 
protect her school: metal detec- 
tors, electronic burglar alarms, 
television cameras monitoring 
the street and, to discourage 
bomb threats, answering ma- 
chines to record calls. 

Telephone bomb threats 
forced the temporary evacua- 
tion Monday of the Israeli Em- 
bassy and the Argentine He- 
braica Society, a major cultural 

With school classes starting 
this week after the end of the 
Southern Hemisphere winter 
holidays, federal police agents 
are providing protection to 283 
Jewish institutions in greater 
Buenos Aires. 

At the center of the security 
operation are children like Ju- 
lian Rotenberg, a nursery 
school pupil. 

“All week long, he has been 
asking things like: 'What is a 
bomb? Why are there bad peo- 
ple?' ” Judith Rotenberg said, 
holding the hand of her 2Vi- 

Upstairs, a second-grader 
named Carolina drew her re- 
sponse to a class assignment: 
depict your wish for the second 

“I wish that no more bombs 
will be placed, in schools or 

anywhere else,” she wrote next 
to a drawing of a high-rise city 

The building was marked 
AMIA — short for Argentine 
Jewish Mutual Aid Association. 
In each window there was a 
face. Next to die building was 
an upside down car and a red 
stain marked PLAF — Spanish 
for BOOM. 

“The fear expressed by the 
children is: Where will the next 
bomb be?” Mrs. Rubin said. 
“Even the teachers have said 
that they are afraid to work in a 
Jewish school.” 

Despite the fears, principals 
of Jewish schools said that at- 
tendance Tuesday was near 
normal ranging from 87 per- 
cent to 99 percent. 

“There was some hysteria in 
the family, but most of us are 
for continuity,'' Enrique River 
said as he waited to pick up his 
3-year-old grandson. “We are 
not going to show any weak- 

Indeed, many Argentine Jews 
have dug in their heels. 

“My husband and I had no 
doubt about continuing to send 
our son to a Hebrew school” 
Mrs. Rotenberg said as security 
guards checked purses of moth- 
ers picking up their children. “If 
we had to renounce our free- 
dom to choose our school, we 
would have to go." 

Although some-, Argentine 
Jews trace their ancestry here 
back a century, many complain 
that they are still seen as outsid- 
ers by an overwhelmingly Ro- 
man Catholic population. 

Illustrating this paradox, the 
appointed mayor of Buenos 
Aires, Saul Bouer, is Jewish, but 
25 percent of respondents to a 
recent high school survey said 
that Argentina should "throw 
out” Jews. 

“Don’t make us feel like for- 
eigners in our own country,” a 
Jewish newspaper. Nueva Sion, 
appealed Monday in an editori- 
al addressed to President Carlos 
Saul Menem. 

2 Iranians Questioned 
In Buenos Aires Blast 


tine investigators Wednesday 
were questioning two Iranians 
in connection with a bomb blast 
at a Jewish center here last week 
in which at least 96 people were 
killed, local media said. 

Radio stations quoting judi- 
cial sources said an Iranian 
woman was detained Tuesday 
at the airport trying to leave the 
country, and a man was also 
being questioned. 

Stiff Sentences Urged for Neo-Nazis 


BONN — Chancellor Hel- 
mut Kohl's government said 
Wednesday that neo-Nazis who 
went on a rampage at the World 
War □ Nazi death camp at Bu- 
chenwald last weekend must be 
punished severely. 

The U.S. Embassy heresaid 
Washington would fully sup- 
port Germany's efforts to pun- 
ish those responsible for rightist 
violence and bad offered help to 

local authorities in pursuing the 
Buchenwald suspects. 

“The law must be absolutely 
clear here," Chancellery Minis- 
ter Friedrich Bohl said. “The 
criminal attack by rightist ex- 
tremists on the Buchenwald 
camp memorial calls for swift 
and severe punishment” 

Police action against the rioters 
could have been taken more 
quickly if the new laws been in 
place, he said. 

Fays NunMiucSAgcncc Fnacc-Pn-or 

Yasser Arafat, hand-in-hand with the head of the Gaza municipality, Oun Shawain, waving to a crowd Wednesday. 

PHNOM PENH (AFP) — Cambodia has refused ^jrapfan 
(ion from a private mainland Chinese company tobuiW a 52 
Wficm “Chimttown" outside Phnom Penh, government offraals 
said Wednesday. Finance Minister Sam Ratflsy said,.“They want- 
ed: to create a sort of state within a state. It was a Farcical 


200 000 Chinese immigrants. L 

A government official said he believed the company hoped to 
raise the necessary capital overseas but added that details were 
“not very dear” »nd the whole project was ^YSty strange. ■ A 
Embassy spokesman said the embassy was not aware of 
{fra «vr tic hf«n<i “bat this fafld of proposal is not 

p table,” 


ISSy spoSESiumi aaiu lue . — 

or its plans “but this kind of proposal is not 

Reactor Stalls Estonia-Rnssia Pact 

MOSCOW (Reuters) — An agreement between Russia and 
Estonia on a withdrawal of Russian troops hit a snag Wednesday 
when negotiators from the two countries were unable to complete 
an accord on the dismantling of a R u ssian nuclear reactor. 

Irei V. 

UN Said to Rebuff Taiwan on Status 

UNITED NATIONS (AF) — Secretary-General Buiros Burros 
Ghaii will not support observer status at the United Nations for 
Taiwan, according to his spok e sm an . 

C hina is strongly opposing any effort to give observer status to 
Taiwan, which was ousted from the United Nations in 1971 in 
favor erf Beijing. Until then,' Taiwan held the Chinese seat and bad 
veto power on the Security Council as a permanent member. 

Joe Sills, the spokesman, said during his daily press briefing 

the Chinese chief delegate, Li 

that Mr. Butros GfaaH had met 
Zhanring, over concent that an Asian newspaper had reported the 
secretary-gcneralhad endorsed observer status for Taiwan. Mr. 
Sills said the report was “erroneous.” ' 

Aides Silent on Mitterrand Health 

Mideast Peaces Is Arafat Odd Man Out? 

Hussein , Robin and Clinton Are at the Center of Attention 

By Thomas L. Friedman 

New York Tima Soviet 

WASHINGTON — The ease with 
which President Bill Clinton, Prime Min- 
ister Yitzhak Rabin of Israel and King 
Hussein of Jordan got along these last 
few days was palpable. They wore their 
respect for one another on their sleeves, 
bantering freely, shaking hands with real 
warmth, and dearly enjoying doing busi- 
ness as equals. 

And that could be really dangerous — 
especially for Yasser Arafat 

It could be dangerous because the ma- 
jor problems to be solved are not be- 
tween King Hussein and lsraeL They are 
between Mr. Arafat, the Palestinian 
leader, and lsraeL 

But there is going to be an enormous 
temptation for Israelis and Americans, 
now that they really have a choice, to 
gravitate toward King Hussein, who. Is- 
raeli officials say bluntly, is everything 
Mr. Arafat is not — organized, authori- 
tative, dependable, straightforward, effi- 
cient, regal and discreet. 

No wonder that, after 10 months of 
dealing with Mr. Arafat, a few Israelis 
could be heard to say, “Wouldn’t it be 
nice if we could settle all of this with 
King Hussein?” 

It is no wonder that Mr. Arafat and his 
aides in Gaza looked upon ail the hand- 
shaking with a good deal of suspicion. 
Israel and Jordan now are like the two 
arms of a nutcracker. Mr. Arafat is the 

This could get interesting. 

The accoTd between King Hussein and 
the Israelis “has revived a lot of fanta- 
sies" that maybe Israel can curtail Mr. 
Arafat's influence over the rest of the 

has to stay at the personal level because 
otherwise they are courting disaster. If 
there is a struggle for control of the West' 
Bank and Israel backs Jordan indirectly, 
that could undermine many things.” 

In fact, the struggle has already resur- 
faced. History and geography guaran- 
teed that 

Israel Jordan and the Palestinians 
have been tugging and pulling at each 
other since the early part of this century. 
Mostly, it has been Jordan and the Pales- 
tinians trying to dominate each other in a 
competition for control of Jerusalem and 


West Bank by helping King Hussein re- 
assert at least some of his authority there. 

the West Bank. Israel watched from the 
sidelines, occasionally giving a boost to 

As of Monday, this three-way wres- 
tling match has taken on a new dimen- 
sion. Now all three parties have open 
contacts with one another, and Israel is 
holding the two things that both Jordan 
and the Palestinians want most — domi- 
nation of the West Bank and control of 
the Jerusalem Muslim shrines. 

How Israel uses its power to reward 
either King Hussein or Mr. Arafat in 
their pursuit of these two enormously 
important assets is going to be at the core 
of Arab-Israeli politics. 

And Israeli officials say they must be 
careful not to let the competition get out 
of hand, or it may blow up in their faces. 

Many, including top U.S. officials, 
would agree that it is too late for the 
“Jordan option,” which meant turning 
control of the West Bank and the Mus- 
lim shrines in East Jerusalem back to 
King Hussein, who lost them in the 1967 

come out of the cold the differences 
between him and Mr. Arafat could make 
it increasingly tempting for Israel to tiy 
to restore at least some of Jordan’s influ- 
ence, in the West Bank and East Jerusa- 

Israeli and American officials say they 
have no intention of doing that, but 
capabilities create intentions. And King 
Hussein's capability fa- maintaining or- 
der and running a country are for the 
moment so vastly superior to Mr. Ara- 
fat’s that it could give rise to a whole new 
set of unintended intentions between 
him and Israel 

The first sign of that came on Monday , 
when Israeli officials inserted in the 
Washington Declaration a paragraph 
stating: “Israel respects the present spe- 
cial role of the Hashemite Kingdom of 
Jordan in Muslim holy shrines in Jerusa- 
lem. When negotiations on the perma- 
nent status will take place, Israel wifi give 
high priority to the Jordanian historic 
row in these shrines.” 


said Stephen Cohen, director of the 
Montreal Center for Middle East Peace 
“If the Israelis just want to avoid the 
Palestinization of the Muslim holy 
places in Jerusalem, that is a containable 
issue,” be added. “But if it is the full- 
blown fantasy — that the Palestinians 
are not going to lx in control of them- 
selves in the West Bank — then we are 

Thirty years or so ago, before the cre- 
ation of the Palestine JUberation Organi- 

zation, it might have been possible. But it 
is not possible anymore. King Hussein 

has formally renounced any responsibO- 
: West Bank and the Gaza Strip. 

heading for big^trouble. 

“Everyone likes Hussein. He is an 
enormously decent man. But that feeling 

ityforthe 1 
A vast majority of Palestinians there 
under the age of 30 have never known 
Jordanian rule and have allegiance only 
to Mr. Arafat, the PLO or the radical 
Islamic group Hamas. 

Nevertheless, now that the king has 

Isradi officials said this was a direct 
•message to Mr. Arafat not to even think 
about trying to assert control over the 
shrines, which he claims now fall under 
the realm of his new Palestinian Nation- 
al Authority. 

King Hussein and Prime Minister Ra- 
bin barely mentioned the Palestinian 
people when they spoke to Congress, and 
they spoke of the Arab-Israeli conflict as 
though it were a Jordanian-lsraeli con- 

“The great irony of all this,” said an 
Israeli historian, Meron Beavenisti, “is 
that it was Arafat’s decision to make 
pace with Israel that paved the way for 
this Israeli- Jordanian rapprochement, 
which is going to squeeze him in the 
middle. Hussein never could have come 
to Washington had Arafat not come 
first, and now Arafat is going to pay the 
price for that.” 

Whether it is a big price or a s mall 
price, is not dear wiO be dear in a 
few years, when Mr. Arafat is either 
president of a Palestinian state encom- 
passing the West Bank and the East 
Jerusalem holy places — as he sees him- 
self — or mayor of Gaza, as his critics 
have already branded him. 

PARIS (AFP) — Government ministers 

juestions on 

President Francois Mitterrand's health on Wednesday after he 
chaired his first cabinet meeting since an operation for prostate 
cancer July 18.’ 

Thegovennnent spokesman. Nicolas Sarkozy, said Mr. Mitter- 
rand, 77, had run the meeting “exactly as he has done for the past 
17 months.” since the conservative govonment of Prime Minister 
Edouard BaDadur came to power. 

“It is not up to me to pass judgment” on the president's form. 
Mr. Sarkozy said. Asked how the meeting went. Foreign Minister 
Alain Jupp6 said: “Veiy good. As usual” v 

Spanish Fishermen Maintain Cordon 

GUON, Spain (AP) — Spanishfishennen continued Hockad 
ing Spanish and Free 

reach ports Wednesday on the' Cantabrian 
coast,* prompting a jam-up of merchant ships on both sides of the 
protest line. 

More than 200 fishing boats had dosed off ports from Gybn in 
Spain to the French port of Hendaye, with some fishermen using 
their time manning the blockade as. a chance to repair or dean 
tbeir vessels. 

Port authorities along the coast reported no serious violence. 
The blockade began Tuesday when the boats gathered to protest 
what Spanish fishermen say is European Union laxity in enforcing 
regulations prohibiting the use of long drift nets for tuna fishing. 


U.K. Sees Better Security in Egypt 

CAIRO (Reuters} — The British government believes the 
security situation has improved in Egypt, where two tourists were 
killed and about 30 wounded in attacks by Muslim militants in the 
two years up to March this year. 

. “The Last incident of concern was in March and this speaks for 
itself,” said the British assistant foreign secretary, Tony Baldry, in 
Cairo at the end of a three-day visit. A German tourist was killed 
in March after gunmen fired on a Nile chriser. 

Mr. Baldry said he was “greatly impressed” by the measures 
taken by Egypt to protect tourists. The British government sligbt- 
. Iy amended its travel advice for Egypt earlier this month, deleting 
the sentence “Farther incidents must be expected in Cairo and 
elsewhere." But it still, urges visitors to avoid the Assyut area in 
southern Egypt, where Islamic rmHtanis have been most active, 
Americans in Algeria sboM exercise “utmost precaution,” the 
U.S. Embassy warned in Algiers. It said the United States has 
received information indicating that Americans may be targeted 
for attack a kidnapping in Algeria. . (Reuters) 

A forest fire that raged for two days in a World War I battle- 
ground in Turkey’s Gallipoli Peninsula killed a fire chief and 
chaired several war monuments before it could becontained early 
Wednesday. Officials said the fire destroyed up to 5,000 hectares 
(12,355 acres) of pine forest < Reuters t 

A Danish car feny with 4U passengers on board was undertow 
trom the Jutland Peninsula to Zealand Island on Wednesday after 
afire caused its engine to fafi. No one was injured by the fire on 
the Pnnsesse Anne-Marie.; (Reuters) 

‘““.Gypsies woridng as pickpockets, the 
police m Nice are patrolling the Promenade- dt$ Anglais on 
horseback, m electric can and disguised as bike riders. TWsaid ‘ 
they do not act against the children but their parents. (AFP) 

r “ **■ frifis” airline was a 

Mure, wfllrclmiachluwryfUghts between Los Angeles and New 
r«k on Sept 8, and add direct service to Las Vegas from those 
ettm ' CAR) 

Foreign Minister Andrei V. Kozyrev of Russia was quoted by 
the Interfax news agency as saying that the delay was technical 
and that the Estonian side needed, to consult further on the text of 
the agreement . . ' * 

As part of a package negotiated in a five-hour meeting Tuesday 
between Presidents Boris N. Yeltsin and Lennart Men. Russia 
promised to dismantle a nuclear reactor at its Paldiski naval base 
on the Baltic. 



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Page 3 

Fear ofaKillerin Their Midst Haunts Scientists at Rockefeller University 

By John J. Goldman ■ 

Los Angela Tuna Service 

. NEW YORK — Over the years, sties- 
t|5ts at Rockefeller University — one or 
the world’s pre-eminent research institu- 

• turns — have identified DNA. Theyfound 
‘ the first cancer virus. They ma^^g M to 
-grow the malaria parasite and they wres- 
tled with souse of biology’s most complex: 

Now, they are trying to solve thedr most 

* 0 8661115 10 be trying- 

The police disclosed Tuesday that some- 
- one at the campus along the East River in 
" Manh attan put poison in coffee and tea, 
deliberately left gas jets on in a molecular . 

biology laboratory, set a fire and sent 
threateni ng letters to two women among 

7 The .events over five days in ting, first 
d eta ile d in the Tuesday issue of The Wall 
' Street Journal, have spread fear throw' 
portions of the university, which over u 
years produced 19 Nobel Prize winners. 

Laboratory workers have taken lie de- 
tector tests and have been questioned by. 

the police. 

"We believe it’s a disgruntled employ- 
ee,” said John Hill, chief of detectives in 
Manhattan. “We’re working on the theory 
it’s jealousy of these two women/' 

“We have a suspect in mind,” he added. 
Detective Hill said the letters demanded 

the resignation of the two women. “It's my 

entify i 

Events at the university, which was 
founded by John D. Rockefeller in 1901 
after his first grandchild died of scarlet 
fever, center on the molecular biology lab- 
oratory headed by Professor Robert 

The police said that on June 6, a group 
of workers in the ISth-fioor laboratory 
became ill after dr inking tea and coffee. At 
first, the scientists believed cream or per- 
haps the sugar, which bad tasted bitter, 
had been tarn ted in some manner. But as 
the illnesses worsened and events pro- 

it became clear the beverages had 

On June 7, gas jets were left on in 
Professor Roeder's laboratory, which 
could have caused an explosion. Workers 
turned off the valves and nothing bad 

On June 8, a small fire was discovered in 
a closet. Paper towels were smoldering and 
it was classed as arson. Two days later, 
letters containing death threats to the two 
scientists were found in a women's res- 

Two more letters were sent to Professor 
Roeder and to Rockefeller University offi- 

“They were threatening in nature. They 

wanted them to quit,” Detective Hill said- 
The letters also contained chilling news for 
the biologists, all of whom had recovered 
from the tainted brew. 

The letters confirmed that the lea and 
coffee had been poisoned with sodium 
fluoride, which in greater concentrations 
could kill. Sodium fluoride was one of the 
chemicals stocked in the molecular biology 

Detective Hill said investigators be- 
lieved the poisoning was as a warning. 
“There were many chemicals that could 
Jab you instantly ui that lab,” he added. 

For more than a month, the police and 
Rockefeller University security officials 
conducted a quiet investigation. That be- 

came increasingly difficult as word or the 
troubling events at Rockefeller spread to 
other research institutions. 

Officials at Rockefeller University said 
security precautions had been increased at 
Professor Roeder's basic genetics labora- 
tory, where 40 scientists and technicians 
work. A spokesman declined to describe 
the precautions. 

Detectives believe professional rivalry is 
behind die attacks. Although it is set in a 
quiet campus with trees, lawns and a tennis 
court on the Upper East Side, Rockefeller 
University is a highly competitive place. 
There are no undergraduates, only gradu- 
ate students. Pressure to produce is in- 

Away From Politics 

•How was a man sought in 
connection with the World 
Trade Center bombing mut- 
ed a visitor’s permit to Cana- 
da? Immigration officials 
there want to know. The map 
— Charles Lee Knox, also 
known as Mahmoud Abbas' 
and Mahmoud Abbas 
Amonzi — is being held in 
custody pending a deporta- 
tion hearing. 

• A propane track crashed 
into a highway abutment in 
Write Flams, New York, kill- 
ing the driver and i gniting in- 
tense fire ball* that bunted 
nine houses and injured 24 

• One in fire Americans 
drinks water that is inade- 
quately treated for toxic 
chemicals, bacteria, parasites 
and other pollutants, accord- 
ing to an examination by the 
Natural Resources. Defense 
Council of nationwide com- 
pliance with federal drinking 
water standards. 

• An explosion at a rocket en- 
gine testate in southern Cali- 
fornia killed two workers and 
seriously burned a third, un- 
leashing flames that scorched 
15 acres of brush. The Sinri 
Valley workers were prepar- 
ing chemicals for a test at the 
time of the blast, a company 
spokesman said. 



Ktaran Dofacny/Rentcn 

sidering her plight Wednesday after a London court 
ordered her and another ex-follower of Bhagwan Shree 
Rajneesh extradited to the United States. They face 
charges of conspiring to murder a state's attorney. 

Clinton’s Presidency: Images for a TV Generation 

By Michael Wines 

New York Tima- Service 

Clinton’s presidency has always 
spun from its red so fast, with 
scenes of achievement and 
grace swiftly eclipsed by scenes 
of dishevelment and awkward- 

So it did not seem at aD odd 
to see both cm the screen at 
once, separated only by the 
dick of a tuner. 

Thane was Mr. Clinton in the 
White House between Yitzhak 
Rabin and King Hussein, bask- 
ing in his second Middle East 
diplomatic triumph, hearing 
Jordan’s leader say he was 
“proud to have you as our part- 

And there — click — was Mr. 
Clinton’s counsel, Lloyd N. 
Cutler, parked before a micro- 
phone, telling a House commit- 
tee investigating Whitewater 

that administration officials 
had done nothing wrong, really, 
but that they shouldn't have 
done it. 


This ht 

to Mr. Clinton’s 
— George Bush threw up on 
television, after all. at the cli- 


max of a Tokyo trade confer- 
ence — but not since William 
Henry Harrison caught pneu- 
monia at his inauguration and 
died 32 days later has presiden- 
tial triumph seemed so dosely 
dogged by fate. 

Some of it is fate, and a past 
that refuses to stay in the past 
But a large measure is rooted 
elsewhere, in Mr. Clinton’s un- 
made-bed style of policy-mak- 
ing, in his and his staffs new- 
ness to governing and in the rise 

of tabloid-style news, both in 
print and on television. 

Together, they are eroding 
not only the president’s politi- 
cal and moral standing, but the 
polities he is trying to promote. 

“A cloud does tend to be 
there that’s always following 
him through the fields,’' a 
White House offidal said this 
week, attributing much of the 
robJero to “naTvet£ and bu- 



in this case; the Whitewater 
cloud fogs not only the Middle 
East accord but also the last- 
minute drive for health legisla- 
tion, perhaps the central issue 
of the Clinton presidency. 

President Clinton’s Europe- 
an summit conference this 
month, essentially a bid to es- 
tablish his foreign-policy cre- 
dentials, was negated by his ad- 
ministration's foundering Haiti 

In January, the naming of a 
Whitewater special counsel 
drowned out the signing of a 
nuclear-arms accord in 

The president’s first State of 
the Union Message, a boonring 
call for fiscal restraint and wise 
investment, was wiped from 
memory weeks later when the 
White House’s first budget bill 
— a S20 billion package of 
“stimulus” spending — was de- 
nounced as pork, and rejected. 

Some White House officials 
suggest there is little the presi- 
dent can do about a victory-loss 
cycle they say is dictated by the 
news media and his critics and 
that, in effect. Mr. Clinton is a 
victim of his own good inten- 

But if critics celebrate it and 
the press spreads it. much of the 
d oud that follows Mr. Clinton 
is a product of the process that 

got him to the White House to 
begin with. 

Political parties no longer vet 
candidates or even choose 
them; increasingly, the candi- 
dates rise from outside Wash- 
ington on the skill of commer- 
cials and press relations as well 
as ability. 

Mr. Clinton is the latest mod- 
ern master of the campaign, 
and his political aides once 
boasted of using the instant 
technology of modem news 
coverage during his race to bat 
down stories about Whitewater 
and his sex life. 

“He procrastinates,” said 
Stephen Hess, the expert on 
presidents at the Brookings In- 
stitution, “and things catch up 
with him. He’ll let something 
slide, and then he throws the 
energy, the intellect and the 
power of the presidency into it. 
It's been a high-wire act for one 
and a half years.” 

Future Fight: Pentagon Plans an H.G. Wells Defense 


Senate Wbaeks at Art Funds Sparing Ne Expense on Memos 

WASHINGTON — The Senate has ap- 
proved bv voice vote an appropriations bill 
that would cut the budget of the National 
Endowment for the Arts by 5 percent, or S8_5 
million, in the 1995 fiscal year. The endow- 
ment’s budget for .the 1994 fiscal year is $170 

Because the House version of the bill calls 
for a 2 percent cut. a House-Senate confer- 
ence committee must produce a compromise 

The S percent cut was recommended by the 
Senate Appropriations Committee, whose 
chairman, Robert C. Byrd, a West Virginia 
Democrat, has expressed dismay at a widely 
publicized performance in Minneapolis by 
Ron A they that was sponsored by the Walker 
Art Center and received endowment money. 

As part of his performance, Mr. Athey 
used a scalpel to inscribe ritual patterns in the 
back of a fellow artist infected with the AIDS 
virus. He then blotted the designs with pieces 
of towel paper and hung them over the audi- 
ence on a clothesline. 

Arts administrators have described the 
Senate’s proposed budget, reduction as a seri- 
ous blow to the endowment, especially since 
it would reduce by 40 percent the budgets of 
three specific programs: visual arts, perform- 
ing arts, and presenting and commissioning. 
In his remarks to the Appropriations Com- 
mittee in late June, Mr. Byrd said he wanted 
to take aim at the endowment programs, 
'‘which have been at the center of recent 
controversies” During Senate debate on 
Monday, he said his personal preference had 
been to impose even deeper cuts. (NYj ) 

' WASHINGTON — This just in from the 
budget-conscious State Department; A re- 
cent memo from the office of the undersecre- 
tary for international security affairs alerted 
people, that the office “now has the new 
stationery for Lynn E. Davis, with her new 
title of Under Secretary of State for Arms 
Control and International Security Affairs.” 
Her old title, changed a few months ago, did 
not have the words “arms control” in it. 

Stationery notwithstanding, it is not dear 
how many arms Ms. Davis actually controls. 
.Word was that she was backing the attempt 
to kill the independent Arms Control and 
Disarmament Agency. But the agency man- 
aged to survive and to keep a substantial 
chunk of the arms control portfolio. 

Moreover, the hottest action now is the 
North Korean nuclear problem, something 
that falls to the assistant secretary for politi- 
co-military affairs, Robert L. Gallucci, said 
to be a rising star with this administration. 
Technically, Mr. Gallucci reports directly to 
Ms, Davis. . 

A source says there were oral instructions 
"from Ms. Davis’s office to discontinue using 
the old stationery. { WP) 


"No American, including the president of 
the United States, is entitled to information 
on the development of criminal referrals,'* 
Representative Jim Leach of Iowa, ranking 
Republican on the House Banking Commit- 
tee, at the opening day of the Whitewater 
hearings. ( WP) 

By Art Pine 

Lot Angeles Times Service 

ber the 1991 Gulf War? Preci- 
sion-guided bombs that were 
able to fly into a tiny chimney? 
F-117 Stealth fighters that 
could penetrate Iraqi airspace 
undetected? A satellite tracking 
system that helped pinpoint 
Iraqi positions? 

Weil, you haven’t seen any- 
thing yet Pentagon planners 
say that as a result of such 
flashy new technology, the 
world may be on the verge of a - 
revolution in the way the major 
powers fight wars — possibly 
the biggest such advance in war 
fighting since World War IL 

Sparking the revolution is the 
ndhtaiy’s increasing ability to 
use computer links, communi- 
cations systems, satellites and 
sensors to bolster dramatically 
both the range and the accuracy 
of conventional weapons such 
as bombs and missiles. 

This means U.S. troops in- 
creasingly will fight from longer 
distances, not moving into a 
battle zone until most weapons 
there have been destroyed. 

At the Defease Department, 
five task forces are studying the 
new ways of warfare. Both the 
Defense Department and some 
defense-oriented consulting 
firms have begun conducting 
classified war games designed 
to probe the capabilities of the 
new technology. 

Officials predict that within a 
few years, the military will be- 
gin replacing its current way of 
war righting with futuristic 
techniques that would have 
been inconceivable even at the 
start of the Gulf War. 

“We’re just at the beginning 
of kind of fully exploring and 
understanding what they really 
might be,” said Andrew W. 

Marshall, head of the Defense 
Department's Office of Net As- 
sessment, a top-secret Pentagon 
research body charged with in- 
vestigating such questions. 

Although Mr. Marshal] re- 
fused to go into details, the 
changes being considered 
would effectively junk much of 
today’s war-fighting doctrine 
and substitute new forms of 
Military tactics based on the im- 
proved technology; 

• Instead of sending huge 
armies to the battle zone, the 
Pentagon will deploy its forces 
at a distance, using long-range, 
precision-guided missiles that 
will replace face-to-face com- 
bat. Navy warships far out at 
sea might be called upon to at- 
tack enemy tanks ashore. 

• Both missile and artillery 
fire will be targeted by space- 
based, intelligence-gathering 
satellites, which would not only 
track enemy troops and weap- 
ons but also direct UJS. fire- 
power beyond the horizon and 
even assess the damage once the 
American barrage bad ended. 

• Staples of today's armed 
forces — such as tanks, manned 
bombers and aircraft carriers — 
will become obsolete, to be re- 
placed by “supersmart” mis- 
siles and high-speed land vehi- 
cles. If ground troops are 
needed, they will be sent on 
supersonic transport planes. 

Moreover, U.S. forces will be 

Basque Is Slain as Informer 

Agence Fnmce-Presse 

A businessman accused of be- 
ing a police informer, Jose Ma- 
nuel Olarte, was sbot in the 
head and killed here early 
Wednesday in an attack blamed 
on ETA Basque separatists, the 
police said. 

able to launch simultaneous diers will be kept abreast by says warfare will soon become 
sorties against massive numbers direct satellite links. **a competition between hiders 

of targets all across a theater of As a result of the revolution, and ‘finders. ” Any target that 
operations, melding air, sea and Andrew F. Krepinevicb Jr., a can be identified most likely 
land forces as never before. Sol- retired army lieutenant colonel, can be destroyed at once. 

Health Bill’s Drafters 
Ready to Move Ahead 

■Mvtowm Post Service insurance through the federal 

Democratic health committee 
staffers have completed work 
on a detailed outline of the re- 
form bill that party lMdera 
hope to introduce by week s end 
— if they can muster enough 
support from members. 

The “summary of agree- 
ment” includes the ospected 
features endorsed by the Clin- 
ton administration: a reqiure- 
ment that employers fay 80 
percent of their 
£ce costs; a con^relK^ve 
benefits package, and an option 
for certain people to buy health 



ee system. 
ie' bill 


coverage — President Bill Clin- 
ton’s main goal — and also in- 
cludes insurance market regula- 
tions that would prohibit 
companies from ref using to 
cover people ditfc existing 
health problems. It contains 
fallback cost controls. 

Laura Nichols, a spokes- 
woman for House Majority 
Leader Richard A. Gephardt, 
Democrat of Missouri, called 
this “a staff working paper for 
the use of the leadership in 
meeting with members” and 
said it may undergo further re- 

Victim’s Mother Sues 0 J. Simpson 

" iWUU ■ .U- vst 1 Hold! 

has sued OJ. 

wantonly an ... 

Wednesday. Sharon Rufo of St. Louis on July 20 in 

The lawsuit, §®t 2_ s !SL geeks unspecified general and 
Santa *3!firat wrongful death 

of Mr. Simpsons ex- 
action filed w the ? Mr. Goldman, 

wife, N iwle Sf^Sigs. Mr- Goldman, a waiter at the 

earlier that evening. 

On -September 5th, the IHT will publish a Special 
Report on 


Among the topics to be covered are; 

■ Developments of the GE90, a new aircraft engine. 

■ Future of mergers and acquisitions in the industry. 

■ Importance of the Chinese market in aircraft sales. 

■ Privatization of airports. 

■ Secrets of success for the European charter industry. 

77b® Special Report coincides with the Famborough Air Show, September 5-11. 
For mom information about this Spotial Report, 
please contact BSMahder in Paris at (33-1) 46 37 9378 

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Three audio cassettes with readings of selected articles 
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Page 4 


UN Asks U.S. Help 

With Mass Burials 

Incinerators Are Also Sought 
As Corpses Pile Up in Zaire 

Haiti Junta Maps a Way Out 

By Barry James 

httemamal Herald Tribune 

The United Nations asked 
the United States on Wednes- 
day to send troops to help bury 
the dead piling up around 
Goma in eastern Zaire as chol- 
era raged through festering ref- 
ugee camps, and the UN also 
appealed for incinerators to 
fawn the decomposing corpses. 

A UN spokesman, Panos 
Mourn tzis, who said that at 
least 18,000 have died of chol- 
era and other causes in the past 
week, told Reuters in Goma 
rtwt the United States had 

Pile of Bodies 
Barely Alive 

The Associated Pros 

GOMA, Zaire — The old 
man's head moved and his 
eyes opened as the body 
collectors threw him onto a 
truckload of corpses 

“He’s alive! That man’s 
alive!” a photographer ex- 

The Zairian workers, go- 
ing about the grisly task of 
picking up thousands of de- 
composing bodies, were 

“He may be alive now. 
but he’s dying and we’re 
not going to be coming 
' bade this way today” the 
man in charge of the corpse 
crew told the photogra- 
pher. “We may as well take 
mm now.” 

Journalists at the scene 
had to beg the worker to 
take the old man out of the 
reeking cargo and leave 
Mm beside the road. 

agreed to send a battalion of 
troops and 30 trucks to bury the 
dead. U.S. military sources did 
not immediately provide confir- 

Elsewhere, a U.S. mttitaiy 
advance team was flying to Ki- 
gali on Wednesday to prepare 
to shift the U.S. base of opera- 
tions for its humanitarian mis- 
sion to the Rwandan capital 
General George Joulwan, the 
supreme commander of allied 
forces in Europe, said in Stutt- 
gart that US. troops would set 
up a series of feeding stations to 
encourage the refugees to move 

Village elders, former gov- 
ernment officials and militias 
have discouraged the Hutu ref- 
ugees from returning. They tell 
than they will be slaughtered 
by the Tutsi-dominated Patriot- 
ic Front government in revenge 
for the massacre of up to 
500,000 mostly Tutsi Rwan- 

Only a few thousand of the 
estimated 12 million refugees 
around Goma have dared defy 
their leaders. J. Brian Atwood, 
who is coordinating U-S. aid in 
the region, said it was “uncon- 
scionable’' that Hutu leaders re- 
sponsible for genocide were still 
‘mrgjng people not to return to 
their country because they want 
to regroup the military fences 
and continue this war.” 

Up to 3,000 U.S. troops were 
expected to take part in the hu- 
manitarian operation, known as 
Support Hope. Canadian 
troops were on their way to Ki- 
gali to repair the war-damaged 
airport so that U.S. military 
transport planes could start re- 
lief flights to the capital. 

In the refugee camps, people 
were dying of cholera and other 
diseases faster than aid workers 
and French troops could collect 
and bury them. A spokesman 
for the United Nations High 
Commissioner for Refugees, 

v. *£ yj£ n 

ift* X'. •• ’• 


By Douglas Far ah 

Washington Post Service 

PORT-AU-PRINCE, Haiti — Haiti’s 
nrilitaiy rulers, believing they have stared 
down the threat of a US. invasion, have 
embarked on a plan to gain international 
recognition and ease the crushing trade 
embargo, according to sources close to the 

military. . . , 

The broad goal of the plan is to give the 
United States and its allies enough reason 
to Haim that progress is being made to 
begin a phased lifting of the sanctions, 
while ensuring that the deposed president, 
Jean-Bertrand Aristide, does not return. 

President Bill Cluuon has said repeated- 
ly chat he has not ruled oat the use of force 

to the military step aside and restore 
Father Aristide, who was overthrown in 
September 1991 after seven months as 
Haiti’s first democratically elected presi- 
dent. But UJ3. officials have indicated no 
military action is imminent. 

“We are in the seoond phase now, said 

a source with dose ties to the military 
leadership. “We believe there win be no 
invasion, and Mr. Aristide is not coming 

So what we have to do is grvethe interna- 
tional community -a way to recognize, ns 
without losing face.” 

In an effort to force the military to aScw 

the return of Father Aristidc/the united 
Nations, led by the United States, has - 
an alm ost- total trade embargo on 
the impoverished nation. A c cordi ng to the 
UN resolution on the sanctions, the mea- 
sures can be lifted gradually if the army 
commander. Lieutenant General Racwl 
C&dras, resigns and his chief of staff, Brig- 
adier General PhflippeBiamby, along with 
the police chief. Lieutenant Colonel Mi- 
chel Francos, ether resign or are reas- 
signed outside the cwmtry. ; 

According to the sources,, the scenario 
calls for General C6dras to resign before 
December. The de facto president, finale 
Jonassaint, would then name the army 
deputy commander. Brigadier GeneraL 
Jcan-CIaude Duperval, to succeed him. 

General Duperval would then reassign 
General Biamoy and Colonel Francois, 

but removing the two 1 

poaticms.Iiowevegr, all three would remain 

m the country- J. .■ 

“We are wfflmg to tade .far 

Aristide,” ■»» » 
ator, Bernard Sarrsaricq. wcd athavwc . . 
wifi let the coontry go free from ua.sua*- - , 

tim." •• .... 

The sources believe, as do many, o^to- 
mats here, that such a move womd wtaal- 

. I- - — Mminli'hi rtf An tmaonn ; 

while preserving the institutional coMSwn - 

saida^uanessman wlh ti« tp-tS^.^r ;• 
command. “We wiH say **g**g*g!£- 
ai community and Aristide.’ the.baH 

Then negotiations can . 

A US official said the removal of Qm- 
ecal Cfcdras would be a “major step" that ■ 
would allow the United States to daun 
enough of a victory ;to at leiat postpone a 
decisio n on annedinterw nrion. -• 

“We would bbvioasfydaiat par policy ' 
was- working, and ! would guess stwooid 
buy several months at last” th* pffkfol 

%%> Serbs in Bosnia Fire BOSNIA; ww Again, but Worse? 

% Vj£uRL ' Ca u t huMd lwa . an 82mm mortar used in i 

TT\T A • 1 tlm plan, albeit. with naspvings Gorazde area in the jast fi 

pS On UIN Aid tonvoy 

w v ^ nnrfhnm rdlv.'of Tuzla is a] 

Mkfcd Gaagoe/Ageacf FnaMitoc 

A Rwandan girl sitting next to the body of her father 
Wednesday on the road to a refugee camp in Zaire: 

Ray Wilkinson, said the United 
Nations had asked the U.S. 
State Department and General 
Jack Nix, who hods the hu- 
manitarian operation, to pro- 
vide teams to help gather the 

So far, French troops have 
been largely responsible for the 
grisly task of collecting die bod- 
ies and burying them in tna&s 
graves, some of which have had 
to be blasted out of volcanic 

Bat they were being over- 
whelmed. and the United Na- 
tions decided to ask for inciner- 
ators, despite the fact that 
cremation is against Rwandans’ 
traditional religious practice. 

“There is the horrible need to 
bring incinerators to Africa to 
prevent an extremely serious 
epidemic from spreading to 
other areas,” said Peter Hansen. 

the United Nations undersecre- 
tary-general for humanitarian 

“The situation in Goma is 
more horrendous than any de- 
scription,” he told Reuters in 
Kigali. French officials, mean- 
while, said cholera also had bro- 
ken out in the French security 
zone in southwestern Rwanda, 
although they did not say how 

The cooperation between 
US officials and the Patriotic 
Front in Kigali made it likely 
that Washington would soon 
recognize the new government, 
Mr. Atwood said during a press 

He said the United States 
-fust wanted to be sure the Patri- 
otic Front was interested in a 
broad-based government that 
would reflect Rwanda’s ethnic 
and political divisions. 

ORPHANS! The Moaning of Children Is Less Dreadful Them, the Silence 

Contained from Page 1 
tunes by as much as 1,000 chil- 
dren a day. So, too, have the 
number of deaths at the or- 
phanage, now more than 10 a 

On Tuesday morning, volun- 
teers carried two dozen small 
bodies from the buddings to a 

The orphanage has just one 
doctor, a dozen nurses and only 
five latrines, but it is a privi- 
leged place compared with the 
destinations of most refugees. 

The two women who run the 
orphanage, Nimet Lalani of In- 
dia and Yvette Kakusn of Zaire, 
refuse to turn any child away. 
Both are strong figures, unem- 
barrassed about cadging food, 
medicine and shelter from a va- 
riety of foreign donors. 

* Ms. Lalani is in near-perpet- 
ual motion, a slight woman with 
cropped salt-and-pepper hair 
who rages through wards, 
shouting at the staff. 

“ Mai rnaiH she bellowed, us- 
ing the Swahili for water. 
“Where are those useless giris 
who are supposed to wash the 
cholera children and keep than 
supplied with drinking water? 
The children are thirsty!” 

Trained in Belgium and Can- 
ada, Ms. Lalani is the daughter 
of a Goma merchant. She is well 
aware of the Hum extremists' 
massacre of several hundred 
thousand Tutsi since April,, 
when the death of Rwanda’s 
Hutu president in asuspicious 
plane crash reignited a civil war 
and set off a season of ethnic 

The rebel Rwanda Patriotic 
Front, led by the Tutsi, has de- 
clared victory over the Rwan- 
dan Army in the war and last 
week it framed a government 

This week, thousands of 
Hutu refugees began to stream 
back home after the Tutsi said 
they would not take revenge for 
the massacres. 

“Many Hutu may be guilty as 
sin,” she said, “but not these 
children, who had nothing to do 
with the violence. What hap- 
pened is not the children’s fault 
My job is to save fives." 

But violence is never far 
away. A group of more than 100 
Hutu children belonging to a 
Rwandan orphanage stormed 
out of the camp, taking their 
tents — donated by relief agen- 
cies — and other belongings. 

“Their staff was made up of 
Rwandan Army officers' wives, 
and some of the children were 
theirs and not orphans at all,” 
Mamas Yvette said. “Soldiers 
kept trying to come into the 
campy and we had to have one 
arrested who was caught out- 
ride a tent with a hand gre- 

Since then three Zairian sol- 
diers have been stationed at the 
entrance. But the two women 
«wn able to defend their inter- 

ests themselves when they need 
to — as an Israeli medical team 

The Israelis appeared at the 
orphanage Tuesday morning to 
set up a 120-bed field hospital 
to tend to. the medical needs of 
the Goma area. Ms. Lalani 
wanted their help immediately. 

“We’D crane tomorrow when 
we are properly set up,” an Is- 
raeli doctor said. 

“Then my serious cases will 
be dead,” Ms. Lalani shot back. 

They arrived at a compro- 
mise. The Israelis would come 
bad; in the afternoon and take 
some of the most-serious chol- 
era cases. 

When the Israelis returned, 
they and Ms. Lalani made the 
difficult choices of whom to 
take. In the end, the Israelis 
agreed to take 10. But Ms. La- 
lani rusbed into a b uilding and 
returned with an 11 th gravely ill 
child, th rustin g it into their 

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NAIROBI — Nearly 200 
people have been killed m eth- 
nic dashes in Burundi over the 
last few days, Burundi Radio 

The radio, monitored by the 
BBC in Nairobi on Tuesday, 
said the clashes took place in’ 
the northwestern Mbuye dis- 
trict. Two camps for displaced 
people have been set up, it said. 

The radio said Mbuye was 
completely deserted after the 
clashes between the majority 

Hutu and minority Tutsi tribes. 

Burundi Has the same ethnic 
makeup as Rwanda and has 
hafl intermittent dashes be- 
tween Hutu and Tutsi since its 
first Hutu president, Melchior 
Ndadaye, was murdered by ren- 
egade soldiers in October. 

But it has been spared the 
bloodletting that has raged in 
its central African neighbor af- 
ter both countries’ presidents 
were killed in a plane crash 
April 6. 

TERROR; New Attacks Feared 

Mara **r order to EMenadcmal HomU Wtae Olfa* 

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Goutiimed from Page 1 

National Security Studies in 

“Geany, the training has 
gone on, the preparations have 
advanced, the money has been 
showing up in different places," 
she said, underlining what other 
specialists’ have said — that 
Iran has the capability for a 
worldwide campaign. 

The specialists said Iraman- 
backed terrorist groups have 
been setting up secret cells in 
Western countries, citing Ha- 



It’s never 
been easier 
to subscribe 
and save. 

By John Pomfret 

Washington Past Service 

SARAJEVO — Serbian 
forces attacked a 10- truck Unit- 
ed Nations convoy Wednesday 
as it inched its way down a 
mountain road toward. Saraje- 
vo, blowing up a fuel truck and 
trillin g a British soldier and a 
Bosnian civilian, UN officials 

The assault came on the day 
that Bosnian Serbs shut the 
route, Sarajevo's main artery to 
the outside world, to civilian — 
but not UN — traffic. 

That move effectively reins ti- 
tuted the Serbian siege of Sara- 
jevo and food prices in the city 
immediately jumped by 50 per- 
cent in some cases as edgy resi- 
dents hoarded sugar, cooking 
oil, coffee and gas. 

fin Washington, Reuters re- 
ported that Secretary of De- 
fense William J. Perry on 
Wednesday expressed deep 
concern over “a pattern of Bos- 
nian Serb provocations” in the 
former Yugoslavia and warned 
that NATO warplanes woe 
prepared to launch strikes.] 

UN officials said NATO 
planes were called to the attack 
site but when they reached the 
Hrasnica suburb abutting Ser- 
bian-held territory the firing 
from Serbian positions inside a 
high school had stooped. 

Two British soldiers were 
wounded in the shooting. Metal 
from one of the trades was 
lodged in the chest of a soldier. 
Another was hit by machine- 
gun fire in the shoulder, chest 
and limgs, doctors said. 

United Nations officials said 
it was undear if British soldiers 
in the convoy had returned fixe. 

The raid was the latest in a 
series of antagonistic moves by 
Bosnian Serbian forces aimed 
at putting the international 
co mmunit y, the United Na- 
tions and .the mostiy-Muslim 
government on notice that an 
Internati onal peace plan will 
not be imposed on Bosnia and 
that Serbian demands must be 

Serbian forces last week re- 
jected the plan that would di- 
vide Bosnia into two sections, a 
SI percent chunk controlled by 
a federation of Croats and Mns^ 
fans and the 49 percent remain- 
der run by the Serbs. 

Over the past week. Sobs 
have hit UN airplanes with 
email-arms fire over Sarajevo, 
fired heavy weapons around the 
mostiy-Muslim enclave of Gor- 
azde despite a NATO ultima- 
tum forbidding their use and 
taken hostage two employees of 
the UN high commissioner for 
refugees along with a Muslim 
woman near the Serbian-hdd 
city of Visegrad. 

If a Serb demand for the re- 
lease of their prisoners of war' 
from Muslim detention is not 
met by ihiTweekend, they have 
warned they will also stop all 
UN convoys from moving 
through their territory, thereby 
stranding several hundred 
United Nations sokfiexs in the 
isolated Muslim enclaves of 
Gorazde, Srebrenica and Zepa. 

Foreign ministers of five na- 
tions — the United States, Rus- 
sia, Germany, Britain and 
France, will meet Saturday to 
consider implementing a series 
of punishments against the 
Serbs for rejecting the plan. 

Ca u t huMd final 

the plan, albeit with rmsgrvings 
and some ambivalence. 

“There is always a posafafify 
fac Serbs will change thdrpost- 

tion and we will get an agre£ 

ment bul it must be very sSm, 
Charles E. Redman, tw && 
special envoy , to the Bosnian 
peace talks, said in a tetepnbste 
interview- " r ^ 
Without an ^greenaemt^^tlte. 
United States, Russia and ma- 
jor West European powers Ka*B 
conraritred themselves to toagb 
measures against the Serbs. 
Tightening trade sanctions op 
Serbia is the first, bat evtsyane 
knows that wi& scarcely to^ce 
the Serbs tremble. 

So a; swift 'move to nsx&£ 
North Atlantic -Treaty Organi- 
zation air power to enforce the 
zones around Sarajevo mid 
Gonffidc, firan wiric&'ScsfecaB 
heavy weapons are to foi p calty 
exclu d ed, is widely 

our (damBBsto^tmday, in- 
cluding more sanctions and 
stronger enforcement of exclu- 
sion zones,” Mr. Redman said. 
“The US ccanrmtmait to the 
package is growing and well be 
following through one way or 
the other."- t . 

in other words, whether it is. 
in the execution of NATO‘air 
strikes, or titetessJHorfycvaam- 
ality of providing troops to po- 
lice a peace agreement, the 
United States is going to be 
more involved in the changed 

Hntnian «ti]|Hnn . 

- Peace, however, is a long 
shot, and plammag for turning 
. up. the heahm the Serbs is cur- 
rently intense. . 

Apart bom' stricter pairing 
of the existing exeftawm zones 

— which would presumably 
have led to NATO attacks on a 
Serbian. 40mm anti-aircraft 
heavy machine gun and a Sott- 

as 82xom mortar- used in the.. 
Gorazde area in the past few 
days — the creation of. ’a new 
exclusion zone around the 
northern dty^of Tuzla is also 
con temp lated, diplomats said. 

. Bat these plans -— ‘winch 
could be vulnerable to Last-min- 
ute Russian opposition —have 
major implications for- the 
United Nations peacekeeping 

ftvrw in Boaai ; 

• Put simply, the UN soldiers 
are potential hostages for the 
Serbs and they could, be 
dragged into a war trinle driv- 
ing around in white tanks with a 
smsskm officially Umited to 

Both the commander of the 
force in Bosnia, Lieutenant 
General Michael Roseof. Brit- 
ain, and the UN secretary-gen- 
eral, Butros Butros Gfaah, Save 
taken note of ^ this dilemma over, 
the past week, and suggested 
. the fo rce would have to be 
adapted or withdrawn.' 

• In recent days, the Bosnian 
Serbs have made it quite dear 
. they are ready for an extension 
of tire war and in a position to 
make. life very .difficult for the 
United Nations, and- for die 
Bosnian government. ... - 
■ - They have fired . on’Uoiied 

stopping the arrival of food aid. 

' T hey hove closed thfc- .ospe 
.land route oof of Sarajevo, 
whose opening in March effec- 
tively lifted the siege of tbedjy. 
And they have threatened to cut 
off the rify^ dectiidty and wa- 
ter supplies. 

The nwssage, dearly orches- 
trated by the Bosnian Serbian 
mfirtary commander. General 
Ratko Mladic, is that if the 
United Nations, NATO and the 
Bosnian Muslims want » wider 
war, it wiB be a ruthless one. 

AJRLJNEtl Air France Bailout Heads for CourtAmid Competitors 9 Cries 

'ANY 200 Reported Killed in Buirmdi Clashes 

Contained frauPage 1 

adding that there could “hardly be com- 
petitive parity so long as some airlines are 
propped up” An aide to the U.S. transpor- 
tation secretary said Wednesday that die 
letter had been sent because the Clinton 
administration was. very concerned about 
the latest decisions in Brussels. 

The Olympic Airways package will al- 
low the Great airline to write off its debt 
burden, which will be treated as a capital 
injection by the European Commission. In 

exchange, Athens must stop giving the 
airline operating subsidies and provide 
better access to other European airlines 
serving lucrative routes to Greek islands. 

By for the most outrooken critic of the 
green light for the French and Greek subsi- 
dies was Sir Colin. of British Airways. 
"Hus is a bad day for Europe, a. bad day 
fra European air travelers and a bad day 
for the European Union,” he said. He 
added that Air Frances problems were “of 
its own making” and that “the solution lies 

in more self-help arid less dependence on 
.die state.” • • 

. . Air .France posted a 1993 loss of 8.5“ 
bflEon francs and has outstanding debt of 
37 bOhon francs. Alain Gziptteray, a can-’ 
servative member of France’s National As- 
sembly who last 'month' wrote a report on * 
government aid to state companies, called 
recently for a fresh look at Air France’s 
accounts. “There are parts of the 1993 
deficit that one cannot explain and which 
require a further audit,” be said. 

FARES: Companies Encouraging Business Travelers to Ffy Frugal Cilass 

mas as especially successful in 
forging clandestine networks in 

A key question, voiced both 
by Mr. Rabin and by special- 
ists, is the possibility that Syria 
is linked in some way to the 
terrorist outbreak 

Syria holds a whip hand over 
the Hezbollah in Lebanon, so 
Damascus might see some 
bombings as a reminder for the 
West that only Syrian authority 
can curb the last extremists. 

In the past, Iran has been 
caught using its diplomatic fa- 
cilities to supply weapons and 
explosives, rands and intelli- 
gence to terrorists who have in- 
filtrated Western countries. 

But in recent months, Iran, 
while not diluting its efforts to 
promote hard-line fundamen- 
talist regimes, has seemed to 
disregard the steps toward 
Arab-Israeii peace. 

Oiina Leader to Vkh Russia 


MOSCOW — The Chinese 
president, Jiang Zemin, wiB vis- 
it Russia during the first week 
of September, President Boris 
N. Yeltsin said Wednesday. 
The visit will be the first to 
'Moscow by a Chinese head of 
state since the 1950s. 

Condoned from Page 1 
expensive accommodations like 
the budget hotels of Red Roof 
Inns or the “upper economy” 
lodging offered by La Quinta 

Inns . 

John Kaegi, senior vice presi- 
dent of marketing for La 
Quinta, which has 220 hotels, 
raid the number of national 
contracts the company has with 
medium-sized and large compa- 
nies had risen to more than 450, 
from about 80 two years ago. 

To be sure, many companies 
have decided to send their em- 
ployees on more trips as the 
buaness outlook brightens. 

And some industry analysts 
say that more corporate purse 
strings will be loosened as prof- 
its improve. “There is definitely 
more of a cyclical dement to 
this,” said rail Karos, an air- 
line analyst for CS First Boston. 

lower their costs so they can 
profitably offer the low fares 
that business and leisure travel- 
ers demand. Continental Air- 
lines has bet that by drastically 
lowering fares and s i mpli fy ing 
its fore structure to eH grgp. ev- 
eryone the; same fare on many 
routes, it can fill its planes and 
more than offset the drop m 
fares with extra passengers. 

Yet, the airline industry is . The co6t-cutting efforts by 
worried. Airlines are trying to companies underscore the 

gamesmanship that character 
ires the relationship between 
the airlines and their passen- 
gers. Before deregulation in %- 
' 1978, fares ware based on mile- 
age, and most people aboard a 
flight had paid the same fare. . 

Then airiines started using, 
computers to develop complex 
fare structures that charged 
what the market would bear, 
meaning business travelers paid 
much higher fores than Insure 
travelers- - 

ITALY: Prime Minister’s Brother to be Arrested in Scandal 

Continued from Page 1 

been arranged with the magistrates investi- 
gating the case. 

Even though Fimnvest’s senior manag- 
ers have come under fire, there has been no 
implication until now that the prime min- 
ister, who ran Fininvcst personally until he 
entered politics earlier this year, had direct 
knowledge of corrupt practices. 

In a statement tonight, he defended the 
business practices of Fininvest, a $7.5 bil- 
lion-a-ycar conglomerate. 

“Certainly if you want to find a pin out 
of place in a huge Corporation, in a moun- 
tain, you can find it,” SiMo Berlusconi 

He added, “I do not want to occupy 
myself with these things, but I can say that 
if all corporations were run fake fininvest, 
there would be no problems of public mo- 
rality in Italy.” 

The prime minister’s verbal offensive 
against the magistrates came little more 
than a week after the government had to 
revoke a decree designed to stifle then- 
work by forbidding the use of preventive 
detention for corruption suspects. It had 
met with a storm of protest both from the 
public and from members of Mr. Berlus- 
coni's fractious government coalition. 

13m prime ntiaister has alro co&te under 
heavy fire for meeting Sunday with Frnin- 

vest lawyers, just as news of the investigar 
don into Paolo Berlusconi was filtering 
out Members of his cabinet also attended 
the meeting. 

Opposition leaders stepped up their 'at- 
tacks an tbe prime minister, frim 

of hypocrisy and serious conflict ofrntcr- 

“The affair around Pack) Berlusconi 
augments the impression that we are deal- 
ing with a prime minister who is a hypo- 
'crite,'” Beniamino Andreatta, a former for- 
eign minister, raid. 

Mr. Andreatta said the prime mxmster’d 
defense of the in-starred decree as amcteis 

be 'fiie “masking of an effort to. block 
justice.” ; 

But Giuliano Ferrara, .the cabinet 
spokesman, denied favoritism toward rela- 
tives or business associates played any rote 
in Prime Minister Bertosconifr . derations. 

“The government has no brothers, coufr-' 

ins, biutbers-iflrlaw or relatives*” he toid a 

television interviewer. “The government is 
thegovemment (A the republic.” - 

The results of puttie opinion surveys 
released Wednesday appeared to suggest, . 
however, that the storm -of controveny 
swirling about the prune minister and his 
company was cutting into his popularity. 

Afioarding to a . survey conducted by a 
ptthnggroap generally sympathetic to Mr. 
Batascom, only 70 percent of voters who 
sard they voted for his party in March’s : 
national elections said they would do. so, 
agam if elections were hdd today. In a 
survey commissioned by the opposition 
raty tf tlte Democratic Left, the fanner 
only 60 percent of Mr. Ber- 
lusconi s backers said they would remaia ' 
ioyaJL . 

Italian Judge Orders 
Craxi to Return Home 

Agmce Frana^Presse 

ROME — An Italian judge has ordered 
-nfonner Socialist prime minister,- Bettino* 
Ljuxl, to leave his Tunisia, retreat and 
hone, where he faces a possible II 
years. mjaiL ... r \7r .. , 

Rando issued the riding 

' tiW covering Of 

Cnm Aould 

Man,W Barm° Ambrosfono a 

Monday for. Km 
sentenced to 11 years. 


l -P IiSjD 



Wary of Rebels, 5 Nations May Retrain Cambodia Army 

By Michael Richardson 

' traenmumtd Herald Tribune 

y BANGKOK — Alarmed at the prospect of a 
Wmer Rouge comeback in Cambodia, a group 

role m placing an elected government in Phnom 
Penh are planning to help make the Cambodian 
Army a more effective fighting force. 

Wes tern officials who attended a hig h-level 
™®cnng of 12 Asa- Pacific countries the 
European Union that ended Wednesday said 
mat a consensus had emerged on the need for 

foreign military assistance to Camtxxfia after the 
Khmer Rouge made gains on the battlefield 
against the poorly disciplined and badly orga- 
nized government forces. 

The United States, France, Australia, Indone- 
sia and Malaysia are expected to begin a coordi- 
nated program soon to support a Cambodian 
government plan to restructure anrf retrain the 

The. United Slates, which recently provided 
tugmeering and construction equipment to the 
Cambodian armed forces and some training for 
officers in the United States, now seems ready to 
send mili tary training teams and advisers. 

It is not clear, however, whether arms and 
combat equipment will be provided by the Unit- 
ed States, and perhaps some of the countries in 
the aid group, at a later stage. 

Analysts said that such a move would be 
opposed by C hina ami Thailand. Both countries 
argue that it would inflame the situation in 
Cambodia and that Phnom Penh and the Khmer 
Rouge should settle their political differences in 

In an interview on Wednesday, Winston Lord, 
the US. assistant secretary of state for East 
Arias and .Pacific Affairs, did not rule out the 
possibility^ that the United States could provide 
weapons and ammunition, if requested by the 
Cambodian coalition government. That govern- 

KOREA: Defector (ork He?) Says North Has 5 Bombs 

Continued from Page 1 

defector falls well beyond and 
well outride of those parame- 
ters,” he said.] 

But true or not, there was 
concern that by pu tting the de- 
fector before the world so os- 
tentatiously at this sensitive 
moment, the South Korean 
government could poison the 
atmosphere at high-level talks 
between U.S. and North Kore- 
an officials next week on the 
nuclear issue. The two sides are 
scheduled to meet in Geneva on 
Aug. 5, resuming talks that woe 
suspended three weeks ago af- 
ter the death of the North’s 
leader, Kim II Song. 

There are some officials in 

Seoul who believe the American 
and South Korean governments 
may be induced to give up too 
much in the negotiations with 
Pyongyang, which they do not 
trust So there was speculation 
that the officials might have 
been trying to pre-empt such a 
prospect by painting the North 
Korean nuclear program in the 
starkest possible terms. ■ 

At the least, the frightening 
scenario depicted by Mr. King 
is hkriy to raise the stakes at the 
Geneva talks, winch are aimed 
at opening North Korea's nu- 
clear faculties to international 
inspections and at halting any 
program to produce plutonium, 
■the raw material for nuclear 

Kim Jong U Absence Sustains Mystery 

The Agsoaated Prea 

SEOUL — North Korea held military ceremonies Wednesday 
that some observers had expected to mane the formal completion 
of the secretive state's power transfer, but no such sign emerged. 
. No new titles were used to refer to Kim Jong EL, son of the late 
leader Kim H Sung, who has apparently taken power in the 
Communist North. Mir. Kim was not present for the ceremony, on 
the 41st anniversary of the Korean War armistice, which is 
marked with much fanfare in the North. 

In one other puzzling development at the military ceremony, 
the South's Naewoe Press said Kye Eyoung Tae, a party secretary, 
made a speech cm behalf of Mr. Kim It stqd it was unusual for a 
nonnuHtaiy figure to speak at a ceremony of this kind. 

ment took office after winning general elections 
in May 1993 that were supervised by the United 
Nations but boycotted by the Khmer Rouge. 

Mr. Lord said that the initial emphasis of any 
new US. aid to the Cambodian military would 
be “on reform and organization before looking at 
other kinds of assistance.” 

“But certainly training will be a very large pan 
of it,” be added. “We already do some and we 
may step that up” 

He said that the Clinton administration would 
“consult Congress closely as we move ahead” to 
broaden military aid to Cambodia. 

Mr. Lord declined to predict when a U.S. 
program could begin. “But 1 think we can move 
very quickly in terms of training and reform” to 
ensure that any aid is properly used. 

“Once that begins effectively, other forms of 
assistance might follow in its wake, again in dose 
consultation with Congress,” he added. 

Any signs of recalcitrance by 
the North Koreans might now 
be interpreted far more serious- 

“This defector definitely ups 
the ante a little bit,” said Don- 
ald Gregg, chairman of the Ko- 
rea Society in New York and 
previously an ambassador to 
and CIA station chief in Seoul. 
“It makes me wonder why the 
Smith Koreans chose that mo- 
ment to spring bun.” 

Nevertheless, Mr. Gregg, a 
strong supporter of dialogue 
with the North Koreans, said 
the development Wednesday 
made the case for negotiations 
even stronger. If the North Ko- 
reans do staD or dissemble, the 
.tactic will be thrown up in 
sharper relief, and the conse- 
quences would be much 
harsher, Mr. Gregg said. 

The North Koreans have 
long denied that they are devel- 
oping unclear bombs, but they 
have refused international in- 
spectors access to several nucle- 
ar fatalities where they may 
■have produced or stored pluto- 
nium, the raw material for the 
weapons of mass destruction. 

Mr. Kang put a harsh light on 
the North’s alleged nuclear am- 
bitions. He said that he was vice 
president of a trading company 
directly under the control of the 
president’s office. He decided 

Mjubars Hauno imen 

A COMEBACK? — Tsutomu Hata, who was forced to 
resign last month as Japan's prime minister, rowed 
Wednesday to form a large opposition party by Sep- 
tember Jo crush what be calls the “irresponsible” 
Socialist-liberal Democratic government. “There is 
tins gronndswell of d emand ” for such a party, he said. 

to defect, he said, in May when possible defection, bad de- 
bt was on a business trip to manded that he be captured. 
China. Mr. Kang said he over- Neither he nor the intelli- 
stayed his visa, and heard that gence officials present offered 
Kim Jong H, angered by his any details on bow he escaped. 

The foreign ministers of Indonesia and Malay- 
sia said at a press conference Wednesday that 
tbdr governments had agreed to provide military 
training assistance to Cambodia. 

France is already working closely with the 
Cambodian military and has promised more aid. 

An Australian military team was recently in 
Cambodia to give detailed recommendations to 
Canberra on fie most effective form of Austra- 
lian support 

Officials said that the five nations that would 
be working with Phnom Penh had formed an 
informal group through their embassies there to 
coordinate their efforts and prevent duplication. 

Gareth Evans, the Australian foreign minister, 
said at tbe Bangkok meeting that although his 
nation had made no final decision on assistance, 
“we believe we might be able to help in designing 
a comprehensive training plan for the whole” of 
the Cambodian armed forces. 

Khmer Rouge 
Ambush Train, 
Leaving 9 Dead 

4 gence France- Prgssr 

people were killed and scores 
injured when Khmer Rouge 
guerrillas attacked a train in 
southern Cambodia, taking 
more than 200 passengers cap- 
tive; including three foreigners, 
a rail official said Wednesday. 

The rebels detonated two 
mines, one under tbe tram's en- 
gine and the other under the 
last car, on Tuesday afternoon 
as the train passed through tbe 
Kompong Tracb district of 
Kainpot Province, about 130 
kilometers (80 miles) south of 
Phnom Penh, the director of the 
state rail, Picb Kimsreang, said. 

“After the mine explosion, 
the Khmer Rouge started firing 
heavily at the train.” he said. 

Five civilians, two soldiers 
and two train militiam en were 
killed in tbe ambush and many 
others were wounded. 

Tbe guerrillas boarded the 
train and robbed passengers be- 
fore marching more than 200 of 
them off into tbe nearby jungle 
around Phnom Voar, he said. 
The rebels later allowed some 
passengers to go free, but were 
still holding scores of others. 



Chickens Die by Tons 
From German Heat 

Unusually hot weather in 
Europe has taken a heavy 
toll on livestock, in Lower 
Saxony State, where half of 

all Germany's chickens are 
raised, those tightly packed 
into cages have been dying 
of beat stress at an alarming 
rate: 325 tons in a few days. 

Like all birds, the chicken 
cannot sweat. When ventila- 
tion is bad, tbe chickens' 
beans race and death often 
follows. Those that die pre- 
maturely, the weekly Der 
Spiegel reports, are turned 
into animal feed, mostly ex- 
ported to Poland. 

Lower Saxony law re- 
quires that no more than 30 
kilograms (66 pounds.) of liv- 
ing fowl — about 20 chick- 
ens — be packed into I 
square meter (11 square 

Despite growing calls for 
tighter standards, chicken 
farmers in Lower Saxony 
say the law makes it hard for 
them to compete with their 
counterparts in the Nether- 
lands or Denmark, for ex- 
ample, where standards are 

Around Europe 

A volcano museum, largely 
underground, is to be built in 
France's central Auvergne 
region. Tbe design, by the 
Austrian architect Hans 
Hollem. was selected by the 
head of the regional council, 
the former French president. 
Valfcry Giscard d'Esiaing. 
who overruled a jury's pref- 
erence for a Frenchman, 
Jean-Michel Wilmotte, de- 
signer of the Louvre Muse- 
um's new Richelieu wing. 
The new museum, said Mr. 
Giscard d'Estaing. will 
“simulate a voyage' to the 
center of the Earth.” featur- 
ing caves and chasms. The 
only above-ground portion 
of the museum, due to open 

! in three years near the town* 
j of Saint-Our$-!es- Roches 
I will be a huge mock-up of * 

I volcano. The simulation-’ 
may seem redundant: 112 
: extinct volcanos dot the Au- 
• vergne landscape. 


1 Lottery winners in Germs-. 

; ny are increasingly unlikely 
{ to mention their winnings to 
I their spouses, according to 1 
officials of WcstLouo in 
] Munster. Sometimes lottery 
1 staff must meet the winners 
j in a car or on a park bench to 
j keep spouses in the dark. Le-. 
i gaily, the clients' desire for- 
secrecy poses no problem: A. ' 
winning ticket is considered’ 
a contract strictly between-' 
its possessor and the lottery;' 

The art of the carefully'' 
gauged insult is practiced a'l 
a high level in the British 
Parliament Too mild and 
the insult fails to leave the - 
! intended mark. Too strong' 
j and the insuiter incurs the- 
wrath of the speaker. 

Now comes a useful guide 
to what can be gotten away 
with. Phil Mason has assem- 
bled an anthology of MPs’ 
rarings. and he shared some 
of the more colorful insults 
with Matthew Parris of The 

Thus, “liar," “fat bound- 
er” and "pompous sod” 
have been ruled unsuitable 
for MPs' ears, but "amiable 
\ dumbbell.” “fathead” and 
j “hamster” have been al- 
lowed. “Nosy parker” is a 
I no-no. 

j “Hardly credible," “arch 
confidence tricksters” and 
I “economical with the truth” 

| have been struck down, but 
I one may accuse one's coun- 
terpart of “cooking the fig- 
[ ures.” 

References to the Lords as 
“noble and learned camels” 
apparently offend animal 
lovers. “Cheeky young pup” 
was also disallowed. But 
there is nothing to prevent 
j describing a fellow member 
as “an inflated pig’s bladder , 
on a stick." 

How’s that again? 

Brian fCnowIton 


Country Manager/Bulgaria 
based in Sofia 
Pharma Division 

With an impressive growth history, our client has become one of 
tiie world's top pharmaceutical groups and is headquartered in 
Western Europe. The enterprise constitutes a coherent set of 
activities committed to serving the cause of life in several business 
segments, the main one being Human Healthcare. As of tbe 
present lime, aD products marketed are sold worldwide under one 
brand name. The worldwide turnover of tbe pharma division 
amounts to USD 23 bflBon. The company is now continuiQg its 
winning strategy by expanding its core business. 

An immediate requirement has arisen for a highly qualified 
Country Manager. The main tasks will be to expand and manage 
the fool pharma organisation, to market, promote and sell the 
whole pharmaceutical product line. Apart from the obvious 
requisite of extensive managerial experience, the quality roost 
Idaie as a national with intematiomf exper 

is knowledge of Bulgarian business mentality. In addition, tbe 
candidate must understand and accept the rules of the local 
market economy (which require most of all the willingness to 

work both well and much). Candidates should have 3 rather 
skuative management style in order to be able to set the necessary 
actions locally. Reporting to the Head of Pharmaceutical 
Operations for Central & Eastern Europe, candidates should he 
between 35 and 45, hold a university degree combined with 
experience in pharmaceutical industry’, also being experienced in 
local business practice and have good Bulgarian language skills as 
well as extensive knowledge in English or French. Good araiegic 
thinkers with bright, dynamic, ambitious, target orierxed and result 
driven personalities combined with excellent argumentation and 
communication skills will receive an attractive remuneration 
package including a highly compeiflive base salary, performance 
refared bonus and executive car. Applicants whose experience 
matches our requirements are invited to write to our consultant 
Claudia Daeubner in strictest confidence, providing a C.V., present 
remuneration details and contact tetephooe number. H. Neumann 
Management Consultants, A-1090 Vienna, Guenthergasse 3, Fax: 
*43) 1/4014077, ft fetew s nu mber IWi 


Search & Selection 

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Martha with a recent pwitfcpn 

p,rxt^tyta j/pNOA 

German-English Translator 

You are an English native speaker with an excellent knowledge of 
German, a translator's degree or equivalent university qualification 
and translation experience in the areas of economics, banking, 
finance and investment. You are quality-driven, rise to a challenge and 
enjoy tackling transfer ion problems creatively, exploiting tbe 
synergies provided by a dynamic team of language specialists. You are 
also computer-literate and interested in the opportunities presented 
by stateoftheart language technology. 

In Union Bank of Switzerland's English translation group in Zurich 
you will be translating a wide range of economic, investment and 
financial publications, speeches and documents for internal use. 

Interested candidates should contact Mis, B. Mass, (tel.: 01/236 73 80) 
for further details of the position. Written applications should be sect 
to Union Bank of Switzerland. Mr. G. Tischhauser, Personnel Services, 
Bahnhofstrasse 45 . 8021 Zurich. 

Union Bank 

of Switzerland 


The Bologna Center of the Paul H. Nitze School of 
Advanced International Studies is seeking a Director 
of Finance & Administration. Located in Bologna, 
Italy, the Center is the only full-time resident 
American graduate school of international rotations 
in Europe. An integral part of The Paul H. Nitze 
School of Advanced International Studies (SAIS) of 
The Johns Hopkins University in Washington. D.C., 
is the Center which offers an interdisciplinary pro- 
gram of studies in international economics, politics 
and contemporary history. The Center provides a 
unique opportunity for scholars from around the 
world to study international relations under the 
American system of graduate education with an 
expert international faculty. 

Reporting to The Center’s Director, the Director of 
Finance & Administration will oversee the adminis- 
tration of The Center's S3.5 million dollar budget and 
is responsble for the functional areas of budget and 
finance, personnel and facilities management. 
She/He performs as the principal financial advisor to 
the Center Director and is responsible for prepara- 
tion of the annual budget and controls and provides 
oversight for all Center expenditures. She/He also 
prepares current year and long-range projections of 
expenditures. Specific responsibilities include: cash- 
flow management development management and 
maintenance of banking and investment accounts 
and relationships: oversight of vendor relationships 
and bid processes: oversight of the facilities man- 
agement function including long-and short-range 
maintenance programs and purchase of equipment 
and supplies. The incumbent also manages the per- 
sonnel functions at The Center with oversight from 
the SAIS Director of Human Resources. This 
includes supervising the preparation of personnel 
documents, job descriptions, employment notices, 
and hiring contracts, oversight of employment inter- 
views and other HR matters as they arise. The 
Colter maintains both American and Italian payrolls. 

Candidates should be well versed in accounting 
principles and have had responsible experience in 
finance administration, and possible experience In 
facilities management (engineering/plant manage- 
ment). Understanding of. and/or experience with 
Italian labor practices would be a plus. Excellent 
managerial/supervisory skills, good oral and written 
communication skills, and fluency in Italian are 

A competitive salary and benefits package are 
offered. Applications will be considered beginning 
immediately and until the position is filled. A letter of 
interest resume and salary requirements should be 
send to: Director, The Johns Hopkins University 
Bologna Center, Via Belmeloro, 11, 40126 
Bologna, Italy. SAIS and The Johns Hopkins 
University is an Affirmative Action/Equal Opportunity 
Employer and Educator and encourages applica- 
tions from people of color and women. 


The Patii H. Nitze School of Advanced International Studies 


Swia 'tside’rfa 36, orebhm Urn 

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TEAQB5 of Engfch (naive ^meters] 
nr adefe iraang causes n ond 
Band Paris. Please send CV, photo 
m a tetter to SECM. ad ov. des 
Owns Bysms. 75003 Pans 

Middle East 

Sales & Distributor Marketing 

Our client is a well known intem.ifional company and. 
•market leader in its field. !n order to expand its activities ' 
into new markets, an excellent career opportunity has been • 
created for an Area Safes Manager, Middle Eastern 
Markets, to be located in Cyprus or other locations in 
Western Europe, i.e. U.K.. France are also possible. For this 
international position we are seeking a high calibre sales-, 
professional with executive potential and ideal age of 
30-3S. To make best use of the potential of this otler, a 
business oriented, ambitious self-starter is required with 
high quality college education in business administration ■ , 
and commerce, a few years of successful experience in 
international sales arid marketing in Mediterranean'; 
and/or Middle Eastern markets, preferably representing r 
major US or European corporations. Willingness to., 
extensive travel and fluency in Arabic and English are 

For n first rpnlucf, plow fax. 
enclosing CV and career summary, to 

Personnel & Management Consultants Inc., 

P.O. Box 315, CH-8030 Zurich, Switzerland. j 

Fax; 01-383 70 68. Phone; G 1-383 35 40. J 


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THURSDAY, JULY 28, 1994 





Act Sooner Next Time 

SribuitC The Moral fold in Rwanda 
— Should Worry the World 

By 'William PfaH 

Already people are asking why the 
United States did not come more quickly 
to the relief of Rwanda. “Too little too 
late” is the charge that comes into the 
minds of many Americans observing on 
their screens dimensions of tragedy star- 
tling even to those jaded by the century’s 
many other horrors, ha fact, it did take 
days for the American government to 
realize that the nature of the crisis had 
changed. But only days. 

J Tribal massacres in the hundreds of 
thousands had been going on largely be- 
yond camera and relief range inside 
Rwanda since April; only France sent in 
protective forces. In mid-July, cholera 
started claimin g thousands among the 2 
million refugees who had fled into Zaire. 
These plainly visible and preventable 
deaths spurred America to unlimber its 
formidable relief apparatus — the U.S. 
Agency for International Development di- 
recting, the U.S. mili tary delivering. It is 
not doing “enough,’' but it is doing plenty 
in circumstances where all precedents ana 
preparations turn out to be pale. 

The real lag, however, is not in the few 
days’ delay but in a more general failure 
to comprehend global change. It is not 
simply that ethnic rivalries are com- 
pounding; these rivalries were always 

there. It is that with the Cold War gone, 
other countries have been slow to accept 
new demands for dampening these rival- 
ries and for caring for their victims. For- 
merly, anti-co mmunism reinforced hu- 
manitarianism. But on the same Sunday 
television show where he was challenged to 
say whether in Rwanda the United States 
was doing too little, Secretary of State 
ristopher was also challenged 
her globally the United States 
too much. That is a fair state- 
ment of die current American heatanon- 
ln Rwanda, displaced people have be- 
gun the essential trek back to the relative 
safety and comfort of their home villages. 
The ousted extremist majority-Hutu re* 
ginte responsible for initiating the car- 
nage (a slaughter of many Hutu as well as 
a genocide of minority Tutsi) is reduced 
to preparing revenge from exile. The Tutsi 
rebels who now run what there is of a 
government in Rwanda insist that they 
will care equally for wary Hutu and wel- 
coming Tutsi. The immediate relief needs 
are immense and urgent. The longer-term 
burden falls on the United Nations and its 
members and agencies better to anticipate 
these massive convul&ons and, if anticipa- 
tion fails, to treat their terrible effects. 


Lift the Arms Embargo 

If Washington has ever been serious 
about pushing its allies to lift the unjust 
arms embargo against the government of 
Bosnia, it now has an ideal opportunity 
to do so. Bosnian Serbs have defiantly 
rejected a European-American peace plan 
and again threaten to blockade Sarajevo. 
Fiance and Britain are looking for a way 
out of their futile UN peacekeeping role. 
UN Secretary-General Butros Butros 
GhaU is e xpr e ssin g doubts about the use- 
fulness of any further United Nations role. 

With the flintnn administration rightly 
refuting to send US. troops into the 
breach, the cleanest, fairest way out for the 
international community is to untie the 
hands of the Bosnian government by end- 
ing the arms embargo. A stronger Bosnia 
could then act on its own, militarily or 
diplomatically, to assure its survival and 
gain back enough territory to allow at least 
some refugees from Serbian sieges and 
ethnic d«insmg s to return to their homes. 

Earlier this month, the major powers 
presented a take-it-or-leave-it peace plan, 
a map partitioning the country into more 
or less equal halves, to both the Bosnian 
government and the Bosnian Serb insur- 
gents. They warned that if one tide 
spumed the proposal while the other ac- 
cepted it. international sanctions would be 
revised to punish the holdout. Last week, 
the government unconditionally accepted 
the plan while the Serbs attached so many 
conditions that their answer amounted to 
a rejection. This coining Saturday, the in- 
ternational sponsors — the United States, 
Russia, Britain. France and Germany — 
meet to decide their next move. 

When the five powers first presented 
the plan, they declared that they would 

punish a Bosnian Serb rejection with a 
sequence of steps starting with tighter 
sanctions against Serbia and ending with 
a lifting of the arms embargo. The Clin- 
ton administration has always presented 
lif ting the arms embargo as its preferred 
response to the Bo snian crisis, while Eu- 
rope has favored partition and asked for 
large numbers of U.S. troops to help 
enforce it Washington's position was 
more honorable and more prudent But 
the administration, for the sake of NATO 
solidarity, has resisted congressional pres- 
sures to lift the arms embargo unilaterally. 
It has even indicated its willingness to 
commit American troops if the Bosnian 
sides freely agreed os a partition plan. 

Having demonstrated its own good 
faith, it is now time for the administra- 
tion to speak up and demand an early end 
to the arms embargo- That is the only 
sanction that the Bosnian Serbs are likely 
to take seriously. It represents fair treat- 
ment of a government that has been the 
victim of outside aggression since its 
birth .and that is even now prepared to 
give up half its original territory in ex- 
change for peace. And it is a better alter- 
native than either committing larger 
numbers of outside forces to keep a non- 
existent peace or having the outride 
world simply walk away in frustration. • 

Europeans will argue for delaying the 
lifting of the arms embargo as long as 
possible. But lifting it is a course to 
which even they are now formally com- 
mitted. The only thing left to argue 
about is timing. The Clinton administra- 
tion should make an energetic case for 
moving as quickly «s possible. 


Jobs or Inflation? 

When Alan Greenspan appeared before 
the Senate Banking Committee last week. 
Senator Paul Sarbanes sharply chided him 
for “counterproductive” interest rate in- 
creases. It was the latest round in the 
continuing debate over the speed limit ai 
which the American economy can be driv- 
en. Mr. Greenspan, chairman of the Fed- 
eral Reserve Board, thinks that the econo- 
my is currently growing faster than the 
speed limit and needs to be slowed down. 
[Senator Sarbanes thinks that the economy 
is still well below full capacity and can 
run at its present speed for quite a long 
time — generating more jobs — before 
any danger of inflation appears. 

Mr. Sarbanes is running for re-election 
in Maryland this year, in a Democratic 
Senate he would be the next chairman of 
tiie Banking Committee. If he is right, it 
would be possible to get employment 
higher than is likely at present interest 
rates. If Mr. Greenspan is right, faster 
growth would mean inflation and reces- 
sion. There is no simple arithmetical rule 
to show who is right It is a matter of 
judgment and how much risk the country 
is willing to run in order to get employ- 
ment somewhat higher. 

“One of the best signs that we still have 
ample slack in the labor market” Mr. 
Sarbanes said, “is the dearth of people 
coming into the labor force." But maybe 
not After previous recessions, the labor 
force has generally grown strongly. The 
senator is correct in saying that it has not 
happened this time. But last winter the 
labor force as a proportion of the total 
adult population hit a record high, and 
unless you think that this proportion is 
going to rise indefinitely, you are entitled 

to wonder bow much slack really remains. 

Economic growth is the rise in the 
number of people working multiplied by 
the rise in productivity. Mr. Greenspan 
believes that productivity rises fastest in 
times of low inflation. Mr. Sarbanes is 
skeptical, but Mr. Greenspan argues that 
many businesses take productivity seri- 
ously only when they cannot keep raising 
prices. The issue here is whether low 
inflation is important for high growth. 

The unemployment rate for the past two 
months has been 6 percent. Reagan~Bush 
policy pushed it as low as 5 potent in early 
1989, with the result that the inflation rate 
shot up above 6 percent in 1990 and the 
economy slid into the 1990-1991 recession. 
Pushing the limits of employment can be 
dangerous, and the margin of error is 
narrower than Mr. Sarbanes thinks. 


Other Comment 

Hatred and Reconciliation 

Hatred and fanaticism have not had 
their last word in the Middle East Each 
new step on the path of peace, each 
handshake between erstwhile enemies, is 
an act of sacrilege in the eyes of those 
who have sworn to do everything they 
can to keep the sons of Abraham from 
living, one day. in reconciliation. 

•Israeli and Arab leaders [must] coura- 
geously pursue the peace process in order 
to mar gin alize their enemies stiD more. A 
series of attacks, however murderous, will 
not be sufficient to kill peace. 

— Le Monde (Paris). 

International Herald Tribune 



RICHARD McCLEAN, Publisher A Oritf Executive 
JOHN VINOCUR, EseaaeeEOue A VkePitatkr* 



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P ARIS — In the French-held security 
zone in southwestern Rwanda, there 
has been a sudden outbreak of destruction. 
The Hutu people who stayed, believing that 
the presence of French troops made them 
safe, have been pillaging their hospitals, 
factories, hotels, public buildings, shops. 
In some places, the economic structure of 
daily life has been wrecked overnight. 

A correspondent of the Paris daily Li- 
beration quotes a medical assistant at what 
had been the modem hospital in the town 
of Bushenge: “It was like a collective sui- 

There is near complete collapse 
of die moral structure of society 
in places like Ruanda, in part 
the result of a desperate and 
ignorant effort to 'modernize. 9 

ride." Suddenly people said to one anoth- 
er, “ *We have to go, to hide,’ " she said. 
Local officials, the powerful, those with 
means, went first, then the rest. 

They went because they beard that 
France might leave in August when its UN- 
mandate in Rwanda runs out The United 
Nations is supposed to send troops to 
replace the French, but they do not trust 
that to happen. The exodus from tbrir part 
of the countty threatens to resume at the 
■tame time as m the north, at Goma and the 
other refugee camps in Zaire, the aid agen- 
cies are beginning to convince some of the 
afflicted hordes of refugees to go home, to 
where the harvest is ripening. 

Elsewhere in Rwanda, in the areas held 
by the new Tutsi-led government, no one 
seems entirely certain what is going on. 
There have been some reassuring reports 
and promises of impartial treatment On 

the other hand. International Red Cross 
officials in the Rwandan capital of Kigali 
have expressed “disquiet" at the lade of 
information available on the fate of pris- 
oners taken by the Rwanda Patriotic 
Front’s forces. UN officials decline com- 
ment on reported “disappearances.” 

Refugees inside the government-held' 
territories reportedly still lack permission 
to go back to their homes. Much of the 
country now is empty of civilians; it has 
become a forbidden security zone. Journal- 
ists at Rwanda Radio whoagree to work far 
the new government are given political “re- 
education," in which “imperialism" is held 
responsible for Rwanda’s plight. 

Hie civilians named to ministerial posts 
in the new government “of national recon- 
ciliation'’ seem still in the dark about the 
government’s plans, and the military mem- 
bers, including the Patriotic Front’s mili- 
tary chief and the apparent strongman of 
the government, Paul Kagame, remain in 
the shadows. The tragedy of Rwanda has 
yet to find its conclusion. 

That many Rwandans seem to have 
abandoned themselves to their own de- 
struction has an uncanny quality. Possibly 
it is ample resignation to the inevitability 
of being done to as they did toothers a few 
days earlier. Revenge is inexorable. 

Something of this can be encountered 
in Bosnia with drunken bands of ordinary 
men fresh from the murder of their neigh- 
bors. They, too. have seemed the damned 
who knew they were damned. “The gale 
of the world,” as the wartime Ghetnik 
leader Draja Mihail ovitch put it, has car- 
ried them away. 

There is evil in these things. There is 
near complete collapse of the moral struc- 
ture of sotiety in places like Rwanda, in 
part the result of a desperate and ignorant 
attempt to “modernize." 

There was an important reflection on 
this in the February issue of The Atlantic 

Monthly by Robert D. Kaplan, who had 
been travefing rn West Africa, where the 
aid of colonialism, the collapse of artifi- 
cial governments, the explosion and d& 
placement of populations, disease and 
anarchic tribal and warlord conflict are 
creating conditions that he compares with 
those of Europe during the- Thirty Years 
War. He foresees the same thing develop- 
ing in parts of the Middle Bast, the Indian 
subcontinent and Latin America. 

However, the Thirty Years War was 
about something. Even the Yugoslav war is 
about somethings The anarchy that Mr. 
Kaplan describes is abenk nothing. It is a 
chaotic disintegration of society, 
with it mindless destruction not only of 
people but of their environment — - the 
forests, the soli, the water. 

He' sees in tire future “a jagged-glass 
pattern of city-states, shanty-states, nebu- 
lous and anarchic regionalisms." He thinks 
such developments may be mimicked in 
the United States, intensifying racial po- 
larities and sn rial • fi npwintatinn go that 
American society in some degree could be 
drawn into this chaos. 

Certainty what has happened in Rwan- 

da, Sara Leone, Liberia, .Gutoct. - and 
Zaire is in danger of being igauajad m 
nearly all of sub-Saharan Africa. The. at- 
tack cm traditional cultures byjnnk- Wcst- 
onizafion, as by demographic growth and 
economic decline, fully justifies ttys worst 
fears. The key issue is cultural resistance. 

' The non-Westem societies with a coher- 
ent view of themselves and an intact struc- 
ture of values will survive. This _ means 
Japan, Korea and most of East Asia, as 
wril as most of the Islamic wand- Islamic 
fundaoreotaHsm in this respectis a positive 
phenomenon. It is evidence of Islam fitt- 
ing back to defend itself. - - 
Postcolonial Africa’s resources for cul- 
tural resistance are few. The culturally 
burned-over regions of the ex-Soviet 
Union are dangerous terrain. Balkan con-, 
fly*, on the other hand, is rooted in na- 
tionalisms that are {often pathologically) 
positive assertions of identity; Nonethe- 
less, what is h ap pening there contributes 
to. Mr. Kaplan’s dystopia, all too plausi- 
ble. in winch overarmed and culturally 
uprooted men create a moral moonscape. 

International Herald Tribune 
a Eos Angela Tones Syndicate. 

Both Options in NATO’s Bosnia Dilemma took Bad for NATO 

W ASHINGTON — A prima- 
ry objective of American 
foreign policy for the last half 
century nas been to strengthen 
NATO. But the crisis in Bosnia 
may be NATO's last gasp. 

rejection of 

By Charles William Maynes 

the Bosnian Serbs’ 
the settlement pro- 
posed by the five-power contact 
group, the United Nations sec- 
retary-general, Butros Butros 
Ghali, has proposed the with- 
drawal of UN peacekeepers in the 
forma Yugoslavia. He reasons 
that members’ support of this ef- 
fort in personnel and money is 
not sufficient for the United Na- 
tions to continue the mission 
safely. The troops, 35,000, are too 
few to police a settlement and too 
weak to impel a settlement. 

pass to NATO.^nch faces the 

the Bosnian ierbs fon not accept- 
ing the proposed compromise. 

On Tuesday, UN forces in Bos- 
nia requested increased NATO 
warplane surveillance of viola- 
tions of the heavy weapons ban in 
the area around Gorazde. And 
the nationalist Serbian leaders 
threatened to reimpose a block- 
ade on Sarajevo. 

The alliance may soon be 
called on to intervene in the 
conflict The effort to cany out 
these tasks will expose many of 
the hidden weaknesses of NATO 

in the post-Cold War world. 

Many current proponents of 
NATO expansion follow in the 
footsteps of George Bush and say 
that NATO’s new enemy is not 
another country but instability it- 
self, the kind witnessed in Bosnia. 
If the goal is suppression of insta- 
bility outside of NATO's defense 
perimeters, then troops on the' 
ground will be required. Sup- 
pressing instability is like sup- 
pressing crime — it requires po- 
nce on the street This is a radical 
change in mission for NATO. 

Historically, the defense alli- 
ance has attempted to influence ‘ 
the external behavior of its de- 
clared enemies. It used military 
threats to persuade its adversaries 
to respect certain limits in their 
external behavior. But the sup- 
pression of instability requires, 
that NATO attempt to force the 
population of states to respect 
certain limits in their internal be- 
havior. That is a daunting and 
dangerous task. 

If during the Cold War Mos- 
cow or Washington had threat- 
ened the use of force to compel 
internal political changes — an 
end to the Gulag or equal rights 
for American blades — World 
War IU would have ensued. Gov- 
ernments will fight rather than 
submit to such a diktat Out 

NATO, which operates by consen- 
sus, attempt such a task without 
equal sacrifices from all members? 

Certainty, NATO’S days will be 
numbered it American, British 
and French soldiers die in an ef- 
fort to impose stability in Eastern 
Europe while Germany, whose 
interests would be most affected, 
refuses to participate. 

At the same time, is it conceiv- 
able that Germany would permit 
its troops in the foreseeable fu- 
ture to participate in a punitive 
militar y effort to impose stability 
on otha parts of Europe?. The 
German high court did recently 
rule that German participation in 
peacekeeping is not unconstitu- 
tional, but to suppress instabil- 
ity, peacekeeping is not -enough.: 
Peacemaking is required. 

With the memory of World 
War n still fresh, will other Euro- 
pean states allow Germany to 
participate in punitive expedi- 
tions even if the Bundestag ap- 
proved such a step, which is al- 
most inconceivable? It was hard 
enough for the French to allow a 
few German troops in the Euro- 
corps to parade down the 
Champs-Etys6es on Bastille Day. 

If NATO troops do attempt to 
pohee Bosnia, it is likdy to re- 
main a lengthy effort involving 
several years. Moreover, it is like- 

Keep Watching Hussein the Survivor 

King Hussein’s 40 years 
atop Jordan, survival has meant 
refusing to make peace with Is- 
rael This week in Washington, 
the longest reigning Arab ruler 
accepted that survival may now 
depend on doing the opposite. 
He edged toward accepting a 
formal peace treaty. 

Concern for national and per- 
sonal survival not concern for 
peace, brought King Hussein to 
the White House South Lawn 
cm Monday to shake Prime 
Minister Yitzhak Rabin’s band 
and promise to war no more. 
The ceremony should be seen 
first of all as a monument to the 
king’s fine instinct for making a 
virtue out of necessity. 

That is not to denigrate the 
ceremony, or King Hussein. To 
be king of Jordan is to navigate 
constantly among forces that 
could destroy bom the monar- 
chy and the politically divided 
state that was created as a base 
for the Hashemite throne. King 
Hussein has kept both intact 
through a lifetime of maneuver 
and playing a king's gambits 
brilliantly. To criticize him for 
putting survival above all is to 
criticize the sky for being blue. 
But his predicament means 
that the wold should not as- 
sume that a separate Jordanian- 
Israeli peace treaty is now im- 
minent or even inevitable, as 
Clinton administration spokes- 
men suggest. It is in neither 
King Hussein's interest nor his 
nature to give a commitment 
that completely eliminates his 
freedom lor maneuver and his 
ability to redraw alliances as 
circumstances change. 

King Hussein in Washington 
was not Anwar Sadat going to 
Jerusalem, or even Yasser Ara- 
fat coming to the White House 
last September. Mr. Sadat and 
Mr. Arafat each crossed a Rubi- 
con that they could not re-ford. 

By Jim Hoagland 

They argued a few years ago 

They defied their key constitu- 
encies, uncertain if they would 
be followed across the river. 

King Hussein, adept and ex- 
perienced at changing directions 
while staying afloat on the vola- 
tile river of Arab politics, is still 
in midstream. He has cultivated 
and shaped alternative constitu- 
encies in his kingdom. He never 
gets too far bom one of than. 

Just as he threw in his lot a 
few years ago with the desperate 
amt vengeful Arab nationalists 
backing Saddam Hussein, he 
turns now toward the large 
group of his countrymen who 
see peace with Israel as Jor- 
dan’s best bet for the future. 
This turn also puts him at odds 
with the Muslim fundamental- 
ists who benefited from his 
sympathies in the recent past. 

Like a arcus rider jumping 
from one horse to another with- 
out missing a beat, he has for 
years alternated prime ministers 
and cabinets according to his 
inter-Arab political needs of the 
day. His stable included pro- 
Syrian teams that could easily 
be shunted aside for pro-Iraqi 
or pro-Saudi clusters. Signifi- 
cantly, he himself kept the 
American portfolio, at least 
until his flirtation with Saddam 
soured Washington on him. 

That was a historic nrisjudg- 
ment that he now attempts to 
rectify, through Israel Sad- 
dam’s defeat, the collapse of 
confrontational Arab national- 
ism and the demise of the Soviet 
Union mean that America is left 
as the king’s only option — for 
now, and perhaps for good. 

This does not mean that be is 
a pure opportunist lacking aS 
principle. Nor is he the fright- 
ened, pliable puppet described 
by some of his more patmuzing 
American apologists. 

because he feared that the Iraqis 
would kill him if he did noL The 
same apologists now say that 
the only reason Ik does not sign 
a peace treaty with Israel is 'be- 
cause he fears that the Syrians 
will kfll him if he does. 

The king has his own,. more 
substantial reasons to act as be 
does. Many of them have to do 
with the fissures that beset a 
country that is now 60 percent 
Palestinian in population but 
stQl dominated in many ways by 
the original East Bank Bedouin 
society that tix* root thoe un- 
der the Ottomans. 

The British carved Jordan out 
of the mandated territory of Pal- 
estine to repay Sing Hussein’s 
ancestors for their hap in World 
War I and to compensate them 
for having lost Mecca and the 
rest of what became Saudi Ara- 
bia. Jordan was created by an act 
of wjfl. King Hussein maintains 
it by a constant display of wflL 

The UJ5. Congress should 
keep that in mind as it considers 
the administrations plea to 
write off Jordan’s $700 ntiflion 
debt to the United States and to 
think about providing new aid. 
President Bui Clinton dearly 
sees the debt write-off as a re- 
ward to King Hussein for dear- 
ing the way for a final peace 
treaty and solidifying load’s 
acceptance in the Arab world. 
Put aside qualms about the 

for doing the right 
; practical point is that 
he has not wholly committed 
Jordan to full peace. Until he 
feds that he can. Congress 
should maintain some leverage 
ova him. Congress should not 
yet totally wipe die date dean. 
It should keep a respectable pile 
of Jordan’s debts on the books 
until a full treaty is signed. 

The Washington Past. 

ty to fail unless the United States - 
participates vigorously on the 
ground — a move certain to face 
fierce opposition in Congress, 
since the Clinton administra- 
tion’s position until now has 
pledged the use at UJSL: troops 
only to enforce a peace treaty: 
signed by all sides, the opposite of 
the situation that nowprevafls. •' 

. To complkiate matters furtha, 

; _ NATO’s objectives would have to/ 
/be sufficiently balanced to receive 
Russian support or acquiescence. 
Russian otyectirm in the form of a 
flow of arms to Serbia would im- 
mediacy bring to tiie surface 
sharp differences of opinion 
''*■ among ktyNATOriietnbers. 

The is, as the war in Bos- 

nia painfully demonstrates, 
NATO will be largely irrelevant 
; to the traumas now afflicting Eo- 
rope; mdera balanced mOitazy ef- 
forts involving shared sacrifice 
can be initiated. And that has 
proved to be^ if Bosnia is any 
example, most difficult. 

One argument for expanding 
NATO eastward has been a bdief 
that NATO coni 
straining lid on 
ethnic conflicts in ] 

But this theory, if taken 
means that NATO most move east 
to Rnsria’s borders, or that Russia 
must move its security zone west 
to meet NATO’s new frontier. 
Otherwise, the territory in between, 
will be in a security vacuum. NA- 
TO’s new mission may therefore 
lead to Europe’s new division. 

Ironically, many East 
. an states seek to enter NAl 
iy when membership may 
most dangerous. 

For decades, NATO members 
enjoyed security without being 
asked, to go to war. Now, as East ' 
Europeans bang on the door, the 
organization may receive its first 
combat test. No one has asked if 
the alliance can pass the test 

It. is not. reassuring that one - 
membership applicant, Hungary, 
has spoken of normalizing its re- 
lations with Belgrade Mid in- 

formed NATO last F« 
that it wanted AWACS aircraft 
to vacate Hungarian airspace if 
NATO used its UN mandate to 
order air strikes against the Serbs. 

Many observers call for an ex- 
. ganri oa of NATO. Fcwask what 

ta the new members enter. 

The Bo mra ^cri^^p^w^^e 

as currently configured can serve 
as Europe’s policeman. / . _ 

Hoe there is a dOemmai So 
long as NATO remains a dosed 
dub, it will riot be accented in 
many {daces outride of NATO as 
a neutral pcacefcegnrcforce. Yd 
'became of the cbangSnanireot 
tiie mSitaxy task — influencing 
stales’ internal behavior, not ex- 
ternal behavior —and the Jack of 
outride acceptance ok NATO’s 
new role, many NATO members 
win be reluctant to participate in 
- peace enforcement activities. Un- 
less aS participate, the future of 
the organization is in jeopardy. 

Fen some time, NATO has 
been a defense alliance without a 
dear purpose. If its new purpose 
is the suppression of ethnic con- 
flict and the enforcement of inter- 
national norms, if should make 
clear that any European state that 
supports those objectives is eligi- 
ble for membership. • 

That way; if Russia evolves in : 
the direction we hope, NATO can 
cease to be a defense alliance, for 
Europe wtil be a continent with- 
out enemies. NATO could then 
become part of some pan-Euro- 
pean structure that reaches from 
Cite Urals to Portugal and that 
tries to uphold the standards that 
are bong violated every day in 
the forma Yugoslavia. 

NATO therefore faces a diffi- 
cult choice. A failure to actin 
Bosnia will destroy its credibility. 
A decision to act may undermine 
its internal cohesion. 

The writer, editor of the quarter - 
fy For eign Polity, contributed this 
comment to The New York Times. ' 

1 LKTCNG the arms embargo would be a mistake. More weapons 
/ would mean much more bloodshed. The Muslims could he 
compietdy defeated, winch would be a tragedy. Bnt their victory 
would also be tragedy, since it would bring extremists to power in 
Ser bia an d probably its entry into war. . 

** constitutional position of ■ 
Serbs m Bosnia be dearly defined should be carefttihf.cotiadaed. 

GmktL 8 ? fc ^ h®? 18 ru]cd and 

Groats^ a fear mat their leaders have shamelessly exploited. 

•The international peace plan implicitly accepts theidea that Bpsni- 

re ^? red * Nothing win be lost hy ^Eng 

tins exphat and guaranteeing the autonomy of the’ Bosnian Seths. 

—Aleksa Dftlas, commenting in The New York Time i ; 


1894?; Japan-China War 

SHANGHAI — Dematches re- 
ceived here this rbo mmg [July 27] 
report that war has been declared 
between China and Japan. The 
King of Corea is stated to be a 
prisoner in the bands of the Japa- 
nese. The casus belli was provided 
by the Japanese attack upon Chi- 
nese transports. The naval battle 
took glace three days ago, and in 
this right originated the report 
that the Japanese were bombard- ttatfdia, calling 
mg the Corean coasts. The Chi- to the dr 

nese loss is very great, ' post-war public' 

ation to hdp fin 
construction dur 

s»on period. “If < 
apubHc-wori- ~ 
wD give the 

roent withdraw its recogniti 
the Carranza Government 
»aid that American troops si 
oe kept m Mexico until a 3 
pwernment is established. Ir 
mg the intervention he said , 4 
not a jingo. I ask only fa 
protection of American live? 

1944: Jobg After the War 

1919; Occupy Mexico? 

NEW YORK— The military 00 - 
cnpation.of Mexico by the United 

Stales Army was advocated in the 

House of Representatives by R^>. 
iescntativcHudtoeth, a Democrat 
of Texas. The address was enthu- 
siastically applauded. He also 
urged that the American Govern- 

Challenge: Make the System 
Work for All Americans 

By E. J. Dionne Jr. 

TX/ASHINGTON — It Is easy to defining ifie whole problem facing 

* ■ SOllIld rndlPAl Muctnr hotnwt klonlr A ma i ieo oc mtrAhnnn -- - 

ufuaQy not radical at all. They don’t 
challenge anybody to do anything 
except smolder in resentment. They 
don’t lead to chany By contrast, 
ideas built on cool reason and the 
possibility of action often sound 
moderate. But they can be gen uin ely 
radical in their analysis ofwhal is 

wrong and of what needs to be done. 

That is what lies behind the iinpor- 
jant speech given Sunday by Hugh 

Most whites are not racist in the Bull 
Connor, segregationist senses 
Racism persists, but as Mr. Price 
sad, “for mflHons of blade folk who, 
thanks .to the dvil rights movement, 
have Hooded into higher educa t io n, 
big corporations and their own main- 
stream businesses, these clearly are 
the best of times.” Even liberal whites 
have begun to dismiss tire "it’s all 
white racism" explanation of inner- 

t^btiy get a Jot of praise for Ms 
denunciation of anti-Semitism, his 
gnph a si s on personal responsibility, 
Ms call for cooperation across racial 
lines and Ms insistence that while 
racism remains an i m port an t prob- 
lem, it cannot explain all that ails the 
African-American community. 

But if the praise stops there, it will 
miss a central point of Mr. Price's 
speech and the genuinely radical 
message that underiies it. Mr. Price 
is challenging complacency by argu- 
ing that there is a deep disorder in 
the American economy that is lead- 
ing it to fail a large class of Ameri- 
cans — including many African- 
Americans but also many others. 
Mr. Price argues that ‘'the global 

Fa rra khan ’s anti-Semitism is a grave 
moral evil, as racism is a grave moral 
evfl. But anti-Semitism, Hke racism, is 
something else as well: It’s a con job. 
Anti-Semitism asserts So mething ut- 
terly false — that “the Jews” are 
responsible for the suffering of Afri- 
can-Americans — and thereby di- 
verts attention from the real prob- 
lems facing Ae inner city. 

Nationausni fails in another re- 
spect: If the problems of African- 
Americans are defined solely in racial 
terms, then the solutions come down 
to federal programs that set aside a 
portion of government business for 
minority con tractors. But on behalf 
of the poor and the unemployed of all 
races, Mr. Price is asking for much 

all but collapsed for inner-city folk,” 
Mr. Price declared. “There are fewer 

His is not a soft multtracaatism, but 
a hard challenge. He chnTiwigeg well- 
off white Americans to make changes 
in an economy that works for them 
but not for everybody. He dtaHeogps 

and fewer jobs for low-skilled work- well-off African-Americans to a new 
ers, especially males. And the wages engagement with inner-city children. 

for those jobs that exist are just 
plain lousy, all too often at or below 
tbepoveaty line;” Mr. Price said. ‘ 
Government, he said, “largely 

He challenges less affluent whites to 
see that the- workings of the new 
economy give them a powerful shared 
interest with African-Americans in so- 

a voids the ideologically uncomfort- dal justice. And be challenges the Af- 
able question of whether the market rican-American poor to fight the cul- 
econonry is actually creating enough tine of violence and despair, 
jobs for everyone in the inner caty What is the alternative to Mr. 
who wants to or is expected towrafc* Price’s challenges? Mr. FarraHian is 
Mr. Price offer s the unfashionable gai ni n g ground in the inner dty pre- 
but compelling view that if a lade of risdy because of the level of suffering 

jobs is the problem, die government there. If advocates of multizadalism 
should consider creating a “labor- do not offer realistic hope, all the 
intensive public enterprise to perform dennndations of Mr. Farrakhan will 
services valued by the taxpayers.” be useless. As Julius Lester put it in 
To Ms credit, Mr. Price is throwing the current issue of Dissent: “Farrak- 
down the gauntlet to both Mack sepa- han offers an ugly and hateful vision, 
ratism and white indifference. That It is no longer sufficient to express 
takes courage, because neither ride disapproval. It is lime we offered an 
really wants to listen. Maybe that is alternative. If we do not, we cede 
why his speech got so little publicity, moral authority to those who, in their 
You get more ink and televir ~ ' ne self-hatred, hate us aD.” The alterna- 
by linking up with Louis Farrakhan. trve Hugh Price is offering is that 

. o » 

m ** 



■ m 

K, CABLE in Tte date l«J Mol iTofoow* CAW ! | i *» 


ism and black nationalism 

t saparat- 
is that by 

Americans help each other. 

The Washington Past. 

'President’ of Bosnia 

While those of us who urged a 
stronger stance against Serbian ag- 
gression in Bosnia might have 
wished for more, the five-power 
peace plan is certainly the best op- 
tion now available, willingness to 
impose it tty force, without further 
delay, will hie the last — but redeem- 
ing — test of the credibility of the 
four Western powers. It is incum- 
bent on than (Britain included) to 
inform the Russians, and the Bosni- 
an parties, that this is the position 
they will take on July 30, ana imple- 
ment on Aug. 1. 

There is, nonetheless, one impor- 
tant concession the five powers 
should make to Radovan Karadzic, 
leader of the Bosnian Serbs, now. 
Adjustments to the map, a zero-sum 
game, are dearly not acceptable. 
But the myth of Bosnian unity, 
dearer to the hearts of international 
lawyers than to the Croats or Mus- 
lims, clearly permits imaginative in- 
terpretations. History provides at 
least one useful example. 

The Holy Roman Empire, a 
“Reich” that did indeed last a thou- 
sand years, passed its last centuries 
with no government, no territorial 
administration, no armies, embas- 
sies or other external attributes of 
sovereignty. These were all the prov- 
ince of states which were full sub- 
jects of international law, such as 
Prussia. Some of their territories 
were “within” the Empire, others 
were not. The kings of Prussia 

warred on the Hapsburg rulers of 
Austria, but still participated in the 
election of the same Hapsburgs to 
the imperial crown. 

With whatever trappings would 
be appropriate, “presidents of Bos- 
nia” could be elected on a rotating 
basis by the three communities. 
Otherwise, each would be free to 
make its own internal and external 
arrangements. The Bosnian Serbs 
could get access to the sea through 
Serbia, and even a UN seat 

The attributes and exercise of sov- 
ereignty being sweet, 1 very much 
doubt that Mr. Karadzic would ever 
take the last step of full integra- 
tion into Serbia. 



Plotters Against Hitler 

T hank you for Thomas Fleming’s 
artide about German resistance to 
Hitler f'The Fate of These Resisters 
Proved a Tragedy for AIL ** Opinion, 
July 21), Seldom in my 72 years have 
I, a former Wehnnachl officer, been 
as deeply moved. 

Was there any doubt yet about 
Roosevelt’s (and Churchill's) deter- 
mination to be done with the Ger- 
mans and not, in the first term, with 
Hitlerf Mr. Fleming is right: Mil- 
lions could have been spared if only 
one of the Germans who desperately 
sought contact with the Allies had 
been heard. 



Hie 9th Was Also There 

Regarding "From the Beaches to 
the Seine: Surprise. Sacrifice and 
Some Good Luck” (Opinion, June 1) 
by John C A us land; 

The port of Cherbourg was not cap- 
tured % the 4th and 79th divisions 
alone. They were there, but so was my 
division, the 9th US. Infantry. Its men 
cut across the Cherbourg peninsula 
and enveloped the port’s western half. 



Close Race in Germany 

A news report in your June 25 
issue said that opinion polls indicat- 
ed that Chancellor Helmut Kohl’s 
party had “pulled clearly” ahead of 
the rival Social Democrats. But the 
margin of error in the data cited 
would make it impossible to tell 
which party was clearly ahead. The 
need for careful interpretation of 
polls cannot be overstressed. 



A Cop Well-Covered 

I'm writing to let you know how 
much I enjoyed the Tribune’s cov- 
erage of the World Cup. Your great 
articles and photographs had me 
reading the papa back-to-frooL 
Special thanks for the fine writing 
of Ian Thomsen and Rob Hughes. 


Merano, Italy. 

They Wait in a Dark Plane , 
To a War but Not at War 9 

By Georgie Anne Geyer 

Z AGREB, Croatia — We had left 
this beautiful old Hapsburg city 
at dawn, sure and eager to be in 
Sarajevo before noon. I was both 
excited and apprehensive, for Sara- 
jevo was the city whose suffering 
symbolized this terrible war. 

The sight that greeted us — I was 
part of a small group of journalists 
— when we arrived ai Pleso Air 


Base just outside of Zagreb seemed 
somehow familiar. 

Bnt comparing the milling sol- 
diers, flak jackets and helmets in 
hand, with almost any other war 
didn’t seem right 
Here, in place of any one national 
army, there were Brits and Nigeri- 
ans. French and Nepalese, Russians 
and Ukrainians — and they were, as 
UN officials put it “in a war but not 
at war.” Yes. that seems a little bard 
to sustain. Perhaps that is why the 
Norwegians, who run one of myriad 
jerry-built air forces here, call theirs 
“Maybe Airlines.” 

At Pleso, we were issued bright 
blue flak jackets and helmets. 
“What do we do with these,” I asked 
impertinently. “Sit on them?” 

Soon we were inside the dark inte- 
rior of a huge Russian troop carrier, 
ready for the bour-Jong trip to Sara- 
jevo. We waited ... and waited 
. . . and waited. 

“Damn Croats,” one weary sol- 
dier snapped. “They’re always 
holding the planes back — just to 
be important.” 

Thai the soldiers around me. 
Swedes, Norwegians and Canadi- 
ans, began to iall 
“This is a ridiculous war.” one 
said. “None of us can figure out why 
in God’s name we’re hoe:” “in our 
area,” said another, “we hex shoot- 
ing all the time, but we are forbid- 
den — r get that, forbidden! — to 
know who is shooting. UN rules!” 
Even in the dark. I could sense him 
shaking his head. 

Thai the pilot’s voice came on the 
P.A. system. “No flight today,” he 
said. “Sarajevo’s under fire.” 

And so we stumbled and heaved 
and grumbled our way off, clumsy 
flak jackets and helmets in band, to 

Letters intended for publication 
should be addressed “ Letters to the 
Editor" and contain the writer's sig- 
nature. name and full address. Let- 
ters should he brief and are subject to 
editing. We amnot be responsible for 
the return of unsolicited manuscripts. 

find later that the Serbs bad “ex- 
pressed" their utterly predictable 
feelings toward all of us. 

Only the day before, they had' 
contemptuously rejected the “take? 
ii-or-leave-it” Western and Russian 
peace plan. These actions were 
meant as their exclamation point at 
the end of the “NO.” 

We soon learned wbat had hap- 
pened in Sarajevo. Two incoming 
planes, a Russian Antonov and a 
U.S. Starlificr, had been Mt within 
20 minutes of each other that 
Thursday morning. July 21. as we 
waited in the darkness. Without 
question, it was Serbian machine^ 
gun fire One American security 
man was hit from below as he sat in 
the plane by machine-gun fire that 
pierced the Russian plane's floor. ' 

“You see,” 1 told my colleagues. 
“We SHOULD sit on our flak jack- 
ets and helmets!” 

That same morning, the Serbs 
attacked a French mission trying to 
erect anti-sniping barriers on Sara- ' 
jevo’s “Sniper's Alley,” along the. 
recently reopened tramways. Five 
French and Ukrainian peacekeep-. 
ers were seen on CNN, throwing 
themselves on the ground under 
Serbian bombardments. 

The French commander in Sara- 
jevo, General Andre Soubirou. was 
heard, as his men fell on him to 
protect him, shouting words that 
once would not have been proper 
even for soldiers’ ears. 

When I asked our press hosts, 
from the UN Protection Forces, or 
Unprofor , why the enraged general ' 
and the “peacekeeping” troops did 
not fire back, the answer was vin- , 
lage neutralist UN -speak. ! 4 

“Because the Serbs were firing* 
OVER them,” one official said. 
“They can only fire back if they are 
firing AT them.” 

At that moment I was grateful to . 
whatever gods still watch ova any- 
body in this terrible place that our . 
plane did not “make it.” We would ■ 
have been the next plane in. 

Before we turned in our flak > 
jackets for good, it suddenly hit me ! 
bow similar tiiis situation of being f 
“rit a war” was to Vietnam Here, 
too. civilians and soldiers are > 
placed in impossible situations by . 
impossible restrictions. Stultifying a 
micromanagement from afar effec- 
lively destroys any chance of “win- 
ning.” The Serbs continue con- 
temptuously to manipulate, while ( 
they go on killing. 

Given these realities, sitting on.’ 
one’s flak jacket seemed one of the 
day’s more reasonable suggestions. t 
Universal Press Syndicate. 



The Manipulation of Fact 
in America 

By Cynthia Crassen. 272 pages. 
$23. Simon A Schuster. 

Reviewed by 
Michael Fumento 

I N an increasingly skeptical 
a g e , there’s one tool that 
continues to wow ’em: scientific 
data or data that’s been scientif- 
ically collected- Cynthia Cros- 
ses a Wall Street Journal re- 
porter, argues that there is 
indeed such a thing as objective 
truth, but that when the bottom 
line cranes into play, such “sci- 
entific” studies may be the Last 
place to find iL 
Consider the oat bran mama, 
which was based originally on a 
study reflecting all of a 3-3 per- 
cent — statistically insignifi- 
cant — drop in cholesterol 
among persons who had oat- 
meal or oat bran added to their 
diet Tbe grain that Dr. John- 
son's dictionary claimed was fit 
only for horses and Scotsmen 
became “the next miracle 
food,” as one newspaper put it 
Quaker Oats pushed that line. 
Next thing we knew, oat bran 
had been added to more than 
300 products, including potato 
chips, toothpaste, and licorice. 


• Krista Sager, head of the 
Greens Party faction in Ham- 
burg, is reading the German 
translation of Marion Zimme r 
Bradley’s M The Forest House "a 
romance novel steeped in my- 
thology, rdigjon and politics. 

“Her books are always about 
power struggles between old 
and new ways of thinking.” 

( Brandon Mitchener, 1HT) 

i\ n 

When another major study ap- 
peared that found no special 
cholesterol-lowering property 
in oat bran, Quaker Oats (fid 
practically everything it could 
to destroy its credibility. 

But what about pharmaceuti- 
cals? Crosses notes that a re- 
searcher reviewed 107 pub- 
lished studies comparing a new 
drug and a traditional therapy 
and ' found “studies of new 
drugs sponsored by drug com- 
panies were more likely to favor 
those drugs (ban studies sup- 
ported by noncommercial enti- 
ties. In not a single case was a 
drug or treatment manufac- 

ny found inferior to another 
company’s product.” 

In au fairness, a company 


By Alan Truscott 
A player with an extremely 
strong hand may find it 
iard to believe that his partner 
s extremely wo*. T * i most 
iopular way, is the double neg- 
itive: after responding two dia- 
oonds to a strong tfffiajd I two 
iubs, the weak hand tads three 

s to make the mind two-dre 


trength stiU somewhat undor. 

Another disadvantage ts that 

umeone may forget what is gg- 
ST raw as South did on tte 

EUf — — _ - 

marh seven cjuds- 
““j ^uTniav began m Six 

^ North announcoda WJ; 

V alert, the 

and led the spade ten for a win- 
ning finesse. 

She repeated the spade fi- 
nesse, ruffed a spade in dommy 
and drew tramps. She cashed 
two spade winners, and made a 
fortuitous overtrick when the. 
heart queen fell at the 12th 

Six clubs was the best avail- 
able slam contract. The oppos- 
ing team rested in three no- 
trump. and North and South 
gain ed 12 imps. 

+ 104 

♦ J 10 6 


♦ 86 ♦ K 9 3 2 

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Neither side «w vulnerable. Tfte . 

















won’t subject a drug to a study 
that mav be pubHdy reported if 

it doesn’t have confidence in 
that product. But these data un- 
derlie a powerful case. 

Crassen shows how careful 
choice of survey respondents, 
selection of data, and control of 
other variables can make virtu- 
ally anything taste better than 
anything rise. 

Political polls fare somewhat 
better, but Crossen identifies an 
amazing number of problems 
that pollsters need to beware of, 
but often don’t Unfortunately, 
her prime example is the polls 
surrounding the Clarence 
Thomas Supreme Court hear- 
ings. Noting that a year after 
the bearings the same pollsters 
that had reported Americans 
believing Thomas now had 
them believing Ms accuser, 
Anita HiD, Crossen argues that 
the pollsters blew it, that the 
Senate acted on the polls, and 
that thus was changed the 
course of history. She never 
broaches the possibility that 
Americans were subject to new 
influences in that intervening 
year. Yet this is what happened 
as feminists turned Hill into a 
symbol of victimization and 
Hollywood weighed in with at 
least three prime-time shows all 
depicting Hfll as the hero. 

To strengthoi her case as 
much as possible, Crossen occa- 
sionally seems to do ha own 
invidious selecting of informa- 
tion. She rightly ridicules the 
cigarette industry’s pseudosci- 
entific claims on direct smok- 
ing, but then curtly dismisses 
the industry’s arguments 
against the EPA report impli- 
cating secondhand smoke in 
thousands of lung cancers. Yet 
the EPA used the same tech- 
nique of combining uncombin- 
able studies that she con- 
demned when Quaker Oats 
used it. Nonetheless, such prob- 
lems as these are not systemic. 
“Tainted Truth” is a terrific 
guide to acreeping disease that, 
as she puts it, will make it “al- 
most inevitable that we will 
eventually lose our ability to 
cope with our problems." It 
should be read by every editor 
and reporter who deals with 
policy issues, along with every- 
one who still believes that truth 
is something to be sought, rath- 
er than manipulated for profit. 

Crossen concludes by provid- 
ing “solutions,” some quixotic, 
others more practical. One 
such: “American schools, 
which have largely ignored the 
explosion of quantitative infor- 
mation in daily fife, can and 
should teach people how to tell 
whether particular sets of num- 
bers are- believable. Learning 
information skills should be as 
important to high school and 
college as a working knowledge 
of literature, science, economics 
Or communications.” 

Add to that the need to teach 
formal logic and say “Amen!” 

Michael Fumento is the author 
of “Science Under Siege: Bal- 
ancing Technology and the Envi- 
ronment.” He wrote this for The 
Washington Past 



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Econom ic j, Biuiineoo and Politico 


T his exceptionally timely conference examines the investment and business potential 
unleashed by the promise of future stability in the Middle East. It focuses not 
only on the reconstruction and development of Gaza and the West Bank but also on 
the investment opportunities in Lebanon. Jordan, Syria and throughout the Eastern 
Mediterranean region. 

This is an event of immediate practical significance for those already doing business 
in the region and those contemplating the new environment. Attendance gives an 
unprecedented opportunity to meet and question the region s key decision-makers, and 
assess the prospect for new initiatives in investment, business and infrastructure projects. 
The impressive group of speakers addressing this important meeting includes: 

IS Abu Ala’a, Economic.* and Trade Afinider, Palestine National Authority 
g Yossi Beilin, Deputy Af mister of Foreign Affairs, Israel 

S David R Bock, A f imaging Director. Lehman Brothers Internal ii>nnl (Europe), London 
19 HE Ambassador Edward PD Djerejian, former VS Assistant Secretary of State for Near Eist 
EH Dr Jacob Frenkel, Governor Bank of Israel. Jeru.<alem 
M Rahrai K 09 , Chairman. The Kof Group. Istanbul 
§ Manuel Marin, Vice Protisknt. European Commission, Brunei* 

g§ HF. Sheikh Ahmed Zaki Yam an i, Chairman. Centre for Global Energy Studies. Lindon 

Conference Location 

TEL: 130 I ) 896021 1/31 1 FAX: (30 1) 8962582 

Situated on the coast and surrounded by 80 acres of 
private land, the Astir Palace Hotel at Vcuitagmeni is 
just 30 minirra by taxi from central Athens and lOjninuies 
from the airport. 

The calm, relaxing atmosphere of the hotel creates 
the ideal climate for focusing on the key issues under 

C o-,* pons p red by 

flrralh lq^ Eribtmc 


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please complete the form below and send or fax to: 

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West led the diamond king. 

p *ge 8 




Study Questions the Role of V itamins in Preventing Cancer 

•» i . . in 1 

By Rick Weiss 

_ Washington Pasi Semce 

W ASHINGTON — Reading the 
news on vitamins is like pluck- 
ing petals from a daisy: She 
loves me ... she loves me 
not They're good for me . . . and now 
they’re not 

Another “not" petal has fluttered to the 
ground. In a four-year study of more than 
700 Americans, moderately high doses of 
vitamins C and E and beta carotene did 
not prevent the growth of polyps tn the 
colon, which can develop over several 
years into colon cancer. 

■! The report was the second in three 
months to suggest that antioxidant vita- 
mins (so-called because they neutralize 
■charged oxygen molecules that harm cells) 
lack the cancer-preventing potential that 
many bad presumed. 

’’ Id April a Finnish study concluded that 

vitamin E and beta carotene, which the 
body converts into vitamin A. did nothing 
to protect smokery against lung cancer. The 
findings were perplexing; after all, other 
studies in animals and humans have sug- 
gested that vitamins and beta carotene are 
potent cancer-fighting compounds. Indeed, 
the reason that researchers initiated the re- 
cent trials was that earlier work had strongly 
hinted that the approach was worth pursu- 

What to make of the vicissitudes of 
vi tamin research? “It’s a complex story," 
sighed E. Robert Greenberg, the Dart- 
mouth epidemiologist who led the most 
recent study of vitamins and colon cancer. 
“There are" just so many things that we 
don't understand." 

Dr. Greenberg does not take vitamin 
supplements, but be stops short of recom- 
mending against them, counseling instead 
an even-keeled suspension of judgment. 
Others, too, have sought to stay the pendu- 
lum of hope and disappointment 

In an unusually scolding editorial New 
England Journal of Medicine editors Mar- 
da Angel and Jenxne Kassircr warned con- 
sumers and the media not to overinterpret 
the latest negative finding, as they have been 
wont to do with earlier, positive findings. 

“People who fell betrayed when they 
learned of a new study showing that vita- 
min E and carotene do not protect against 
cancer should ask themselves why they so 
readily believed that antioxidants had this 
effect in the first place, and why they now 
believe that there is no effect," they wrote. 

There are reasons why science appears 
especially fickle on the topic of food, 
health and nutritional supplements, and 
why researchers have so far been unable to 
reach consensus despite aQ their experi- 
ments and clinical trials. 

One problem is that each of the many 

studies done in animals and humans has 
varied from the others in its combination of 

vitamins and other dietary dements, winch 
mflicws it impossible to compare them. 

The doses of vitamins have also varied 
among studies, and in some cases different 
formulations of vitamins were used — some 
more easily absorbed than others. More- 
over, studies with beta carotene are difficult 
because high doses make people’s skin turn 
yellow, which allows volunteers to figure 
out whether they are getting the real drug or 
a placebo — a fact that can influence their 
confidence and thus their health. 

Several researchers said the biggest 
roadblock to understanding the health 
benefits of food and food supplements 
may inherent to science itself: scientists 
usually study nature by dividing it into 
pieces, they said In doing so they leant 
fascinating details about each component 
of nature but without gaining much insight 
into how the parts fit together. 

mg scientists' attention is “food," simple in 
concept bat m fact overwhelmingly compli- 
cated, made of hundreds of differmt vi ta- 
mins, minerals, sugars, carbohydrates, pro- 
teins, fats, amino acids and other 

Trt gnwtientg. 

“If s considered unsdentific to look at 
everything together— the kitchen-sink ap- 
proach— -but I think we’ve been a little too 
reductionist" Dr. Greenberg said. “My 
inclination now is to go back to looking at 
overall dietary patterns. There may be no 
single thing » any angle food. It may be a 
complex relationship between an these dif- 
ferent ingredients." - 

Paul Talalay, a pharmacologist and mo- 
lecular biologist at Johns Hopkins Univer- 
sity School of Medicine, said it is naive to 
think that any one substance holds the key 
to food’s protective effects. 

“Food doesn't come in the form of a 
pure chemical with a label on the outride,” 
he said. “There is a tendency for scientists 

to focus on the substances Jn vegetables 
that are of interest to to*®* - , . ■ 

of something implies eating tess o { s®®*" 
thi ng else," he said. “If s vay difficult to 
tease these things apart.” 

“People will do almost anything to be 
healthy,” said Carolyn Bernal arc h, dire ctor 
of outpatient nutrition at Geoijptown 
University Medical 

people refuse to do is eat real food. Why? 1 
£5?t know. They'll do anything to av«d 

cooing broccoli or peeling an orange. 

The best advice for now, Bemalardi 
said, is “be very, very wary of any and all 
studies, because nutrition, like all science. 

pure cnenncai wiin a label on tne ontsete, uamsiroummw-*™ *'•£> 

In this case, the complicated mess catch- he said. “There is a tendency for scientists “and stop looking for tne qincx iix._ . 

An Experimental Attack on Toxic Shock 

What kills cells to toxic shock syndrome is a circulating protein, soluble tumor necrosis factor, or T.N.F. Now, scientists ’ ; ' • 
have identified too enzyme that releases it, and in an experimental approach so far used onlYtohritoiaisi they have . ; v 
blocked the enzyme with an inhibithTg compound. • - \ •* ' 

Second Thoughts on 4 Key’ Gene 



O Tumor necrosis factor, or TNF, © TNF is cut free from the cefl surface 
is part of the immune system. by the enzyme TN Fa protease. 

Produced ki small amounts, it When produced kv excess, TNF 

combats tumors and infections. circulates and de-stroys ceBs 

throughout the body. 

Source: fmmunex ftasearchand Dewtapmaot Corporation 

TAW- Vi 

@TNFaprotirintol*^(Wl> ' ; v '' 
prevents. TNF aproiease from. 
detaching the TNFfiom the cell 
surface, (hereby preventing . 
cellular damage. 

! - ' 

The New York T ime, 

New Approach to Treating Toxic Shock 

By Tim Hilchey 

New York Tunes Sernre 

EW YORK — In a novel ap- 
proach to treating toxic shock 
syndrome, researchers in Seattle 
have developed a chemical that 
blocks the formation of a protein responsi- 
ble for the life-threatening consequences 
of the disease. 

The protein, tumor necrosis factor, 
plays a critical role in the body’s normal 
immune response to tumor cells and infec- 
tion but can cause severe damage when 
produced in excess amounts. This is what 
happens in the case of toxic shock. The 
protein exists in two forms, a long form 
that is anchored inside the cell but extends 
outside its membrane, and a shorter form 
that is soluble and is released to roam in 
the blood. Problems occur when too much 
of the soluble form is released. 

Dr. Roy A. Black and a team of re- 
searchers at the Immunex Research and 
Development Corporation have found a 
way to prevent the release of soluble tumor 
necrosis factor into the blood by blocking 
the protease, the enzyme that directs the 
cell to turn it loose. Their findings are 
reported in the British journal Nature. 

The tests so far have been on mice, and 
Immunex officials said more animal test- 
ing must be done before the company 
decides whether to begin the long process 
of clinical trials needed to obtain U. S. 
approval of a drug 

Tumor necrosis factor has been linked 
to a number of autoimmune diseases, in- 
cluding arthritis and multiple sclerosis, as 
well as asthma and transplant rejection, 
said Dr. Steven GiUis, the chief executive 
of Immunex. Biotechnology companies 
have been in a heated competition to find 
ways to inhibit its function. Several widely 

touted discoveries in the field have failed 
to live up to their early promise. 

Toxic shock, a rare form of septic shock, 
a complication of blood poisoning is best 
known for its association with tampon use 
and has also been linked to staphyloccocus 
and strep A bacteria infections. 

Dr. Charles J. Fisher Jr., a leading investi- 
gator of septic shock who is the director of 
critical-care research at the Cleveland Clinic 
in Ohio said the protease inhibitor is “very 
exciting because it is a small molecule" that, 
would be easy to distribute throughout the 
body at the cellular level “Further, it has 
the potential, by virtue of being a small 
molecule, to be made into a medication that 
can be taken orally,” he said. 

Each year more than 400,000 Americans 
are affected by some degree of sepsis. Dr. 
Fisher said. Of those cases, about 250,000 
progress to become septic shock, including 
cases of toxic shock, and more than 
100,000 people die as a result. 

Did Malaria Finish Off Rome? 

, By John Noble Wilford 

New York Times Service 

EW YORK — Digging among 
the ruins of a Roman villa, ar- 
chaeologists have made a maca- 
bre discovery about disease and 
• death in the fifth century A. D„ and per- 
' haps even about the reasons for Attila the 
> Hun’s decision to leave his invasion of 
; Italy unfinished and for the decline and 
i fall of the Roman Empire. 

! The discovery is a cemetery for infants, 
•exovaied over the past two years by an 
; international team led by Dr. David Soren, 
; a classical archaeologist at the University 
■ of Arizona in Tucson. The cemetery over- 
looks the Tiber River near the town of 
Lugnano in Teverina, 70 miles (112 kilo- 
. meters) north of Rome. 

With 49 skeletons already uncovered, 
this is the largest ancient cemetery for 
infants ever found in Italy, Dr. Soren and 
other members of his team said in inter- 
views last week. The tiny skeletons bear 
the first apparent physical evidence of the 
epidemics known from literature to have 
plagued imperial Rome, especially in its 
latter centuries. 

; The evidence, some direct but most cir- 
cumstantial, points to malaria as the cause. 
That is not surprising because the marshes 
around Rome m earlier times were breed- 
ing grounds for mosquitoes, the source of 
!the summer "vapors" blamed for leaving 
people weak or dying with fever. This 
association has been so strong that the 

word malaria comes from the Italian for 
bad air. 

The hasty multiple burials in the infant 
cemetery tell of an epidemic’s swift toll 
long ago. The presence of decapitated pup- 
py skeletons, a raven’s claw and other 
examples of pagan ritual seems to reflect 
the desperation of a people who, though by 
this time officially Christian, revived 
witchcraft and superstitious offerings in 
their moment of extreme stress. 

“The preservation of the skeletons is 
remarkable, and there are all those pup- 

S ies," Dr. Soren said. “There’s nothing of 
oman gods, not anything Christian in ihe 
place, only what might be called village 

UT the Christian influence must 
have been established by then, or 
people would not have even 
thought to have a cemetery 
where newborn children were given proper 
burials. Since Christians baptized infants 
and considered them significant at least 
from birth, they could not merely discard 
dead infants or bury them within houses, 
as had been the earlier practice. 

The discovery, made by Dr. Sonar's 
learn in conjunction with the Antiquities 
Service of Umbria, a government agency 
in Italy, was an outgrowth of the team's 
earlier investigations of the ruins at Villa 
Poggio Gramignano. described in the cur- 
rent issue of Archaeology' magazine. 

Built around the time of Jesus and in use 
until the third century, the villa was unusu- 

al architecturally in that it had a pyramid- 
shaped ceiling over its main colonnaded 
reception halL But the shifting hillside 
bedrock undermined the walls, causing the 
villa’s collapse into ruins. 

The uniformity of the pottery and other 
artifacts among the graves, Dr. Soren said, 
suggests that afi the burials occurred over a 
brief period around the year 450. 

Most of the infants were interred in 
earthen jars. At the lower levels, most 
graves contained a single skeleton; none 
held more than two. At higher levels, there 
were mass graves, each with five or six 
infants. Such a pattern indicates that the 
death rate in the community might have 
been normal at the time of the first burials, 
but it suddenly escalated, as from an epi- 
demic. No adult graves have been found. 

An examination of the skeletons reveals 
that some of those boried were premature 
infants. Others were no more than a month 
old, and others to five or six months old. 
The older children were generally buried in 
more elaborate graves, but the others were 
often interred amid refuse from the aban- 
doned villa, further evidence. Dr. Soren 
said, of the Roman belief that newborn 
infants were not “worthwhile family mem- 
bers and should not be lamented much if 
they died.” 

From the evidence. Dr. Soren said, “the 
likely conclusion, based on the pattern of 
the burials, availability of food and the 
bone analysis, is that malaria was the agent 
of death/* 

By Gina Kolata 

Net v York Timex Sendee 

EW YORK — A newly discov- 
ered cancer gene may be much 
less important than it originally 
seemed, some molecular biolo- 
gists say. At least four groups report that 
the new gene, called pl6, seems to be 
playing a minor role, at best, in mast 

Although the researchers who first 
hailed the gene say the story is not over 
yet, many others say it has become dear 
p!6 does not seem to be mutated in most 

It is an abrupt change of fortune for 
the gene, which, just a few months ago, 
was deemed one of the oust important 
discoveries in the molecular biology of 

When the discovery of pl6 was an- 
nounced, on April 19, it seemed to make 
perfect sense. All the evidence was point- 
ing to such a gene in such a location. 
Molecular biologists had noticed repeat- 
edly that many human tumors had dele- 
tions in their genetic material in an area 
of chromosome 9 that included p!6. 

Moreover, pI6 was directly involved in so often deleted in canc er. B ut ^ey 
controlling the cell-cycle, and any muter they are . becoming increasingly con- 
tions tha t destroyed its (unction would vinced that pl6 is not that gene, 
release a sort of molecular brake on cell ^ Mo recently published reports and 
division. at least two more that are not yet pub- 

So when Dr. Mark H. Skolnick and lished, researchers say that they almost 
Dr. Alexander Kamb. both of the Uni- never see pl6 mutations in cells from 
versity of Utah Medical Center in Salt recently excised tumors but that they 
Lake City and Myriad Genetics Inc. of often see them in tumor cdBs growing m 

Salt Lake City, reported that more than the laboratoiy. 

hall of the tumor cells they had exam- ^ a letter in the journal Science, Dr. 
ined bad a mutated pl6 gene, and that sidransky and his colleagues at 

these cancers included some of the most Johns Hopkins University School of 
common and most deadly human to- Medicine m Baltimore said they had ex- 
nxxs, molecular biologists and cancer- 75 of the lung, bladder, 

specialists hailed the finding. kidney, head and neck, and brain. They 

Several groups of investigators inane- found pl6 mutations in only seven of 
diatdy began to study it. Dr. Skolnick those tumors. In two of the seven tumors, 
and Dr. Kamb had studied cancer cells . the mutations occurred only when the 
growing in the laboratory, -the other in- ' tumors were “of advanced stage,” the 

vesti gators decided to look at cells from 
tumors that came directly from patients. 
And there the discrepancies arose. Rath- 
er than pl6 gene mutations being fre- 
quent, they appeared to be rare. 

The researchers say that they are con- 
vinced that there is an impo rtant cancer 
gene on chromosome 9, in the area that is 

scientists reported. ' 

•"There is obviously an inconsistency,'* 
Dr. Kamb said in a telephone interview, 
adding that part pf the problem might be 
that newly isolated tumors also con- 
tained healthy ceils, which might make it 
appear there were fewer mutated pl6 

Analyzing the Jupiter 

By Malcolm W. Browne 

New York Times Service 

EW YORK — The bad luck of 
the comet Shoemaker-Levy 9 in 
venturing too close to Jupiter was 
m wm a bonanza for amateur stargazers 
and for professional astrophysicists. The 
greatest planetary show in history is over, 
but the scientific insights it may yield are 
yet to come, as astronomers begin to deci- 
pher their voluminous data. 

When 21 fragments of the comet struck 
Jupiter, they dotted the face of the planet 
with gigantic holes, some the size of Earth. 
White-hot gas from the planet’s interior 
erupted through the holes in great fire- 
balls, as if from cosmic cannons. 

The world's greatest telescopes — in 
space as well as on remote mountain tops 
— were ready for the show. Last week, as 
observers at these telescopes did some 
long-distance optical sniffing, they detect- 
ed some malodorous but revealing chemi- 
cals on Jupiter, some of winch could ac- 
count for its colors and other features. 

In measurements of the dazzling light 
produced by the bombardment, astrono- 
mers believe, they have detected hydrogen 
sulfide, a poisonous gas that smells like 
rotten eggs, in Jupiter's upper atmosphere. 

A team using the Hubble Space Tele- 
scope also saw the pronounced signature 
of carbon disulfide, a smelly and poison- 1 
ous solvent. Both compounds contain sul- 
fur, which in finely powdered form could 
contribute to Jupiter’s colors. 

T HE detection of sulfur-based com- 
pounds also suggests that the com- 
et fragments may have penetrated 
the Jovian atmosphere to a depth 
of at least 20 miles (32 kilometers), because 
sulfur is not normally detectable in the 
upper atmosphere and must therefore have 
been dredged up from deeper layers. 

Jupiter's lowest cloud layer, about 50 
miles below the top of the atmosphere, is 
thought to consist of microscopic ice parti- 
cles. Although some astronomers believe 
that they found hints of water in the debris 
of the explosions, others were unable to 
detect any water at alL 
That may mean that the cometary frag- 
ments just barely impinged on the ice 
clouds. It could also mean other things; at 

ing any* opinions about thebmnb^^^mt 

too strongly. 

Another substance astronomers are 
looking for in Jupiter’s gaudy clouds is 
phosphine, a compound of phosphorus 

and hydrogen. If, as many scientists sus- 
pect, this extremely poisonous gas is pre- 
sent, the clouds would probably smril of 
rotting fish. Although phosphine has been 
detected in the upper clouds of another 
giant planet, Saturn, astronomers are not 
yet oectarn whether phosphine is present in , 
Jupiter's atmosphere. 

Phosphine and hydrogen sulfide, respec- 
tively, are possible precursors of elemental 
phosphorus and sulfur, which could ac- 
count for Jupiter’s colors. Colors are espe- 
cially vivid in the “Great Red Spot,” and 
in the red, brown and yellow streaks in the 
planet’s cloud bands. 

One of the questions raised by the come- 1 
taiy impacts on Jupiter is why the impact 
spots looked blade No astronomer is 
ready to offer a definitive explanation, but 
there are several possibilities. The black- 
ness might be caused by a shadow rather 
than a substance. 

A more likely possibility & that the im- 
pact scars are blackened carbon derived 
from the carbon-based compounds known 
to cost- on Jupiter.Some foams of sulfur 
might also be responsible. 

TbeNe* York Times 

Greater issues than aesthetics hang on 
Jupiter's colons and smells. 

Astrophysicists regard Jupiter as a failed 
star that was not quite massive enough to 
crush and heat itself to the temperature 

cess that fuels the Sun. But Jupiter’s com- 
position is believed to be essentially the 
same as that of the primordial Sun at the 
time the solar system was bom. 

An understanding of Jupiter’s composi- 
tion, structure and history could therefore 
shed much light not only upon the evolu- 
tion of our solar system but also on all 
solar systems, the sdtid perches in the emp- 
ty reaches of space where life is offered a 
chance to exist. 

A® nearly as astronomers can gauge, 
Jupiter is 88 percent hydrogen and 11 
percent helium, with the remaining 1 per- 
cent co ns i s ti n g of small amounts of meth- 
aw. ammonia, water, silicon and many 
other substances. 

to* bombardment by the comet, 
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International Herald Tribune, Thursday ; /«/)» 2$ 1 994 


Tokyo Negotiating a Loan to Ford 


KnTSl 0 "^ H ®£ k ? Tribune Wof W Stock Index ©, composed of 
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Latin America 

Approx nefgrtog: 5% 
.Ctaae 121.48 Ptev^ 11906 

By James Stern gold 

New York Tima Strut r 

TOKYO — With the government 
struggling to counter anger over Japan’s 
trade surpluses mid financially strapped 
investors pulling their capital back 
home, the Export- Import Bank of Japan 
is negotiating a huge, politically sensitive 
loan to Fora Motor Co. 

The unusual loan being considered by 
the government-controlled bank, which 
could run to as much as $300 million, 
would be aimed at helping Ford manu- 
facture right-hand-drive autos Tor export 
to Japan. That, in turn, could help reduce 
Japan's trade surplus with the United 
States, which is expected to run as high 
as $60 b3hon this year. 

The negotiations with Ford are one 
sign that Japan, which has resisted U.S. 
demands that it guarantee increased pur- 
chases of American goods to whittle 
down the surplus, is anxiously looking 
for other means of narrowing the deficit 

not least, earning some goodwill in 
the United Stales. 

The loan has not been made final, but 
its motivation was evident in the terms 
under which it would be made. Interest 
would be paid at a concessionary rate of 
slightly more than 4 percent. The Ex- 
port-Import Bank says that is normal for 
its specialized lending. It is, however. 
muc h less than the 725 percent prime 
lending rate offered by U.S. commercial 
hanks and thus could save Ford millions 
of doDars in interest payments. 

Officially, the Export-Import Bank 
denied a report of the loan Wednesday in 
Nihon Keizai Shunbtm. Japan’s leading 
business newspaper. 

Representatives of Ford Motor Co. 
(Japan! sa«ri they had no knowledge of 
the loan. 

But other officials said that, while no 
decision has been made, talks have been 
under way with Ford and that loans to 

other major American automakers might 
also be considered. 

“At this point, the report was prema- 
ture, but there have been discussions.” 
said one official. 

The consideration of the loan demon- 
strates the lengths to which Tokyo is will- 
ing to go to improve badly strained rela- 
tions with Washington. This is 
particularly true with die two sides facing 
a deadline of Sunday for completion of 
negotiations on increasing Japanese gov- 
ernment procurement of foreign telecom- 
munications and medical equipment. 

The Clinton administration has insist- 
ed that the Japanese institute procedures 
to ensure the government will steadily 
increase its purchases of foreign telecom- 
munications and medical products. 

If no deal is reached by then, the 
United States may begin a procedure 
that could lead to sanctions against Japa- 
nese imports within 60 days. 

Auto Industry 
Gains Speed in 
U.S. and Europe 

By Lawrence Malkin 

humanonoi Herohi Tribune 

The Volkswagen group, Eu- 
rope’s largest automaker, said 

NEW YORK — Led by Ford that during the first half of this 
Motor Co. doubling its second- year its worldwide sales rose 7.8 
quarter profit, the world auto- percent to 1,726,000 vehicles, 
mobile industry produced a Sales in Europe rose 2 percent 
stream of good news Wednes- and exports more than doubled 
day ranging from Detroit’s fi- in the United States and were 

U.S. and Japan Extend Semiconductor Pact 

North America 

Approx, weighing 28% 
Chw: 93.19 Pw.-aaso 

™ 1»3 t9M 1083 19M 

Wi WorttUnde* 

The Met packs US. defer values of st oc ks Tokyo, Naw York, London, and 
ArpMtha, Australia, Austria, Qalgluni, BnsB, Canada, Chita, Danmark, Finland, 
franca, Gannany, Hong Kong, Maly, Mexico, Mlhartand*. New Zaafamd, Norway. 
Singapore, Spain, Sweeten, SwRzarland and Vreiannla For Tokyo. New Ytiik and 
London, fits Mm b composed of too 20 top Issues in terms of market capkaBzalion. | 
otherwise too ten (op stocks aw tracked. 

Industrial: Sectors 

Capital Goods 
Raw Materials ~ 
Comuner Goods 

Ccnplial by Ow Staff From Dapadta 

across a wide range of competitive prod- 

WASHINGTON — Japan and the ucts,” Mr. Kan tor said. 

United States have agreed to continue a 
bilateral agreement on semiconductor 
trade for two more years, the U.S. trade 
representative. Mickey Kantor, an- 
nounced after talks in Washington. 

Mr. Kanlor also called for a further, 
rise in the foreign share of Japan’s com- 
puter chip market. 

“Strong efforts must continue to be 
made over the remaining two years of the 
agreement to ensure that the arrange- 
ment achieves its goal of gradual »nd 
steady improvement in market access 

The decision was made at a formal 
midterm review that ended Tuesday, af- 
*ter two quarters in Much the foreign 
share of the Japanese semiconductor 
market has exceeded 20 percent. 

The agreement will be continued for 
its full five-year term, which ends in July 
1996, despite calls from some Japanese 
chip makers to end the agreement 

“The United Stales has always been 
committed to the vigorous implementa- 
tion of the agreement for its full five-year 

term and, thus, we are very pleased with 
this joint decision,” he said. 

- But Jyi Press reported in Tokyo that the 
United Stales had agreed in principle that 
the accord did not guarantee a 20 percent 
market share for foreign companies. 

Japan contends that the accord goes no 
further than noting the U.S. industry’s 
“expectation" that foreign share of (be 
Japanese market will exceed 20 percent. 

Tokyo frequently cites “misunder- 
standings” arising from the agreement in 
rejecting numerical targets in separate ne- 
gotiations with Washington 

(AFP. Reuters} 

nan trial and electronic subsid- sharply higher in Latin America 
iaries to two of Germany’s Asia, 
major automakers. Wall Street The luxury automaker Bayer- 
was more skeptical than the in- ische Motorenwerke AG report- 
dustry about how long the good ed a 14 percent increase in net 
times will last. profit to 290 milli on Deutsche 

Ford reported a record quar- marks ($182 million) during the 
terly profit of SI. 71 billion, first six months of this year and 
more than twice the $775 mil- a 7.4 percent increase in sales 
lion it earned during the same above the recession year of 1993. 
period last year. The perfor- The figures did not include 
mance exceeded most analysis' BMW’s Rover acquisition in 
expectations, but many sus- Britain but the company report- 
pected that results might have ed a 16 percent increase m Rover 
peaked with interest rates rising and Land Rover sales in Britain 
and the structure of the indus- and abroad 
try in transformation. The key i© growth through - 

Ford stock fell S 1 .25 to close out the industry was a combina- 
at $30. 1 25. don of cosi-cutting and world- 

The company disagreed, wide economic recovery, which 
Chairman Alex Trounan said boosted demand for cars. 
Ford would “continue 10 re- Ford’s Mr MeTammon said 

Euro Disney Halves Its 3d-Quarter Loss 

and the structure of the indus- and abroad 
try in transformation. The key to growth through - 

Ford stock fell S 1 .25 to close out the industry was a combina- 
at $30. 1 25. don of cosi-cutting and world- 

The company disagreed, wide economic recovery, which 
Chairman Alex Trounan said boosted demand for cars. 
Ford would “continue to re- Ford’s Mr. McCammon said 
make ourselves to be leaner and sales in Europe were better than 
even more efficient,” including expected and even forecast that 
in Europe. David McCammon, its troubled Jaguar subsidiary 
the chief financial officer, con- England would turn a profit 
ceded that the second quarter this year or next 

» make 

“zrz r “ d srasTsssa- ssrss 

be better than in the same pen- _n 

112.12 11239 -024 
121.35 121.16 40-16 
117.14 117.13 MUtl 
119.33 11932 40.01 

11435 115x27 -054 
12839 128.79 -031 
9837 . 99.17 -030 
129.14 12908 4005 

Compiled by Ota Staff From Dispatches 

PARIS — Theme park oper- 
ator Euro Disney SCA said it 
halved its third-quarter loss be- 
fore charges, after it cut operat- 
ing costs to compensate for de- 
creased attendance at its thane 
park outride Paris. 

The operator of Euro Disney- 

million francs in the year-earli- 
er quarter. 

Revenue dropped 21 percent, 
to 1.16 billion francs from 1.47 

A Euro Disney spokesman. But weaker sales caused con- 
Jacques-Henri Eyraud. said cero and could prove a sium- 
that bank commissions far out- bling block in the company's 
weighed any losses, but he effort to break even, if the lower 
would not say what proportion revenue trend is confirmed in 

billion francs, reflecting dedin- would not say what proportion 
ing theme park attendance oou- of the charge the commissions 
pled with price reductions at lepresented. 
hotels, restaurants and shops. Separately, Walt Disney Co., 
The company also took a based in Burbank. California, 

For mom information about Bib bdex, a booklet issvailabie fiw ofeteuge. 

Write loTrtokidox, 181 Avenue Charles do Qautia, 9021 Natty Codex, Franco. 

O International Harold Tribuna 

Ine operator ot Euro Disney- ine company also took a camuiuia, 

land Resort, which is managed one-tune 352 million franc re- said third-quarter earnings rose 
by a wholly owned unit of Walt structuring charge — mainly 3 percent on the box-office suc- 
Disney Gx, said its loss nar- bank underwriting commis- 0635 of “The Lion King" and 
rowed to 194 million French sions and the unwinding of strong consumer product sales, 
francs ($36 million) from 381 swaps. ■ Overall, Disney earned 

odlastvear new cars the world’s drivers will 

Bui weaker safes caused con- 

cera and could prove u slum- ^ moduclion Mumoo! Frequency Eco- 

btog blodr m the company* mcl Lds from iu European 'IS' “°" n ”' 

effort to break even, if ihe lower subsidiluy Gcnl=ral Mo P tors forecaster for GM. 

revenue trend is confirmed in rmally slartcd lum ing a Industry leaders such as Mr. 

the current quarter, they added. profit Iasl year and is expecled McCammon project past trends 
Euro Disney also has started to report increased and perhaps and forecast U.S. sales of 15.5 
to benefits from the financial doubled earnings on Thursday. miUion cars this year and per- 


The Americanization of Tungsram 

By Jane Perlcz 

New York Ttma Senkc 

B UDAPEST — Five years ago, 
amid handshaker and grins. 
General Electric Co. agreed to 
acquire Tungsram, a maker of 
li ghting products ana one at Hungary’s 
industrial giants. Many predicted that 
the deal would show other Western car- 

through it h seemed cruel,’’ he said. “We 
woe forced into a situation where we 
bad to sit down two or three times a year 
and deride how we were going to reduce 
the number of employees and reorganize 
the cost” 

Janos SzHvka, leader of the trade 
union at the Kisvarda factory, pulled out 
a copy of a GE book given to him at a 

porations how to ttff" Communist-rim. motivational seminar and thumbed 
enterprises into moneymakers. ' ' ' - - - 

But as losses mounted, GE soon saw , , 

grand expectations colliding with grim ■ r or 111086 WOO lived 

through it, it seemed 

GE*s aggressive management system crnel. 9 

depends on communication between • 

workers and managers — something the fatran Kora, a former GE 
Co mmunis t system had forbidden. The employee in Hungary 

Americans wanted sales, marketing and ‘ - 

pampering of customers; the Hungarians 

believed these took care of themselves, through the pages. ^Wdch’s slogans, he 

believed these took care of themselves, through the pages. “Welch's slogans,” he 
Hungarians expected GE to deliver said: *“If we’re not No. I or No. 2 in a 
Western wages; the company came to business, improve it, dose it or sell it.’ 
Hungary to pay lower wages. The workers don’t like it.” 

“H uman engineeri ng was much more GE said that in ordering layoffs, em- 
difficult than product engineering," said ployees received considerably more than 
Charles P Heper, the GE executive Hungarian law required. But many wom- 
brnusht in 19 months ago by John F. en on Hungary’s generous three-year 
Welc^Jr cfaainnan and chief executive, maternity leave have not been relured, 
to rescue GE*s investment Now the The company adopted its American 
company says the operation has been system of “action workouts.” These 
nmfilable for a year. Getting there worker teams tackled specific problems, 
meant lavixw off half of Tungsram’s But the workouts resulted m more ma- 
Wmnnwnritas rnduding three of every chines and fewer people; making them a 

hard sdl on the factory floor. 

former CTnoloyee, Istvan Kosa, 40, a If GE methods were de m a ndin g for 
he understood the workers, they were an ordeal for the 
those who lived naimgm.-ToiUy: fust year, it™ very 

difficult to know whether I could live up 
to the expectations or not,” said Miklos 
Horvath, 54, manager of the Tungsram 
plant in Nagykanisza. Mr. Horvath, like 
most other survivors, had to attend Eng- 
lish classes. He knew that if he could not 
perform smoothly in weekly conference 
calls, he would not last. 

GE agreed to pay $150 minion for 50.1 
percent of Tungsram in 1989, but in less 
than four years it had “lost the equity 
value of the company” and pumped in 
another $195 million of fresh capital. All 
told, GE has invested $550 million in 
Tungsram and now virtually owns iL 

Tungsram, which accounted for 3 per- 
cent of Hungary’s gross national product, 
was an inexpensive way for GE to enter 
the European market Tun gsram had 7 
percent of the West European market in 
1989. GE believed that Tungsram would 
be Ac vefakte for taking on Philips NV 
and the Osram unit of Semens AG. 

Overall, Disney earned 
$267.5 million, or 49 cents a 
share, in the third quarter end- 
ed June 30, compared with last 
year’s $259.1 million, or 48 
cents. Revenue rose 22 percent, 
to $235 billion from $1.94 bil- 

Analysts said Euro Disney’s 
sharp reduction in net loss, ex- 
cluding charges, for the three 
months to June showed that the 
company's restructuring drive 
was producing results. 

Euro Disney also has started 
to benefits from the financial 
restructuring agreed with its 
parent company and 61 credi- 
tor banks in May. The restruc- 
turing plan provided for a rights 
offering but also for substantial 
write-offs of interest payments 
by banks and a new 1.1 billion- 
franc standby credit. 

The 10-year.refinancing pro- 
gram will cut the company's fi- 
nancing charges by one-third to 
about 1 billion francs a year. 

Waivers on interest payments 
meant Euro Disney's leasing 
costs on the theme park fell 50 
percent in the third quarter. 
The company also has benefit- 

See PARK, Page 1 1 

The consensus of analysis was 
$1.8 billion for the second quar- 
ter. compared with $889 million 
a year ago. 

GM reported Wednesday 
that, thanks to new contracts of 
$4 billion, its Electronic Data 
Services subsidiary increased 

haps 16 milli on next year, com- 
pared to 14.1 million in 1993. 
Even if the economy slows to a 
growth rate of about 3 percent 
as the result of higher interest 
rates. Mr. McCammon said 
Ford “could live with that.’’ 

But Mr. Munro said these 

net income by 11 percent for projections are uncertain be- 
the second quarter, to SI 97 mil- cause cars last longer, buyers 

lion. General Motors Accep- have less money than in the 
tance Corp.. the company's fi- 1 980s. and Detroit has leased so 

nancing arm, cut second- 
quarter earnings from $285 
million to $216 million despite 
higher interest rates, but the 
subsidiary continues to be a 
cash cow earning about $1 bil- 
lion a year 

many cars it may be competing 
with itself when they come back 
on the market. 

Arvid Jouppi of Keane Secu- 
rities in Detroit, a veteran in- 
dustry analyst, finds sales of 16 
million '’reasonable” 

If GE methods were demanding for 
the workers, they were an ordeal for the 
managers. “For the first year, it was very 

Company officials stud the combina- 
tion of GE productivity and Hungarian 
scientific ability was bringing results. 
With Tungsram and a British subsidiary, 
the framer lighting business of Thorn 
EMI PLC, GE now has 16 percent of the 
market, company officials said. 

“The workers are not against develop- 
ment, but at the same time, they want to 
be able to make a living,” Mr. Szlivka 
said. “The workers don’t understand why 
they make less manw if the products they 
produce are as good as Philips’. Why is 
there such a difference in wags? Since the 
Iron Curtain was removed, people can see 
what is happening elsewhere. 


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Eurocurrency Deposits 

July 27 










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Sources: Roman. Btoombara, Merrill 
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OroctmeH MoaMa, CrfOti Lreanats. 

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2v. am. pm. are* 

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an New YnriC 387.16 387.78 +040 

US. dnltors per ounce. London offickd fix- 
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tiS kw priced new York Came* t August) 
iJ 8 Source: f t M en 

" Lira Falls 

l On Woes of 

n Berlusconi 

^ CompBed by Our Stiff Front Dopetdia 

* LONDON — All eyes were 

7 on the Italian lint Wednesday 

n as it slumped on news that a 

d warrant had been issued for the 

V arrest of the brother of Prime 

Minister SDvio Berlusconi, 
i- Italian financial markets 

□ went into decline, hit not only 

s. by Mr. Berlusconi’s immediate 

i, problem but by fears for the 

o stability of the government and 

e its ability to take action on the 
budget deficit. 

>- The lira dived toward record 

o lows against the Deutsche mark 

a on all markets. In New York, 

y the mark dosed at 1,009.59 lire, 

y a continuing rise from Tues- 

is day’s 1,000-50 lire. 

ie There were reports of Bank 

g of Italy intervention, but the 

bank declined comment. A 
month ago the mark was trad- 
ing at around 980 lire. 

Italian government bonds 
dropped more than 100 basis 
• points. 

Only the stock market 
fly 27 showed some resilience, al- 

though it also lost ground, as 
cu operators decided that there 

rs*, was only limited harm any po- 
rt litical crisis could .do to compa- 

rt v. nies that are beginning to look 

* profitable again. 

Milan magistrates issued an 
arrest warrant for Paolo Berlus- 
coni on suspicion of corruption 
as part of a rapidly developing 
probe into the ways that com- 
sift parries paid off government in- 
H spec teas. 

5u The move came on the heels 
of an embarrassing backdown 
by the prime minister a week 
5.10 ago over a law which would 
have restricted judicial power to 
5* imprison corruption suspects — 
^ such as his brother Paolo. 
ruj The Mibtel stock index fin- 
ished down 1.73 percent at 
11,051 although this was above 
the session low of 1 1,005. 

“There are big fears there will 
+is5 be delays to budget measures. 
+Q4o that it will not be possible to 
decide on the 1995 budget in 
f ,< ** September," said Pio de Gre- 

See LIRA, Page 10 

Stet’s Tedeschi to Head Italy’s ERI 

Bloomberg Businas Se * ij 

ROME — Michele Tedeschi, manag in g di- 
rector of Italy's state-owned telecommunica- 
tions company, cm Wednesday was named 
president of the state holding company Isti- 
ruto per la Ricostruzione Industrials. 

He succeeds Romano Prodi. who resigned 
after tine election of Prime Minister Silvio 

Mr. Tedeschi has been managing director 
of Sodeti Fin anzi aria Telefonica, or Stet. the 
state-owned telecommunications holding 
company which is part of IRI. The Italian 
Treasury owns IRI. 

The Treasury also nominated six other di- 
rectors: Diego Delia Valle, Mario Draghi. 
Pietro Gnudi, Roberto Tana. Giuseppe Ur- 
duoli and Enrico Zanelli. 

Mr. Prodi was responsible for IRI’s pro- 
gram erf asset sales in which several of the 

company's holdings, including two banks, 
were sold to private investors. 

Because of the sale, total revenue of IRI’s 
companies fell to 79.8 trillion lire ($52 billion) 
last year from 82.7 trillion lire in 1992. IRI 
accounts for 2.6 percent of all jobs in Italy. 

Mr. Tedeschi was brought into Stet by Mr. 
Prodi. He is a supporter of Mr. Prodi’s asset- 
sales program, which is based on the creation 
of an Engjish-style public company with a 
broad shareholder base rather than a French 
model of a small group of controlling share- 

His nomination assures a continuation of 
Mr. Prodi’s policy. 

IRI still controls Italy’s national airline, 
several shipping lines, the country's main tele- 
comm uni cations provider, a bank, ship build- 
ing and construction companies, three televi- 
sion networks and roost of Italy’s defense and 
aerospace manufacturers. 

A true collectors item. 
The only coin watch 
for the connoisseur. 


Maitres Artisans dHorlogene 

The Coin watch by Corum, handcrafted from a genuine gold coin. Warer resistant. 
For a brochure, write to: Co rum, 2301 La Chaux-de-Fonds, Switzerland. 



Signs of Growth 
Send Stocks Lower 



f —w- 

> Compiled by Our Staff from DiipaKka 

: NEW YORK — The stock 
market followed bond prices 
lower Wednesday, pressured by 
news of stroogcr»than-c7spected 
economic activity and by ideas 
that earnings growth has 

'The Dow Jones Industrial 
Average slipped 15.21 points to 
dose at 3,720.47. 

■ Declining stocks outnum- 
bered advances a bout 4 to 3 on 

; US. Stock* 

the New York Stock Exchange, 
Where volume totaled 253 mil- 
lion shares. 

• The yield on the benchmark 
U.S. 30-year Treasury bond 
dosed at 7.61 percent, up from 
7.54 percent Tuesday. The bond 
was priced at 84 6/32. 

Treasury prices tumbled af- 
ter the Commerce Department 
reported that orders to U.S. fac- 
tories for big-ticket items rose a 
higher- than-expected 1 3 per- 
cent in June. 

Bond investors do not like 
signs of strong growth, which 
carries the threat of inflation. 
That erodes the value of fixed- 
income securities. 

And stock investors do not 
like to see bond prices fall be- 
cause that pushes up credit 
market interest rates. Higher 
rates make share prices less ap- 

pealing relative to interest-bear- 1 
mg investments and make bor- 
rowing more expensive. 

Among actively traded is- 
sues. Ford Motor fell 1% to 
30%, even though the second- 
largest automaker in the United. 
States said its second-quarter 
profit, reported Wednesday, 
was higher than expected. 

“People are saying that these 
are peak earnings for this cycle, 
which means multiples will re- 
tract and stocks will eventually 
decline," said Anthony Dwyer, 
chief market strategist at Sher- 
wood Securities. 

Disney closed % higher at 
42% after it reported higher- 
than-expected earnings in the 
third quarter. 

Telefonos de Mexico jumped 
1% to 60 after Prudential Secu- 
rities raised its rating on Men-' 
co stock funds, citing solid eco- 
nomic growth and strong, 
earnings potential for Mexican, 
blue chip companies. 

The drug company Biogen 
shot up 15% to 44% after it said 
it was seeking Food and Drug 
Administration approval for a. 
drug that would slow the pro- 
gression of multiple sclerosis. 

Shares of Bethlehem Steel fellr 
1% to 20% after the company 
reported lower- than -expected; 

(AP t Bloomberg, 
Krtighl-Ridder ) 

yUBs-’r vaZrrb , w f »■. * ' 

Dow Jones Averages 

lrt*» 373SJU 373658 3714J6 379X47 — lJLTT 
TTDTS 1SHJ7 U9SS3 15Z9.47 15B1J9— 17.25 
um MJ* WJ7 161 J* 10177 >CM 
Cotnp T254J4 129544 las&a iaaus —?jj 

Standard & Poors Indni 

spun 431.10 41837 419-64 —157 

SP9D0 45138 45134 WJf -079 

I nAid rinh jSL87 — 1.77. 

Tronsp. 384.72 38247 382» -X« 

Ufl Hites 1SS51 —036 

Firtmce *438 —Ml 


v ; 


NYSE Indexes 

Mob Low Last Cha. 

Composite 25034 247.19 2*7.84 -4*0 

InOugtrlais 3tmJS 3&19 30X08 — OJ* 

Tronsp. 24457 2*252 2*222 —232 

Uffiftv SH 20X02 20092 +027 

Finance 211.17 210.18 21070 -047 


NYSE Most Actives 

VOL Natl 
44043 601k 
42701 3116 
27878 27 
24454 4M 
22336 SI 
27127 255* 
20757 S» 
200M 4716 
19210 22 
18393 51 W 
18122 aau 
18048 27 
I71S7 046 
1807V 484b 
15802 4VA 







NASDAQ Indexes 

Composite 714.93 712JS 71ZJ9 -027 

Industrials 724A2 71948 72OJ0S — 4J9 

Banks 76423 76X35 78435 -MS 

Insurance 871.31 885.82 88542 -074 

Rnanoa 93550 93439 93021 —034 

Tronsp. 717X0 714.15 7I4L28 —087 

AMEX Stock Index 

Nan Law Lost Cba. 
434.99 43X05 43002 —048 

Dow Jones Bond AvoragM 

20 Bonds 
10 Indusmats 

CJon art* 

9753 —8.14; 

9343 —am 

10143 —02* 

NASDAQ Most Actives 

VOL Non Law 





LIRA: Leader’s Woes Hit Currency 




+ 1514 



38 V, 

— 5 


23 V. 






— 5V6 




— OU 



— V, 
















3 SK 





— 1VS 


23 Vi 







Costumed from Page 9 
gorio, European economist at 
NatWest Markets in London. 

Tough action on the budgetis 
vital to meet accords with the 
European Union to bring Ita- 
ly’s $1 trillion debt under con- 
trol by 1996. 

Italian 10-year government 
bonds for September delivery 

Foreign Exchange 

on the Italian Futures Market 
were down 136 at 101.47. 

In New York, the dollar fell 
a gains t the mark for a third day 
after a U.S. economic report 
raised concern about inflation 
and sent Treasury bond prices 

The U.S. currency rebounded 
from earlier losses against the 
yen, meanwhile, after C. Fred 
Berest en, an economist who is 

Ewy Wednesday 
Contad Philip Oma 
Td.: (33 1) 46 37 93 36 
fee (33 1)46379370 
or your nearest HT office 
or representative 

thought to have close ties to the 
Clinton administration, said he 
thought Washington and Japan 
would reach an agreement on 
opening Japanese markets. 

Government bonds fell, 
dragging the dollar lower, after 
the Commerce Department 
said durable goods orders rose- 
more than expected in June, 
suggesting the economy is 
growing fast enough to generate 

The dollar closed at 13744 
DM, down from 1.5850 DM on 
Tuesday. It rose to 98.425 yen', 
from 9835 yen on Tuesday. 

Every Japanese exporter has 
dollars to sell, said Peter 
Gloyne, manager of institution- 
al foreign-exchange trading at 
First National Bank of Chica- 
go. As long as that’s the case, 
“the dollar won t break back 
above 100 yen," 

The dollar weakened against 
several other major currencies 
Wednesday, falling to 5.3820 
French francs from 5.4098 
francs on Tuesday. The lira 
held its own against the dollar 
at 1 ,586. The British pound rose 
to $13321 from $13244. 

(Reuters, Bloomberg) 

AMEX Most Actives 
















— Vi* 







3989 29*4 

29 V, 








+ »ta 



l Vu 








+ M, „ 

















Market Sales 



NYSE 24SL04 

Aimx 1178 

Nasdaq 22451 

Iff oilmans. 

NYSE Diary 



Total Issues 
■New Notts 

AMEX Diary 

Total issues 
New Hiatts 
Now Laws 


Total Issues 
New Notts 
Now Lows 

Spot Consnetfllles 

ConmodHy Today 

Aluminum, b 0442 

Copper eWctrotyltc, B> 1-17 

Iron FOB. too 21358 

Load, lb 13J 

SOvar, irovaz 5J8 

Stool (scrap), tan 11947 

mtb MWJ 

Zinc, lb 04798 


ALUMINU M Ujffi crafff ** 


ForwunJ 1442j» MOJ» M9U0 

pollen per dictate taH , 

Soot 23RJ90 239108 247M0 

fSnnm M*JD0 ***** TfUSK 


'-''iV;Sar» per metric Hd 
Spot KUO 9048 0858 

Forward 565.00 5BU8 59100 


DIM per M8We tan _ 

Spot 610008 811000 619500 

Forward 619800 8X000 «MUD 


DaUcmpar nemetoa 
spot smm 5muo sreoo 

Fanvard 525500 5240i® 521500 

ZINC rspedol KM Grade) 

Dd Km par metric ton 

Snot »6J0 72X50 7050 

Forward 79840 TSLOO 9*40 


Mob Low- Ctase Onoye 
IS8M88-Pt90f M PCt 

5fP 9454 9459 7441 — 0.M 

Dec 9203 7307 7X87 —Ml 

iffisr 913B 73J0 mm — 022 

Jeq 9241 9241 9241 —025 

SOP - 92.17 9M8 9U7 —024 

D*C 91JU 7104 7LM -021 

Mr nS6 9142 9142 —lit 

Jim 9137 9150 7158 —021 

Sop 91 JO TUB 91JB —020 

DOC 71JS1 9008 —tm 

MOT W02 98J8 9070 —017 

Jea 7048 9082 9058 — OT7 

EsL vatame: 7<73A. Open hi.: 521441 

n iniuiM - pi* or M* pd 
Sep N-T. N.T. 9458 — 0 jB3 ( 

CMC N.T. N.T. -9084 —088 

Mnr N-T. N.T. 40*0 — 005 

J«W N-T. N.T. 7349 —085 

SOP N.T. N.T. 9352 —005 

EsL vatume; UDAm hit: no. 

DM3 RROan ■ pis of M8 pd 
S*p 9SJ1 95JJ7 95J09 —082 

Dec 15JM 9U8 9500 —003 

Mar 9404 94J7 «J9 —004 

J«* *408 9451 9451 — am 

SOP 9451 *425 9455 —107 

Dec 9403 9358 9199 —084 

Mar 7104 9X77 9X77 —008 

Jon 9144 raj» VX59 —085 

Sep 9346 9348 9348 — Em 

Dec 9X24 7354 9124 —002 

JHar 9X12 9X10 1X18 —001. 

Jm 9228 V2M 92.97 —001 

Eel. volume: 80549. Open InL: 807084. 

FR5 aaiataa - pis of W8 pd 

SOP M4I 905 907 —840 

Dec 9456 9450 *459 —004 

Mnr 9406 mm 9402 —005 

Jon 9X85 9X80 9X82 — 005 

Sep 9X61 9X58 9X59 —003 

Dec 9358 9X31 9135 —085 

Mor maa 9 x 12 9X15 — oas 

JoP 9303 92M 9EUU —085 

ESI. volume: 19572 Open InL: 187511. 

I9US8- pte A XaM OfWpct 
SCP 1(048 18143 101-44 —148 

Dec N.T. N.T. 188-10 — V28 

Est. volume: 79487- Open taL: 118498. 
DM 380888 -Ptief 188 pd 
Sep 9X78 9354 9X28 -039 

■ Dec 9X10 9264 9283 —840 

Eli vo tame: 112079. open tat.: 180871 

HMl Lost Loll S«»»ta .Wee. 

B?" 1 SS sas 1 SS ISS X\£ 

F eta N.T. N.T. N.T. H8JS +208 

MBT 18435 U4J0 16475 M4L5D +U0 

ESL vatame: 10022. open ltd. 138)3- . 


lXS.dod«T per barrcHetseMMO barrels 
Sap 18JQ 1740 1771 p« +M* 

Od 1750 T7J1 1743 I74S ftW 

NOV 1748 1742 1747 UX ■t-ElX 

DOC 1749 1740 044 1749 +089 

Jm 1748 1740 1743. J7J8 fOTS 

F«b 1740 I7J6 .1738 gJ8 . +0* 
Mar 1734 17 JO 1750 1751 +OM 

Aar T753 1722 1752 1756 + 008 

MOT 1754 1757 1754 1751 +088 

EsL vatanw. 49451. Open InL 34567 

Stock Indexes 

HMl Lev can om 
FTSE »(uBo 
nsnrbM hnh 

SCP 31308 3BB2D 3BW4 — 4W- 

Dec ' .31308 Strns 30974 —OS 
EsL vDtam*:l74*Z. Open tat: 53474 

905500 —3080 

— 2U0 

3071 JO —2000 
218000 — 2096 
Z12XM —2800 
Eat votamo: 34400. Om taU 70336. 
Sources: Motif, Ata oclatML Press 
London tart HnaocM futons Exctm* 
Inn Ps muum exehonoe. 

Per Ant 

DgPontlSet Soars S3^in24Qgg^ 

WILMINGTON, Ddawarc » 

'.Wednesday Chat it pMted a 53 peromt vohtow. 

: sm afin&L as a Sof ow . 

Net income would have nsra 56 percmc, jnvoivtag a 

* saddled vrith a charge of S 47 nnfikffl fw hg 3 " ^ S 2 i 

; Revenue rose 7.6 percent, to $ 10-44 bflbon. 

Fairmont Sta!te_ 


f :«tmcta the rescue of tbe^ S for an 
Lbou^it a. stake in prestigious Fairmont no™ 

}• ^M^W^dlbn Talal ibn Abdolazfe, 


ta 50-50 Dartnerafam to own and epemte SSjJgjjj ^ New 


- JKtt M 0-15 

I ef 188 Pd 

I7J6 11748 H7.18 —I 

MC n,U@ 1U5B 11634 —056 

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Personal Communicator Maker EO to Close, AT&T Says 

Complied by Our Staff From Dispatches 

NEW YORK — American Telephone & 
Telegraph Co. said Wednesday that its 
once high-flying wireless venture EO Inc. 
would go out of business at the end of the 

The privately held company, formed in 
1991, was unable to secure additional 
financing needed to bring to market its 
next-generation personal communicator," 
AT&T said. 

Personal communicators are notebook- 
sized devicra that alfow usere to make phone 

calls, send faxes, use electronic mail, page 
someone and run computer functions. 

AT&T was one of toe original investors 
in EO and became the majority owner in 
August 1993, increasing its stake to 52 per- 
cent The closure will not have a significant 
effect on 1994 earnings, AT&T said. 

“Given the slow development of. the. per- 
sonal communicator market generally, and 
the low acceptance of EO’s products, AT&T 
believed it would not be prudent far AT&T 
to invest more in EO without additional 
financing from other investors,” said Caxi 

Ledbetter, president of AT&T Consumer 
Products and an EO board member. 

BO had estimated 100 million personal 
communicators would be sold by the year 
2000. It has sold fewer than 10,000, at prices 
ranging from. $1,500 to $3,000 eadh. 

Separately, AT&T said it had joined 30 
international tdecxramunications earners 
in an agreemenf to invrat in the first optical 
network serving the Blade Se a area . The . 
$155 millio n network, called ITUR, wui 

link Italy, Turkey, Ukraine and Russia. * 

( Knighi-Ridder, ; AFX, Reuters, Bloomberg) 

| a 50-50 partnership to own and of**** jjj. New 

Hotel in San Francisco and two. other Fairmont hotels 

{^SS&Mw-LWUh JWJt-'MS- 

best-knowi* landmarks. The United Nations C&gfbr- 

ithere hr T94S. Fairmont holds m Chicago and San Jo^tam 
aia, will continue undo- the ownership of the Swig tamuy. 

* Bids Macmt m Broadcast Auction 

: WASHINGTWl (Bkxanbcig) — 

{ niei lads aborc $400 nmlicm on Wednesdayasy^^- 

"lor tO^cmses being offered m the Federal Communications 
■ ConmBstaon’s first auction of broadcas t spectrum. 

After two rounds of Iriddmg in the third day ^ tbeau^iou, 

1 totaled $411.6 nrilli<m for 10 Hcens« to provide 

some Of the auction nartiapants. _ 

I The highest bid fora single Bcense was $60.7 anDwn- . 

T; The licenses will enable winning bidders to use certain para ^ 

’ the radio spectrum to offer advanced paging and messaging 

•ILS. Beer Volume lifts Anheuser Net 

1 ST. LOUIS (Combined Dispatehes) — Anheuser-Btw^Cos. 
i yiut Wednesday tfe* second-quarter net income rose percent 
on higher beer sales vohnne, especially in the United Statesj. . 

The world’s largest brewer said net income rose m the latest 
quarter to S322J million, but had been held back by lower 
capitalized interest from the start-up of .the company's Carters- 
vffle brewery last spring, 

. Sales .row 5.2 percent, to^ ^$3.61 trillion. 

• -The company also noted that an agreement to acquire ou 

! percent in the Thnng de Brewery in China is expected to be 
- completed at the end of the year. (Bloomberg, Reuters) 

Signal Spins Off Credit Card Business 

RICHMOND, Virginia. fAP) — Sgnet Banking Corp. said 
-Wednesday -drat it was fanning off its credit card business, 
foonmg a separate company that will be 80 percent owned by the 
bank. ■ 

Sgnet ffled a registration statement with the Securities and 
I F«^u»np Commission to sell 193 percent of the new company’s 
1 shares to the public. The remaming shares will be distributed tax- 
} fine to Sgnet stoddudders, the bulk sa^. 

Northrop Grnmmaa Earnings Rise 

LOS ANGELES (Reuters) — Northrop Grumman Corp. said 
Wedhewhi^its saxmd-quarter earnings rose neariy 23 percent 
-because of raproved operating margins. 

. ThedeEenseandaen^iace company earned a net $65 million in 
theperiod, trofrpmanet $53 ntillion in the 1993 quarter. Revenue 
rose to$L(^teMaa;fe«ss$01 billion. 

Higher Prod^ivity Ufts 3M Profit 

MAPLEWOOD, kfinnesot& (AJP) — Minnesota MQning & 
Maanfacturing Co. smd Wednesday its second-quarter profit rose 

' hearty 4 percent from tKyc^^cariterperiodb«aCuse or improved 

sales and piodnctmly. 

' The cote|^ay earned $343 mflEqu in the three months ended 
June 30, up from $331 miBion in the 1993 quarter. Sales rose to 
$3.77 trillion from $334 billion. 

Ji £j*> IjlSjO 


Page *1 


Leaps 70% as 

An Avalanche of Sellers 

Russian Investors in MMM Left in the Cold 

By Brandon Mitchcner 

International Herald Trihum 

MUNICH — Allianz AG 
Holding on Wednesday report- 
ed sizable gains in premium in- 
come and overall net profit in 
1993 and said it was poised to 
reap the benefits erf its recent 
international expansion. 

The company’s results in- 
cluded an “appreciable: reduc- 
tion” in hs underwriting deficit 
Underwriting losses fell 490 
annum Deutsche m*riwf ($308 
million) to 1.19 billion DM as a 
result of price increases, strict 
risk selection and cost reduc- 
tions* in- its East German, U.S^ 
Italian and British operat ion s. 

“We are more flexible and 
competitive than a year before 
and face the challenges of the 
new European common market 
with optimism as a result” said 
Henning Schulte-Noefle, the 

Company’s charrawm 

Net profit at Europe’s biggest 
insurance company rose 70 per- 
cent to 1.46 billion DM, from 
860 milli on DM a year earlier. 
Per-share earnings, omitting ex- 
traordinary items, rose to 41 
DM from 24.03 DM in 1993. 

For this year, Mr. Sdralte- 
Noelle said, profit may improve 
from the 1993 level, even 
though last year’s net income 
was boosted by a one-time tax 
benefit of 233 milli on DM. 

For 1994, Mr. Schulte-NoeUe 
predicted a leveling off of 
growth in premium income and 
warned that a weak dollar could 
adversely affect the company’s 
namings by hundreds of mil- 
lions of marks. Each shift of one 
pfennig in the exchange rate re- 
sults in a change in revenue of 
100 millio n DM, he said. 

A key reason for the under- 
writing loss was high claims for 
car thefts in its core German 
marlrft t Allianz said, adding * 
that it was pressured by storm 
damage claims. 

As in the past, Allianz played 
down the immediate impart, of 
the July 1 liberalization of the 
market for insurance in the 12- 
aation European Union. The 
change allows insurance com- 
panies to sell their products 
across borders without prior 
regulatory approval and is ex- 
pected to spur competition, es- 
pecially in traditionally conscr- 


. vative markets such as 
Germany and Italy. 

**We are bracing for more in- 
tense competition in all the im- 
portant European markets, but 
there won’t be a big bang,” Mr. 
Sctadte-NoeDe said. 

Analysts agreed. “The liber- 
alization won't be as important 
for AIKanz as for the competi- 
tors that are just begpuring to 
branch out,” said Artnalies Dib- 
bem, an insurance industry an- 
alyst at MAL Warburg Bank in 

. AZfiimz’s non-Goman busi- 
ness accounted for 47.5 percent 
of groin} sales in 1993. Mr. 
Scbnlte-Noeflc said the United 
States, already the company’s 
second most important market, 
after Germany, was growing in 

“UA premiums accounted 
for mound half the non-Ger- 
man business in 1993,” he said, 
largdy as a result of strong 
growth in private pension and 
fife insurance policies. 

Despite the company’s rapid 
international growth of the last 
few years, Mr. Schnlte-NodQe 
said Allianz was still actively 
■searching for partners in several' 
countries, including France, It- 
aly and Austria. 

The company is in the early 
stages of negotiations with 
CrfcdhJLyonnais of France and 
in “preliminary negotiations” 
with Greditanstalt-Bankvexean 
of Austria, he said. 

In addition to growing sales. 
aLbank counters, Mr. Sramlto- 
NoeDe said Allianz and other 

GmpSedby Ow Sozff From Dopatdta 

MOSCOW — Russians raced to sell shares 
in the country’s best-known investment fund 
Wednesday, crowding stock exchanges and 
company offices to dump securities that had 
lost half their value virtually overnight. 

Officials from the. investment company 
MMM accused the government of hying to 
drive them out of business and said its esti- 
mated 10 million investors would not stand 
by idly if the company was forced to dose. 

Fin racial analysts also said the threat of 
the company’s collapse should prompt much- 
needed regulatory reforms in the immature 
financial markets. 

But exchange officials stud the panic selling 
was a catastrophe waiting to happen. 

“If our state is so weak that it can be 
frightened by an onlay by MMM sharehold- 
ers, I can only fed sorry for it,” said Alexei 
Vlasov, president of the Russian Commod- 
ities and Raw Materials Exchange. 

Late last week the government said it 
would not guarantee money put into numer- 
ous similar investment funds that have sprung 
up in the past 

“The p aper is hollow. There are no divi- 
dends, no investment prefects,” Mr. Vlasov 
send. “In the West, any issue of shar&.like 
.MMM would mean immediate imprison- 

Officials at the Russian Finance Minis try 
have likened MMM to a clastic pyramid 
scheme; in which cash from new share pur- 

chases is used to buy back old shares at ever- 
rising prices. When new investment dries up, 
the rash to pay dividends or buy shares back 
at higher rates dries up as well. 

One Finance Ministry official said: “It had 
to happen sooner or later. As soon as MMM 
stopped buying its shares back, you get an 

Traders outside the company’s Moscow 
headquarters offered 30.000 rubles (S13) for 
shares that had fetched 1 10,000 rubles before 
the company this week stopped buying shares 
back at branch offices across Russia. 

Tax officials also have accused the compa- 
ny of irregularities. MMM has long been 
silent about its investment activities. Sergei 
Taranov, the company spokeman, said 
MMM was a major shareholder in a Russian 
auto company and had invested money in a 
hold complex. But be refused to say how 
much the firm had invested in outside pro- 
jects or how many shares it had. 

Company officials also have said in the 
past that the fund speculated in currency 
markets and offered short-term loans. 

Mr. Vlasov said several investors were still 
buying shares in the hope they could seO them 
bade to the firm at higher rates. 

He said the government might have to foot 
the bill for MMM losses. “This is a brilliant 
example of how millions of people are duped 
by high-quality advertisements into buying 
paper winch is worth nothing.” he said. ’ 

(Reuters, Bloomberg) 

Statoil Profit Rises 42% Rears’ Net Rose 

Tk •, ivy ¥>• TV— 14?% in 1st Half 

Despite Oil race Drop 

Jr JT LONDON — - Reuters Hold 

J tTd lIT - Coa^Sed by Our Sutf From Ddpcuha 

rfAnSrS 1 ^ BankVeKan °S L0 —Statoil AS said Wednesday that its net profit, buoyed 
t - , by strong financial results, surged 42 percent, to 2.7 billion kroner 

(&90 million), in the first half of 1994. 

atbank cwmtezs, Mr. Schulte- Operating profit rose only A5 percent, to 7 billion kroner, 
Noeifc said AUmnz and other affected by a fall in oil prices and a marked reduction in margins 
mstuers would consider ex- ^ refining operations. Sales rose 3 percent, to 41 .4 billion kroner, 
ponding then - direct manunce The company said it expected to maintain a high production 

buriness .where appropriate. By level in the second half but warned that there was great tmcerlain- 
dunmatmg middlemen, com- ty about ofl prices and the dollar exchange rate, 
panies are able to lower their The company’s exploration and production division posted an 
Slgnifica,lll:y ’ operating profit of 3.9 bilhon kroner, off 28 percent because of 
through direct saJes. • lower oil prices. It said that average production during the period 

through direct sales. 

But while Britain and. the had been a record 441,000 barrels a day. 

Netherlands have found direct Operating profit in the gas division rose 41 percent, to 2.3 
marketing of some kin ds of in- h iflinn kroner, due to hi gher volume and a somewhat higher ga* 
Surance po&acg to be lucrative, price than in the first half of 1993. 

“we’re still waiting for proof Separately, the Norw egian oil company Saga Petroleum AS 
that it can deliver big results in niri it would invest about $33 million in a Libyan oil field in spite 

Germany,” he said. 

•; Some companies have sold 
insurance in Germany directly 
since the mid-1970s, but then 

m said it would invest about $33 million in a Libyan oil field in spite 
of United Nations trade sanctions against TirpolL 
Arne Halvorsea, chief spokesman of the company, said that 
ty Saga was committed to a considerable investment in Libya. 

31 The UN Security Council tightened sanctions in November in a 

sales account for just 2 percent boycott that now includes refining, transport and production of 
to 3 percent of the market. ofl. _ 



Or YU PE \m Hah ' LwL 

Wediwsdaf’s Ctoiluu • 

Tables include the nationwide prices up to 
the closing on Wall Street and do not reflect 
late trades elsewhere. Wa Tho Associated Press 

kfi *3 13 

a 9-# 

High LowSIOC* 

» WPEWl HMt LowLOtatC 

! X& « = 

*£ 9- 

i.ite it a 
us d n 

ute iJ 
3.00 S3 
M 1 

JE W a 

s « S 

II si 


j a; 

l-2« 33 10 



•a 4 * 

Agencr Frtmee-Prase 

LONDON — Reuters Hold- 
ings PLC on Wednesday said 
pretax profit rose 14 percent in 
the first half, to £243 million 
($363 million) from £215 mil- 
lion a year earlier. 

Sales were up 22 percent to 
£1.09 billion. First-half costs 
rose 23 percent to £872 million 
because of investments in the 
company’s telecommunications 
infrastructure and an expendi- 
ture of £102 million on acquir- 
ing Quotron Systems and Tek- 
nekron Software Systems tnc. 


Disney Cuts Loss 

Continued from Page 9 
ed from the canceling of royalty 

BAT Profit 
Slips 4.2%, 
Sales Flat 

Bloomberg Butinas VfM 

LONDON — BAT Indus- 
tries PLC said Wednesday that 
pretax profit for the second 
quarter of 1994 fell 42 percent, 
although the year-earlier results 

“o 1 Ertts. «■—— ae* 

services company said pretax Brussels ' Stock Index 7,581.85 7,581,31 *0.01 " 

profit for the three months end- ■ FriBtidtnf^ DAX ' >2,140.44 2,751.96 

3? fe F r to £5 ‘ Frankfurt FAZ 811.22 813.08 -DJ23~ 

lion in the ycar-carlier period. Hats&tid HEX 1,859.77 i,842.;& -H>.94- 

The second quarter in 1 993 London Financial Tews 30 2,39fL20 2,423.00 -1.02 ■ 

included a one-time gain of London FTSE100 - 3^82^0 ■ 3.U720 -1.12,. 

Wa Qenem] Index M1JS 31037 ^43 

ran Brands Inc. The second MBaa' • .- fJBB • • t,122J)G 1,146.00 -2.08 

quarter this year included a Paris CACAO ■ 2J3B&J& 2,075.84 -1.02 V 

STihfXS' SS h^S 1 MK3E:- 

Pry. in South Africa. Vienna StocH Index ggjM 456.52 jj.32 

Excluding one-time items in Zurfcfc ' SBS 903JX3 925.36 -1.76 

both years, pretax profit rose Soutcos- Reuters AFP IniaaaiKinaJ HeraU Tribune 

nearly 14 percent, to £469 mil- 
lion from £413 million. 

Although Patrick Sheeby, the u APU hrloflv* 

chair man of BAT, said the re- Wy* . 

suit “disguises a much better 

underlying performance from • Oktiani» Bank & Kretfitkasse posted net profit of 780 million 
both financial services and to- kroner ($1 14 million) in the first half, up from 324 million in the 
bacco,” shareholders sold the 1993 first half, helped by much lower provisions for credit losses, 
company s shares in London. , Renault SA will ask shareholders to approve increasing its 
BAT shares closed at £4.36. to 5.67 billion French francs ($1 billion) from 3.40 billion 

P? 10 ? * r ? m Tuesday, by raising each share's nominal value. 

BAT said sales for the second _ „ - , . , , , _ . . _ . , 

quarter were unchanged at £5.1 mlhe Ewopean Commission has deared ll bilhon French francs 
billion, while tobaccosales rose of French government aid toward an8.3 billion-franc four-year 
1 percent, to £328 billion.- research program conducted by SGS-Thomson Microelectronics, 

Profit on tobacco in the three • Cr&fit Lyonnais, which posted a 6.9 billion French franc loss in 
months fell to £308 million 1993, is unlikely to break even before 1995, its chairman said, 
from £429 million in the 1993 • Semens AG is negotiating a full or partial acquisition of Amper 
quarter, but last year’s figures SA, the Spanish telecommunications company. 

toUM. • T h ' E “ ro *‘““' °r”H i5!oD ^ 2 c '^ “ “vesligMiao 

_ _ , . into government subsidies to Kloeckner Stahl GmbH. 

Profit at the U.S. tobacco 

unit Brown & W illiamson rose • EKO Staid AG’s 300 milli on Deutsche mark ($188 million) aid 
76 percent in the first six package from the government is being investigated by the corn- 
months of the year, “benefiting mission, which said it would not approve the aid until a viable 
from greater stability in the restructuring plan for the steelmaker had been drafted. 

UA dgarette market,” BAT , Empress National de Qectricidad SA’s first-half net profit rose 
saitL The comparaNe period m J3 j percent, lo 64.67 billion pesetas ($495 million), helped by 
1993 was marked by cigarette- rising electricity demand and a rale increase. 




London .-Paris 

FTSE 700 Index . . GAG 40 

3585* — 2400 

1993 ' 

Exchange'-. Index 

F M A M J J 


Wednesday Pm 


Stock Index 
DAX - • 









Fmancia] Txnaa 30 2,39820 

FTSE 100 - 3^30 

General Index 311^9 

MB ■ ■ 1,1224)8 

CAC 40 .- 2J0S&B9 

Affaersvaeriden 1^8631 

Stock tratex 455 j06 

SBS 9094)3 

404 96 









2 , 078.84 




-0:17 > 
^o.or : 

tOJ5 4„- 
- 1.02 *= 



- 0 SI 
- 0.32 

InionaiKHuJ HeraU Tribune 

U3. tigarette markti,” BAT 
said. The comparaUe period in 
1993 was marked by cigarette- 
price wars in the United States, 
after rival Philip Morris Cos. 
cui prices of its Marlboro 

• Lloyds Abbey Life PLCs pretax profit jumped 13 percent, to 
£171.8 million (3262 million), in the first half of 1994. fueled tay 
growth in the nonlife insurance business. 

British Telecom Profit Rises 3.2% 

Compiled by Ov Staff From Dispatches 

LONDON — British Tele- 
communications PLC said 
Wednesday its pretax profit 

^ as growing demand for 

and previously announced price centives, that included abolish- 
cuts in the fail or early winter, mg the weekday peak-rate pre- 
“We expect a divergent set of mium and cutting weekend 
quarterly reports this year.” said charges. The increase in call 
John Tysoe, an analyst at Socifetfc volume was not big enough to 

the parent company until 1998. 
But -analysts say it’s too early 

phone lines and equipment off- 
set a decline in revenue from 

to talk about light at the end of ~ 

th, .. Profit was £781 mil- 

the tunnel. 

“Overall, the figures point in 
the right direction, that is to say 
to an improvement in results 
from operations,” said Jacques 
Falzon, an analyst at the bro- 
kerage concern Transbourse. 
“But unfortunately, those three 
months are not very representa- 
tive. because of aO or the up- 
heavals.” he said. 

Mr. Eyraud said June was 
traditionally not a good month 
in the tourism industry, but be 
declined to say if the company 
was disappointed with the 
park’s performance during the 
Easter school vacation and the 
May public holidays. 

Analysts say they'll have a 
dearer idea of the park’s finan- 
cial future when the results of 
the rights issue are known next 

Euro Disney received a sign 
of encouragement last month 
when a Saudi prince, Walid ibn 
Talal ibn Abdulaziz, said be 
planned to invest as much as 1 .9 
billion francs to acquire be- 
tween 13 percent and 25 per- 
cent of Euro Disney slock, as 
well as lending up to $100 mil- 
lion to build a conference cen- 
i ter at the resort. 

(Bloomberg, AFX) 

lion ($1 billion), up from £757 
million a year earlier. Revenue 
rose 13 percent, to £3.38 bil- 

The results included a charge 
of about £54 million to cover job 
cuts, which cost the company 
£53 million in the 1993 period. 

lain Vaflance, the chairman 
of the company, said the results, 
which were at the top end of 
analysts' forecasts, would com- 
pensate for expected weaker re- 
turns for the remaining quarters 
of the year. In subsequent quar- 
ters, results wiB reflect layoffs 

Gfenta-ale Strauss Turnbull. offset the price 

While British Telecom’s call revenue fell 
volume increased during the Internatio 
quarter, call revenue was hurt dropped by 3 
by government-mandated price highly compel 
cuts and the company’s own in- company said. 

offset the price cuts; British call 
revenue fell 2.3 percenl. 

International call sales 
dropped by 33 percent in a 
highly competitive market, the 




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Page 13 

China Lets 
v U.S. Makers 
Of Software 
Bring Suit 



BEIJING — A new intellec- 
tual-property court has agreed 
.o bear complaints by three 
U 5. computer software compa- 
res that their products were 
Pirated by Chinese retailers, the 
official China Daily reported 

The oourt said it had accepted 

lawsuits by Microsoft Corp., Lo- 
tus Development Corp. and Au- 
todesk Inc. and begun a formal 
uwestigation, the paper said. 

The suit alleges that the plain, 
tiffs lost millions of dollars in 
profits from 10 incidents of 
copyright infringement. 

Stephanie Mitchell, vice presi- 
dent of Business Software AIK- 
*noe, said in a telephone inter- 
dew from India that the suit 
seeks from 510,000 to $30,000 
for each copyright breach, but 
■*total damages will be far high- 
sr.” The Washington-based alli- 
ance is repress ting the plain- 
tiffs in the suit 

The suit alleges that Sve com- 
panies illegally coned, displayed 
and sold the plaintiffs’ copy- 
righted software. The companies 
named are Gaoti Computer Co., 
Sanhua Electronics, radii Com- 
puter Co., Hukjin Computer 
Shop and the Beging branch of 
Giant Group, one of China’s 
largest computer software retail- 


The Intellectual Property 
Rights Chamber of Beijing Peo- 
ples Intermediate Court accept- 
ed the case after an inquiry in 
which the court confiscated at 
least six computers and 300 dis- 

grams. China Daily said PI °^ 

Washington has been pres- 
suring Beijing to strengthen 
protection of mteHectual prop- 
erty rights, including copyrights 
and patents. 

Meanwhile, Beijing rejected a 
U.S. demand that it close down 
26 compact-disc factories ac- 
cused of Hooding Asian mar- 
kets with pirated CDs. 

“It is against the law for an- 
administrative agency to order 
the closure of these factories,” 
said Zhang Yuejiao, a deputy 
department director at the Min- 
istry of Foreign Trade and Eco- 
nomic Cooperation. 

(Reuters, Bloomberg, AP) 

Honda: Vietnamese for Motorcycle 

Demand for 'Dream II’ May Spur Production Accord 

Bbombag Butuiea News 

HANOI — In many parts of Vietnam, 
“Honda” means ‘‘motorcycle." The use 
of a : brand name for a generic item may 
upset trademark lawyers, but it does not 
displease the sales department of Japan's 
Honda Motor Co. 

According to the consumers associa- 
tion in ' Vietnam, 94 percent of the cars 
and motorcycles in Hanoi and Ho Chi 
Mxnh City are Japanese-made. The po- 
lice department licenses about 2.7 mil- 
hem motorcycles nationwide. 

By far the most popular model is the 
lOOcc Honda. 

“It is hard to estimate the exact statis- 
tics,” says Yosfaihisa Takase, the compa- 
ny’s chief representative. “We believe 
that as much as 90 percent of the bikes 
on the road are Hon das." 

Nguyen Ha Kien, in her 20s, has saved 
$1,700 for a motorcycle. The Honda 
model she wants wlD cost $1,000 more 
than that, but she refuses to settle for 
anything less. 

“Hond&s are very mot” said Nguyen 
Ha Kien, using the Vietnamese word for 
trendy. “When you work for a foreign 
company and you drive a Honda Dream 
n, people look at you differently ” 

Demand for the Dream II has sent 
prices soaring. The $2,700 charged by 
some dealers compares with price ta gs of 
$1,800 or $2,000 on comparable Hon das 
in Japan. 

You could get by for about $1,000 less 
by buying a more powerful Honda — 
less practical in crowded and potholed 
city streets — or if you find a different 
make acceptable. 

Honda is studying the feasibility of 
opening its own assembly lines in Viet- 
nam, Mr. Takase said. "The company 
exports bikes from Japan, but others 
come from subsidiaries elsewhere in 
Southeast Asia. 

The Vietnamese government estimates 
that 270,000 bikes from all manufactur- 
ers are brought into the country each 

New motorcycles are subject to an 
import duty of about 30 percent, and 
importing used motorcycles has been 
forbidden since February. 

The government says importing mo- 
torcycles causes social disorder by cost- 
ing the government tax revenue while 
some organizations and individuals get 


Mr. Takase predicts the Vietnamese 
market will continue to grow. “The mo- 
torcycle has become pan of die lifestyle 
of Vietnam,” he says. “People cannot 
live without it. They know it’s utility and 
convenience in their lives and not just for 

Mr. Takase declined to put a time 
frame cm production, but be said the 
company was talking to major motorcy- 
cle workshops in Ho Chi Minh City and 

Hanoi to select locations for service and 
spare-pans outlets. 

Honda is seeking an investment li- 
cense and a joint- venture partner in Viet- 
nam. The company must also decide 
whether to locate its factory in the south 
or the north. 

But some of the hard work — creating 
a market through imports of bikes — will 
not be a problem. In much the same way 
that Hoover became the term for “vacu- 
um cleaner” in British households, 
“Honda” in Vietnam has surpassed 
brand-name recognition and is now sim- 
ply a word meaning “motorcycle.” 

Mr. Takase said some Honda motor- 
cycles here have withstood more than 30 
years of bumpy roads and heavy rains. 

The young form a ready market, and 
many Vietnamese are young More than 
63 percent of the population is under 14, 
according to the International Labor Or- 

In Ho Chi Minh City, hundreds of 
motorcyclists dog the main streets on 
weekend evenings, circling around the 
main square. In Hanoi, the reckless bikers 
race without brakes near the central lake. 

Some people work two or three jobs to 
find the necessary cash for a Honda. 

As personal wealth increases, Viet- 
namese officials want to make sure local 
industry gets a slice of the action. 

San Miguel Profit Surges by 40% 

Compiled by Our Swff From Dopotcfta 

MANILA — San Miguel 
Corp., a brewer and food-pro- 
cessing company, said Wednes- 
day its set income rose 40 per- 
cent, to 123 billion pesos ($85-5 
million), in the first half of 1994 
as economic growth stimulated 
sales of consumer goods. 

The company also said its 
sales had risen 8 percent during 
the period in spite of a two- 
week strike in the Manila area 
in June, and analysts as well as 
the compaiw said second-half 
results should be even stronger. 

“The growth in sales is pretty 
much across all product fines,” 
said Ramon Vicente Kabigting, 
an analyst at Anscor Hagedom 
Securities. “The important 
thing is that the 
den by sustainable. 

The group's net sales, a ft 
that includes sales of su' 
ies pro-rated according to the 
parent company's jsercentage of 

is evi- 

ownerahip, rose 13 percent, to 
32.9 trillion pesos. 

San Miguel, whose opera- 
tions include breweries in Hong 
Kong, China and Indonesia, ac- 
counts for about 22 percent of 
the benchmark Philippine stock 
index. It is the country’s largest 
company, with a market capi- 
talization of about 135 billion 

The company’s net income, 
excluding the sale of a stake of 
SO percent in Magnolia Corp. to 
Nestle SA and other nonrecur- 
ring items, declined 6 percent 
last year after sales were bat- 
tered by an electricity shortage. 
Net income was strong because 
the company’s performance in 
the first half was compared with 
“a very low base,” said Ivy 
Cayayan, an analyst with Pryce 

Although the company did 
not disclose sales figures for 
specific products, Mr. Cayayan 

said a recent talk with company 
officials revealed that sales 
growth was being driven by 
consumer spending for beer, 
soft drinks and food products. 

In 1993, San Miguel’s bever- 
age division contributed 65 per- 
cent of total sales. 

Analysts said San Miguel was 
likely to report even better re- 
sults for ail of 1994 because 
economic activity usually is 
stronger in the third and fourth 
quartern. “I expect the fourth 
quarter to be exceptionally 
strong," Mr. Kabigting said 

The company itself was also 
optimistic about the year. 
“Sales are expected to continue 
to be buoyant for the rest of 
1994, driven by strong com- 
modity prices and heightened 
construction and manufactur- 
ing activity resulting from the 
improved power situation and 
the recovery of major urban 
centers," San Miguel said. 

( Bloomberg, AP) 

Oil Discoveries Off Vietnam 

The Assoamed Press 

Foreign companies exploring 
for oQ and gas in Vietnamese 
waters will announce as many 
as five new discoveries in the 
near future, the chairman of the 
stale-owned oil company Petro- 
Vietnam, Ho Si Thoang, said 
Wednesday. He also reasserted 
Vie tnam ’s sovereignty over the 
Tu Chinh offshore area and 
said his company’s drilling ac- 
tivity there was continuing. 

Plan Port 

BEIJING — Bechtel Inc- the 
American construction and en- 
gineering company, has has set 
up a joint venture with China 
International Trust & Invest- 
ment Corp. to manage con- 
struction of a port planned for 
eastern China. 

The equally owned venture. 
Xinde Joint Development Co- 
will spend between $3 billion 
and S6 billion to transform the 
mainly rural 31 -square-kilome- 
ter ( 12.4-squarermle) Daxie Is- 
land into a port town. 

The development, on an is- 
land 140 kilometers south of 
Shanghai, will include major 
container and petroleum termi- 
nals and industrial, commercial 
and residential areas, the com- 
panies said. 

They said the island's natural 
deep-water port, its location 
close to Shanghai and Ningbo 
and C hina ’s desperate need for 
modern port facilities would 
make the project successful. 

The Daxie port will offer 
sheltered harbors and coastline 
depths of X to 46 meters, far 
deeper than most Chinese 
pons, the companies said. 

Cargo traffic through the re- 
gion’s ports will hit 520 milli on 
tons by 2003, more than triple 
1991’s volume, a prospectus es- 
timated, adding that the pro- 
jected traffic exceeded the ca- 
pacity of China’s existing ports. 

The Daxie Island project is 
expected to take 15 years to 
complete, and agreements on 
several first-phase projects are 
expected to be concluded by the 
end of the first quarter of 1995. 

CITIC and San Frandsco- 
based Bechtel will invest in por- 
tions of the project, and other 
parts wifi be offered to other 
Chinese or foreign companies. 

(Bloomberg, AFP) 

1 Investor’s Asia I 

Hong Kong 



Hang Seng 

Straits Times 

Nikkei 225 




ISO »i 


2,005 A A\ 

iiooo y 

m \ 


13000 \ ■■■ 

m lr U 

19000 « * 


2100 - W 

18000 - - - 

m F M A W J J 

2300 F~M A MJJ 







Wednesday Prev. 
Close Close 



Hong Kong 

Hang Seng 





Straits Times 





A9 Ordinaries 





Nikkei 225 




Kuala Lumpur Composite 










Conysostte stock 





Weighted Price 




Manila . 



2.726 53 



Stock Index 




New Zealand 






National index 




Sources: Reuters. AFP 

1 me, HmiLJ T, italic 

Very briefly! 

• T hailan d put Bangkok's mass-transit system on hold, one day 
before construction was to begin. 

• Australia's consumer price index rose 0.7 percent in the June 
quarter and 1.7 percent over the past year. 

• Far Eastern Textile Ltd., one of Taiwan's largest industrial 
companies, said provisional pretax profit for the first half of 1994 
rose 47 percent from a year earlier, to 534 million. 

• India’s Supreme Court cleared the way for cellular phone 
systems in New Delhi, Bombay, Calcutta and Madras. 

• Japan's motor vehicle exports in the first half fell 19.9 percent, 
the biggest drop in any six-month period since the nation began 
keeping such records in 1973. 

• Airbus Industrie said it would invest $25 milli on in maintenance, 
training and spare-parts facilities in China. 

• China's number of approved foreign investment projects fell 42 
percent, to 25,450. in the first half of the year. 

• Taiwan has set its gross national product growth target at 62 

percent for 1995, compared with 5.94 percent for 1994, because of 
rising domestic demand. AFP. Reuters, 4 P. Bloomberg 

Pacific Century Makes a Takeover Bid for Seapatwr 

Confuted by Our Staff From Oupohttes 

SINGAPORE — Pacific Century 
Group said Wednesday it had made a 
takeover offer of 2222 million Singapore 
dollars ($147 million) for Seapower Asia 
Investments Ltd. 

Hong Kong-based Pacific Century, 
which earlier bought a 13 percent stake 
in Seapower, said it had exercised an 
option to buy a further 32.7 percent at 

1 .45 Singapore dollar* a share, raising its 
total interest to 45.7 percent. 

In May, Pacific Century, owned by 
Richard Li. the son of Hong Kong inves- 
tor Li Ka-shing. said it would make a 
genera] takeover offer for Seapower as 
required by Singapore rules if it exer- 
cised its options. 

In exercising its option. Pacific Centu- 
ry said it would pay 72.8 million dollars 

for alt the paid-up capiu . Anglang 
Investments Ltd., whose sole asset is 32.7 
percent of Seapower. 

Seapower, which is listed in Singapore, 
has interests in financial services, real 
estate and hotels. 

Upon completion of the offer. Pacific 
Century plans to change the company’s 
name to Pacific Century Regional Devel- 
opments Ltd. (Reuters, Bloomberg) 





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Page 14 



Orioles and Indians Move Up 
After Splitting Doubleheader 

The Assodoted Press 

• ' A good day for Baltimore, a good night for 
Gevdand. In the end, both teams were feeling a 
half-game better. 

The Orioles began a day-night doubleheader 
by beating Gevdand, 104, on Tuesday. The 
Indians got even in the nightcap, winning 9-2. 

Both teams are in second place in their respec- 
tive divisions, and each gained a half-game be- 
cause New York and Chicago — the first-place 


teams in the American League East and Central 
Divisions — both lost 

. At the same time, the Indians stayed two 
games ahead of Baltimore in the wild card race. 

Sound a little confusing? Well, welcome to the 
expanded playoff races, where in tradi visional 

games have all sorts of postseason implications. 

Dennis Martinez, the winning pitcher in the 
second game, did not realize the Indians might 
actually be battling the Orioles, as well as die 
White Sox, for a wild-card playoff spot. 

“I find it out before we came here. I didn't 
even, know what was the wild card and how that 
thing worked," he said “But I find out, and then 
I concentrate on beating these people and at the 
same time help us keep pace with the Chicago 
White Sox." 

Martinez had a no-hitter until Brady Ander- 
son’s two-out, RBI single in the sixth. Martinez 
walked two and struck out seven. 

Gevdand took command in the first innin g, 
□ring an RBI double by Albert Belle and a ihree- 
rtm double by Manny Ramirez to go up 4-0. Belle 
hit a solo homer off Mike Oquisi in the third. 

In the first game, Harold Baines snapped a 
long homerless drought with two solo shots. 
Rafael Palmeiro and Leo Gomez also hit home 
runs for Baltimore, which withstood Cleveland 
homers by Belle and Eddie Murray. 

Tigers 9, Seattle 1: At Detroit. Travis Fryman 
broke an 0-for-26 slump with two doubles, two 
triples and four RBIs. 

David Wells allowed one run on five hits in his 
fourth complete game of the season. He struck 
out five and walked his first batter in 39% in- 
nings, a span of 156 baiters. Jim Converse al- 
lowed six runs on nine hits in 5Vb innings. 

Brewers 7, Bine Jays 5; Jody Reed celebrated 
his 32d birthday by hitting a pair of singles, 
scoring a run and driving in two more in a seven- 
run first innin g. Visiting Milwaukee snapped its 
three-game losing skid and stopped Toronto’s 
season-high eight-gome winning streak. 

Juan Guzman did not make it out of the first 
i nnin g. Ricky Bones went eight innings to win his 
third straight start, allowing five runs on 10 hits 
while striking out four and walking two. Mike 
Fetters pitched the ninth for his 13th save. 

Red Sox 10, Yankees 7: In New York, Tim 
Naehring and Mo Vaughn hit two-run home 
runs in the sixth inning as the Red Sox ended the 
Yankees' five-game winning streak. 

Naehring’s seventh homer of the year came off 
Jimmy Key and capped a Red Sox comeback 
that began after New York took a 5-0 lead in the 
first inning off Chris Nabholz. 

Royals 3, White Sox 2: In Kansas City, Mis- 
souri, Wally Joyner had a pair of RBI singles as 
the Royals won their fourth straight, their long- 
est since a five-game string in mid- April. 

Tom Gordon improved to 7-1 lifetime against 
Chicago, allowing two runs and six hits in TVs 
innings. Jeff Montgomery pitched the ninth for 
his 21st save. Wilson Alvarez gave up six hits and 
three runs in seven inning ^ 

Rangers 8, Twins 7: In Arlington, Texas. 
Rusty Greer’s RBI single with two outs in the 
eighth inning was the winning edge for the 

Doug Strange's run-scoring pinch-single in the 
bottom of the eighth off Rick Aguilera lifted the 
Rangers into a 7-7 tie before Greer drove in the 
game winner. 

Jay Howell, who allowed a run in the top of the 
eighth on Matt Walbeck's one-out solo homer, 
got the victory. 

Athletics 6, Angels (h In Anaheim, California, 
Steve Ontiveros and two relievers combined on a 
three-hitter, and Stan Javier tied a club record 
with three doubles for Oakland. 

Ontiveros was pulled after only 80 pitches and 
a two-hitter through seven innings. He walked 
none and struck out four. Bob Welch and BiUy 
Taylor each pitched an inning. 

Chuck Finley was charged with six runs and 
seven hits over eight innings but allowed only 
one hit over his last 616 inning s. 

Colorado shortshop Walt Weiss leaps over Eddie Williams to turn a double play and kill a 
San Diego rally in the sixth. The Rockies held on, moving within one game of Los Angeles. 

Bagwell Breaks 100-RBI Barrier, as Astros Defeat Reds, 6-5 

The Associated Press 

At this point in the season, what’s 
more amaring — Jeff Bagwell having 
101 RBIs or the Colorado Rockies 
being only one game out of first place? 

In a year dominated by Ken Griffey 
Jr.. Frank Thomas and Matt Williams, 
Bagwell became the first player to 
break the 100-RBI mark when he bo- 
mercd Tuesday for the Houston As- 

“I guess I'm as surprised as much as 
anybody else that I’ve got 101 al- 


ready,” he said. “Ft helped tonight, 
which is all I wanted. That was the big 
thing: It helped win the game.’’ 

Bagwell’s 33d homer led the Astros 
over Cincinnati, 6-5, cutting the Reds' 
lead in the National League Central 
Division to one game. 

The Rockies, meanwhile, continued 
to dose in on the NL West lead. Their 
6-5 win at San Diego moved them just 
onegame behind Los Angeles. 

“The thing that has been encourag- 
ing for everybody is we’re only one 
game out and no TV channel* are 
talking about us," said Mike Kingery, 
who hit a home run for Colorado. 
“They’re talking about the Dodgers 

and Giants. None of us feel we have 
played up to our potentiaL" 

Bagwell has 101 RBIs in 101 games. 
He needs to drive in only 10 more runs 
to break Bob Watson’s team record. 

“You try to contribute," he said. “If 
you can contribute every night, that's 
good. Some days you can't do it and 
you actually feel you’re playing for the 
other team. Baseball is a very hum- 
bling game." 

Bagwell’s two-run homer helped 
Houston take a 5-0 lead. The Reds 
came bade at Riverfront Stadium, ty- 
ing it in die sixth when Deion Sanders 
scored by running over the Astros 
catcher, Scott Servais. 

“I’ve had collisions before like that, 
but nothing that intense," Sanders 
said. “It was a big play, but we still 
lost. I’m so disappointed we didn't 

Luis Gonzalez doubled borne the 
go-ahead run in the seventh. 

Rockies 6, Padres 5: In San Diego, 
Mark Thompson won his major-league 
debut and Joe Girardi homered in his 
first game bade from the disabled list 
as Colorado improved to 26-25 on the 

Thompson. Colorado’s second pick 
in the June 1992 draft, is the first 
amateur ever picked by the Rockies to 

make it to the majors. He gave up three 
runs and seven hits in 5% innings. 

Steve Reed got his second save by 
striking out Derek Bell with a runner 
on third to cad the game. Scott Sand- 
ers (3-8) lost his fourth straight. 

Girardi, who missed 15 days with a 
tom tendon in his knee, and Mike 
Kingery homered for the Rockies. Bri- 
an Johnson tripled, doubled and drove 
in two runs for San Diego. 

Expos 5, Braves 3: Greg Maddux 
lowered his major league-leading ERA 
to 1.69, but wound up with the loss 
when his error contributed to four un- 
earned runs for visiting Montreal 

The Expos won their eighth in a row 
and improved to 7-3 against the 
Braves. Atlanta held a players-only 
meeting before the game, then lost for 
the seventh time in 10 games. 

Maddux, a four-tune Gold Glove 
winner, made a three-base throwing 
error as Montreal scored three times in 
the sevrazth inning for a 5-2 lead. 

Butch Henry gave iqp three hits and 
two runs in seven innings. John Wette- 
land got three outs for his 20th save, 
and second in two days against Atlanta. 

Giants 12, Dodgers 5: Matt Williams 
hit his major league-leading 38th home 
run, and San Francisco won before 
55,771 fans at home. 

Williams homered for the second 
straight day, and Todd Benzinger 
drove in three runs. The Giants broke 
open the game with seven runs in the 

Los Angeles lost for the 1 2th time in 
18 games. Mike Piazza hif his 21st 
homer and drove in four runs for the 

Phillies 10, Marlins $: Ricky Jordan 
and Kim Batiste hit RBI singles inlhe. 
12th inning that lifted Philadelphia 
over Florida at home. 

John Kruk, who battled testicular 
cancer earlier tins year, discovered two 
lumps — one on his lower abdomen 
and another on a rib — and wil] return 
to Philadelphia. Lenny Dykstra, shak- 
en up when he was thrown out at the 
plate by Sheffield, also left the game 
and had chest X-rays taken, which 
were negative. 

The Phillies led 8-2 in the fifth in- 
ning before the Marlins tied it in the 
seventh on Gary Sheffield’s two-run 

Ben Rivera was the winner and 
Robb Nen (4-5) was the loser. The 
Phillies are 1-5 in extra innings, all on 
the road, and Florida is 4-1 in extra 
innings, all at home. 

Mets 10, C a rifin afe 8: Rico Brogna 

hit a two-run homer in the 11th inning 
and drove in four runs as New York 
won at Sl i^ni* 

Brogna, who tied a ream record by 
going 5-for-S Monday, connected off 
Gary Buckets for his sixth homer. The 
rookie is batting .488 in his last 12 

Todd Zdle hit a three-run homer for 
the Cardinals and Bernard Giltey 
scored four times. Sl Louis lost its 
fourth in a row. 

Mike Maddux (2-1) was the winner, 
and John Franco got his 24th save. 
Franco was the Mels' eighth pitcher, 
matching a dub mark. 

Cubs 8, Pirates 4: Mark Grace and 
Rick Wilkins hit home runs in the 
eighth inning and Chicago pulled away 
at Pittsburgh. 

Sh&won Dunston also connected for 
the Cubs. Tom Foley and pinch-hitter 
Dave Gaik homered for the Pirates. 

Jose Bautista was the winner despite 
giving up two runs in the only inning 
he pitched. Mark Dewey (2-1) gave up 
Grace's tiebreaking homer leading off 
the eighth. 

The Cubs’ starter, Anthony Young 
activated from the disabled Bst before 
the game, left after four innings be- 
cause of arm fatigue. 

No Sign of Accord 
in Baseball Talks 

The Associated firm 

NEW YORK — It doesn’t seem that baseball ptayere and 
. oJSffie modi to talk 

expected to be the final bargaining sesson before the umon 

SC Both t ^s d ^^^d pessimism Tuesday 

groups met, andboth the anion leader, DOTaldF«*r, and rite 

management negotiator, Richard; Ravitcfa, said they didn t 

^°^SewSS^S^d?the Major League Baseball Players 
Association is expected to set a strike deadline when it confos 

encein New Yoi. c-t. 

. “We have the feeling that nothing we do matters, rear 
said. “They’re bn atraS and they're gamgto make whatever 

dec ago ns they've made.** ' - ‘-"A -. 

Ravitcfa sad Tuesday that the union has “not made any 
reasonable proposals” and expects players to seta deadline 
Thursday. The moist frequently mentioned posahibty for a 
strike date is Aug. 19. A . . . 

Some players are already planning August vaanonswith 
their families- And attendance figures indicate that the threat 
of a strike may be hutting ticket sales. 

Owners axe insisting players agree to a salary cap ana 
players say they woaY accept one under any circumstance. 
This would be the sport’s eighth work stoppage since 1972. 

Management, which reopened the collective bargaining 
agreement on Dec. 7, 1992, waited until this. June 14 to mate 
its salary-cap proposal. The players rejected the plan July 18. 
Players want to keep the current system of free agency and 

salar y a ri ntnrti nn, which ha* raised the average Salary tO $1.1 0 
minion, and fear owners unflaterally will impose a salary cap 
after the season nnlpgut the miftm forces an agreement by 

ic concerns but rather on issues like drug-treatment programs, 
■ Fans Organise for Own Strike 
Two organizations claiming to represent the interests _of 
baseball fans have decided to merge and seek a one-day strike 
on Aug. 13, The Associated Press reported from Cleveland. 

The purpose is to send a message to both players and 
owners as a players’ strike seems to near. 

Fans with season, tickets to Ang. 13 games are being urged 

at least inisstte first ccmple of ummgs. . • 

- “Ovcrwhrilningly, the fan support is there,” said Frank 
Sullivan, a season-ticket holder to Gevdand Indians games 
.and organizer of a group called Fans First. ? • 

“Everybody is fed up with all the money that’s in nutjor 
league basehaR” SuBmm said. “What’s forgotten in this is 
that the buck stops with the fans.” . . 

Sullivan formed Fans First with the hdp of a brother-in- 
law, Patrick O’Rourke and a friend, Ran Dalton. Fans First 
has mailed about 1,000 letters to Mends, fan groups and 
others urging than to strike. 

- The noups said they were not aware erf any other organized 
anti-smke campaign. ... 

“There may be others out there, too . The more the merrier” 
Sullivan said. “It would be just further evidence of a grounds- 
wefl trf loyal baseball fans out there who are fed up. 

Cricket Scandal Fallout 

-COLOMBO — SaBm Malik, captain of the Pakistan cricket 
team, said cm Wednesday that the world should laugh at England 
after the ball-tampering allegations made against their skipper, 
Mike Atherton. 

“Who is cheating — we or they? Who has got taught?” said 
MaHk whose team includes WasrinAkram and WaqarYounis, the 
fast bowlers accused of tampering, with the ball during Pakistan's 
2-1 test series against England in 1992. 

Malik said that whenever Pakistan won test matches and 
whenever Akram and Youxris took wickets, the team was branded 
as cheats. But he said tire Atherton incident last weekend would 
take some pressure off his bowlers. 

The British press has called for Atherton to resign after he was 
shown on tdteviskm robbing his hand in his trouser pocket and then 
robbing tire ball on the turd day of the first test against South 
Africa. Atherton originally denied any wrongdoing but later admit- 




(JppjJi Cj 9 


Page 17 

t •** 'V •- V:.'*S'^ .• -v? - ’ 4 '7“ “;vv 

> v 4s£t^ •: •:••• :^ ; :-v/.: •* -> •• " *? -i '■-■ •-" 

Basketball’s Best Chase 2 Dreams 

> Midori Rondoo/The Avowed , 

: Olimpiada Ivanova, carrying her daughter, celebrates her victory in the KMti)ometer walk at the Goodwill Games. 

What’s Age Got to Do With It? 

Russia’s Over-30 Women Runners Race Ahead of the Pack 

By Suzanne Possehl 

New York Tunes Service 

ST. PETERSBURG — Racing the old- 
fashioned way, without high-tech training 
and fancy sneakers, Russia's women's 
track team shows it still has a thing or two 
to teach the youngs teas. 

After three days of track and Geld com- 
petition, the Russian women are dominat- 
ing the Goodwill Games, having won 19 
medals — 5 gold, 10 silver and 4 bronze. 
The American women have won 11 medals 
— 4 gold, 2 silver, 5 braize. 

Yelena Romanova, 31, the 1992 Olym- 
pic champion at 3,000 meters, took the 
■ gold medal in St Petersburg on Sunday, 

’ with Annette Peters of the United States 
’ finishing third. 

Marina Pluzhnikova, 35, won the 2,000- 
meter steeplechase Monday. 

But the biggest surprise came in the 
1,500 when the 42-year-old Yekaterina 
Podkopayeva took the gold from Sonia 
O’ Sulhvan of Ireland with a time of 
3:59:78. Until Monday’s race, O’Sullivan. 
24, had been undefeated this year. 

Joking that she could have a daughter 
O'Sullivan's age. Podkopayeva, a mother 
of two. said she could not explain why but 
she keeps getting faster with age. 

In 1980, she did not make the Soviet 
Olympic team. Three years later,, at the 
World Championships in Helsinki, she fin- 
ished third in the 800- and 1,500-meter 
events. In 1986, she moved with her hns- 
band, then a Soviet Anny officer and now . 
her trainer, to Czechoslovakia. 

“I was an officer’s wife, bored with 
nothing to do,” she said. 

After having a second son, Podkopayeva 
decided to start training again. She failed 

to make the Olympic team in 1988, but a 

Iona. Then, in 1992, she won the European 

She said she still trained the same way 
she did when she was 18, lifting weights, 
swimming, running in the mountains and 
cross-country skiing. 

Podkopayeva, her husband and two 
sons, ages 8 and 13, live in a one-room 
apartment outside Moscow. He cooks 
breakfast and walks the boys to school 
She does the laundry and the grocery shop- 

They have just enough to get by, she 
said. The most she ever earned in a race, 

in a race, 

Tears and Spitted Beer 
In Joyner-Kersee Event 


ST. PETERSBURG — Spilled beer led 
to threats of disqualification for world re- 
cord-holder Jackie Joyner-Kersee an the 
second day of the heptathlon at the Good- 
will Games. A Games official accused the 
U.S. Olympic champion of putting beer on 
her javelins to gam a better grip, and 
through an interpreter, threatened to dis- 
qualify her. But she tearfully told the official 
she had not used the javelins after specta- 
tors had Spflledbeer cm the implements. An 
angry confrontation ensued between Bob 
Kersec, her husband and coach, and the 
field events referee, Albert Kahn. 

A shaken Joyner-Kersee continued, 
claiming the gold medal with her lowest 
winning score ever, 6,606 points. 

she said, was $3,000, when she won the 
World Championship this year in Toronto. 
That paid for two months of groceries, she 

Before perestroika, Podkopayeva said, 
she would have gotten a bigger apartment, 
a car and a dacha in the countryside for 
winning the world championship, 

“Now everyone applauds, but no one 
helps,” she said, referring to the Russian 
sports federation. 

Romanova said she was too embar- 
rassed to say what the federation paid her. 
“Let’s just say it's enough for a taxi ride to 
the airport,” she said. 

Romanova said the level of Russian 
field athletics had fallen over the last few 
years. “None of the youngsters wants to 
run,” she said. “They can sell Snickers on 
the street and earn more." 

Still, Romanova and Podkopayeva do 
not regret the transition to market eco- 
nomics and professional sports. “Now 
we're allowed to compete abroad and have 
contracts," Podkopayeva said. 

Both Romanova and a teammate have 
contracts. But Podkopayeva said she had 
not gotten any offers. “They think I'm too 
old,* she said, laughing. 

At the world championships and in most 
of her other 17 starts in the last two 
months, Podkopayeva wore Rcebok mer- 
chandise and earned about $1,500 a race. 

“The stuff was always the wrong size,” 
She said. “At the world championships, I 
needed a small, they gave me a large. Iran 
in shoes that didn’t fit-” 

As a sign of protest, she decided to wear 
a Nike T-shirt when she ran at the Good- 
will Games. “Now Nike has called me in to 
talk,” she said. 

As the World Turns, Keenan-NHL Drama Deepens 

New York Tima Servxe 

NEW YORK —The Mike Keenan Af- 
fair is not over even if he is a St. Louis 

Punitive action by National Hockey 
League Commissioner Gary Bettman on 
Sunday did not end it. It continues. 

The most bizarre episode occurred Tues- 
day, a chapter so peculiar that perhaps 
only Robert Ludliun could have conceived 
of it: a devilish conspiracy concocted by 
two foes, Keenan and Neil Smith, the 
Rangers general manager. 

Ji is a tale suggested by Keenan and 
denied by Smith and Bob Gutkowski, the 

president of Madison Square Garden and 
Smith’s immediate boss. 

Keenan’s charge: that he and Smith con- 
spired to manufacture the late bonus check 
payment that led to Keenan’s leaving the 
team July 15. 

“Somebody's lying,” Gutkowski said 
Tuesday, when informed of Kerman's as- 
sertion, “and I don’t believe it’s Neil 

The latest turn in the mystery emerged 
as an afternoon soap opera when Keenan 
called the radio station WFAN from a 
Chicago train station to say he had been 
wrongly tarred by the New York news 

media, had been a victim of Smith’s and 
had information damaging to the Garden’s 

can’t disclose that information,” 

“But I can’t disclose that information,” 
he said. 

Later in the day, the station revealed 
what it said were the contents of Lhe 12- 
page brief submitted by Keenan to Bett- 
man last ’Uiursday. 

The document was prepared for a hear- 
ing set for Monday into the truth behind 
Keenan’s having declared himself free 
from the Rangers on July 15 because his 
$608,000 bonus check was not delivered 
the day before. 


Major League Standings 


W L Pd. 

40 V AW 

55 « SO 

40 50 .490 



Now Yam 















Central DhrtUoo 







Kansas City 
















Calrtwnta— - 






W L 



42 37 



51 41 



40 53 



47 St 



45 SS 



central DHfstan 

58 4) 


58 43 



47 52 



44 53 



44 54 




4# SI 



41 S3 



f 48 S3 



39 43 



New Yorfc 

St. Louts 

LOT AODtrtt? 


Tuesday’s Une Scores 


2 S J ! 

Balnea J 1141. Gome* ImI. 

regard-®* _ _ _ . 

jjeSEJ » E * 1 
3SSE5. *** «*■ M,,mw 

""mm » « 

Bones. Fetters TO and Nlkm; Quartan, w. 
mans 111, Timlin (5> -and Borders, 
w— Bones. 10-7. L— Gunman. TO- TO. 5*— Fet- 
ters (TO). HRs— Milwaukee. Nltawn (11). To- 
ronto, CMaraO (9). Barters (3). 

CUcuw n> JOT HO-3 4 .0 

Kansas air on no wr-g « i 

Alva no, DeLeon (I) end LoVoWeruj Gor- 
don, Bremer IS). Meacham (Bl. Montnamenr 
If) and Mocfartane, Mavne (9). W— Gordon, 
ltd. L-Aham, 11-4. Sv— Montgo me ry < Sit - 
Boston so hi an— u u • 

How Yore M0 Mi ms- 7 it 1 

NobboU. C_ H. Howard (4), Bankhead (7). 
Fonts (71. Farr m. K. Ryan (9) and Berry 
Mil; Key. X m mond w (41. Ausanlo (Bl. P. 
Gibson TO and Stanley. W-Nabhotx, M. 
L—Kev. ISA. HRs B a rt on. Noehrlrw I7I.M. 
VaUBhn (32). New York. Nukes (7). 
Minnesota 010 004 114-7 11 9 

mas on. im - s » 2 

□Mholes^dwastram iM.Gufhrto m.wiuis 
(7).AguMen> (■) gntfWMbKfci Brown, Canrev 
ter (fil. Honeyc u tt (7). Whiteside (7), Howell 
(B).H0rdM)Wandl.l4pdHBWg.W H cwe fl .4-1. 
L_ABuHero. H. Sv— Henke ITS). HRw-Mto- 
neson. Hrtak (B). HMbede (5). 

MktaKMl 15S M0 000-4 1 0 

Ceotanta m an KM 7 l 

Ontiveros. MMcb 151. Terrier <91 end Stria- 
bock; FMrr.sarfmm-miindMvm.W-On- 
ttveros. L— Finley. 7-TO. 


los amoms aaa bh »-i * i 

SOB rrowdioa on oio io»-n U i 

Htrshlsor. Semax Ml. Sott (7). Deed (7). 
McDowoH (7) and Plena; VanLemanobam. 
MonMsane (7J, Burtta TO. Frey mandJe 

Awed, w— VanLondCWam, M- L— Her- 

shtawr. 5-i HRs— LOT Aiwetei Pimza (m 
Sen Francfsca Ma WIIDom* (38). 
riowtmnT JH M 3KMS 4 • 

AKuWta 020 ON 001—8 5 -3 

HsnrV. Rttoo (BJ. Wwttrfand m and ft 
Fletcher. SPOhr TO! Moddus. Bedreolan 
m and tfflrten. w-hnity, b- 1 L— G. Mad- 
dux. 04 5V— W ri te tana 12B). HRs— Altonto. 
Justice (T4L CTBrlen TO. 
auN Hi W SB— 8 M • 

PttNHreh * in TO-4 * I 

A. Voung. vans (5). Boutbta (71. Ptaoac 
ti). Mver» TO ond wnwra; t omim, ewm 
(B, R_ MsnzsAlM TO. VRamwr (•) «d 
SlounhL W— fioottsto. *4. L— Owwwy. w. 
HRs-aiKosaDuristm(lll«CraM(51. WH- 
Mas TO. Pltbtwroh. Wov TO. Clark TO. 
l yi iM 410 004 TO— 4 . U 0 

ttl II lull ill 091 M2 — 3 u o 

HamtMft. HafflPtan (4). Tft, Jones U.) ond 
Servata! Wta, 4- Ruflta 17). McElrw (B). J- 
aranHsv TO and Tausemec. 9f-Tn.Jene*.*- 
x u-J. Ruffin, 4-5- HRs— Hoasion, BoMotH 
(33). dmiwtatt. Boo ^‘ 9K - - >m_u 

Florida 1M “ *" 


west Bortand (4). Staeumh (7). Andersen 
(Bl D. Jones TO. RW*« (U) a nd PrTO« 
Souriv tLUM* (13. JohnsWW TO.Mntt*« 
(4), Mutts (7). Aquino (8), Non Wit Y- PBrK 

(13) and Natal. W— Rivera. 3G. L— Non. *-5. 
HR— Florida. Canine (171. 

Now Yor* MUM 08—10 14 • 

SL Louis in 080 TOO 01— 7 13 1 

(II (MM*) 

CastfOe, Rem Saser M, Mason (7) J.Man» 
nMoTO.Gazzo TO. Gundenai IB), M. Maddux 
no). Franco m> and Hundtev; Patadaw Ho- 
bywi (fl.Munfir <7K R. RoMtaues l»),Aroctw 
TO, Buckets ill) and PognoszL W-M. Mod- 
dux. 9-). L— BucUes. O-L Su— Franco (30. 
HRs-New Yurts, Hunriwv (14). Broena (4). Ry. 
Thomason (l4).SLLauts.Zafle ns). AHcwo <9. 
Colorado OS 900 404—1 f ■ 

■aw Dte«o bib ma mts 9 • 

Thompson. Gr. Harris (41, a Roffln (71. s. 
Rond TO ondQinundliS. Sander* Brocoli (3). 
Fiorle (N. P. A.MarttaM (7), Hoffman TO amt 
B. Johnson, Ausmus TO. W— Thomason, VO. 
L^-& Saodsrs.34. Sv-S. Used TO. HRs-Ca. 
lortdo, Klnaerv (4), Girard) (4). San (Mean 
Ausmus (7). 

Japanese Leagues 





































. 35 





WnduMOaVs Remits 

HtxTsnm i Yondud t 

ChuntcW 9, Yokohama 2 
Hiroshima 3. Yakutt 2 

pacific League 

W L T 

































Nippon Ham 






StUta 3> Nippon Ham 0 
OnM ft Orfx 5 
KbtMau 1& LMlB 3 

Aaiertcon Lessee 

. BOSTON— Put Aixke Duwsav outfielder, on 
TWfcv dbobhsl Rd. DestancM Gres Litton, 
pitcher, tar o aa kwnien) . Activated Andy TOrtv 
berlliv inflekNr, from I5*v iflsaUed M m] 
eotlaned tSmfo Pawtucket, IL Bought cantrad 
Bl Eric wne adchor, from Pawtucket 
CALIFORNIA— Rut Tim Salman, ouffleM- 
ar.Hi lSooviSiooied mt, retroactive TO July 
IL Wanted Garnet Anderson. aurfleMer, 
mm Vancouver, pcl. 

PETROIT— Put Mn» 1 taimnm n. uhcher. on 
Urine d b M d od Hat retraoetivw lo July to. Re- 
oriM Soon BMOmon. DKcIihr. tram Toado. iu 

SEATTLE— Recalled Rkh Amoral. bifteW- 
er.from Cataarv. PCLOrikmed GearseGlIft- 
atsH. pitcher, to Jacksonville. 5i_ 

TEXAS — Put Tim Leary. DHelw, an 15-doy 
dUabHd IM. retroactive to July 22. 


CHICAGO — Activated Anthony Voung. 
Pitcher, from 15-day disabled IM. Put Stove 
TrariaeL Pitcher, an 15-dov dtsaOtod list, ret- 
roactive to July 20. 

COLORADO— Acthntad Joe GtranfL 
catcher, from lSday Asrided IM. Optlonod 
Jayhawk Owens, catcher, to Colorado 
Springs. PCL. 

SAN FRANCISCO— Acttvaled Mark Car- 
nowNflhMr.ltan t5dwdbaHMffta.Op- 
lianea RHdcsrt Faneyle, o u t fi elder, to Phoe- 
nix, PCI- 


National BastetbcXl Anodatton 

LOS ANGELES— Staned Eddie Jones, guard. 

PHOENIX— Resigned A.G Green, foc- 
wartL to 5-nor ControcL Signed Westev Per- 
son. guard, to 4-year contr ai l. 


ARIZONA— Signed Mortc Vonder Pocl, trt- 
(enstvw tackle. 

DALLAS— Attredo Roaorts. tight end, retired. 

GREEN BAY-PutOerUe Dean NehtenA 
and Us Rov Smith, nnebacker, an Inlurixi Hit 

INDIANAPOLIS— waived ChartMArtouck- 
le. tigM end; Cedi Gray, offensive tackle ; 
Robert Brawn, defensive end; and Alex Gar- 
den linebacker. 

KANSAS CITY— Signed Franklin Thomas, 
light end 

MINNESOTA— Released Adam Schrwlber, 
cantor. Stoned Frank Cornish, center. 

NEWORLEAMS— Withdraw contract otter 
to Rickey Jackson. UnetxKker, making him a 
tree agent. 

SAN F RANG SCO— Waived Brian Treau, 

wUtr receiver. Re-stoned Karl Wlhsan. dototv 

Hue end. 


mttoaai Hockey unmet 

CHICAGO— Stoned Bab Prabort. left wing, 
to 3-yaar oentract Plus an action year. 

DALLAS— Stoned Todd Harvey, center. 
Stoned Gram L*dvanLd*tenseman.l03-y»ar 

DETROIT— Waived Bob proctrf , left wtng. 

LOS ANGELES— Acautnid Sean 0‘UgnnaU. 
detoRsemoa fram BuHala for Doug Hoada, 

N.r. RANGERS— Traded Esa THOtanen. 
(erwontand Doug LkMer.aehmsefnan, to St 
Louis for Petr Nedved. center, 


PENN STATE— Announced that Curtis 

running hock, trill net attend school tnts 
(gHbecouie he tailed coUeae entrance mtaml- 

SCTON HALL— Halted George Blanev 
ittenh ourieftxig coack. 

WISCONSIN— Announeed 1 Hie Mtoanaden 
of Shi Jackson, man's basketball coOTH- 
Named Stan Van Gundy men's bOMuHbfln 



By William C. Rhoden 

New York Tuna Semce 

C HARLOTTE, North Carolina — Two large red. white and 
blue buses negotiated their way through midmoming traffic, 
moving determinedly toward the Charlotte Coliseum. 

Despite their size, the buses moved smoothly as they wove in 
and out of traffic: a quick burst here to exploit an opening, a bold, 
powerful lunge there to get into a faster lane. 

In many ways the buses were like their passengers — members 
of Dream Team II, 15 of the world’s best basketball players. Small 
quick players like Kevin Johnson 

and Mark Price. Big powerful , r .... *b* 

ones like Alonzo Mourning and vantage j^V- 
ShaquiDe O'Neil- Players who can Point • 

move through traffic. 

The team played its first exhibition game Tuesday night, 
defeating the German national ream, 114-SI, before a said-out 
crowd that came to watch a dream doubleheader. 

In the first game, the women’s 1994 Goodwill team played an 
exhibition against a select women's team of talented college 
players, overwhelming them by a score of 104-47. 

Dream Team II is carrying a unique pressure. Like its predeces- 
sor, it is not only supposed to win the World Championships in 
Canada next month out crush opponents in the process. But even 
more than that, it will be measured against the standard of the 
original Dream Team and its 44-point average margin of victor)’ 
en route to an Olympic Gold in Barcelona two years ago. 

That burden has created a compelling debate: Could Dream 
Team I — with Michael Jordan, Charles Barkley, Larry' Bird, Magic 
Johnson and Patrick Ewing — defeat Dream Team II with O’Neal, 
Mourning, Sean Kemp, Reggie Miller and Derrick Coleman? 

Barkley recently told Kemp that Dream I would easily win. “I 
said that we were too young,” Kemp recalled. “We’d run away 
from them.” 

In any event, the only squads the Dream Teams can compare 
themselves to are each other. No team that’s entered in the world 
tournament could come within 20 points of beating either version. 

The larger mission of lhe Dream Team approach is to spread 
the gospel of basketball throughout the world using the world's 
greatest players. 

Basketball in the 1990s, like jazz in the ’20s through the ’50s. has 

Shumacher Team 
Discussing Appeal 

Con^Jktf bj Our Staff From Ditpotcha 

LONDON — The Benetton team of the Formula One 
championship leader, Michael Schumacher, said it would 
decide on Wedenesday wheiher lo appeal over its driver’s 
two-race ban. 

Schumacher was banned Tuesday for ignoring a black-flag 
order to stop at the British Grand Prix earlier this month, and 
lost the six points he earned by coming in second to Damon 
Hill at the Silvers tone event. 

The German driver has seven days to appeal against the 
International Automobile Federation penalty. But the appeal, 
which would automatically suspend the ban. would need to be 
lodged sooner for Schumacher to compete in his home Ger- 
man Grand Prix at Hockenheim this weekend. 

“We are considering and discussing the matter.” said a 
Benetton spokesman, saying that a statement would be re- 
leased within hours on whether the decision would be accept- 
ed or appealed. 

The Brazilian driver Rubens Barrichdlo and Mika Hakkinen 
of Finland were both given one-race bans by the FLA on 
Tuesday, also for offenses at Silvers tone on July 10. But their 
bans were suspended for three races. The pair collided on the 
final bend of the race and Hakkinen overtook another car on 
the formation lap. 

Hill, the Silverstone winner, was also summoned to appear 
before the FIA world council disciplinary hearing in Paris to 
explain his action in collecting a British flag from a spectator 
during his slowdown lap. But Hill, who will be the favorite to 
win at Hockenheim if Schumacher is absent, escaped punish- 
ment after proving that he had slowed down but not stopped. 

(AP, Reuters I 

become the United States' most significant cultural export to the 
world. As a result of the Barcelona Olympics, European stations 
have purchased the rights to more “jive" National Basketball 
Association games and have pul more games in prime time slots 
and on better networks. 

But for all this expansion and clever marketing, the missing 
component in the United States' burgeoning basketball machine 
is its women athletes. At a time when women’s basketball is as 
great as it has ever been, women arc still being forced into exile 
after brilliant collegiate careers. r 

What brought this to mind was Sheryl Swoopes, the forma 
Texas Tech All-An] cri can who played here Tuesday night as s 
member of the Goodwill team, scoring 12 points. Bui a lasting 
recollection of Swoopes was her stunning 47-point effort against 
Ohio State in the 1993 national championship game. Thai perfor- 
mance capped a season in which she was also voted the college 
player of the year. 

That was the last most of us saw or heard of her. After college 
she followed the rugged migration pattern of other great female 
college players and headed to Europe. Out of sight. Out of mind. 
“That was a tremendous drop for me. but it happens to women ail 
the time,” Swoopes said Tuesday. “Guys know that if they're good 
enough in college they have the NBA or the CBA to look forward 
to and the option to go overseas. When I came out of college- 1 
knew that if I wanted to keep playing 1 had to go overseas.” 

S WOOPES signed with an Italian team. Basket Bari, and 
averaged 23 points in 10 games but finally returned after three 
months because she wasn't being paid. 

“The guys don't care anything about that." Swoopes said. "1 
just sit here and look at them and wish that maybe someday that’s 
going to me out there working out, someday I'm going to be pan 
of a Dream Team. The time is right to develop a league in the 
United Slates. There’s a market here, it just has to be cultivated.'' 

In fact, a leading sports manufacturer has come out with 
posters of former great female players, and two trading card 
companies have manufactured cards with top female players. . 

“We think our day is going to come.” Swoopes said. “That's my 
dream: one day — in my lifetime — to have some type of 
professional league in the United States for women to pluv in. It-> 


Italy Prevents U.S. Basketball Gold 

ST. PETERSBURG (AP) — The U.S. basketball team was 
eliminated from gold-medal contention at the Goodwill Games 
Wednesday, losing to Italy, 81-72. 

The te*m of college players led, 40-39. at the half, but the 
I talians scored the first six points of the second half and led the 
rest of the way in the semifinal game. 

A technical foul on Shawn Respert of Michigan State helped 
Italy break the game open. The Italians convene. 
free’ throws for a 68-57 lead with <s:21 

Italy’s Grand Prix May Be on r I rack 

ROME (Reuters) — The Motor Sports Federation of Italy on 
Wednesday withdrew its opposition to the Italian Formula One 
Grand Prix at Monza after proposals to make the track safer were 
approved, but the final decision on whether the Sept. I i race goes 
ahead rests with the minis ter of environment and culture. Domen- 
ico FisicheDa. 

The federation, which called off the Grand Prix two week* ago 
for safety reasons, said in a statement that it no longer opposes the 
race after the regional assembly of Lombardy approved a plan Vo 
make the track safer by removing over 500 trees around its 
dangerous “Great Curve”. 

For the Record 

World-champion Brazil is to play England next summer in a six- 
team soccer tournament that wUl be a dress rehearsal for uit- 1996 
European Championship. The tournament will be played in 
England over 10 days, starting at the end of May. (API 

Derrick Coleman of the New Jersey Nets plans to take legal 
action against a woman who claimed he raped her at a Detroit 
hotel, after a prosecutor said Tuesday that the National Basket- 
ball Association’s highest-paid player won't be c'n.trgeti tAP) 

E<kEe Jones, who played college basketball at Temple Universi- 
ty, was signed Tuesday by the Los Angeles Laker* ic- a six-year 
contract worth $13.5 million. <LATi 



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Page 18 



Other Medical Plans 

Playing the Dating Game 



President Clinton's oriai' 

f V President Clinton's origi' 
nal health plan thrown out the 
window, every member of Con- 
gress is submitting an alternate 

Here are just a few of those 
on offer. 

Senator Louis Pasteur has 
written an “all-inclusive com- 
pletely voluntary no-cost- to- 
the- taxpayer” bill. You are enti- 
tled to either 

10 visits to the 
doctor of your 
choice, or two 
tickets to a 
Barbra Strei- 
sand concert 
worth SI. 000. 

Your health 

insurance poli- g* jlV 
cy will guaran- 1m.fZ8r 
tee vou a seal ^ T, , 

in the doctor's Buchwald 

reception room, where you will 
be allowed to wait for a full 
working day. You will also be 
permitted a second opinion by 
calling 911. 


Senator Harvey Cats can’s 
proposal is almost the same ex- 
cept that neither you nor your 

make a second visit to your 
physician's office, and the gov- 
ernment refuses to pay for it, 
the doctor has the right to take 
your house and sell it to another 
one of his patients. 

Representative Sam Prosax, 
a conservative Republican from 
Texas, has offered a bill that no 
one can receive free health care 
until the Whitewater and Paula 
Jones matters are all cleared up. 
He has also declared that gun 
wounds caused by automatic 
weapons may not tie treated un- 

less approved by a medical 
board of NRA lobbyists. 

employer will have to pay any- 
thing. All the money ror medi- 

thing. All the money for medi- 
cal care will be charged to the 
Native American casinos, 
which are now raking in money 
at an unbelievable rate. 

Congressman Fernand Co- 
lumbus advocates universal 
coverage but has added an 
amendment that if you have to 

You may not undergo an 
abortion under the Prosax 
health bin but if you are the 
father of the child you will re- 
ceive a free Nintendo game in 
the mail. 

Senator Roiy Meezies says 
that the only way to have a good 
health bill is to eliminate the 
middle man — the doctor. 
“Doctors take up too much or 
the medical costs in this coun- 
try’. Most people could easily 
treat themselves by watching 
Dr. Joyce Brothers on TV or by 
reading Reader's Digest, I'm 
not saying that we need to close 
down every hospital in America 
but there's no harm in convert- 
ing half the buildings into park- 
ing garages for basketball 


By David Streitfeld 

Washingitm Aw St/mcr 

W ASHINGTON — There’s a 
scene toward the end of “Sisters 
& Lovers," Connie Briscoe’s novel 
about dating and mating in Washing- 
ton, that might seem a bit extreme. 
Surely, some male readers may think, 
Briscoe has stepped over the line from 
realism into caricature. 

Here’s the setup: Beverly, a 2§- 
yearold editor at an enviro nme nta l 
magazine, has a fender bender at the 
Watergate with Peter, a 34-year-old 
accountant Despite this unpromising 
start, they beg^n dating. Beverly is 
hopeful. After a decade of dissatisfac- 
tion with black men, perhaps she will 
find happiness in the arms of this 
white guy. 

True, there are warning signs. Even 
after a night of love, Peter shows no 
inclination to bathe. He's a fuss-bud- 
get about the coffeepot, measuring in 
exactly two and three-eighths cups of 
water with the help of a tablespoon. 
And be always has an excuse to keep 
her away from his house in Reston, 

Smart move. It seems the place was 
padlocked by the fire marshal. When 
Peter finally lets Beverly in. she finds 
boxes stacked from floor to ceding in 
the hallway, countertops heaped with 
dishes, jugs of bottled water and cans 
of food, junk rescued from curbsides 
and trash bins, newspapers and maga- 

women. *a the Washington metropoli- 
tan area for every 10 angle-black men. 
When you consider that the women 
have higher-status aad better-paying 
j obs than the men — a highly relevant 
Sacfin ihe mating game — the dispari- 
ty becomescren. greater. 

“Ifyoucan five with the fact that it 
may .take you more time to find just 
what ‘you're looking for, or that yon 
may sever find what you’re looking 
for. that your standards aren't too 
high,” Briscoe says. “But if you’re nris- 
eyible with ihat and really want to be 
with somebody, then maybe you need 
to lower your standards, 

“Thcitfs alot of women-who area t 
wflHngtodo that,” she notes. “They’ a 
rather be alone” Foremost among 
^bcraiCtanme Briscoe. 

Morcoften than not, first novds are 


jerry Lev Lewis has #s 
snooted out a SAl miffion dis- : 
Zrvxncnt with she lmernd 
r^sitc Savi**, burn will 
veep him busy for the foresee- 
aSe future. The veteran rocker 

gam the $ 560,000 he h * 

S 32 - ** JRS : 

1 tHM> 



know best is the one she fives with 
every day. While Briscoe did this with 
the loOfang-for-a-matc angle, there’s 
no trace m - ‘'Sisters & Lovers of 
something dse that is a major part of 
her life; her deafness. 

While the dnstfacket of “Sisters & 
Lovers” acknowledges the disability 

P; <T» | Jt V J 

zines saved so they could someday 
read, clipped and filed. 

Dracula’s Castle Needs 
Work to Avoid Collapse 

The Associated Press 

BUCHAREST — The castle 
the world associates with Dra- 
cula is in danger of collapse if 
urgent repair work is not car- 
ried out, its architectural direc- 
tor said Wednesday. 

The rock on which the 14th- 
century fortress stands has been 
deeply eroded over the centu- 
ries, a government study shows. 
“The cracks in the rock are 
plainly visible to the eye," the 
architect. Cornel Tales, said. 

Senator Bill Hiplam, a Dem- 
ocrat, said that there was noth- 
ing wrong with the Clinton plan 
except that it was named after 

“It would make more sense if 
it was called the ‘Hillary Night- 
ingale' plan and let it go at that. 
My constituents want this 
health insurance very badly but 
they want Arnold Schwarzeneg- 
ger "to pay for it. I am asking for 
sacrifice on the part of every 
segment of the American popu- 
lation, which means that people 
should not get sick unless they 
absolutely have to. Also, those 
sick people able to work, which 
is half this country, should not 
be waiting for handouts. Thev 
should get out of bed and rind a 
job like everybody eise.” 

read, clipped and filed. 

Suddenly. Beverly gets it: “This 
man — the man she'd been spending 
all her free time with, the mao she’d 
been sleeping most nights with, eating 
with, drinking with, and thought she 
was falling in love with — was a nut." 

Poor Beverly, doomed to be disap- 
pointed by the male of the species. But 
are the guys hereabouts, particularly 
the black men that “Sisters & Lovers” 
focuses on, really so weak, or is this all 
just the novelist's creativity at work? 

Briscoe says it’s not her imagina- 
tion. For one thin g, “the incident at 
the house really happened to me, and 
it may have been 10 times worse than 
it was in the book.” She shuueer* 

Indeed, many of the episodes in 
“Sisters & Lovers” happened to the 
41 -year-old D. C. native or her 
friends. That includes Lhe blind dale 
■n the Florida Avenue Grill in which 
'he guy requests oral sex. as well as the 

Mirytaa fley/Tbe Wwhtapuo Ten. 

Connie Briscoe’s first novel explores interracial relationships. 

I don’t rhmlr of myself as a deaf per- 
SOn.”’ • 

Until the success of her novd al- 
lowed her to quit, she worked as an 
editor at Gaflandet University. Aside 
from that; however, she lived in the 
hearing world. A skilled lip-reader, 
she omy occasionally asks her inter- 

racketeering tor ms roie m an 
attack ooNaracy Kerrigan and 
drew two years in prison. Har- 
ding was placed on three years’ 

coworker who suggests ripping back 
home for dessert in bed. 

So it gpes throughout much of the 
novel, which offers portraits of Bever- 
ly and her two older sisters, Evelyn 
(whose loving, successful husband is 
the envy of all. until his attention 
starts to wander), and '3iannaine 
(whose husband is a chan rag scoun- 
drel whom she cannot throw out). The 
women compete with and criticize one 
another but underneath are strongly 

' What’s me matter ith these black 
men?" asks Beverly. “Most of them 
are unemployed or on drugs or injaiL 
Pitiful And the ones who don’t have 
all thee problems are married." It’s 
not that there aren't any good black 
men; it’s that there aren’t enough to 
go around. 

The novd is in the vein of Teny 
McMillan’s immensely successful 
“Waiting to Exhale.” While “Sisters & 
Lovers” isn’t reaching those best-sell- 
ing heights, the publisher is pleased — 
six printings in three months, nearly 
46,000 copies shipped to bookstores, 
dearly, Briscoe has found an audi- 

She denies any charges of male- 
bashing, pointing out that she has 
some positive male characters as wdL 
“I think Pm realistic. The fact that this 
issue comes up over and over again 
should indicate there’s a problem out 
there,” she says, adding, *T don’t think 
all black men "have problems, but 
some of them do.” 

The 1990 census statistics add a 
factual underpinning to the sisters’ 
complaint, showing 13 tingle black 

locator to rcpeat a question. 

Writing fiction ca me naturally to 
hen it’s an env ir o n ment in which the 
only voices you need to hear are inner 
voices. Yd Briscoe's new avocation 
came as a surprise to iter family. 

“She never talked about writing a 
.novd," says hex sister Pat “I didn’t 
think this was something she aspired 
to. Connie was always the one who 
wanted to be married with kids.” 

She was married once, when rite 
was 28. It doesn’t seem so old now, 
bat it did. then. The marriage ended 
after a few years. 

“At this point in her Hfe,* says Pat, 
“Connie isn’t saying, Tf I don’t find a 
man in the next year it's all over.’ She’s 
pretty content m what she’s doing:” 

But a longing far a permanent rela- 
tionship is deeply rooted- Says Bris- 
coe: M I don’t - think most women ever 
give up completely” 

Ufe has taken a turn for the 
better for Mdba Moore, the 
Tony Award-winning actress 
and singer who went on public 
in. December. On 
Wednesday Moore opened in 

Cole Porter's “Anything Goes 
at Montclair State University in 
Montdair, New Jersey. 





Forecast for Friday through Sunday, as provided by Aceu-Weather. 















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Europe md Middle East 


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North America 
Heavy showen 

Heavy showers and 
IhundersKwms wil soak the 
East Friday and Saturday, 
including Boston. New York 
and WasMrpJon. D.C. The 
heal wave will connnuo 
across the Western slates 
away from the coast, with 
the greatest dopanures from 
normal in northern! ciios. 


Frequent showers will 
dampen the Bmish Isles 
Saturday and Sunday, 
although lhe heaviest wfl be 
mostly north tf London. Hot 
weather will persist across 
much tf central end northern 
Europe (ii rough rhe 
weekend. Stray afternoon 
ihundorsiorms wilt pop up 
From Paris lo the northern 


The southwest monsoon wti 
continue lo bring frequent 
showers and Oumdeistorms 
to the PhHippcies. Including 
Manila. through the 
weekend. Showers will 
continue to soak Hong Kong 
and southern Chine. 
Unseasonably hot weather 
wHI persist across much ol 
Korea and central and 

M0*S 28*2 

Capetown 18*4 

CnoUwica 25/77 

Ho*w** 21/70 

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N&fti 21/70 

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Middle East 

Latin America 


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31*8 22/71 0 


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pc 32/71 14/57 c 
pc 26(79 1368 rfl 
sh 28*2 21/70 eh 
















fltet m) 

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parity Bunny 






■ 1O20: 


































portly sunny 
























partly sumy 

28 79 







partly sunny 































Tel AW 








Cartbbaan and Wwat Atlantic 















E - 


St- Thomas 









partly sunny 





■ Q£ ■ 




clouds and sun 








tfoiste and otm 




0-1 . 




clouds and rnn 






12-25 . 


partly Btfiny 







Pate Beach, Aus 

portly sunny 







Bay tf Islands. NZ 







25-50 . 










partly sumy 




2 -a • 



Location WmMi 

Daewv ms 
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V Cdrfu 
tonir . 

Tet Aw 


party tiny 

. aurny 



ctaudS and sun 
snv . 

VHna - 



5 12-22 
8W 15-30 
NW 10-20 
SW 1245 

- W 1222 
SW 15® 

-NW 1525 
NW 15-30 
SW 2tM0 *“ 
_ s 2iMD 

6 15-30 

SE 12-25 
N 20-40 

Tet aw stftny. 

Caribbean and Wast ABanUc 
Bartedo* • ‘ . mm 

SW 20-40 

mny . . 9]/K ZV75 27«0 
paidy sunny 33IB1 . 24/75 

sunny 35/85 25/77 28/B2 

pertly sunny:. 3Z/BB . 2877 27/BO 

1-2 ENE 20-K 

T-2 E 2550 

1-2 E 25-35 . 

1-2 SE 20-35 •- — 





Pate Seech. Aus. , 
Beytf Marts, NZ 
Shrahama . 

Claude and sun 31/B8 22/71 30Q6 

thunderstorms 32/89 25/77 23/84 

clouds and sun 33/91 23/73 2084 

pen^ sunny 32®9 2817 30/86 

dniwa 16/VT WS 15/39 

Cloudy 16*1 10/50 10/131 

pertly sunny 33/Bi 27*0 26/79 
Clouds and sua 31/88 .24/75 2678 

SW 10-20 
SW 15-25 
SW 12-28 
SSW 12-22 
WSW 30-60 
SW 20-40 
SE 20-40 
ENE 2S-*5 

.f *. ■»- . 
! • 

AKTAoce® Numbers 
How to call around theworid. 

1 . Using the chart below, find the country you are calling from. . 

2. IXal the corresponding AE8T Access Number. 

3- An AI^ English-speaking Operator c)r voice prompt win ask for the pbone number yoti wish to call crcoarvea you Da a 

customer service repoieseniaiive. .... 

To receive your free vvaflet card of AEsa^ Access NtHnben,juSt«Jial the acoessinimber of 
die aaon/ryjoure in and askforCnstorocr Service. 

Tiwel in a world without borders, time zones 

or language barriers. 





Hang Kong 






New Zealand 


Sti Lanka 

ASIA Italy" 

1-800^81^)11 . Oedbctensteto* 

— 10831 . Iilhimntoa . 

018-872 Luxembourg : 

800-1111 Marrrfmrto, F.YJL 

000-117, Mshsff .. 
001-801-10 Monaco' 

0Q39-111 TAatoedtondar* 

' 009-11 Norway - 

11" .FoJamr*-.. ; . 

8004)011 i»octmt»r 

000-911 Romania 

305-11 30Mate^(Mo8coeF? 

' 235-3872 Skwaida. ■ 

. 800-0111-111. Spain* 

, 43(M3Q Sweden" 

0060-102804) . Swfeafcrf 
001W91-HH . OK. . 
EUROPE - Okrttocr. 

172-1QI1 Brazil 
155-00-11 Chfle 
8*196 ColmUrfa 

.0-800-0111 Costa Ricarw 

F.YJLof 99 -800-4288 Ecuadoi* 

- 0800-890- UO El Salvadors 

19a -0011 . Guarsmala* 

r 06 -023 ^ni Gttyaumr* 

S OQ-190-11 Hondurashe 

0*0104804011 Medea*** 

05017 - 1 - 288 , Niraragmi (Maoagna) 


QQa -0312 

960 - 11-0010 



190 ' 





S;-- .. f 

- ewa/gomi ; Imagine a world where you can call country to country as easily as you can from home. And 

• reach th^HS. directly from over 125 countries. Converse with someone who doesn’t speak your 

language, since it’s translated instantly. Cali your clients at 3 am. kno wing they'U get the message in 
i : your voice at a more polite hour. All diis is now possible with AR£E J 

To use these serv ices, dial the A3XT Access Number of the countr\- you're in and you'll get all the 
help you need With these Access Number and your AIXT Calling Card, international calling has never been easier. 

If you don’t have an AIXT Calling Card or you'd like more information on AT&T global services, just call us using the 
convenient Access Numbers on your right. 






Czech Bcp 




German y 





&a4lU ' MIIHftEEAST . 

022-90&0il Btiaafar- - - . - . 8QM01 

0800-100-10 Crtnf-y—’ Q8Q-90QIQ 

00-1800-0010 ferad 177-100-2727 

99-38-0011 KuiwA • 800-^8 

00- 420-00101 Lebanon fflehro) Aafraoi 

aOOl-OOlO ' . Qattr • . ' 080Mn-77 

9800-100-10 SamHAghtt - 1-80Q-IQ 

19A-0011 t tefay* ’ - • v 00000-12277 

■ 01304)010 dAE." -7 ' ~ . 800-121 

00-800-1311 - AMERICAS , ... . 

004^80001111 Argentina*' ~ 001-aj0-200-iin 

999001- Bfeflze*-* -• • : 555 

1- 800550000 ‘ ' . OSOO-1112 

01-800 -4288 ’ P anamaw ' ~ ‘ ' ’ 100" 

- 155- 5042 P ertT - r “ 

OP^aSHWlfl . Snrtname - ~ ‘ .T 

__ 9009900-11 Uruguay • 0004 10 

- VenezudJ Ii S0OIW20 

; 15500-11 ■ CAR IBBEAN rr ~ 

_• 0500 ^-0011 Batooeia l-aomp?;.28g][ 

8*1000! Benmxia* t-8Q0^72-28 fil 

^ frfefefaVJ- ' 1-800-872-2881 

: — — 1 SQMQl - Gryinan Islands - 1-800-872-2881 

^^ Q1Q Grenatfa " . 1O0M72-2881 

— 1771W ~^ /g7 . . . 001-800072:2883 

— — jjjftjffi frraies- _ OOOOfl72-2881 

. ggh-Anffl 001-800072-28 81 

0S0 ^ H1 ~ 77 St. Ktn5/Nevi3 10 00072-2881 

: WW ' AFRICA “ ' 

00000-12277 W"CC afaa 41 

___ aOO-12 l Ggborf 

^ G MDhh)* 

'a* ' ' 

. •■*>. " - 

^8 ’*? 

595 Liberia ~ 
Swtii Africa 



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SOT USASftt«t a Sewittiiavi^bl>tniaktbcceu*i 1 c>lknd*Mn^ A/bnkxnnddtalnae. 

fe 1-800-872-2881 

.. 1 -^00-872-2831 

I 0-800-872-2881 ' 

Q 5109200 

^ -004-001 


- ■' '797-797 . 

0-80099 41» 



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