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S. ' . 
Y ■ 



London, Tuesday, November 22, 1994 




No. 34,7 52 

Serb Air Base Destroyed 
In NATO’s Biggest Raid 

By Roger Cohen 

New York Times Service 

ZAGREB, Croatia — NATO warplanes 
bombed a Serbian air base Monday, de- 
stroying the runway, missile sites and anti- 
aircraft defenses in a massive raid that 
took the Western alliance's involvement in 
the Bosnian war to a new level. 

Admiral Leighton W. Smith, the Ameri- 
can commander or NATO forces in South- 
ern Europe, said 39 aircraft from the Unit- 
ed States, Britain, France and the 
Netherlands were involved in the attack 
against the Serbian-held Udbina airfield in 
Croatia, 35 kilometers (22 miles) south- 
west of the Bosnian town of Bihac. 

u Our initial reports are that the strike 
was successful,” Admiral Smith said. The 
French Defease Ministry issued a state- 
ment saying that “after neutralization of 
the ground-to-air defenses, the runway, 
which was the raid's main objective, was 
put out of action." 

The Udbina air base had been used 
three times in the last two weeks by the 
Serbs to send aircraft, some carrying na- 
palm and cluster tombs, against the Bihac 
area, an isolated pocket in northwestern 
Bosnia that is held by the Muslim-led 
government and has beat declared a Unit- 
ed Nations “safe area." 

The NATO bombing was the largest air 
raid in Europe since the end of World War 

Bosnians Say Real Target 
Should Be Ground Force 

A UN sol? ier and a woman giving first aid Monday to a dying Bosnian soldier shot In Sarajevo's 

Moscow Reveals a Deep Nuclear Secret 

' (.'a* 

By William £ Broad 

New York Times Service 

NEW YORK — For more than three 
decades, Russian scientists have disclosed, 
the Soviet Union and now Russia secretly 
pumped bihion^of gallons of atomic waste 
directly into the earth. They say the prac- 
tice continues today. 

Though the Russians defend the prac- 
tice as safe, it is at odds with accepted 
”‘■•2 ..^global standards for nuclear waste dispos- 
“ fcl and is contrary to what they have previ- 
‘ ously said they were doing. ■ 

The disclosure has set off a debate 
. ; among experts over the Jfkejy consc- 
- - quences: of the-rradtoaotive. injections, 

■ - which some experts say re present a nttr-y 

kind of nuclear danger that might haunt 
the planet for centuries. 

The Russians told a small group of 
Western experts that Moscow had injected 
about half of all the nuclear waste it ever 
produced into the ground at three widely 
efispersed sites, all thoroughly wet and all 
near major rivers. 

The accepted rules of disposal require 
that nuclear waste be isolated in imperme- 
able containers for thousands of years. The 
Russian scientists claim the practice is safe 
because the wastes have been injected un- 
der layers of shale and day, which in 
theory cut them off from the earth's sur- 

. . l;Bui already The wastes at one site have 
leaked, beyond the expected range and 

“spread a great distance,” the Russians 
told the small group of international scien- 
tists who were handpicked to receive the 
news. The Russians did not say whether 
the distance was meters or kilometers or 
whether the poisons had reached the sur- 

Decades or centuries might pass before 
scientists know whether the injections are 
calamitous or benign. 

Some American experts say that in all 
likelihood things wiH work out favorably 
but that close study is prudent 

“Does it have the potential for impact- 
ing the environment in Russia and the 
world?” said Dr. Clyde W. Frank, a top 
official of the Energy Department “We’re 

See WASTE, Page 6 

By Chuck Sudetic 

New York . Times Service 

SARAJEVO, Bosnia- Herzegovina — 
Bosnian government leaders and some 
UN officials here expressed bewilder- 
ment Monday that the NATO air strike 
Cm an airfield controlled by Bosnian 
Serbs in Croatia was not broadened to 
target artillery and tanlcg supporting 
Bosnian Serbs' attacks on the Bihac en- 
clave in northwestern Bosnia. 

NATO planes bombed an air base 
held by the Serbs in Udbina, Croatia, on 
Monday in retaliation for air raids on 
Friday and Saturday by Serbian tighter 
jets in and around the Bihac enclave. 

Though scarcely significant militarily, 
the Bosnian Serbs' air attacks were the 
most dramatic element of a two-week 
Serbian advance on Bihac because they 
came despite warnings from UN and 
NATO officials and violated the UN 
resolutions that created the Bihac “safe 
area" as wdl as a NATO-enforced ban 
on military flights over Bosnia. 

But the really significant Bosnian Serb 

military activity has been the ground 
attacks on the Bihac enclave from Serbi- 
an-held lands across the Croatian bor- 
der. These attacks, also condemned by 
UN officials here, violate both an inter- 
national border and a UN “protected 
area" in Croatia, where the Serbs* heavy 
weaponry, including tanks, heavy artil- 
lery and aircraft, are supposed to be kept 
under a two-key lock with UN peace- 
keepers holding one of the keys and the 
Serbs holding the other. 

“None of the problems around Bihar 
have been resolved by today's air strike," 
said a UN official, who asked to remain 
unnamed. “The military assessment is 
that the attacks on the Bihar enclave will 

Haris SHajdzic, Bosnia's prime minis- 
ter, said that “the airport was a peripher- 
al element*’ and criticized the United 
Nations for not taking action to stop 
Bosnian Serbs from using the UN pro- 
tected area in Croatia as a staging area 
for the Bihac offensive. “This points out 

See MESSAGE, Page 6 

II and the biggest mounted by the alliance 
since it was established in 1949 to counter 
Soviet military power. 

But at the specific request of United 
Nations military commanders, the raid did 
not hit Serbian planes at the airfield, a 
gesture of restraint that caused some mis- 
givings at the Pentagon, U.S. officials said. 

“This is a limited strike,” Admiral Smith 
said, noting that the commander of UN 
forces in the former Yugoslavia, General 
Bertrand de Lapresle of France, had insist- 
ed Serbian aircraft should not be hit “We 
clearly could have taken these aircraft had 
wc chosen to but we have a dual United 
Nations-NATO key." 

The Clinton administration's oft-repeat- 
ed calls for big NATO air strikes against 
the Serbs, combined with its refusal to put 
American troops on the ground, have 
caused persistent tension with British and 
French officers in the UN peacekeeping 
force in Bosnia. 

All allied planes returned safely to their 
bases, despite what officials described as 
initially intense anti-aircraft fire. NATO 
officials said American F-18 fighter- 
bombers, F-16 fighter-bombers, F-15 
fighters and F-lll bombers had all been 
used in the raid They were accompanied 
by British Jaguar bombers, French Jaguars 
and Mirages, and Dutch F-lds, 

Michael Williams, a spokesman for the 
UN Protection Force, said that “in a raid 
of this size there must certainly have been! 
casualties.” But there was no immediate 
estimate erf their number. 

After four previous pinprick attacks this 
year against Serbian ground targets that 
appeared to achieve little and increasingly 
irritated the Pentagon by their tentative 
nature, the raid Monday amounted to a 
declaration that the Norm Atlantic Treaty 
■Organization will now act with more re- 
solve and a calculated gamble that the 
Serbs can be bombed to the negotiating 

The attack also papered over, at least 
temporarily, the sharp differences that 1 
have emerged within NATO over the C Un- 
ion administration's decision to stop en- 
forcing a UN arms embargo against (he 

See ATTACK, Paige 6 


Aid Is T jacking, 
Ukraine Tells UN 

(Reuters) — President Leonid --M,. 
Kuchma of Ukraine complained Man- . 
day that his country was not getting the 
aid it needed from the. West, particularly 
the United States, to help it dispose^ 
nuclear weapons left over from the Sovi- 
et Union- 

in an address to the UN General As- 
sembly, Mr. Knf-hma said Ukraine .had 
acted “id the interests erf all mankin d” by 
moving to eliminate the weapons and 
agreeing to sign the Nuclear Nonprolif- 
eration Treaty. “I regret that I have to 
say it from the UN rostrum: Such, a 
policy meets no adequate response.’ 7 

“To date,” he said, “Ukraine has not 
obtained the necessary compensation for 
tactical nuclear warheads already with- 
drawn. The assistance is rendered very 
slowly and on the whole does not meet 
the fixed terms.” , . . 

The .United States has pledged 3350 
mmifin to help coyer the costs of clean- 
ing up disused missile silos. 

Related article. Page - 

Book Review 



Page 7. 

Page 7. 

Page 23. VICTOR Y PLEDGE — Yasser Arafat, at a Gaza rally on Monday, 

Fajcs NurddifK/Afccace France- Prase 

intention to keqp power. Page 6. 

Should Clinton Run in ’ 96 ? 
Party Elders Voice Doubts 

By R.W. Apple Jr. 

New York Times Service 

NEW YORK — It is still only a ques- 
tion, but a politically portentous one, and 
it is on the bps and in the minds of promi- 
nent Democrats across the country: Can 
Ml Clinton — should BUI Clinton — be 
the party’s presidential nominee in 1996? 

So sweeping was the Democratic defeat 
in the Nov. 8 elections, and so deep is the 
Democratic dejection in its wake, that the 
president’s place at the head of the ticket 
two years from now is no longer taken for 

The odds axe strongly in hto favor: He is 
still the president, and he has few obvious 
challengers. But the doubts are there. 

“A year from now, maybe much soon- 
er,” said a party elder the other day, “peo- 
ple will take stock. If they see him as the 
probable cause of another debacle, they’ll 
prevail upon Mm to call it quits, or they’ll 
run against him.” 

A wcfl-connocted White House aide 
said, when asked whether Mr. Clinton’s 
staff expected a challenge for the nomina- 
tion, “The question is not really if, but 
.when and from whom.” 

Such talk may turn out to be only talk. 
But for as long as it persists, it further 
weakens an already wounded president. 

For the record, the White House ex- 

presses confidence that Mr. Clinton can 
win the nomination. But even the presi- 
dent's advisers concede that he is likely to 
face at least the kind of distraction that 
President George Bush endured from Pat- 
ride Buchanan two years ago, and perhaps 
a more serious fight erf the land that Sena- 


tor 5iv. ard hL Kennedy of Massac h usetts 
’gave President Jimmy Carter in 1980. 

Much depends, erf course, cm how suc- 
cessfully Mr. Clinton can assess the new 
political reality, rally Ms remaining troops, 
establish priorities and reassert Ms leader- 

Much depends also on whether the exu- 
berant Republicans handle their newly 
won power on Capitol Hill constructively 
or sdf-destructiveiy. 

But in politics as in life, sdf-p reserva- 
tion is the primal instinct, and at the mo- 
ment many Democrats fed threatened, not 
protected, by their president. Some of the 
senior Democrats up for re-election in 
1996 must run in states where Mr. Clinton 
is highly unpopular. 

Three of the last four Democratic presi- 
dents, excepting only John F, Kennedy, 
ran into severe trouble, and all three faced 

See CLINTON, Plage 3 

Japan Apologizes (but Not to U.S.) for Diplomatic Slip on Pearl Harbor 

By T.R. Reid 

TOKYO — Nearly 53 years after the 
event. ; Japan’s government apologized 
Monday for failing to break off diplomatic 
negotiations before iamwhmg the 
attack on Pearl Harbor that pulled the 
UA into World War IL 
"There can be no excuse,” the Foreign 
Mmistiysaid, for Japatfs ddaymdchvct- 
ing a message to Washington on Dee. , 
1941, that it would negotiate no Iot^ 
The official apology, was ' Fooy red by we 


day. - 

But the apology for JapmcK dplo- 

mats- “deeply regrettable" cento on 
Ptari Harbor Day was not addressed tothe 
United States,, the victim ot tte atttcfc 
Rather,- said a Foreign Ministry spokes- 

man, Ternsuke Terada, “The statement 
was directed to the people of Japan.” 

Why does the gavwninent fed a need to 
apologize to its own people for decaying 
another nation half a century ago? . 

The answer involves the generalized 
concept of shame in Japanese society, and 
the particular sense of shame many Japa- 
nese feel about the banning of Wodd 
WarH. , ^ „ 

In a country where people are defined 
by the groups they belong to, anyone who 
does wrong is perceived to be causing 
shame tor other member? of Ms group — 
his family, his company, his alma mater, 
and so forth. 

- The Japanese have a word for it: 
meiwaku, which can mean the trouble and 
s hame you cause for friends and family if 
you do wrong. For centuries, the need to 
avoid xnerwaku has served as a powerful 
restraint on b ad conduct 

In Japanese history books, the conduct 
of Japan’s diplomats in Washington on the 
eve of Pearl Harbor is treated as a major 
source of shame for the entire country. 
And that is what prompted the Foreign 
Ministry's belated apology. 

The diplomatic question at issue is sepa- 
rate from the propriety of the air raid itself, 
which killed 2,400 American soldiers and 
sailors. The Japanese people are still deep- 
ly in conflict on that point 
Some argue that a war between Japan 
and the United States was inevitable, and 
thus the surprise attack was a legitimate 

act erf war. Others say it was morally wrong 
for Japan to start a war no matter what the 

In 1991, on the 50th anniversary of Bead 
Harbor, the prime minister of Japan issued 
an apology, of sorts, to the United States 
for the attack, expressing “deep remorse 
. . . that we inflicted an unbearable blow on 
the people of America and the Asian coun- 

But last year, politicians in Japan can- 
celed a scheduled viatby Emperor Akihi to 
to the Pearl Harbor memorial. Officials 

explained that Americans would expect an 
apology if the emperor went to Pearl Har- 
bor, and that this might cause political 
problems at home: 

No matter how people feel about the 
raid, however, there is a strong sense of 
shame in Japan about its diplomacy in the 
last weekend before the attack. 

In the fall of 1941, the U.S. and h 
tried one last round of talks to i 
dispute over Japanese aggression against 
Chwa. While the talks were going on, a 

See SORRY, Page 3 

Sexes Take a Shine to Coed Boot Camp 


Mawactmid Prices » 

Bahrain ...0.800 Din 
Cyprus £1-00 
Denrnarklf.OOO. Kr . 

Finland n F-M. 

Gibraltar — -£0.B5 
Great BrttolniXO.85 
Egypt.. — E.P.5000 

Jordan —.. — A J D 
Kenya.... K. SH. ISO 
Kuwait....-- SB FilS 

Malta.....— — -3? c. 
Nigeria Nairn 

Norway..— 15 N-is-r. 
Oman „..1»Q00 Rjoj* 
Qfftnr.^— B.00 RiOlS 
Rep. irelandIRfil-W 
Saudi Arabia 9.00 R 
South Africa — Rf 

uae; .8-5Q Dim 

U.S. Mil. (BjOfHJ 
Zimbabwe. Z&rcS20.M 

jff Down 




mutate dose- 













By Bradley Graham 

K'ajtojgnxt Post Service 

— Whoa they entered basic training at this 
army base eig ht weeks ago, Private James 
Lane and Private Ten Rutter were unset- 
tled to learn they would be doing their 
sweating, grunting and gritting in mixed 

Mr. Lane, 22, worried that the women 
would be a drag on things, or wore* .might 
even outperform him, or perhaps inhibit 
the development of male camaraderie. Ms. 
Rutter, 18, feared that the men would 

J a 

! miserable for 

her and the other' women. 

Sitting in their coed barracks one day 
last week, cleaning gear after a three-day 
field exenase, both said that their initial 
misgivings had given way as male and 
female trainees began helping each other. 

in fact, officers here said, prefiminary 
results of the recent shift to what the army 
calls gender integrated basic training stow 
little change in the performance of- men 
but giant strides in the morale and perfor- 
mance of women, who feel more motivated 

when challenged to keep up with the oppo- 
site sex. 

The army leadership is counting on this 
to be the general rule. On Tuesday, when 
the 178 trainees of Alpha Company, 6th 
Battalion, lOtb Infantry Regiment gradu- 
ate here, they will become the first group to 
make it through coed base training since 
the service decided this summer to do away 
with all-male and aH-female training for 
the numerous noncombat jobs now open 
to both sexes. 

“As we did more things, we just pulled 
See COED. Page 3 

Local Voters 
Put Berlusconi 
On Defensive 

rvKf&J h Our Staff Pram Dispatches 

ROME — Prime Minister Silvio 
Berlusconi's political movement suf- 
fered a major setback in local elec- 
tions in Italy while his “post-Fasost” 
political allies made a strong showing, 
results indicated Monday. 

With two thirds of the votes from 
major centers in the elections Sunday 
counted, support for Mr. Berlusconi’s 
Forza Italia party had collapsed to 
under 10 percent The party won more 
than 30 percent of the vote in Europe- 
an elections in June and 21 percent of 
the vote in the legislative elections that 
brought Mr. Berlusconi to power last 

Partial returns from the voting 
sbiKve-j the Democratic Party of the 
Left, the former Communists, getting 
the biggest share of the overall vote, 
around 14 percent. 

The rightist National Alliance, , 
which grew out of a neo-Fastist party * 

See ITALY, Page 6 

e 5 

- s 



6 Awfiil’ German Tongue Undergoes Renaissance in East 

By Rick Atkinson 

Wasfcngwii Past Strict 

BERLIN — German, Mark Twain 
observed more than a century ago, 
“ migh t to be gently and reverently set 
aside among the dead languages, for 
only the dead have time to learn it." 
He calculated that ^a gifted person 
ought to learn English (barring spell- 
ing and pronouncing) in 30 hours, 
French in 30 days and German in 30 

Just so. But Twain's sage warning 
notwithstanding, “the awful German 
' language" is undergoing a remark- 
able renaissance. Millions of eager - — 
if masochistic — new students in 
Eastern Europe are now hac k i ng 
their way through syntactical thick- 
ets and 10 -syllable nouns out of a 
conviction that mastering the Ger- 
man mother tongue is one key to 
sharing in Germany's prosperity. 

Of 20 milli on people learning Ger- 
man around the world, two-thuds 
are in Eastern Europe and thefonner 
republics of the Soviet Union. In 
Poland, where the number of Ger- 
man students has tripled from 
300.000 in 1988 to 1.5 million today, 
the demand is still so great that there 
is a shortfall of 10,000 qualified Ger- 
man teachers; the Czech Republic 
could also use 4,000 more instruc- 

tors. according to the German For- 
eign Ministry. 

No longer required to learn Rus- 
sian as a second language, students in 
the former Warsaw Pact natrons are 
flocking to either German or English 
classes for a window on Western cul- 
ture and Western markets. 

According to statistics from the 
Goethe Institute in Munich, about 
half of all schoolchildren in Latvia 
and the Czech Republic are learning 
German. The language is nearly as 
popular in Kazakhstan (48 percent of 
all students study it), Georgia (45 
percent), Slovakia (31 percent) and 
Russia (35 percent). An estimated 1 
milli on Ukrainians are studying Ger- 
man, and the number is dimhing. 

The German Foreign Ministry 
spends 600 million Deutsche marks 
($390 million) annually — half of its 
total cultural budget — to propagate 
the language abroad, according to 
Die Welt newspaper. 

More than a few Germans express 
a certain missionary zeal in this 
spreading of the word — or das Wort 

“German, the oldest of the living 
cultural languages on the continent, 
is a highly precise but nevertheless 
graphic and emotional language of 
dear and direct expression," the 
writer Franz Stark recently intoned. 
“It can look back on a long tradition 

as a language of science and intellect, 
boasts a particularly large vocabu- 
lary and is exceptionally creative 
with regard to word fo rmati on ” . 

To some extent, the spread of Ger- 
man into Eastern Europe is just a 
regermination of the language m. soil 

It’s a syntactical 
jungle and the words go 
on forever, hut for 
the people of the old 
East Bloc, Ge rman is 
a route to the West. 

where it already has deep roots. In 
the Baltics, for example, German was 
the lingua franca of education and 
urbane sophisticates from the Mid- 
dle Ages until World War L accord- 
ing to Helmut Glueck, a professor at 
the University of Bamberg. German 
also was an official language in all of 
the East European territories that 
made up the Austro-Hungarian Em- 

Until the 1930s, German was con- 
sidered the international language of 
science. The rise of Nazism chased 
many prominent scientists into exile, 
according to Ulrich Ammon, a lin- 

guistics professor at Duisburg Uni- 

Indeed, the taint of the Third 
Reich caused Germans and non- 
Germans alike to be waiy of cultural 
imperialism. The daily SQddeutsche 
7/f tiwi fl recently reminded readers of 
“certain sensitivities: German was 
the language of the occupier and the 
Aryan superman." In the Czech bor- 
der town of Cheb, an estimated 500 
nationalists turned outlast month to 
demonstrate against the “Gexxnan- 
izatioa" of their country. 

For the most part, however, the 
realities of commerce have eclipsed 
the nuances of politics. Germany is 
rich, Germany is near, Germany is 
the largest trading partner with most 
East European countries. Ergo, 
learning German offers dear benefits 
for Poles or Czechs or Lithuanians. 

Proponents of German l an gua g e 
and culture such as the Goethe Insti- 
tute also argue that Germany can 
help inculcate democratic values in 
the East, much as the United States 
did in postwar Germany. 

“After ’45. there was both real 
hunger and a cultural hunger," said 
Stephan Wackwitz, spokesman for 
the Goethe Institute. “But of course 
the Eastern Europeans also learn 
German because it can open the path 
to German prosperity. 

Kiev Unlikely to Get 
U.S. Satellite Deal 

By R. Jeffrey Smith 

Washington Post Strict 

dent Leonid M. Kuchma of 
Ukraine is unlikely this week to 
win die Clinton administra- 
tion's approval for lucrative 
rights to launch U. S. satellites, 
deferring and perhaps denying 
one of the major rewards his 
government sought for signing 
the Nuclear Nonproliferation 
Treaty, American officials say. 

A fierce interagency squab- 
ble over the Ukr ainian request 
has helped block a White House 
decision in time for Mr. Kuch- 
ma’s state visit to Washington 
an Tuesday and Wednesday, 
the officials said. 

As a result, he will probably 
have to go home with Washing- 
ton's promise to talk more 
about the request, and its warm 
congratulations for having ob- 
tained the Ukrainian Parlia- 
ment’s support for the treaty 
three days ago. 

The Clinton administration 
is hesitating to grant the mon- 
ey-making satellite launching 
rights even though many U. S. 
officials believe that Ukraine is 
on the brink of economic ruin, 
and that a collapse there could 
create serious problems for its 
neighbors. Washington's delay 
also comes as it presses key Eu- 
ropean allies to help open more 
markets for other cash-strapped 
nations of the former Warsaw 
Pact or former Soviet republics. 

But U. S. rocket makers have 
been lobbying with Commerce 
Department support to block 
Ukraine from joining China 
and Russia in bidding for satel- 
lite-launching contracts, argu- 

ing that the market is already 
glutted and would become 
much less profitable. 

Senior Ukr ainian offi cials in 
Washington, in preparing for 
Mr. Kuchma's visit, stressed 
how vital the new satellitc- 

lannching b usine ss w 35 to find- 
ing work for thousands of 
Ukrainians who helped build 
the nudear-tipped missiles that 
Mr. Kuchma and the Parlia- 
ment have now vowed to de- 

Ukraine is particularly seek- 
ing customers in the U. S. tele- 
communications industry, in- 
cluding makers of small 
personal communications de- 
vices. for the Zenit and Cyclon 
launchers it developed to feny 
civil space program payloads 
into low-earth orbit and for 
converted SS-18 and SS-24 stra- 
tegic ballistic missiles. 

Officials at the Defense and 
State departments are said to be 
divided on the Ukrainian re- 
quest, with many policy special- 
ists at each agency expressing 
support for Ukrainian access 
and many economic . officials 
expressing opposition. 

The importance of Ukraine’s 
economic health was highlight- 
ed in a speech Friday by Strobe 
Talbott, the deputy secretary of 

“Ukraine is a linchpin of the 
new, post-Cold War Europe," 
he told an audience organized 
by the Carnegie Endowment for 
International Peace. “If 
Ukraine slips backward or falls 
into instability, it could drag 
much of the region with it. We 
can, and must, help make sure 
that doesn’t happen." 

One curious Odd War postscript 
is the necessity for Germans them- 
selves to find a common mother 
tongue. Four decades of division be- 
tween East and West Germany led to 
the development of different vocabu- 
laries and different modes of expres- 

For example, angels in atheistic 
East Germany were officially known 
as “winged year-end figures.” In the 
east it was industries bedtngter Nebel 
— industrial fog — while in the west 
it was plain (Ad “smog." 

Eastern shoppers went to a Kauf- 
halle to buy a Goldbrotier (chicken), 
their Weston cousins to a Super- 
markt to buy a Haehnchen . An East 
German family might relax in its 
Datsche — taken from the Russian 
dacha — while West Germans would 
go to a Wochenendhaeuschen, or 
weekend cabin. 

Some residents in the east have 
worked hard — sometimes with a 
tutor — to eradicate such telltale 
expressions from their speech, lest 
they betray their East German ori- 
gin. Others embrace them as a dis- 
tinctive cultural badge. Like the 
Americans and British, East and 
West Germans are sometimes two 
peoples divided by a common lan- 

Bow Door 
Of Ferry 
Was Shut 


Angola Report of Attack “scoimted 

O ", / Ap\ _ A nco la claimed that itbd troops 

LUAOTA Angola (AF) 8 ^ ^ ^des a 


^The government churned that 

<* ririrtto iSpSid." Aid vote, 

govranment soMiers from the National Union 



^^SfSmda SuL There was no independent confirmation or 

10 people kmedend^oandrf in Lund, 
by gunfire from citizens celebrating the peace accord. 

Rightist Arrested at Buchemvald Site 

ERFURT, Germany (AP) — A rightist leader who denjesifoa t 
the Nazis murdered mfflions of Jews was arrested as Retried to 
enter the Buchenwald concentration camp memorial, the police 

^GOnSlSdccrt, a 55-vear-old 

the German National Democratic Patty, * ““g. 

memorials because the authorities fear he wll disturb viators by 
lecturing them about his belief that the Holocaust never hap- 

Deckert was detained at Buchenwald on Sunday afternoon 
and released after two hours. He was given a suspended one-ycar 
sentence in June for publicly denying the Holocaust. 

UN Chief Urges Anti-Mafia Action 

■ NAPLES (AP) — Denouncing the Mafia as a threat to demoo^ 
racy the secretaiy-gcneral of the United Nations, Butros Butros- 
Ghaii, urged countries on Monday to cooperate better to fight 
organized crime. , , _ , 

^No society is spared" the “forces of darkness of organized 
he said in opening a UN conference in Naples, the home 
turf of the Camorra crime family. 

“Crime poisons the business climate, corrupts political leaders 
and undermines human rights," Mr. Butros-Ghah said. Organized 
crime “thus undermines democratic life.” He suggested drafting 
an international convention against organized crime and said a 
UN gathering on criminal laws next spring in Tunisia would 
consider how to strengthen existing laws. 

Pronprhr Czech and Slovak Chiefs Get Support 

J. f %/J PRAGUE (AP) — Local elections confirmed the strength oi 

Ynun Bcbok is/ Renters 

ONE THAT DIDN’T GET AWAY — A Greenpeace activist protecting his face 
Monday as an Athens riot policeman tore down a fishing net set up in front of the 
French Embassy. Fifty activists employed a long driftnet to block the French and 
Italian embassies in the Greek capital to protest the use of this type of fishing method. 

Patchwork Reshuffle Bodes 01 for Yeltsin’s Reforms 

By Fred Hiatt 

Washington Pm Service 

■ MOSCOW — With a series of contra- 
dictory moves, President Boris N. Yelt- 
-sin has -reshaped his government, nam- 
ing both reformers and reform 
opponents to form a cabinet with no 
-dear governing philosophy. 

• Mr. Yeltsin said his new team, which 
has emerged in bits and pieces over a 
month, is intended to promote “profes- 
sonatism’’ rather than ideology. Bat 
strains evident within the new team have 
.raised concerns about its longevity and 
dedication to market reform. 

In a fairly typical evaluation, the pro- 
reform newspaper Sevodnya said the 
-executive branch was “in a state of cha- 
os," making “convulsive movements in 
-response to instant reflexes." 

In taking charge of the reshuffle him- 
self, Mr. Yeltsin has chipped away at the 
authority of his prime minister, Viktor 
S. Chernomyrdin, apparently in an ef- 
fort to show that the president remains 
in charge. 

Indeed, the chief common character- 
istic of the new appointees appears to be 
loyalty to Mr. Yeltsin. The government 
also continues a three-year Yeltsin pat- 
tern of appointing top aides and minis- 
ters with widely differing views. 

Noting that the new government has 
eigjht deputy prime ministers, including 
two as first deputies, a liberal legislator, 
Boris Fyodorov, offered this formula- 
tion in the newspaper Izvestra: “The 
more deputy premiers, the fewer re- 

“A further let-up in the pace of re- 
forms is inevitable,” wrote Mr. Fyo- 


dorov, a framer finance minister. “The 
government that pursues Soviet-style 
economic policy needs experienced So- 
viet-style financiers.” 

Some Yeltsin backers disagreed, argu- 
ing that the promotion of Anatoli B. 
.Chubais, Russia's most successful re- 
form-minded administrator, to first 
deputy prime minister may help keep 
reforms on track. 

The latest changes were set in motion 
by the precipitous one-day fall in the 
value of the ruble on Oct. 11, known 
here as Black Tuesday. Mr. Yeltsin im- 
mediately fired his acting financ e minis- 
ter, Sergei Dubinin, who was widely 
seen as competent, pro-reform and not 
responsible for the ruble's plunge. The 
same week, Mr. Yeltsin persuaded the 
head of the central bank, Viktor Gerash- 
chenko, to resign. 

Mr. Gerashchenko has been replaced 
by his deputy, a respected bureaucrat 
named Tatiana Paramonova. The new 
finance minister is a former Soviet bu- 
reaucrat, Vladimir Panskov, who had 
been a Yeltsin badget adviser. 

Mr. Panskov’s appointment prompt- 
ed Alexander N. Sh okhin , a moderate 
reformer, to resign as deputy prime min- 
ister. Mr. Shokhin, who was also eco- 
nomics minister, complained that he 
had not been consulted 

Mr. Shokhin’s departure caused some 
consternation among reformers. That 
was alleviated when Mr. Yeltsin pro- 
moted Mr. Chubais, the privatization 
czar, to take his place, making him a first 
deputy prime minister with overall 
chaise of macroeconomic policy. Mr. 
Chubais is one of Mr. Yeltsin's original 

But since Mr. Chubais’s elevation, 
some of the reformers' concern has re- 
turned A number of Western econo- 
mists were dismayed when Mr. Yeltsin 
also promoted Oleg D. Davydov, a for- 
eign-trade minister with protectionist 
views, to deputy prime minister and 
gave him Mr. Shokmn’s portfolio of ne- 

fotio of ne- 

gotiating with the World Bank and the 
International Monetary Fund Mr. Da- 
vydov once called for all of Russia’s 

debts to the West to be written off, and 
he is not known as a supporter of re- 

“I don’t see how that can stand,” a, 
Western official said “There’s no coun- 
try in the world where the trade minister 
is in charge of negotiating with the 
World Bank and the IMF." 

Mr. Yeltsin also elevated a little- 
known St_ Petersburg bureaucrat, Alexei 
Bolshakov, to take charge of relations 
with the other former Soviet republics. 
He most recentl y was in charge of devel- 
oping a fast tram between Moscow and 
St. Petersburg, a project that has yet to 
bear fruit 

“The fast train that never was,” Mr. 
Fyodorov said in an interview. “1 think 
it’s disgusting. They’re making the coun- 
try a laughingstock, with a government 
of people who don’t know what to do in 

Then, although Mr. Chubais report- 
edly had been told he could pick his 
successor as privatization chief, Mr. 
Yeltsin plucked an obscure geologist 
from the Far East, Vladimir Polevanov, 
a Yeltsin loyalist and most recently a 
regional governor. He immediately said 
he wanted to change the course of priva- 

The Astoria ed Pros 

HELSINKI — Human error 
did not cause the feny Estrada 
to sink in September, killing 
900 people, a member of the 
investigating commission said 

“We can rule out that the 
bow door was open,” said 
Tuomo Karppinen, a Finnish 
member of the investigation 

“The bow door was firmly 
shut when it was ripped off in 
the storm,” Mr. Karppinen said 
after studying the visor-like car- 
go door that was retrieved from 
the Baltic seabed. 

Salvagers raised the door of 
the ferry on Friday, hoping for 
definit ive evidence on why the 
ship sank cm Sept. 28 with more 
t h a n 1,000 people on board. 

The 56- ton outer door was 
ripped off in a storm, causing 
water to flood the vehicle deck. 
The feny sank in less than 30 
minutes, killing about 900 peo- 

Until now, investigators were 
uncertain whether the door was 
ripped off because of a techni- 
cal failure, a design flaw or be- 
cause it had not been dosed 

“It’s very dear now that all 
the hydraulic lodes on the door 
were dosed at the time of the 
accident,” Mr. Karppinen said. 

He spoke from Hanko, a 
Finnish port city 125 kilometers 
(75 miles) west of Helsinki, 
where the twisted bcrw section 
was brought after being sal- 
vaged. Finnish and Swedish 
commission members began to 
study the door Monday. 

The commission’s technical 
expert Boqe Steostrom, said in 
Stockholm that nothing indi- 
cated the door had bom worn 
out or was damaged. He 
blamed the acrident on a poor 
design combined with unusual- 
ly strong Id-meter (33-foot) 

“In retrospect, it is easy to 
say that the speed was too 
high,” Mr. Stenstrom told the 
Swedish news agency TT. 

Shipping lines and govern- 
ments m Sweden, Finland, Es- j 
tonia and other countries have j 
ordered ships inspected and I 
bow doors sealed on many fa- 1 
ries. Preliminary conclusions, - 1 
however, indicated that more , 
inspections and research may ' 
be needed. 

5 Homes Bombed in Corsica 


AJACCIO, Corsica — Hood- 
ed Corsican separatists blew up 
five holiday bungalows near 
Bastia in northern Corsica as 
pari of their campaign for inde- 
pendence for the island, the po- 
lice said. 

PRAGUE (AP) — Local elections confirmed the strength of 
political leaders in the two halves of the old Czechoslovakia: 
-Prime Minister Vaclav Klaus of the Czech Republic and prime 
minister-designate Vladimir Medar of Slovakia. 

Elections Friday and Saturday in the Czech Republic gave 
strong backing to Mr. Klaus’s Civic Democratic Party, which 
received more than 32 percent of the vote. That is about the same 
as it received in general elections two years ago. 

In Slovakia, the Movement Fra: a Democratic Slovakia, led by 
Mr. Medar, won the elections, but a slim victory spelled trouble 
for the continuing talk* on forming a new cabinet. Mr. Medarts 
party got 22.8 percent of the vote, well short of the 36 percent he 
won in the general election earlier in the fall 

For the Record 

Thousands of Madrid tad drivers blocked streets and squares in 
the center of the city Monday to protest the murder of two of their 
colleagues overnight. (Reuters) 


Rail and Metro Strike Set in France 

PARIS (Reuters) — French xml and Mfetro services will be 
disrupted on Wednesday by a strike called by two leading unions 
to promote the rights of public-sector workers, rail officials and 
anions said. 

The strikes will be staged by the communist-led CGT union and 
the more moderate Force Ouvrifcre to press pay claims and protest 
the possible privatization of the rail network. 

RATP, which runs the Paris M6tro, said services were expected 
to be disrupted from JO AM. to 3 RM. The rail authority, SNCF, 
said it was too early to gauge the action’s possible impact 

Air traffic in and out of Greece was disrupted Monday for a 
second straight day as air traffic controllers stopped work in 
support of a pay claim. Two stoppages have been announced for 
Tuesday. (AFP) 

North Korea plans to allow visa-free visits by foreigners to its 
free-trade zone bordering China and Russia starting early next 
year, a Japanese municipal official said Monday in Tokyo. (AFP) 

Ex- Air Force Commander 
Takes On Safety at USAir 

New York Tunes Strict 

NEW YORK — USAir, trying to reassure customers after 
five fatal crashes in the last five years, has announced the 
appointment of a retired air force general to a new position of 
chief of safety operations and the hiring of a consulting 
concern to conduct an independent audit of flight operations. 

The announcement was made by Seth EL Scho fie ld, chair- 
man and chief executive of USAir. It also was fwitamad in a 
full -page advertisement published Sunday in The New York 
Times and more than 40 other newspapers. Mr. Schofield said 
that General Robert C. Oaks, a command pilot and former 
commander of the U.S. Air Force in Europe, would oversee 
the airline’s safety and report directly to him 
_ The Federal Aviation Administration, which regulates air- 
lines, repeated lari week that USAir's operations were safe 
and that the airline met aB industry safety an rf training 
standards. But the airline has come under scrutiny as a result 
of its five fatal accidents since 1989. 

The totest and worst of the accidents occurred SepL 8, when 
a USAir Boeing 737 crashed near Pittsburgh, wiw all 132 
people on board. 

Papers filed in connection with a civil lawsuit arising from 
the accident said that there were three reports of unusual 

plane before it left Chicago. 

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Page 3 

THE AMERICA S / g j ip si ?-i u § ?i ili 

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as tsa 

Governors Cool to Congress 

Republicans Keep Distance From Gingr ich 

By Richard L. Berks 

_Atew York Times Service 

gma— Buoyed by their big- 
gest victory in 25 years, the 
nation’s Republican gover- 
nors and governars-dect are 
seeking to put some distancf 
between themselves and the 
Republicans who will control’ 

At the annual conference 
of the Republican Governors 
Association, they urged the 

new congressional leaders not 
to be distracted by social is- 
sues tike school prayer and 
warned that they did not 
want the federal budget to be 
cut at the expense of the 

Several of those attending 
the conference brushed aside 
two centerpiece issues of 
Representative Newt Ging- 
rich of Georgia, the probable 
House speaker; his proposals 
for an overhaul of welfare 
and for a constitutional 
amendment to allow prayer 
in schools. 

They took care not to di- 
rectly attack Mr. Gingrich 
and some even embraced his 
call for a balanced budget 
amendment, but only on the 
condition that such an 
amendment would include 
langnage barring the federal 
government from passing on 
the increased financial bur- 
den to the states. 

But at least 20 of the gover- 
nors and governors-to-be 
crowding the podium at a 
news conference Sunday 
night asserted thear indepen- 
dence from Washington, even 
if that meant keeping dis- 
tance from the new Republi- 
can leaders. 

“We’re balancing budgets, 
we’re reforming welfare, 
we’re fixing health care, we’re 
dealing with crime,” said 
Governor Mike Leavitt of 

Utah, the new president of 
the Republican Governors 
Association, which now hac 
30 members. “Our nwssp g p 
will be to congressional lead- 
ers. people of this country: 
Give us the ball and set out of 
the way. We can solve these 

Echoing his colleagues who 
argued that Republicans 
should emphasize economic 
stability rather than social is- 
sues like school prayer, Gov- 
ernor John Engler of Michi- 

e Grre os the ball 
and get out of the 
way. We can 
solve these 
problems. 9 

— Hike Leavitt, 

Utah governor 

gan said, “If we don’t deal 
with the economic issues, 
well need more than prayer 
to solve our problems.” 

The news conference vivid- 
ly demonstrated the gover- 
nors' political importance. 
Not since 1968 have Republi- 
cans controlled so many gov- 
ernors’ offices. Republicans 
became governors in eight of 
the nation’s nine most popu- 
lous states, states that have 
the most electoral votes and 
will be crucial in the 1996 
presidential elections. The 
only trig state that rebuffed 
the Republicans was Florida, 
where Governor Lawton 
Chiles withstood a challenge 
from Jeb Bush. 

Several governors, howev- 
er. insis ted that they could 
work well with the new Re- 
publican leaders in Congress. 
In an initial effort at keeping 
smooth relations, Governor 

Tommy G. Thompson of 
Wisconsin and some col- 
leagues met earlier Sunday 
with Senator Bob Dole, Re- 
publican of Kansas, and oth- 
er senators. 

“They’re eager to cooper- 
ate with us,” Mr. Thompson 
said. “And that is such a 
change of philosophy and 
common courtesy that we've 
been asking for tor so long.” 

But the comments of the 
governors amounted to a pre- 
view of the possible intra- 
party fissures among mem- 
bers of Congress and the 
governors. Many of the Re- 
publican governors said the 
midterm elections wore a ref- 
erendum on their successes at 
Cutting taxes and brin ging, 
other innovations to states, 
not simply a reflection of ap- 
proval of Mr. Gingrich and 
his “Contract With Ameri- 
ca,” a list of 10 tax-cutting 
and budget-balancing pro- 
posals by Republican candi- 
dates for House. 

The governors also were 
adamant that they did not 
want Congress to be distract- 
ed by social issues like school 
prayer and abortion. Gover- 
nor-elect George W. Bush of 
Texas said he saw nothing 
wrong with organized prayer 
in schools, but be questioned 
whether it should be such a 
focus in Washington. 

“I have no problem with a 
school prayer amendment so 
long as it is not mandate to 
our local Texas school dis- 
tricts,” Mr. Bush said, “and 
each district school board 
gets to make that decision. 
My priority is for Texans to 
be running Texas. And I hope 
that that’s the message that 
comes out of Congress. We’re 
pretty good at what we do in 
Texas, and we like to be left 
alone by the federal govern- 
ment as much as possible.” 



Heims Warned on Aid Cuts 

WASHINGTON — Responding to criti- 
cism from Senator Jesse Hehns, a top admin-. . 
istration official cautioned Monday against 
foreign aid cuts, asserting that current spend- 
ing levels were already at' “rode bottom.” 

Going bn the offensive against the soon-to- 
be chairman of the Senate Foreign Relations 
Committee, J. Brian Atwood, bead of the 
Agency for International Development, said 
further aid reductions would have a serious 
impact on the national interest 

Mr. Hehns, a North Carolina Republican, 
has pledged to make the Agency for Interna- 
tional Development a principal target when 
he assumes the committee chairmanship. 

Mr. Atwood said the aid spending levels 
had been reduced by 20 percent since the 
Bush years and were lower than at any time 
since 1946. “We’re at rock bottom,” he said. 
“You really can’t take further reductions 
without losing our influence.” (AP) 

Less Welfare for Immigrants? 

WASHINGTON — Republicans are mov- 
ing to deny welfare benefits to most legal 
immigrants, many of them the elderly parents 
of American citizens. 

The restrictions, which would save S22 
billion over five years, are part of a welfare 
overhaul planned by the Republicans for 
next year. One of the least-noticed provisions 
of the plan is its ban on government services . 
and benefits to most legal immigrants.. Refu- 
gees and legal residents over . the . age of 75 
who have been in the country for at least five 
years are the exceptions. 

Legal immigrants would be barred from 60 
health, education, job training, nutrition, 
housing, cash and social service programs. 

Some of the biggest savings would come 
from removing legal immigrants the Supple- 
mental Security Income program and from 
Medicaid, except for emergency care. (AP) 


Bill Press, chairman of the California 
Democrats, on the party’s problem national- 
ly: “The message we were broadcasting for 
the most part is that we're there for the have- 
nots but we’re not there for the haves. And 
the haves voted and the have-nots didn't. So 
we’re perceived. I’m afraid, as the party of 
African Americans, the party of Latinos, the 
party of women, the party of gays. But we're 
not the party of white working men and 
women anymore and the middle class." 


Aliens in 
Wait It Out 

By B. Drummond Ayres Jr. 

New York Tones Service 

LOS ANGELES — She said 
that her name was Maria and 
that she bad slipped across the 
border from Mexico three years 
ago, without immigration docu- 
ments but with the hope of find- 
ing work and making a better 
life, even if It was the furtive life 
of an illegal alien. 

No, she said, no one had ever 
asked her for any proof of legal 
residence. In her world, she ex- 
plained, you do not go where 
people ask questions. 

She said she had signed up 
for English classes at the local 
high school because she knew 
no immigration questions 
would be asked. And, she went 
on, at the Clinica Para las 
Americas, where she was wait- 
ing with her 2-year-old son Leo 
to see a doctor, no one ever 
asked such questions. 

“You learn where to go and 
how to do things,” she said. 

But wouldn't all that change 
now that Proposition 187 had 
been approved by California 

What would she do should 
the courts not throw out the 
provisions of the new law that 
instruct teachers and doctors to 
turn her away and report her if 
she cannot produce proof of le- 
gal residence? 

“I don’t know,” she replied, 
speaking through a translator 
but throwing in a few newfound 
words of English. “Maybe FU 
return to Mexico. Maybe not. 
Maybe people like me trill find 
new ways to stay here. Let’s see 
what the courts decide.” 

All over California, particu- 
larly southern California, un- 
documented aliens like Maria 
are watching and waiting. Un- 
certainty is about the only cer- 
tain thing in an illegal immi- 
grant’s life, and Proposition 187 
is the biggest uncertainty yet 
The measure’s supporters 
contend that, if it survives court 
challenges, it will put an end to 
California taxpayers shelling 
out more than S3 billion annu- 
ally in benefits for illegal aliens. 
But opponents say it will cause 
more harm than good and, in 
fact, is so draconian that it is 

In any case, even in legal lim- 
bo, Proposition 187 appears al- 
ready to be having some impact 
cm California’s huge undocu- 
mented i mmi g ra nt population. 

School officials report that 
some immigrant children the/ 
believe to be in the country ille- 
gally are being withheld from 
classes by their families, though 
the drop m attendance is not yet 
very significant. 

Officials at medical clinics 
that serve poor immigrants, like 
Clinica Para las Americas in 
Los Angeles, say they also have 
noted a falloff m patients they 
believe to be illegal aliens. 

In particular, they report, the 
falloff has been notable among 
patients who can postpone 

Proponents of Proposition 
187 argue that the problem is 
created by illegal unmigrants 

Fm* O’Cmer/The AMod&lcd Pro* 

TRAIN BLAZE — A Toroato-toM&ontreal trim hit a loose ra3 lying on the tracks aod caught fire, mjmfog about 60 
of the 407 passengers. The incident occurred near Brighton, 85 miles (135 kilometers) northeast of Toronto on 
Sunday night. Police said an initial investigation showed ayardlong section of loose rail had been pot on the track. 

Imperiled Species Accords: A Mixed Bog 

By John H. Cushman Jr. 

Afar York Times Service 

WASHINGTON — The agenda was as 
diverse as Noah’s passenger list, and not 
surprisingly, conservationists said the re- 
sults were mixed as partners in a treaty to 
control global trade in imperiled species 
concluded a meeting in Florida. 

Ten Asian nations taking part in the 
biannual meeting of the treaty’s signers 
reached a major accord to protea tigers, 
whose parts are often used in folk medicine 
and whose numbers are dwindling despite 
the treaty’s safeguards. 

China, India and eight other countries 
agreed to enact national laws banning such 
trade, to take control of stockpiled tiger 
parts and to preserve the tigers’ habitat. 

But delegates declined to take steps to 
protect broadleaf mahogany, a timber that 
is exported from Brazil and Bolivia. Envi- 
ronmental groups and the timber industry 
had battled bitterly over the proposal 

While some conservationists praised 
steps taken at the meeting, others criticized 
its failure to adopt stronger enforcement 

lany of t 
will be 

ence will be hollow victories,” said Suzy 
Sanders of Defenders of Wildlife, an 
American group. 

Though the delegates argued over many 
individual plant and animal species, they 
adopted new criteria on how to decide 
which species should be protected under 
the 19-year-old treaty and which are so 
threatened that their export should be out- 

In the past, such decisions were made 
laigely on the basis of politics and fervor. 
The new criteria are meant to bring more 
scientific information to the process rather 
than relying solely on numerical data, like 
how many of a species are still living. 

Contrasting derisions involving two Af- 
rican species — elephants and rhinoceros- 
es — point to the difficulties facing the 
group as they try to reward countries for 
their conservation efforts. 

The meeting refused to allow South Af- 
rica to export deph ant hides and meat. But 
in a separate vote. South Africa received 
permission to export live rhinoceroses and. 
to let sport hunters from other countries 
take out rhino trophies. 

South Africa had sought permission to 
sell elephant hides and meat, but not ivory, 
and to export rhin os under controlled con- 
ditions. It said that this approach would 
reward the country for its costly conserva- 
tion efforts and would not encourage 
poaching. The nation's healthy and care- 
fully managed population erf elephants in 
Kruger National Park needs periodic cull- 

Although many countries, including the 
United States, were sympathetic to South 
Africa's argument, delegates said some 
other African countries were worried that 
any trade in elephants would encourage 
poaching throughout the continent. 

After the United States said it would 
abstain from voting on the elephant issue, 
South Africa withdrew its proposal. 

On another issue, the United States won 
approval for a resolution b eginning what 
could be a long process of gaining some 
protection for sharks, whose numbers may 
be dwindling because of the trade in shark 
products, especially fins. 

The U.S. proposal will lead to extensive 
studies of sharks, with the aim of control- 
ling levels of fishing for them. 

Dole’s GATT Trade-Off CUNTON: On No** for i<m 

t/ * / Continued from Page 1 mounted a full-scale cai 

For Tax Cut Draws Fire 

International Herald Tribune 

ing Democrat harshly criticized 
Senator Bob Dole on Monday 
for his decision to press for U.S. 
tax changes in return for his 
support of the global tariff-re- 
duction treaty. 

Richard A. Gephardt of Mis- 
souri, the Democratic leader in 
the House of Representatives, 
accused Mr. Dole, Republican 
of Kansas, of “blatant, back- 
room horse- trading” and “petty 

Mr. Dole appeared Monday 
to stick by his view that the 
White House should support a 
cut in the 28 percent tax on 
capital gains if President Bill 
Clinton wants to win Mr. 

body votes Dec. 1 on whether to 
ratify the global treaty. 

White House officials ap- 
peared to rule out any deal on a 
capital gains tax cut. Both sides 
continued private talks on 
Monday to satisfy Mr. Dole's 
concerns about the treaty, and 
both have suggested that pro- 
gress was being made. 

Mr. Gephardt said that 72 
percent of the benefits from a 
capital gains tax cut would fall 
to those making more than 
$100,000 a year, and labeled the 
long-sought Republican goal “a 
giveaway to rich investors.” 

Sunday, Leon E. Panetta, the 
White House chief of staff, said 
Mr. Dole had raised “some le- 
itimate concerns'* about 


major internal challenges. Con- 
fronted with deep splits within 
the party, two of the three de- 
cided not to run. 

In 1952, Senator Estes Ke- 
fauver of Tennessee announced 
his candidacy and won the 
Democratic primary in New 
Hampshire. President Hany S. 
Tr uman kept his counsel for 
weeks, but in April he an- 
nounced that he would not seek 
a second full term. 

In 1968, Senator Eugene Mc- 
Carthy of Minnesota chal- 
lenged Lyndon B. Johnson in 
New Hampshire, mainly be- 
cause of the Vietnam War, and 
finished a surprisingly strong 
second. The president soon 
pulled out of the race. 

In 1980, Mr. Kennedy 

cam paign 

to wTest the Democratic nomi- 
nation from Mr. Carter.- He 
won several primaries but was 
ultimately unsuccessful. 

Nor have Republican presi- 
dents been immune to chal- 
lenge. In 1976. Ronald Reagan 
veiy nearly took the nomina- 
tion from President Gerald R. 
Ford, who had been weakened 
by the pardon he had granted 
former President Richard Nix- 

Any insurgency this time will 
have to start early. Changes in 
the electoral calendar — pack- 
ing more primaries than ever, 
including California's, into the 
early months of 1996 — make 
early organization and fund- 
raising indispensable. 

Clinton wants to win Mr. gjtimate concerns aooui 
Dole’s backing for the trade GATT, including concerns that 
treaty, the General Agreement the treaty may undermine U.S. 
on Tariff s and Trade sovereignty. But Mr. Panetta 

As Republican leader in the said the capital gains tax issue 
Senate. Mr. Dole's support is “does not have any relationship 
considered pivotal when that to the GATT agreement.” 

SORRY: A Diplomatic Misstep 

COED: Despite Some Grumbling, Both Sexes Are Taking a Shine to Mixed Basie Training 

Cmtimed from Page 1 
together,'’ Mr. Lane recounted. 

Ms. Rutter said the women, 
often challenged to do better by 
the men, found ways in turn to 
motivate them. 

“Some of the guys werent 
good at remembering things, so 
we’d make up rhymes to help 
them," tile said. “In the field. 
I’d go behind a guy who was 
having trouble keeping up and 
say, “Hey, you won’t let a girl 
beat you, will youT^and that 
would motivate him.” 

Women in other sex-mixed 
training companies also spoke 
en thusias tically of the value of 
c om pet in g with men. 

“The las t time I went on a 
march , i had a guy io ffotrf 
■ in back, pushing me on," 

Shelby Bresson, standing guard 
nearby. “They tease us, saying 
we can’t keep up. They think 
this is a man’s army, but it’s not, 
it’s a UA citizens’ army.” 

Officers say they try as much 
as possible to treat both sexes 
the same. Male and female re- 
cruits train on the same courses, 
shoot the same rifles, cany the 
same weighty gear and wear the 
same boots. 

But the physical performance 
requirements for men and 
women do differ, a reflection 
that on average men have larger 

. hearts and lungs, more muscle 

nanv. 3rd Battalion. “Then they and longer strides than 


training with Charlie Company, 
3rd Battalion. “That helped a 
lot If I had been marching with 
all females, 1 wouldn’t have 
pushed myself as hard.” 

The female trainees appeared 
to take particular pride in dem- 
onstrating they could keep up 
with the men. 

“At first the guys tried to 
help us do everything, as if we 
couldn’t do things ourselves — 
like pack duffle bags or bold 
doors opai," said Private Elisa 
Suarez, 18, dad in combat fa- 
tigues and settingup a campsite 
in the woods with Alpha Corn- 

our own.’ 


“They thin* they’re so big oe ante to uo m pusB-uj» «■*** rr* r~ — “ — r 

mnA S3 and thev hate asking 42 sit-ups and run two miles army has not worked out all the have changed, and because 

m kilometers} in about 17 hitches yet. Women still com- women now serve with men m 

score; the corresponding stan- 
dards for women are 13 push- 
ups, 40 tit-ups and 20 minutes. 

“The aim is to obtain the 
same amount of expenditure of 
energy by men and women,” 
said Colonel Franklin (Buster) 
Hagenbeck, commander of the 
training brigade here. “But 
that's a hard point to make with 
scone of the male trainees.” 

If the men naturally do better 
on the exercise field, the women 
score higher in such classroom 
courses as first aid and radio 
operations. They also do a bet- 
ter job keeping their bunks in 

More than a year of study 

The men, for instance, must preceded the decision to inte- 
be ahte to do 32 push-ups and grate basic training, but the 


shower heads in the barracks. 
F emal e trainees also have been 
suffering higher rates of iiqury 
and sick call — a result, com- 
manders at Fort Leonard Wood 
suspect, of the women pushing 
themselves too hard to keep up 
with the men. 

This is not the first time the 
army has tried training the 
sexes together after induction. 
Coed basic training was discon- 
tinued more than a decade ago 
amid reports that male perfor- 
mance was declining , and army 
officials who are skeptical 
about reviving the approach 
have pointed to this as evidence 
it is destined not to work. 

Advocates of integration of 
the sexes, however, say times 

a guy m oack, pusraig me if thev have (32 kilometers) 

m about 
receive an average 


plain of too few toilets and all of the army’s noncombat po- 

sitions, it makes little sense to 
train them separately during 
their first eight weeks in the 

Although accustomed for 
years to coeducation in ad- 
vanced training programs, the 
army took months reviewing 
the prospect of coed basic train- 
ing. At pilot programs at Fort 
Leonard Wood and at Fort 
Jackson, South Carolina, the 
service experimented with vari- 
ous mixes, concluding that the 
■ optima] was about a 75-10-25, 
male-to-female ratio. 

“The males in the 75-to-25 
combination felt much better 
about their training, they fdt 
they were still in control,” said 
Jackie Mottem of the Army Re- 
search Institute. “When we 
went to a 50-50 mix, there was 
more role confusion.” 

Continued from Rage i 

Japanese Navy task force se- 
cretly sailed toward Hawaii. 

On the morning of Dec. 7 — 
Dec. 8 in Japan — Japan’s For- 
eign Ministry seat a final mes- 
■sage to the State Department It 
was supposed to be delivered at 
1 P.M. Washington time, just 25 
minutes before the raid was to 
begin. With characteristic 
vagueness, the Japanese cable 
did not clearly declare war or 
threaten attack. The message' 
said Japan “cannot but consid- 
er that it is impassible to reach 
an agreement through further 

Even the Japanese diplomats 
in Washington did not under- 
stand this to be a warning of 
imminent attack. They took 
their time in typing a transla- 
tion and did not deliver it to the 
U.S. side until an hour after 
Pearl Harbor had been 

Among the documents newly 
released are letters from Japa- 
nese diplomats in Washington 
saying they were amazed to 

hear reports on the radio that 
Japan had attacked Pearl Har- 

In Japan, it is conventional 
wisdom that the failure to deliv- 
er this message as planned, 25 
minutes before the attack, is the 
reason that Americans to this 
day do not trust the Japanese in 

“The delay in d divering that 
announcement,” the Asahi 
Shimbun said Monday, 
“sparked a widespread belief 
among the American people 
that the Japanese are sneaky. 
Long after, the feeling Ungers, 
and even in economic disputes 
it has a profound impact on 
Americans 1 ' deep distrust of Ja- 

“Of course, Japan should 
apologize to the U.S., too,” said 
a sociologist, Katsusuke Suen- 
aga. But in Japan, he added, 
“the group you belong to disci- 
plines your conduct Since the 
Foreign Ministry was guilty of 
misconduct here, it is entirety 
natural that it would apologize 
to the people of Japan for caus- 
ing shame.” 

Troops Quit Rio Drug Slums 

After Weekend of Searches 


zilian Army and Navy troops 
have pulled out of two Rio 
shantytown* after weekend 
searches for drug traffickers, an 
army spokesman said Monday. 

Referring to the situation m 
the Mangneira slum, Colond 
Ivan Cardozo said: ‘The h2i » 
no longer under the control of 
the drug traffickers.** 

But shortly after troops 

n.j w. ^FlianmiMTa. S3HS35” 

In Dende, a shantytown 
overlooking Rio’s Guanabara 
Bay, navy units supported by 
tanks and helicopters spent 
nearly 48 hours searching for 
traffickers, dregs and weapons. 

Army officials have not dis- 
closed how many troops were 
involved in the two operations, 
but news reports said thefigurc 
ranned between 1,500 and 

da vn a locm , j 

recxackers to alert would-be 
astonws Hull business was 
aft to normal, witnesses told 
irazflian newspapers. 

Globo television said -128 
people had been arrested dur- 
ing the operations, nufriding 
the suspected head of the dreg 
trade in’ Mangueira. Eighteen 
people remained in custody 
Monday, Globo said. 

Away From Politics 

it • Navy records released by the mother of a 
female fighter pilot killed in an October crash 
show the aviator was rated above average 
when she qualified to land the jet on aircraft 
carriers. Lieutenant Kara Hultseea crashed 
on Oct 25 about 50 miles (80 kilometers) off 
the coast of San Diego. 

• Construction accidents have sharply in-, 
creased in Southern Cafif orcua siace a Jan. 17 
earthquake centered in Northridgp- State offi- 
cials blame a construction boom due to re- 
pairs of qualce4amaged buildings. Several 
area hospitals report an increased number of 
people needing treatment for falls from roofs, 
ladders and scaffolding. 

• A fire fighter m New YwrkGty was cradling 
two children in his arms and guiding their 
parents from a sixth-floor window to safety 
when the ladder they all rode twisted and 
collapsed. The father leapt free, and died. The 
mother and the children, ages 4 and 6, were in 

critical condition and the fire fighter’s condi- 
tion was serious, a hospital spokeswoman said. 

• A crew member (Bed and at least four were 
injured when a freighter loaded with coal 
caught fire Sunday about 200 miles off Boston, 
the Coast Guard said. The ship was headed for 
Italy after loading in Norfolk, Virginia. 

• The rock singer David Crosby was in critical 
but stable condition after seven hours of sur- 
gery to replace ins liver. A hospital spokes- 
man in Los Angdes said the condition report 
was normal after' an organ transplant Mr, 
Crosby is a member of the rock group Crosby, 
Stills and Nash and was a member of the 
1960s folk-rock group The Byrds. 

• Kfeahetfa Birch, Apple Computer's senior 

attorney, has resigned to take over leadership 
in January of the coontfy’s largest gay rights 
organization, the Washmgtoorbased Human 
Rights Campaign Fund. ap.afp 


Then's Srst business 

TEL. (41 22) 731 98 31 

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The Swiss Leading Hoick 

FAX (41 22) 732 45 58 

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Page 4 






A Force lor Rwanda 

(tribune Unchecked Aggression in Europe Endangers die West 

Rwanda is the case almost no one is 
willing to contemplate. It's too hard, too 
horrible. Even without looking, we know 
what is going on there: great continued 
daily distress and the stark possibility of 
a return to genocide. People argue, by 
way of justifying their indifference, that 
Rwanda is not a country that counts 
much in the world and that many other 
crises cry for global attention. 

Here ls the immediate problem: 

The Hutu launched an immense geno- 
cide earlier this year. The minority Tutsi 
victims fought back and finally seized 
power. A million or more Hutu refugees 
ended up in neighboring Zaire. Now the 
same Hutu militiamen, soldiers and poli- 
ticians responsible for the original geno- 
cide run the camps in Zair e and prevent 
their fellow Hutu from going home to 
Rwanda — just as Khmer Rouge killers 
ensconced themselves in camps of cap- 
tive Cambodian refugees. 

The natural solution is to remove and 
relocate the gangs and let the refugees go 
home. To do that, however, w flj require 
the United Nations to go beyond diplo- 
macy and form up what a UN report calls 
“a force of significant strength" that 
could "forcibly disarm, collect and es- 
cort" the Rwandan ex-gov emmem forces 

“to cantonment sites." It would be dirty 
work, the report warns. The report antici- 
pates an imminent request to the Security 
Council to take on that mission. 

To say there is an international reluc- 
tance to assume new burdens in Rwanda 
begs the question. The French, almost 
alone, intervened before, but they no 
longer have the taste for it. 

All nations, however, must contem- 
plate the consequences of turning away. 
The human consequences are further suf- 
fering and death. Toe political conse- 
quences involve the stability of Rwanda's 
region and the impetus given to geno- 
cides elsewhere. The moral consequences 
go to the deepest questions of compas- 
sion and responsibility. 

So much is said about how America, 
which is the country to which others look 
first, must discriminate in its interven- 
tions. But if Americans are to restrict 
their own humanitarian imperatives, then 
they must pay more attention to alterna- 
tives. The most attractive alternative is to 
have a widely subscribed, weD-tramed 
UN volunteer force at the ready for emer- 
gencies chosen by (he Security Council. It 
could be called, the v:ay things are going 
now, the Rwandan Memorial Corps. 


A Global Criminal l uurt 

After extensive and complicated prepa- 
rations, the United Nations ad hoc tribu- 
nal to investigate war crimes in die former 
Yugoslavia is just now getting started. 
Two weeks ago the massacres in Rwanda 
were added to its jurisdiction. But these 
two examples of human rights disasters 
are by no means the only ones deserving 
the attention of the international commu- 
nity. What of the crimes of the Haitian 
junta? The Indonesian army in East Ti- 
mor? Turkish and Iraqi persecution of the 
Kurds? It would be impossible to convene 
ad hoc tribunals to investigate all these — 
yet it seems inherently unfair that some 
conflicts are singled out for world atten- 
tion when others, whose victims are every 
bit as human, are ignored. 

For years, a solution to this problem 
has been discussed in world forums: an 
international criminal court to deal with 
war crimes, crimes against humanity and 
possibly other intractable problems like 
hijacking, drug trafficking and interna- 
tional crimes against the environment 

In 1992 the UN Security Council 
unanimously requested that the Interna- 
tional Law Commission start to draw up 
the terms for an agreement to set up such 
a court Since then there has been a suc- 
cession of study groups and high-level 
meetings. The International Law Com- 
mission has prepared a draft statute. 
Most of the international community 
now agrees that it is time to get serious — 
but not the United States. 

Two competing resolutions are now 
before the UN General Assembly. One. 

sponsored by the Ur.iied States, calls for 
yet another ad h.-r committee, which 
would just poster c the process. The 
other, sponsored ’by a croup of European, 
Asian and Latir .-‘jvJrican countries, as 
well as Canada. u. ! i; for a preparatory 
committee to berin rueotiating the text 
for such an agreement. The United States 
is reluctant to be. - !: this resolution, for 
various reasons. 7.?e Justice Department, 
the Defense Deportment and conserva- 
tives in Congress all have understandable 
worries about ho v/ such a court might 
infringe on Africa's sovereignly. But 
such problems can be addressed in a 
preparatory committee. Agreeing to such 
a committee weald net commit the Unit- 
ed Stales to anything. 

The disasters in the Balkans and 
Rwanda, sadly, wijj not be the last of 
their land. In die cb.-mce of such a per- 
manent court, future human rights out- 
rages will demand ti:e convening of more 
ad hoc tribunals — -n expensive, time- 
consuming and eu~b;:roine process. Fi- 
nally. it looks bad for the United States 
to lecture other countries on human 
rights and international standards of de- 
cent behavior and then be the one signif- 
icant holdout sgtiarl a mechanism to 
uphold those standards. 

Next year will be the 50th anniversary 
of the opening of the Nuremberg trials. 
It would be a fining lime to begin in 
earnest on an agreement by all nations 
to subject themselves to minimal stan- 
dards of human t-.-hr.vior. 

— 77/5 .vrrr york times 

Fears About Genetics 

The molecular biologist John Fagan 
touched a nerve last week when he held a 
news conference to announce that he was 
giving back S600.000 in federal research 
grants. His reasons — concern at the 
momentum of genetics research, and be- 
lief that scientists should join him in 
backing a 50-year moratorium on certain 
types of commercial applications — tap 
into a lot of lay people’s as yet unfocused 
worries about tbe possibilities that bio- 
genetic experimentation could unleash. 
Can a genetically engineered or mis- 
engineered organism “pollute" the envi- 
ronment? What about “Jurassic Park”? 

These vague fears are based frequently 
on only partial understanding of the tech- 
nology involved. And it is also true that 
the particular dangers Mr. Fagan stresses 
— so-called “germ- line’' manipulation of 
the transmissible genetic material of or- 
ganisms — are not necessarily so serious as 
to outweigh the usefulness of this work. 
Mr. Fagan’s position, however, is not that 
of oppoation to genetic manipulation per 
se, but rather of caution in the face of the 
industry's momentum and, be says, an 
absence so far of coherent oversight He 
suggests that biogenetic technologies are 
now “at the point where nuclear and 
chemical technologies were earlier in the 
century" — that is, on the optimistic brink 
of seemingly fabulous possibilities, but 
without any specific framework for avoid- 
ing the accompanying dangers. 

What exactly might those dangers be? 
This is the point on which disputes 
among scientists are sharpest. It is also 
the central question for anyone trying to 
design a strategy to contain them. Mr. 
Fagan says he is most worried about 
environmental disruption, tbe “domino 
effect" that could hit ecosystems if a 
commercially engineered variation were 

released into the wrong environment, es- 
pecially if its g encs tzd been altered in a 
way that would m ike the change heredi- 
laiy. “You can't recall a fish." 

Other geneticist differ with Mr. Fa- 
gan’s estimate of the level of danger in- 
herent in some products that have been 
cleared by tbe patchwork regulatory 
structure. Bovine growth hormone occa- 
sioned a terrific fight but was eventually 
cleared by the Food and Drug Adminis- 
tration; so was the “Flavr Savi” geneti- 
cally enhanced tomato. Mr. Fagan's big- 
ger point is that the excitement of these 
and other commercial possibilities could 
outstrip researchers' own caution and 
get beyond even the existing safety fea- 
tures. His gesture, and the attention it 
has drawn, could Gash a useful yellow 
light on the stampede. 


Oilier Comment 

A Lesson Unfa- the Channel 

The first passer.^r train through the 
tunnel under the Stilish Channel was a 
historic event. It rJso rends an important 
lesson to the United States. Passenger rail 
service can't rirvivc fin the United 
States], even in tfce Northeast where it 
makes the most economic sense, without 
major infusions cf capital. But it must 
flourish, if only because the world of the 
21sl century will demand it. Perhaps a 
Congress hostile to public investment 
will force federal transportation officials 
to contemplate new approaches. Travel- 
ing comfortably bt tween central London 
and downtown Fans is three hours might 
give them the right inspiration. 

— 77?*' Baltimore Sun. 

Infernal tonal Herald Tribune 

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B OSTON — If the leaders of the West- 
ern alliance want to understand the 
challenge the West faces after the Cold 
War — one they show no signs of having 
understood so far — they should meet 
Dr. Esraa Zccevic. 

Dr. Zeoevic is chief pediatrician at Ko- 
sevo Hoqjital in Sangevo. In a column last 
month I described how she worked under 
appalling conditions — and how she was 
herself gravely wounded by a sniper's 
bullet that pierced her lung. 

Friends got her out of Sarajevo and 
flew- her to Boston to have the bullet 
removed. Surgeons found it resting on 
her aorta, the great artery from the heart; 

another fraction of an inch and die 
would have died. 

When I saw her last week, she said die 
felt fine now. Would she stay here for a 
while to rest and recover from the ten- 
sions of life undo- Serbian attack? No, 
she said, her place was in Sarajevo. She 
began her journey home on Friday. 

To meet Dr. Zecevic is to understand 
how the Bosnian war menaces Western 
values. Here is a 54-year-old woman. 
Western in outlook, a committed doctor, 
whom Serbian aggressors want to kill 
because of her religion. 

By Anthony Lewis 

She is a Muslim — not someone who 
wants a Muslim state, but one who pre- 
cisely cherishes Bosnia because it has 
been a mixture of cultures and religions. 
Her family happens to be Muslim; for 
that she and others like her must be killed 
or removed so that Bosnian Serbs can 
have a pure Serbian state. 

That is the challenge to the Western 
alliance. Forty years ago the countries of 
Western Europe, the United States and 
Canada, having fought the racist savage- 
ry of Nazism, joined in the North Atlan- 
tic Treaty to preserve humane values 
from Soviet communism. Now they face 
this new menace, this new savagery in the 
name of religious nationalism. 

Leslie H. Gdb, president of the Coun- 
cil on Foreign Relations, defines tbe 
challenge in the current issue of Foreign 
Affairs. It is an “all-corrosive danger," he 
writes — “the teacup wars filled with 
countless bodies and honors, the scourge 
of civil and ethnic violence." 

The piece warns that we in the West 
may underestimate the change in the 
world since the Cold War ended. We may 

go on worrying about the old problems 
that haunted us — Russia, Germany, 
nuclear weapons — and neglect what Mr. 
Gdb cans the new core problem, “wars 
of national debilitation.” 

“If we fail to ameliorate and check 
this scourge,’’ be writes, “both the vic- 
tims and the unpunished killers will 
undo much of what we value; and un- 
dermine efforts to mold a just and stable 
international order.” And the damage 
will be not jnst abroad but at home: 
“The failure to deal adequately with 
such strife, to do something about mass 
murder and genocide, corrodes the es- 
sence of a democratic society.” 

The West failed in the former Yugo- 
slavia. When Serbia sent the Yugoslav 
federal army into Bosnia to help the 
Serbian aggressors there, Britain and 
France chose appeasement. George 
Bush, fresh from his triumph in the Gulf 
War, did nothing. 

So it goes, to this day. UN forces, 
mainl y British and French, are in Bosnia 
to help get supplies to besieged civilians. 
But UN commanders have accepted Ser- 
bian rides of engagement, worked with 
the Serbian besiegers and siphoned off 
relief supplies to Serbian forces. 

NATO has many aircraft ready to at- 
tack Serbian forces for their frequent 
violations of declared safe areas, but the 
UN command regularly refuse to ap- 
prove strikes. And NATO itself is deqpiy 
divided, Britain and France resisting any 
forceful action on behalf of the victims 
because the Serbs might then attack then- 
troops on the ground. • 

The weakness and folly of the Western 
position have been h nmfli at ingl y illus- 
trated in recent days. Bosnian Serbs have 
shot missiles at the Sarajevo building that 
bouses the Bosnian presidency. Planes 
from the adjoining Krajina area of Cro- 
atia, held by Serbs, have violated the no- 
fly rule to drop cluster bombs and na- 
palm on the Bosnian safe area of BDzac. 
NATO and die United Nations responded 
with mere words until Monday’s air strike 
against tbe offending airfield in Kanina. . 
Words ride nothing, because the Serbian 
aggressors pay no attention to than. 

Unchecked aggression in Europe does 
not just menace Dr. Estna Zccevic and tbe 
innocent people of Bosnia. It menaces 
belief in the western alliance. If that goes, 
the Visigoths of nationalist frenzy, and 
ethnic hatred will indeed be at the gates. 

The New York Times. 

Asia-Pacific Cooperation Is Shadowy but Seems to Be Going Places 

J AKARTA — Five years after 
the launching of APEC, the 
Asia-Pacific Economic Coopera- 
tion forum, in Canberra in 1989. 
it is easier to say what the groap is 
not than what it is. 

APEC is not an institution. It 
remains tbe only major regional 
arrangement whose members can- 
not agree to belong to anything 
more than a topic: cooperation. 

APEC leaders' meetings, like 
the one last week in Bogor, Indo- 
nesia, are not summits, and their 
nonbinding declarations are not 
signed. Members are not even 
called countries, because China 
does not recognize the sovereign- 
ty of Hong Kong and Taiwan. 

APEC is not a customs union. 
It is not a free trade area. The 
leaders in Bogor merely called for 
“free and open” trade and invest- 
ment in the Asia-Pacific region by 
2020. Along with its other cots, 
APEC is not in a hurry. 

Yet in the Declaration of Com- 

By Donald K. Emmerson 

mon Resolve they issued in Bo- 
gor, APEC leaders took signifi- 
cant steps coward more trade and 
investment, and therefore more 
prosperity, on the already boom- 
ing Pacific Rim. Doubters should 
remember that APEC economies 
already account for nearly half of 
global output and 45 percent of 
world trade, and that those shares 
are growing rapidly. 

There wfll be substance to this 
political declaration because the 
APEC leaders agreed to ratchet 
up the pressure on themselves to 
keep opening their economies to 
freer flows of goods, services and 
capital across the Pacific basin, 
and to do so in ways conducive to 
expanding commerce globally. 

The Bogor declaration started 
two countdowns. One runs to the 
year 2010, when the industrial- 
ized economies in APEC are sup- 
posed to have achieved free and 

open trade and investment. The 
other will end in 2020, when de- 
veloping member economics are 
meant to have done the same. 

By directing their ministers “to 
immediately begin preparing de- 
tailed proposals for implement- 
ing,” the Bogor declaration's pro- 
visions, A PECs leaders have 
increased the pressure on their 
own governments to move be- 
yond rhetoric. 

Also encouraging is the deci- 
sion to renew the mandate of two 
expert advisory bodies — the Em- 
inent Persons Group and the Pa- 
cific Business Forum — to moni- 
tor members* progress and re- 
commend further steps. 

And Malaysia, which has ex- 
pressed reservations about APEC 
— fearing that the bigger more 
developed economies like tbe 
United States and Japan will not 
let smaller, poorer ernes catch up 

— was conciliatory. After the Bo- 
gor meeting, Prime Minister Ma- 
hathir bin Mohamad said that he 
agreed with and respected tbe Bo- 
gor consensus without feeling 
bound by it. “I will not go to war 
with the'U.S-," he joked. Malay- 
sia’s own commitment to free 
trade is clear. Its average tariff in 
1990 was less than 10 percent, 
and the recent budget contained 
further substantial cuts in duties 
on more than 2,000 items. 

As officials try to shape the 
Pacific Rim from the top down, 
millions of entrepreneurs are dai- 
ly energizing it from the bottom 
up. This is the best long-term rea- 
son to believe that momentum 
toward free Asia-Pacific trade 
and investment wifi not abate. 

Difficult questions remain. 

Will the U.S. Congress, newly 
polarized and Republican -con- 
trolled, sabotage President Bill 
Clinton's ability to live up to the 
Bogor declaration? Wifi Japan 

the 1995 APEC leaders’ meeting, 
in Osaka? How will APEC ac- 
commodate two opposing views 
of trade fiberalizatioii: tbe vohm- 
taty unilateralism favored by 
some members, and tbe bindin g 
reciprocity preferred by the Unit- 
ed States and others? And when 
wifi APEC take up issues of par- 
ticular concern to its less prosper- 
ous members, including the free 
movement of labor and the trans- 
fer of technology? 

Such questions are a reminder 
of how much could go wrong. But 
Bogor went well. APEC is moving 
forward on the right trade It 
would hardly be fur to ask more 
of such a new and untested engine 
of economic growth. 

The writer, a visiting professor 
with the Asia/ Pacific Research 
Center at Stanford University in 
California, contributed this com- 
ment to the Herald Tribune. 

The American Left Lost Touch and Has Deservedly Been Murdered! 

N EW YORK — I would Hke 
to be able to report that it’s 
too bad it took an unprecedented 
massacre at the polls for what we 
in America peculiarly insist on 
continuing to call “the left” to see 
the folly of its recent ways and 
begin to get itself on track. 

But I cannot so report, unfortu- 
nately. because I fear that even the 
drubbing that liberalian-progres- 
avism (the isms that are now 
wasms, to steal from the marvel- 
ous utterance made by the man at 
the British Foreign Office upon 
getting word of the Hitler-Stalin 
pact) endured on Nov. 8 has not 
sunk in, at least based on random 
conversations I’ve had. 

But let’s be clear about it; This 
left, whatever exactly it currently 
is, is finished Murdered. The 
beads are piled high in the tum- 
brils, and the crowd is slaked and 
has gone home. 

Is this just a postelection fever 
that I’ll get over with another 
week’s bed rest? I think not. 

It's not as if wbat happened on 
election day came on us with the 
suddenness of a Great Plains 
twister. It was years in the mak- 
ing The Nov. 8 returns were the 
final referendum on a liberal-left 
agenda that paid too much atten- 
tion to its tiny narcissisms and 
too little attention to the needs of 
most Americans. 

I interrupt this column to de- 
fine wbat I don’t and do mean by 
“most Americans.” 

I don't mean just white people. 
More specifically, I don't mean 
straight while males, or white 
married Christian couples. 

By Michael Tomaeky 

I mean most Americans, of all 
colors and persuasions and orien- 
tations under the cosmos, who 
work (or at least are desperate to) 
and pay taxes (or at least are 
willing to); who are not strongly 
ideologically committed in one 
direction or the other, many of 
whom raise children; who want 
tbe trash picked up and the neigh- 
borhood patrolled; who do want 
their government to address so- 
cial problems, but who quite un- 
derstandably are loath to turn 
their wallets over to politicians 
because they’re looking at their 
bank statements and realizing they 
are not having a grand time of it 
themselves (and because a politi- 
cian and an open wallet should 
never be in the same room any- 
way). And who are more compli- 
cated human beings than tbe reac- 
tionary, racist, sexist, homophobic 
buffoons that the left too often 
paints them in caricature to be. 

These people feel completely 
abandoned by the left. Or if they 
don't, they should, because they 
were abandoned years ago. They 
were cashiered in exchange for 
something that I can oily presume 
the liberal elites found to make for 
more scintillating cocktail conver- 
sation. namely, themselves. 

And so we sit around debating 
the canon at a handful of elite 
universities and arguing over 
Fish's or Jameson's influence on 
tiie academy, while the vast major- 
ity of working-class young people 
in America (a) wifi never read the 
canon, however you choose to de- 

Another Return to * Normalcy 9 

W ASHINGTON — The first 
“sea change” in American 
politics that I can remember was 
the election of 1920. That Repub- 
lican sweep came after World 
War I’s end. Wartime fear and 
patriotism had come to an end. 
Idealism pretty much dissolved. 

The public voted for what War- 
ren Harding offered; a return to 
“normalcy." They got a decade of 
Republican rule under Harding 
Calvin Coolidge and Herbert 
Hoover. Then came Franklin 
Roosevelt's election amid the 
Great Depression. 

Democrats had captured the 
House in 1930. but the real 
change ran from tbe 1932 presi- 
dential election. In that long era 
majorities backed FDR as he 
moved from economic recovery 
through governmental reform to 
the contentious years before Pearl 
Harbor and then through World 
War EL Once again a common 
goal, victory, prevailed — victory 
over economic adversity, then 
over military enemies. 

And once again, at the end, 
Americans were emotionally 
drained, widely disillusioned by 
the tangles of bureaucracy — ex- 
pressed so well in the wartime 
term “snafu." They wanted a re- 
turn to "normalcy." 

In tbe 1946 midterm election, 
voters chose a Republican -con- 
trol led Congress. If Harry Tru- 

man hadn't been such a scrapper, 
and if the Republicans had put up 
a better candidate, 2946 would 
have begun that new “normalcy." 
Truman’s 1948 victoiy only post- 
poned it until Dwight Eisenhow- 
er's election in 1952. But Dee's 
eight placid years were placid 
only in domestic matters. 

The Cold War dominated 
whether the president was Demo- 
cratic (Truman, John Kennedy, 
Lyndon Johnson, Jimmy Carter) 
or Republican (Ike, Richard Nix- 
on. Gerald Ford, Ronald Reagan. 
George Bush). No domestic issue 
was free from its tension and the 
fear of nuclear annihilation. 

But once again the national re- 
turn to a “normalcy" mind-set 
could dominate when that over- 
riding fear ended. And so this 
Nov. 8 saw the fourth “sea 
change. “ Of course, it really be- 
gan. as many have pointed out. 
with Bill Clinton’s election (or, 
rather, Mr. Bush’s repudiation) in 
1992, in what was the drat elec- 
tion after the end of Cold Wax 
tensions and restraints. 

Now, of course, history cannot 
he neatly compressed into eras. 

There always are exceptions and 
footnotes. But it does seem to me 
that what we have just witnessed 
can be seen to fit a general pat- 
tern of this bloody 20th century. 
— Chalmers M. Roberts, writing 
in The Washington Post. 

fine it and whatever you wish to 
in- or exclude, (b) wifi think Fish 
and Jameson stand for a dinner of 
carp and Irish whiskey (and be 
little the worse for thinking it, inci- 
dentally), (c) will take very' few 
literature courses, and (d) will be 
working like bell to save the mon- 
ey to pay their tuitions at a two- 
year college or perhaps a land- 
gram university so they can get a 
degree in whatever field they select 
ana find a job that promises a 
reasonable wage and some sem- 
blance of security so they can 
own a home and do the regular 
things Americans fall colors, per- 
suasions etc.) want to do. which 
are not, by the by, bad things. 

The canonical debate is impor- 
tant, to be sure, but it has nothing 
to do with the college experience 
of 97 percent of all working-class 
kids in this country, which, as 
Russell Jacoby amply demon- 
strates in his recent book “Dog- 
matic Wisdom," is about simply 
trying to get a foothold. 

I suspect that at the end of the 
day. tbe black and Latino youth of 
America, who depend so strongly 
on poorly funded community col- 
leges to help them move up. would 
be rather more thankful to the rest 
of us if we'd managed to get them 
more loans and resources and 
computers for iheir various and 
difficultly undertaken studies 
than they are now that we’ve 
managed to put Chdkh Acta 
Diop on a reading list most of 
them will never even look at 

It is a broad, long, harrowing 
indictment one that could fill 
pages. But let's cut right to the 
chose and lake on one of the big 
ones. To wit the single most in- 
teresting statistic to emerge from 
the elections: Proposition 187 
passed in California with the sup- 
port of one-quarter of the state's 
Latino voters and nearly half the 
stare's black and Asian voters. 

I wfl] not for a second defend 
that initiative, would have voted 
against it and hope it fails to 
survive judicial scrutiny. Certain- 
ly much of the rhetoric emanating 
from its more vehement support- 
ers was racist. But ask yourself: 
Can we really write off a large 
plurality of California’s black, 
Asian and Latino voters as racists? 

They may have been scape- 
goating, but they are also fright- 
ened and worried about their own 
economic status. A black man 
working at a menial job at Lock- 
heed knows exceedingly well that 
Lockheed would lake about a sec- 
ond and a half to show him the 
door in favor of an illegal Mexi- 
can if Lockheed felt (as it surely 
does) that the Mexican wouldn’t 
make a stink about medical bene- 
fits or sick leave. 

One can oppose Prop 187 and 
sill! be sympathetic to the point 
that those minority voters made. 
What's tragic is that things had to 
reach the point they did. 

And they reached that point in 
part because an essentially reac- 
tionary left, rather than consider- 
ing that the influx of illegal immi- 
gration created difficulties in the 
lives of working-class citizens and 

that something' should be done to 
address the problem, dug in its 
heels and cried “racisL" Yes, true 
enough; but after you identify it 
then what do you do about it? ■ 

There’s no surer way to create 
new generations of conservatives 
(of all colors, and believe me, it’s 
happening) titan to let the right 
take the lead on welfare, crime, 
immigration and other matters, 
because tbe right will score a 
knockout every time. Not because 
people are reactionary boobs, but 
because the left isn’t offering them 
an alternative way of doing things 
that makes any sense in their livre, 
and people can only select from 
what’s on the menu. 

Now will come the arguments 
that the Democrats, having 
failed to carry the day in their 
lurch to the right, can succeed 
only by moving back to the left. I 
wish it were true. 

If nothing else, the election 
brought us the good news of tbe 
stain on tbe escutcheon of the 
Democratic Leadership CounciL 
And one thing we know is that 
no Democrat can out-conserva- 
tive a Republican, because tbe 
ones who tried that lost, too. 

But does anyone seriously be- 
lieve thaL, in the current climate, a 
Democratic Party that stands for 
single-payer health care, deeper 
military cuts, less welfare reform 
and a corporate tax increase wifi 
pull votes? If you do, T invite you 
to visit Earth sometime from 
whatever planet it is you've been 
sleeping on. It’s not happening. 

And please, spare me talk of 
third parties. First of all, they 
never get off the ground, and sec- 
ondly the only third party that's 
likely to arise in this country to- 
day is one born of what the politi- 
cal scientist Theodore Lowi calls 
"the radical center’’ — Perot peo- 
ple, basically, and others who de- 
spise the two parties, whose num- 
bers grow daily, and who are not 
now and never will be on the left. 

That's the situation, and things 
will probably get worse, much 
worse, before they get any better. 

Maybe we’ll just have to let 
the people have their death pen- 
alty, their tax cut and their 
school prayer, and then, once 
they see that crime and corrup- 
tion and interest rates and moral 
decay continue to exist, they will 
start coming bade. 

That will take a generation, of 
course, or maybe longer, and God 
only knows how many poor peo- 

S le are going to be whipsawed 
e tween now and then. 

The answers? I don't have 
them. All who tell you they do are 
kidding you, or more likely them- 
selves. I do know, however, that 
one of the many ill winds Mown 
in by the whole web erf inanities 
that’ we call political correctness 
is that it validated and calcified 
— J use tbe past tense here, rather 
hopefully, I know — a system of 
political ranking by which all who 
did not subscribe to the newest 
and trendiest and most subver- 
sive (superficially, of course) poli- 
cy positions on a laundry list of 
issues were immediately written 
off as enemies of “progressivism” 
and instantly deemed unworthy 
of consideration or support 
That must end. Not in the 
name of reviving some old left 
from the '30s, because that’s 
packed away in the dustbin, too, 
but in the name of r emaking a 
movement that understands, 
first, that every new and superfi- 
cially radical idea is not good, 
second, that every old — mire 1 
say it, traditional — idea is not * 
bad, and, last, that some combi- 
nation of the two can constitute 
a real progressive vision of a so- 
ciety based on work, education, 
community and ail those other 
things that were our ideas to be- 
gin with but that we somehow 
abandoned and let the right wing 
take up and pervert. 

We behold the strange fruit of 
our failures today. 

The writer is a political colum- 
nist for the Village Voice, from 
which this comment was obtained 
by The Washington Post 


1894: Her Inclinations 

LONDON — It is seldom that 
such admissions are made in the 
witness box as that made yester- 
day {Nov. 211 by Mr. Harding 
Cox in a further hearing of the 
now celebrated Harding Cox v. 
Cox and DybaU divorce case, 
when that gentleman said his wife 
had told him that a Mr. Butler, 
whom she met in a hydropthic 
establishment, exercised a great 
fascination over her, but that she 
had never committed any wrong, 
for when she had felt inclined she 
had not had an opportunity and 
when she had had on opportunity 
she had not felt inclined. 

1919: Rationing Again 

WASHINGTON — [From our 
New York edition;] President 
Wilson today [Nov. 21] placed the 
government again in coatrol of 
the nation’s food supply by trans- 

ferring the authority of the Food 
Administration to Attorney Gen- 
eral Palmer. Revival of the war 
tune functions of Food Adminis- 
trator Hoover resulted from gov- 
ernment efforts to avert a sugar 
famine, but the powers wifi be 
used also to put dkiwn the cost of 
Irving. Mr. Palmer’s staff will im- 
mediately build up a sugar dis- 
tributing system, which will allo- 
cate all sugar in (he country. 

1944: Advance in Saar 

our New York edition:] Swift ad- 
vances today [Nov. 21] by Ameri- 
can and French Forces on the 
southern sector of tbe Allied front 
resulted in the capture 'Of Saner 1 
bourg, a big French junction in the 
Saar Basin thirty-two utiles from 
the Rhine, and expansion of terri- 
tory held in the Belfort Gap area. 

Page 5 

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Tighten I mmig ration Rules 
But Don’t Make Kids Pay 

By Wil liam S afire 

tA „r — “ w * movement 

to deny schooling and medical ser- 
wccs to fflcgal immigrants who arc 
not actually bleeding to death is the 
nr$t skunush in the war on unwed 
welfare mothers. 

That » totalise both Proposition 
187 (punishing some 300,000 alien 
schoolchildren for the sins of their 
fathers) and the Gingrich approach 

to welfare reform 

. — j «v*«u uiuuicnj are 

based on this philosophy: the most 
cost-effective way to change behav- 
ior is to make life unbearable under 
present behavior. 

/During the recent resurgence of 
righteousness. Governor Pete Wil- 

Ho Americans really want 

underground, many to 

son of California was described in a 
column of mine as “the best candi- 
date with the worst issue," and 
Proposition 187, which he strongly 
supported, was denounced as a “na- 
tivist abomination-” 

1 came to admire him when, as a 
senator, he exposed the abuse of the 
franking privilege by incumbents. 
Early this year I reported Richard 
Nixon’s prediction that a California 
comeback victory would make Mr. 
Wilson, die front-runner for the *96 
Republican nomination — and that 
if he weremnmng-matcd with Gov- 
ernor Christie Whitman of New Jer- 
sey, the 'ticket would win. Visiting 
Washington last week, Pete Wilson 
invited me dvier to screw my head 
back cm properly. 

About thenativism charge: He is 
eager itbeunderstood.that he is not 
anti-immigrant, oob anti-illegal im- 
migrant. “One in four Califo rnians 
are legal immig rants," hie says, “and 
don’t need lectures on the contribu- 
tions of legal i mmi grants. In fact, 
they are the most vociferous critics 
cfillqgal immigration ... The issue 
is the rule of law.” 

OX, with a sizable portion of 
.^oting Latinos in favor of curbing 
Ihdr illegal competitors, let’s grant 
that most r of the proposition's sup- 
porters me neither natiyist nor rac- 
ists Stqgi^ -from. those who resent 

aHins^rants,l»aIand ac<sprcly 
came Wr.. Wflscrrs way’ tot it does 

not mean he shares their prejudices. 

About the privacy-intrusion 
charge, turning teachers into immi- 
gration agents: 'Teachers don’t en- 
roll students.” Mr. Wilson says, im- 
plying that it is only the 
administrators* job and not the 
teachers’ job. He says that school 
districts everywhere ask for proof of 
residence, and adds that all appli- 
cants to federal jobs must produce 
verifiable citizenship documents. 
(He’s against national ID cards.) 

Maybe be can bolster that defense 
187 in court with regulations 
against discrimination or intrusion in 
its enforcement. But no administra- 
tive amelioration is likely to alter the 
requirement that schools have reverse 
truant officers assigned to root out 
those sneaky little offspring of illegals 
trying to cop a freebie education — 
to which the Supreme Court has 
ruled that they are entitled. 

What is Mr. Wilson’s purpose in 
all this? To get budget-cutting 
Washington to reimburse California 
$2.5 bilEon a year for state services 
to the illegals? To get the Feds to 
stem the ode of invaders, many of 
whom sashay in as tourists? 

Yes to both, but more: “If it’s 
dear to you that you cannot be em- 
ployed, and that you and your fam- 
ily are ineligible for services, you 
wiH self-deport." 

I take the import of that to be: 
Make ’em so miserable that they 
leave the country. To which many 
law-abiding Americans, especially 
tax-burdened Californians, would 

r Let me offer a conciliatory hand 

Why Knock Conciliation 
If It Happens to Work? 

By William Raspberry 

W ASHINGTON — Some peo- 
ple used to argue that the best 

hope for saving the world was to pet 
more women into positions of politi- 
cal power. The thought was that 
women, being naturally inclined to 
cooperation and peacemaking, 
wouklbe less likely than men to lead 
us needlessly into war. 

I have not heard the argument 
recently. Maybe that is because war 
seems a less planet-threatening 
prospect since the demise of the So- 

launch a military invasion, but also 

as a result of the negotiations led by 

former President Jimmy Carter that 
had the effect of making the mva- 


vret Union. Maybe it is because the 

laybe it 

women who did rise to political 


Immigration and the Law 

I refer to the articles “Illegals Are 
the Bravest of All” by Richard Ro- 
driguez and “A Nasty Surprise in 
California" by Katie Leishman 
(Opinion, Nov. 17). Both criticize 
California’s Proposition 187. Both 
do a disservice to legal immigrants 
and the role of law. 

The scope of Proposition 187 is 

lawbreaker and deter the would-be 

Proposition 187 is not an attack on 
immigrants. America’s tradition is an 
immigrant tradition. America contin- 
ues to accept hundreds of thousands 
of legal immigrants every year. I rec- 
ognize that not everyone who applies 
for legal immigration to America win 

able, not by saying that French Cana- 

dians wanted to join English Canadi- 

be approved. However, that is no 

expressly limited to illegal immi- 

ay: Hooray! 

iezer Scrooge is my hero, too, 
but that neatly theoretical “econom- 
ic disincentive" won’t di an cent — 
because being miserable here 
doesn’t compare with the misery 
they fan aw ay from. 

Do we Americans really want to 
drive most illegal families deeper 
underground, many to lives of 
crime? Would we rather have 
300,000 children on the streets, 
learning costly delinquency — or 
safely in school, becoming potential 
citizens and taxpayers? 

Pete Wilson wants an immigration 
plank in the Republican platform. 
Fine; it should indude federal reim- 
bursement, amnesty, border control, 
but none of this creation of an unedu- 
cated, tmmedicaied underground. 

After our talk, I am prepared to 
withdraw the charge that 187 is driv- 
en primarily by natinsm. But in 
terms of practicality and of the 
American spirit, a government poh- 
_ any childto life miser- 
ns stilLaoi abomination. .. 

'.The' New York Timex. 

grants. It does not curtail the rights of 
legal immigrants to receive govern- 
ment services. It does not alter the 
number of legal immigrants to be 
admitted, or the process of their ad- 
mission. It does state that a person 
who, under U.&. law. is not entitled to 
be in America shall not receive most 
government-provided services (ex- 
cept medical emergency). 

Mr. Rodriguez attempts, perhaps 
disingenuously, to blur the differ- 
ence between legal and illegal immi- 
grants. He states: “All immigrants 
arc outlaws. Immigrants violate cus- 
tom, they assault convention." It 
may be true that immigrants are 
“outlaws" in the social sense of 
breaking with the traditions of the 
family, community or country from 
which they emigrate. However, that 
does not make an immigrant illegal. 
What makes an immigrant illegal is 
his or her failure to obtain the right 
to work and/or reside in the nation 
to which be or she has immig rated. 

Ms. I j’sahman laments that pas- 
sage of Proposition 187 is scaring 
illegal immigrants in California. 
Isn't- that. w*ar law enforcement is 
designed tb do — ' to frighten the 

justification for an applicant or 
would-be applicant entering or stay- 
ing, in America unlawfully. 

Mr. Rodriguez romanticizes the 
illegal immigrant as a “prophet” of 
a borderless world. Only tune will 
teQ whether the world win become 
borderless and if that will make it a 
better place. However, we do not 
need the passage of time to know 
that the world will not be a better 
place if it is encouraged to become 
more lawless. 

Hong Kong. 

Quebec’s Considerations 

Regarding “ Canada : Stop Humor- 
ing the Spoilers and Make the Coun- 

ans in a Canadian nation, but by 
claiming that independence was sim- 
ply not practicable. 

As the newspaper Le Courrier de 
St. Hyadnthe noted on Nov. 25, 
1864: “We will be on our own, and 
our obvious weakness would put us 
at the mercy of our stronger neigh- 
bor [to the south]." Quebeckers 
must, therefore, understand that 
“unless we hurry up and head with 
all sails set towards confederation, 
the current will carry us rapidly 
toward annexation." 

Quebec's weakness vis- vis the 
United States was underscored by a 
flood of emigration to the American 
republic. As French Canadians went 
in search of manufacturing jobs in 
New England, a union of Canadian 
provinces was seen as a means to 
speed up the economic development 
that would stem the mass migration. 

La Revue Canadienne warned in 
1865 that if Canadian provinces re- 
mained separate, their economies 
eventually would become dependent 

power — Indira Gandhi, Golds 
Mrir, Margaret Thatcher — were 
not noticeably less bellicose than the 
men who preceded and followed 
them. Or maybe it is that women 
have started acting more tike men — 
or, at any rate, think they should. 

You will remember (to old argu- 
ment. Little girls (perhaps harking 
bade to the days when women were 
keepers of home and hearth) play 
open-ended, cooperative games. Boys 
(responding to the hunter's necessity 
to capture and kill?) play games with 
dear-cut winners and losers. 

Out of tins combination of nature 
and nurture, the argument went, 
came cooperative, nurturing women 
and competitive, macho men. 

This sexual division, of course, 
was never absolute. Both man and 
woman harbor competitive as well 
as cooperative urges. But it may be 
fair to say that the culture that has 
always urged men toward the ag- 
gressive side is now doing the same 
with women. Cooperation and 
compromise have come to be seen 
as weakness, in women as in men. 

The women who command re- 
spect in the United States these 
days are the tough- talking take-no- 

prisoners types: Patricia Ireland, 
is Schlafly, Maxine Waters 

Phyllis Schlafly, 

try Whole" (Opinion, Nov. 2) by Mor- 
deem Richler: 

To understand why Quebec 
would not separate, consider why it 
agreed to join the confederation in 
(he first place. 

When the confederation was being 
debated in the 1860s, the nationalist 
Rouges urged Quebeckers to reject 
the scheme and opt for an indepen- 
dent country metrari Confederation- 
ists answered tins not by saying that 
Quebec’s independence was underir- 

on the powerful neighbor to the 
south. “We know | 

that where there is 
economic dependence there will also 
be political dependence,” it added. 

If the fear of American domina- 
tion was evident in the 1 9th century, 
it remains germane today. From 
their reluctance to endorse the sepa- 
ratist platform, despite electing the 
Parti Quebccois, the majority of 
Quebeckers seem to understand the 
danger lurking be hin d separation. 


Ottawa. - 

or Ann 

Are we Americans better off for 
this culture drift? I don’t think so. 
Look at Haiti: Its political ritua- 

! DOl 

tkm is relatively stable, its people 
Wy b 

are reasonably hopeful, its elected 
president is back in power, and 
America’s problem with Haitian ref- 
ugees is on the way to resolution. 
None of this means that democracy 
has been “restored” in that long- 
suffering place, but it does mean 
that Haiti now has a chance at polit- 
ical and economic salvation. 

And how did that chance come 
about? Partly, no doubt, as a result 
erf President Bill Clinton's threat to 

sion unnecessary. 

To many Americans, Mr. Car- 
ter’s conciliatory approach seemed 
weak. Not only did he refrain from 
branding Lieutenant General 
Raoul CMras and bis colleagues as 
thugs and savages, he expressed bis 
unhappiness, even shame, oyer as- 
pects of United States policy. It 
was not what you might call a ma- 
cho performance, but the result was 
the exodus of Haiti’s military dicta- 
tors and the return of its duly elect- 
ed president, without widespread 
bloodshed and without putting 
American troops in the role of a 
despised occupying army. 

Who won? Who cares? Mr. Car- 
ter played the game the way we 
used to think a woman might: with- 
out the necessity of clear-cut win- 
ners and losers. 

His (so far) successful approach 
stands out in my mind because it is 
so rare. The tendency these days is 
to define the problem in terms of an 
enemy and then to drive the enemy 
to the wall. Too many of us are 
busying ourselves searching out 
and identifying enemies to be 
brought down. 

On television — our present-day 
marketplace of ideas — political or 
ideological opponents are more con- 
cerned to defeat one another, to be- 
lieve that the roles require them to 
try to defeat one another, than to 
seek points of agreement that could 
move the society forward. 

This little boys* way of playing 
seems to have become everybody’s 
way of playing. Indeed, it seems ihe 
reasonable way to play the game — 
until it dawns on you that it doesn't 
work. The people who are open to 
cooperation and community build- 
ing are the ones who create positive 
change. We keep scouring the ter- 
rain for enemies, when what we 
need is to remind ourselves, as 
someone wittier than I put it, that 
the problem is the problem. 

Instead of tempting women and 
girls to the macho way of dealing, 
we need to teach men and boys the 
usefulness of cooperation and com- 
promise. Our tendency toward 
needless warfare, ineffectual and 
dangerous as foreign policy, is di- 
sastrous cm the domestic front. It 
thwarts the best efforts of those 
who would try to move us toward 
community. Isn’t it time to try 
a different game? 

The Washington Post.'" 

^ ^age 6 








P ; 


























Reform in Vietnam 
firings Pain to Many 

As Socialism Is Phased Out, 
The Poor Suffer More Keenly 

By Philip Shenon 

New York Tunes Service 

CAM LO, Vietnam — In the 
poorest part of the poorest part 
of the country, all the talk a bout 
Vietnam as Asia’s newest et»- 
nomic power is a distant whis- 

The rice farmers who tend 
the arid, gritty soil along Viet- 
nam's central coast say they are 
thankful their crops can fetch 
(higher prices in newly free mar- 
kets. But the land herein Quang 
[Tri Province is so unproductive 
that even when prices go up the 
impact for most farmers can be 
measured in pennies. 

Many fanning families in this 
province of 400,000 people earn 
less than $200 a year. And in 
some years, when the land is 
washed over by salt water that 
floods in from the South China 
there is no crop at alL 
“I have seen pictures of Ha- 
noi and the other big cities, and , 
I think they must be like para- 
dise, like a dream,” said Ho Thi 
Dong, a 40-year-old laborer, 
her sun- leathered face framed 
by a conical bamboo hat and a 
frayed yellow ribbon loosely 
tied around her neck. “But here 
in the country, I think life is 
more difficult than before. The 
vemment cannot help us like 

As the Vietnamese govern- 
ment abandons socialism to 
mak e way for the free market, 
the services that millions of 
Vietnamese had come to de- 
pend on under Communist rule 
are crumbling. 

In government schools across 
Vietnam, students are suddenly 
being asked to pay for their 
books and, in some cases, for 
classes. Those who cannot af- 
ford them are being pulled out 
of school by their parents. 

Vietnam’s health-care sys- 
tem. once fully financed by the 
government and considered a 
model for the developing world, 
is giving way to a private system 
that requires patients to pay for 
medicine and a doctor's care. 

For fanners, there is no long- 
er the promise that in years of 
flooding or drought the govern- 
ment will help them survive by 
providing seed and fertilizer. 

The loss of government ser- 
vices is one thing in a place like 
Hanoir the capital, or Bo Chi 
Mich City, the 'financial center. 

formerly known as Saigon. Un- 
der a free market and with bil- 
lions of dollars in new foreign 
investment, Vietnam's dries are 
booming, and most of this na- 
tion's city dwellers have never 
lived so wdl 

But Vietnam's new economic 
system means something else in 
a' place like Quang Tri Province, 
where the people are about as 
poor as any on earth, where few 
foreign investors come to visit 
and where the opportunities of 
Lhe free market can be swept 
away by flood or drought. 

The government began to cut 
off free services four years ago, 
directing some of the money to 
projects like roads and electric- 
ity lines. 

“It’s logical for people to pay 
something for medicine and 
education in a market econo-' 
my” said Do Due Dinh, a gov- 
ernment economist who is dep- 
uty editor of The Vietnam 
Economic Review. “In the cit- 
ies, this has been no problem. 
The problem is with the 10 per- 
cent of the population that still 
cannot afford these services.” 

In the scrublands of Quang 
Tri Province, Mrs. Dong, the 
laborer, surely falls into that 
second category. Abandoned 
years ago by her husband, Mrs. 
Dong supports two children on 
an income of about $12 a 
month, typical in the province. 

One recent morning, she was 
being paid by the local forestry 
department to lug two heavy 
baskets full of tree seedlings, 
the baskets tied to either end of 
a bamboo stick that dug deep 
into her shoulder as she walked. 

Mrs. Dong lifted the pole 
from her shoulder and sat down 
Lo rest. She gently rubbed her 
stomach, which has troubled 
her for years. “Sometimes I 
don’t eat," she said. “I have 
trouble keeping food down. In 
the old system, I could go to the 
doctor and get the stomach 
medicine for free. Now, I must 
pay for the medicine myself." 

Because of the Alness, Mrs. 
Dong's life has been reduced to 
a month- by-month calculation; 
Can she find the $2 to buy 
stomach medicine and an extra 
$2 for vitamin tonic for her ail- 
ing 6-year-old daughter? 

.“Sometimes I cannot afford 
the medicine for either of us,” 
Mrs. Dong said. 

Armed Backers 

jL 3LJL _ | 

To Show He Will Keep Control 

Dcwodn M Afccnee Fraud.'- Pri** 

Prime Minister Girija Prasad Koirala of Nepal calling Monday for his party to step down. 

Ruling Party Gaining in Nepal Vote 


KATMANDU, Nepal — 
The ruling Nepali Congress 
Party on Monday staged a late 
comeback in general elections, 
cutting heavily into Lhe Com- 
munists’ lead and throwing the 
Himalayan kingdom into politi- 
cal confusion. 

' “It is not a stable situation 
and it is unclear and uncertain," 
said Lok Raj Baral a professor 
at a university in Katmandu. 

Prime Minister Girija Prasad 
Koirala said his Congress Party 
should step down from power 
and urged foreign aid donors to 
continue providing Nepal a fi- 
nancial lifeline even if the Com- 
munists formed the next gov- 

The Congress Party, which 
had lagged behind the Commu- 
nist Party by as many as two 
dozen seats in early returns 
from last Tuesday’s par li amen- 

Beijing’s Take-Out Order: 
Busy McDonald’s Must Go 

The Associated Press 

BEIJING — Breaking a promise to allow a U.S. fast-food 
chain 20 years on Beijing's choicest street corner, the city 
government said Monday that McDonald's must take down 
its golden arches lo make way for a commercial complex. 

McDonald’s contends that it has a legal right to stay. 

The outlet, two blocks from Tiananmen Square, opened in 
1992 and is profitable. But the area is destined to become a 
commercial, office and residential complex planned by a 
Hong Kong developer. 

The city's decision to break the land-use agreement is likely 
to shake the confidence of other foreign companies that have 
invested heavily in businesses on the premise that their land- 
use contracts would remain valid for several decades. 

tary polls, narrowed their rivals' 
lead to six. with six races yet to 
be decided. With results report- 
ed in 199 constituencies, the 
Communist Party of Nepal 
Unified Mandst-Leninisl had 
86 seats to Congress' SO. 

The Communists still looked 
likely lo win a thin plurality, 
but it was unclear if they would 
find a coalition partner to give 
them a working majority of at 
least 103. 


NATO Hits Base 

Continued from Page 1 
Bosnian Muslims. The move 
has been criticized by France. 
Britain and Spain. 

But the risks of the bombing 
are high. The raid did nothing 
in itself to alleviate the encircle- 
ment by the Serbs of the Bihac 
area, which remains acutely 
vulnerable and short of food. In 
addition, there are more than 
10,000 UN personnel working 
in the Serbian-held parts of 
Croatia, and all are now poten- 
tial targets for reprisals. 

Milan Manic, the leader of 
-the Serbs who have occupied 
; dose to a third of Croatia since 
they went to war in 1991 to 
resist being part of an indepen- 
dent Croatia, issued a defiant 

“Bombing of the Udbina air- 
field is an insolent and vanda- 
lous act, which we have not pro- 
voked at all,” he said. 

Y as us hi Akashi. the top UN 
official in the former Yugosla- 
via, said that he spoke Monday 
to Mr. Manic and tried to ex- 
plain that the raid was a “neces- 
sary and proportionate re- 
sponse” to the Serbian attacks 
on the Bihac area. 

But Mr. Akashi added that 
“it was implicit in my remarks 
that force could be used again” 
if the Croatian Serbs did not 
cease their active suppon for 
attacks on Bihac. 

In general. Western officials 
were at pains to play down the 
scope of a very substantial raid, 
saying that only runways, anti- 
aircraft artillery and surface-to- 
air missiles had been destroyed. 

By Clyde Haberman 

New York Tunes Service 

GAZA — Yasser Arafat 
summoned thousands of his 
loyalists into Gaza's streets on 
Monday to deliver a blunt mes- 
sage to Palestinians that be has 
political control and intends to 
keep it. 

To drive that point home, 
hundreds of young men came 
heavily armed to a rally orga- 
nized by Mr. Arafat's El Fatah 
organization, some firing auto- 
matic rifles in the air and warn- 
ing rival Islamic militants that, 
if challenged, they were ready 
to fight. 

Heartened by the support, 
however orchestrated, Mr. Ara- 
fat called it a referendum in 
favor of his self-rule govern- 
ment and its peace talks with 

But the display of strength 
also showed that the governing 
Palestinian Authority and its 
Islamic opponents in the Gaza 
Strip are still far from reconcili- 
ation after the battles on Friday 
between Mr. Arafat’s police 
and street protesters that left 14 
people dead and about 200 oth- 
ers wounded. The known death 
toll rose by one on Monday. 

An uneasy truce continued to 
held, but die two sides were 
stalemated in negotiations 
aimed at putting the violence 
behind them and backing away 
from Lhe precipice of all-out 
civil strife. 

If anything, the rally on 
Monday under lined how turbu- 
lent Gaza is awash in guns — 
among all factions — with the 
police having done almost 
nothing in their six months of 
power to carry out promises to 
confiscate weapons. The situa- 
tion is potentially explosive, of- 
ficials acknowledged. 

Leaders of the main Islamic 
group, llamas, said their forces 
would not shoot at fellow Pales- 
tinians. But at the some time the 
Hamas military wing, the Qas- 
sam Brigades, warned that it 
would take revenge against offi- 
cials of the Palestinian Author- 
ity for the disorders on Friday, 
which they called a police mas- 

Id turn, many of the estimat- 
ed 10.000 .Arafat supporters 
who turned cut Monday and 
marched through Gaza City's 
streets held rifles aloft and 
shouted. “Whoever wrongs Fa- 
tah, Fatah will open his head!” 

Attempts at peacemaking 
were directed by political lead- 
era of Arabs with Israeli citizen- 
ship. and they reported success 
after all-night mediation. The 
claim turned out" to be prema- 
ture, however. 

A spokesman for Mr. Arafat, 
Nabil Abu Irdeina, stud the Pal- 
estinian Authority did not feel 
it had to negotiate with anyone, 
preferring to leave that task to 
Fatah members. 

Sayed Abu Musameh, a se- 
nior Hamas figure, said his or- 
ganization still demanded that 
the authority admit it was re- 
sponsible for the k illing s, at 
least until an official inquiry 
panel, formed Monday, issues 
frsfin dings. 

But Mr. Arafat refuses to ac- 
cept blame. He repeated, his 
contention that a shadowy con- 
spiracy lay behind the unrest, 
that his police were fired on 
first at a mosque during Friday 
noon prayers, instead of the 
other way around as Hamas 
charges, and that rioters and 
looters were egged on by out- 
side instigators. 

On Sunday night, Mr. Arafat 
met at his seaside headquarters 
with about 100 Palestinians 

from Jerusalem, and, according 
to people who were there, held 
up X-ravs said to have been 
taken of several victims. His se- 
nior health official. Dr. Riad 
Zanoun, pointed to wounds 
(hat he said had been made by 
plastic bullets and explosive 
bullets known as dumdums, 
which expand on impact with 
devastating effect. 

“Who has dumdums?” Mr. 
Arafat asked. “Who has plastic 

bullets?" , . _ . 

“Israel,” people in the crowd 

Mr. Arafat himse lf, however, 
stopped short of saying that fa- 
rad was behind the violence. 

On Monday, addressing his 
followers in his first public ap- 
pearance away from his head- 
quarters since Friday, Mr. Ara- 
rat picked up the conspiracy 
theme again, referring to “con- 
spirators who get orders from 
abroad." That is often a 
catchphrase for Iran, although 
El Fatah said on Sunday, that 
unrest may also have been fo- 
mented by Syria or Jordan. 

Many Gazans, having seen# 
the Palestinian police fixe freely 
Friday, are skeptical about the- 
ories of an outside conspiracy. 


Peace Efforts No Fraud, 
Clinton and Rabin Say 

New York Tunes Service 

Minister Yitzhak Rabin of Isra- 
el went to the White House on 
Monday and came away with 
firm presidential commitments 
for almost everything he want- 
ed; generous foreign aid; fur- 
ther military assistance; the 
prospect American forces in the 
Golan Heights should Israel 
and Syria make peace. 

But even President Bill Clin- 
ton's firmest commitment is 
shakier these days, as less 
friendly Repnblicans assume 
control of the foreign-aid purse 
strings in Congress. 

And so. the ritual exchange 
of praise Monday was followed 
by something new: a joint de- 
fense of the Middle East peace 
process, which the incoming 
chairman of the Sena te Foreign 
Relations Committee, Jesse 
Helms of North Carolina, calls 
a “fraud." 

“The prime minis ter has al- 
ready said the process is not a 
fraud; it’s been quite success- 
ful" Mr. Clinton said. “It’s 
been the most successful pro- 
cess since Israel became a na- 

At least one faction of Re- 
publicans that is drafting a plan 
to balance the federal budget 
proposes cutting aid to both Is- 
rael and Egypt by $1.1 billion 
over the next fiveyears. 

Monday, Mr. Ctinion fended 
off a barrage of questions about 
Mr. Helms, who says he op- 
poses placing American troops 
on the Golan Heights because 
he does not trust Syria to live up 
to any peace accord. 

Mr. Rabin obliquely criti- 
cized Mr. Helms on arriving in 
Washington, when he accused 
Israeli hard-liners who oppose a 
Syrian peace of lobbying unf . 
named American senators on 
behalf of their cause. 




SE: Real Target Should Be Ground Forte f £ 

Continued Iran Page 1 

the absurdity of the entire Unit- 
ed Nations mission.” he said. 

“All we ask from the United 
Natioos and NATO is protect 
our borders.” Mr. Silajdzic said. 
“The Serbs are attacking across 
the Croatian border from a 
United Nations protected area. 
Their tanks are effectively en- 
joying United Nations protec- 
tion while Bosnia still has an 
arms embargo imposed on iL 
This is completely absurd.” 

The United Nations has 
maintained an arms embargo 
on Bosnia for more than three 
years even though the country 
became a UN member in 1992 
and UN resolutions have con- 
demned the Bosnian Serbs, who 
are armed by Yugoslavia’s 
army, for aggression. 

“Serb tanks are attacking Bi- 
hac even today, and their artil- 
lery is even today attacking 
from inside Croatia.” Mr. 'Si- 
lajdzic said, referring to lank 

forays south and west of the 
Bihac safe area and the shelling 
of the besieged northern town 
of VeHka Kladusa, where at 
least 10 shells damaged build- 
ings inside a compound housing 
ill-equipped Bangladeshi peace- 

The UN official said UN mil- 
itary commanders aLan internal 
briefing here Monday morning 
interpreted the shelling attack 
on the Bangladeshi peacekeep- 
ers' compound as a warning 

“It was a message, ‘You’re to 
stay where you are and you'll be 
fine,’ ” the official said, adding 
that the Bangladeshis caught in 
the Bihac enclave have about 
one weapon for every four sol- 
diers and lack medicine and 

At Monday morning’s inter- 
nal UN briefing UN military 
anatysts said they expected the 
Bosnian Serbs and rebel Mus- 
lims fighting in their ranks to 
try to cut the Bihac enclave into 
three pieces and bottle up the 

Bosnian Army’s 5th Corps in- 
side the Bihac safe area, the 
official said. 

There was no talk of NATO 
air strikes to stop the ground 
and or artillery attacks on the 
Bihac area, he added. 

On Monday, the Bosnia Ser- 
bian forces took Zavalje, a vil- 
lage on the southwestern edge 
of the Bihac safe area, Mr. Si- 
lajdzic said. “They burned it 
down with artillery from the 
hills, then they overran it.” 

A UN spokesman said Bosni- 
an Serbian forces advancing 
from the west and the south bad 
almost cut off the town of Bihac 
from the bulk of the Bihac en- 
clave to the north. 

In Sarajevo, two people were 
wounded Monday when a anti- 
tank missile hit Bosnia's presi- 
dency and another missile hit 
city hall UN officials said the 
missiles were fired from a Serbi- 
an-held area just outside the Sa- 
rajevo siege line. 

WASTE; Moscow’s Re velation of a Deep Nuclear Secret Triggers Debate 

Continued tram Page I 
a long way from understanding 
that. We're dealing with a long- 
term situation.” 

But others say the injections 
could be one of the deadliest 
assaults ever on the environ- 

“Far and away, this is the 
largest and most careless nucle- 
ar practice that the human race 
has ever suffered,” said Dr. 
Henry W. Kendall, a Nobel lau- 
reate in physics at the Massa- 
chusetts Institute of Technol- 
ogy, who learned of the 
Injections while advising (he 
federal government. “It's just 

an enormous scale of irrespon- 

Repeated efforts lo reach Ni- 
kolai N. Yegor ov, a high official 
of the Russian Ministry of 
Atomic Energy and leader of 
the delegation that made the 
disclosure, were unsuccessful. 

The Russian experts say they 
began injecting the waste as "a 
way to avoid the kind of sur- 
face-storage disasters that be- 
gan to plague them in the 1950s. 
But by any measure, the injec- 
tions were one of Lhe Cold 
War’s darkest secrets. 

Moscow said nothing of large 
injections and dissembled pub- 

licly by claiming to stand by 
accepted standards for radioac- 
tive waste disposal. Moreover, 
the injections are yet another 
environmental black mark 
against Moscow. 

The three sites are at Dim!- 
trovgrad near the Volga River. 
Tomsk near the Ob River, and 
Krasnoyarsk on the Yenisei 
River. The Volga flows into the 
Caspian Sea and the Ob and 
Yenisei into the Arctic Ocean. 

The amount of radioactivity 
injected by the Russians is up to 
3 billion curies. By comparison, 
the accident at the Chernobyl 
nuclear power plant in Ukraine 

released about 50 million curies *2 
of radiation, mostly in short- 
lived isotopes that decayed in a 
few months. The accident at 
Three Mile Island in Pennsylva- 
nia discharged about 50 curies. 

A curie is the amount of radi- 
ation given off by one gram of 
radium and, in any nuclear ma- 
terial is eoual to the disintegra- 
tion of 37 billion atoms per sec- 

The injected wastes include 
cesium-137, with a half-life of 
30 years, and strontium-90, 
with a half-life of 28 years and a 
bad reputation because it binds 
readily with human bones. 

ITALY: Berlusconi Set Back in Election, but Post-Fascist Allies Do Well 

Coa tinned from Page 1 

and calls Itself posl-Facist, was getting 
about 13 percent. 

The ballot for mayors and local councils 
in 242 cities and towns involved just more 
than 5 percent of Italy's 47 million voters. 

But in a political atmosphere marked by 
widespread labor protests over Mr. Berlus- 
coni’s plans to reduce the budget deficit 
and widespread disarray within his three- 
party Freedom Alliance coalition, die elec- 
tion has been cast as an oracle. 

Members of all three government par- 
ties have said the time may be coming to 
re-evaluate their improbable alliance. 

In broad terms, Mr. Berlusconi and his 
allies — the post-Fascist National Alli- 
ance, led by Gianfranco Fini and the 
federalist Northern League, led by Umber- 
to Boss! — faced candidates from ihe 
Democratic Party of the Left. Some leftists 
had formed alliances with centrists in the 
Popular Party, the successor to the Chris- 
tian Democrats. 

The contest, particularly in the north. 

was also seen as a test of strength between 
Mr. Bossi and those in the governing coali- 
tion who have portrayed his movement as 
a spent force. 

However, the Northern League man- 
aged to hold its own. Mr. Bossi warned 
that “the government must change its 
spots” and that Mr. Berlusconi must listen 
to the ^ague’s demands for federalism 
and anti- trust legislation. 

Mr. Fini said the results made a review 
of the coalition necessary and that the 
government parties must pull together. 

“This result means we need a serious 
review.’ of the coalition in order lo under- 
stand each other’s views." Mr. Fini said 
“But the only way ahead is for the Free- 
dom Alliance parties to stick together, in- 
cluding the League.” 

RAJ slate television broadcast projec- 
tions by the Abacus polling group only for 
the provincial capitals being contested: 
Sondrio, Brescia, Treviso, Pisa, Massa, Pe- 
scara and Brindisi. 

No candidate was projected to win 
enough voles to avoid a run-off election on 

Dec. 4, although the returns indicated a 
leftist-backed candidate could win out- 
;jright in Pisa. 

The Democratic Party of the Left was 
the top percentage winner in Brescia, Mas- 
sa and Pisa. 

Cesar e Previti, Forza Italia's coordina- 
tor and the defense minister, acknowl- 
edged the parry’s setback. “We weren't in 
competition,” be said. 

But Forza Italia also tried to limi t the 
damage by stressing the local nature of the 
the elections. Antonio Tajani, a party 
spokesman, said, “We are paying the price 
of an unpopular budget that perhaps has pf 
not been presented to the pubtic as well as 
it could have been." 

The Chamber of Deputies gave final 
approval on Monday to the government's 
draft budget, including the bulk of its 
controversial austerity package, on -a vote 
of 223 to 159. The budget must now be 
approved by the Senate, where Mr. Berlus- 
coni’s coalition is short of an overall ma- 


(AP, NTT, Reuters) 



International Herald Tribune 
Tuesday, November 22, 1994 
Page 7 

J ust a Handful of Art 

BySuzy Menkes 

International Herald Tribune 

ing, may be shaped as ao egg, an 
blossom or homely tomato 

N EW YORK — When Hillary Clinton 
visited Paris last summer , she tucked 
Socks — the family cat — under her 
arm. However, the feline pressing 
again st the first lady’s tuxedo was made of sooty 
black rhinestones with crystal for the famous 
white feet. The tiny evening bag — its nfficiat 
name is a minaucu&re — was _ 
made by Judith Leiber, the " 

Hungarian-born designer A A Tow Ynrlr 
whose purses are the high-sod- , VC ^ f 7 * 
ety totem for those needing to SHOW Celebrates 30 
ilatmum credit card, a 

cany a platmum credit card, a rr .. 

$100 Ml and a (small) lipstick. VCSTS Or Leiber S 
Ldber’s whimsical works of J L . . » 7 

art — miniature jewel-encrusted WhimSlCdl WOrk. 

pones with distinctive silhoa- 

cttcs and decoration — are on 
show at New York’s Fashi on Institute cf Tedmol- 
ogy. “The Artful Handbag" (until Feb. 2) cele- 
brates 30 years of style you can dutch in the palm 
of your hand. 

“I am thrilled about the exhibition — and if 
people feel that they could take them out of the 
leases and wear thorn now — that's thrilling ,** 
says Leiber, whose clients include the socialites 
Ann Bass, Pat Buckley and Ivans Tramp, the 
opera singer Beverly Sffls and Baibara Bush, who 
carries Mniie, modeled oo her springer spanieL 
Leiber, destined to be a chemist when Hitler’s 
invasion began in 1939,' mstead learned to make 
purses and met G£ Gerson Leiber, who became 
her husband in 1945 and is now ah artist. They 
started the handbag business in Manhattan in 

This study woman of strong character makes 
deficafe, witty bags: a succulent slice of water- 
melon; a horse with a hide like a woven kilim; a 
plump, childish teddy bear, a gift-wrapped box 
with gilt-plated ribbon, a pile of books. The basic 
brass forms, later given the magic dust of bead- 

. ww lant exotic 

lotus blossom or homely tomato that might have 
been plucked from the garden of the Ldbers* 
East Hampton home. 

Although the minaudi&res cost from $1,000 to 
$7,000, avid customers become collectors and 

“But when people put them on coffee tables, 1 
fed that is wrong,” says Leiber. “They should 
put a beautiful sculpture!" 

She herself collects antique 

bags, admiring especially the 
An Deco period and late Ed- 
wardian creations inset with 

The idea of a bag too small 
for anything but the bore neces- 
sities seems something of a peri- 
od piece. But even before Leiber 

sold the company to the British 

watchmaker Time Products in 
1993, half the production was in practical day 
bags, with alligator skin her signature. One capa- 
cious verson even has a compartment for a 
portable telephone. 

In the workrooms around the corner from the 
Empire State Building, the focus is oa minau- 
diferes. Each metal shape is painted by hand or 
stenciled to a design that is then stuck oo bead- 
by-bead, held in tweezers dipped in glue. 

“Some of them are understated, some are jazzy 
and some are very ample — proportion is what it 
is all about." says Leiber. “The requirements of a 
bag are less limited than many clothes in fashion.” 

But with everything from a Buddha to a baby to 
a butterfly already made, what could Leiber do 

“My husband and J both have a lot of whimsy.” 
she says. “I started doing flowers and very femi- 
nine things. Then I did die mosaic egg inspired by 
Faberg& eggs at Windsor. There are animals, fruit, 
watermelons — even a penguin for a dear friend 
married to an arctic explorer. Next? I'm going to 
do a coiled stake — even if it is impossible!” 

John khKL.« T.iUrf ktl-'l EA«ip Milt Af'iLlju-xit l hrmopfcei Moot i Label I 

Clockwise from top left: " Beckoning Cat," 1994: Hillary Clinton with Socks 
handbag: designer Judith Leiber. and “Sleeping Cat," 1984. 



By Robert Bynie 

V aleri salov beat l^os 

Portisch in Round 3 in the 
Inteipdis Tournament 
The Semi-Slav Defense looks 
toward such complex and un- 
clear adventures as arise from 
the Meran Variation with 5 e3 
Nbd7 6 Bd3 dc 7 Bc4 b5 8 Bd3 
a6 9e4c5 10 d5. But While can 
insist oo initiating the action 
with the Anti-Meran Gambit 5 
Bg5!? t which Salov chooses in 
tmq game. White invites Black 
to enter into 5...dc 6 e4 b5 7 e5 
h6 8 Bb4 g5 9 Ng5 hg 10 Bg5 
Bb7 11 ef. creating one of the 
most warlike conflicts in chess. 
Portisch begged off with 5-.b6 6 
Bf6 Qf6, whereby Black gets the 
bishop-oatr but falls behind in 

The recapture with 6_Qfo 
hd not constitute a genuine 
jam of a tempo: the black 
)neen was exposed on f6 and it 
was wise to retrieve it with 

5 ~]8ter 12 Oc2, Portisch ngect- 
;d the opening of the position 
with l£dcI3 Bc4 b5 14 Ba2 

Portisch’s I3..i5 was correct 
>ut after 14 Ne2, he chose the 
cumbersome and time-wasting 
l4...Bf6 15 Qc3 a5 16 b4 a4 17 
Sie5 Qc7 18 f4 Bd8. 

Salov took advantage of this 
jo attack with 19 g4! 

After 21...Ne4 22 Be4 fe, 
Slack did indeed obtain the 
?ishop-pair, but the knights 
were superior in the closed post- 

ion that existed. . 

On 25 g5L Porusch desper- 

itdy tried to keep the kings 
wing as buttoned up as possible 
with 25-Ji5. But Salov cut off 
the h pawn with 26 g61 and 
loomed the defense. 

First Salov brought fusroofc 
to attack position with 27 Kga 


Post (too after J». . . ICeB 

and 30 Rlg4. After 30„.Rf5, be 
offered rook for bishop with 31 
Qb4!, all set for the annihilating 
31— Bg5 32 Rg5 Rg5 33 Qh7 
Kf8 34 fg Ke7 35 Nf4! Qb8 36 
Qg7 Kd8 37 Qf8 Qc8 38 g7. 
Portisch declined with 

31.. .Bf6. but after 32 Qb7 Kf8 
33 Rf5 ef 34 Rg5». Salov 
pressed it on him once a g a i n . 
Portisch, of course, refused. 

He tried to hang in there with 

36.. .Qb7 37 Nf5Br5 38 Rf5 Ra8 
39 Qh7 Ke6, but Salov struck 
with 40 Rf6! Kf6 41 Ng4 Ke6 
42 f5! Since 42_Kf5 43 Qh5 
Ke6 44 Qe5Kd7 45 Qg7Kc8 46 
Qf8 Kc7 47 g7 is hopeless for 
Black, Portisch gave up. 



2 C4 

3 NcS 

4 NI 3 

6 Bffi 

7 c 3 
H Bd3 
io art 
n u 


13 c 5 

14 Nc2 
I 5 Qc 3 

16 bi - 

17 NcS 

15 N . 
J9 *4 

20 ft 

21 Kh2 









22 Bt* 

23 Rgl 
25 Bh 
27 _ 


20 Reg] 

30 Rlg 4 

31 OU 

32 Qti7 
34 RgS 
38 N*3 

M RI5 
30 QW 

40 Rffi 

41 NJH 

42 (5 







rks aie 

Oft Qc!» 
Real Rn7 











Ne 4 













DERS: Rereading the Hem- 
ingway Text 

By Nancy R. Com/ey and Robert 
Scholes. Illustrated. 154 pages. 
$23. Yale University Press. 

Reviewed by Christopher 

F OR some years now and in 
several recent biographies, 
evidence has been gathering 
that Ernest Hemingway was 
not, after all, the avatar of 
monolithic masculinity that he 
was once so universally as- 
sumed to be. 

Now in “Hemingway's Gen- 
ders: Rereading the Hemingway 
Text" — a surprisingly succinct 
and jargon-free essay despite its 
deconstructionist subtitle — 
Nancy R. Comley and Robert 
Scholes explore more deeply 
how Hemingway really dealt 
with issues of sexual ideality in 
his published and unpublished 
writing. By “gender” the authors 
say they mean “a system of sexu- 
al differentiation that is partly 
biological and partly cultural” 
and that extends to “sexual prac- 
tice as wdL” 

Taking Hemingway's mascu- 
line code name, Papa, as a start- 
ing point, Comley and Scholes, 
make the witty if somewhat pe- 
dantic point that the repeated 
morpheme "pa” has other 
meanings significant to Hem- 
ingway's art In ancient Greek, 
it is an expression of pain, "pi 
alpha," being the cry of the 
wounded Philocteies in Sopho- 
cles' play, “Philocteies." In Mo- 
zart’s “Magic Flute” it is a song 
of boastful fecundity, with “Pa- 
pa-pa-pa-pa-pa" being part of a 
duet sung by Fapageno and his 


• VeohJee, a fashion designer 
in New York, is reading "Han- 
nibaL" a biography by Ernie 

“Hannibal was the master of 
strategy, and when be had to 
fight he always tried to choose 
the battlefield and time himself. 
It's something, I can apply to the 
battleground of Fashion Ave- 
nue here in New York.” 

( John Bnmton. IHT ) 

mate, Papagena, about their fu- 
ture procreative activities. In 
the comic opera “Der Rosenka- 
valier," by Richard Strauss and 
Hugo von Hofmannsthal, it is 
an accusation of false paternity. 
“Papa! Papa! Papa!,’* being the 
words uttered by a group of 
children falsely accusing Baron 
Ochs of having fathered them 
out of wedlock. 

Following what the authors 
admit are “these extravagant 
lures," they find in Heming- 
way’s works “clues to the an- 
guish and uncertainty con- 
cealed beneath the blunt facade 
of Papa Hemingway" Due is 
that for Hemingway the chal- 
lenge was to grow up without 
becoming his own father, Clar- 
ence, and thereby running afoul 
of his emasculating mother, 
Grace Hall. Bui this did not 
trap him in a haired of his 
mother. Hemingway resists re- 
ductive interpretation, Comley 
and Scholes insist. His aesthetic 
problem was always to elabo- 
rate the limited images of wom- 
en that growing up m his moth- 
er’s culture left him with. 

This he did most significantly 
by taking the “rich bitch" of 

stories like “The Short Happy 
life of Francis Macomber” and 
“The Snows of Kilimanjaro” 
and further masculinizing them 
into a character like Catherine 
Bourne in the posthumously 
published novel “The Garden of 
Eden." Here, in an exploration 
of transsexuality far more overt 
in the original manuscript than 
in the sanitized Scribner's ver- 
sion, Hemingway “has posi- 
tioned his surrogate, David 
Bourne, in an intolerable double 
bind: the source of his creativity 
lies in what for him is the forbid- 
den territory of die feminine” 

This bind, the authors sug- 
gest, agitated Hemingway 
throughout his creative career 
and accounts for the dreamlike 
quality of ins late fiction, in 
which his characters almost lit- 
erally cross over into a world 
that is so ciall y unacceptable. 

Are Cbrnley and Scholes try- 
ing to prove that Hemingway 
was unconsciously homosexual, 
as a crude reading of “Heming- 
way’s Genders" might lead a 
reader to suspect? “No." the au- 
thors respond after posing the 
question. “What we have been 
trying to show is that Heming- 

way was much more interested 
in these matters than has usually 
been supposed, and much more 
sensitive and complex in his con- 
sideration of them.” 

The results are richly reward- 
ing. Whatever else the authors 
accomplish, they force one to 
see new subtleties in stones 
read dozens of times before, 
particularly the layers of mean- 
ing that Hemingway can pack 
into a simple metaphor or even 
a single word, or the way, as the 
authors put it, “the Hemingway 
Text often extends beyond the 
words on the page and requires 
the active participation of a 
reader who is not afraid to ex- 
trapolate from hints." 

Even if they don’t leave you 
with a handy thesis with which 
to pry open Hemingway's works, 
they certainly convince you of 
their belief that their subject “re- 
mains an interesting writer be- 
cause it is possible to read him in 
more than one way ” 

Christopher Lehmann-ti aupt 

is on the staff of The New York 



In Paris 


8, rue de Sevres, 

Paris 8th 


Drawing of Daisy Fellowes, in “The Power of Style.” 

Lives and J ewels 
Of Icons of Style 

International Herrdd Tribune 

N EW YORK — Styte is tike pornography — we know 
it when we see it That is a brutal image cm which to 
hang a book about icons of style — 10 women who 
“defined the art of tiring wdL” But the lesson to be 
teamed from “The Power of Style,” by Annette Tapezt and 
Diana Fdinne (Crown Publishers, New York), is mat it is 
brutally tough at the top of the Best Dressed List and as the 
hostess with the most social clout. (Else de Wolfe succeeded by 
spending on the decor but skimping on the food, writing guests' 
names in gold leaf, blit obliging them to eat before her dimes.) 

Mona Harrison, the daughter of a Kentucky borae trader, got 
started on the high life by trading in her baby son for divorce 
and half a million dollars. Five husbands later, surrounded by 
gorgeous jewds and grandiose gardens, her plan to »»nmn i mitre 
her name in an arts foundation was scuppered by the aban- 
doned son. who sued for half her estate. Sac was, dahned the 
homosexual Count Bismarck, whom she married far a tide, “a 
perfectly no rmal, nice, warm-hearted human being.” 

And so, no doubt, were they all. Millicent Rogers bravely 
“endured three faded marriages,” but although die couldn’t 
hy p a husband, she collected a Charles James wardrobe 
When the couturier complained about an order for four dozen 
identical blouses, die maid replied, “Not a hoarder, Mr. 
James, a collector.” 

Daisy Fellowes, spotting a quartet of pretty children's dresses 
in a Paris park, asked “Whose lovely children are those?” 
“Yours, madame,” the nurse replied 
Many of the stories seem apocryphal, and in the absence of 
any quoted source, dubious. The authors repeat the old 
(unproven) claims that the Duchess of Windsor used sexual 
tricks learned in China. (They also repeat the story that 
Jacqueline Kennedy was wearing a real Chanel suit when her 
husband was assassinated, although else where make tart 
comments about couture copies she dared to wear in Paris.) 

The most fascinating thing about these women is the 
seriousness with which they took their trivial pursuits. Al- 
though a few of than worked as style gurus — notably Coco 
Chanel as couturier and Diana Vreeland as m a g azin e editor 
— even Vreeland is lauded for her “passiona t e exploration of 
attractive surfaces” The “Why Don’t You?” column for 
which she was famed seems as ridiculous as de Wolfe's boos 
mots, “It’s beige! My color!” on seeing the Parthenon. 

The pictures posed by some of the century’s greatest poe- 
euses. provide fascinating commentary to the text. Presented 
with hand-written captions, they have the intimacy and au- 
thenticity of diaries. 

The brightest and best are the snatched paparazzi photos of 
Jacqueline Kennedy Onassis, who never played to the camera 
and who proves that true style can come without artifice. 

Suzy Menkes 




■ Monday 

international Conferences and Seminars 

■ Tuesday 
Education Directory 

■ Wednesday 

Business Message Center 

■ Thursday 

International Recruitment 

I Friday 

Real Estate Marketplace, HoBdays and Travel 
I Saturday 
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Plus over 300 headings in International Classified 
Monday through Saturday 

For further information, contact PhUip Om in Paris: 
Tel: (33-1)483794 74 - Fax (33-1)463752 12 


















The Regent Bangkok, Thailand - December 7-S, 1994 

An imemaiiona) environ mem forum, designed to promote dialogue between For further information please contact : 

government ministers, leaders oi business and industry and leading environmentalists Vivien Peters, Asia-Pacific Conference Office, 

worldwide, wiih a view in harmonising economic growth and susiainable International Herald Tribune Hong Kong 

development Tel: (852) 0222 1 163 Fax:(852)92221190 

TMmd £**Wwmkm luMK (TQ1 

Page 8 



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^TSem^onaS'iilSte'w '2JJJ Stock lndex ©. composed of 

countries, compiled 


■ AsiaiFacific 


Ahwjx. waghSng; 32% 

Ctosa 124.13 Prev.: 124.94 


Approx weighting: 37% 

Close: 115.64 Prev. 115.72 

J J A S o N 



| North America 

Laho Americar 

Approx, weighfing: 26% 
Close: 9603 Prevj 98J1 

Approx HWEfUmg: S% 

Close: 127.72 Prev.: 13 U1 



!Kv.7vx, ta>/***. •!?■'. .. ,.vj >■.»••' ,~. - 
■S. ./>*.~-.rf..\._< •■■•: .V>^..V.. ■■■:.. *•> 

J J A S O N 

Tha Mm tracks US. eMv vbAjek of stocks Ik Tokyo, Now York, London, and 
Argentina, Australia, Austria, Belgium, Brazil, Canada, ChBa, Demos*. Finland, 
Franca, Gammy, Hang Kong, Italy, Mexico, Netherlands, New Zeeland, Norway, 
Singapore, Spain, Sweden, Switzerland and Venezuela. For Tokyo, New York and 
London, tha Index Is composed ot foe 20 top Issues in terms of marks! capita&sabon. 
otherwise the tan top stocks am tracked. 

Industrial Sectors 

Ben. Fran, % Hen. Pm. % 

daw oaee cfga . Paw do— chanpt 

Bway 113.18 112-38 +0.19 Capflat Goods 115J30 114J2 +0.42 

WWm 125,33 126-56 -037 RwMafrMs 130 JO 131.71 -1.92 

France .H21B 1W-H44 Ccnaaner Goods 1Q4.69 105.08 -037 

Sendees 115.30 116-04 -064 Itece to eoM 121.09 121-85 -0J2 

Far more information about the Index, a booklet Is available fme of charge. 

Write to Trib Index, 181 Avenue Charles de GauSe, 92521 Nattily Cedex, Fiance. 

<D tntarna ft onal Herald Tribune 

International Herald Tribune, Tuesday, November 22, 1994 

A Painful Re-entry to South Africa 

Pepsi Factory Is Swamped With Angry Job-Seekers 

By Paul Taylor 

tt'osfangrfln Post Service 

GERMLSTON, South Africa — Pepsi- 
Cola and its blade-owned local franchi- 
see had planned the most politically im- 
maculate of re-en tries into the new Sou th 
Africa. Instead, they are embroiled in a 
nasty dispute with black job-seekers. 

Nine years after it stopped doing busi- 
ness in South Africa because of its oppo- 
sition to apartheid, PepsiCo Inc. is back. 
But every day for the past two months, 
hundreds, sometimes thousands, of un- 
employed blacks have lined up outside 
the new Pepsi plant on the outskirts of 
Johannesburg, demanding to be hired 
for $2.60-an-bour factory jobs that long 
have been filled. 

When the first Pepsi trucks tried to roll 
recently, demonstrators blocked them 
for several hours until police intervened. 
Twice in the past six weeks, the job- 
seekers have stormed the plant and dam- 
aged offices. Daily, they harass employ- 
ees going in and out. The protesters, in 
turn, say several of their number have 
been injured — and one killed — when 
the police broke up demonstrations. 

In many ways. Pepsi's troubles appear 
to be an anomaly in South Africa's grad- 
ually improving economic situation. 
They do help illustrate, however, bow the 
culture of protest that became en- 
trenched over decades and helped to 
bring down while-minority rule is now 
affecting business development, military 

integration and political empowerment 
among the country s blade majority. 

New Age Beverages, the Pepsi franchi- 
see here, is owned by a dazzling array of 
African-American celebrities, including 
the singer Whitney Houston (who just 
concluded a Pepsi-sponsored concert 
tour in South Africa), the basketball star 
Shaquille O'Neal, the actor Danny Glov- 
er, Johnnie L. Cochran Jr_ who is one of 

'I do th ink there is a 
sense of entitlement now 
in this society/ 

Monawabin Fandeso, 
president of New Age Beverages 

the lawyers defending OJ. Simpson, and 
Earl Graves, a publisher and Pepsi dis- 
tributor in Washington. 

Its chief executive, Khehla Mthembu, 
is a former black activist who once was 
imprisoned on Robben Island for anti- 
apartheid activities. The vast majority of 
New Age’s 150 employees are black. It is 
promoting black entrepreneurship by 
training and financing a network of inde- 
pendent black driver-distributors. It has 
been marketing its product as (he soft 
drink for the new South Africa. 

As a result of all this, company offi- 
cials say. they are baffled by the demon- 
strations. Some point to a new culture of 

entitlement that has arrived in the new 
South Africa on the broad shoulders of 

“I do think there is a sense of entitle- 
ment now in this society, which is under- 
standable given the great poverty and 
unemployment — and the great expecta- 
tions created by the election,” said 
Monawabisi Fandeso, president of New 
Age Beverages, referring to the April 
ballot that made Nelson Mandela South 
Africa’s first black president. 

“But it's unfortunate it has manifested 
itsdf against us, because we're in the 
forefront of black economic empower- 
ment It’s also unfortunate because if 
you get too many incidents like this, it 
could have a chilling effect on others 
who are thinking of investing in the new 
South Africa.” 

That concern seems far from the 
minds of the protesters. “Pep si-Cola is a 
company that is reinvesting in South 
Africa, and so it must employ us,” said 
Machipu Matbqoane, a spokesman for 
the protesters. He said the group has no 
political or union affiliation; it came 
together spontaneously when the word 
spread that a new factory was opening. 
The job-seekers became aggrieved, be 
said, when rumors spread that those who 
did get jobs at the plant were friends or 
relatives of the executives. 

Even though the company insists that 

See PEPSI, Page 11 

Prices of ’94 Burgundies Rise Sharply 

By Barry’ James 

International Herald Tribune 

PARIS — After four years of 
crisis, the Burgundy wine trade 
is predicting belter days after a 
sharp increase in the prices paid 
at the region’s Hospices de 
Beaune charity auction over the 

But experts said they doubt- 
ed chat price levels when the 
wine comes onto the market in 
a few weeks would reflect the 
prices paid at auction, where 
they rose more than 50 percent 
on average. 

“It’s a showoff price,” said 

the wine critic for The New 
York Times, Frank J. Prial. 
“The actual prices in a month 
or so are likely to be less. Still, 
it's a sign of good times, that 
people are buying.” 

The charity auction in the 
medieval town — accompanied 
by three days of feasting and 
tippling — is seen as an early 
indicator of price trends in the 
region in which some of 
France’s finest and most expen- 
sive wines are produced. 

The Burgundy region last, 
year exported wine valued at 
2.3 billion French francs ($430 

million), or 51 percent of its 

Although the prices paid at 
Beaune woe up more than 50 
percent from a year earlier, they 
were an average 21 percent be- 
low 1992 levels and 70 percent 
below the 1989 record. Experts 
said the sharply higher prices 
paid this year reflected the fact 
that the charity hospital had 
improved the quality of wine 
from the 57 hectares ( 141 acres) 
of land donated to it over the 

James Lawlher, a wine writ- 
er, said the hospital’s vineyards 
were thinned in the summer to 

ensure a higher sugar content in 
the grapes left on the vine. After 
criticism of de clining quality, 
the charity installed a state-of- 
the-art 25 milli on franc wine- 
making plant, and hired bade, 
one of the region’s best-regard- 
ed wine makers. Aodnfe Por- 
cheret, to run it 

Sources in the wine trade said 
the charity sent a letter to mer- 
chants before the sale suggest- 
ing that an increase in prices 
would be appropriate in view of 
the quality improvements. 

Another factor in the in- 

See WINE, Page 10 


To Buy a U.S. 
Engine Maker 

By Richard W. Stevenson 

New York Tunes Service 

LONDON — Rolls-Royce 
PLC, which manufactures jet 
engines, said Monday that it 
would make a major expansion 
into the Doited States by ac- 
quiring Allison Engine Co. for 
SS25 million. 

By purchasing Allison, a 
leader in helicopter and large 
military turboprop engines, 
Rolls-Royce is broadening its 
product line and trying to make 
itself a more muscular competi- 
tor against its larger American 
rivals General Electric Co. and 
United Technology Corp.’s 
Pratt & Whitney division. 

Allison was sold a year ago 
by General Motors Corp. to 
Clayton, Dubilier & Rice, a' 
New York-based investment 
concern, for $337 million, so the 
deal will mean a gross profit of 
$188 million for Clayton, Dubi- 
Her’s investors and a group of 
Allison’s managers, who took a 
15 percent stake in that buyout. 

Allison, which Has annual 

sales of around $650 million, 
makes turboprop and jet en- 
gines for military aircraft such 
as the U.S. Air Force's 0130 
transport plane and commer- 
cial and business planes such as 
the Gtation X corporate jet 

Rolls-Royce, which had sales 
of $23 billion and pretax profit 
of $62 million in the first half of 
this year, primarily makes en- 
gines for large Boeing and Air- 
bus commercial aircraft. 

The deal is subject to clear- 
ance by antitrust regulators and 
the Pentagon. Rolls-Royce said 
Allison would retain its name 
and its engines would continue 
to be made in the United States. 

“This acquisition will give us 
significant manufacturing pres- 
ence in the United States, the 
world’s most important center 
of aerospace activity,” Sir 
Ralph Robins, Rolls-Royce’s 
chairman, said. ; 

■Allison's sales have- been, de- 

clining for four years because of 
weak demand for military and 
commercial aircraft, ana the 
company ran up losses in 1991 
through 1993 of $371 million} 
But under its chief executive, FI 
Blake Wallace, the compairt 
has been slashing costs ■ — 3 
reduced employment to 4,300 
from 7,000 in the past foul 
years — helping cot its nef 
losses to $9 million for the find 
three quarters of this year. j 

Better to Raise j 
Rates Than Be \ 
Sorry , OECDSay^ 

By Carl Gewirtz | 

International Herald Tribune 1 

PARIS — Memo to the Feo- 
eral Reserve Board; Bettor to 
err in pushing up interest raid 
than f ail to lift them hi gp 

enough because there is a “con- 
siderable risk” that U.S. infla- 
tion could accelerate. J 

That was the message Mon- 
day from the Organization fok 
Economic Cooperation &n$ 
Development in its annual sur r 
vey of the U.S. economy. Oh 
overall economic policy, the Re- 
port said performance over the 
past two years had been “ret 
markably good” and that “the 
fundamentals seem sound for 
the imme diate future” k 
But the report sounds a A 
alarm about ‘'worsening social 
problems” and inequities be* 
tween those at the top and bot| 
tom ends of income distribar 
tion. “Only if these inequhiei 
are attended to will the long^ 
term economic future of the nar 
tion be secure,” the report saidi 
Prepared in September an4 
revised in October, the report 
was written before the three* 
quarter point increase in U.Sl 
interest rates occurred last week 
See. OECIJi Page 10 ! 

Thinking Ahead /Commentary 

... ^ . 

Please, Norway, Say 'Yes’ This Time 

By Reginald Dale 

International Herald Tribune 

D EAR Norwegians: We all 
know you don’t like being told 
what to do by foreigners. 
That’s the main reason why 
yon rejected European Community 
membemhip in 1972, and why many of 
you will vote against the European 
Union cm Monday. 

But your friends can’t keep quiet when 
they believe another “no” would be bad 
not just for you but for Europe, too. 

Irs easy to understand your objec- 
tions. You are probably Europe's most 
independen t- minded people, deeply at- 
tached to your traditional way of life in 
your remote and beautiful country. 

- With your abundant natural resources 
— 60, gas, fish, hydroelectric power —it 
is tem p tin g to think you can go it alone. 
Most of you are deeply suspicious of all 
the peoples to the south of you. “Noth- 
ing good has ever come out of the Conti- 
nent," you say. 

Even the word “union” has sinister 
overtones, reminiscent of the union with 

Sweden, from which you broke away in 
1905. Just 35 years later, your young 

independence was brutally crushed by 
Germany, now once again the dominant 
European power. 

, You fed that the European Union -is 
undemocratic and inward looking. You 
are deeply attached to the open sew of 
the Atlantic and to your historic hnks 

with America. ^ .. .. 

You «hinir EU membership would 

mean an unacceptable loss of sovereign- 
ty in exchange for only a small voice in 
European affairs. You fear that Nor- 
way’s voice wDl be further diminished as 
the EU expands and its central institu- 
tions are strengthened after 1996. 

Some erf you ask, wby not wait and see 
what happens in the next few years, and 
if everything turns out all right, apply 
again? After ail, you have already ap-- 
pfied and been accepted twice. 

Many of these are reasonable points. 
But you seem to forget that you are not 

Joining the EU is not 
going to change your 
national character. 

alone. Your attitudes are shared by many 
other Scandinavians — and above all by 
your greatest admirers, the British. 

The world has changed dramatically 
since the last time you said “no.” Then 
Denmark was the only Nordic country to 
join the Community. Now Sweden and 
Finlan d are on theb way into the Union. 

If you say “no” again, Norway and 
Iceland will be the only Nordic countries 
left outside, with 80 p erce nt of the Nor- 
dic population inride. You must admit 
that wul create a serious rift in the Nor- 
dic family, which has come to mean a 
great deal to you. 

Already 70 percent of the exports on 
which your prosperity depends go to the 

Union. Once Sweden and Finland have 
joined, the proportion will be even high- 
er. True, even outride the Union, you 
would still be part of the angle European 
market, but you would have no control 
over decisions that seriously affected 
your economy. 

As for Germany, you should under- 
stand that the best solution is to embed it 
deeply into the EU, surrounded by as 
many other countries as possible — Nor- 
way, of course, included. 

Most of the problems threatening Eu- 
rope — pollution, crime, drugs, immigra- 
tion and dealing with Russia, with which 
you share a border — cannot be ta c kled 
by any one country alone. In today’s 
world, national sovereignty is largely an 
illusion — you certainly don't have sov- 
ereignty, for example, over your own 
exchange rate. 

Of course, plenty is wrong with the 
EU. But the answer is not to stay out. 
You will be dominated by it anyway. Far 
better to go in and help build the kind of 
Europe you want 

Joining is not going to change your 
national character. After nearly 40 years 
as members, the Dutch are still Dutch 
and the French French. Norwegian will 
even be an official language. 

If you don’t join now, it won’t be so 
easy just to apply a gain Don’t miss the 
boat Without you, an important part of 
Europe’s heritage would be lacking. This 
time, please say “yes." 

Yours anxiously, a friend. 

^ a J s V 7^3 7^7 


? = MC X 


COFFEE -filiEKK - I £ 


. * 

Cross Ratos N qv 21 

. Qi, p_F. LW DTI BJ. sr. Yen C* Paata 

“ -s £3 s !=• s ar s sr- 

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ft niww 1i«i ISlU *°*- ri * la ‘ l pertoMto TBrtCM*Hra 34345. 

oaeMtome M M rM UM 1 

amatocncd uw “SSrtoT S ^ 

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Forward Raiiso __ jmot ***** ***** 

52S25 iS 55 S «>—>•<• ffJ0 

Duiucm ■ ‘"J 1JTW 1J15I 


Eurocurrucy PwpoBifai 



Nov. 21 










4 YwS IV 








3<V3 41. 





4 months 


5 V5V. 






Imr 6«reek 5VW» 

Sources: Reuters, Uoyds Bank. 




Kay Honoy Ratoo 

UPHU State . clou Prev. 

Manat rata 4V *M 

RioMratt 8ta m 

Federal tads S\ Stt 

3- mattCDa 5J1 5J1 

Comm, poporna dsn 6JOO &M 

Smooth Trwnry MB Ufl 5J2 

HwTnwykBl 6J4 423 

MnorTmarvame 751 7.19 

S-yaar Treasury aote 7J0 7J8 

T-yaarTragranruttr 702 7J1 


■HroarTraontrlwiM 8.12 8.13 

Wii m L.Toa>3»Jo» ready awl 4 SI *£) 


Mfcspatrata m Vt, 

out mean 232 in 

lnmoath hderbafc 2W< 2U 

Smooth tata rt owh 2 v, 2 % 

4- rnonm Mcrtaank 2 !W 242 

If-norCtawrmnaaMMad 4tt 4J0 


Lamhoninta m M 

Cabman 5M SM 

MMMhlatartMBk 109 SjBO 

smooth iotertKOk 520 520 

im wai h lB tar ha U - £30 520 

hiwte 7M ?JQ 


Book Mae rota 


UnaBta iDtartmnfc 
»moott IrrtBrtnmlt 

la ta mo nfl w i nita 
Call mon e y 

5t4 » 

5Y2 Sta 
5*k 5K 
41k 420 

614 6% 

BJ3 £57 

l uta mw H ao rata 120 520 

Ctalmenev 5>4 5«* 

laottt i Mwt S 54k 

SOBRih latproaok 510 SH 

44imdH MMrbank 5% 5<tk 

UPfMr OAT 8.76 822 

5ou»«£.- Ranters. Bloomberg. Merrill 
Lynch. Bonk of Tokyo. Commenbonk. 
GraemottMantmu, CoMt Lvonnats. 












New York 




U£. dollars per ounce. London official fljr- 
krnt zonal ena NOW York opening anddos- 
In s p rice s ; tiew York Comer tOeceaiberJ 
Sourat: Reuters. 

Cream and sugar, Mr. E. ? ” 

Astute investors everywhere know that there are no standard formulas for success. That s where Bank ; 
Julius Baer comes in. For over a century we have been delivering imaginative, personalized asset; 
management services to a demanding clientele around the world. Year in and year out. In good times 1 
and bad. Looking for an individual _ 

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needs? Put a Baer on your side too. 

JBpB j 



Zurich, Sahnhefexrasse 36. CH-B01G Zurich. T*\. (01) Z28 51 II: London, Mirks House. Bevn Marks, London EC3A 7NE, Tol. 071-613 4J,| |-* \ 
Now York, 330 Madison Avenue. New York. N.Y. 10017, Tef. (212) 297-3600. Los Angeles, San Francisco, Palm Beach, Montreal, Ui*nno/ ! 
Mexico City, Hong Kong, Geneva, Paris, Bordeaux, Monaco, Guernsey, Frankfurt. A Member of SPV«J 

A Member «rf SFA 

Page 10 



Rate-Rise Concern 
Depresses Stocks 


Dow Ji 



Lew Last Cbe. 


Cammed by Otr Staff From Kspocka 
NEW YORK —Slocks tum- 
bled Monday on late sell-pro- 
grams fl»nid concern that in- 
creases in interest rates anil 
draw investors to the bond mar- 
ket and away from stocks, trad- 
ers said. 

Higher yields for bonds and 
on money-market funds “make 
it more difficult for stocks to do 


the Organization of Petroleum 
Exporting Countries, which is 
meeting in Bali, signaled it 
would probably maintain cur- 
rent production levels even al- . 
though demand is expected to 

Chevron closed up 1 at 43ft, 
Texaco ended up ft at 61%, and 
Mobil finished up 1ft at 84ft. 

International Paper rose 1 to 
72% and Weyerhaeuser ad- 

Mw 30 US 383X43 376*45 3769.51 — 4*75 
Trans 1WJ3 147349 145759 14S945 —VM9 
y*B T7JJK 17345 17X81 17447 
, CBmp 137053 127347 125X79 125443—1093 

■M i— r L0t sutle.QjJ 
y « MT K.T 1£2 j0O 

If-J- JJ-I' K- S +W5 
N.T. _N-L ,Jr*c rnx +050 

Hfcf Aik BU AA 

A Poor’s 

ho* Law cum am 1 
55X37 547:29 54X14— XM 
35X34 34909 34953— XT7 
l3S WJO 14X74 +089 
4144 4X54 4049 — 071 

spot 19B7J0 190X00 T9«SS0 194X50 

f orward hum 197050 W7i jh 

sm . 287500 vnsa 287900 assioo 

283109 283200 282700 382X00 


SK SS: He JftJfe*" 

4041 45755 XBL® —1TB . 
43250 -0459 42M4 —302 

Soot ■ STUB 673JD 67450 677 JD 

BKS2 ^ 69X00 69300 

OoUonpw nwtrtctop 
3PM 765500 766500 7SVS0D 760500 

Forward 778000 779000 772000 772SOO 


DoOan per Mtrtc toa 

Spot 624000 6258.00 619500 620500 

NYSE Indexes 

well,” said Steven Zenker, mon- 
ey manager at McCabe Capital 

For stocks to rise, investors 
min t be confident that stocks 

vanced ft to 37. on expectations 
that naner orices will continue 






ffl, wnhme: 1X750- Open WTO*, 
TOM B-S-. 

8 q « jb 

-I,.. iaAj i a jh 1&J5 +0JHW 

s q q K ib 

« § as as as $s 

SL uvi 1&25 1425 1425 +(417. 

■ 2 S nTt St ® 

SSI Slt: Si: nTt. +o® 

OK 1648 1648 1648 1605 + U0 

E8L uotuniCI 3X8*7. Own hit 1S94W 

Stock Indexes 

25359 25X18 29955 —475 
32157 31772 31X27 —253 
22755 22448 22577 — 177 j 
19837 19778 19750 +059 
19X53 19X33 19347 —442 

8P04 117550 117650 117550 117450 

Forward 12HL0D (20X00 120350 120450 

HU Low dm Change 


wiB give a higher return. “Right 
now, a lot of people aren’t sure 
that’s going to happen,” he said. 

But the benchmark 30-year 
Treasury bond gained 2/32 
point, to 93 1/32, to yield 8.12 
percent, down from 8.13 per- 
cent on Friday. 

The Dow Jones industrial av- 
erage dosed 45.75 points lower, 
at 3,769.51. 

Two stocks dropped lor ev- 
ery one that rose on the New 
York Stock Exchange, where 
volume was 293 million shares. 
Trading was slow before the 
Thanksgiving Day holiday on 

Energy shares fumed after 

that paper prices wm continue 
to rise. 

Adaptec shares dropped 1 
15/16, to 21 1/16, after the 
computer-parts company’s rat-_ 
ing was lowered to neutral by' 
an Merrill Lynch. 

Kemper dropped 6ft to 42ft, ’ 
in heavy trading after the insur-. 
moo-financial services company 
and Conseco, which rose 3 to, 
40ft, announced they had 
scrapped their proposed merger. 

Intel closed up 2 3/ 16 at 66ft,, 
driving other semiconductor 
makers higher, after Merrill 
Lynch raised its investment rat- 
ing in anticipation of stronger- 
than -expected fourth-quarter 
sales of InteTs Pentium micro- 
processor. Micron Technology 
jumped ft to 40ft, and Ad- 
vanced Micro Devices rose ft to 
25ft. (Bloomberg, AP) 

NASDAQ Indexes 

Qw»w U f 


NYSE Most Actives 

76776 74074 74074 —371 
77371 74458 74458 — X97 
69746 68X53 68853 —675 
90179 89670 89670 —457 

88 S Si£ 2 S rSS 











51274 SOM 
44103 349fc 
34848 38 
33171 43M 
30193 BH 
27436 43 
34846 28% 
34490 37W 
23925 69k 
21890 49* 
21418 32 
19921 171k 
19799 39W 
19721 489k 
19523 7* 

Dow Jones Bond Average*! 

w Sfffi&a _ 

TO Industrials 

KSMJM-Maif 1SS pet 

as ss ss s§ =a 

£5 BS S3 SB 

SS S 3 =Jg 

Jm 9L12 9158 9L10 —057 

S£ SS S +&S 

nS- 9079 9074 9077 + 051 

jSi 9X69 9056 9B67 +051 

sen 9057 ms» 9054 +051 

GsL volume: 39521. Open bit: 517541. 

*1 mHOea - Ms of MO pel 
■DOC (XT. M.T. 9358 UndJ. 

MM- IXT. N.T. 9X29 Uadi. 

Jam (XT. IXT. 9271 -ftJM 

DM 31405 >1305 312X0 —TOO 

m£ TOMB 3140-5 31445 -125 

JM 314X3 3T03 3W5 -105 

Ed. volume: 8297. Open hit: 99572. 

Ms, 1MUDH12A MUD +[» 

SE 3SS ts 

55T "%?. 1 BSS +og 

SW IXT. N.T. 197X00 +030 

■ Est. volume: 14771. Open InL! 42560. 

Sources: Motif. AMSodotsd Pres s . 
London Inn Financial Futures Exetxnpa 
sm P'Sirofsum Exchange. I 


Sep NX IXT. 9X31 —057 

Est vatama: X Open kit: 4551 

AMEX Stock Index 

DM auntw - pta el Ho pet 
Dec 9454 9452 9453 UwSl. 

Mar 9X45 9X63 9X64 +052 

jn 9428 9X24 9X27 +054 

Sm 9X89 9X54 9358 +OM 

52c SS 9155 9148 +054 

Mar na ttn ra.ui +OD2 

Jap 92.93 9250 9250 Undu 

]M 9257 9264 9254 UadL 

o« ms vua 9243 +<un 

mS- nS 92JQ 9232 +051 

3m 9221 9224 9223 UndL 

5« 9119 32-17 9117 +051 

E*L volume: 40,175. Open InL: 73X280. 


Qua Timers . - J?4 JW TO-J4 

MbO Lew Last an. 
44X31 44X98 44128 —276 

NASDAQ Most Actives [ MYSE Diary 

Dollar Heads Lower 
Except Against Mark 






a sms 

Intel wt 


3Com s 





VOL Hath Low 
671k 65 
20% 79* 

85 19V, 

171k 159k 
22 21 Vk 

34V; 37V U 

ISWi U9, 
14 Ik I2kh 
131k 121k 
44 431k 

441k 431k 
64* 631k 

34>a 33U 

451k 44 

&PU 38 

Total Issues 
New Laws 

801 801 
1492 1422 

439 70S 

2932 2931 

13 21 

183 217 

EeSdm Cud S 1 I UO 11-21 12-4 

Keystone Cast S3 - 53 1+21 125 

icS^Sc^S4 - J87 11-S m 


Am Scnwn 2 for 1 split suUecMo sMtehofd- 
•r approval. 


Northrop Crumnao c 5 ) IMS 12-W 

c - air rsasd record X pav dates. 


Webster Ci Iv Fed - .10 1-3 M9 



F+5 mllBon - pl» of 1B0 pd 

Dec M54 0X31 9X34 +0 lU 


COLUMBUS. Ohio (Blooffl°3 d ^ a fourth^iuto 

TOC company said « » cost^otti^pbm that 

aESSsSS- - * 

Rodfwell Wins Battle for Reliance 

nOCKWCU " *5« ___ Rocfewdl international 

SEAL BEACH, iiance Electric Co. fOT$31 aaharc. 

C^. agreed $IJ ^ 

Lost month, ZtodnwD ‘ Al die time, Reliance was 

offer of S30 a sham for Corp. for a SUUBw 

already m agreement iteaeal with General Sgnal, - 
stock-swap merger. “ ^SSSsimial a $50 mi lion termination 
Reliance will have to pay General 
fee plus $5.15 million m expenses. 

American Express Unit to Pay Fme ^ 


toritutioa, the Justice Dq»„- 

s**** 1 ? hank also was fined S7 mfl. 

— •» ******<* 

compliance with federal rules. 

MCI Launches Itself Into Cyberspace 

NEW YORK (Combined Dispatches) — MO Comnnmca- 
tum^oip. mMonday outlined details of its new Internet «mcc 

nui£ Sefira time a major t^toteco^r to tedra 

SSSlize on the growing popularity of 
n«ied group of computer networks around 

lsnminpe to commumcate with one another. (AP, NTT) 

«ft rw 

(*I, I nil 

v; .(Tj.-- _ 

m d\ ’ m * 
,4*1, ■ " p . 


6Vj.v " 

e-W- ; 

V _ 

. • 

> , - 

> . : ■ 
fa* '< 

AMEX Diary 


ToW issues 
Mew Laws 

307 250 

392 335 

226 243 

825 828 

11 9 

48 49 

Mar 9X97 9X8B 9X96 +009 

K? «J4 9X49 9X53 + 054 

5 S 9X20 93.16 9X20 +056 

DK 9255 9350 9254 +056 

|W n£ 915* 9X57 +056 

to 9273 9231 9233 +055 

S*p 92U 9211 9214 +056 

EsL votom»: S759S.OPCR Htt.: 188.131. 


SSOiQH - Pts « limit 0MM PCI 
Dec 102-22 102-10 183-13 +0-» 

Nw- 101-27 1D1-22 101-21 +0+2 

^Bst. votome: 2S41& Open Wj 11WT7. 
DM 25X001 - ptl Of 101 Pd 
, Dec 9020 8952 9008 +DJ2 

Mar 8970 8854 8973,, +024 

Ess. vaXtmtf: 9G39L Open hit: 3 B 7 JU. 
11158 +034 

'sr as wS sa i» 

Sep IXT. N.T. 10868 + 034 

EsL volume: Ill.lSLOpenlnt: 148790 

AMEX Most Actives 

Coufiledhy Our Staff From Dispatdm i 

NEW YORK — The dollar 
rose Monday against the Deut- 
sche mark but slipped against 
other major currencies as trad- 
ers tried to determine whether 
the currency’s recent rally was 

The dollar ended New York 
trading at 98300 yen, down 

Foreign Exchange 

from 98380 yen Friday, but 
rose to 1.5565 DM from 15553 
DM. It also stood at 13183 
Swiss francs, down from 1.3185 
francs before the weekend, and 
at 5.3385 French francs, down 
from 53410 francs. The pound 
rose to S15673 from SI. 5660. 

The dollar has risen 1.2 per- 
cent against the mark and 13 
percent against the yen since 
the U ^.congressional elections 
Nov. 8, amid speculation that 
the Republican Party’s control 
of Congress would lead to 
spending cuts, lower taxes and a 
reduction of the federal deficit. 

A bigger-than -expected in- 
crease in short-term interest 
rates by the U.S. Federal Re- 
serve Board last week also 
helped the dollar’s gains. 

But some traders said the re- 
sponse to those developments 
migh t have been overdone and 
was being reassessed. 

Trading was slow at the start 
of a week that is of ten one of the 
year’s quietest because rtf the 
U5. T hanks giving Day holiday 

UJ5. economic reports this 
week will basically be limited to 
the budget deficit for October, 
due Tuesday, and October du- 
rable-goods orders, to be re- 
leased Wednesday. 

Some traders had been wait- 
ing for the Treasures sale of 
two-year notes Monday to pro- 
vide direction from the bond 
market. But bonds were little 
changed after a fairly well-re- 
ceived auction, so the focus 
shifted to Tuesday, when five- 
year notes are to be sold. 

( Knight- Ridder . AFP, AFX) 









VOL HMi Law Loss dm. 
9994 1* l’A 14k +Vk 


B447 «Vm _ 

7751 48 39k. 39Vk —9k 

7S36 UK-. 10V, 10W —9k 

7187 IVit 'Vh 'Vi. — Vv 

7012 29k 24k 29k t¥v 

4916 394 39k 3kk — to 

4836 9k 'Vj, 9k +Vn 

4728 !3Vk 12Vk 1 29k —9k 

3816 13W 129k 139k — Vk 

Total bouas 

1212 1349 

2077 1857 

1B37 1899 

5124 5125 

44 54 

198 147 

.11 12-30 >19 
525 T2-1 12-33 1 
.12 129 12-19 

. nectedgroup of ^mputer networks arouna ww*m~m** 

common language to commumcate with one another. (AP r NTI) 

FortheRecord ' 

M 55 11-39 12-16 
M 558 TKH 129 
M 5445 11-30 12-16 
Q 55 12-2 12-16 
Q JD 12-15 MO 
O .13 T2-1 t2-T6 
S 55 12-7 12-15 
M 56 12-1 12-15 

ITT Cocp. ngected a pre 
because die price was too 

to bny CBS Inc. for $53 billion 
a person famifiar with the talks 

^ 59 12-2 12-13 ! 

U JBK 12-10 1231 
IW J009 11-30 >31 
M 2-1 11-30 1-31 
M .15 12-1 12-15 l 
_ .635 12-15 12-30 
m 529 11-30 12-14 
O 77 127 >3 

Q 3 240 1-3 

_ 52 11-28 125 

Q .14 11-30 12-15 

OPEC Seen Freezing Output 

«-pov<ifcl* M Caan tfcm TOn da,- m- 
moDmtT; uuuurte rty; McraVpanial 

Spot CommodHlos 



Commoditr Today Pro*., 

Aluminum, 0 JQ 2 0 J?|< 

Covet ofcdr. Sk, » 1 J 9 159 

Iron FOB. fan 21 X 00 zaxM 

Load, Si 044 044 1 

! 5 Wver. frovM 5.14 5.16 

Stool (scrap), ton 12750 12750 ' 

Tin. 1 b na no 

Zinc. IB 05918 059181 

HM Law Last 


US. donors var matric Mo-Ms 

Doc I SITS I4U0 14873 

.to 15450 15150 15150 

Ml 15550 15250 152.73 

to lwiri 1HT5 15275 

55? 15375 15153 15150 

way rag 

jDM UUS 15025 15075 

Ol 180 toss 

m<n Q v> 

15175 Unch. 
15X50 —075 
15275 UnctL 
15150 —025 
15775 +073 
15025 +050 

Certain offering! of icmitua. tasaeM 
services « inwws in nad owe prifikad ia 
Oas aeatpsper sir am anborizetf In moio 
j». i u <vTMvw in wbkti Ae tee n i w i o Ml BenM 
Tdboac is iSsiribaiEd. torlnrfin ; Ihe IWad 
Stales or America, and do not consume 
ofleriass of sectnriiBS. services or hnemsts m 
itese jmisficiions. The buenmiaBal BenU 
Tr3m aaomes no mp ocs M ily nbaBoeicr 
lor my nhotiseimi fin oSentgs of niy Knd. 

WINE: Burgundy Prices Climb OECDs Better to Raise 1/.S. Rates 

Bloomberg Businas News 

BALL Indonesia — The first day of meetings here by 
OPEC oil minis ters adjourned without a formal decision on 
extending a production ceiling. 

Statements by officials of the 12-member Orga niza t io n of 
Petroleum Exporting Countries indicated that ministers were 
in agreement that output would not be raised because that 
would make prices falL 

The con se nsus here and in oil markets worldwide is that 
output will be held at current levels next year in hopes 
increased demand will bring higher prices. It is not dear if the 
extension will be for six months or a year. 

Brent crude for January deli very, the British benchmark, 
rose 23 cents per band, to $16.95, in London. 

Continued from Page 9 
crease was the relative scarce- 
ness of this year’s crop because 
of rain and hail toward the end 
of the growing season. 

“Consumers certainly must 
not worry that they are going to 
have to pay 50 percent more for 
their Burgundy,” Bertrand De- 
viDard, president of the Bur- 
gundy buyers’ association, told 
Reuters. He said the auction, 
which raised about 12 million 
francs, was merely an indica- 

tion that “we have passed the 
low point of the crisis.” Most 
observers predicted that prices 
would rise between 10 percent 
and 15 percent 
Tim Johnston, of the Paris 
wine dealer Grapes, on the oth- 
er hand, said he believed that a 
combination of good quality 
with relatively small quantity 
would mean that this year’s 
Burgundies would become 
“outrageously expensive,” at 
least on the French market ' 

Continued from Page 9 

As a result, the Federal Reserve 
is actually a bit ahead of where 
the OECD had expected. The 
cost of overnight money now 
stands at 5 JO percent, compared 
with the 5.25 percent projected 
in the report at year-end. 

But the study also says that 
rates “will have to rise substan- 
tially more by the end of 1995.” 

The report sees the overnight 

money rate rising to 6.25 per- 
cent But that is already outdat- 
ed by the still rapid pace of 
economic growth, and OECD 
economists said the latest esti- 
mate to be published next 
month in its Economic Outlook 
had that rate rising to just be- 
low 7.00 percent. 

That is well ahead of some 
private analysts who said they 
thongbt the tightening so far 
was sufficient. 

Weekend Box Offlcs 

The Associated Press — 

LOS ANGELES- — “Star Trek Generations” dominated the 
U. S. box office with a gross of $23.2 million over the weefao^i 
Following are the Top 10 moneymakers, based on Friday ticket? 
sales and estimated sales for Saturday and Sunday. 

1 . "Star Trek G un tn i tlo w a- 
2 -"l nl tr* > 4 « WHft nm Vamptre* 
X "The Santa Clause' 

X The Lion Who” 
i"The PratankMar 
A. ■stomata" 

7 . "Pulp Fiction" 

Alba War 

9 . “Mlrade an 34 th Straer 
IX Tho Swan Princess" 


(WOrrmr Brothers) 



(CatartMat ’ 




(Twentieth Century Fax} 

51 X 1 mllHan 
* 1 X 3 million 
*35 mRlfan 
' S 5.1 mllQoa 
M 7 million 
S 27 m 1 Htai 
*25 mlfhon 


•- -5 r. * 



.'•«C v. ,•!:!>■ 


• -v- (.. t jiTi'i 


to po*. »s 

Ciba-Gelgy Takes 
Stake in Chiron 

For $2.1 Billion 


UBS Battle: A Very Un-Swiss Affair 

Financial Institution Rocked by Takeover Struggle 


A*..-. - .''<>1' 


\ -MC 

■■'-•r r f . 

£t\ >• 

3 .: 


Coap^bfOtr Staff From Dispatches 
YORK — Ciba-Geigy 
AG said Monday it would form 
a strategic partnership with 
Chiron Corp., buying a 49.9 
id fr'c* v jv percent stake in the fcriotechnol- 
<Y f|H. ogyeompany for $2.1 billion. 
^ f r». “ The announcement marks 
the latest deal in the scramble 
by health care and drug compa- 
nies to merge or form alliances 

he^Secwtr^ ^ l0WCT 

The a llia nce between Gba 
and Chiron would allow fh^m 
to cQflabarate <m discovering, 
developing, producing and 
marketing biotechnology and 
other health-care products. 

On Tuesday, Ciba confirmed 
Wall Street rumors that it had 
been holding tatlr? to buy a 
stake in Chiron. 

Shares in Chiron, which were 
selling for less than $60 before 
the rumors started, gained S3, 
sjp $81.25, in late trading on the 
Tlasdaq system. 

Ciba-Geigy bearer shares fell 
to 769 Swiss francs ($584) from 
778 francs. 

Gba will begin a tender offer 
for about 11 .9 million shares of 
Chiron common stock for $117 
per share. Gba already owns 
about 4 percent of Chiron. 

That portion of the deal is 
worth about $139 billion. 

In addition, Ciba will ex- 
change its Gba Coming Diag- 
nostics business and its 50 per- 

cent interest in Biocine Co. and 
Biocine SpA, a vaccine venture 
jointly owned with Chiron, for 
6.6 million newly issued Chiron 

The 18.5 million Chiron 
shares Gba is acquirin g, com- 
bined with the 1.4 million 
Chiron shares it already owns, 
will give Gba-Geigy 49.9 per- 
cent of Chiron's shares. 

Ciba also has agreed to guar- 
antee $425 million in new debt 
for Chiron and will not buy 
more Chiron shares for five 
years mil ess that is required to 
main tain its 49.9 percent stake. 

After five years, Gba is al- 
lowed to increase its stake to 55 

Gba will also provide Chiron 
with between $250 million and 
$300 million over five years for 

David Webber, an analyst 
with Alex. Brown Inc, said the 
deal “creates a stronger Chiron. 
For one thing, you have a reve- 
nue base now with the contribu- 
tion of the diagnostics business 
from Ciba-Gdgy.” 

He also said the deal was a 
sign of “a real acceleration of 
the consolidation phase" in the 
biotechnology sector. 

On Friday, Amgen Inc, the 
largest US. biotechnology drug 
company, said it would buy 
Synergen Inc, a smaller com- 
petitor, for about $240 million. 

(A P, Bloomberg, Reuters) 

By Nathaniel C. Nash 

New York Tima Service 

ZURICH — In Switzerland, discreet 
finance and genteel business manners 
are a way of me, and the rare corporate 
takeover is quietly handled behind 
closed doors. 

But now the Swiss are getting their full 
share of a knock-down, drag-out fight 
over control of the country's largest fi- 
nancial institution. Union Bank of Swit- 
zerland. The bank is so big that its global 
assets nearly equal Switzerland's gross 
nation alp rod uct, but that has not put off 
Martin Ebner, a rich, brash Swiss finan- 
cier whose actions are in the tradition of 
American takeover specialists like Carl 
C Icahn and T. Boone Pickens. 

Mr. Ebner, who controls 16 percent of 
Union Bank’s voting shares, wants to re- 
shape the giant from an institution that 
offers almost every banking service and 
cams a respectable profit into a lean bank 
concentrating on high-profit private 
banking and securities underwriting 

The current managers, he asserts, are 
trying to hold onto their jobs and are 
sluggish and lack innovation. Their insti- 
tution far underperforms the banks he 
idolizes most, he says, like J. P. Morgan 
and Wells Farj»o in the United States and 
Lloyds Bank m London. 

Not surprisingly, executives at Union 
Bank profoundly disagree. They note 
that the bank, with a 25 percent share of 
the Swiss mortgage market, cannot freely 
move mortgage rates up and down to 
follow international money markets. In 
1991, for example, Robert Studer, the 
bank’s chief executive, was called to tes- 
tify before Parliament to explain why the 

bank raised its lending rates by half a 
percentage point. 

So what is at stake is not just control of 
Union Bank but also its rale as a Swiss 
institution. To address the perceived 
threat, the bank’s board has scheduled a 

At stake is UBS’s role as 
a Swiss institution. 

special shareholders meeting for Tues- 
day, at which the board hopes to pass a 
resolution that would radically reduce 
the voting power of Mr. Elmer's stock 
and that of investors who support him. 

“Mr. Elmer's objective is not for UBS 
to live as a healthy bank for the next 200 
years and be a support to the Swiss 
economy,” Mr. Studer said. “He wants 
us to focus on areas that require much 
less capital, and that take the excess 
capital we have built up and hand it over 
to shareholders to make them rich." 

The furor over the Union Bank battle 
has made for a frenzied Swiss press. One 
Zurich daily is running a 12-part series on 
the battle and a financial daily. Cash, is 
offering prizes totaling $32,000 to those 
who most closely guess how much of the 
proxy vote Mr. Ebner gets on Tuesday. 

Against this backdrop, Mr. Ebner is 
making his nm at Union Bank He has 
been the bank’s largest shareholder since 
1991, after be persuaded Swiss pension 
funds to bankroll his company, BK Bank 
Zurich AG, which became a major share- 
holder in UBS. 

Mr. Ebner also holds stock in Union 
Bank through BK Vision AG, an invest- 
ment company in which Rolex Holding 

Group, which makes the famous watch- 
es, is a major shareholder. 

At the bank’s jnwiuai meeting this 
year, Mr. Ebner proposed that the board 
be trimmed to nine directors from 23, 
arguing that it would streamline the 
bank and make it more innovative. Al- 
though his plan was voted down, he won 
40 percent of the vote, which frightened 
the bank's management Soon thereafter, 
Mr. Studer and the chairman, Nikolaus 
Sam, began trying to figure out how to 
reduce Mr. Ebner’s voting power. 

Mr. Ebner’s strategy was built on his, 
recognition that the bank’s registered 
shares, which could be owned only by 
Swiss nationals, were out of favor be- 
cause of their limited liquidity, and were 
valued at about one-firth of the bearer 
shares that could be owned by anyone. 
Yet both types of shares have equal vot- 
ing rights, so Mr. Ebner realized that he 
could have five times the voting power 
by buying registered shares. 

To head off Mr. Ebner, Mr. Seam and 
Mr. Studer decided to propose at the 
company's 1995 annual meeting that a 
new type of share be created, for which all 
existing shares would be exchanged — but 
with the exchange reflecting market value, 
so that each registered share would get 
one new share, but each bearer share 
would get five. That would leave Mr. 
Elmer with a much-weakened position.' 

After Mr. Ebner approached the 
bank’s manag ement during the s umm er 
and said he was dose to cementing sup- 
pent for a controlling interest in the 
bank, the board dedded it could not wait 
until 1995 and called a special sharehold- 
er’s meeting for Nov. 22. 


Holiday's dosing 

Tables include the nationwide prices up to 
the ctaetno on Wan Street and do not reflect 
late trades elsewhere. Via The Associated Press 

12 Marti . 
Haiti Law Stack 


DW Yld PE life 

I RMorti St 

LMLoMCh'flt fflon Lon Bode Mv VM PE life 

Low Lend or ga 

Cofithmed eo Page 14 

PEPSI: Troubled in South Africa 

Continued from Page 9 

all 150 jobs were filled long be- 
fore the protesters arrived, job- 
seekers continue to camp for 
eight hours a day outside the 
main gate. “I have not worked 
in two years,” said Willie Ma- 
tan, who borrows a dollar a day 
from famfly and friends for 
transportation from his home in 
Katlehong. “There are no jobs 
anywhere. It’s better to come 
here than to just stand around 
al home.” 

The official unemployment 
rate among blacks here is 50 
percent, and people are desper- 
ate for work. -Recently, when 
the new government announced 
it would be filling 1 1,000 low- 
level crvfl service riots, it got 
more than a million applica- 

In the two months since the 
protest began, civic and peace 
groups and local government 

officials have tried to mediate, 
so far unsuccessfully. The U.S. 
Embassy has noted its concern 
to the government but has not 
become directly involved. 

Last month the company of- 
fered to hire protesters on a 
lottery basis to fill any job va- 
cancies, but when four slots 
were filled that way, Mr. Fan- 
deso said, the move triggered 
violence and attracted hun- 
dreds more demonstrators. 
“For some reason, the people 
outside continue to believe 
there are jobs to be bad,” he 

“Perhaps we have become a 
target because Pepsi is a famous 
i name,” said Mr. Graves, who 
put together the high-profile 
group of American investors. 
He said he has no regrets about 
his investment here mod sees the 
protest as an unfortunate but 
temporary Uip. 

Page 11 

“T rvTr 

- * wt - 


;****! • 


asfcfc. v '"' : S83 : : ! j,s Mar. ? 

Sources: Reuters. AFP Imcrnistkwd HertJdTrftune 

Very briefly; 

• The European Commission, trying to keep unemployment at the 
top of the agenda, will ask European Union leaders to agree on 
targets for jobs and give social affairs ministers monitoring 
powers, EU sources said. 

• Volkswagen AG dismissed reports that it planned to pay an. 
unchanged dividend of 2 Deutsche marks ($129) a share for 1994 
as “pure speculation.” A spokesman said the supervisory board 
would decide on the dividend rate early next year. 

• Deutsche Bank AG and Dresdner Bank AG will be part of the 
international bank consortium that will manage the placement of 
Deutsche Bondespost Telekom shares, a Bundespost-Telekom 
spokesman said. He said a decision on which non-German banks 
would be included would be made before the end of this month. 

• British Airways, KLM Royal Dutch Airlines and four other 
European carriers filed an appeal against French subsidies for Air 
France with the European Court of Justice in Luxembourg. 

• Akins Industrie said its supervisory board voted to extend the 
mandate of its chief executive, Jean Pierson, by three years, 

• The European Commission is expected to fine as many as 30 
cement companies for running a pnee-fixing and market-sharing 
cartel when it meets next week, commission sources said. 

i letters. AFX, Bloomberg 

Soros Leaves Property Fond 

Compiled bp Oia Staff From Dispatches 

LONDON — The interna- 
tional financier George Soros 
pulled out of a £600 milli on 
($940 million) long-tom British 
property investment fund Mon- 
day, saying there were better 
opportunities for investment 
Mr. Soros did not identify the 
other investments he had in 
mind, but analysts said his 
withdrawal from a partnership 
with British Land Co. support- 
ed a widespread feeling that the 
recently buoyant British prop- 
erty market had flattened out 

^he sector's very much fall-, 
en out of favor,” Michael Frew, 
a p roper ty analyst at Panmure 
Gordon, said. 

Mr. Soros's move became 
known when British Land said 
it would bw the 51 3 percent of 
the British Land Quantum 
Property Fund it did not al- 
ready own for £142 million in 
cash and the assumption of 
£160.9 milli on of debt. The 513 
percent was hdd by the Quan-‘ 
turn UJK_ Realty Fund and by 
Mir. Soros personally. 

(Bloomberg Reuters) 




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Nintendo Profit Drops 
On Yen and Weak Sales 

TOKYO — Nintendo Go 
U» world’s biggest maker of 
video games, on Monday 
blamed the strong yen and 
shnnping sales of video-game 
devices overseas for an 16 per- 
cent drop m ^ profit for the 
first half of the financial year. 

Hie company, based in Kyo- 
to, posted parent current profit, 
winch is pretax, of 51.05 billion 
yen ($518 million) in the sj^ 
moatiu to September, down 
from 61.07 billion yea in the 
comparable period a year earli- 
er. First-half sales tumbled 36 
percent, to 166.10 Won yen. 
Nintendo also said the strong 

yea and sagging sales would 
hold the firm bade for the full 
year, in which it sees parent 
current profit of 104.00 billion 
yen, down from 115.05 Won 

for the year that ended in 
torch. Sales are expected to 
5 «op 27 percent, to 340.00 bil- 
lion yen. 

Nintendo said its sales 
slumped overall on weak de- 
mand for its products, panicu- 
lariy in Europe, despite the 
popularity of its new “Super 
Game Boy.” 

Along with Sega Enterprises 
Ltd.. Nintendo once rinrnipafwi 
the video game industry. But 
the companies have been facing 
increasing competition recently 
as other companies enter the 


‘‘This year is proving as 
tough as we expected it to be,” 
said Yasuhiro Minagawa, a 
Nintendo spokesman. 

Last week Nintendo unveiled 
“Virtual Boy,” a virtual reality 

game machine that should be in 
toy s tores early in 1995. The 
company also is expected to 
launch a game 

“Project Reality,” which it plans 
to launch in September 1995. 

Nintendo said it hoped to 
break out of the spiral of declin- 
ing profit on the back of these 
two products and a revival in 
the global video game market. 

But some analysts said they 
thought Nintendo might be too 
bullish about its earnings for the 
full year. 

“There’s basically a problem 
of oversupply,’’ said Naoko I to, 
analyst at Goldman, Sachs. She 
said that bloated inventories in 
overseas markets would weigh 
on Nintendo’s earnings through 
next year. 

(AP, Bloomberg. AFP) 

Japan Firms Show Signs of Health 

TOKYO — The bulk of c or porate Japan has 
reported its results for the financial half-year 
that ended Sept 30, and analysts said Monday 
that e arnin gs overall were poised to mark their 
first rise in five years. 

The Wako Research Institute of Economics 
surveyed 602 companies that are on the first 
section of the Tokyo Stock Exchange have 
already reported results. 

The institute said combined parent current 
profits f or the first half rose 4 percent, compared 
with a lass of 17 percent the previous year, 
desnte a 2 percent decline in sales. 

Recovering global economies have led to in- 
creased demand for Japanese products, meaning 
the strong yea was no longer a great concern, 
said Ned Rogers, a strategist at UBS Securities. 
He added that companies have benefited from 
government stimuli and low short-term interest 

Yuichi Matsushita, of Nikko Securities Co M 

said that additional public works spending could 
be expected. 

He said the government had proposed replac- 
ing a 430 trillion yen ($4.4 bQJion) spending plan 
over the 10 years starting in 1991-92 with a fresh 
program of about 630 trillion yen over the 10 
years starting in April 1995. 

Kathy Matsui, a strategist at Goldman, Sachs 
(Japan) Corp., said the benefits from restructur- 
ing have helped companies’ earnings despite a 
decline in revenue. 

To cope with the yen's sharp appreciation 
against the dollar, com panies have been slashing a 
wide variety of fixed costs, mainly by shaving their 
work forces “and moving operations offshore in a 
bid to bring down overall production costs and 
source cheaper imports,” Ms. Matsui said. 

Mr. Rogers of UBS said that the good news 
would not help the stock market because it had 
already been factored into share prices. But a 
significant rise in foil-year profit would help 
stocks, he said. 

Jade Merchants 
Warn Consumers 
Of Fake Stones 

La Angela Tana Service 

The international jade trade is reeling from a proliferation 
of doctored stones that have appeared on the market since 
1990, hurling sales and eroding confidence in the translucent 
green gem that is prized throughout Asia. 

Some jade traders estimate that inferior stones, which are 
treated with chemicals to enhance their deep green color, now 
account for more than half the gems circulating in Hong 
Kong, the world's biggest jade market 
Concerned that consumers unsure of the quality of gems 
will shy away from the expensive stone, merchants on both 
sides of the Pacific are fighting bade with high-tech detection 
methods and a campaign to educate the public. 

The Hong Kong Jade and Stone Manufacturers Associa- 
tion recently spent $200,000 for lab equipment to detect 
treated jade and took out ads in Hong Kong’s daily press to 
explain the difference between high-quality stones, called A- 
grade jade, and stones infused with plastic, known as B-grade. 

The jade trade generates hundreds of millions of dollars a 
year, mainly in Asia, where the stone has been revered 
throughout history for bringing good fortune. Jade has been 
worked into ritual objects and ornaments is China for almost 
7,000 years. It was placed in the earth at planting time to bring 
good harvest and was buried with the dead to assure passage 
to heaven. 

For consumers, the stakes are high in Hisfiwgnfohiwg high- 
quality jade from treated stones: A pair of Imperial jade 
earrings recently fetched $750,000 at auction, according to 
Sotheby’s. S imilar earrings made of impregnated jade are 
worth only $2,000. 

The Hong Kong trade association says treated jade “has 
seriously affected the local jadeite industry and damaged 
Hong Kong’s reputation as an international center for quality 
jadeite.” Sales in that country fell almost 50 percent between 
1990 and 1993, plunging from $30 5 million worth of jade 
exports in 1990 to $19.1 million in 1992, according to Jewelry 
News Asia, a trade publication. The market has only re- 
bounded in the past year. 

To adulterate stones, chemists bleach out mineral impuri- 
ties from low-quality jade, then inject the stone with a plastic 
polymer resin to heighten its color, according to the Geolog- 
ical Institute of America, a nonprofit organization based in 
Santa Monica, California. Because the tampering is invisible 
to the naked eye, the only reliable test is to put the stone 
through infrared spectroscopy, a process requiring a machine 
tfaal costs up to $100,000. 

U.S. Halts 
Beef From 

Bloomberg Bwmw Una 

CANBERRA —The United 
States has halted all imports of 
Australian beef because of a 
pesticide scare, Australian beef 
industry sources said Monday. 

The decision, which followed 
a similar import halt by Japan 
last week, gives the industry a 
black eye just as it is poised for 
export growth in Asia, an in- 
dustry group said. 

John Mactaggart, president 
of the Cattle Council of Austra- 
lia, said the industry, now 
worth 4 billion Australian dol- 
lars ($3 billion) a year, is set for 
spectacular growth. He said de- 
mand in Aria was rising be- 
cause of dietary changes and 
declines in «""»«> fish catches. 

However, Mr. Mactaggart 
said Australia would jeopardize 
its opportunities if it lost its 
reputation as a producer of 
chemical-free meat. 

Bob Collins, Australia's min- 
ister of primary industries, con- 
tacted all of Australia’s interna- 
tional beef customers last week 
to alert them that contamina- 
tion of beef by a cotton pesti- 
cide had been detected. 

David Palmer, executive di- 
rector of the Cattle Council of 
Australia, said the U.S. ban had 
been imposed while authorities 
assess any risk from chemical 
residue, but he said it was not 
expected to be a long-term ban. 

“As I have been informed, 
the Australian product has sim- 
ply been held up from release 
over the weekend,” Mr. Palmer 
told Australian Broadcasting 
Corp. radio. 

It is estimated that between 
5,000 and 6,000 tons of Austra- 
lian beef were affected by the 
U.S. action. 

Hong Kong 

11N> rrr~ 

Page 13 


t.JJliA s; v 

' rPsrsFisy 

• Exchange ■ ■ index " : : 

Hong Kong ■■ ■■Harig^Sang.. - = V: 

fimes. v 

Sydney ■ ; ' -JQi 

Kuala Lumpur .Composite L 

Bangkok. . ' ' SET; 

TatpeS ■ WeightedFrfce' '[ ; M04.62 
Mante PSE ■ " ^ ~ 

New Zealand HZS&40 , ■ - ' . •%05S> 86- : 

Bombay . National Index • 1,965.87 

Sources: Reuters. AFP Imeraaiaa*] Herald Trisjne 

Very briefly; 

• Kyocera Corp. of Japan, a maker of integrated circuit ceramic 
packages, said a 24 percent drop is group pretax profit in the six: 
months to September, to 33.1 billion yen ($331 million.^ was 
exaggerated because of special gains in the year-earlier period. 

• Bridgestone Cup. said it would start producing Ffaestooe-brand 
tires in Japan from 1995 for export to Asia, Europe and South 
America, because its US. unit Bridgestare/ffresfoiie five, is faced 
with capacity shortfall in the U.S. market. 

• Tbe Industrial Bank of Japan Ltd. and The Bank of Tokyo LtiL, 
said they would open representative offices in Hand on Tuesday. 

• Japan’s salaried workers fail to use 38 percent of their paid 
holidays, while senior managers renounce 59 J. percent of vacation 
time, according to an I nstitute of Labor Administration survey. 

• Taiwan garnered $8.41 trillion worth of business orders from 
abroad in October, a 13.4 percent jump over the comparable 
period last year, because the improving global economy spurred 
demand for local products, the economic ministry said. 

AFX, AFP, AP. Btoombog, 


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Bloomberg Burma New 

HONG KONG — Hong Kong’s only 
cable television company said Monday it 
would not reach the 1994 subscription tar- 
get it set earlier this year. 

Stephen Ng, managing director of Cable 
TV, a subsidiary of Wharf (Holdings) Ltd., 
said tbe company would not reach the goal 
of 250,000 subscribers it set last summer. 

Benny Chan, the company’s manager 
for corporate communications, said that 
the target of 250,000 subscriptions was 
mainly an incentive for the company’s 
sales force. He said the company now 

expected to have 150,000 subscribers by 
tbe end of tbe year. 

Wharf has wired 850,000 of the territory’s 
1.5 mQfioo households for cable television. 
It now has 12Q£00 subscribers, 10,000 short 
of the 1994 year-end figure in Wharfs pro- 
posal to the government, Mr. Chan said. 

The company has been guaranteed a 
monopoly for three years, to 1996. Despite 
the slugg i s h subscription rate, analysts 
forecast strong long-term profit for the 
company as its solidifies that monopoly. 
■ Australia Secures Bights to Films 

Australis Media, the Australian pay 

television company, formed a partnership 
with three Hollywood studios and Tele- 
communications Inc, die U.S. cable com- 
pany, to secure movies for its satellite and 
microwave services. Bloomberg reported 
from Sydney. 

Under the agreement with Paramount 
Pictures Corp., Sony Pictures Entertain- 
ment Inc, and MCA Inc, Australis has 
exclusive rights to broadcast first-run and 
dder movies for five and a half years, with 
an option for a further five years. TCI, 
which put up collateral for Australis, wiU 
be issued 895,000 Australis shares. 


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Page 14 






Beirut’s new era started 
last September, when more than 
40,000 persons joined hands in the 
Martyrs’ Square to sing along with the 
Lebanese diva Fayrouz, who had 
vowed not to sing again in her 
country until there was peace. 

An a flowing white robe and 
accompanied by a 40-piece 
orchestra, Fayrouz sang “I 
love you, Lebanon.” She 
was joined by her audience, 
who had come from ail over 
the Levant. It was a moving 
occasion. Christians, 
Moslems, the young and the 
old held hands as their voic- 
es echoed around the piles of 
rubble and nearby shell-shot 

“It was a most beautiful 
moment, such a moving ex- 
perience, which I have never 
felt before," says Roula 
Bitar, a young woman in her 
twenties who grew up dur- 
ing the 1 8-year civil war that 
tore Lebanon apart. “Every’' 
one was united. I could nev- 
er have believed this would 

Rambo no longer 

Jacques Sarraf, president of 
the Association of Lebanese 
Industrialists and one of 
Lebanon's most influential 
business executives, says the 
conceit was “Unbelievable. 
It showed that when we 
Lebanese are in a good envi- 
ronment, we can behave and 
be proud of ourselves. There 
is no longer the ‘Rambo' im- 
age - all that has changed. It 
is behind us.” 

A few dayi after the con- 
ceit, in another flamboyant 
ceremony. President Elias 
Hfawi laud the foundation 
stone to mark the beginning 
of a multinnllion-dollar pro-. . 
ject'to rebuild the city of 
Beirut. On the foundation 
stone was a single word: 
“Beirut.” It was laid next to 
the bullet-blasted statues of 
the Martyrs' Monument, 
which had been at the center 
of countless battles during 
the civil war that started in 

Laying tbe foundation 
“The hour of awakening has 
come. He who has only tears 

for what has been destroyed 
is exactly like he who has 
destroyed. We want this 
foundation stone that we are 
laying to be a stone that 
buries the whims of destruc- 
tion. We want a foundation 
stone for a new age and a re- 
newed presence," declared 
Mr. Hrawi. a Maronite 
Christian, amidst thundering 

The stone-laying ceremo- 
ny was also a symbolic ges- 
ture by the government to 
damn the critics of the city- 
center rebuilding project, 
which is being carried out by 
tbe private company Solid- 
ere. The government granted 
a decree three years ago that 
allowed Solidere to acquire 
the 1.2 million square acres 
of real estate by offering a 
total of SI. 17 billion in 
shares to the 120,000 indi- 
vidual titleholders. Cash 
subscribers paid S650 mil- 

Wlth peace restored, the 
Lebanese diva Fayrouz re- 
turned to sing in BekuL 

lion for an equity offering in 
late 1993. Critics accused 
Solidere of riding roughshod 
over some property owners 
with its financial strategy 
and of denigrating the tradi- 
tional face of Beirut’s city 
center by imposing too 
much modem architecture. 
In fact. Solidere has made 
several modifications to its 
original plans to encourage a 
more traditional and cohe- 
sive design for the city cen- 
ter. A competition for the re- 
design of the old souk area 
attracted worldwide interest. 

Congestion ahead 
The reconstruction is now 
on the move, unlike the traf- 
fic. As streets are blocked 
off for building clearance 
and for the laying of the pre- 
liminary utility services, 
traffic congestion has be- 
come a major headache. It is 
going to get worse as the 
work expands. 

In the first 10 months of 
the year, there has been a no- 
ticeable change in the city 
center. Old buildings too 
damaged to restore have 
been bulldozed into piles of 
rubble. Altogether, more 
than 120 buildings have 
been razed to the ground, 
and an estimated 3 million 
tons of rabble have been re- 
moved from the central area. 
Sites have been marked off 
for new buildings, and bill- 
boards cany posters depict- 
ing artists’ impressions of 
the new Beirut. Buildings 
considered safe enough for 
rebuilding have been left 
standing, with gapin® win- 
dows in bullet-strated fa- 
cades looking like a Gothic 

From the Martyrs' Square, 
a swathe has been cut 

(This announcement appears as a matter of record only) 


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Issued September 30, 1994 


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through the derelict build- 
ings; Diis will become a ritzy 
boulevard leading down to 
the Mediterranean. Along 
the seafront, dozens of new 
apartment blocks have risen 
Phoenix-like from amidst 
the surrounding rubble. 
Many in the best positions 
are commanding sky-high 
prices of several million dol- 
lars for just one apartment. 

These are the outward and 
visible signs of a growing 
confidence in the future of 
Beirut and Lebanon as a 
whole in spile of some un- 
finished peacemaking busi- 
ness with Israel. The latter's 
troops still occupy part of 
Southern Lebanon, which - 
with the recent exception of 
Kuwait - is the only active 
front line in the Middle East. 
The Israeli forces are coun- 
tered by the presence of 
some 20.000 Syrian armed 
forces in Lebanon. They 
also reinforce the very close 
ties between Beirut and 
Damascus. Syria's influence 
has undoubtedly led to the 
present era of peace and sta- 

Prime Minister Rafik 

Hariri, a 49-year-old con- 
struction billionaire, tends to 
run the country as Lebanon 
Inc. In spite of considerable 
criticism from opposition 
parlies, lie has held the pre- 
sent government together 
and nursed it from a fitful 
peace into the new era of en- 
terprise and stability. He has 
masterminded the recon- 
struction planning of the city 
and of Lebanon through the 
Council for Development 
and Reconstruction. The 
council was originally estab- 
lished in 1977 but became 
defunct, to be revived by 
Mr. Hariri in 1991 before he 
became prime minister. 

Horizon 2000 
Mr. Hariri's plan for the re- 
construction and develop- 
ment of the country and its 
economy has been dubbed 
Horizon 2000. This is an 
ambitious $16 billion pro- 
gram covering 19 individual 
sectors, ft cm education to 
garbage collection. 

The money will be raised 
from internal and external 
sources. The fact that the 
Solidere share issue of $650 

million was oversubscribed 
by 42 percent suggests there 
is no shortage of speculative 
capital; the share issue was 
open only to Lebanese. An- 
other more recent vote of 
confidence for Mr. Hariri is 
the current Eurobond issue, 
which is being lead-man- 
aged by Merrill Lynch and 
underwritten by Banque ln- 
dosuez and Paribas. This is 
Lebanon's first Eurobond is- 
sue and one of die first from 
the Arab world. It was origi- 
nally set at $150 million. Be- 
cause of investor interest, 
however, it was raised to 
$300 million and then in- 
creased further to $400 mil- 
lion. The three-year bonds 
are expected to be listed on 
the Luxembourg Stock Ex- 

A victory for Lebanon 
“This deal opens tbe door to 
the international capital mar- 
kets,'' said Mr. Hariri at a 
London ceremony to launch 
the bond. Proceeds from the 
bond will be used to finance 
a major ring road for Beirut 
and to build homes to en- 
courage those displaced by 

Lebanese President Elias Hrawi (in white suit ) lays the foundation 
stone to m&k the rebuilding of Beirut. 

the civil war to vacate the 
overcrowded capital area. 

Mr. Hariri described the 
exceptional interest in the 
Eurobond issue as a “victory 
for Lebanon.” He added that 
the issue was a “trust sub- 

scription” in Lebanon and 
its ability' to get back on its 
feet. "It will also open the 
door for Lebanon to borrow 
from the whole world,” said 

Continued on page J 7 

: DAR AL-HANPASAH (Shair & Partners) is participating 
in lhe recovery and development of Lebanon. providing 
-consulting services and. technical' assistance in recovery. / 
■' planning and programming, infrastructure plamung, design 
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FAX: (961 1 ) 602247 - 602248 



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Page 16 



^ p ( >N SORED Shi 1 ION 

Times: Beirut 
r a wrrF. to Reopen 

Analysts Say Economy Is on the Right Track 

A look at the smart moves behind Lebanon 's economic renewal which includes significant GDP growth and a sharp drop in inflation. 

LJoubts over the development of 
the economy were strongly refuted 
recently by Prime Minister Rafik 
Hariri, who has accused critics from 
many sides of the political and reli- 
gious spectrum of manipulating 
data. “You can see all the achieve- 
ments that have been accomplished 
since the end of the war [1990]," he 
told them. “Proposals putting 
Lebanon's economic stability in 
doubt are unfounded. Our economic 
future is very solid and is progress- 
ing month by month in the direction 
of economic and social balance.” 

Peace and price stability 
According to United Nation esti- 
mates, the country was left with a .. 
war-damage bill of more than $25 
billion - five times more than that 
incurred by Kuwait in 1990-91 after 
the Iraqi invasion. D^pite this hand- 
icap, Lebanon's sus' '-led economic 
growth has been ex- .Hional after a 
slight decline following a peace 
bonus in 1990-91. In the past two 
years, inflation has been dragged 
down from 131 percent to 8.8 per- 
cent last year. Merrill Lynch Interna- 
tional's Eurobond prospectus says 
that this “marks the first prolonged 

return to price stability since the 
mid-1980s.” According to Freddie 
Vaz of Bank Audi, one of Lebanon's 
top banks, inflation is expected to 
have fallen to just over 5 percent far 
the first eight months of the year. 

Other indications that Lebanon is 
on the right track come from a recent 
report by Baring Securities of Lon- 
don. The report comments on the 
improvement in gross domestic 
product, which has risen from 4 per- 
cent in 1992 “and is likely to be be- 
tween 5 percent and 7 percent by tbe 
end of this year.” 

Foreign reserves have climbed 
steadily, from $660 million m 1990 
to S3.3 billion at the end of the first 
half of this year. 

Balancing tbe books 
According to the Banque du Liban, 
the country's central bank, the bal- 
ance of payments was SI 07.8 mil- 
lion in surplus due to strong capital 
inflow's and a revival in tourism at 
the end of August. Due to an excep- 
tional transfer abroad of SI 35 mil- 
lion by Solidere, however, the bal- 
ance of payments registered an over- 
all deficit of S27.2 million. 

“In the past year, we have had 

capital inflows of some $1.3 bil- 
lion,” says Nasser Saidi, vice gover- 
nor of the Banque du Liban. He says 
that the Solidere transfer after the 
public offering of shares at the end 
of last year was purely a technical 
anomaly affecting the balance of 
payments. He says that there has 
been a decline in imports so far this 
year. “This is a good sign following 
the buildup of stocks - a once and 
for all situation - in 1993,” he says. 
“We are now getting back to a more 
normal situation.” Tbe trade deficit 
fell by more than 20 percent at the 
end of July, to just under 250 billion 
Lebanese pounds ($149 million), 
compared with the same period in 
1993. As an indicator of economic 
activity, cement deliveries and con- 
struction permits in July rose by 35.6 
percent and 20 percent respectively, 
compared with 1993. 

Financial center 

The banking sector will be playing 
an increasingly important role in the 
development of Beirut as a financial 
center, which was its dominant role 
in the Middle East prior to the civil 
war. Total bank deposits exceeded 
$9 billion at the end of 1993. 

Lebanon is considerably over- 
banked. with 76 active commercial 
banks, four nonoperational ones, 
nine financial institutions and four 
specialized credit banks. 

“I think most of the h anks are on 
track to meet the 8 percent capital- 
asset ratio called for by the Basel 
Agreement,” says Mr. Saidi. “How- 
ever. some of them might find it use- 
ful to merge." 

Mr. Vaz says that the main chal- 
lenge now facing the banks is the de- 
velopment of the financial market. 
In the past, the banks had a monop- 
oly on the capital markets, but they 
are now facing several changes. 

“Competition will be very tough 
because non banks, which will have 
limited costs and infrastructure, will 
be abl. to compete on rates and 
commissions ” says Mr. Vaz. 

Foreign banks are now showing a 
greater interest in Lebanon. “Before, 
they used to not come here.” says 
Mr! Saidi. “The Dutch group ING is 
one of the latest to set up, and UBAF 
and Robert Fleming are opening rep- 
resentative offices. There are also a 
lot of others knocking on our doors, 
which is a good sign of confidence 
in us.” MJ. 

After 12 years of closure, Beirut’s bourse opens for busmes 

One of the most significant development 5 
on the economic and financial front is the re- 
opening of the Beirut Stock Exchange after a 
closure of almost 12 years. During the last 
three months, intensive discussions have 
been taking place between the Stock Ex- 
change Committee headed by Gabriel 
the central bank and the Ministry 

The exchange will be housed in a tempo- 
rary building in the Hamra district of th® 
city. The initial capitalization of the market 
is expected to be around $4 billion, of which 
more than $13 billion will be taken up by 
shares in Solidere, the construction group 
that will rebuild Beirut. These shares are 
currently the only ones traded through some 
of die banks. With the reopening of the mar- 
ket, about one dozen companies are expect- 
ed to be listed. 

One of region’s oldest exchanges 
Tbe Beirut Stock Exchange, one of the old- 
est in the Middle East, was established in 
1930. It was tun by the then-French adminis- 
tration; trade was conducted with joint stock 
com panies, which were also quoted on the 
Paris bourse. The bourse soon became the 
center of financial activity in the Levant. 
Until the civil war, winch began in the mid- 
1970s, it was one of the best run and regulat- 
ed markets in die Middle East. 

“Beirut has always been an open market 
and will remain so,” says Mr. Sehnaoui. 
adding that foreign companies will be able 
to seek a listing after tbe necessary legisla- 
tion has been adopted. Possible regulations 
now being examined include tax-free divi- 
dends, capital repatriation and no restriction 
on capital flows. 

Arthur Andersen has been advising the 
new market on a computerized trading sys- 
tem, which should lead to fast trading settle- 
ment. New accounting procedures are to be 
introduced next year for companies seeking 
a listing on the exchange. 

‘“There have to be more disclosures by 
companies, the balance sheet must be more 
open, and quarterly reports may have to be 
published.” say's Mr. Sehnaoui. In a recent 
report. Baring* Securities of London com- 
mented that the introduction of new trans- 
parency laws forcing companies to open 
their books may prove difficult “in a country 
that takes pride in its banking secrecy laws." 
Mr. Sehnaoui expects initial requests for list- 
ing to come from small and medium-sized 
companies wishing to increase their capital. 

Q^fkeh hotels may , m\leck ddmte details , 
m dm l . 

TEAM International 

Engineering and Management Consultants 

On the Occasion o( Lebanon's Independance Day reconfirms 
its commitment for reconstruction and development to its 
esteemed clients: 

Presidency of the Council of Ministers 

Council for Development and Reconstruction (CDR) 

Conseil Executit des Grands Projets (CEGP) 

Conceil Exdcutif des Grands Projets de la Ville de Beyrouth 

Ministry of Transport & Port of Beirut 

Radwan Center - Verdun - P.O.Box 145303 - Beirut 
Tel: 961 (1) 353458 - 353477 - Fax 353459 

Gabriel Sehnaoui: - Beirut wffl remain an open ; 

“I think the bigger companies will only seek 
a listing in order to gain some kind of credit 
rating,” he adds. 

Baring Securities, however, says that the 
stock exchange “will provide an important 
vehicle for Lebanese companies to raise cap- 
ital for expansion or upgrading. Tbe success 
of tbe S650 million Solidere issue, which, 
was 42 percent oversubscribed, has encour- 
aged many companies to take tins route. Al- 
ready, some of Lebanon's biggest compa- 
nies are planning primary issues for when 
the exchange opens.” 

Some of the companies due to upgrade 
their operations and to seek increased capi- 
talization include Ciments Libanais and Sib- 
line Cement. The Phoenicia Inter-Continen- 
tal Hotel may also raise some of its $178 
million refurbishment costs. 

Tbe opening may take place next month 
and will probably lead to an immediate in- 
crease in capital inflows. This is perceived 
by some as cause for concern unless 
Lebanon tightens its financial regulations to 
ensure that the market remains “clean.” 

This was the subject of much debate at a 
recent meeting in Beirut of the British Mid- . 
die East Law Council and the Beirut Bar As- 
sociation. “If Lebanon wants to grow into a 
sensible offshore financial-service center, it 
has to be seen to have the right safeguards,” 
said Philip Newhouse of Taylor, Joynson 
and Garrett. He warned authorities not to 
forget the importance of regulations in their 
eagerness to develop the market. 

Naoum M. Khattar, a member of the 
Beirut and Paris bar associations and an out- 
spoken critic of existing regulations, said at 
the conference dial lack of controls might at- 
tract money-laundering activities. He said 
milli ons of dollars could be transferred with- 
out question. “Here, a judge cannot summon 
you to disclose any information unless it is a 
case of death or bankruptcy,” he said. MJ*. 

“Lebanon Rebuilds* 1 

Your is our asset 

Allied Business Bank s.a.l. 

was produced in its entirety 

by the Advertising Department of the International Herald TrUhoie. ' 
Writers: Jordan-based Pamela Dougherty and Michael Frenchman, 
based in London, write often about Middle East issues. 
Program director: Bill Mahder. 



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Contractors with over 40 years 
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l So 




THE MONEY comes from 

IP* wipdfukdaig Sources forHonzpn2000. 



$10&5 milKotf i 
' $?30nriffion 

588.8 million 

$30naflian ' 
$36.9 uBJIipo 

$1755 trSBoa 

\ $1715 millioG 

$65 million • 


Food and ■ 

' A$rici>ltpBe Organization . 

‘ . $3.2 million 

AgjK^UiralDevelc^>0KiU " 



$15.2 million 

• : $5&4niSfion 

•. Germany:-' 

. $600,000 

. $388.7 m2 lion 

• : . > 

• ;3apari / . , ■ 

$L4 ririJEon ■ 

•Oman, - - ■ 

$15 million 

•Qatar- ■ . ' 

. . umhoa 

• -Syria 

,$V million' 

•United States 


Efectrifcity. housing and development ■ 
Roads, education and health, housmg 

Electricity, water, tdteeommunicafkxis. 
education and youth welfare 

" Housing and government buildings ■ 

Tekcommujtications, oil and gas, 

. health, education; youth welfare 

Electricity, water and waste disposal, 
education, housing 

Electricity, water,, waste .disposal 
‘ ports, education 

Water, waste disposal, education, 
. health, youth welfare 

Airport, education, culture, agriculture, 

Agriculture and irrigation 
Agriculture and irrigation 

Health, agriculture and irrigation, 

Electricity, telecommunications, water, 
and gas, ports, airports, education 

Electricity, telecommunications, water 
and watte disposal, transport and rail 
-- ways, airports, health and education 

Education, youth welfare, agriculture 
Education and culture 
Government buildings 
Housing . 


•' . • Sources: Boring Secmfxies and MEED 

B A N O N 

Rebuilding a Nation: Who’ll Foot the Bill? 

Altogether, it is estimated that more than $16 billion will be needed over the 10-year period of the Horizon 2000 program. 

Horizon 2000, Prime Minister 
Rafik Hariri's ambitious plan for the 
redevelopment of Lebanon’s war- 
tom economy and infrastructure, has 
gotten off to a slow start. 

The world’s financial community, 
however, has shown considerable 
interest in the launching of 
Lebanon’s first Eurobond for $400 
million, giving a much-needed kick- 
start to international funding opera- 
tions as well as showing confidence 
in Mr. Hariri’s policies. After the 
September cabinet budget meeting, 
Mr. Hariri said the bond issue was 
‘*a victory for Lebanon." The budget 
for 1995 has been fixed at 55 tril- 
lion Lebanese pounds ($3,273 bil- 
lion). Revenues are forecast at 3.145 
billion Lebanese pounds, which is 
expected to reduce the overall bud- 
get deficit to 42.75 percent, com- 
pared with 45 percent last year. 

Participating banks 
The Eurobond, lead-managed by 
Merrill Lynch International of Lon- 
don, was increased from an initial 
$150 million soon after launching. 
The 10.125 percent notes are due in 
1997. and an application has been 
made to list them on the Luxem- 

bourg Stock Exchange. Participating 
banks include Indosuez Capital. 
Paribas Capital Markets, J.P. Mor- 
gan Securities, Banque Audi- 
ts uisse), Banque Saradar France, 
Fran sa bank (France), Arab Bank; 
Bear, Steams Inti., Commerzbank 
Akfiengesellschaft, ING Bank, No- 
mura Inti.. Banque Banorient (Su- 
isse), Byblos Bank Belgium. 
Schroder Asseily & Co.. Bankers 
Trust Inti., Chase Investment Bank, 
Gulf Investment Corporation, Re- 
public New York (Britain) and Sa- 
lomon Brothers Inti, 

Capita] expenditure in 1994 is ex- 
pected to be around $1 billion. Dur- 
ing the 10-year plan, total costs at 
current prices will be $143 billion; a 
further $4.1 billion is slated to cover 
budget deficits during the initial two 
years so as to meet debt-repayment 

The Council for Development and 
Reconstruction has the primary re- 
sponsibility for Horizon 2000. CDR 
expects the private sector to invest 
$1 9 billion during the plan period. In 
its August report on Lebanon, 
Baring Securities estimates 
that with Lebanese assets « ; .i 
of $30 billion to $40 " v 

billion held overseas, “this seems an 
ambitious but not unrealistic figure.” 
According to Banque du Liban, 
more than $4 billion worth of over- 
seas capital has been remitted during 
the past two years. 

Total donor commitments for the 
initial three-year recovery program 
is about $l.b billion, of which $25 1 
million has still to be allocated. The 
largest single amount is $389 mil- 
lion from Italy, followed by $175 
million from the World Bank. An- 
other $920 million from various 
sources, including $160 million 
from the World Bank, is being nego- 

Dealing with snap 
Commenting on the funding. 
Mr. Hariri says that al- 
though Lebanon is 
trying to borrow • 

from various 

Arab - 1 , fr/i V"~ 

funds, '.'JP'i I 'f V 

f.-i Tfr 

$ 1 

.8 ■" 

! i'< •:/ 

ilM 1 

. ■ -V •••■ *• iijt • i 

. "f • ■ 

Prime Mhreter Rafik Hart* “A victory for 

the European Union and the World 
Bank, there are some snags. “Al- 
though the funds borrowed through 
these means are at lower interest 
rates and offer longer debt-servicing 
periods,” he says, “there are condi- 
tions on their use that increase the 
cost of projects executed under 
them." MJF. 

■ the matinf die developnumi and reconsowtion of 4,690,000 ajuun? mam of office, res&nrial. cultural, had and 
flBflWy 1,1 . . .L . Cmml District. 

The Lebanese Renaissance 


By any measure, the development and reconstruction of the Beirut Central District is a 
most challenging undertaking. Because Beirut is not so much being rebuilt as it is being 
reborn. Brought into life by what has been described as probably the major urban 
development project of the 1990s- SOLIDERE is an integral part of Lebanon’s current 
mood of positive thinking and economic recovery. 

To those who are participating in turning the vision into reality, the rewards are 
supreme. Experienced business knows that success is not merely good results. It is, rather, 
the integration of bold ideas into a workable proposition for all: organizing an 
international design competition for the reconstruction of the souks; unearthing 
Byzantine, Roman and Phoenician archeological findings that, for centuries, have laid 
dormant in the grounds within; undertaking major marine works on reclaimed lands, and 
massive infrastructure developments worth hundreds of millions of dollars. 

When a project is dedicated to the public and designed to improve the quality ot 
life, there is no room for compromise. SOLIDERE will rejuvenate che capital city through 
reconstructing a Mediterranean urban environment, restoring its architectural heritage, 
installing an archeological park and building tree-lined promenades along the sea front. 
This is the business of SOLIDERE, to start a new chapter in the life of this 3,000 - year - 
old - city, wit!? a total share capital of $ 1.82 billion, the resulr of the association of 
property right holders and investors. In January of this year, SOLIDERE enjoyed the vote 
of confidence of 20,000 investors, raising $ 650 million in cash. 

If by now you wish to know more, please 
write to SOLIDERE. You will soon realize 

that profit has never been more gratifying. g 



I -hanese Company for the Development and Reconstruction of Beirut Central District S.A.L Riad El Solh Street, Industry and Labor Bank Building, PO Box 1 19493, Beirut, tetanon. 
TO *- Tel (9611) 316882, 646120/1/2/3, Cellular 1 (212) 47S3916, Fax (961 1) 646124. 

Page U 


s c > r f n ft rn\ 

Banking in style: part of the oW facade of Banque AuO, which has batched an ambitious recruitment drive. 

Advantages of Doing Business in Lebanon 

A survey of incentives and advantages for companies setting up operations in Lebanon. 

EJeirut business executives 
are optimistic about the fu- 
ture of Lebanon as a primary 
offshore center for the East- 
ern Mediterranean and the 
Middle East. “We are ex- 
pecting many more compa- 
nies from outside Lebanon 
to come here because it is so 
much easier to manage a 
business from here than in 
other parts of the Middle 
East." says Najib A. MUcati, 
managing director of Invest- 
com Holdings and a member 
of the Chamber of Com- 
merce and Industry’s eco- 
nomic council. His compa- 
ny. which is involved in the 
telecommunications busi- 
ness. has already expanded 
operations outside of the 
country. “About 50 percent 
of our business is done out- 
side of Lebanon,’* says Mr. 

He admits that there are 

some difficulties at the mo- 
ment “while the infrastruc- 
ture is being developed,” but 
says that there will be oppor- 
tunities in the future. Both 
Mr. Mikati and Naoum M. 
Khartar, a leading lawyer in 
Beirut, feel that few people 
outside Lebanon are aware 
of the advantages and incen- 
tives for companies wishing 
to set up a base in Lebanon. 

Future in services 
Most business executives 
believe that the future eco- 
nomic development of the 
counny has to be in the ser- 
vices sector - banking and 
finance, offshore business 
and tourism. Maher Bey- 
doun, vice chairman of 
Solidere. the private compa- 
ny that is to rebuild the city 
center, comments on the 
lack of raw materials and 
natural resources needed to 

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create a successful industrial 
or manufacturing base. 

"Everything that is needed 
for any kind of processing or 
manufacturing operation has 
to be imported, and there is 
no point in that if we can im- 
port the finished goods or 
products at a cheaper price." 
says Mr. Beydoua. One 
great natural resource that 
does exist, he adds, is the 
Lebanese skill base in the 
professional classes. About 
80,000 Lebanese have re- 
turned from overseas in the 
past two years. 

Incentives and advantages 
Legislation for the formation 
of holding and offshore 
companies has been in place 
since 1983. The biggest in- 
centive introduced by the 
present government is the 
slashing of personal and cor- 
poration taxes to 10 percent 

The main incentives for 
companies incorporated in 
Lebanon include die follow- 

• A tax rate of 10 percent 
on profits, with no additional 

• A further reduction of 5 
percent tax on profits result- 
ing from buildings sold as 
apartments or from dwelling 

• Individual and partner- 


ship taxation set at a maxi- 
mum of 10 percent 

• Freedom of exchange 
and repatriation of capital. 

• The capital-gains tax is 6 
percent but gains on sales of 
shares are exempt 

• Branches of foreign com- 
panies are subject to Lebanese 
corpo ra ti o n tax plus a 5 percent 
withholding tax on net profits 
after distribution. Brandies of 
foreign companies carrying on 
business outside of Lebanon 
are exempt from corporation 

• No tax on operations car- 
ried out in the free zone. 

• No export or import du- 
ties on goods or materials 
used in die free zone. 

• Ten-year tax-free holi- 
day for new businesses with 
new products. 

• Seven-year tax-free holi- 
day for banks. 

Incentives for holding 
companies include the fol- 

• Profits and dividends of 
holding companies are tax 

• Management fees and 
other services rendered by 
the holding company to its 
subsidiaries in Lebanon are 
subject to a 12 percent tax. 

Offshore companies are 
offered the following incen- 


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Finance Takes Center Stage 

The country is set to regain 

its role as a regional financial center. 

• Profits of offshore com- 
panies are tax-exempt, but 
companies must pay a flat 
fee of I million Lebanese 
pounds (about $600). 

• No stamp duty on con- 

• Tax-free dividends. 
Secrecy laws 

A strength of the Lebanese 
financial sector is its secrecy 
laws governing banking pro- 
cedures; these laws are con- 
sidered among the toughest 
in the world. Numbered ac- 
counts are available where 
the customer's name is 
known only to the bank 
manager. Absolute secrecy 
is provided for in the 1956 
banking law, which states 
that there can be no disclo- 
sure in the private, public, 
military or judicial sectors 
without the written authority 
of the client or his or her 
heirs, except where the per- 
son has been declared bank- 
rupt or in the case of litiga- 
tion with a bank. 

“Doing Business in the 
Lebanon,” published jointly 
by the Beirut Chamber of 
Commerce and Industry and 
BDO Fiduciaire du Moyen- 
Orient (P.O. Box i 10-165, 
Beirut), provides some use- 
ful background to the legal 
business environment MJF. 

Lebanon has been known for successful 
financial services, and tes bankers have few 
doubts that the country can regain and ex- 
pand its role as a regional banking center. Ir 
we survived the war and prospered, we will 
survive die peace,” asserts Naaman Azhan. 
chairman of Banque du Uban et 1'Outre Mer 

Like most banks, BLOM moved most of 
its activities out of Lebanon during the war 
as a matter of survival. It found it was able to 
keep a good expatriate Lebanese and Arab 
client base and to grow steadily. Deposits 
have grown from $ 153 million in 1 974 to S2 
billion today. Mr. Azhari is confident that re- 
gional money will now flow to Lebanon for 
new investment, particularly after the suc- 
cess of the Solidere issue. 

Bankers agree that the sector retains the 
strengths that made it such a regional force 
in the 1970s. These strengths include a long 
tradition of secrecy, a liberal economic envi- 
ronment combined with strong centra] bank 
supervision, and staff whose skills have been 
sharpened by experience in Europe and die 
United States. 

At present, there is an imbalance between 
large and small players in the market, with 
25 banks taking around 80 percent of total 
deposits of S9.2 billion. A combination of 
central bank policy and market forces, how- 
ever, is likely to result in mergers over die 
next few years. 

For the past 20 years, the focus for the 
Jamrnal Trust bank has been on two of the 
world's largest cities, London and Cairo. 
Now. as the reconstruction gathers steam, it 
is turning its attention back home. Chairman 
Aii Jammai plans a major drive at home to 
establish new branches in the most remote 
areas of Lebanon. Mr. Jammai says that this 
will bring services to the people in poorly 
served areas and leave the bank well placed 
for new business as Lebanon’s development 
takes a more balanced geographical shape. 

The second strand in the bank's 1995 pro- 
gram will be to revive its contacts with the 
expatriate Lebanese communities in West 
Africa; these communities were the basis of 
the bank’s original strength. While Mr. Jam- 
raal does see a regional role for the Lebanese 
banks, he feels that if Lebanon is developed 
as planned, the country will remain at the 
center of attention for the foreseeable future. 

Search for new products 
Despite the strength and flexibility shown by 
the banking sector, activity is largely limited 
to short-term lending, mainly for trade, and 
banks are only now beginning to look for 
new products to attract investment capital 
and broaden services to customers. 

Money is coming into Lebanon for real es- 
tate activity, says Mr. Azhaari, but the need 

to increase Lebanon’s appeal for Arab in- 
vestment in industry, tourism and £ti«r pro- 
ductive sectors has prompted the bank to es- 
tablish its own investment arm under the 
name of Banque d'Affatres du Uban et 

F Outre Mer. _ .... 

Lebanon's oldest bank, Fransabank, »s tak- 
ing a different tack with the launching of die 
country’s first leasing company. The 
Lebanese Leasing Company is 75 percent- 
owned bv the bank in partnership with 
France’s Criidit Agricole and the IFC, with a 
small group of individual investors holding 
the remaining 25 percent. 

The response is good . 

Nadim Moukheiber, advisor to the chairman 
of Fransabank, says that funds available for 
investment are still limited and that more 
money is needed to fund reconstruction. 
LLC will cover a foil range of industrial and 
construction equipment from a value of 
$50,000 and above. Mr. Moukheiber says 
that 'as the first company in the market, LLC 
is already drawing a good response. It has 
had numerous applications, mostly from 
public-works contractors, hospitals, and 
printing-machine and computer-hardware 
dealers and users. 

While the banks are taking their first steps 
to develop new services. Capital and Invest- 
ment Services has successfully launched 
Lebanon’s first derivative product in the 
form of Lebanese Treasury-linked securities. . 
The first two securities of a planned series of 
up to 30 issues were launched in May. CIS 
General Manager Ghassan Geagea believes 
their acceptance by foreign financial circles 
will boost local confidence. 

Mr. Geagea says that CIS has devised a 
product to attract the big international funds 
being set up for the Middle East. Solidere 
has awakened international interest in 
Lebanon, and when CIS marketed the secu- 
rities to institutional and individual in- 
vestors, they attracted a mixture of expatri- 
ate Lebanese and institutional money. 

Mr. Geagea is one of the many Lebanese 
bankers who has returned home after years 
of working in Europe. He has no doubts 
about the niture. “You have to believe in 
your country,” he says. ‘"You have to believe 
that you can achieve something.” He points 
out that Lebanon's private economy and 
banking system have always been strong. 
With regional peace and stability, be adds, 
money wfllfae available. 

CIS is looking ahead to new develop- 
ments, including a leasing company and fi- 
nancing for the low-income housing sector. 
Farther down the line, Mr. Geagea sees a 
key role for the financial sector in supporting 
the government’s privatization plans. 

~ PJD. 

It is far easier to use a cellu- 
lar-phone link via a New 
York number to call almost 
anywhere in the world than 
it is to use a local telephone 
to talk to a neighboring of- 
fice in downtown Beirut. 
This situation may soon 
come to end. 

As part of Prime Minister 
Rafik Hariri’s policy of 
making Beirut the leading 
Middle East business center, 
maximum priority is now 
being given to restoring die 
country's telecommunica- 
tions network. Considerable 
strides have already been 
made in the past 12 months 
since work began on repair- 
ing and extending the two 
main exchanges. 

Existing mechanical lines 
are gradually being replaced 
by mainly digital systems, 
including 800,000 new digi- 
tal lines; this will provide the 

country with a total of 1.2 
million lines. The contract 
value for the project is more 
than S500 million. Broken 
up into several parts, the 
contract has been awarded to 
Siemens, Alcatel and Erics- 
son. Much of the project will 
be completed by the end of 

Alcatel has a $130.7 mil- 
lion contract to repair 
225,000 lines and provide 
fiber-optic cables, digital 
links and microwave sys- 

Ericsson has a $147 mil- 
lion contract to provide 
225,000 lines, and Siemens 
has won a $ 153 million con- 
tract to set up a local net- 
work of 350,000 lines. 

The refurbishment of the 
telecommunications net- 
work is being managed by 
Norway’s Norconsuit, 
which won the $13 million 


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contract in the face of stiff 
competition. Jarle Strand, 
Norconsult’s regional man- 
ager in Beirut, says that his 
company had the edge over 
others probably ‘’because we 
are truly independent and no 
longer have a telecommuni- 
cations industry in Norway." 

France Telecom and have 
won contracts for a privately 
financed 600,000-line cellu- 
lar global system for mobile 
(GSM) telephones in one of 
the first build-operate-frans- 
fer contracts. France Tele- 
com has a BOT contract val- 
ued at $30 million to cover 
the installation of 250,000 

Approximately 6,000 sub- 
scribers will be on line with 
the new GSM within the 
next six months. Lionel 
Coussi of France Telecom in 
Beirut says he hopes to be 
able to offer GSM coverage 
oyer 70 percent of Lebanon 
within six months and over 
the whole country by the end 
of next year. Ericsson is pro- 
viding half of the 100 base 
stations that will be needed. 

BOT contracts 
The start-up rime for the 
BOT contract is likely to be 
in December. “This is a very 
rare kind of contract and one 
of the first of this size,” says 
Mr. Coussi. adding that one 
of the risks is the fast-chang- 
ing telecommunications 
technology. Equipment pro- 
vided today could become 
obsolete in 10 years. 

Speaking of the cellular- 
phone sector. Ghassan Assi, 
marketing manager for 
Libancell, says that it is 
challenging to introduce 
21st-century technology into 
a situation where even con- 
ventional services have been 
erratic for the past 20 years. 
With two companies enter- 
ing the market together, Mr. 
Assi is_ (poking to strong 
competition — not in basic 
prices, which have been set 
by the government, but in 
the provision of enhanced 
services. He also looks for- 
ward to the strengthening of 
the fixed line network, 
which will open up new pos- 
sibilities for advanced ser- 
vices between mobiles and 
fixed lines, including E-mail 
and calling line identifies- ' 






Pace 19 

Beirut: New Twist on Old Center 

_ Charged it ith rebuilding the capital s centred district. Solidere now stands at the heart of Beirut. 

for ftfiSSEST* ! rict wi .M be- substantially 
-fieebnstroction of rhkiL? 1 ^ ihe previous one. 

KraSct ^oS develop- 

Sofidere, was S c has ' grov/n from 

.^Kt; „ yiHiwiy es- i .2 milhotj square 1 meters 
tab! i shed as a joint-stock ...(-about mHiinn 
ctSporanon m May 1994 if L Ptk m i « e ' 

K rlwropH u,Uk »k Yw,J r . Tee U lo 18 n*"«on square 
I ^ b . ln,< |- meters with the addition of 

ing of Beirut's central 'busi- 
ness district, the, scene of 
somc^ of the worst 'destruc- 
tion .during the civil war.. 
“This is the place that all 
Lebanese. relate to more than 
ahywhere else." says Solid- 
ere Chairman and General 
Manager Nasser Chammaa. 

: Planning and replanning 
for the project has been un- 
derway for three years, and 
the company is now anxious 
tb gel to work “We want this 
place to be attractive and 
habitable within three 
years,” says Mr. Chammaa. 

The new central business 
district will not be just a 
faithful restoration of the old 
one! For a start, the new dis- 

part of a major reclamation 
project, now under way on a 
. former, rubbish dump' on the 
seafront. ■ 

Consultants Dar A! Han- 
dasah have been involved in' 
the Solidere project since its 
inception. The company was 
commissioned in February 
1991 by the Council for De- 
velopment and Reconstruc- 
tion to prepare an overall 
master plan for the central 
district. Robert Solomon, di- 
rector of Dar A1 Handasah’s- 
economic department, says 
that the company “wanted to 
establish a framework for 
private-sector activity that 
would keep the features of 
the old. city, open up its ar- 

A new apartmerdinBeinJt can cost from SltXKOOOto ff/nBtiori 

chaeological remains and 
-maintain its established 

Modem urban planning 
. The new center will incorpo- 
rate the highest standards of 
modern, urban planning in 
areas such as Fire and seis- 
mic safety as well as ease of 
access for traffic and pedes- 
trians. With" the creation of 
“vistas” that open the city 
streets to views of both sea 
and mountains, and the in- 
troduction of parks, marinas 
and seafront walks, the com- 
pany hopes to give Lhe city a 
feeling of space and comfort 
that .wifi make it unique as a 
. modem urban center. 

- The overall reconstruction 
■ is expected to take 10 years, 
hut a first phase is already 
under way. Bulldozers are at 
work to clear buildings that 
cannot be saved, in prepara- 
tion for a $60 million project 
lo give the area a complete 
infrastructure upgrade. 

Solidere has earmarked 
five 1920s buildings for im- 
mediate restoration to give 
private owners a lead. Over- 
all, 260 buildings have been 
marked for rehabilitation. To 
prevent owners from hold- 
ing on lo buildings for spec- 
. ulative purposes, they have 
two years to restore the fa- 
cades to prewar standards. A 
major tender has also been 
-. issued -for work, on seawalls 
to protect the new reclama- 
tion areas. 

On a human scale 
What the company and the 
■ people of Beirut are hoping 
for is a city center that retains 
the flavor and human scale 
of the old* with infrastructure 
and amenities to suit the 2 1 st 

| “This is not just am piece 
| of land," says Ramez Maluf, 
I Solidere’ s public informa- 
I tion officer. “It is the heart of 
| the city, the meeting point 
3 for all of Lebanon's commu- 
a nrties and the essential place 
ft for anyone wanting to do 
business with all sides ” 

. In establishing a single 
private company to carry out 
the reconstruction; planners 
took a daring approach to 
the problems of complex 
ownership of the area and 
the scale of the work needed. 
Not all Lebanese agree with 
this approach; the project's 
detractors range from, dis- 
gruntled former owners . to. 
religious opponents of any 
form of property, confisca-. 
tion. Others are just uhcer- . 
tain about the size and ambi- 
tion of the scheme, although 
Solidere has invested con-, 
siderable time and effort in 
public presentations and. dis- . 
cushions of its ideas and 
plans. . 

Three in one 

The company has also had 
lo maintain flexibility in its 
planning approach. A major 
international competition for 
a design for the restoration 
of the traditional souks of 
Beirut brought hundreds of 
entries but no first-prize 
winner, just thrice third 

“Between them, they of- 
fered us an architectural 
statement, an effort to recap- 
ture the spirit of the city with 
a mix of old and new and a 
practical response to the 
need for modern facilities 
and access." says Mr. -Maluf. 
“We wanted all three tn 
one.” He hopes the three 
third-place winners can now 
work together on a new 
scheme that will fit the: bill. 

The proof of the entire un- 
dertaking can only come 
with its success in getting 
work started on the ground. 
Solidere is very aware of the 
rapidly changing regional 
situation and wants results 
as soon as possible. “Our 
greatest fear is that we will 
not get the infrastructure 
done in time.” says Mr. 
Chammaa. "The eyes of lhe 
whole country are on this 
project. If we succeed, if will 
be a major contribution to 
the recovery - Lebanon." 

Pamela Dougherty 

The gfitter is back: New businesses are sprouting alf over the country, many based on strong points such as clothing and fine jewelry. 

Industry Fights to Secure Its Hold 

Lebanon is known far its service-based economy, but industry is regaining its strength. 

L/ebanese industrialists have been 
Fighting hard for their sector - and they 
are -having some success. Industrial ex- 
ports in the first half of 1994 reached 
$138 million, a rise of 5.6 percent over 
the same period in 1993. An estimated 
35 percent of all factories have been re- 
equipped since the end of the war. Also 
coming on-line are new enterprises, 
most of which build on Lebanon’s tra- 
ditional- strengths in ready-made cloth- 
ing. food processing, pharmaceuticals; 
building materials, printing, packaging 
and quality jewelry. 

Jacques .Sarraf, president of the 
Lebanese Industrialists Association, is 
in a confident mood. Even in a service 
economy, he says, there has to be an in- 
dustrial base. Mr. Sarraf s viewpoint is 
backed up by the experience of major 
tile producer Uniceramic. Elie Sassine. 
the company's purchasing manager, 
says that three years ago. 15 percent of 
the company’s 1 5-million-square-me- 
ter 1 16-miHion-square-foot) annual 
production went to the local market. 
Now, as the rebuilding process gathers 
steam, 40 percent of its current 3-mil- 
lion-square-meter production is sold at 
home. The company aims to increase 
local sales to 75 percent of production. 

Companies are only beginning to re- 
cover from the effects of the war. Man- 
ifesting traditional Lebanese resilience, 
many companies were quick to relocate 
as fighting broke out; they continued to 
produce and export throughout the con- 
flict. Nevertheless, as many as 200 en- 
terprises were destroyed in 1989-90 

Access to credit is tight as banks still 
offer only short-term and mainly trade 
finance. The situation should improve 
with the reorganization of the formerly 
government-owned Industrial Devel- 
opment Bank. IDB will have 80 per- 
cent private-sector ownership, but the 
government will guarantee loans up to 
20 times its $20^million capital. The 
JFC is also showing confidence in 
Lebanon and has provided substantial 
funding lo industry over the past year. 

Profiting from peace 

Peace and stability have brought indus- 
try a unified internal market, belter ac- 
cess to international markets and- the 
gradual return of skilled workers. In- 
dustrialists would like more govern- 
ment support lor the sector, possibly 
through a reformed customs regime. At 
present*- imports are assessed againsra 

dollar valued at SOU Lebanese pounds; 
the market rate is 1.680 Lebanese 
pounds, thus undervaluing imports for 
customs purposes. 

Uniceramic President Joseph Ghorra 
is concerned with standards. He would 
like to see standards set for both local 
and imported goods. This would help 
local products find better export mar- 
kets and end the dumping of substan- 
dard foreign goods. 

The government has been quick to 
act in some areas. In 1993. when 
Lebanon's cement companies were 
struggling to keep up with demand, it 
contracted major cement handler Sea- 
menl lo provide 1.5 million tons of ce- 
ment for the market. Using a floating 
terminal at Selaatu. north of Beirut, and 
a Reel of 1 2 bulk carriers, Seameni will 
bring in and distribute 500.000 tons of 
cement by the end of 1994. thus guar- 
anteeing supplv and stabilizing prices. 

Demand for 1995 is “anybody's 
guess.” says Seumeni Managing Direc- 
tor Jacques Schnaoui. "but the essence 
of the business is to walk in and supplv 
in areas where business cannot wait for 
the start-up or expansion of a plant. iVe 
could prov ide IW/UO tons per dux if 
needed.” **•!*• 

?; ^ r 

• J i V '• 

-r -‘ - ' " *■" - y 

' r r ■ :r:AMC 

i f ;Mi W 

r: r* t r ? f £ ? P 

r •' «. f- i i / f | r v- 

_r jJ ■ \ y 

Since die- late sixties. Seamen ds fleet of specialized cement 
carriers and float ini’ cement terminals nave been sailing 
around the work! supplying countries experiencing cement shortages. 
Sea ment is the fastest and most efficient answer to a cement crisis. 

c.iuaei m. tv.- -e. 

l.F.liVN'OY O • 


Page 20 


Qne.ofthe 11 mosques and other 
inokBngs in the dty center that are 
to be preserved. 

z mtm Ji ip 



' $16 Billion Blueprint for Next Century 

A survey of Horizon 2(M)Q's ambitious yotils and projects . 

'Lebanon's Council for Development and Reconstruction | 
(CDR ) has a simple brief - rebuild Lebanon well ;ind quick- i 
ly and at a cast that will nut leave the country overburdened 
by debt. ' 5 

. The. CDR was established in 1977. but it really came to ’ 
litfc- with die appointment of Rafik Hariri as prime minister in I 
1992. Its original job of overseeing the rehabilitation of •; 
Lebanon's physical infrastructure was quickly expanded to j 
include the formulation of an ambitious scheme. Horizon i 
2000. The project will equip the entire country with an infra- j 
structure tor the 2 1st. century, rebuild government admin is- i 
trative capacities and create the social infrastructure needed 
to produce an educated and united population. ' 1 

project to provide seven villages in the Akhcr district with 
electricity for the first time in their history.- - 

Sectoral rebuilding 

The CDR plays a unique role as both a planning and imple- 
menting agency, cutting across the traditional responsibili- 
des of government ministries. Seventeen years of war Jiave 
left Lebanon's government structures as well as its buildings 
in mins. The sectoral rebuilding now under way is accompa- 
nied by the establishment of sector-implementation units, 
whose job is to oversee the construction work and to develop 
new administrative .structures for each ministry. 

Horizon 20t HI has gone through several stages, but it is 
currently being presented ro Parliament as a $16 billion pro- 
gram beginning in 1995 and running until the year 2007: 
several of the projects included in iL however, arc already 
being implemented. 

CDR Secretary General Nohad Baroudi says that as 1994 
ends, more than 4tXl contracts for consultancy and construc- 
tion. worth around $1.7 billion, have already been signed; a 
further $2.7 billion worth of work will be contracted by May' 
1995. . . 

Projects range front the massive S5S0 million rehabiliu^ 
lion and expansion of the fixed-telephone network and the 
$515 million Beirut peripheral-roads scheme to a $7 million 

Benefits already felt 

The program combines urgently needed rehabilitation with 
long-term development. Mr. Baroudi says that benefits are 
already being fell. Electricity supply has improved from an 
average of 12 hours a day to 15 hours a day. and it should 
reach 18 hours daily once’ a $263 million rehabilitation pro- 
ject is completed in May 1995. Telephone connections are 
improving, and hundreds of schools have been rehabilitated. 

The most recent study to be completed is for the $ 1 J bil- 
lion Public Schools Regrouping, which provides for 1,526 
new schools in 766 locations to serve the needs of 800,000 
children at all levels, from preschool to secondary. The 
schools will be located in scientifically studied catchment ar- 
eas to ensure that every' child has access to quality education 
at a distance of no more than 20 minutes by foot from home. 

The ambitions of Horizon 2000 have caused controversy, 
particularly on the grounds of its cost. Lebanon has never 
had a tradition of strong government involvement in the 
economy and development. Consequently, public debt levels 
have been low; they currently stand at only 5330 million. 

Figures of $16 billion frighten many Lebanese, who fear 
that their country could be embarking on the traditional 
Third World path to crippling indebtedness. Mr. Baroudi 
counters such fears with reference to the care taken to ensure 
that the bulk of the cost will be covered by local revenues; he 
also cites the CDR's w illingness to extend the lead time, of 
major projects to ease the pressure on public finances. He 
emphasizes that a fundamental goal of the entire program is 
to get the private sector going at full speed. “The private sec- 
tor has always generated 85 percent to 90 percent of 
Lebanon’s national income." he says. "We want to see the 
government's $16 billion matched by douhlc that amount in 
private money." * P.D. 


An opportunity knocks at the door. L;bance!L in association with Telecom Finland 
International, provides the new GSM digital cellular telephony services in 
Lebanon.- Considering the unprecedented benefits of a communication sen/ice 
that'll make your iife easier to live, what better way to greet it than "Hello"? 


_ d -Sg 

Getting Airlines 
Off the Ground 

Lebanon s airlines, like its economy, begin to take off. 

e have started losing 
time, and time is of the 
essence in aviation.” says 
Abdel Hamid Fakhoury. 
chairman and president of 
Middle East Airlines 
{ ME A?. After 20 years of 
the disruptions of war. Mr. 
Fakhoury is impatient to 
move on and see the airline 
regain its role in the region. 
•‘We must not use the war ns 
an excuse for what is hap- 
pening now.” he says. "We 
have to get back to our old 
level of quality,” 

MEA faces serious hur- 
dles in achieving that goal, 
not the least of which are the 
accumulated losses of $220 
million and an- aging fleet. 
Passenger numbers are im- 
proving, rising by 12 per- 
cent in 1993 to reach 
800,000, but.they are still far 
from the 1975 "total of L5 
million. Meanwhile; lower- 
than-expected growth and 
strong competition in 1994 
have left the airline facing a 
further S 1 0 million loss. 

■ The MEA board has now 
gone to its shareholders for a 
$150 million injection of 
capital. Shareholders in- 
clude Air France, the Intra 
Investment Company (45 
percent owned by the 
Lebanese government), and 
Kuwaiti and Qatari interests. 
The money is needed to up- 
grade a fleet that consists of 
10 707s, now seriously un- 
economic by modern stan- 
dards. three 747s and two 
Airbus 320s^ 

Tapping the expatriates 
The airline has prepared a 
development plan that in- 
cludes tapping the mujor ex- 
patriate Lebanese markets in 
the United States. South 
America and Australia. 
MEA is keen to see an end 
to the current UJS. ban on its 
flights to New York. 

With modem aircraft and 
the re-opening of profitable 
routes, Mr. Fakhourv sees a 

bright future for the carrier. 
“We have a very skilled 
staff and can draw on our 
years of experience,” he 
says. For Mr. Fakhoury. 
MEA's ultimate strength 
will be that of Lebanon it- 
self. “On the assumption 
that Lebanon will again be a 
tremendous business center, 
coupled with its tourism ca- 
pabilities. I believe we can 
regain our place;” he say's. 

Renewed confidence 
Mr. Fakhoury’ s confidence 
in the future of Lebanon is 
shared by the newly estab- 
lished British Mediterranean 
Airways. The company is 
very new: Its inaugural 
flight was on Oct. 24. It has 
one aircraft and just one 
route, London-Beirui, but it 
is already looking to a future 
as a regional earner. 

BMA Lebanon Manager 
Marwan Koleilal says the 
company will take delivery 
of u second-Airbus in March 
1995 and already has eyes 
or Amman;- Damascus, 
Cairo and other Arab capi- 
tals for future expansion. 

Competition' once again 
BMA is hoping to meet 
competition from other car- 
riers. which will include the 
return of British Airways, 
with its quality services. U is 
offering a .Presidential First 
class, a Premier Business 
class and Premium Econo- 
my class, all with an empha- 
sis on spacious seating. 

Mr. Koleirar is not inter- 
ested in price cutting, which 
he sees as damaging to all 
carriers, but current trends 
suggest that he may have no 
choice. MEA's Mr. 
Fakhoury says price compe- 
tition in the region is already 
fierce, and a recent MEA 
decision to cut $100 off its 
London economy flight 
price was followed within 
hours by all carriers serving 
the Lebanese capital. P.D. 


71 m* fm/iuil for 1*ruiuiuiH'til .inti Kmnntmlhn is rvsponsL 
hlr 6r iretmslnirUna In Mstvitfs Ihmufftnuil U'hunon Hy V*- 
l ember l!Vf4. Si 7 billion north of t out mils luul been signed, 
.until Inrlbtr S ;t.1 hllllim should hr signrtl by Hip l/W*. 

W ;»/or /wri/i vis include the Itilhin Inn 



KmrrewiO rvliuWlllJiliiHi til existing ft ‘ uni pi. mis. Imns- 
Mis-slon s\ stems .iml networks. Snsnhlo of Italy has 

a i.Minnxl fur approximately tit to inepawntls to (lute. rising in 
7.“iO mc&mutis to Vprfl «itnf in 1 .Iffio nieftmoits In March 
UWj. \;i!ikv SMmifllon. 

Transmission sistna in In* rehabilitated by end lfciirh KBfK 
Contract In Hyundai of Si Hilli Korea. \olne: SHu million. 

PixlriiNiihif! networks tin*; iter Beirut contract In CJcmessy. 
\ahio- $42 million. iiuiinnl lo Htmyft's of France. \ al- 

ar: $.71 nillMini. WmHi due fur iiwnpirliun In March 

(k-nernHnn Corttrads arc rim* lor the construction ul lu« mu 
cnmhincri-ixrle enirniline plants «il Zahroul and Bcdrinwl. Dm* 
for (VKO(iiciion lij Junr'iiKiT. Ihey will aiM another H70 
mrgmuMN. ViilniT S720 mUhm. ' 

Transmission and riisirtbntion. Omir.niors have l«i*n boiled 
to pmjualify for the cximnstmi of I he transmission system. Ksil- 
mntert value: S2ttfl million (o $2.1/1 million. 

( insult ancirs 

Sccior Implementation ( 'nil. Hie Ktectrlrtty Supply Hoard ol 
Ireland has a $4 million contract to assist Rlcdrteite du I •Hum 
(KdL.) 4n itu* planning and manaacmcnl of (lie investment i«v»- 
eram for Uic ch'drklly sccior. 

Supervision of works. Bedricftc (ft* Flraniv (Klin has a Sfi.K 
million contract fnr supervision oT rehabilitation rontracts for all 
electrical sedors 

.\KuistiUuv to KilL nuinue*tiu*ni. KUK has a $3.H million con- 
tend lo assisi Kill, in nrftuihdn£ and dcveftiiiing new business 
p men lures. 

RetiabiUlallon and Kvpanslon 

J’uWic SwJtchcd Tciephonc NrtworW Il'STN) rehahUlinlion anil 
expansion. Supply and installation of ilUdtnl cM , hanft , s for a total 
oT!f7i».(NXI lines, including 27 1.00M lines In Itciml .North ( Ucalrl 
till*): 2HJ.UD0 lines Soulh. HckiUi. Ml. [sdiaitoii I (Mricsson): 
42 1 .01 JO lines ISelnu. Ml. I^dvuion 11 and ill (Sinnens). 

Transmission ami luitsiih* |d;ntt lor l*$TN iHuptH. Coni rads 
auankxi to Mralrl »rf Fraud*. Krhsson of Siu*th*n and Siemens 
ofCermany.Xalue: $-1110.7 million. 

Clniiai System tor Mobile Communication. Coni nets were 
slftieit In July ISfM with France Telecom Mobiles und Telecom 
Unkind {ntcmaiional. ritfcnition will lake place through operat- 
ing companies formccTwIlh local investors. TP1 has forrawl 
MhamrlJ S.U u and fTlil has estohlbdied Fntmv Telecom Mo* 
biles Lilian SM. (I*TMI,|. Contracts are »<»T (liulld-opernlc- 
transfer) fora of (2 years, with birth mni)Ktnies required 
to provliie eaiuu ily lor IIIMMHI sniiscrUxTS alter six months. 
Cnusull ancles 

IhriKiralion of lemfa*r ilnuunenis and supervision of works tor 
thefSTN and Hit* (ISM. \omnrsull ol Norway has a Sill mlllhm 
eiKitrad for Iwti years Inmi .Inly IlMCt. 

Slmh of the orftini/.iUonal stiwlurr. reftikHhms ami (inure 
Instil nth null seliiji of Ihc irlcmminHuUMthms si'dor, Britain's 
Iteloiie & TouHie tuts a SI .!» million conlrjcl for the study. 

Maji;ift'nii'i)l of Ihc icleriimniiinltvillons sector lor Ibree 
years. NeftHii'ilions are unthT way lor an estimated $r> milt ton 


m*< 1 \so h t n s ] rrioN 





! . ■ 

. -’nvt’v* . — ; 










Northern and Southern 
Beirut suburbs. Design con- 
tracla were awarded to two lo- 
cal consultants in October 
1993. Seventeen works con- 
tract* worth $80 million have 
been awarded. 

Beirut circular rouLe and 
access roads. Design con- 
tracts were, awarded in De- 
cember 1993. Total value or 
the project Is estimated at 
$515 million. 

Consultancy contract for 
supervision oT works. Awarded 
to Dar Al Handasah (Shalr & 
Partners), value $4.7 million: 
ACE. value $4 million: and 
.Khatib & Alami. value $4.4 

Road maintenance and re- 
habilitation or Lebanon road 
network. Proposals for toe Ini- 
tial $335 million flve-year pJnn 
are under study. Funding will 
come partially from the World 


New west runway and main 
buildings, duty-free area and 
airport hotel. Jidni venture uf 
Consolidated Contractors 
Company of Lebanon and 
Hoebtler of Germany. Value: 
$555 million. 

New east runway. Contract 
to Karagula of Lebanon. Value: 
$14 million. 

Consultancy for design and 
supervision for completion or 
passenger terminal, new radi- 
ates and new runway works. 
Awarded to Dar Al Handasah. 
VaJui* $13 million. 

Beirut Pert 

Design for port storage ar- 
. eas. buildings and services. 
Consortium of Raflc Klioury. 
Alexander Gibb. Duvlvter. Part 
of Felixtmve, DellL 
Marine works design. By 
SOGREAH. Purl of Brest. Pro- 
jtrl value: $123 million. 

Consultancy conlrncL for 
supervision or works. Awarded 
lo Port Aulnnnme de Marseille 
oT France. Value: $1.5 mililuo. 


Sector Implementation Unit. 
Denmark's Dan Group has a 
$2.7 million, three-year con- 
tract for consultancy to en- 
hance the management capac- 
ity or the Ministry of Public 
Works for public buildings and 
rnarfe projects Iran May 7994. 

Year 1 .rehabilitation con- 
tracts. Id progress throughout 
Lebanon to repair the most 
serious damage to water and . 
sewerage systems. Due Tor 
completion by May 1995. 

RehahllitaUnn and extension 
of Dbaye water-treatment 
works. Year II and ill water and 
wastewater rehabilitation 

works inside and outside Beirut 
arc under stoily. value of wist 
estimated at $ Mil million 
Ghadlr waste-water treat- 
ment plant. Lelianuifs Ace has 
a $632,000 contend for the 
design and supervision or the 
Plan*- Construction Is due for 
compieUoo by end 1995, 
Feasibility studies for Tjre. 
Saida and Kesrouao waste- 
water networks and treatment 
plants. Construction lo start 
by end 1995 or early 1996. 

Irrigation works. Diie to be- 
gin early 1995 on schemes in 
Oasmfeh ($8 million) Yam- 
mouneh ($6.3 million 1 and 
the southern Bekaa ($ 1 3.6 
million). Some 25 smaller Irri- 
gation schemes with a total 
value of $15.5 million are also 
scheduled lo start In 1995. 

Sector implementation unit. 
Brl Iain's Blnnle & Partners 
has a $6.4 million contract. 

Rehabilitation of puhlic 
schools is an ongoing pro- 
gram. Involving work at more 
than 1 ,2(KI schools al a cost of 
more than $44 niilllun. 

Public schools grouping 
pnilecL A master plan for the 
regrouping and overhaul of the 
public-school system has been 
completed by the local Samir 
Khairallah & Parluers. The 
$1.3 billion program will pro- 
vide places for 800.0U0 stn- 
dents al all levels, from 
kindergarten to secondary 
school, and will involve the 
provision of I.52G new 
schools In 766 locations. 

Spnrls city. The $58 million 
llrsi pliase of reconstruction 
was awarded lo Britain's 
Trafalgar House In August 
1994 and is due tor comple- 
tion In early I99G. A $63 mil- 
lion second phase Is planned 
to begin In 1995. 

Lebanese University. A 
$10.9 million contract has 
been awarded tor the rehablli- j 
Litton uf Ihe faculty of science, j 

Beirut Governmental [ini- j 
versify Hospital. Design work i 
comiHeietl by Sptrlnim. Ten- 
ders have been Issued tor con- j 
slructlon work, estimated at : 
around $53.5 millkm. 

Hal bn. Hernial and Slbllne 
hospitals Consultants have 
been appointed for design and 
supervision. Construction con- 
tracts are expected by end 
IffiHjc.carty 1995. with work 
toT»F completed within 18 

Hospital Eipilpmeul. The lo- 
cal company Acc has a con- 
tract for the preparation of j 
lender documents tor equip- j 
raent for the Qaranilna host*- j 
lal. Tripoli hospital, health ■ 
centers la north Lebanon and i 
a beallh training center. P.B. j 




H.O.: Verdun JAMMALTRUST Bldg S.A.L. 
Phone number: 800360/2 - 860230 * 864170 
P.O.BOX 1 1/5640. Beirut - Lebanon 
Telex: 20959 JAMTBK LE / Fax: 864170 - 860230 



jwniml frost bank SAL. 

Chamui / Gcrsra! Mofugif Ml M V nirt/1/J 

H.O.: V«dun - -'anvrii 1A* 3 W23C • 864 W - SXW^I/2 
Tetef- 20939 ■ 20953 

Ventrr^aJl - 6J3r&7r,’£f7 - SC3JW - TeJe- 2,,a2 
Ohm 830179-830)02 ■ B30134 

3wj el -Bratneh. 389103 -83G3H 

Clara: 360937 - 262935 - 869154 ■ Telcr 23454 

IWIanu 303958-304462-3^24 

7«*S 621 229 - 863158 ■ 440830 ' ' ^S2 
Sa-tfc . 72CM64.S - 869 1 48 - Tefc« 2097 1 

Tyt 74116<yi -B69147 
Baaticc* ■ 822965 - (366234 
Ghareh 771323 
NaMWi 761323 - 761004 

Found e2508i-fiesrw 
Boss. 741099 
joeiau - Sou* Lebanon: 

Karo ■ Soulti Lebanon 

As Tourists Return, 
Hotels Prepare 
For Brisk Business 

Lebanon’s hotels undergo extensive restoration. 

X_/ast month, an interna- blocks managed by many of 
tional construction exhibi- the Internationa] chains. To- 
tion called ‘"Rebuild day. hotels like the Hilton 
Lebanon’' attracted 230 and Inter-Continental 
companies from 26 nations. Phoenicia remain towering 
More than 10,000 persons wrecks. Work on a $178 
visited the show, which was million refurbishment of the 
organized by Fairs and Exhi- Inter-Continental is expect- 
ations of London. As a re- ed to begin shortly, after 
suit, Beirut's four- and five- many delays, 
star hotels, which have a lo- One hotel on the seafront 
tal of only about 1.000 that is open for business is 
rooms, were filled locapaci- the Riviera (125 rooms), 
ty, demonstrating the des- The Bristol with its bunker- 
perate need for more accom- like restaurant in the base- 
modation. menu kepi going through the 

“Exhibitions like this are thick and thin of the civil 
terribly important for us," war. Now under new man- 
says Wahid Raja Saab, ager Raoul Schallig, it is re- 
chairman and general man- inventing itself as a luxuri- 
ager of the seafront Sum- ous business and tourist ho- 
merland Hotel, currently the lei as well as a smart meet- 
most luxurious of the city's ing place for Beirut society, 
traditional hotels. ‘"I do not The hotel is undergoing a 
think there are any new ho- multimillion-doliar refur- 
tels being planned for the bishment. The number of 
immediate future, but many rooms will drop, from 180 to 
of the old ones are being 140. as more suites and big- 
renovaied and restored." ger rooms are created. “In 
Widi its large pool, private today's world, with so many 
beach and small shopping sleeping factories, people 
plaza, the Summerland is a appreciate small jewels 
world of its own. It has strict where guests are pampered," 
security at the driveway en- says Mr. Schallig. 
trance. The Bristol offers business 

Trickling in 

With the return of normality 
io the city and most of the 
country, there is now a 
steady trickle of tourists, 
who come mainly from 
France. Germany, Italy and 
Russia. Before the civil war, 
tourism contributed about 20 
percent of the gross national 

The number of tourists is 
expected to increase as vari- 
ous international cultural 
events take place. The most 
famous of these is the annual 
Baalbeck Festival. 

Smaller events are being 
staged at the Al Bustan Ho- 
le f located high in the 
mouniains. i: has one of the 
most i-O'.ia.tilar views of 
Beirut :ro.i: ::*.. Scottish Bar. 
Last Fetvu-y’s Internation- 
al Festival of Performing 
Arts was a sell-out, and 
plans arc well advanced for 
next year’s festival. The Al 
Bustir. He::! ha* $4 looms, 
and its combined convention 
facilities can accommodate 
up to 1,000 persons. 

Expensive roams 

The Beirut seafront was 

dominated by high-rise hotel 

blocks managed by many of 
the international chains. To- 
day. hotels like the Hilton 
and Inter-Continental 
Phoenicia remain towering 
wrecks. Work on a $178 
million refurbishment of the 
Inter-Continental is expect- 
ed to begin shortly, after 
many delays. 

One hotel on the seafront 
that is open for business is 
the Riviera (125 rooms). 
The Bristol with its bunker- 
like restaurant in the base- 
ment. kepi going through the 
thick and thin of the civil 
war. Now under new man- 
ager Raoul Schallig, it is re- 
inventing itself as a luxuri- 
ous business and tourist ho- 
tel as well as a smart meet- 
ing place for Beirut society. 
The hotel is undergoing a 
multimillion-doliar refur- 
bishment. The number of 
rooms will drop, from 180 to 
140. as more suites and big- 
ger rooms are created. “In 
today's world, with so many 
sleeping factories, people 
appreciate small jewels 
where guests are pampered," 
says Mr. Schallig. 

The Bristol offers business 
guests an Executive Busi- 
ness Club and rooms 
equipped for all electronic 

The basement restaurant is 
on its way to becoming a 
smart brasserie-cum-pub. 
offering 24-hour-a-dav ser- 
vice. while the Bristol's fa- 
mous but long unused sub- 
basement skating rink will 
give way to a swimming 
pool and fitness center. 
"This city has a spirit that 
cannot be killed." says Mr. 

The Bristol is convenient- 
ly placed for the Hamra dis- 
trict of the city center, which 
is also home to the Ameri- 
can University of Beirut. 
Hamra has a number of 
smaller hotels, including the 
Royal Garden. Wiener 
House and the Berkeley; the 
latter has no restaurant but 
offers rooms and apartments 
with kitchen facilities. 

Another Beirut hotel is the 
four-star Hotel Alexandre, 
which offers 230 rooms and 
facilities for the business 

Hotels are expensive, and 
rooms are hard to find 
for ■ess than SI 00 a night. 


Baafaeck, site ci Lebanon's best-known international cultural festival 

Expansion Takes Off ax Beirut Airport 

The upgrade at Beirut's airjfort minors Lelxuion s ambition . 1 : . :ne a major huh in the Middle East. 

round 1.2 million pas- 
sengers used Beirut's airport 
in 1993. By the year 2015, 
the airport should be able to 
handle 16 million travelers 

A joint venture of the 
Athens-based Consolidated 
Contractors Company and 
Germany's Hochtieff is al- 
ready working on a $560 
million, four-year contract 
that will equip the airport to 
serve 6 million passengers 
by 1998. with further expan- 
sion to he carried out in 
fixed stages. 

Despite the ambitious 
numbers, this is not a pres- 
tige project but a hard-head- 
ed, practical plan to give 
Lebanon an airport that will 
fit its ambitions to serve as a 
major financial, commercial 
and tourist center in the 
Middle East. 

The project emphasizes 
safely, efficiency and practi- 
cality. With the construction 
of 10.000 square meters 
i about 108.1X50 square fecti 
of duty-free shops and a 
transit hotel incorporated 
into the first phase, the pro- 
ject shoulJ be helping io pay 
for itself long before the lull 
expansion is completed. 

Nabil Nassar of project 

consultants Dar Al Han- 
dasah believes lhaL with fa- 
cilities in other regional cen- 
ters such as Cairo and Dubai 
handling 6 million passen- 
gers in 1 992, Beirut cannot 
afford to do less. He says the 
master plan for the aiiport is 
designed to allow a logical 
progression for expected de- 
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relocation of the west run- 
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coming flights and allow 
more high-rise buildings in 
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When Dar Al Handasah 
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they found an existing 1978- 
80 plan for 6 million passen- 
gers: around 25 percent of 
the work had actually been 

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Page 22 



ATP Foresees a Slowdown in Tennis’s Future 

By Christopher Clarey 

Special to the Herald Tribune 

FRANKFURT — Pete Sampras and 
Boris Becker did indeed play save and 
volley in the final of the ATP Tour 
World Championship on Sunday. But if 
tennis officials have their druthers, serv- 
ing and volleying w31 no longer be the 
vastly superior route to indoor success. 

Expressing delight with the latc-sca- 
son trend toward slower surfaces and 
Ipss lively balls, Mark Miles, the ATP 
Tour’s chief executive officer, an- 
nounced in Frankfurt that the tour 
would try to regulate the speed of the 
indoor game by developing standards 
for courts and balls that could be imple- 
mented by 1996. 

Miles also said the British Lawn Ten- 
nis Association had agreed to work with 
the tour to test balls that might make the 
game slower on grasscourts. 

“We want to enhance ten n is on our 
faster surfaces,” he said. 

The indoor game has drawn consider- 
able criticism in recent years, as the 

combination of mare powerful rackets 
and bigger, fitter players often has trans- 
formed matches into serving contests 
bereft of compelling exchanges. 

Dining this tournament in 1992, Jim 
Courier shouted out “boring teams” 
daring one such encounter with Richard 
Krajicek. Last year, the tournament di- 
rector, Zdjko Franulovic, responded by 
laying down a slightly slower version of 

the GreenSet Trophy surface, and the 

spectacle ii^ 

A similar approach was adopted by 
the Paris Open indoor tournament after 
hard-serving Goran Ivanisevic was 
whistled by the crowd during the 1993 
final as he hit ace after ace on bis way to 
victory. This November, with heavier 
baDs and a slower surface, rallies were 
considerably longer, shotmaking was 
more varied and hardly a whistle was 
heard as four aggressive baseliners 
reached the semifinals: Seagi Bruguera, 
Michael Chang, Marc Rosset and Andre 
Agassi, the eventual winner. 

^This is proof that we should not look 
to change the rules of tennis but work 

with the combination of surface and 
balls,” said Patrice Glcrc, the Paris Open 
tournament director. 

Just a week earlier, at the Stockholm 
Open oh an extremely quick indoor sur- 
face, the semifinalists were all bag serv- 
ers; Michael Sttch, Sampras, Ivanisevic 
and Becker, the eventual winner. De- 
spite the difference in their results, some 
erf those same big servers, including 
Such and Sampras, expressed their sup- 
port for the slower surfaces used this fall 
in Vienna, Lyon and Paris. 

“I think the game needs to bestowed 
down a little bit becanse playing in Stock- 
holm and Antwerp, it is just too fast,” 
Sampras said last week. “It is probably 
not fun to watch, and it is really not fun 

to play on, to tell you the truth.” 
The Gre 

GreenSet surface in Frankfurt, 

considered somewhat quicker than the 
Taraflexused in Paris, did not necessar- 
ily negate the importance of the weD- 
placed first serve. Becker still managed 
to smack 76 aces in five matches, includ- 
ing 30 in the final. But such slower 
surfaces do appear to cut down on sec- 

oudnserve winners and encourage base- 
line rallies by making it a riskier propo- 
sition for players to attack the net after 
their second serves. 

It remains to be seen whether the 
changes end up tipping the balance erf 
power too much in the favor of attacking 
baseliners with good passing shots like 
Agassi and Rosset, who won in Lyon in 
October. For now, the ATFs challenge is 
to develop a foolproof measuring stick. 

According to Miles, a group of 
French researchers working m conjunc- 
tion with the French Tennis Federation 
have developed a device that can gauge 
court speed. It was tested in Lyon and 
reportedly received good reviews. 

“We bdieve it will be perfected in the 
next weeks and ready for us to use,” said 
Miles, who emphasized that the tour had 
no plans to favor one court manufactur- 
er or one type of indoor surface. 

He said the "model” was what bad 
been used in Paris and in Frankfurt. 

“We think we can have true standards 
by 1996,” he added. 

Foreman and Ali Slated 
For Event in North Korea 


TOKYO — George Foreman, the world heavyweight box- 
ing champion, and ms forma rival Muhammad Ali are slated 
to appear at a sports and culture festival in April in North 
Korea, a Japanese sports promoter said on Monday. 

Foreman, 45, who on Nov. 5 stunned the sports world by 
recapturing his tide from a fighter roughly half his age, is to 
participate in an event in Pyongyang organized jointly by the 
North Korean government and a Japanese professional wres- 
tling group. 

“Although Mr. Foreman’s schedule will now depend on 
when he must defend his boxing title, he is slated to to 
Pyongyang,” said a spokesman for New Japan Professional 
Wrestling Corporation, co-sponsor of the event. 

The spokesman said Ali, 52, would attend the festival as a 
special guest. 

The two fighters win join a delegation of American and 
Japanese professional wrestlers in the first appearance by 
such athletes in the isolated Communist state. 

North Korea said on Monday it would welcome foreign 
tourists during the event — a rarity for a country that sharply 
restricts tourism and closely controls tourists' movements. 

PoUceAUowFAto Give 
Evidence to Grobbehutr 

The Associated Pros 

aiiqyuwiio, uk. puuvA. uwv-™* j - 

the derision came shortly after Grobbdaar’s attorneys com- 
plained t ba * die police had ordered the Football Association to 
withhold the evidence against the former Liverpool player. 

“We have been in touch with the FA and all the reforma- 
tion can now be passed to Mr. Grobbdaar and his solicitors, 
said the Hampshire detective chief superintendent, Roger 

The move was welcomed by Grobbdaar’ s lawyer, Davia 
Hewitt. . . . „ 

The FA last week charged Grobbdaar with accepting 
bribes to throw matches by letting in goals. The police also are 
investigating the allegations, first made by The Sun new spa- 
per. Grobbdaar, 37, who now plays for Southampton, denies 
{lie charges and is suing the paper for libeL He has until Nov. 
28 to answer the FA charges. 

The Sun has provided the FA and police with secret 
videotapes and tape recordings allegedly implicating Grobbe- 
laar in the scandaL 

Focus Is on 
Club Cups 

Arkansas Got Respect and the Title, So Now What? 

By William C. Rhoden 

New York. Times Service 

NEW YORK — This time 
last year, members of the Uni- 
versity of Arkans as men's bas- 
ketball team set out on a noble 
mission: a quest for respect. 
This is hardly an original con- 
cept and actually one of the 
cheaper motivational gimmicks 
in athletics. But it works. 

The Razoibacks believed in 
the cause and eagerly turned it 
into a crusade. No one gave the 
Razoibacks credit for being a 
smart, hard-working and im- 
mensely talented team. Even 
‘when Arkansas finally climbed 
to the top of the polls, a loss 
seemed to scad them on a great- 
er plummet than other teams. 

The call for respect was ele- 
vated from slogan to mantra. 

Suddenly it all changed. The 

Gibbs Quits as Oklahoma’s Coach 

NORMAN, Oklahoma (AP) — Gary Gibbs, unable to win 
championships at a school accustomed to success, resigned Mon- 
day as Oklahoma football coach, effective at the end of the season. 

The Sooners (6-4) play No. 1 Nebraska on Friday to end then- 
regular season and are set to play Brigham Young in the Copper 
Bowl bn "Dec. 29. In a statement, Gibbs said he had intended to 
make the announcement at the end of the season, but changed his 
mind because of widespread reports that he was leaving. 

Gibbs is 44-21-2 is six seasons at Oklahoma, but his teams have 
never won the Big Eight championship or gone to the Orange 
Bowl When Gibbs replaced Barry Switzer in June 1989, be took 
over a program that had been shaken by scandal that included 
NCAA probation and a shooting, rape and drug bust involving 
five Sooner players. Oklahoma won six national championships 
.under Switzer and Bud Wilkinson. 

For die Record 

Red Rum, the only borse to win the Grand National three times, 
is retiring from public life at age 29, his trainer, Ginger McCain, 
said on Monday. Red Rum won the National in 1973, 1974 and 
1977. (Reuters) 

The Grey Cup, awarded to the Canadian Football League 
champion, could he headed to the United States, after Baltimore 
became the first U.S. franchise to advance to the title game on 
Sunday, beating Winnipeg 14-12 in the East Division final on 
Donald Igwebuike’s 54-yard field goal Baltimore will play British 
Columbia next Sunday in Vancouver. (AP) 

- Razorbacks won a national 
championship on April 4. From 
then until now, Arkansas has 
been up to its neck in respect. 
Every minute, every hour, every 
day, the Razorbacks, Corliss 
Williamson in particular, have 
been under siege by TV sta- 
tions, small, medium and large 
newspapers, and magazines. 
Everybody wants a piece of 
than Hawgs. 

As Williamson was led to 
what must have seemed Mke his 
hundredth interview recently, he 
smiled at the irony of a lesson 
learned: Be careful what you 
pray for, you just might get it 

“Last year we harped on not 
getting as much respect as we 
would if we won die national 
championship ” said William- 
son, who leads the Razorbacks 
in scoring. 

“I guess this goes along with 
winning: interviews day in and 
day out,” he said. "You can’t 
really picture what it's going to 
be like, I mean, to be man Ar- 
kansas, playing for the Razor- 
barks, made it hard going places 
without being bombarded with 
autograph requests. After win- 
ning a national ch amp ionship, 
everywhere you go, people seem 

until May; he wore a cast for 
most of the summer and missed 
s umm er competition. 

The senior guard Clint 
McDaniel tore a ligament in his 
ri g ht thumb playing in a pickup 
game two weeks after wittering 
the national rhampinn ship .and 

required surgery. The sopho- 
more center Darnell Robinson 
underwent arthroscopic surgery 
in July. Then Corey Beck un- 
derwent arthroscopic knee sur- 
gery on ins knee m September. 

But there are more subtle dis- 
tractions as wefl. 

Last season no one asked 
Williamson about leaving 
school until the team left for the 
Final Four. Now hardly a day 
goes by without someone ask- 
ing him. 

“I'd like to shy away from 
that question,” he said. “But it's 
a legitimate question and one 
that needs to be answered. The 
way I feel about it is that I want 
to live in the present Tm trying 
to do what’s best for this team.” 

When pressed, however, Wfl- 
Hamson suggests that he al- 
ready has a leg out of college. 

“You can always lock: at the 
financial part of it,” he said. 
“Being a college student if s not 
like you have a lot of money in 

triguing possibilities rttnanring, 
, toeb- 

with none of the 16 teams; 
nicafly at least yet dimkiatcd 
from the competition. 

Paris St Germain is the only 
side assured of a place in mb' 
next stage of the Champions^ 

your pockets — that’s one rea- 

son 1 wouldn’t mind going to 
the NBA." 


HOT BLAZER — James Robinson, passing over Detroit’s Lindsey Hunter, poured in 24 
points to lead the Trail Blazers to a 98-96 National Basketball Association victory. 

to have magazines they want you 
to sign — at gas stations, at 
restaurants, wherever.” 

rour whole life is 
con tin- 
living in a glass 
house. Whatever you do, what- 
ever Is going on in your life, 
people are watching you. You 
have to be more aware erf what 
you’re doing where you're at 

andhow you carry yourself.’ 

is what respect 

"But if this 

is.” be laughed, "Til be glad to 
keep it” 

Keeping it is one thing, build- 
ing on it something elik With 
all starters back from last year’s 
team, Arkansas would seem to 
be well on its way. But repeat- 
ing will not be an easy task. The 
Razorbacks will be tested early 
and often this season. 

If Arkansas intends to build 
on last year’s success, William- 
son, a 6-foot-7-inch (2-meter) 

power forward who became an 
indomitable inside force last 
season, will have to be more 
consistent this season. 

Arkansas returns virtually an 
entire team, but does not return 
it whole. In fact, the roadblocks 
on the Razorbacks’ path to a 
second national championship 
began the night they won their 
first when Williamson fractured 
a bone in his left wrist 

The injury wasn’t detected 

“Also, just to be a man,” he 
added. “Just to get out and ex- 
plore life itself.” 

But for now, Williamson and 
Arkansas have their sights set 
on trying to defend their title. 

“I don’t know if it’s going to 
be a straight highway for us,” 
Williamson said. “There are go- 
ing to be some hills, there win 
be a bumpy road. I prefer a 

bumpy road. That bring? out 
the best ii 

in you. It’s going to 
you on your toes and 
_ for anything. In the long 
run," it’s going to make you a 
better team.” 

Be careful what you pray for, 

Ajax Amsterdam is almost' 
certain to advance from Gro^~ 
D, irrespective of what happens ' 
on Wednesday. Bayern will ad- 
vance from Group B if it ends 
PSG’s 100 percent record on 
Wednesday and if Spartak 
Moscow draws with Dynamo 
Kiev in Moscow. 

Three teams are chasing the 
qualifying berths in Group A, 
with Gothenburg leading the 
group with six points, followed 
by Buodona with five and Man- 
chester United with four. Gala- 
tasaray, with one point, is all fc£; 

There will be a new UEFA 
Cup winner this season follow- 
ing the early efimhmtioai of In- 
temazionale — and five past 
holders are still in contention: 
Bayer Leverkusen, Real Ma- 
drid, Jnventus, Eintracht 
Frankfurt and Napdi. 

Three superb third-round 
matches are set for Tuesday: 
Athletic Bilbao plays Parma, the 
Italian League leader; the Dan- 
ish part-timers of Odense face 
the current Spanish League lead- 
er, Real Madrid, and Trabzon- 
spor, which knocked out Aston 
villa, the conquerors of Inter, 
faces Lazio. 

Three other UEFA Cup 
games are scheduled for Thurs- 
day, with the fanner winners 
Eintracht Frankfurt and Napoli 
meeting in Germany, and Ju- 
venilis, winner twice in the last 
five seasons, traveling to Ad- 
mira Wacker in Austria. 












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“There'te some, folks! These rare and lovely emotions 
tave "o natural enemies, but balloon animate 

never Iasi a» long In this harsh land." 

LONDON — In keeping 
with the unrelenting nature of 
European soccer, the Conti- 
nent’s top players switch tins 
week from last week's mterna- - 
tional cham pi onship matches to ~ 
club cup competitions. 

And with the European Cup 
Winners’ Cup competition now 
in hibernation until fire spring, 
only 16 matches in theChamp*- ;. 
Otis’ League and UEFA Cup are 
being played. 

The Champions’. League 
rea ches its penultimate round . 
with nearly &□ the crucial issues 
still to be decided, while the 
UEFA Cup, which tins season 
began with a record entry .of 91 
dubs, will be down to the find 
eight after the third round, 
which begins an ttiesday; • 

The Champions' League co 
tinues to capture most of the 
attention and after Wednes- 
day’s games a much dearer pic- 
ture will emerge of the eight ' 
sides — the top two in each of 
the four qualifying groups — 
that wifl advance to the quarter- 
finals in March. - 

A series of tiebreakers are 
used to separate the teams 
should they finish levd. on points . 
and there are a number of in? 


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Page 23 


Completing a Sweep of 5 Matchups, AFC Teams Surprise NFC Rivals 

Jobs MabuqgWA^sce Frntt-hnu 

The 49ers* Jeny Rice had Steve Israel of (be Rams beat as he eyed a Steve Yoimg pass. 

The Associated Press 

American Football Confer- 
ence 5. National Football Con- 
ference 0. 

In five interoonference games 
Sunday. AFC teams went un- 
beaten. Considering the AFC re- 
cord the last decade in the Super 
Bowl — 0-10 — that’s more than 
surprising. It's shocking. 

The AFC winners were the 
Jets. Raiders, Broncos, Sea- 
hawks and Bills. All the teams 
except Seattle, which beat Tam- 
pa Bay, helped themselves in 
the playoff race. 

New York’s 31-21 victory at 
Minnesota lifted the Jets within 
a game of first place in the AFC 
East after Pittsburgh beat Mi- 
ami in overtime. Buffalo is tied 
with the Jets at 6-3 thanks to its 
victory over Green Bay. 

Those results tightened the 
AFC East and Central — Pitts- 
burgh and Cleveland are tied 
for first place — and the NFC 
Central, with the Vikings (7-4) 
falling into a tie with Chicago 
for the top spot. 

The Raiders held off New 
Orleans, lifting than over .500 
for the first time this season. At 
6-3, they are one game up on 
Denver, which beat Atlanta. 

Both trail Kansas City by a 
game and San Diego by two in 
the suddenly tighter AFC West. 

The only division leaders to 
win were Dallas and San Fran- 
cisco. But the Cowboys lost 
quarterback Troy Aik man to a 
sprained knee in a romp over 
Washington and the 49ers had 
to rally to beat the Rams. 

Jets 31, V3an^ 21: In Min- 
neapolis. Marcus Turner tied a 
team mar k with three intercep- 
tions. returning one 90 yards for 
a score. Boomer Esiason threw 
for three scores and Johnny 
Mitchell had a career day with 
11 receptions for 120 yards. 

Warren Moon threw some 
bad passes and the Jets turned 
them into paints. 

“Certain things I did very stu- 

The AP Top 25 

Central D hr titan 

NFL Standings 

Mam I 
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Roy Ftoyo-Steve Elkkngion 730903-205 

Final leading scares Sunday of the UNM 
72 Cl D&d* Gad Mexico coarse in Mexico City: 
Chris Perry 606S-7044— 274 

BcS Tway 6067-7000— 275 

John Cook 71-680*08—274 

Ho w a rd TwHt* 44007070—277 

Tam Byrum 7207-7207—278 

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Jase Rivero 7070710*— 280 

Fred Funk #*-71-72-70—282 

David Fefcerty 697M97T— 282 








LACUPOtn 23 30 24 M-*7 

Hew Jersey 23 21 28 24~*8 

L: Richardson 8-21 1-1 1*. Datwr*6-18 M W; 
N: Cateman 5-12 1014 20, Aadanon 6-13 7-82SL 
IWwwnrti Ins Angeles Si [Soenctr. Mas- 

AC MJton x. urfemaztonate i 
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Bnllna ZL juventns 20. Roma 17, Fdggia 16. 
Bari 16. Cagliari IS Sarmaoria 11. inter 13. AC 
Milan i3LTartna11.GefMll.NaPOino.CrT- 
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tones. Norffi GaroHnaState+CNatro Dame 3*. 
Bavtor 35, Tennessee 24. Wisconsin it. Air 
Faroe 12. Texas Tec* 12. Ilfbvtfs 7, Central 
MKtitaon 3. West Virginia 3. 

CFL Playoffs 

Eostera Dtvtsteo 
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Western Dtvmaa 
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seubura 101. New Jersey 63 (Ottoman 141. 
Asdst»-04tt Angeles 1* ( Richardson ta. 
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C: Hill 7-n 3-5 17. Prtae 6-14 OO IS: S: Rkft- 
nnnd 5-1306 M. Grant OU2-4 18. Rebaaaiit — 
-Oevetand 52 tHlll 26L Saaromenia 44 iGrant 
MM. Assists— Cleveland 15 (Price *). Socra- 
msnte 24 (Hurtov 6>. 

Detroit M 21 29 14-M 

Portland 31 16 16 25-fl 

D: Dumars 13-23 9-1035, MHlS 4-13 7-W 20 ;p: 
C Robltison 1020 5-102t.XnaMnson 0162-4 24. 
Rebanadt— Detroit 33 tMKb 61. Partlaaa to 
(Dudley 151. MUG*— Oetrall 18 (HDL Daw- 
kins 5L Porttent 21 (J-Robtesaa 81. 


India vs. west indies. «n day 
Monday, m Bombay 
indto 2nd innlnos: 333 (all out) 
west Indies 2nd intenga: 2508 

-.-J'-'- -r 

StfMloy^ Opflus 
Kansas Cltv 20. Cleveland 13 
auooeo 20. Detroit 10 
Butfala 29. Green Boy a 
InflcnopoHs 17. Onrfrvxtfl 13 
PttMturgli 16, Miami 13. OT 
New England 23, Son Diana 17 
Dallas 31. W a s h ingto n 7 
Denver 32. Atlanta 28 
LA Raiders 24 Now Orleans if 
NY. Jets 31. Minnesota 21 
Arizona 12, PnuadeiPhte * 
Seattle 22. Tamaa Bay 21 
San Fnmci.-u 31 . la Roms 27 

NBA Standings 

Amertant League 

NEW YORK— Designated Xavier Neman- 
dez.pttcher.ier asm on meat Seat BHIy Masse, 
outfleider. and Jas* Musset Pttdter. outrlgftt 
to Columbus, IL Purchased the contracts at 
Andy Croatian, Andy Petttttc and Brian Tay- 
lor. Pitchers; Jose Posada catcher; and Ra- 
toon Rivera Matt Luka and Lyle Mouton, out- 
fielders. tram Columbus. 



Atlrattc Dtvtstow 










New York 














Now Terser 
















*» Sunday of tee 11.1 arit- 
tat Star* sfteateet pkmd aa ne 7jBFrar*t 

par-72 Sherwood country Cteb c ou rse la 
Thousand Oaks, CSflftraicr: 

Fred Coudes-Brad Faxon 4844-58—190 
Curtis Strang e M ark O'Me ar a 70-4*58— »Z 
Clip Beck- Jeff Mnggert 606560-1*3 

Lonny Wfldk lne A ndrew Magee 6*6*42—194 
Ben Cmsdnw6A.Calcnecdila 6*6264— 1*5 
Arnold Powier-Peter Jacobsen 786*59—194 

PORTLAND— Placed Rod Strickland, 
guard, an the Mured list. Stened Steve Hen- 
son. guard. 


COLORADO- A nnoun ce d the resignation 
of Bill McCartney, football coon effective at 
tee end of the season. 

LOYOLA MARY660U NT— Suspended Will 
Jones, forward, and Terryl Woaterv. guard, 
for the 19*445 basketball season. 



i Arabian 
S Muddle 
o Insiders' tali' 

14 Take on 
is Word-ot-moutn 

is Former Spanish 

pm. — y 





r.f-,1 't 

IT 5efTU(iCtional 
me we 

19 Circumvent 

20 Alliances 

2 1 One of the 
Hiuttable kids 

22 Increased, as 

27*.. on the Dead 


21 Like most music 
29 Trounce 
31 Photo repro 
34 Plunders 
26 The Emerald 

71 "Da Ya Think 

rm ?’ 

0979 hit! 

36 Cider- sweet girl 
so “Metric' prefix 
40 England-France 

42 Witticism 

43 Gender abbr. 

44 Tedious 

45 Much Of Mali 
«r Biblical 

49 Hounded 
s1 _ — Tots 
p arenas*) 

52 Hold sway 
54 Eulogists 
se Penry Como 

59 B S B'S 

60 Hockey 

«i Mexican border 
«6 Do detective 

67 Actress Gan 
66 Lackawanna's 
railroad partner 

69 Swiss 

70 Good life 


1 Unmatched 

2 Chinese 

3 Trajectory 

4 Sitting on me 

5 Mushroom 

6 Cleaned, as a 

7 ‘Cheers' 

8 Eastern 

BFrigidaire rival 
to Harsh-voiced 


11 Number in the 
baB park? 

12 Hockey's 
Bobby ei aL 

13 "See ya' 

IB Local lingo 

22 Moseys 

23 Discord 

24 On one's mark 
as Paid-for TV 

26 Bar request 
30 Adm.or capl.'s 

22 Worshiper 

33 13th-century 

35 Circle and 
octagon, e.g 
37 Raising spirits 
4 i Road show grp 

46 Tnbulaticns 
48 Shade of 
so Some 
S3 German gun 


S j 













PmStbf WayMJtoMrt WBtent 

O Neur York Tono/Edited by WiB Shorts. 

Solution lo JRnszIe ol Nov. 21 

55 Gal with a gun. 

on Broadway 

56 Fisherman's 


» Beige shade 
SB Italian an patron 

82 Sphencal food 

83 Wrath 

84 Evening hour 
es*You there!" 




















pid.” Moon said. “I always try to 
say a quarterback is going to 
have a game tike tins and then 
you try and come back next 
week. But after losing last week, 
we really needed this game." 

Raiders 24, Saints ISfc Jeff 
Hostetler had his best day of 
the season, hiding 22 of 28 
passes for 310 yards and three 
touchdowns, two to Tim 
Brown, in Los Angeles. 

Brown caught eight passes 
for. 132 yards and two TDs, and 
returned six punts for 81 yards 
against the Saints (4-7). 

Broncos 32, Falcons 28: In 
Denver, John El way, master of 
the late-game drive, did it for 
the 34th time, running four 
yards for a score with 2:56 left 
after throwing for two second- 
half TDs. That rallied the Bron- 
cos (5-6), who have won five of 
their last seven. 

Elway finished 27 of 42 for 
382 yards, the third-highest 
yardage total of his career. Jeff 
George had four TD passes for 
Atlanta (5-6). 

Seahawks 22, Buccaneers 21: 
Third-stringer Mack Strong 
scored on a 7-yard run with 42 
seconds left to lift Seattle over 
visiting Tampa Bay (2-9). John 
KLasay's extra poini broke a six- 
game slide for Seattle (4-7). 

49ers 31, Rams 27: In San 
Francisco, Jerry R ice caught a 
club-record 16 passes for 165 
yards and three scores, and his 

third TD was on an 18-yard 
play with 1:56 to go that lifted 
the 49ers (9-2) to their sixth 
straight victory. It also was 
Steve Young’s fourth touch- 
down throw of the game. 

The Rams (4-7) rallied on 
Todd Kinchen’s 44-yard TD 
run on an end-around and 


Chris Miller’s 50-yard touch- 
down pass to Flipper Anderson 
over Deion Sanders. 

In earlier games, reported 
Monday in some editions of the 
Herald Tribune: 

Bills 29, Packers 20: The host 
Bills, without their star defen- 
sive end Bruce Smith, turned to 
thepassing game. 

The feuding pair of quarter- 
back Jim Kelly and wide receiv- 
er Andre Reed went wild. Reed 
had first-half scores of 10 and 
IS yards and finished with a 
team-record 15 catches for a 
career-best 191 yards. Kelly’s 
total of 365 yards was fctis best 
in 2Vi years and the fourth-best 
of his career. 

Green Bay (6-5) pulled to 27- 
20 as Brett Favre hit Stertii 
Sharpe with two second-h: 

Steekrs 16, Dolphins 13: In 
Pittsburgh, the Steders (8-5) 
ed their 

played their third OT game in 
the last four and won when Gary 

Anderson made his 19th straight 
field goal, from 39 yards. 

Mike Tomczak, making his 
first start in 27 games, was 26 
for 42 for 343 yards. 

Dan Marino (31 of 45 for 312 
yards and a TD) led Miami (7- 
4) to a game-tying, 48-yard field 
goal by Pete Stoyanovich cm the 
final play of regulation. 

Chiefs 20, Browns 13: The 
undermanned Chiefs (7-4) won 
without seven starters, taking 
advantage Of Cleveland’s 15 
penalties for 142 yards in Kan- 
sas City, Missouri. 

Joe Montana completed 
passes to 10 different receivers. 

Cleveland (8-3) is tied with 
Pittsburgh atop die AFC Cen- 

Patriots 23, Chargers 17: 
New England (5-6) let former 
Chargers running back Marion 
Butts take charge. He ran for 88 
yards and a TD against visiting 
San Diego (8-3). 

Butts, obtained in a draft-day 
trade, averaged just 42 yards in 
bis first 10 games, while his re- 
placement, Natrone Means, led 
the AFC in rushing. But Means 
was held to 59 yards, and now is 
at 1.006 for the season. 

Cowboys 31, Redskins 7: Aik- 
man left in the second quarter 
and isn’t likely to play Thurs- 
day against Green Bay. 

Backup Rodney Peete also 
went down with a thumb injury 
as Dallas (9-2) finished the 

with third-stringer Jason 

:tt. Visiting Washington 

(2-9) aim used all thn* quarter- 
backs as it was swept in a sea- 
son scries with the cowboys for 
the first time in 10 years. 

Bears 20, Lions 10: The Bears 
had the ball for more than 44 
minutes, held Barry Sanders to 
42 yards and just 1 1 carries — 
he had a career-best 237 the 
previous week — and got 126 
yards rushing and one TD from 
Lewis Tillman in Chicago. 

The Bears ran 76 plays to 36 
for tire Lions (5-6), and Steve 
Walsh improved his record to 6- 
0 as a starter. 

Colts 17, Bengab 13: The 
Bengalis (2-9) saw their two- 
game winning streak snapped 
even though they held India- 
napolis's Marshall Faulk to a 
career-low 28 yards on 16 car- 
ries in Cincinnati. 

Don Majkowski threw an 8- 
yard TD pass to Sean Dawkins 
with 1:54 left for the Colts (5-6). 

Cardinals 12, Ea^es 6: In 
Phoenix, Arizona, Buddy Ryan 
beat the Eagles, his former 
team, just two weeks after hav- 
ing lost to them in Philadelphia. 

Greg Davis had four field 
goals, three from 24 yards, and 
Arizona (5-6) stifled Randall 
Cunningham, who was 17 for 
44 for 151 yards. The Eagles (7- 
4) managed only two field goals 
by Eddie Murray. 





on Page 13 



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Page 24 


The Shakespeare Suit 

W TTHam Shakespeare and 
I parted company was when he 
wrote, “The first thing we do, 
let’s kQl all the lawyers ” 

I don't believe that you 
should kill all the lawyers. I 
think you 
should kill 
only those on 
the opposing 

The reason 
was so embit- 
tered was that 
he had decided 
to sue Christo- 
pher Mari owc Buchwald 
far plagiarism, . 

libel and defamation of charac- 

Marlowe claimed to be the 
author erf “Henry VI,” which 
Shakespeare said was a “dam- 
nable tie.” 


The Bard hired Sir F. Lee 
Bailey, Lord Alan Dershowitz 
and Lord Robert Shapiro to 
mire the case for 500 ducats per 
hour plus expenses. 

Marlowe hired the firm 
of Marquis William Kunstler, 
Sir Marvin Miichelson and 
Lord Melvin Belli to defend 
hims elf. 

Ironically, what enraged 
Shakespeare was not the legal 
fees but the expenses his law- 
yers billed him for. 

For example, they had every 
one of Shakespeare's plays and 
sonnets Xeroxed 50 times and 
then bound in a rare goatskin 
leather book to present to the 

The playwright was also 
billed for dry cleaning of 
drapes and sofas in Bailey, 
Dershowitz and Shapiro's of- 
fices as well as construction 
costs for the new marble stair- 
case connecting the firm's 15th 
and 16th floors. 

If this was not enough finan- 
cial pain, Shakespeare's legal 

twin told him that in order to 
win their case they would have 
to hire expert witnesses to 
prove that Shakespeare had 
really written everything he 

The leading Shakespeare ex- 
pert was Professor Gladney 
Hall of Oxford, who had writ- 
ten a doctoral thesis on the writ- 
er that was required reading at 


In Marlowe’s defense, his 
lawyers hired Timothy Bog- 
steel, professor of romance lan- 
guages at Cambridge. His text- 
book was required reading at 

Each expert charged 12,000 
gold sovereigns to testify — fees 
so outrageous that Marlowe 
had to sell his farm in Sussex 
and Shakespeare bad to mort- 
gage the Globe Theatre. 

Other items that cost Shake- 
speare his shirt (and ruffled col- 
lars) were the mock trial the 
lawyers held in Scotland to find 
out how to try the case, plus 
handwriting experts to testify 
about who wrote “Hamlet" and 
fees for a coroner in tdinburgh 
to testify that Marlowe was 


When Shakespeare received 
the bill for these expenses, he 
went into a rage and screamed, 
“Let's kill all the lawyers." 

Bailey, Dershowitz and Sha- 
piro all heard him and said: 

“Don’t make any decisions 
until the verdict is in. Jf thejury 
decides in favor of Marlowe. 
we'U appeal.’’ 

“You told me this suit would 
cost me hardly anything and 
that I’d win a ton of money if I 

“Lawyers always say things 
they don’t mean. Frankly. I be- 
lieve that we have Marlowe on 
the ropes.” 

“Because he knows he can’t 

“No. because he just got his 
lawyers’ fax bill." 

Patti LaBelle: A New Incarnation Without Big Hair 


By Cathy Horyn 

Washington Past Service 

S ALISBURY, Maryland — Her bosom is 
high, like a shelf, and hex bottom is round, 
like a bustle, and in between, there is a tiny 
waist, bundled in a double-breasted suit of soft 
bird's-eye tweed by Donna Karan, “You don’t 
mind, do you?” says Patti LaBelle, pressing a 
fake lash to her eyelid and blinking twice. 
“We’re just girls, right?” She turns away from 
the mirror and gives the hem of her jacket a 
little tug. Magnificent foundation work. And 
legs! Long nylon shanks ending in black Man- 
olo Blahmk pumps. 

She swivels around and looks bade at the 
mirror, a hed rising out of her Manolo. “Donna 
came backstage at my show in New York and I 
said, ‘Girl, you can't come in here. You’re not 
gonna see this old body of mine.’ ” LaBelle 
snorts grandly. “And she said, *011, honey. I’ve 
seen that body of yours. You've got nothing 
over me.’ ” She roars a big-girl roar and then 
looks down at her interrogator's boots. 

“Like those boots,” she hums. “Whose boots 
are those?” 

“Chanel.” (We’re just girls, right?) “From 
last season.” 

’Too bad.” She shrugs and walks over to a 
table laid out with food covered in plastic wrap. 
“You want something to eat or drink? Some 
chicken?” Is Charleston, South Carolina, 
where LaBdle performed before coming up the 
coast for a concert in Salisbury and a gig at the 
Warner Theatre in Washington, she cooked for 
her roadies. Mustard greens and sautfced liver 
with onions and gravy. Fresh com off the cob. 
Okra and tomatoes. “The day before, I Med 
catfish and perch,” she says. 

Now she’s spooning potatoes and baked 
chicken onto a plate (“You want some wine? 
Beer? Soda?”) in a dressing room that looks like 
the teachers* lounge at a high schooL Painted 
concrete walls. 

“I like that jacket too,” she says, narrowing- 
her eyes the way a woman does when she sees 
something across the floor of a department 
store. “Jean-Paul Gaultier?” 

“No, Co mm a des Garcons.” 

LaBefle slaps the sofa. “Oh, girt 1 was going to 
say it was that retarded man who doesn't know 
how to sew. IBs stuff is so word, but I like it” 
She also likes Moschino (lie’s passed on, bless 
him”) and Versace. “Weil, anything that’seute,” 
she says. “But my favorite is Donna, because her 
Stuff never goes out of style. It’s classic.” 
Over the years — something like 35, since 

- . 1,0 P-.inh Baptist 
V. 11 UIU 1 «~notr in southwest Philadelphia to form 
the Bluebells and score her first hit, “I Sold My 

T>:n M-iOmj In: The ftastnnpan Pom 

LaBelle has remained pretty much the hometown girl who never left Philadelphia. 

Heart to the J unkman” — the 50-year-old pop 
singer has gone through various incarnations. 
There was the rhythm blues period, the years 
in which she and the Bluebells opened for the 
Rolling Stones, when her rivals, in volume and 
soul, were Tina Turner and Aretha Franklin. 
Then there was the quasi-punk, rock roll era 
of LaBelle, the girl group transformed by British 
producer Vicki Wickham, and its big disco stan- 
dard. “Lady Marmalade.” Since the early HOs, 
LaBdle has been on her own — through such 
hits as “New Attitude” and “Stir It Up,” a 
Broadway debut in “Your Anns Too Short to 

D '' _ XVUf, CW- A — -irf 3 rram!^ nf Vt£OOT5 

But through tt all, LaBelle has remained 
pretty much the hometown girl who never left 

Philadelphia, who stayed married to the same 
man (Armstead Edwards, going on 26 years) 
and who, despite the perils and trappings of 
fame, has managed to be, essentially. Patti. For 
the president of the United States last August 
she rolled on the floor and belted out “Happy 

“My husband was having a baby in the back,” 
says LaBelle. shaking her head. “He said. ‘She. 
didn't roll on the floor, did sheT I did. The 
president is a person first. They wanted me to 
perform for him, 50 1 did. Therefore, they get real 
Patti” She makes an uppity' face and continues. 
“WeR wh»n I finished roJirr?. my dress had 
busted open in the hack My ass was out. After- 
ward. Hillary said to me, Taui, you're the funni- 

est lady.’ I said, Tm fimnier than that, honey. 

F A bj^s^ckand LaBelle goes back to 

it is something of ™ 
between church house and caAouse. between 
toeS and mighty and the down and dirty 
Her abtiity to bold the high notes is matched 
cSv by her instinctive appreciation of what 
truly moves an audience — Physical caanectiou 
with the materiaL Hence thebodyronmg and 
the Vegas hairdos. If LaBeJte app^ra mare 
toned (town these days, with her own haw and a 
new album, “Gems,” of “smg-alongable melo- 
dies, it’s only a phase. Her next album, she says, 
“might be the roller coaster nde from HdL 

She shrugs. “People love big hair. Tk* see me 
with big ba»r and outrageous costumes. They see 
me like — a drag queen! I am my teas’ mag 
queen. I am. And I love being that for them, but, 
boyfriend and girlfriend, when I go home* it s a 
whole ’nother movie. And sometimes onstage I 
just feel like being calmer. But they won t let 

py» w 

She poms herself another glass of wine. “Y 011 
know what?" she says after a moment. “Bette 
Midler and I talk about this all the time. Shes 
the white Patti and Tm the black Bette. We’re so 
much We have our gay tens. I mean, we 
love our gay boys. They see Bette and me tike 
their dre ss -up dolls, and we do it- So she has the 
gfrmp. good problem that I do. 

“No ” she corrects, “I only did it for my fans. 
After three or four years of big hair, (hat was 
enough. I did it as long as 1 could. And now that 
hair Is in the suitcase, screaming to get out." 

A knock at the door and Nonna Harris Got- * 
don, her hairdresser of 20 years, enters with a 
large box. “That my new outfit?” asks LaBdle, 
scooting off the couch and crossing thexoomin 
three strides. This is supposed to be the second 
change of a three-ensemble show, and she tucks 
into the box, throwing back the tissue paper. 

“Oh, no! I can’t believe this” — LaBelle 
steps back and holds up a black tuxedo jacket 
with lace and rhinestones running all over the 
collar and cuffs — “What was that woman 
thinking? This isn’t wbat I asked for. I said 
unconstructed lace coming off the cuffs and 
collar. Unconstructed lace. She didn’t listen. 1 
can’t wear this. Would you laugh at me if I 
came out wearing this?” 

LaBelle snorts, still bolding the jacket up to 
her Donna Karan shoulders. She turns to Gor- 
don. “I wanted unconstructed lace. I didn't 
want a bonier of rhinestones. It’s so busy. It’s 
so passfe. It’s so ... if I walked out in this, 
they would think I had lost my nlr.d. Nor- 
ma . . .” Now it's the hairdresser's turn to 
look unperturbed. “1*11 call Aretha.” 
















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B 28/1H 17*2 s 

Forecast for Wednesday through Friday, as provided by Accu-Weather. 

North America 

Mew Ywfc and '.Vjsh.r.jion 
nil) be dr,- and chilly 
Wednesday and Thursday A 
shower cr ."wo may ccsjt Fri- 
day Toronto V..11 be ccld at 
midwec*. v:.ih a le-w Humes, 
thou teinperalui'w mod- 
erate Thursday and Friday. 
California will be dry during 
the second halt ot iha meek. 


Colder air will overspread 
northern and eastern Europe 
later this week. There will 
be sow cooSng across 
Fiance and Spam by the 
weekend. England. France 
and Spain will have mainly 
dry weather. A developing 
storm may spread heavy ram 
from Italy to Bulgaria by Sat- 


A storm wiM take shape in 
the Sea of Japan later this 
week and bmg rati to parts 
of Japan and far eastern 
China. The remainder ol 
China wH be dry and cool. 
Showers wttl occur in parts 
of Southeast Asa. aid a tBw 
showers and thunderstorms 
wfl affect Singapore. 

Middle East 

Today Toiram 

High Low W High Law W 


Bun) 17.« r 20*8 14C7 Sh 

Cano 19*L I75S c SI .70 M/57 r 

CUrraxus 17 62 jU pi 17.62 7/44 I 

JenmJ«n 16*1 12/53 Ui 16*1 11/52 r 

Lun* 21/“0 7-U S 23.73 9Ma a 

RrvrnSi 31. SB 13« pc 23.6* 17/G2 «h 

Latin America 

Today Tomorrow 

Mgh Law W Mrfi Low W 

Buenos Anas Z7/BO 14.1? S Z7/B0 17*2 pc 

Cameos 23184 19*6 Sh 28/B2 18«8 pc 

Lima 2«/75 >7/62 pc 34/75 17*2 pc 

McocoCtt 23/73 0/46 PC 32/71 «M8 pc 

(to deJsnefro 34.75 19*6 sh 26/77 IB/68 pa 

Santiago 39*4 ID *5 a 37*0 12/53 pa 

Legend: S-eumry pc -partly daudy. c-doudy. ah-showon, hBundnretorma. r-rain. si- snow holies, 
srvonpw. I-CB. W-V/oaMior Alt maps. forecasts mod doa provided by Accu-Waother, Inc. ©IBM 








Low *V 









2371 ah 





317 pc 






21.70 a 






£4.75 pc 




29 W 

12*3 s 





3-37 sh 





10.-50 Sh 






23/73 l 






1064 sh 






S 13 s 







1561 b 



pc 22.71 

14*7 3 






14/57 a 



sh 21/70 

7/44 pc 



23.73 s 


2S/T7 pi 



pc 21/70 

13.55 1 






17.53 4 

North America 

Anchorage -10/15 -2D/-3 pc -11*13 -18 0 pc 
Adana 17*2 w» j 11 .S3 0.32 s 

Boston 13/55 -2/29 pc 9/48 2 29 PC 

Chcapi 104 -832 s 7/44 -2.29 & 

DenMf 5*41 -7/20 pc 12.S3 -*.1S C 

DOW* 2.15 -6/22 PC 4 39 2.33 PC 

HoraUb 29*4 21/70 pc 29/M 22*71 pc 

HouSon 19*6 6/43 c 14C7 5*1 pc 

Los Angelas 22.71 5/41 s 22/71 9/48 s 

Atom 29*4 21/70 sh 36/79 19.56 ft 






-4/25 5 






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0,32 a 

T HE marriage of Richard Gere and Cin- 
dy Crawford is all but over, according 
to a British tabloid that published photos 
reportedly showing the model Laura Bailey 
making early-morning getaways from his 
apartment. One shot in the weekly News of 
the World caught a noticeably vexed Bailey 
hopping over Gere's garden walL She has 
been spotted on the street early in the morn- 
ing in the past and has said she was visiting 
a friend next door. Gere, who is in England 
filmin g, and Crawford in May published an 
ad in the Times of London, proclaiming 
their commitment to each other. But the 
News of the World quoted an unidentified 
friend of Gere’s as saying. “In Richard’s 1 
own words, it is all over.” 


Forty erf “Schindler’s Jews” gathered in 
New York to honor Steven Spielberg, the 
creator of the film “Schindler’s List ” Leo- 
pold Page, 81, a concentration camp survi- 
vor, called the director of “Schindlers List” 
“a genius ” Page, bom in Krakow, Poland, 
was on the list compiled by Oskar 
Scfamdler, the businessman who saved 
1,300 Jews by hiring them to work in his 
war-supply factories in Poland. They pre- 
sented Spielberg a bust of Schindler at a 
ceremony to give the State of Israel Bonds 

ELie Wjesel Holocaust Remembrance 
award. Spielberg is the first person not a 
Holocaust survivor to win the award. 


Cynthia Lennon. the first wife of John 
Lennon, has cut a record, an arrangement 
of “Those Were the Days,” to be released 
early next year. 


Queen Elizabeth was a winner in the first 
draw of Britain’s new national lottery. To- 
day newspaper reported that she won £10 
(S 1*5.70), but she will have to share it among 
the 20- strong royal indicate, including her 
husband. Prince Philip, and Queen Eliza- 
beth, the Queen Mother. . . . A television 
documentary highlighting the life of Prin- 
cess Diana and broadcast over the weekend 
in Britain has been sold to 21 countries. 
“Diana: Portrait of a Princess” was based 
on Andrew Morton’s recent best-seller, “Di- 
ana: Her New Life.” 


Aishwaiya Rai. a 21-year-old architec- 
ture student from India, was crowned Miss 
World 1994, beating 86 other contestants 
in the pageant in Sim City, South Africa. 

Georges Bcndri»cm/AFP 

HONORS — The Austrian Robot 
Schneider received the Prix Mafias 
for foreign fiction for “Sddafes 
Binder” (Brother Sleep). Yves Berger 
won the French fiction Meditis for 
“Immobile dans !e courant du Heave.” 

Ifre-'Concortfe does it ill three 

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AT&T VSADirecf und World Connect* 
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There's no easier, more reliable wav than AT&T 
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WSnBA'ltt . 022-993-011 HUNGARY- . . . BOO- KB- 91 111 

BELGIUM- 0 -888-190-10 tG&JWD*. 999-001 

uk-Caria oo-uao-ooto maxim vtw-sso-ooo 

CROATIA' • 99-38-0011 rOUT' . ...172-1011 

CZECH REPUBLIC 00-420-10101 UKHTBCTEOT . 155-00-11 

DENMARK’ 8001-0010 LITHUANIA* . .... 8 Cl 96 

FINLAND* 9800-180-10 LUXaffiOURG . . . 0-801-0111 

FRANCE 19C-8811 MALTA.. . 0880-850-118 

GERMANY . . 0138-0018 MONACO' 199-0011 

GREECE* 00-800-1311 KETHBMJWDS* 06-022-9111 

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SOUTH AFRICA 0-880-99-0123 

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