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Herald 


INTERNATIONAL 



Hu** 


Sik, 




The World’s Daily Newspaper 


Loses « I Thais Get 

\s r 1 ' ■ Rescue Loan 

Dr,; ^ From IMF 

? ^ * And Asians 

. . V: r ; Japan Leads Group 

;; To Agreement for a 

$16 Billion Bailout 

By Andrew Pollack 

■- % ‘ Ne*' York Time s Service 

TOKYO — The International Mon- 
< et ary Fund and a group of Asian nations 

" v led by Japan agreed Monday to a $16 
■'$ billion rescue of economically troubled 
; ^ Thailand, which has been rocked by a 
‘ •s; , i) currency crisis that has spread through 

■ “ . • ■ ‘■~<a it Southeast Asia, threatening the region’s 
. „>■ j heretofore rapid growth. 

‘-ej " The package of loans, announced 
a fi er a meeting here, is the second 
■"••‘.q: largest international bailout following 

• j the.$50 billion rescue of Mexico after its 

• 1994 currency collapse. 

• : -■>;'» The money will be used by Thailand 

- to help shore up' its foreign reserves, 

v i- which were depleted by a futile attempt 

to save its currency, the baht, from being 

devalued last month. The reserves are 
■needed to pay for imports and meet 

\ . # __ some foreign debt obligations. 

* * i I 'uli Officials announcing the package 

1 LUDan • called it a precedent-setting example of 

regional cooperation, as Asian nations 
{ . , » { j r* ' acted to keep Thailand's problems from 

f \{|| r Q rfd contaminating the whole region. 

tiU 1 *WICI “What is impressive about the fi- 
t . . nancial package this time is we have 

i { i i 1 \f,i substantial contributions from the coun- 
i OvV -'ICilJ L- Tries Asia-Pacific region,” said 
| Hisuke Sakakibara, Japan’s deputy fi- 

— T nance minister for international affairs. 

The IMF, based in Washington, will 

contribute $4 billion , an amount to be 

matched by Japan. 

, _;V“ Australia, Hong Kong, Malaysia and 
— : Singapore will each contribute $1 bil- 
Ron, while Indonesia and South Korea 
- •'-£ ‘will chip in $500 million apiece. The 
- 7* remaining $3 billion is expected to 

• ’ ! ' r - Sf r r -come from the Asian Development 

. 1 Bank, the World Bank and possibly 
from China. The loans will be due in 
-• three to five years and will carry maiket- 

related interest rates. 

. — ?- s L The United States attended die meet- 

• : -- ing Monday, as did Canada. France. 

: ;• Germany and Britain, but none of these 

■ countries is participating directly in the 
rescue. This appears to result partly 
■ . from a feeling mat the Asian countries, 
with the most at stake, should and can 
ban die the problem 
in addition to the government- aid 
\ ■ package. Thailand is expected to receive 

billions of dollars in new financing from 
commercial banks, led by those in Ja- 
. ’ pan. Th ai land ’s finance minister, Than- 

ong Biday a. is scheduled to meet with 
• |j Japan’s major banks on Tuesday. 

' , “I think the discussion between the 

Thai authorities and Japanese banks will 
proceed smoothly.” Mr. Sakakibara 
' . ’’w said. 

. Once the paragon of a fast-growing 
Asian “Tiger” economy, Thailand has 
been hit by a slowdown in exports be- 
;• cause of new competition from China 
and other countries with lower wages 
- and because the baht had been tied to the 

’ ■_ dollar, which strengthened greatly 

against the yen in the past two years. 


PUBLISHED WITH THE NEW YORK TIMES AND THE WASHINGTON POST 


R 


London, Tuesday, August 12, 1997 


\\ i ^ 

. . , No. 35.507 


The Mood on Peace in Mideast: Examine It Carefully 



Clinton Exercises 
New Veto Powers 

3 Provisions of Budget Bill 
Struck Out in Historic Shift 


David Sil*c7nunStfu>rr- 


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i -■ ; : 
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Lilias 
ill Faitei 
ijOMeie 


An Israeli explosives expert carefully examining a hand grenade Monday outside a West Bank blacksmith shop, after a 
device exploded in the shop, killing one Palestinian and wounding another. Israelis said they found five “improvised 
charges” in the shop. Earlier, a U.S. envoy arranged a meeting of Yasser Arafat with the chiefs of Israeli intelligence. Page 4. 

$9 Billion Purchase for Credit Suisse 

In Plan to Buy Winterthur, a New Banking Behemoth Is Bom 


CiMiftledbr Otr Staff Firm Diipnchn 

ZURICH — Credit Suisse Group, 
Switzerland’s second-largest bank, said 
Monday it planned to acquire Winter- 
thur Swiss Insurance Co. in a deal that 
signaled a new wave of consolidation in 
response to the increasing complexity of 
global financial services. 

Shareholders of both companies are 
to vote Sept. 5 on the all-stock deal, 
valued at around $9 billion, which 
would create one of the world’s top 
providers of banking and insurance ser- 
vices. 

The combined group would manage 
about 700 billion Swiss francs ($465.6 
billion) in investment funds and have 
about 1 5 million clients. It would have a 
market capitalization of 50 billion Swiss 
francs. 


Credit Suisse’s chief executive, Lu- 
kas Muehlemann, described the acqui- 
sition of Winterthur as “a powerful, 
forward-looking response to develop- 
ments in the financial-services mar- 
ket.” 

Financial-services companies are 
joining forces across borders to trim 
costs and increase revenue. ING Group, 
the largest Dutch financial company, 
said last month it would buy Equitable 
of Iowa Cos. for $2.6 billion, doubling 
its U.S. life-insurance and retirement- 
savings business. 

The U.S. investment house Morgan 
Stanley is considering acquisitions in 
the insurance area, as is the Dutch bank- 
ing concern ABN-AMRO Holdings. 
Royal Bank of Canada said in June it 
would buy London Insurance Group. 


In addition, Prudential Corp., Bri- 
tain’s largest insurer, approached Na- 
tional Westminster Bank a few months 
ago about a possible merger, although 
nothing came of iL 
Behind die transactions are the de- 
sires of banking, securities and insur- 
ance executives to build global finan- 
cial-services companies with customers 
across all product lines. Securities 
companies see life insurers and fund 
managers as steady, stable sources of 
income, while the insurers and fund 
managers benefit from the customer 
lists of the securities firms. 

The other main attraction of insur- 
ance companies to securities firms and 
banks is their expertise in assessing risk. 

See DEAL, Page 4 


By Brian Knowlton 

tniemuiioihjl Herald Triburu 

WASHINGTON — President Bill 
ClintoD made history Monday by strik- 
ing three narrow provisions from the 
budget-balancing legislation asreed 
upon recently by the White House and 
Republican leaders. It was an exercise 
more notable for its symbolism than for 
the amount of money involved. 

Limited, symbolic use of the veto 
could have a broad deterrent effect, Mr. 
Clinton said Monday. He said he wanted 
to “send a signal that the Washington 
rules have changed for good.” 

It was the first time a president had 
used die newly gained power to excise 
from a broader bill specific language of 
the sort long used by legislators to re- 
ward political donors or small constitu- 
ent groups, in the past, presidents could 
veto only entire bills. 

The new line-item veto power. Mr. 
Clinton said at an Oval Office news 
conference, will allow presidents to 
“protect taxpayers and to ensure that 
national interests prevail over narrow 
interests.” He called the veto a "tool 
designed to fight against waste and un- 
justifiable expenditures." 

The president was careful to say that 
he intended to make limited use of the 
new power, that the vetoes cast Monday 
had been thoroughly studied, that he 
would target only provisions “incon- 
sistent with good public policy’ ’ and that 
he had instructed his advisers to scru- 
pulously respect the bipartisan agree- 
ments underpinning the budget accord. 

But the Republican speaker of the 
House. Newt Gingrich, immediately crit- 
icized the president's action. In a stinging 
statement, a Gingrich spokeswoman ac- 
cused the president of engaging in ' ‘petty 
politics.” and said that Republicans fell 
"blind-sided” by the vetoes. 

Yet, another influential Republican. 
Trent Lott, the Senate majority leader, 
was measured in his reaction. Mr. Lon 
was the sponsor of one of the provisions 
vetoed, regarding tax breaks for banks 
and insurance companies investing 
overseas. But Mr. Lott said Monday that 
he supported the principle of a line-item 
veto, and had not decided whether to 
fight the president's action. 


Archaeologists Shudder at Athens’ Metro Project 


See THAILAND, Page IS 


By Celestine Bohlen 

Ne w York Times Sen ice 

ATHENS — Ever since Athens start- 
ed building a subway system six years 
ago, archaeologists have been holding 
their breath, fearing damage to the un- 
known treasures that lie beneath the 
city’s surface. 

As it turns out, buried treasures 
haven't been die chief problem. 

Working together with Attzko Metro, 
a company created by the government, 
as it burrows beneath the city. Greek 
archaeologists have unearthed a vast 
store of rich finds — Roman baths, a 
classical bronze head, ancient walls, un- 
disturbed grave sites, including one of a 
dog buried with his leather collar — 


mach of which will be put on display 
inside die subway stations. 

Instead, what has raised alarms here 
and abroad is a plan by Attiko Metro that 
many feel could threaten one of the city's 
best-known, and thoroughly excavated 
sites — the Kerameikos cemetery, 
where the dead were buried from the 
third millennium B.C. to Roman times. 

Underlying the debate is the inex- 
orable logic and pressure of the $3 bil- 
lion, 18-kilometer (13. 4-mile) subway 
itself, now well behind schedule. It is 
die largest construction project in 
Greece, almost entirely financed by 
loans and grants from European Union 
institutions, and a key element in the 
city’s bid for the Olympic Games in 
2004, as it was in its unsuccessful bid for 


the 1 996 Games. Now. subway officials 
are saying that half of its 21 stations will 
be open by late 1999. 

The new subway is considered crit- 
ical for the future of Athens, a city 
whose population has doubled in the last 
30 years to 3.5 million while the number 
of cars has skyrocketed. City planners 
see no other way to relieve the chronic 
traffic jams and, most important, the air 
pollution that they produce. 

Pollution, which erodes marble’s 
smooth surface and erases the features 
of statues, is also the biggest enemy of 
the ancient monuments, a fact that 
makes archaeologists and classical 
scholars supporters of the subway. 

See ATHENS, Page 4 



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Planned 
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Top Clinton advisers had spent days 
debating ihe wisdom of the president’s 
applying the line-item veto io the 
budgei-baJancing bill; agreement on the 
bill was reached only after strenuous 
efforts by the While House and Re- 
publican leaders. In the end. Mr. Clinton 
vetoed only 3 of 79 eligible provisions. 
Those ihree would have: 

• Saved New- York about S200 mil- 
lion bv exempting the slate from a fed- 
eral finding thai New York might have 
unfairly taxed some hospitals to raise 
money for Medicaid payments. No oth- 
er state would have benefited from the 
provision. 

• Deferred capital -gains taxes on the 
sale of food-processing plants to farm 
cooperatives. Much of this provision 
involved the single sale of a Utah sugar 
beet refinery by a company controlled 

See CLINTON, Page 4 


President 
And Blair 
Polish Those 
Special Ties 


By Audrey GiUan 

HWuhjcs 'll h'M Semi r 

WASHINGTON — The British 
ambassador. Sir John Kerr, said at a 
recent luncheon here that he was 
returning io his homeland because 
there was nothing left for him to do 
in Washington. President Bill Clin- 
ton and Prime Minister Tony Blair 
are gening on so well, he joked, that 
the opportunity for diplomats to 
heal any political rifts seems to 
have gone. 

The so-called special relation- 
ship between the United States and 
the United Kingdom has become 
something of a "new special re- 
lationship” in the months since the 
May 1 election of the Labour gov- 
emmem in Britain. Whenever the 
two leaders meet, the ambassador 
said, they can be seen huddled in a 
comer shooting the breeze like old 
friends. Conversation can range 
from welfare policy and education 
To guitar riffs and how to raise a 
child out of the public eye. 

The closeness of the new special 
relationship was to be reaffirmed 
next month when Mr. Blair was to 
make his first official visit to Wash- 
ington. But the two leaders cannot 
find a date that suits them. Mr. 
Clinton wants to help his daughter, 
Chelsea, settle in at Stanford Uni- 
versity and Mr. Blair has both polit- 
ical and family commitments. 

A British Embassy spokesman 
said there is no lack of desire for the 

See FRIENDS, Page 4 


Engulfed in Ash and Gas 

Volcano Forces Most on Montserrat to Flee 



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AGENDA 

11 Tokyo Brokerage Executives Resign 


By Larry Rohter 

' • . New York Times Service 

SALEM, Montserrat — Hie long- 
abandoned capital, Plymouth, lies in 
tains, destroyed a week ago by a tide of 
volcanic ash and superheated gas. 

Nearly two-thirds of the island’s pop- 
ulation has been evacuated, and the 
44)00 people who remain now wonry that 
all of thetr liny Caribbean island may 
soon be imfit for human habitation. 

■’ ‘The edge of the uninhabitable zone 
keeps moving further and further 
north,” Margaret Wilson, a Jongtime 
resident, said Friday morning, just 
i minutes before the Soufhere Hills vol- 
cano erupted again. It sent an ominous 
cloud mushrooming 35,000 feet 
(30,500 meters) into the sky, blotted out 
the sun and rained ash and pebbles all 
over this British colony- 

Newsstand Prices _ _ — 

Bahrain 1.000 BD Malta 55 c 

Cyprus C £ 1.00 Nigeria— 125,00 Naira 

Danmark _.14.00 DKr Oman 1 - 250 Xn 

Finland 12.00 FM Qatar 10.00 OH 

Gfrater, £0.85 Rep- frelancUR £ 1.00 

Great Brfiain-jeaso saucf Arabia —10 SR 

Bgypt J>E5£0 S.AMca.-R12 + VAr 

1.250 JD UAE - ia00 ^ 

«nya K. SH. 160 U.S. Mi 

l $uwait 700 Fte Zmb0b«e...-Zitn$*« JO 


9 ^Y629m050Z5 


“We’ve got no port anymore, no 
government buildings, no hospital and 
noaiipoit,” she added. “Soyou wonder 
how much longer we're going to be able 
to hang on.” 

Montserrat was often called “The 
Emerald Isle of the Caribbean” in honor 
of both the Irish colonists who settled 
here in the mid- 1600s and the lush land- 
scape that attracted upscale tourists. For 
two years, since the volcano awoke 
from four centuries of dormancy, the 
residents have been confronting dis- 
aster. But over the last two months, the 
situation here, 350 miles (550 kilo me- 
ters) southeast of Puerto Rico, has taken 
a sharp turn again for the worse. 

On June 25, Soufiiere began spewing 
a river of ash, rock and gas, heated to 
temperatures as high as 900 degre<» 
Fahrenheit (430 degrees centigrade), 
down its slopes at speeds of more than 
100 miles an hour. Those lethal pyro- 
clastic flows,” as volcanologists caU 
them, left at least 10 people dead and 
forced the abandonment of several vil- 
lages. Nine more people are missmg and 
plumed buried under volcanic debris. 
*Tben, on July 31, after a respite that 

It amckly claimed the ■ abandoned 
raoitaL Plymouth, as its most spectac- 
gas and rock Jumped 

over a gully filled to overflowing with 
debris and set the town on fire. 

See MONTSERRAT, Page 4 








-•••*•3- ■ -\v 



• •• • • 

‘ JS ^ 



Wlb- DnWTlr AjtMdwI Proa 

EYE ON CAMBODIA — All Aiatas, the Indonesian foreign minister , 
left, and Domingo Siazon of the Philippines saying Monday that 
ASEAN would continue trying to end the conflict in Cambodia. Page 6, 


A scandal involving payoffs to a 
racketeer led the top echelon of Ya- 
maichi Securities to step down on 
Monday. Shares of the fourth largest 
Japanese brokerage jumped 13 percent 
after news of the resignations. Exec- 
utives of a bask and brokerage house 
stepped down earlier in connection 
with similar deals with the racketeer. 

Wall Street Awaits 
Inflation Reports 

U.S. stocks were mixed late Mon- 
day, with oil and telephone companies 
gainin g while technology and drug 
shares were down, as investors reg- 
istered concern that the Federal Re- 
serve Board might raise interest rates 
to contain inflation. 

The Dow Jones industrial average 
was at 8,074.42. up 43.20, in late trad- 
ing, with declining issues leading ad- 
vancers by a 16-to-1 1 ratio on the New 
York Stock Exchange. The Standard & 
Poor’s 500-stock index was up 2.51 at 
937.05. 

Stocks suffered their worst slide in 
more than six weeks on Friday as bond 
yields surged. The Dow fell 156.78 to 
8,031.22, after being down as much as 
210 points. 

Investors will be watching reports 
on inflation and retail sales mis week 
for clues on where interest rates are 
headed. Signs dial foe economy is 
growing too fast might prompt the Fed- 
eral Reserve Board to raise benchmark 
borrowing rales. Page 12. 


who was compensated for losses and 
for not making trouble. "Our firm is 
determined to make a clear break with 
the negative legacy of the past.” said 
Shohei Nozawa. die new president of 
Yamaichi. The outgoing chairman and 
president of Yamaichi will stay on with 
the brokerage as advisers, a traditional 
arrangement in Japan. Page 11. 


■ The Dollar H 

New Yorti 

DM 

Monday ® 4 P M 
l.B 65 

previous dose 
18455 

Pound 

1 59 

1.5875 

Yen 

116.175 

114.825 

FF • 

S2BQ5 

6.2183 

H % The Dow li 


Mca day dose 

pratfAuSd&se 

+30.89 

8062.11 

803122 

■ S&P 500 ■ 

change 

Monday 0 4 P.M 

pravnus dosa 

+3.46 

937.00 

933.54 

PACE TWO 


Colombia: Dressing to Avoid Death 

THE AMERICAS Page 3. 

Die Soaring fogal Costs of Politics 

Books : Page 7. 

Crossword Page 20. 

Opinion Pages 8-9. 

Sports Pages 20-21. 


Pages 16 - 18 . 


Sponsored Section 
Built for Business: China 


The IHT on-line http://www.iht.com 








PAGE mo 


Coping With Violence / A Boom in Bulletproof Clothing 


In Tense Colombia, Suits Are for Survival 


By Serge F. Ko vales ki 

Washington Post Service 


B OGOTA, Colombia — A preacher had the 
covers of his Bible bulletproofed to shield 
his “heart or head” fromgunfzre. A butcher 
has outfitted himself with an armor vest as a 
safegu ard against pistol-packing robbers. And some 
people have bought custom-made tuxedos, ball 
gowns and evening dresses that resist lead. 

In a country notorious for having one of the 
world's highest homicide rates, Colombians and 
foreigners living here are tuning to protective 


sensed vulnerability amid the complex atmosphere 
of violence that continues to roil this South Amer- 
ican nation. 

While politicians, diplomats and corporate ex- 
ecutives here traditionally have taken extraordinary 
security precautions out of fear of vengeful drug 
cartels and leftist guerrillas, a broader segment of 
society is now trying to steel itself against terrorism 
and crime — albeit without being too conspicuous 
and disruptive of individual lifestyles. 

“There are more common people — salesper- 
sons, coffee farmers, butchers and other small busi- 
ness owners — who are investing in discreet pro- 
tection like bulletproof vests, designer jackets and 
briefcases,' ' said Nicolas Trujillo Arango, business 
manager of Armor International, a security com- 
pany here that sells such products. “It's not just the 
chiefs of industry and politicians anymore.” 

Some companies are even considering starting 
children’s lines of bulletproof clothing following a 
number of requests from concerned families. Sev- 
eral months ago, for instance, a businessman bought 
vests for his two children, aged 10 and 14, marking 
the first time that anyone in the industry here could 
remember such a purchase. 

Although a long reign of terror sponsored by 
Colombian drug lords — particularly car bombings 
in major cities — subsided following die police 
killing of the Medellin cartel kingpin. Pablo Esco- 
bar, in a 1993 rooftop shoot-out, violence remains 
virulent in this nation of 36 million people. Fur- 
thermore, a deepening recession and the rising 
tmempioymem it nas brought have heightened fears 
that public safety will deteriorate further. 

There is also growing concern among city dwell- 
ers about reports that Colombia's potent leftist 
guerrilla movement, which already controls large 
swaths of the countryside, is starting to establish a 
presence in urban areas. At the same time, atrocities 
allegedly committed by state security forces and 
rightist paramilitary groups have contributed to the 
social insecurity. 

gs and other abuse 

guerrillas and die military in 1996 made it the most 
infamous year In the nation's history for h uman 
rights violations, according to a report by the 
Colombian Commission of Jurists. On average, 10 
Colombians were slain every day for political or 
ideological reasons, while one person disappeared 
every two days, tire December 1996 study showed. 

It is estimated that no one has been convicted in 
97 percent of cases related to political violence, and 
impunity is virtually guaranteed in army courts. 

Against this backdrop, security experts say that 
political candidates, hitting the hustings in prep- 



Wuh Mi Wiw fiiwftwi 


Rescue workers searching through debris left by a bomb that exploded June 17 in 
the parking lot of a police station near Bogota* which is plagued by violence. 


aration for elections in October and the middle of 
next year, have been snapping up unusually large 
quantities of fashionable bulletproof clothing, in- 
cluding double-breasted blazers, suits, leather jack- 
ets, overcoats and raincoats. Tire garb complements 
the bulletproof podiums and armored cars that are 
also a must on the campaign trail here. 

“The inconspicuousness of the clothing is not 
only strategic in concealing exactly how one is 
trying to protect himself from an assassin’s bullet, 
but it is also typical of the Colombian mentality of 
refusing to be outwardly scared or cowed by the 
violence that has historically been such a plague for 
our nation,” said one senator who is running for re- 
election and who recently purchased a protective 
blazer and vesL 

T HE RACKS of protective dress wear in- 
clude popular designer names, such as 
Tommy Hilfiger ana Nautica, come in vir- 
tually all colors, and can be adapted to 
whatever level of protection one wants. Security 
companies fortify the clothing with sheets of light- 
weight bulletproof materials, such as Kevlar, Spec- 
tra or Twarou, that can be removed and placed in 
other specially made garments, diversifying the 
wardrobes of those who rely on this kind of gear. 

. The clothing is offered with varying degrees of 
ballistic resistance. For the equivalent of $500, one 
can buy a so-called Level 1 jacket, which will deflect 
small-caliber fixe. About $800 buys Level 4 pro- 
tection against such firepower as a 9mm UzL In 
general, such clothes are not too heavy; at Armor 


International, for instance, vests that can resist a .357 
Magnum round weigh just under four pounds. 

John Murphy, cofounder of the Bogota firm 
Caballero ana Murphy Ltd., which sells made-to- 
order bulletproof clothing, said that since the com- 
pany opened three years ago it has been posting a 300 
percent annual increase in sales of vests and jackets, 
making it difficult to keep up with demand. 

Until about three years ago, most bulletproof 
vests were imported and sold in bulk to Colombian 
institutions. Today, they are being manufactured 
here by a handful of companies, and faith in the 
domestic product is high — as reflected in growing 
sales to group and individual buyers. “Now, after 
shooting at each other for so long, people believe the 
vests work.” Mr. Murphy said. 

He said the majority of people buying his 
products had had a brush with violence or Knew 
several individuals who had been at risk. “Colom- 
bians usually don't have fear easily,” Mr. Murphy 
said. '‘They will not buy armor unless they or a 
relative has been threatened, or when they finally 
realize that two or three persons they know are in 
danger.” 

For Ricardo Castillo, a Bogota preacher, the 
decision to have the covers of his Bible bullet- 
proofed stemmed from the gang violence and other 
crime chat is rampant in the neighborhood of his 
church. 

His son, Jonathan, said his father could use the 
Bible to shield his heart or head. “A policeman 
armors his vest, a politician armors his suit.” the son 
said. “ And a preacher armors his Bible.” 


Blood Rivalry Thwarts . 
Burundi’s Peace Quest 


By James C. McKinley Jr. 

A>w York Times Service 

BUJUMBURA, Burundi — In the 
year since he seized power in a coup. 
Pierre Boyoya has consolidated his con- 
trol over this e thnically torn African 
country, expanded the army to contain a 
rebel movement and begun peace talks 
with rebel leaders. 

But Burundi is as far from last 


Guam Crash Inquiry Winds Down as Typhoon Nears 


Oxxfdrd by(\rS*£fn}ai PfapasrVi 

AGANA, Guam — The investigation 
at the site of a Korean Air jet crash in 
Guam is nearly over, U.S. government 
agents said Monday, and families pre- 
‘ to take victims’ bodies home to 
i Korea. 

The death toll in the crash rose to 226 
when a 10-year-old Chinese- American 
died at a Texas hospital where she was 
being treated Jbr severe bums, a Korean 
Air official said. 

That left only 28 survivors from die 
crash of Flight 801, which plowed into a 
ravine three aides (five kilometers) 
short of the Ag ana airport runway dur- 
; a rainstorm last Wednesday, 
ivestigators from the National 
ion Safety Board have 
/ sent much of fee data about the 
crash to Washington for analysis and 
will be leaving Guam in days. 

“Our operation here is winding 
down,” said George Black, a member 
of die safety board. 

But the safety board’s investigators 
said they were still months away from 
figuring out what caused the crash. They 
hive found, however, that an airport 
warning system that might have pre- 
vented the accident was not working at 
the time of the crash. 

American armed forces were to bring 
heavy equipment to the crash site Mon- 
day to help a team from the safety board 
carve up and remove large pieces of tbe 
wreckage, said a spokesman, Keith Hol- 
loway. 

The authorities had bulldozed a dirt 
road to the site on Sunday, but an ap- 
proaching typhoon threatened to turn 
tbe path and me area around the wreck- 
age into mud. 

Guam was forecast to be hit with 
wind gusts of up to 40 knots Tuesday 
when the eye of the storm, Typhoon 
Winnie, is forecast to pass north of the 
Northern Marianas Islands, Thomas 
Yoshida of the National Weather Ser- 
vice said. 

Meanwhile, workers were struj 
to remove the remaining bodies 
the crash site. So far, 162 complete 
remains and 41 partial remains nave 
been recovered from the rocky hillside 


where die plane went down, Mr. Black 
of the safety board said. 

At least 13 bodies have been iden- 
tified, said Clifford Guzman of the 
Guam governor’s office. Officials said 
earlier that 39 bodies bad been iden- 
tified, but Mr. Guzman said that number 
included victims whose families have 
not yet been notified or whose identify 
was only tentatively determined. 

Arrangements were under way with 
die vic tims ' families, most of them 
South Korean, to send the identified 
bodies borne. Mr. Guzman said that 
should begin Tuesday. 

Investigators believe the pilot had full 


control of die jet when it crashed, and 
are looking for dues to explain why he 
was flying so low. 

Investigators are still looking at 
whether all the pilot’s instrumentation 
was working and what impact the driv- 
ing rain may have had. They also are 
analyzing tbe flight's data and voice 
recordings. 

The Federal Aviation Administration 
was trying to determine when the faulty 
system, blown as the Radar Minimum 
Safe Altitude Warning System, should 
have alerted officials that Flight 801 
was flying too close to the hillside. 

The system, which is monitored by 


the appr 

aircraft gets within 55 miles of the run- 
way, normally issues an alert if a plane 
is flying too low, and officials on the 
ground can then inform the pilot. 

But federal investigators said Sunday 
that an error was apparently inserted 
into the system’s software during an 
overhaul. 

Investigators said the mistake was not 
to blame for the crash, but a property 
working system could have allowed air 
traffic controllers to direct tbe pilot of 
the Boeing 747 to pull the jetliner to a 
higher altitude as he approached Guam 
International Airport. (AP. AFP ) 


peace as it was the day Mr. Buypya 
over, because tbe fundamental forces that 
since 1993 have fueled a tautai and slow- 
burning war between the Hutu majority 
and Tutsi minority have not rJiangwt 

Tbe war grinds on even though tbe 
entire region wants it to end. In fee last 
four years, the struggle between the 
Tutsi and Hutu ethnic groups in Rwanda 
and Burundi has caused hundreds of 
thousands of deaths, disrupted trade, 
displaced millions and sown chaos in 
Central Africa. 

Last fell, fee conflict spilled ova- into 
what was then Zaire. 

Ethnic Tutsi is that country, aided by 
Rwanda, began a rebellion feat over- 
threw President Mobutu Sese Seko in 
May and routed Hum guerrillas oper- 
ating along fee border. 

It was in Burundi in 1993 that the 
regional upheaval had its beginnings 
when Tutsi officers murdered Burundi's 
first elected president, a Hutu, setting 
off a bloodbath. Yet unlike the situation 
in the rest of the region, the balance of 
power in Burundi has remained static 
since then. 

Mr. Buypya is beset wife enemies on 
both sides of fee ethnic divide, who 
could sabotage any peace plan, dip- 
lomats and local politicians said In- 
deed, militant Hutu and Tutsi leaders 
seem to have hardened their positions in 
the approach to talks next month in 
T anzania. Few diplomats are optimistic 
about peace. 

For his part, Mr. Buyoya put a brave 
face on things in a recent Interview. He 
said he was convinced that tbe talks 
could produce a government satisfac- 
tory to fee Tutsi minority, who have for 
centuries controlled fee country, and the 
Hutu majority, who have historically 
been disenfranchised 

"Democracy is posable,” Mr. 
Buyoya said, “but we have to reinvent 
our democracy , a democracy adapted to 
Burundi’s realities, that would take into 
account our culture and experience, our 
social and political reality. We have to 
adapt democracy to what we are.” 

But when asked what he would pro- 
pose at fee negotiations. Mr. Buyoya 
declined to answer. The details, he said, 
must be worked out among parties and 
rebel factions. 

For this president, a Tutsi, fee details 
could be deadly. He was put in power by 
Tutsi business leaders and military of- 
ficers who have fee most to lose if 
democracy is re-established and a Hutu 
president is elected. 

Mr. Buyoya acknowledged feat he 
ran the risk of another coup if any agree- 
ment be achieved did not guarantee the 
Tutsi elite’s hold on influence and fi- 
nancial advantage. 

"I will try to bring a peace accord 
without causing a coup.” he said. “You 
have to manage it so the Burundi people, 
including the military, are part of the 
accord.” 

That will not be easy. The Tutsi have 
historically been the ruling class. Today 
fee overall population of Burundi is 
about 6 million; 15 percent are Tutsi. 


a 1987 coup against President Jean-Bap- 
tiste Bagaza. a longtime dictator. After 
selling most of fee state-owned compa- 
nies to his friends, Mr. Buyoya led the 
country to its first elections in 1993. 

Though be predicted that he would 
win. Mr. Buyoya lost to the Hutu can- 
didate, Melchior Ndadaye. Fourmonfei 
later, Mr. Ndadaye was killed in a coup 
by Tutsi paratroopers. Almost imme- 
diately Hutu youth gangs started killing 
Tutsi in the countryside; the army re- 
sponded with widespread killings of 
Hutu civilians. It is generally accept# 
feat more than 100,000 people died. ; ( 

Successive coalition governments jk 
failed to restore order, and the real v 
power remained firmly in the hands of 
the Tutsi-led military. 

When senior officers carried out an- 
other coup last year, they chose Mr. 
Buyoya to take over tbe presidency, 
partly because, as a moderate, he was 
seen as palatable to fee big foreign 
powers. 

Despite his success in pushing back fee 
guerrillas, Mr. Buyoya has few friends in 
the capital, save some of the businessman 
and military commanders who asked him 
to take power to protect their interests. - 

Among ordinary Tutsi, he is widely 
seen as having sold out by agreeing to 
talks wife fee Hutu rebels, whom they 
accuse of carrying out genocide after the 
1993 coup. 

Mr. Buyoya's own party, fee mainly 
Tutsi Union for National Progress, is m 
split over fee question of talks. The 
overheated propaganda in the capital has 
made it a certainty that a Hutu pres- 
idency will bring genocide against Tut- 
si. “The Tutsi are not scared of elec- 
tions,” said Charles Mukasi, secretary 
general of the president's party. “They 
are scared of being exterminated.” 


Caroline Island 
Now ‘ Millennium * 


Agence France-Presse 

AUCKLAND — Kiribati plans to 
change fee name of tbe uninhabited 
Caroline Island to Millennium, accord- 
ing to a broadcast Monday from Radio 
Kiribati. 

This followed its controversial mea- 
sure to change fee International 
Dateline feus beating New Zealand's 
Chatham Islands to the distinction of 
being the first place fin fee planet to sefc 
in the new millennium, a move feat 
prompted protests from Britain’s Royal 
Observatory. 

affairs secretary, said that fee renaming 
had yet to be confirmed by fee cabinet. 
Of the dateline change, whjj^i^^e 
about two years ago. he said. “It was opt 
done wife any regard at fee time to fee 
millennium but solely for administra- 
tive purposes alone.” 

Kiribati straddled the dateline and 
was fee only nation to conduct activity 
within two days at any one time. Theft 
Kiribati proclaimed that it would 
thenceforth occupy one day az a rime. 
Most people lived west of fee dateline, 
so fee whole country went that way. =• 

Thus Caroline 4,200 kilometer^ 
(2.600 miles) east of fee capital, 
Tarawa, and 900 kilometers norm of 
Papeete. French Polynesia, would se£ 
the day before Tonga or New Zealand 
The new millennium is turning into a 





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The army, dominated by Tutsi, savagely major industry in the Pacific because df A 
Hutu uprisings in 1965. 1972, earnings to be generated from tourism. Y 


repressed Hutu 

1988. 1991 and finally in 1993. 

Mr. Buyoya, an officer in the elite 
Tutsi paratroopers, first seized power in 


Hotels at islands likely to see the first 
light on fee first day of the year 2000 ate 
already firliy booked. 


TRAVEL UPDATE 


WEATHER 


Italian Rail Workers 
Set 48-Hour Strike 

ROME (AFP) — Workers for the 
Italian raiiraods will strike for 48 hours 
starting at 9 P.M. Aug. 21 as part of 
union attempts to get the state railroad to 
negotiate a new national contract, ac- 
cording to a union statement issued 
Monday. 

There was no immediate response 
from management to the announcement 

More TAP Disruption 

LISBON (Reuters) — Pilots at TAP- 
Air Portugal were preparing to take their 
battle over working hours to court as fee 
struggling airline canceled three more 
flights Monday. 

Planes bound for Amsterdam, Zurich 
and Munich were grounded despite a 
government decree on Saturday order- 
ing the pilots' union to call off a se- 
lective strike. 

Where Are Japanese? 

HONG KONG ( AFP) — Hong Kong 
has opened an operation aimed at luring 
back Japanese tourists who have been 
-staying away in droves since the final 
days of fee British colonial era. 

The number of Japanese visitors, who 


last year contributed 1 8.5 percent of the 
travel industry’s earnings of 84.5 billion 
Hong Kong dollars ($10.87 billion ), has 
declined 48 percent since June 1996. 
The Hong Kong Tourist Association 
says 789,000 visitors came to Hong 
Kong in June this year, down 14 percent 
from the same month a year earlier. 

Worried about fee Japanese snub, fee 
tourist association recently flew 200 
tour operators and journalists to Hong 
Kong to show thorn that, in their view, 
nothing has changed. 

Potsdam, the former residence of 
Prussia's kings, will open a museum 
highlighting the history of fee defunct 
Gorman state by 2001 , promoters of the 
project said Monday. (AFP) 

Hundreds of commuters pelted 
trains wife stones and blocked tracks in 
Bombay on Monday following delays 
caused by a one-day strike, officials 
said. (AFP) 

Officials used helicopters to start 
bringing hundreds of people out of a 
canyon flooded by torrential rains near 
Supai, Arizona. About 350 to 400 tour- 
ists were vacationing in Cataract Can- 
yon when 3 to 4 inches (10 to 12 cen- 
timeters) of rain soaked fee area in two 
and a half hours Sunday morning. (AP) 


Europe 


Yocte, 

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Bruisers 

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Budapest 

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27780 

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29/84 

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27/80 

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Genwna 

27/80 

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28*4 

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Heterid 

18/64 

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21/70 

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27780 

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22/71 

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2750 

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2079 

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Forecast for Wednesday through Friday, as provided by AccuWeather. 



North America 


Asia 


Europe 

Heavy thunderstorms will Plenty ot sunshine across Soaking rains aie likely 
roll across the Northeast central and southern near me east coast ol 
and New England Europe from Wednesday China south ot Snanghai. 
Wednesday, then pleasant through Friday. Spain. Dry ana hoi weather with 
with sunshine Thursday southern France and most lots ol sunshine is in store 
and Friday. Sunny, hot and ot Italy wMI have readings lor Belling ana mosi ot 
dry in much ol the Wesi m the middle 30s. London nonneastBm China, ft may 
with monsoon thunder- win be comfortable with thunderstorm in Tokyo 
storms in the central and some sun and a shower or Wednesday: otherwise, 
southern Rockies. Steamy two. Out heavier rains will Seoul and Tokyo will be 
with a lew thunderstorms be across northern Eng- hot and humid wtih sun- 
m the Southeast land. shine. 


North America 


Asia 


Today 

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-•MIS.*' 



PAGE 3 


THE AMERICAS 


. • .-5s, i q 

. • v g 


The Big Winners in Campaign Probes ( Surprise!) Are Laivyers 




' ‘ r: , •’ i, - v'l/id 


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By Ruth Marcus 

Weshingtan Pusi Serv ice 

Vnl^^ SlSTON- l? 19%. the political con- 
bucks » 
In 1997, it is the lawyers. 

. Wa f er S ate - Iran-contra and White- 

finfnrf atI 0 , S, b T f0re iL *** sprawling cam- 

SSfriSSJE?? T- with its international 
and m ulUple-pronged inquiries 
31x1 both houses of 
Wyw? ~~ ^ been very lucralive for *he 

’Jft.Hoft? 0 ® Debevoise & Plimpton, 
iff* Democratic National Committee's outside 
law firm, are already $8.5 million — nearly triple 

>^T 0ant Questionable contributions the 

- ? a S' “** raramed to donors. 

' 4 fc^ l SS )e toxnocnric National Committee 
faces $500,000 in legal bills — with more to come 


from the lawyers for 17 current and former 
woncejs whose expenses it has agreed to pay. 

This really dwarfs niostcivil litigation,” said 
Joseph Sandier, general counsel of the Demo- 
cratic National Committee. 

By comparison, the Republican National 
Committee has spent far less — $300,000 to 
S400.01X) — according to its general counsel, 
Michael Grebe, and hu & budgeted $500,000 for 
the inquiry. 

In one graphic example of the “Jawyeriz- 
atiop of political life. Haley Barbour, a former 
chairman of lhe Republican National Committee, 
was accompanied by seven attorneys when he 
testified last month before the Senate Govern- 
mental Affairs Committee. 

They included his lawyers at Williams & Con- 
nolly and the Republican National Committee’s 

outside lawyers from Foiey & Lardner. 

Mr. Grebe estimated the cost for that ap- 
pearance alone was $1,000 an hour — which 


doesn't account for his time, which he donates. or 
the costs of the committee’s in-house lawyer. 

”To the layperson, it seems curious but it is 
sensible,” Mr. Grebe said of Mr. Barbour's legal 
squad. 

They were needed, he said, to provide Mr. 
Haley with the instant response he would need if 
something came up involving a particular doc- 
ument. 

If modem political campaigns have become 
big-budget affairs, with their supporting cast of 
consultants and pollsters and media buyers, mod- 
em political scandals have become something of 
the same, with a big cast of white-collar crime 
defease lawyers. 

The current investigation may be the biggest of 
them all. 

For the relatively small white-collar defense 
bar, having a client — especially a high-profile 
one — is a matter of pride. 

Even if their clients are slow to pay — or 


maybe will not pay at all — the lawyers still want 
to be involved. 

‘■Particularly lawyers in the criminal defense 
bar — we like a good story,” said Robert Luskin, 
who is representing a former White House aide, 
Mark Middleton. “You want to be where the 
action is. It's professional standing. AH die other 
horses are out of the firehouse. Why are you still 
inside? There's clearly a cachet.” 

Mr. Luskin said he is trying to trim costs for his 
client by charging a reduced rare, writing off pan 
of his fees, and taking mpney-saving steps such 
as attending depositions without an associate. 

"The object is to leave him standing at the end 
of this thing." he said. 

Some observers say the legal costs of the fund- 
raising scandal are a symptom of the larger woes 
of an increasingly expensive legal system. 

Walter Olson, a scholar at the Manhattan In- 
stitute who has written extensively on the costs of 
litigation, said: “We've set up a system in which 


to bring an accusation is to inflict the kind of costs 
that very few individuals or institutions can with- 
stand, and when we do that we put the effective 
power in the system into the hands of those who 
can get an investigation going.” 

He added: "What I see here is a pattern that 
goes on, unfortunately, every day in the legal 
disputes of private life.” 

Some lawyers involved in the inquiry look at 
the committee’s bills with astonishment at the 
si 2 e. envy that they’re not earning at thar rate and 
perhaps relief that they will have an even more 
egregious example to point to the next rime a 
client challenges a big bill. 

“It's like when some house in your neigh- 
borhood sells for an exorbitant "amount of 
money,” said one lawyer involved in the cam- 
paign finance case. 

“On the one hand, you feel really bad for the 
suckers who bought it. On the other hand, you 
think, ‘Well, my house just went up in value.’ ” 


Stripped of Power, Barry Is Defiant 

D.C. Mayor Says Citizens Should ‘ Rise Up’ for Home Rule 


POLITICAL NOTES 


By Vernon Loeb 

"J Washington Post Serv ice 

WASHINGTON — For the first time 
7n nearly a decade and a half as mayor of 
Washington, Marion Barry wasn’t in 
charge. It had to come as a shock. 

The government — his government 
— was mostly gone, turned over to the 
District of Columbia financial control 
board. The cabinet — his cabinet — was 
nodding obediently to his nemesis, An- 
drew Brimmer, the control board’s 
chai rman 

But if Mr. Barry was suffering from 
vertigo, he never wobbled in public, 
turning his own demise as a government 
manager into what be clearly hopes will 
become a potent political issue: the vir- 
tual suspension of home rule. 

“The Republicans want to control this 
city through the control board,” Mr. 
Barry said. “It’s more than just Marion 
Barry. People are intelligent. J don 't have 
.to tell the community that their rights 
have been taken away. But I’m going to 
'continue to tell the truth, and continue to 
.tell the people that what happened was 
not right to do, and continue to urge the 
community to rise up, in anger.” 

Jack Evans, a Democrat who is a 
member of the City Counci] and the only 
^unofficially declared candidate for next 
year’s mayoral race, sees it all as vintage 
3 any. 

■_ “The mayor’s doing the only thing he 
can do — and what he does best,” Mr. 


Evans said. “He's an activist at heart, not 
a government manager. Barry can’t argue 
the management part. Much of this was 
done because of his poor management." 

Mr. Evans and numerous others, in- 
cluding Representative Thomas Davis 
3d, Republican of Virginia, and Senator 
Lauch Faircloth, Republican of North 
Carolina, also insist that Mr. Barry's oft- 
repeated charge that democracy has 
been “raped" this summer is pure rhet- 
oric, since the control board arguably 
had the power to run municipal agencies 
since the day it was created in 1995. 

Even Lawrence Guyot, a veteran 
civil-rights activist and staunch Bariy 
supporter, concedes that. But Mr. Guyot 
maintains that Mr. Faircloth's "crude” 
insertion of language stripping Mr. 
Barry’s power into President Clinton's 
district-rescue package has indeed 
triggered a grass-roots movement of 
home-rule supporters "that cuts across 
race lines, cuts across class lines.” 

Mr. Barry, he added, stands to benefit 
from that outrage more than anybody 
else. “This move by Congress virtually 
guarantees Marion Barry's re-elec- 
tion,” Mr. Guyot said. *T found it hard 
to find anyone who could beat him be- 
fore this, but I think that’s a settled 
question now.” 

Few other political observers, at this 
point at least, have ventured that far out 
onto the limb. But Mr. Guyot and the 
mayor were hardly alone at the ram- 
parts. 


The Reverend Jesse Jackson came to 
Washington, met with dozens of min- 
isters and community activists and an- 
nounced a series of demonstrations, in- 
cluding one at Mr. Faircloth’s hog farm 
in North Carolina and another involving 
Louis Farrakhan in Washington. 

“This is not a choice for or against 
Marion Bany,” Mr. Jackson said at a 
news conference. “This is not a ref- 
erendum on the mayor. This is about the 
right to choose one’s leadership.” 

Mr. Bany accused Mr. Brimmer of 
essentially lying to him about how the 
control board intended to assert its new 
authority. Then the mayor went much 
further, saying: “What happened in oth- 
er societies — and I don’t like using 
analogies, because people don ’ t like that 
— but there are other situations where 
totalitarian governments, or govern- 
ments that wanted to keep control with 
their foot on the heads of the people, 
have appointed local people to do their 
dirty work.” 

Mr. Faircloth's spokesman. Peter 
Hans, dismissed the criticism by Mr. 
Bany and Mr. Jackson as overheated 
and inaccurate. “It's too bad that Jesse 
Jackson and Marion Barry don't put as 
much effort into cleaning up a terribly 
mismanaged city government as (hey do 
to planning protests." Mr. Hans said. 
“Is this about voting rights or is this 
about Marion Bany? No, it’s about 
neither. It's about the management of 
the nation's capital- ' ' 


Mexico Awash in Drug-Related Crime 

^Narco-Dollars’ Flood In, Bringing a Surge in Murders and Corruption 


y 


■By John Ward Anderson 

.* ■ Washington Post Service 

; MEXICO CITY — A 
gangland-style multiple slay- 
ing in a restaurant; an econ- 
omy propped up with * ‘narco- 
dollais , assassinations of 
.drug dealers, journalists and 
U.S. Drug Enforcement Ad- 
ministration informants: drug 
■scandals at the highest levels 
pf the military, judges inex- 
plicably dropping charges 
against major kingpins. 

It may sound like Colom- 
bia circa 1990, but these are 
headlines from the past 
month in Mexico, and to 
many they suggest a country 
reeling under the weight of 
■drug warfare and corruption. 

_ Analysts say the problems 
will only get worse as Mexico 
tries to shake itself from the 
that 

letrated its in- 
stitutions and are unlikely to 
let go without a fight. 

“I don’t recall the type of 
gangland. Mafia-style 

<• killings back and forth that 
v we’ve seen since the begin- 
ning of the year, and it’s got- 
ten worse in the last couple of 
weeks,” said Jorge 
Castaneda, a Mexico City 
politic*! analyst and author. 
“It’s worse than ever, and the 
jlem is there’s more tn- 
r widtin the cartels and 
'the government, and more 
Iftflks and more people want- 
ing to talk than ever before. 

hluch of the carnage can be 
blamed on power struggles 
amo ng drug traffickers trying 
to gain die upper hand, exact 
revenge and steal money, 
• dr ags and territory since the 
" bizarre death five weeks ago 

of Mexico’s No. l drag king- 

bin, Amado CamUo Fuentes, 

t who beaded the Juarez cartel 

Bat the events also are pan 

of a more far-reaching, long- 
term battle by Mexico to 
check the growing power oi 
drag cartels. 

“Mexico is coming to a 
crossroad but they arenot 
there yet.” said Peter Lupsha, 

expert on Mexican drag ^ 
Sting. “In the long ran, de- 
mocracy hopefofiy wH «*; 
quer, they will clean ouj 
conupnon, new pejPj*: -« 
v come^power, and this wdl 

* becomeapoUcematterandnot 
a national security man^. 

In itxtent weeks there has 

been a cascade of drug-re 
luted news: , 

•In a scene straight out of 


“The Godfather,” two men 
in a Jaguar pulled up in front 
of a steakhouse in the border 
city of Ciudad Juarez on Aug. 
3, walked into the restaurant’s 
bathroom and emerged a few 
moments later with AK-47 
assault rifles blazing, killing 
four men and two women in a 
bail of 150 bullets. 

Police said the motive for 
the slaying was unclear, but 
local reporters said it ap- 
peared that at least one of the 
victims was a drug trafficker 
and an informant for the Drug 
Enforcement Administration, 
while at least three and pos- 
sibly five were innocent 
bystanders. The U.S. drug 
agency refused to comment. 

• New charges of corrup- 
tion at the top of Mexico's 
armed forces have been 
lodged almost daily. Two 
weeks ago. the respected 
weekly magazine Proceso 
published secret Defense De- 
partment documents saying 
dial at least six former high- 
ranking army officers had 
aided major drug kingpins. 
The next day, the Defense De- 
partment said that so far this 
year, it had identified 34 
former military officials sus- 


pected of working for drug 
cartels to military and civilian 
judicial authorities. 

The following day, a wom- 
an named in the Proceso ar- 
ticle, Irma U 2 en Ibarra 
Naveja, was shot and killed 
while driving her car in the 
city of Guadalajara by two 
men on a motorcycle. In the 
article, Ms. Lizett Ibarra was 
identified as a liaison who had 
set up meetings between 
army officials and narcotics 
traffickers. 

Mexico’s attorney general 
then released a letter sup- 
posedly written by Ms. Lizett 
Ibarra saying that if she were 
ever assassinated, it would be 
because of her contacts with 
two top lieutenants of the 
Juarez cartel and with former 
General Jesus Gutierrez Re- 
bo] lo. who was fired this year 
as head of Mexico’s anti -drug 
agency for being on the 
Juarez cartel’s payroll. 

Mr. Gutierrez Rebollo’s 
daughter has denied be knew 
Ms. Lizett Ibarra. 

The ex-general’s lawyer 
then said that Mr. Gutierrez 
Rebollo would soon release 
the names of six state gov- 
ernors, about a dozen active 


generals and more than 20 
Mexican cabinet ministers, 
diplomats and political party 
chiefs who had links to major 
drag traffickers. 

• A newspaper reported last 
week that two generals had 
been implicated, along with a 
federal prosecutor and eight 
soldiers and police officers, in 
the theft in May of a half-ton of 
cocaine, valued at about $J0 
million, from police custody 
in San Luis Rio Colorado on 
the Arizona border. A news- 
paper editor who had aggress- 
ively investigated that and oth- 
er drag stories was gunned 
down three weeks ago. 

• The journal Latin Trade 
reports in its September issue 
that U.S. and Mexican au- 
thorities estimate as much as 
$15 billion in drag money is 
laundered through Mexico's 
financial system each year, 
the equivalent of about 4.6 
parent of the country's gross 
domestic product. It has been 
estimated that the drag trade 
could be pumping $25 billion 
to $50 billion a year into the 
country’s economy, account- 
ing for between 8 percent and 
15 percent of Mexico's $322 
billion GDP. 



Mat Humphrey, The Vm«iiic 4 Pit?.*, 

THE GORES' DAY — Vice President AI Gore and his wife. Tipper, applauding a musical act at the Gore 
Family Barbecue in Nashville, Tennessee. Seated at the left are Mr. Gore’s parents, Pauline and AI Gore, Sr. 


Mrs. Clinton Exploits 
A Social Laboratory 

WASHINGTON — Hillary Rod- 
ham Clinton is actively pursuing her 
second-term strategy, increasing ap- 
pearances in Washington to spotlight 
her national agenda. 

Just blocks from the White House 
are some of the nation's poorest cit- 
izens. most dangerous streets and 
weakest schools, a laboratory of social 
ills for a public figure promoting her 
views on education, crime, economics 
and the responsibility she says people 
have to improve the lives of others. 

In recent months. Mrs. Clinton: 

• Visited an elementary school to 
urge charitable foundations and cor- 
porations to help pay for safe-haven 
learning centers that keep kids off the 
streets after class. 

• Told high school students and 
their teachers that her visits to District 
of Columbia schools revealed “the 
best and worst” in American educa- 
tion. “What bothers me and frustrates 
me is thar when we know what 
works.” then “why don’t we do that in 
every single school in the city?” 

• Told business leaders that despite 
ail the negative attention, “this is a 


unique place to live, work and do busi- 
ness.” She urged them to support pro- 
grams that give small loans to fledgling 
entrepreneurs. 

• Urged lawyers to “adopt" local 
schools, improving the reputation of 
their profession and the quality of edu- 
cation. 

Washington “is full of lawyers,” 
she said, drawing laughs from fellow 
attorneys. 

• Visited a local hospital to promote 
a new program that- gets pediatricians 
to prescribe books to youngsters along 
with medicine. 

Mrs. Clinton hopes her appearances 
will help improve conditions in Wash- 
ington and highlight her national 
agenda- ( AP ) 


boss dressed him down and hastily 
mailed back the booty. 

“He apologized. He said he was 
embarrassed that his employee had the 
nerve to remove the silverware," re- 
calls Randy Baum, a White House 
dining room supervisor for Presidents 
Reagan and Bush. 

Guests are welcome to souvenir 
table menus, paper cocktail napkins 
ted with the Great Seal of the 
nited States, place cards, after-dinner 
entertainment programs — even pho- 
tographs of themselves hobnobbing 
with the president. 

An estimated 2,600 guests attended 
formal dinners at the White House last 
year alone, however, and in such a 
crowd a few just can't resist the urge to 
swipe a spoon, snatch a drapeiy tassel, 
pocket a tiny plate. (AP) 


pnn 

Unit 


Guests Can't Resist 
White House Cutlery. Quote / Unquote 


WASHINGTON — They were 
tucked in tissues inside an envelope 
scanned with the rest of the president’s 
mail: Two silver forks, a knife and a 
teaspoon, all engraved “The White 
House." 

A corporate guest pocketed the sil- 
verware at a power lunch in the West 
Wing of the White House and foolishly 
bragged about it back at the office. His 


Ralph Hutchison, of the Oak Ridge 
Environmental Peace Alliance, object- 
ing to Energy Department plans to use 
space in a civilian nuclearpowerplant 
to make tritium for nuclear weapons: 
"Civilian nuclear programs and mil- 
itary programs are separate and dis- 
tinct, and we have told the North 
Koreans. Iran and everybody that.” 

(NYTI 


Away From Politics 

•A speeding van full of cheerleaders 
from the State University of West 
Georgia flipped over on an expressway 
after a blowout, killing the coach and a 
cheerleader and injuring 1 1 . f AP) 


•Investigators studying a plane 
crash that killed at least five people in 
Miami are focusing on whether the 
Fine Air cargo of 45 tons of cloih was 
loaded properly. (AP) 

•A discount store in Nashville was 
looted and burned after a while police 


officer shot and killed a black murder 
suspect there during a straggle. (AP) 

•A fire burned out of control at a 
YMCA in Perth Amboy, New Jersey, 
where homeless men were staying, and 
seven were unaccounted for, the may- 
or’s office reported. (AP) 


Train Escaped Catastrophe in Arizona Derailment 


By Don Phillips 

Washington Post Sen te* 

KINGMAN, Arizona — 
The Southwest Chiefs pas- 
sengers and crew came closer 
to disaster than they realized 
as they walked away, mostly 
uninjured, from the 90-mile- 
an-hour derailment, investi- 
gaforssaid. r . x . 

The chairman of the Na- 
tional Transportation Safety 
Board, Jim Hall, expressed 
relief that there were so few 


But the train could have 
plunged into the ditch, or 
“wash,” if the bridge had not 
held up as well as it did, and a 
fuel tank that was pierced by a 
rail might have erupted in 
flames u it had not been the 
new “crash proof’ type re- 
quired on all passenger 
trains. 

The bridge deck, although 
sagging and undermined by 
flooding, did not collapse 
totally until after the train 
came grinding to a halt with 
the wheels of a sleeping car 


serious injuries - 16 people the wtieeis oi a steeping ^ 

S 3 S m"sa°p f 

cJSiv at a col- bridge and rammed against 
bridge a* kff ""EE" 

■ob 
board 


kid been weakened by a w all 
of water from an unusually 
intense desert thunderstorm. 

Mr. Hall said investigators 
had already ruled out as a 
cause any mechanical prob- 
lems with the train or the rail- 
road signal system. Other than 
ro sav that the weather od- 


the far side, bouncing u 
they hit, according to 
Campbell, a safety 
bridge specialist 

This apparently led to the 
“roller coaster” e ® iect . 
many passengers described. 
As each car rammed ac ross, 
the bridge was hammered 
down more, but it did not col- 


w „ - down more, out u <uo 

lapse to Ihe point Ihal it could 


not guide the cars across. 

This is remarkable because 
investigators believe the 
bridge supports were largely 
washed away. Mr. Hall said 
the “mud sills” on which the 
bridge rested were found a 
quarter mile (400 meters) 
downstream. “My assess- 
ment was that most of the 
bridge was down before the 
train came through, ” Mr. 
Campbell said. 

Mr. Hall said both engi- 
neers in the cab said they saw 
a * t hump” in the bridge when 
they were 100 to 20b yards 
away, and both grabbed the 
emergency brakes. But with 
the train traveling that fast. 
Mr. Hall said, they were un- 
certain whether the crew hit 
the brakes or whether the 
brakes activated automatic- 
ally when the first locomotive 
separated frorp the rest of the 
train. ‘ 1 

Mr. Hall quoted them as 
saying, 4 ’ll felt like the engine 
was Launched” when they hit 
the bridge. They immediately 
radioed for belp. 

Investigators also revealed 


that a broken rail rammed 
through the fuel tanks on the 
fourth locomotive, the one 
nearest to the train, and con- 
tinued through a baggage car. 
However, Mr. Hall said dam- 
age to the crash-proof tanks 
on the new General Electric 
locomotive produced only 
minor leaks. 


Thar was in contrast to fee 
collision of a commuter train 
with Amtrak's Capitol Lim- 
ited at Silver Spring, Maiy- 
land, in December 1995, 
when the fuel spray from a 
ruptured older tank inciner- 
ated the lead car of the com- 
muter train, killing 1 1 
people. 


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THE WORLD'S DAILY NEWSPAPER 






INTERNATIONAL 


U.S. Sets Up Arafat Meeting With Israeli Intelligence Chiefs 


briefly 


The Associated Press 

JERUSALEM — President Bill Clin- 
ton’s peace envoy said Moiiday that he 
hoped a meeting between Yasser Arafat 
and Israeli intelligence chiefs would be a 
first step toward reopening talks on 
broader political issues. 

The U.S. envoy. Dennis Ross, suc- 
ceeded in bringing together the Pales- 
tinian leader and Israeli security officials 
in the West Bank city of Ramallah. 

Mr. Ross met earlier with Mr. Arafat 
and Prime Minister Benjamin Netan- 
yahu. 

He said his purpose was to re-es- 
tablish security cooperation, which is 
also Israel’s primary concern following 
a double suicide bombing on July 30 in a 
Jerusalem market 

‘'There has to be a security under- 
pinning. but the political issues also have 
to be addressed. ’ ' Mr. Ross said Monday 


"What we are doing at this point is 
trying to Jay that basis.*' 

The bombing death toll rose to 16 
when Eli Adourian, 49, of Kfar Ad- 
umim. died of his wounds. He had been 
in intensive care since the attack, hos- 
pital officials said. 

Thousands of Palestinians, however, 
including supporters of the mili ta n t 
groups Hamas and Islamic Jihad, rallied 
in Ramallah and Gaza City against Is- 
raeli policies. 

"Your crimes will lead to disaster!” 
said a banner addressed to Mr. Net- 
anyahu in Ramallah. where protesters 
burned Israeli flags. 

"America is an ally of die enemy!” 
one protester shouted through a loud- 


After the Ramallah demonstration, 
more than 100 young men burned tires 
and hurled stones at Israeli soldiers man . 


ning an army checkpoint outside the 
entrance to the city. 

The Israeli troops defused the situ- 
ation by allowing Palestinian cars to go 
through the checkpoint toward the dem- 
onstrators, creating a huge traffic jam. 

Pales tinian police then chased dem- 
onstrators back into the Palestinian-con- 
trolled part of the city. 

Marwan Barghonti, head of Mr. Ara- 
fat's Fatah faction of the Palestine Lib- 
eration Organization in the West Bank, 
said Fatah opposed any security cooper- 
ation while Israel continues a closure of 
the West Bank and Gaza Strip, imposed 
after the bombings. 

“As long as this situation continues 
there will be no excuse to arrest any 
Pales tinian .” Mr. Barghouti said. "Any 
security cooperation must go parallel 
with polidcal cooperation." 

In Gaza, marchers carried photo- 


graphs of some of the thousands of Pal- 
estinians in Israeli jails. ‘ 'The explosion 
is unavoidable," said the Palestinian 
minister. Imad Faiouji, a former Hamas 
leader. 

Mr. Netanyahu blames Mr. Arafat for 
not doing enough to eradicate the in- 
frastructure of militant factions includ- 
ing Hamas, the Islamic group that Israel 
blames for the market bombings. 

Mr. Ross’s emphasis on security ini- 
tially prompted protests from the Pal- 
estinians, who feared their issues would 
be ignored. But Mr. Ross appeared to 
mollify Mr. Arafat by telling him that a 
far-reaching political initiative by Sec- 
retary of State Madeleine Albright 
would follow restored security cooper- 
ation. 

Israe li -Palestinian relations deterior- 
ated in March after Israel began building 
a large Jewish neighborhood in a part of 


Jerusalem that die Palestinians hope to 
make the capital of a future state. 

Mr. Ross an ended Mr. Arafat's talks 
with Ami Ayalon, the head of Israel’s 
Shin Bet security service, and other se- 
curity officials. 

The reaction to the talks was skeptical 
— on both sides. 

Meetings alone, Mr. Netanyahu said in 
a television interview, are meaning less. 

"What we need is action," be said, 
adding that he wanted to see Palestinian 
leaders act against the terrorists. 

"We’d like to see them stop the in- 
citement for violence, we'd like to see 
them collect the bombs, we'd like to see 
them do all these things — that’s what 
these meetings are supposed to report 
on,” Mr. Netanyahu sain. 

Ha nan Ashrawi, a minister in Mr. 
Arafat's cabinet, called Mr. Ross's focus 
on security “die wrong approach.” 


South Africa Truth Panel 
Opens a Tough Hearing 

Killers of Communist Leader Seek Amnesty 


Reuters 

PRETORIA — South Africa's truth 
commission opened one of its toughest 
hearings on Monday to decide whether 
to free the men who murdered the com- 
munist leader Chris Hani in 1993, nearly 
wrecking the transition from apartheid. 

A Polish immigrant, Janusz Walus, 
the gunman, and a rightist politician, 
Clive Derby-Lewis, die mastermind, 
have applied for amnesty and will speak 
publicly about their deed for the first 
time at the hearing. 

The Truth and Reconciliation Com- 
mission, set up by President Nelson 
Mandela to expose apartheid-era crimes 
and offer forgiveness in return for con- 
fession, has the power to grant amnesty 
if the two can prove political motives. 

But Mr. Hani's family and the South 
African Communist Party fiercely op- 
pose amnesty for the unlikely partners in 
crime, whose original death sentences 


were commuted to life in prison. 

“No amnesty," "Derby -Lewis must 
serve life” and "You are murderers" 
read placards held by their supporters 
who gathered outside the City Hall for 
the hearing. 

Mr. Ham’s death on Easter Saturday 
in 1993 hit South Africa like an earth- 
quake during one of the hardest periods 
of the long negotiations that ended in 
free elections a year later. A former 
leader in exile of the African National 
Congress’s armed wing,, he was an im- 
mensely popular figure eclipsed only by 
Mr. Mandela, whom many believe be 
could have succeeded as president 

Mr. Walus, a fierce anti-Communist 
who left Poland for South Africa in 
1981, shot Mr. Hani four times outside 
his home in a middle-class suburb near 
Johannesburg. 

A white neighbor saw Mr. Walus, 
memorized the number of his aoto- 



Ju4i qa llmlm 

Janusz Walus, left, and Clive Derby-Lewzs appearing before die South African truth commission on Monday. 


mobile and alerted police, who arrested 
him 10 minutes later. 

Hie evidence led to Mr. Derby-Lewis, 
a former member of the all-white Par- 
liament for the far-right Conservative 
Party. His wife, Gaye, also stood trial but 
was acquitted, and the court found in- 
sufficient evidence to back up claims of 


a far-right conspiracy to kill South 
Africa’s black leaders. 

George Bizos, a defense lawyer in the 
1964 trial that saw Mr. Mandela sen- 
tenced to life imprisonment, will oppose 
amnesty. Newspapers said Mr. Bizos 
would produce hitherto unheard state- 
ments by the two applicants to try to 


show they had not told the whole truth — 
a condition for amnesty. 

The family also say the two men have 
failed to explain the role of Gaye Derby- 
Lewis and lied when they said they 
killed Mr. Hani — by then committed to 
a negotiated peace — because he was 
seen as a legitimate military target. 


Peter Braestrup, Vietnam War Correspondent, Is Dead at 68 


Washington Post Service 

WASHINGTON — Peter Braestrup, 
68, who saw combat in Korea as a Mar- 
ine. covered the Vietnam War as a cor- 
respondent for The Washington Post and 
founded one of the nation’s premier in- 
tellectual publications, the Wilson 
Quarterly, died Sunday in Maine; ap- 
parently of a heart attack. 

Mr. Braestrup was widely known in 
scholarly and journalistic circles as the 
author of "Big Story," a massive study 
of how the news media covered the 1968 
Tet Offensive, a watershed event of the 
Vietnam War. 

Mr. Braestrup wrote for Time 


magazine from 1953 until 1957, when he 
joined the old New York Herald- 
Tribune for a three-year stint that in- 
cluded spending a month with guerrillas 
in Algeria. 

In I960, he joined The New York 
Times, heading the newspaper’s bureau 
in Algiers from 1962 to 1965. He went 
on to Paris, then became bureau chief in 
Bangkok, covering events throughout 
Southeast Asia. 

He joined The Washington Post in 
1968 a ad beaded its bureau in Saigon 
during the peak years of the Vietnam 
War. He also worked at die newspaper’s 
Washington office, covering events in 


the city. Mr. Braestrup went to the Woo- 
drow Wilson International Center for 
Scholars here on a fellowship in 1973 
and while at the center conceived the 
idea for the Wilson Quarterly. 

After helping to bring the magazine 
into being, he served as its editor until 
joining the Libraty of Congress as a 
senior editor and director of publications 
in 1989. 

Walter I. Farmer, 86, Protested 
Treating German Art as Booty 

NEW YORK (NYT) — Walter I. 
Farmer. 86, who was awarded a German 
medal last year for having protested, as a 


U.S. Army captain in Germany in the 
months after World War D. his super- 
iors' decision to ship artworks to the 
United States, died of cancer Saturday in 
Cincinnati. 

Mr. Fanner, an architect and interior 
designer, was one of the few American 
survivors of an American government 
panel, the Commission for the Preser- 
vation of Works of Ait of International 
Importance in War-Tom Areas. 

William Lincer, 90, die principal vi- 
olist of the New York Philharmonic 
from 1943 to 1972, died July 3 1 in New 
York. 


FRIENDS: Clinton and Blair Put Special Back Into Relationship CLINTON: 

Extending Veto Power 

Continued from Page 1 


Continued from Page 1 


visit "It purely is a diary problem," he 
said. 

Marsha Berry, a spokeswoman for 
Hillary Rodham Clinton, agreed: "It’s a 
scheduling problem and nothing else.” 

The ease with which the two leaders 
get on contrasts with what many ob- 
served as chilly cordiality between Mr. 
Clinton and former Prime Minister John 
Major. Some put this down to the Con- 
servative Parry’s having parachuted help 
into the Republicans' 1992 presidential 
campaign, especially after the allegation 
that Mr. Major’s government investi- 
gated whether Mr. Clinton tried to avoid 
the draft by becoming a British citizen in 
J968 when he was a Rhodes scholar at 
Oxford. The two eventually developed a 
working relationship, but it could nor 
have been described as warm. 

The bonding between Mr. Clinton and 
Mr. Blair marks a success for what has 
been termed the "Blair mafia,” movers 
and shakers who have worked on Mr. 
Blair's image in the United States. 

"We think Blair's image is very im- 
portant here,” said Chris Jones, sec- 
retary of the Labour Party branch for 
British subjects living in the United 
States. "Clearly, the Americans regard 
him as a leading European politician. 
For many, Britain is America’s window 
on Europe. If you can cultivate the spe- 
cial relationship and bring Tony Blair 
into the spotlight. 1 think we are doing 
our job.” 

Washington, for Mr. Blair, is crucial. 
Britain invests more in the United States 
than in any other country; conversely, 
Americans are the biggest foreign in- 
vestors in Britain. Accordingly, the La- 
bour leader has had many supporters 
working in the capital and in New York 
to promote him as a powerful politician, 
one who is able to ensure economic 
stability and growth and reassure Amer- 
ican investors that Britain is good busi- 
ness and is in good hands. 

Mr. Blair has worked to overcome the 
suspicion with which Labour leaders 
have been regarded here. After a 
struggle, Mr. Blair abolished the historic 
Labour tract that committed the party to 
the nationalization of British industry 
and began to talk of "New Labour” as 
the party of business. 

The importance of Washington was 
emphasized by the recent announcement 
by the British government that the new 
British ambassador would be Christoph- 
er Meyer, Mr. Major’s former press sec- 
retary and currently British envoy in 
Bonn. The appointment was seen in 
Bonn as a dear indication that Britain 
gives political priority to the United 
States over Germany. Mr. Meyer, said to 


be “highly thought of” by Mr. Blair, was 
the prime minister's personal choice. 

Until 1992, there was a degree of 
antipathy toward the United States with- 
in die Labour Party, said Keith Tarr- 
Whelan, chairman of the U.S. branch of 
the party. But thar began to change with 
the election of Mr. Clinton in 1992. 

The pro-Blair public relations ma- 
chine has swung swiftly into operation, 
and Mr. Blair and his wife, Cherie, a 
lawyer, have been presented to the 
American public as a good-looking 
couple who have no sordid skeletons in 
their closet At a recent party in New 
York held by Harold Evans, the British 
president of the publisher Random 
House, and his wife, Una Brown, editor 
of the New Yorker, the Blairs mingled 
with celebrities such as Martin Scorsese, 
Henry Kissinger, Lauren Bacall and 
Barbara Walters. The British people 
who attended were dubbed "cocktail 
socialists" by the British press. 

Some in the Blair mafia dismiss such 
parties as inconsequential events that 
mask the serious work being done on 
Labour's behalf. Since Mr. Clinton’s 
1992 campaign, the bond between 
Democratic advisers and Labour Party 
insiders has continued to solidify. Jonath- 
an Powell. Mr. Blair's chief of staff, was 
a catalyst for the changing relationship 
when he worked here at the British Em- 
bassy as first secretary during Mr. Clin- 
ton’s first presidential campaign. 

Mr. Powell established relationships 


with key Clinton aides, many of whom 
have tuned into the New Labour mes- 
sage. They include the journalist-tumed- 
White House-aide Sidney Blumenthal, 
the Democratic pollster Stanley Green- 
berg, the former White House official 
George Stephanopoulos and Paul 
Begala, a former Clinton adviser who is 
about to join the White House staff. 

Mr. Greenberg said: "I think there is 
something to the special relationship, 
but it has developed further now. Blair 
and Clinton were brought together be- 
cause they are modernizing old indus- 
trial parties and they have a similarity 
just from the task they have taken on. 
They both went through a searing polit- 
ical experience, which creates an in- 
stinctive affinity.” 

Mr. Blumenthal said, "I was struck 
shortly after the election of BUI Clinton 
as president and after meeting Tony 
Blair, who was then virtually an un- 
known political figure, by the similarity 
in political perspective and saw that if 
there were to be a new special rela- 
tionship, it would have to be on the basis 
of this broadly shared viewpoint.” 

The American sympathizers were 
joined by British expatriates in their con- 
cern that the Labour Party was still seen 
by many Americans as being in the grip 
of striking British unions. To change this 
perception, Gordon Brown, now chan- 
cellor of the Exchequer, regularly 
traveled across the Atlantic to meet with 
t hink tanks and other policy wonks. 


by Harold Simmons of Dallas, a leading 
Republican contributor. A congression- 
al study estimated that this provision 
would have cost $84 million over five 
years because other companies not in- 
tended to profit would have been eligible 
for the tax break. 

• Allowed U.S.-based insurance 
companies, banks and investment firms 
to defer taxes from some overseas in- 
come. This provision, sponsored by Mr. 
Lott, would have cost an estimated $94 
million over five years. 

Court challenges to one or more of the 
vetoes are expected. Opponents of the 
line-item veto, including some prom- 
inent Democrats, maintain that it shifts 
power from Congress to the president in 
ways not intended by the framers of the 
U.S. Constitution. 

Mr. Clinton, however, said Monday 
that he thought the principle was well 
entrenched in law. Forty-three state gov- 
ernors have such veto powers, as he had 
when he was governor of Arkansas. Mr. 
Clinton said he saw no constitutional ar- 
gument against the veto power so long as 
the legislature had the power to override. 

Congress, under the veto law, can pass 
measures to reverse the vetoes by simple 
majority. But the president can veto 
those measures, requiring a two-thirds 
majority to override. 


DEAL: 

Winterthur Acquired 

Continued from Page 1 

particularly as the increasing importance 
of so-called derivative securities makes 
financial markets more complicated 

Richard Fisher, chairman of Morgan 
Stanley’s executive committee, said in 
June that the financial industry would 
see some “staggeringly unexpected" 
mergers in coining years. 

"The high end of the insurance busi- 
nesses and investment banking are both 
doing similar things: pricing long-term 
risk,” he said. 

Michael Pearson, publisher of 
Strategy Report, a review of global cor- 
porate activity, said: * ‘The main logic for 
these sort of transactions is selling the 
insurance products through the branch 
networks to the customers at the banks. 

"Most of the big banks would like to 
invest more in retail activities, be that 
banking or insurance. The question is 
finding the right target at the right 
price.” 

Winterthur, Switzerland's second- 
largest insurance company, would re- 
main autonomous ana keep its own 
name. Winterthur shareholders would 
receive 7.3 Credit Suisse shares for 
every Winterthur share. 

The offer, based on Credit Suisse’s 
closing price Friday of 208.50, amounts 
to 1 ,522 Swiss francs for each Winterthur 
share — a premium of 7 francs a share 
over Winterthur’s Friday close. 

On Monday. Winterthur’s shares fell 
1 8 francs to close at 1 ,497. Credit Suisse 
shares fell 3.50 to 205. 

Analysts generally applauded the deal 
and said it should gain shareholder ap- 
proval . "Strategically, this makes a lot 
of sense.” said Daniel Hunziker, who 
manages 1 .9 billion francs in assets at 
Union Bank of Switzerland. "The ques- 
tion is how much Credit Suisse will gain 
from the acquisition and how quickly it 
achieves that.” 

Credit Suisse said it planned to cut a 
maximum of 500 jobs at the enlarged 
company after the acquisition. 

Credit Suisse also announced that its 
first-half profit rose 70 percent, to 1.4 
billion francs, largely because of buoyant 
financial markets, domestic restructuring 
and a weaker Swiss franc. 

(AP. Reuters. Bloomberg. AFP) 


Verdict Is Expected 
In Murder Trial 

DUBAI — A verdict in the trial of 
two British nurses accused of killing 
an Australian colleague in Saudi 
Arabia is expected in a week, sources 
dose to the case said Monday. 

If Deborah Parry and Lucille 
McLauchlan are found guil ty of a ny 
charge, the case would go through 


an elaborate appeals system in 
kingdom, which applies strict Is- J 
lamic laws, including beheadingby ^ 
the sword for murderers, drug 
smugglers and rapists. 

The women say they are innocent 
and they have withdrawn confes- 
sions that they said they were forced 
to sign. (Reuters) 

Iraq Aide Asks E U 
To Help on Trade 

MADRID — Tariq Aziz, deputy 
minister of Iraq, urged the 
can Union on Monday to put 
5 sure on the United Nations to 
trade sanctions imposed after 
Iraq’s invasion of Kuwait. 

"Europe must help us lift the in- 
ternational embargo." he said to the 
Spanish newspaper El Pais. "We 
have always maintained excellent 
relations with European countries 
and we want to resume them.” 

Mr. Aziz criticized the U.S. and 
British delegations for what he de- 
scribed as interference and obstruc- 
tion of efforts to lift sanctions. "The 
problem is that two nations, tbeU.S. 
and UiC, benefit from the block- 
ade," he said. "Lifting it would 
damage them." ( Reuters ) 

. Yemen Near Deal 
With Saudi Arabia 

JIDDA — Yemen and Saadi Ara- 
bia are nearing agreement on de- 
marcating their border, a source of 
dispute for more than 60 years, tire 
two countries said Monday. 

“We hope to reach a positive 
solution soon," said the Yemeni 
interior minister, Hussein Arab, at 
the end of a three-day visit, during 
which he meet his Saudi counterpart 
and the defense minister. (AFP) 

Mexicans Seize 
Drugs on Ship 

MEXICO CITY — The Mexican 
authorities seized more than a ton of 
cocaine from a German ship and 
detained 14 crewmen, including 
seven Germans, for questioning, the 
government said Monday. 

Theattorney general's office said' 
police and military personnel raided 
the container ship near the west 
coast port of Manzanillo on Sat- 
urday and found drugs in boxes of 
books. It said the haul of 1.14 metric 
tons of cocaine was one of the 


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biggest this year. 


( Reuters ) 


Tourist Boat in Parish 
Hits Bridge; 27 Hurt 

PARIS — Twenty-seven people were ? 
injured Monday, Me of them seriously,^ 
when a tourist boat on the Seine hit s*# 
bridge in central Paris, officials said. ** 7 

The vessel. "Le Parisis,” rammed 
pillar of the Pont Royal, opposite the 1 , 
Louvre, as it tried to turn round. ; 

The boat, which has a capacity of 553 . 
passengers, was able to return to its base | 
at the Pont Neuf. 

“Le Parisis" is the projperty of the ', 
Vedettes du Pont-Neuf tourist boat com- ; 
pany. which said the accident was ■ 
caused by a failure of the electronic I 
steering. 

The boat struck an arch of the bridge ■ 
before tire captain had time to correct the ; 
move, a spokesman for the boat com- ■ 
pany said. Then it went back on course ■ 
and made its way back to its dock near ; 
the Pont Neuf, not far from Notre ■ 
Dame. i — 

No one fell into the water, and most of ; W 
the injuries were light. It was a rare ; 
accident for the popular sightseeing- 
boats — known as bateaux mooches — ; 
that ply the Seine day and night. 

“I was facing the other way.” said . 
Audrey Haughton of Oxfordshire, Eng- ; 
land. "And then, nothing, black. I just . 
felt knocked out 1 hit my head on the ; 
railing." 

Mrs. Haughton ’s husband was earned 
out by paramedics, apparently the one : 
person seriously injured. (AFP.AP) 




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ATHENS: Subway Project Unnerves Archaeologists 


Continued from Page 1 

"Everyone knows Athens needs a metro," said 
Jutta Stroszeck. director of the German Archae- 
ological Institute in Athens, which has been re- 
sponsible for excavations at the Kerameikos 
cemetery since 1913. Miss Stroszeck noted that 
most of the most famous carved reliefs in the 
Kerameikos cemetery — including those in the 
Street of Tombs — had already been moved to 
museums, and substituted with plaster cast copies. 

But the removal of some or the carved reliefs 
does not diminish the archaeologists* concern for 
the integrity of the site itself — the tombs, the walls, 
the stones, everything that has made the cemetery 
an important clue in the discovery of Athens’ past. 

The original subway route beneath (he cemetery 
would have run under the Sacred Gate and the walls 
of the ancient city, beneath the bed of the tiny 
Eridanos River. That plan raised such a storm of 
opposition that Attiko Metro last year agreed on a 
second route that cuts across only one comer of the 
ancient cemetery site. But that comer happens to be 
directly beneath the Street of Tombs, an area lined 
by tomb-terraces topped with important pieces of 
classical funerary art. 


No matter how much Attiko Metro planners 
insist that the new route will cause no damage to the 
monuments above ground, archaeologists remain 
unconvinced, and opposed. 

“The vibrations could crack and damage an- 
tiquities, damage that you can not repair,” Miss 
Stroszeck said. "Yon can not replace antiquities." 

As part of its concession to archaeologists, At- 
tiko Metro agreed to start with a rest tunnel, which 
will be about three meters wide and 1 5 meters deep, 
and will advance cautiously at the rate of about one 
meter a day. 

But opponents of the plan are certain that the test 
tunnel will soon become the real thing. 

For their part, Attiko Metro officials say that in 
this case, as in others, they have ben l over backward 
to accommodate the concerns and wishes of the 
Central Archaeological Council, a group of experts 
appointed by the government, which nas advised 
them at every step of the way. When the first 
Kerameikos route was proposed, the council ap- 
proved it, noted Theodore Weighs Jr., an American 
consultant from Bechtel Corp.. who is the Attiko 
Metro's chief executive. 

"We have a clear history of giving the ar- 
chaeologists what they want," Mr. Weigle said. 


MONTSERRAT: Engulfed in a Tide of Ash and Gas 

Continued from Page 1 


Friday morning’s eruption, preceded by an of- 
ficial warning siren a couple of hours earlier, 
brought residents into the street and ail other activity 
to a halt as they waited to see what would happen. 

Minutes afteV the initial explosion, the island was 
plunged into darkness, cars and trucks began slip- 
ping and sliding on roads coated with ash. and 
people headed home as if tlirough a winter blizzard, 
thejr faces covered with surgical or gas masks and 
their hair coaxed a ghostly white. 

“There's no way to get on with anything in these 
conditions," said Thomas Farrell, a fanner who has 
twice had to abandon residences in the exclusion 
zone south of here because of volcanic eruptions and 
who moved with his wife into a shelter last week. 
“Do we stay or do we go? We’d like to be done with 
it, one way or the other, bang or no bang.” 

Such concerns are not idle in a region where 


Thomas, in the Virgin Islands. But Jill Norton, an 
English volcanologist who is the deputy chief of die 
Montserrat Volcano Observatory, said there was no ■ 
way to provide the assurances thar people are 
seeking. While eruptions “have been gradually 
increasing in intensity.” she said, there is always 
the possibility that the volcano could shift its pat- 
tern and suddenly stop erupting, as it did Saturday. ' 
when a predicted “large event” failed to ma- < 
terialize. 

“It's anybody's guess, really.” she said. "The 
only thing we can say is that with many volcanoes, • 
there is a pattern of five or six years of eruption 
before they go dormant again." 

Before the volcano erupted on July 18, 1995.- 
tourism was the backbone of the economy here. Bui 
once Plymouth and its harbor were evacuated. • 
cruise ships stopped calling. 

And with the airport in the off-limits zone since . 


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!Srfi^ P d 10 90 “’ 11 ^ *** 3,1 esl,mated 30,°00 At the moment, the entire southern half of this : 

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■units, and residents who attempt to venture into the 1 
exclusion zone are subject to arrest. 


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INTERNATIONAL HERALD TRIBUNE. TUESDAY AUGUST 12, 


1997 


PAGE 5 





Crew Will Leave Mir 
To Check Out Damage 


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The Associated press 

MOSCOW — The five crewmen on 
the Russian spaceship Mir prepared 
Monday for a busyweek that will seethe 
departure of two Russians from the old 
crew. 

; The two newly arrived Russians and 
Michael Foale, an American staying on 
from the former crew, are scheduled to 
use another spacecraft to take a look at 
damage to the Mir’s hull caused by a 
collision six weeks ago. 
v The activity will set the stage for vital 
'repairs, planned for Aug. 20, aimed at 
restoring the Mir to alm ost full electrical 
power. 

; The new crew members, Anatoli So- 
lovyov and Pavel Vinogradov, famil- 
iarized themselves with the equipment 
cto the units of the 120-ton scientific 
outpost in space. 

The two departing Russians, Vasili 
Tsibliyev and Alexander Lazutkin, ac- 
ted as guides. 

! Mr. Tsibliyev and Mr. Lazutkin are to 
return to Earth aboard one of two Soyuz 
spacecraft now attached to the Mir 
space station. 

On Friday, the two new crewmen and 

Mr. Foale will board the other Soyuz. 


They then are to disconnect from Mir 
and fly around the space station to in- 
spect the outer surfaces, including the 
Spektr science module that was punc- 
tured in the collision with a cargo ship. 

During their inspection, which is to 
last less than an hour, the Mir will be 
unmanned. 

All three members of the crew must 
be in the Soyuz capsule during the mis- 
sion because no one is ever left on the 
11 -year-old Mir anymore without a 
means of escape. 

Meanwhile, Mr. Solovyov and Mr. 
Vinogradov were briefed Monday on 
the spaceship's temperature-control 
system, which leaked antifreeze last 
spring. 

The temperature system has been 
fixed, but both of Mir’s oxygen gen- 
erators have malfunctioned, forcing the 
crew to rely on oxygen canisters. 

The canisters can be dangerous — 
one ignited in February and caused a 
serious fire. 

One canister a day is need for each 
member of the crew, Mr. Lyndin said. 
There are enough canisters to last for 
more than two months, according to 
space officials. 



Cypriots Gather Warily 

On Healing 1974 Split 


MKBtf Altai CcWRcium 

FAREWELL TO ALBANIA 

manderof the UN Multinational ^th jj, e ^ troops. 

Monday before leaving by plane. He withdrew witn me f 


There are plans to restart one of the 
oxygen generators soon. If successful, 
this would remove the need for the 
canisters. 


U11M.CI9. 

Mr. Solovyov is to put on a spacesuit 
and squeeze into the damaged 


:<nn imv “*» **—*• — a — SpektT 

module in nine days and reconnect 
power cables linking solar panels to the 
station’s main power system. 


_ ■ [lien m# a* tv» 

ruined scientific experi- RaufDenktasI 

m ^Tbe cables were swiftly disconnected 
moments after the June collision so dial 
the crew could close the hatch to isolate 
Spektr, which was losing air rapidly 
Through the puncture. 


The Associated Press 

GLION. Switzerland — As a .new 

round of talks between Greek and pirit- 

ish Cypriot leaders opened Monday. tne 
United Nations mediator warned against 
hopes of rapid progress toward reuniting 

the island, divided since 1974. 

Diego Cordovez, the special adviser 
on Cyprus, said the meeting would fo- 
cus on legal and institutional texts rather 
than actual problems, such as achieving 
a withdrawal of Turkish troops from the 
occupied north of the island. 

“We’re not expecting them to solve 
the problem now," Mr. Cordovez said 
to reporters in front of a hotel in this 
mountain village. 

“In the past, they started from zero 
and ended with zero trying to get to 100. 
Now we are starting to move one point 
at a time to 20, to 30, to 40, to 90, and 
then we'll reach 100.” 

The meeting between the Greek Cyp- 
riot president, Glavkos Klerides, and 
RaufDenktash, leader of the breakaway 
Turkish Cypriot state, is to last about 

five days. _ 

The United Nations hopes to forge 
agreement eventually on some sort of 
federation linking the two communities. 
Cyprus was forcibly divided m July 


1974, when Turkish troops invaded to . 
protect the Turkish minority after a coup 
by Cypriots who supported a union with 
Greece. 

The Turkish Cypriot state is recog- 
nized only by Turkey. 

The talks in Glion, a village over- 
looking the lakeside town of Montreux, 
are a follow-up to the first direct meet- 
ing between the two leaders in three 
years last month in an upstate New York 

h °The rivals shook hands for the cam- 
eras ai a photo session in a dining 

But Greek Cypriot anger over their 
rivals’ recent moves to closer integra- 
tion with Turkey, and Turkish feara . 
abouttbe Cypriot government sdnveto 
join the European Union distracted par- 
icipants fromthe views of Lake Geneva 

ana the Alps. , 

Mr. Klerides, who brads a govern- 
ment that is effectively Greek CyPJ 1 ^ 
accused the Turkish side last week of 
trying to torpedo the meeting here by 
signing an integration agreement with 

Turkey. , . . 

The Ankara government toned 
Monday that the deal was a hurdle to 
progress. 


{ > Kohl Aide Rules Out 
Shake-Up for Cabinet 


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Reuters 

BONN — Chancellor 
Helmut Kohl tried Monday to 
quash speculation that he was 
about to dismiss some min- 
isters in his government to 
improve his re-election pros- 
pects. 

Reacting to a surprise call 
by Finance Minister Ttaeo 
Waigel to shuffle the cabinet, 
a government spokesman 
said Mr. Kohl had no plans to 
replace any of his ministers. 

"A reshuffle is not under 
consideration at the mo- 
% meat," said Herbert Schmu- 
“i elling, the spokesman. Mr. 
Kohl is on vacation in Aus- 
tria. 

The denial failed to quell 
the sudden revival of spec- 
ulation that the chancellor 
would shake up his 17-mem- 
ber cabinet before the elec- 
tjoos-that are due in Septem- 
ber I99S,.- : ... r • ...:» 

' Commentators said a 
shake-up was - overdue and 
could reverse the govern- 
ment's steep slide in opinion 

polls. „ „ 

With his plan for tax re- 
form f oiled by the opp^iuon 
Social Democrats and l the 
economy growing too slowly 
to bring down Germany s 
record unemptoyment, ana- 
lysts said Mr. Kohl had littie 
eBe he could do to raise his 

^‘Kob?has to act now," 
said a Munich newspaper, 
Soeddemsche Zeroing, 
should thank Waigel because 


without any fresh faces in the 
cabinet, even members of 
Kohl's Christian Democrats 
believe the next election will 
be extremely hard to win." 

The Christian Democrats 
would win just 37 percent of 
the vote today, down five 
points from the 1 994 election, 
according to an Emmd Insti- 
tute poll. „ . , 

The poll said the Social 

r . 1 J -JO 


1UC pvil 

Democrats would win 38 per- 
cent, up two points from 
1994. 

Mr. Waigel said in week- 
end interviews thru Mr. Korn 
should replace several min- 
isters before the 1998 cam- 
paign. 

Suggesting that some min- 
isters were just trying to hang 
on to their jobs until the : elec- 
tion, Mr. Waigel urged Mr. 
Kohl to drop any who were 
■tiring, well before the cam- 
paign started. 

**If there is a minister or 
two - wanting to leave but 
eager to hang on until tne 
election, one should tell him, 
‘Comrade, it would be nice, 
but we have to form our new 

team now,’ " he said. 

Ruediger Moniac, a colum- 
nist for the newspaper Die 
Welt, said Mr. Waigel would, 
under normal circumstances, 
have proffered the advice i mi i 
private conversation with the 
chancellor. "Or ™ “Sf 
other way around? wrote 
Mr. Moniac, questioning 
whether Mr. Kohl had instruc- 
ted Mr. Waigel to speak out 


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THE wnm.ivs DAILY NEWSPAPER 


l 



PAGE 6 


INTERNATIONAL HERALD TRIBUNE, TUESDAY, AUGUST 12, 1997 


ASIA/PACIFIC 


ASEAN Opter 

For Continued 
Mediation 
In Cambodia 


By Michael Richardson 

International Herald Tribune 

SINGAPORE — The Association of 
South East Asian Nations decided Mon- 
day to continue its efforts to mediate an 
end to Cambodia’s political conflict, 
saying h was ready to arrange tales' 
between the warring parties to help re- 
store stability. 

Foreign ministers of the group, at a 
special meeting in Singapore, sought to 
keep diplomatic pressure on Cambod- 
ia’s strongman and second prime min- 
ister. Hun Sen, by continuing an in- 
definite delay on the country’s 
membership of the group. 

The timing of Cambodia’s entry into 
Asean “depends on developments from 
now on" said Domingo Siazon Jr., the 
Philippines’ foreign minister, who 
chaired the meeting. 

Yet, in a move that appeared to in- 
dicate ASEAN accepted the recent re- 
structuring of Cambodia’s coalition 
government by Mr. Hun Sen and his 
supporters, die ministers failed to re- 
affirm a statement they made last month 
recognizing Prince Norodom Ranariddh 
as the country's first prime minister. 

Seeking to play down the shift, ^li . 
Alatas, the Indonesian foreign tnirus ter, 
said after die meeting that ASEAN re- 
garded Prince Ranariddh as "a very 
important factor in the continuing ef- 
forts to restore political stability in 
Cambodia." 

In die culmination of a long power 
struggle, the prince was ousted last 
month as first prime minister by Mr. 
Hun Sen's forces. 


1. Crafted in black, silk-grain 
leather with gilt-metal comers, 
this handsome address book will 
go with you anywhere. 



Cambodia Monarch Says 
He Is ‘Ready to Abdicate 5 

Letter Comes on Eve of Meeting Hun Sen 


5*0*1 Gao/Apaw Fnace Pimr 

PROTEST — Police in Islamabad. Pakistan, charging women who gathered Monday outside the Interior 
Ministry on behalf of ex-Prime Minister Benazir Bhutto and her political secretary, who faces fraud charges. 


Cambodia’s National Assembly 
voted last week to replace the prince by 
Mr. ling Huot, a dissident royalist whose 
appointment Mr. Hun Sen approved. 

In a joint statement, the ASEAN for- 
eign ministers said that the question of 
recognizing Mr. Ung Huot as Cam- 
bodia’s first prime minister did not arise 
"because ASEAN member states rec- 
ognize states not governments." 

ASEAN’s politically divers members 
.include Brunei. Burma. Indonesia. 
Laos, Malaysia, the Philippines, Singa- 
pore, Thailand and Vietnam. 

Analysts said that the group’s care- 
fully worded decision Monday reflected 
divisions over how to handle the Cam- 
bodian problem. 

They said it also reflected ASEAN’s 
concern that it must do nothing to in- 
flame a complex and potentially volatile 
situation by appearing to take sides or 


interfere in Cambodia's internal af- 
fairs. 

A warning, shortly before the group 
met in Singapore,- by - Cambodia's 
widely respected constitutional mon- 
arch. King Norodom Sihanouk, that he 
was ready to abdicate only served to 
emphasize the fragility of a constitu- 
tional and political structure put in place 
by the international community in the 
early 1990s after years of fighting in the 
country, followed by five years of 
Khmer Rouge tyranny and a Viet- 
namese invasion. 

Prince Ranariddh said Monday that 
the king's abdication move was an ex- 
pression of his disapproval of Mr. Hun 
Sen's seizure of power. 

Mr. Hun Sen, Mr. Ung Huot and 
Cambodia's acting head of state, Chea 
Sim, are due to meet King Sihanouk on 
Tuesday in Beijing, where he is un- 


dergoing medical treatment 

ASEAN's three Cambodian mediat- 
ors — the foreign ministers of the Phil- 
ippines, Indonesia and T hailan d — re- 
potted to other members of the group 
Monday on their recent talks with Mr. 
Hun Sen in Phnom Penh. 

In their joint statement, the ASEAN 
ministers “stressed the importance of 
holding free and fair elections .in Cam- 
bodia as scheduled in May 1998." 

They also “reaffirmed the necessity 
for all political parties in Cambodia to 
participate fully in the elections and 
reiterated ASEAN's readiness to help 
Cambodia with technical cooperation in 
facilitating these elections." 

Mr. Siazon said after the meeting that 
although elections were important, it 
was also important for the people of 
Cambodia to have peace, political sta- 
bility and a functioning administration. 


CcotpOrdby Che Staff Fm* Dapateha 

BEIJING — King Norodom Sihan- 
ouk warned Monday that he was ready 
to abdicate as he prepared to meet Hun 
Sen, the Cambodian strongman who is 
in Beijing seeking a royal blessing for 
his new administration. 

The monarch further tangled the Cam- 
bodian crisis in a letter released on the 
eve of a meeting with Hun Sen and his 
new co-prime minister. Ung Huot, who 
has been named in place of the king's 
son. Prince Norodom Ranariddh. 

Analysts said the 74-year-old king’s 
statement could be a ploy to gain in- 
fluence in the battle for control of the 
country. King Sihanouk issued a sep- 
arate statement saying be planned to 
return to Cambodia "soon.” 

But Hun Sen’s troops kept up pres- 
sure on the final royalist bastion in the 
north of Cambodia and a meeting of the 
foreign ministers of the Association of 
South East Asian Nations did not reach 
a decision on whether to recognize the 
new Phnom Penh leadership. 

The king, meanwhile, said he was 
“ready to abdicate" if asked by Hun 
Sen during Tuesday's audience. A letter 
of abdication "has already been writ- 
ten," he wrote in an open letter. 

"But, l am waiting for Hun Sen, our 
'strongman,' to let me know indirectly, 
by the appropriate words and gestures, 
that 1 can abdicate without risking being 
criticized by him or being accused of 
creating additional difficulties for the 
country and the people,' ’ he said. 

If King Sihanouk were to step down, 
his successor would be chosen by a 
crown council. Although Prince Ranar- 
iddh is his eldest son he would not 
automatically take the throne. 

But the king — who has frequently 


offered to abdicate in the past — also 
indicated he would soon return horned 
leaving unclear his motives for the', 
seemingly contradictory announce- 

A statement sent to Phnom Penh said d 
he and Queen Norodom Moneath would ' 
return home to attend a Buddhist prayer •» 

^iSngSihanouk. who is in Beijing for-? 
medical treatment, will meet the two- A 
prime ministers and the acting head of-, 
state, Chea Sim, at the head of a del-0 
egation seeking a symbolic blessing torn 
the new political order in Phnom Penh, 'i 

Hun Sen ousted the prince following 
bloody street battles in Phnom Penh inra 
early July. The king, the exiled op- i 
position and the United States have ah n 
criticized Prince Ranariddh’s removal- 
as undemocratic. King Sihanouk on Sat- 
urday denounced Ung Hurt as a “pup-* 
pet" of Hun Sen, but said he was power- 1 1 
less to change the political situation. ” 

Prince Ranariddh criticized Hun Sen- 1 
for what he characterized as pushing' • 
Cambodia into instability and toward f 
the brink of civil war. 

“We are stepping into an era of great; 
instability if not a civil war, so I un- 
derstand very well the feeling and‘-< 

■ stance of my father His Majesty die"' ak . 
King when he is talking about the pos-j " 
sibility of abdicating," he told reporters ~ 
in Bangkok. 

Cambodian and Thai sources said - 
Hun Sen’s armies were poised to attack' - 
the last town held by hoops loyal to " 
Prince Ranariddh, who was in Thailand 
seeking support. The prince said "polit- ^ 
ical and military resistance will con- 
tinue,'’ but, “I fear that governments^ 
and states are not very concerned about - 
Cambodia.' ’ (AFP. Reuters) ' ' 


3. Ring-binder pages are quick to 
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U.S. Envoy Meets Chinese Leaders 
In Beijing to Prepare for Summit 


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Reuter i 

BEUING — The U.S. national security 
adviser, Samuel Berger, began meetings 
Monday with Chinese officials that are ex- 
pected to focus on an approaching summit 
meeting of the presidents of the two largest 
Pacific Rim nations. 

Mr. Berger began the talks in Beijing with 
Liu Huaqiu, director of the Foreign Affairs 
Office under China's State Council, or cab- 
inet, at the Diaoyuiai State Guesthouse, a 
Foreign Ministry official said. . 

The talks were scheduled to continue 
throughout the day. 

Mr. Berger, who arrived Sunday, was ex- 
pected to meet President Jiang Zemin on 
Tuesday at the seaside resort of Beidaihe, 
where China’s leaders are gathered to decide 
policy and personnel changes for the next five 
years. 

U.S. officials declined to give details of Mr. 
Berger's talks. He is slated to leave China on 
Wednesday. 

Officials in Washington said the main goal 
of his trip was to discuss preparations for Mr. 
Jiang's state visit to the Lrnited Slates, which 


Matsu Weatherman 
Immolates Himself 

TAIPEI — A remorseful weather- 
man on the Taiwanese island of Matsu 
set fire to himself Monday, one day 
after 16 passengers and crew were 
killed when a plane crashed there in 
heavy rain, the police said. 

Ouyang Kangyen, the weather ob- 
server at Matsu's airport who was 
responsible for deciding whether the 
runway should remain open, was 
found setting fire to himself in his 
office. “He suffered bums to about 70 
percent of his body.” Dr. Chen Tien- 
mu of Taipei's Tri Service General 
Hospital said. (AFP) 

Police Again Seize 
Chinese Dissident 


is planned for late October. That meeting is ^ , 

expected to set the seal on strengthening- 
Chinese-U.S. ties, which have been battered _ 
in recent years by disputes ranging from trade 
and human rights to nuclear proliferation and_ 
Taiwan. 

Mr. Jiang’s meeting with President Bill . 
Clinton will be the first state visit to the United - 
States by a Chinese president since the 
Chinese Army crushed the student-led pro- _ 
democracy demonstrations in Beijing on June 
_3 and 4,1989.. . . ' 

On Sunday. Mr. Jiang stressed the im-^ 
portance of Chinese-U.S. ties, saying he’" 
wanted to see China and the United States 
seize on a recent improvement in their rocky 
relationship as a foundation for healthy long- 1 
term contacts. ^ 

Mr. Jiang, in a meeting with Senator Strom - 
Thurmond, Republican of South Carolina, 
said that the nations’ relations had seen a ’> 

* 'steady trend of improvement” this year. 1 » 

“One can say that the United States and ” 
China now face a good opportunity for im- - 
proving and developing relations," Mr. Jiang 
said. ■” 




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THE WORLD'S D.MIJ NEWbPU'ER 


BEUING — The police detained a |og| 
veteran dissident. Jin Cheng, for the j 3 p 
second time since he issued a call last -] 
week for public justice in the case of a £)j s 
disgraced Beijing leader, the activ- pay 
isi’s wife said. ans 

Mr. Jin remained in custody more x [ e 
than 10 hours after he was seized 

Monday, the former official's wife. 

Liu Xiuli. said by telephone. 

Mr. J in last week sent an open letter to the 
head of China's National People's Con- 




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Members of Chinese families who are su- 
ing Japan arriving at Tokyo District Court 

Japan Sued for Germ Warfare 

Reuters 

TOKYO — More than 100 Chinese war vic- 
tims and their families filed a lawsuit Monday 
demanding that the Japanese government apo- 
logize and pay compensation for germ warfare the 
Japanese Army conducted during World War IL 
The 108 plaintiffs filed suit at the Tokyo 
District Court demanding that the government 
pay 1.08 biUion yen {$9.3 million} in damages 
arising from plagues allegedly created by army 
scientists during the war. 


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in China in the First five months of the year, 
an 8.6 percent drop over the same period of 
1996. The number of accidents, at 5,737, 


for Chen Xitong.f<Hnier chief also was down 12.8 percent, the official 
of Beijtng s Communist Party, to be pun- china Daily reported Monday. ( AP ) 

ished for prompting a bloody crackdown on 

pro-democracy protests in 1989. ( Reuters) Vietnam and Thailand signed a kind- 
er* ■ n j j ■ j i ■ mark treaty on the delineation of territorial 
A rain Domoea in India waters, the Thai Embassy said Monday, die 


GUWAHAT1, India — Hundreds of pas- 
sengers escaped unscathed Monday after a 
bomb derailed a train in the northeastern 
state of Assam, the police said. 

The blast, in the Baipeta district. 150 
kilometers north of Guwahati. the state cap- 
ital. left a one-meter crater and destroyed a 
section of track. Seven railcars carrying 400 
passengers were derailed. 

The United Liberation From of Assam 
was suspected of being behind the attack, 
the police said. None of the several militant 
separatist organizations fighting for their 
own homelands in Assam claimed respon- 
sibility for the attack. (AFP) 

For the Record 

Industrial accidents killed 6. 1 17 people 


Vietnam and Thailand signed a land- 
mark treaty on the delineation of territorial 
waters, the Thai Embassy said Monday, die 
first such agreement between Vietnam and 
any of its neighbors. (AFP) 

VOICES^^rorrw\sia 

Mother Teresa, the Nobel laureate, re- 
calling India’s spiritual heritage as it nears its 
50th year of independence: “Let us make 
sure that we never lose this deep spirit of 
prayer in our country. It must be our prayer 
that the people of India will be one heart, full 
of love in the heart of God. ’ ’ (AFP) 

President Fidel Ramos of the Philip- 
pines, appealing to citizens to take a greater 
role in the fight against rampant crime: 

Our citizens complain a lot about crime in 
our society. But not too many pul their 
money where their mouths are.” (AFP) 









Forget Chintz, This Year It’s Provence 






rtv t h 

f v - 



i 



By Linda Hales 


W ashington — Back ir 

Jbe '80s, when Wall Stree 
hit its stride, American! 
of means dressed thes 
10 look like an English aristo- 
crat s crumbling country estate. Tb« 
a , lack 01 «nturies-old archi 
J! CP? walls, lavishing fadec 

chintz on down-stuffed sofas, lining ur 
coBactfona of 

and allowing dogs everywhere 

n2ii 0nes or ? floor, imitations or 
needlepo^t pillows, china for the mantel 
and oil paintings on tbe walls). 

style-conscious Americans arc 
transferring their gaze to sunnier climes; 
' 1S ™ French country house, not the 
orany English one, that inspires awe and 
imitation. 

OolorftiJ Provencal cottons brighten 
suburban breakfast bare. Tract mansion 
bedrooms are plumped up with pillows 
Jouy. Televisions peek from 
iytfi-eentury armoires converted to en- 
tertainment centers. Prized French lime- 
stone, ironwork and baskets are trans- 
forming the all-important family room 
into a cocoon of casual elegance. 

‘‘It reflects a shift we see in our 
lifestyles,” says Sally McCormick Mc- 
m u Connell, a founder of French Country 
^ Living, a furnishings store in tbe af- 
fluent Washington suburb of Great 
Falls, Virginia. “We have shifted, as 
Americans, away from using formal liv- 
ing and dining rooms, more into this sort 
of communal kitchen-family room 
space. That is so much more likft a 
French farmhouse.” 

Market research tells her, she adds, 
that * ‘the hunger for things of a French 
country nature is an untapped market 
that could reach $3 billion.” 

Good-bye tea and crumpets; hello 
poulet roti. 

The swing of the style pendulum was 
hard to miss this spring, when two de- 
signer events coincidentally created a 
face-off between fans of George HI and 
updated Louis XIV. 

In New York, Mario Buatta, die pop- 
ular anglophile designer long known as 
the Prince of Chintz, delivered a bravura 
r of elegance at the Kips Bay Boys & Girls 
' Club Decorator Show House, an annual 


di^riay of couture-level interior design. 
His timeless pastel garden room was 
edged in tasseled silks and fit for a royal 
{as is his own dog-and-chintz-filled 

Manhatta n apartment, spread over eight 
pages of the September Architectural 
Digest). But the buzz had moved on. 

Two weeks earlier, the Parisian de- 
signer Jacques Grange had made a head- 
line-grabbing debut at the mass-market 
furniture trade show in High Point, 
North Carolina. Grange, whose private 
clients include Princess Caroline of 
Monaco and Yves Saint Laurent, had 
been hired by John Widdicomb Co. of 
Grand Rapids, Michigan, to bring glam- 
our to the American retail market 


are owned by Andre Cointreau and his 
wife. They have extended their defin- 
ition of French style to the Loire Valley. 
“Louis XHL Louis XV and Louis-Phil- 
ippe have come back up,*’ says Oma 
Menacbe. director of merchandising. 

The high price of imported fabrics 
made them inaccessible to many Amer- 
icans. But last year. Calico Comers, 
which sells fabric at bargain prices in 1 00 
stores nationwide, decided to spread the 
holiday mood with made-in- America 
‘"Provence’ ’ cottons. No matter that they 
cany names like “Reims,” “Lausanne” 
and “Mulhouse.” With prices of $12.99 
a yard, compared with $50 to $80 for 
imports, the company expects to sell a 


‘It reflects a shift in our lifestyles . The hunger 
for things of a French country nature is an 
untapped market that could reach $3 billion. ’ 


He showed off 28 updated classics, 
some with celebrity provenance, in an 
urbane salon-like setting. “Incredibly 
elegant, sophisticated and daring,” 
came the verdict from House & 
Garden's editor, Dominique Browning 
But it wasn’t just the curve of a chair 
leg that mesmerized trendspotters. 
Grange had made the salon of a French 
manor house or a Parisian apartment 
seem like the place to be. And be man- 
aged to deliver an essential lesson about 
French style: Mix periods as if you'd 
had tbe good fortune to inherit it all. 

P IERRE Moulin, co-owner of 
Pierre Deux Antiques in New 
York, has been tempting well- 
heeled Americans with fur- 
niture from real French manor houses 
for 30 years. “The love of French cul- 
ture is very prevalent on the West 
Coast,” be reports — and in Atlanta and 
Dallas. “New York is an animal all its 
own. Boston is very English/’ 

Moulin and a partner, Pierre LeVec, 
founded Pierre Deux furnishings stores, 
known widely as a source for authentic 
Provencal Souleiado fabrics. They sold 
out years ago. Now nine stores in lo- 
cations from Madison Avenue in New 
York to Rodeo Drive in Beverly Hills 


large quantity this year. By comparison, 
sales of “Chelsea Gardens,” its col- 
lection of ersatz English florals, are wilt- 
ing In the vase. 

French stylists worry that their Amer- 
ican clients love the stuff too much. 
Jeanne-Aelie Desparmet Han, a French 
interior designer working in Larchmom, 
New York, says, “If I see one more 
Souleiado tablecloth, 1 will nor be able 
to ear from it.” McConnell’s research 
puts the overall U.S. market for home 
furnishings at more than $64 billion in a 
prospering economy. Small wonder that 
new players are seeking entree. 

The couturier Christian Lacroix flew 
to New York earlier this year to in- 
troduce his carnation-strewn china and 
upmarket cotton damasks for Chris- 
to fie. The former Chanel model Ines de 
la Fressange would tike to charm New 
Yorkers with era yon -colored furnish- 
ings inspired by her Normandy week- 
end house, the subject of a 1993 spread 
in EUe Decor magazine. 

But no visitor has been greeted with 
more style-industry ink than Grange. 
Introduced to Vanity Fair readers in 
1995 as * "The Artist of Living Well,' ' he 
has been featured in House & Garden, 
House Beautiful and W magazines. 

In summer. Grange retreats to a mas 


in Sainr-Remy-de-Provence. His class 
on style will resume in October, when 
he decorates the salon of a New York 
mansion as part of the American Hos- 
pital of Paris French Designer Show 
House. The house, at 49 East 67th 
Street, opens to tbe public for a month 
on Oct. 16. The same day. Grange's 
second collection for Widaicornb will 
be unveiled at the fall market in High 
Point- Among new treasures will be a 
cherry wood credenza with a price that 
would hardly make a dent in a Wall 
Street bonus: about $ 11, 000. 

Whether the buying public embraces 
Grange's salon style will soon become 
clear. His furniture will arrive in stores 
this fall. Either way, Widdicomb stands 
to win. It has produced Buatta’s Geor- 
gian-inspired styles for years. 

The nexr French style moment may 
occur when the Microsoft magnate Bill 
Gates moves into his lakefront mansion 
near Seattle, under construction for sev- 
en years at costs reported in the tens of 
millions of dollars. 

Gates employed the versatile and ro- 
mantic French architect Thierry Des- 
pont, leaving observers to speculate on 
whether the interior will glitter like the 
Statue of Liberty, which Despont's firm 
restored for the Bicentennial in 1976, or 
revive the 18th century as Despout has 
done at decorative arts galleries in the 
new J. Paul Getty Museum in Santa 
Monica, California. 

Perhaps Despom will propel Gates to 
a zone of his own. At a French Designer 
Showhouse several years ago, Despont 
was inspired by the poet Rimbaud. He 
furnished a dark brown room with a few 
eccentric furnishings including a giant 
winged bathtub and declared. “It is as if 
the wind of poetry had shattered a 
room. ' ' On another occasion, he painted 
a room black, installed a huge round 
vanity minor at the far end and called 
the place “Camera Obscura.” 

I T may be just this kind of intel- 
lectualizing that has kept Amer- 
icans on the edge of true French 
style. Tbe French often say tbeir 
best rooms are atmospheric rather than 
correct, not so much decoration as per- 
sonal expression. Elegance is achieved 
through simplicity, discretion, a touch 
of eccentricity and respect for history. 



Museum Hosts a Japanese Tea Ceremony 


By Paula Deitz 


W ASHINGTON — By the 16th century in 
Japan, practices had been established fix' 
the preparation and drinking of tea in 
accordance wilhZen Buddhist tradition, hr 
Zen thinking, the ritual heightened awareness of beauty 

in the simple and imperfect objects of daily life. 

fit the ceremony, tbe tea master boiled the water, 
whisked the powdered green tea in bowls and served 
guests in formal movements. Afterward, the guests 
paused to admire the crafts m an s hi p of the bowls, the 
tea caddy and the water jar at the master’s side. 

Visitors are doing something similar these days at 
the Freer Gallery of Art, which has mounted “An 
Invitation to Tea,” a small but exquisite exhibition of 
utensils for a tea service. 

JToday, even the collecting of such utensils takes on 
ritual-like aspects. As in a table setting for a dinne rparty, 
f unexpected objects pressed into service to perform 
oitfinary functions sometimes add zest to the array. 

■ One tea master, serving friends at his house in Kyoto. 

atia “Moon After tbe Rain” tea, used a common water 
edntainer found at a maricet in the Philippines. 

•“Before museums existed in Japan, the serving or 
tea was the unique occasion for a public display of 
utensils so that private collectors, always in com- 
petition, would invite friends to tea as soon as a special 
utensil was acquired,” said Louise Cort, the ceramics 

curator at the Freer. ...... e 

Today in Japan, museums like the Nezn institute or 
Fine Art and the Hatakeyama Collection in Tokyo are 
devoted to the display of tea utensils. Records have been 
important teas; an exhibit al the Hafakeyama 
once recreated an Imperial outing ai cherry blossom 
time simply by an arrangement of tea utensfls. 

When the Freer completed renovations in 1993, it 
created in its Japanese section an intimate gaUftty 
■ whose orange-brown walls recall the rustic huts 
^favored for ritual teas. Though there is no entrance 



Neil Qnoute/FiecT GaJicty of An 


On display: tea bowl, water jar and tea caddy. 

garden to clear the mind of earthly pursuits, the 
refreshing sounds of the Fieer’s nearby courtyard 
fountain are more titan an adequate substitute. 

To make the selection and arrangement of these 
utensils, an art form called “toriawase" in Japanese, 
tiie Freer invited DickDanziger and his wife, Peggy, of 
New York, to be guest curators for the show. The 
Danzigers, active collectors and users of tea utensils, 
rummaged through the stores of the Freer, seeking out 
unusual objects from different Asian countries. 

The 25 objects on display come from Japan, Korea, 
rhina, Turkey and Vietnam, reflecting the kind of 
international trade that flourished in tbe 16th century. 

Danzigex said that many of the objects, in fact, were 
not originally made for serving tea. “As a parallel to 
the Japanese love for verbal puns,” he said, “we 


discovered many visual puns in the objects themselves, 
which were not always what they seemed to be.” 

Here, an ancient Chinese bronze finial for a chariot 
pole serves as the customary banging vase for flowers, 
and a tea caddy that looks like ceramic Takatori ware 
is actually lacquered. 

The Danzigers have arranged the gallery to rep- 
resent the stages of serving tea, in effect making guests 
of its viewers. In place of the scroll traditionally hung 
in tbe display alcove of a teahouse, the Danzigers 
chose a decorative wooden panel from the Edo period 
showing a phoenix alighting on a tree peony. Below it 
stands a cinnabar lacquer basin, which would be filled 
with moist cloihs to refresh the guest Nearby is a 
celadon Korean ewer for pouring said into a Chinese 
cup, whose crackled glaze produces a tactile sensation. 
There is also an inkstone in its box and a brush, in case 
a guest wished to begin by writing a poem. 

F OR the centerpiece of the show, the Danzigers 
chose their favorite water jar, tea caddy and 
bowl and displayed them in a way That sug- 
gested the Zen ideal of balance and harmony. 
The jar, a tall vessel with an artificial patina modeled 
after Chinese bronze objects of the Zhou dynasty, is 
both substantial and nigged next to the delicate tea 
caddy, which is in the style of Koryo celadon ware, 
with inlaid slips depicting flying birds. 

Finally, there is a Rakuware tea bowl; iis black glaze 
with traces of red and its irregular surface make a 
stunning contrast to bright green tea, in the same way 
that tbe darkened bark of a tree after rain stands our 
against green leaves. Next to this arrangement is a tea 
scoop and a tea whisk of bamboo, resting on a folded 
green napkin, tbe color of tea. 

Viewers are encouraged to practice the art of tori- 
awase by arranging in their imaginations the remain- 
ing. exquisite objects in the show. 

Paula Deitz, co-editor of the Hudson Re\iew, wrote 
this for The New York Times. 


BOOKS 


jp 

r 





pages. $20. 



nan brDDght OUt 

pass,” arguably 
f novel of tbe past 
the book went on 

Vtedal (Britain’s 
yery Award), the 
», and a host of 


L ’Eagle s ‘A 
jjppa Pearces 
m,” and Alan 


jo. ‘ * — — ~y • 
,eeriy,hream- 

aiing than any 

en Conopass 
of a trilogy, 
nously dfled 
>r the past two 
ed with des- 
econd install- 
p up the level 

Jons and ar- 
ries. lost ex- 
loonists, after 
s. Coniter and 
Lord Asriel, 
jn Board and 


these, what could possibly come next? 

Surely, the man’s imagination would 
fla g. . 

Not a bit “The Subtle Knife turns 
out to be — hurrah! — just as quick- 
moving and unpDtdownable as its pre- 
decessor. Moreover, it builds on the 
gaslig ht romantic adventure of the first 
novel and prepares us for a concluding 
volume of almost inconceivable cos- 
mological grandeur War in Heaven. 

Ir is, however, a dark book, replete 
with mystery, horror and heroic self- 
sacrifice. Moral questions and complex- 
ities abound- To whom does one owe 
loyalty? Can good result from ex acts? 

How can we tell rightfrom wrong. Not 
Vas>. in its pages Lyra Belaequa dis- 
covers that her destiny lies d eeply in- 
tertwined with that of an indomitable 

Golden Compas£’ Pullman 
created an alternative, late 19th-century 
Earth, one in which everybody pos- 
sesses his or her own totemic animal 
called a daemon. These daemons are 
visible and, in certain respects, repre- 
sent the outward embodiment of a per- 
son’s souL In tins slightly skewed, y®J 
still familiar world the government bu 
the hands of a militant church, named 
the Mairisterititn, which feels mcreas- 

recentdtoovenes 

about the namre of the^vCTse- a nBai w 

In particular, the “Through the Looking-Glass.’’) Passing 

beffious through this opening. Will finds himself 
ina as invisible substance - j — «"** ** r ,r - 

l®. ffrr jwmB reason, sfifitns to collect 


napped by a shadowy organization called 
the Oblation Board, and the fearless 12- 
year-old girl goes to tbe rescue. As she 
fights her way north, Lyra realizes that 
her earth is on the verge of some cata- 
clysmic change. But she never suspects 
how important her own role will be. 

At the very end of “The Golden 
Compass” Lyra and heir daemon cross 
through a newly framed astral portal. As 
“The Subtle Knife” opens our heroine 
finds herself in “a beautiful city on the 
sea, empty and silent and safe” — or so 
it seems. 

Meanwhile, in contemporary Eng- 
land, young Will Parry worries about 
the strangers who keep harassing his 
mentally ill mother, asking insistent 
questions about his long-missing father, 
die polar explorer John Parry, when the 
men return at night and begin ransack- 
ing the house. Will accidentally kills 
one of them. As he flees into the dark- 
ness, the boy grabs a leather case con- 
taining his father’s last letters home. 
They eventually reveal that John Parry 
was searching for something he referred 
to only as "the anomaly.” 

H OPING to trace his father's where- 
abouts. Will makes his way to Ox- 
ford and there stumbles across his own 
anomaly — a window into another 
world. (He owes its discovery to a cat — 
a neat homage to Lewis Carroll’s 


evocative prose, keeping tbe action 
moving at a fast cup, occasionally 
adding feather-light allusions to “Ham- 
let,” Icelandic sagas, “Paradise Lost,” 
and all kinds of folklore: Tbe name 
Asriel, for instance, echoes that of 
Azrael, the angel of death. As a writer he 
can describe with equal vividness the 
tide research of an Oxford physics 


tnrOUgn UU5 »» ui 

in the deserted Italianate port of Cii- 
!, where he meets the lost Lyra, 
conveys all this in clean. 


b and tbe spooky artifacts of the Pitt 
Rivers ethnological museum. 

As “Tbe Subtle Knife” progresses, 
as both the good and evil converge on 
the haunted world of Cittagazze, the 
mysteries deepen and the wonders grow 
ever more extravagant Psychic vam- 
pires called Specters feed on the un- 
lucky; Dust and “dak matter" ram out 
to be the same. 

Let me end with three bits of advice: 

1) You really should read “The 
Golden Compass” before “The Subtle 
Knife”; 

2) If you are an adult, don’t un- 
derestimate or dismiss Pullman’s books 
because they are marketed as young 
adult novels; You enjoy “The Hobbit” 
and the Namia Chronicles, don’t you?; 

3) You will undoubtedly devour 
‘ The Golden Compass’ ’ in a fury: Slow 
down for “The Subtle Knife.” Make it 
last After aiL you’ll probably need to 
wait two years or more to learn what 
happens to Will and Lyra and Lord 
. Asriel and Serafina Pekkala and Mrs. 
Coulter. At tbe very least, it’s sure to be 
absolutely out of this world- 

Michael Dirda is a writer and editor 
for The Washington Post Book World. 



Mnt RiixosUe* 


Jacques Grange with his furniture at High Point, North Carolina. 


“The French method can lead to a 
wonderfully personal space or be a li- 
cense for chaos,” warns Celeste 
Cooper, an interior designer for Rep- 
ertoire in Boston, who follows French 
design trends closely. 

McConnell, who will launch a French 
Country Living direct-mail catalogue 
next month, believes that Americans are 
becoming more comfortable with tbe 
risks. ‘ ‘We’re more confident, we travel 
more than we did,” she says. “I think 
this is a process of becoming more so- 
phisticated over time.” 

Moulin cautions. “The Americans, 
when they do something, they do it all 
the way. When they do a kitchen, they 
buy every possible gadget, and very 
often they don’t even cook.” The same 


applies concerning decorating, he says, i 
“The tendency is to have too much.” « 

At tbe high end, at least, no (me need > 
worry about having too much of a good 
thing for long. French antiques are grow- >. 
ing scarcer. “Certain pieces are not to be i 
found in France or here,” says Moulin, i 
“Right now, we don't find the quality 
and quantity that we were used to five ' 
years ago. Rices are going higher.” 

Wall Street barons who find them- 
selves priced out of the market could let 
the pendulum swing back to, say, a 
country bouse in Dorset There should 
be plenty of room this August, with the 
English flocking to France. 


Linda Hales is home and design ed- 
itor of The Washington Post. 


Bra Straps Go Public 


By Constance C.R. White . 

New York Times Service 

N EW YORK — Decorum in 
dress has beat a hasty re- 
treat from summer fashion. 
The most ubiquitous trend 
on the streets is bra straps deliberately 
and coquettishly on display. 

When temperatures soared in July, 
teenagers and young women 
throughout New York City all had the 
same idea: a provocative show of a 
lingerie strap beneath a little baiter , a 
tank top or a bare slip dress. 

And being high profile is no reason 
to keep one’s bra straps under wraps, 
either. On this month’s cover of GQ 
magazine, the actress Mira Sorvino 
bares them under a tight black sweat- 
er, and the latest CK Calvin Klein 
advertisements feature Kate Moss 
outing her straps. 

As with any fashion convergence, 
several agitators are behind this rude 
look. While this particular emphasis 


on. the bra is new, we have in fact been 
looking at bra straps now. for at least 
five years. This is yet another step in 
the evolution of innerwear to out- 
erwear, which took giant leaps for- 
ward when inner-city kids and rappers 
began making fashion by showing tbe 
waistband of their underpants and 
Madonna declared underwear a part 
of her stage wardrobe. 

Designers like Dolce & Gabbana, 
Miuccia Prada and, more recently, 
Helmut Lang and Jean Colonna have 
poshed the idea of clothing with thin 
straps and adjustable slides like those 
traditionally used in lingerie. The slip 
dress, courtesy of John Galliano, 
marches on, seemingly indefatigable. 

Colonna’ s collections of tbe last 
four seasons stand as a virtual opus to 
the noir life, complete with hanging 
bra straps, tousled hair and the waist 
of panty hose riding up above the 
waist of a skirt — a style that could be 
a natural follow-up this fall to the 
summer’s exposed bra strap. 


CHESS 


By Robert Byrne 


A GAINST 4 a3 in the Queen’s In- 
dian Defease, which avoids a pin 
that can come up after 4 Nc3 Bb4, 
Kasparov picked the most aggressive 
assault on the white center, 4...c5, and 
after 5 d5 Ba6 6 Qc2 ed 7 cd, be had a 
type of Benoni formation. 

Kasparov’s 18..J4df6!? had to be cal- 
culated astutely because tbe e4 knight 
was now out on a limb. After 19 g4 
Qd7!? 20 g5 Nh5, Geifand could have 
tried 21 Re4 Re4 22 Qe4 Re8 23 Nc5, 
yet after 23...Re4!? 24 Nd7 Nf4 25 Nf6 
Bf6 26 gf ta6, he would shortly drop bis 
f6 pawn, have the looser pawn position 
and the worse piece play in die end- 
game. 

The nice conception behind Kas- 
parov’s yielding up his bishop pair with 
23...B c3! was that after 24 be Rbl 25 
Rbl , the black pieces controlled the best 
real estate. 

After 26 Nd2, if Kasparov had seized 
a pawn with 26...Bd5, then 27 Rdl Re6 
28 Ne4 Be4 29 Be4 fe 30 Qb3 Kg7 31 
Qd5 would retrieve it with the better 
game. 

Kasparov's 27...f4! explained why he 
did not worry about Gelfand’s bishops; 


tbe one on h2 was now locked out of 
play. Geifand could not blast it loose 
with 28 Bf4? because the fork, 28...Qf5, 
wins apiece. 

After 28..JRc5, Geifand could not 
have found counterplay with 29 Re5 de 
30 d6 because 30..JG8! prevents the 
vital 31 Bd5 and thus prepares 31.. -Ng7 
and 32..Nf5 to win the d6 pawn. His 29 
Re4, however, lost a pawn to 29..JRe4 
30 Be4 Qh3, tbe point being that the 
threat of 31...Qfl mate paralyzes White, 
especially since 32 Bf4 Qg4 33 Bg3 Qo4 
wins apiece. 

GeJfand’s 37 Qf7 did stop 37..Ne3? 
by the lethal 38 Bf4, but Kasparov un- 
loaded a killer with 37.. J3fl ! 

It would have done Geifand little 
good to try 38 Bf4 because 38...Qf4 39 
Bfl (39 Kfl drops tbe queen to 
39..JNe3) Qg3 40 Khl Ne3 wins tbe 
hapless bishop. 

Kasparov’s chilling 39...Qb4! 40 40 
Ke2 Qh2 picked up one bishop and 
trapped the other. 

After 41 Kd3, he denied Geifand the 
remotest chance to fight with 41...Nf5! 
tire bishop could not escape because 42 
Bfl Qf2 43 Be2 Qe3 does the trick, 
Geifand gave up. 


KASPAHOWBLACK 



Position after 17 Qf7 


4 a3 

c5 

5 d5 

Ba6 

6 Qc2 

ed 

7c d 

gfl 

8 Nc3 

Bg7 

9 gj 

M 

10 Bg2 

de 

11 0-0 

Res 

12 Rel 

Nbd7 

13 h3 

b5 

14 e4 

QcS 

15 Bf4 

b4 

16 Na4 

63 

17 Qb3 

Ne4 

18 Qc2 

NdfS 

19 g4 

20 g5 

21 Bh2 

§£ 

IS 


Black 
Xasp’uv 
RBb8 
Bc3 
Rbl 
Bc4 
Nd2 
ft 

28 Rel Re5 

29 Re4 Re4 

30 Be4 Qh3 

31 Bg2 Qg4 

32 Qel Ng7 

33 « Qr5 

34 QM Nf5 

35 Qbfi Kg7 

36 Q&7 KM 

37 Bfl 

38 Kfl Ne3 

39 Khl QM 

40 Ke2 Qh2 

41 Kd3 Nth 

42 Resigns 


White 

Getfand 

ld4 

2 C4 

3 Nf3 


QUEEN’S INDIAN DEFENSE 

Black 
Kasp*ov 

m 


eS 

b8 


White 

Geifand 

22 Nc3 

23 Robl 

24 be 

25 Rbl 

26 Nd2 

27 Qd2 


i 



PAGE 8 


TUESDAY, AUGUST 12, 1997 

EDITORIALS/OPINION 


% 

&■ niwi-H 


Heralb 



R'BUSHBD WITH THE NSW VDBK TOTS AND THH WASHINGTON TOST 


America’s UN Mess 


nbune. Sound Chinese - U.S . Relations Do Have Results 


,H'V 


Bill Richardson, the American rep- 
resentative to die United Nations, is 
bravely heading arc and the work! to 
sell the American plan far budget and 
organizational reform. Fortunately, be 
has a few sweeteners; no doubt he 
wishes be had more. 

One is the proposal to offer Ger- 
many and Japan pins three stand-ins 
for the less developed countries their 
own seats in the 15-member Security 
Council. They would not have the veto, 
but they would have voice and vote and 
a role in the elite international body. 
The council’s expansion would have 
been valuable as a reflection of global 
change even had the U n i ted States 
taken a different, more generally pleas- 
ing approach to budget and rcfonn. 
wfth the approach it took, expansion 
becomes a political sop as welL 

Do Americans have any true sense of 
how the American reform plan rankles 
many other members? By this plan, 
sensitive matters which die United 
States had a treaty commitment to bar- 
gain out with the other 184 members 
were unilaterally imposed by Wash- 
ington. Can you imagine how Amer- 
icans would react if. say, Russia or 
China or Iraq or Iran, you name iL stood 
up and announced that on its own it was 
canceling a good slice of old arrears, 
cutting future dues and prescribing a 
new shrinkage of die organization’s 


bu rea ucracy as though it was entirely 
one country’s to command? 

The administration’s explanation 
for this method of unilateral dictation 
is that, given the political realities at 
home, this was "toe best we can do.’ ’ 
How would you like that as toe sew 
national slogan to offer to other coun- 
tries, or to ourselves? The United 
States cannot expect to escape this 
episode without paying a price — in 
respect for our country ana in toe en- 
couragement given others to be sim- 
ilarly arbitrary and unilateral. 

It is argued that at this late date there 
is no feasible alternative to making die 
most of what the administration was 
able to extract from Congress. Such 
grumbling as there is in American polit- 
ical quarters has not translated itself 
into a capacity to revise the American 
plan. That makes it the more essential 
not to sink below the agreed shrunken 
level of financial commitment embod- 
ied in die plan, as yet could happen. 

The reasons for s u pport of toe 
United Nations go fin- beyond sen- 
timent. It is in act more useful to 
Americans than to anyone else, since 
die United States is unique in die scope 
and diversity of its international in- 
terests, and toe United Nations remains 
the organization with the broadest and 
most inclusive international reach. 

— THE WASHINGTON POST. 


Against Land Mines 


Last spring toe word was that if toe 
Conference on Disarmament at Geneva 
did not show signs of producing an all- 
iogetoer-now consensus on an inter- 
national ban on land mines, then the 
United States would review its policy 
and consider swinging its weight more 
to the simpler sign-up-one-at-a-time 
treaty being negotiated at Ottawa. This 
is now happening. No decision has 
been taken to embrace Ottawa, but 
American policy on land mines is de- 
scribed as under review at the highest 
level. Nearly 100 nations have already 
spoken up for a prompt comprehensive 
international ban on the production, use 
and transfer of these murderous 
devices. The United States could soon 
go on toe list, and should. 

Huge numbers of land mines already 
exist. They are cheap and easy to pro- 
duce and have been set out and left 
lying, unmapped and unmarked, in 
dozens of countries. It will be toe task 
of a generation or two to locate them 
(by other mean*; , one hopes, than by 
innocents stepping on than) and to 
neutralize or destroy them. A ban on 
anti-personnel land min es does not 
reach effectively to these devices 
already seeded. Nor does it produce the 
technologies to render them dangerous 
no more. Nonetheless, it will be a sig- 
nificant day when no more land mines 


are produced, used and sold anywhere 
in me world. If we cannot easily deal 
with the tenor that exists, we can ay to 
keep it from getting worse. 

For some years the United Stares 
favored the Geneva consensus ap- 
proach. It was consistent with Peat- 
agon plans to employ these weapons to 
protect exposed American troops, in 
Korea ana Iraq, for instance. Geneva 
also provided a venue in which to 
engage the big exporters, among them 
Russia and China. But the wind has 
been changing A drive is on by com- 
mitted governments and citizen ad- 
vocates to finish np the Canadian- 
hatched ban this year. Military voices 
have been prominent and strong in 
denying toe military utility, necessity 
and irreplaceability of these weapons 
whose distinctive feature is' that most 
of them are at once weapons in war 
and, since they stay in toe ground, 
weapons in peace as welL 

This is not a moment, with American 
troops in place and a negotiation 
penaing, to send signals of uncertainty 
by jiggling toe status of mines in Korea. 
But it is a moment for an otherwise 
asterisk-free repudiation of these hor- 
rible instruments. The Russians and 
Chinese and other laggards should take 
the heat for staying in this ugly trade. 

— THE WASHINGTON POST. 


Try to Repair the INS 


Few students of America’s immi- 
gration policy would contest toe notion 
that the federal agency in charge of it has 
been a calamity. No organization could 
successfully seal the border, but toe 
Immigration and Naturalization Service 
has proved exceptionally inept at its 
most essential tasks. It has done a poor 
job of keeping out illegal aliens, de- 
porting criminals, processing requests 
for asylum, visas or citizenship in a 
reasonable amount of time and even 
maintaining basic courtesy in the district 
offices that serve legal immigrants. 

The latest reform proposal .cranes 
from toe U.S. Commission on Immi- 
gration Reform, a bipartisan advisory 
group appointed by Congress and toe 
president in 1 990. Word came last week 
that the commission intends to recom- 
mend abolition of the INS. That would 
likely just make toe problems worse. 

The commission proposes parceling 
out INS functions. The Labor Depart- 
ment would catch illegal aliens on toe 
job. The Justice Department would 
patrol borders, catch and deport illegal 
aliens and prosecute smugglers. The 
Stare Department would take over all 
visa and naturalization services. 

The commission is correct that the 
INS 's dual job as policeman and social 
worker has ended up emphasizing po- 
lice work to the detriment of serving 
legal immigrants. But that is only 
partly attributable to the influence of 
the agency's enforcement-minded cul- 
ture. A better explanation for failure, 
particularly on the service side, is 
chronic underfunding. The service 
staff, whose clients are mostly power- 


less and scorned, lacks sufficient train- 
ing to deal with them. 

The Stale Department is not equipped 
for this sort of work, which would be 
largely inside toe United States. In ad- 
dition, service and enforcement officers 
must consult whenever a suspicious visa 
application appears and an investigation 
may be warranted. Poor coordination in 
such cases usually accounts far the entry 
of unqualified immig ra nts. Coordina- 
tion would only worsen if enforcement 
and service responsibilities were in dif- 
ferent departments. 

Nor does moving workplace immi- 
gration checks to toe Labor Depart- 
ment make sense. That would discour- 
age sweatshop workers from reporting 
abuses, getting in the way of the Labor 
Department’s primary objective of en- 
forcing wage and safety standards. 

The INS may not be as hopeless as 
many politicians and toe public think. 
It is extremely troubled, but has im- 
proved under toe leadership of Doris 
Meissner. Since her appointment in 
1993, the budget has doubled to $3.1 
billion, with most of toe increase going 
to enforcement. The border is tighter, 
and the INS is deporting record num- 
bers of c riminal aliens 

On the service side, naturalizations 
are moving faster and so is toe asylum 
process. Unfortunately, the district of- 
fices remain disastrously run. Stilt 
given the overall improvements in re- 
cent years, it is too soon to give up on 
the INS. C hang ing the agency is not 
easy, but that path offers more hope 
than breaking it up. 

— THE NEW YORK TIMES. 


3teralh^S?ribunc 

ESTABLISHED 1887 

KATHARINE GRAHAM, ARTHUR OCHS SULZBERGER 
Co-Chairmen 

KATHARINE P. D ARROW, Vice Chairman 

RICHARD McCLEAN, Publisher A Chief Executive 
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A TLANTA — I spent the spring of 
1949 in toe seaports of China as a 
naval officer on my first submarine 
cruise. Nearly 30 years latex, Deng 
Xiaoping and I normalized diplomatic 
relations between our countries. 

We knew that even with this open- 
ing, decades of patience and persistence 
would be required before the bonds 
between our greatly different countries 
would be firm and predictable. 

I consider sound Chinese- American 
relations, along with the importance of 
mainlining h nman rights as a foun- 
dation of foreign policy, to be legacies 
of my administration. TTie two goals are 
not incompatible, but can be reached 
only if we try to understand each other. 

Americans have benefited from toe 
unprecedented stability and prosperity 
in die Asia-Pacific region made pos- 
sible by close ties among the United 
States, Ghinn and Japan. But the 
greatest beneficiaries have been toe 
Chinese people, whose quality of life 
and hnman rights have improved enor- 
mously daring toe last two decades. 

China and America continue to share 
many interests: maintaining peace and 
stability in toe Asia-Pacific region. 


By Jimmy Carter 

controlling weapons of mass destruc- 
tion, preventing conflict on toe Korean 
Peninsula and fostering open trade. 

Many Americans and Chinese have 
lost sight of the original vision that 
brought os together. The accomplish- 
ments of a quarter century are at risk. 

On my latest trip to China last month, 
I met President Jiang Zemin, Prime 
Minister Li Peng, the chair man of toe 
National People’s Congress, Qiao Shi, 
and other leaders. They expressed con- 
cern t ha t American leaders were en- 
couraging Japanese rearmament and 
extending Japan ’s defense perimeter to 
include Taiwan. They also deeply re- 
sent American sales of F-16 jet fighters 
and other weaponry to Taiwan. 

We also discussed America’s con- 
cerns, including the mounting trade 
deficit, human rights and particularly 
the treatment of the Tibetan people. 

Mutual criticisms are proper and 
necessary, but should not be offered in 
an arrogant or self-righteous way, and 
each of us should acknowledge im- 
provements made by the other. 


Significant changes are taking place 
throughout China. There is no longer a 
single unquestioned government 
policy. Instead, top leaders have a wide 
range of opinions on such issues as the 
role of parliaments, expansion of toe 
election process and privatization. 

An increasingly free economic sys- 
tem has transformed toe lives of toe 
people. Fanners now retain profits on 
practically all crops planted on their 
land, and many villagers own their own 
businesses. Incomes and educational 
opportunities have risen sharply. Al- 
though congregations must still reg- 
ister with the government, membership 
in Christian churches is booming. 

A 1987 law mandates elections in 
nearly a million villages. Citizens can 
choose among multiple candidates, in- 
cluding Communists, in a secret ballot, 
and many non-Communists have been 
chosen as village leaders. 

Arbitrary power is still exercised by 
some political leaders, but progress is 
being made in promoting the rule of 
law. Some citizens are even bringing 
lawsuits against government agencies 
that violate their rights. 

President Jiang's long-overdue state 


visit to Washington in October will 
provide an opportunity to address hu- 
man rights and other , ■ 

American criticisms of China s hu- 
man rights abases arejustified, but toeir , 
basis is not well understood. West- 
erners emphasize personal freedoms, 
while a stable government and a unified 
nation are paramount to the Chinese. 
The result is excessive punishment of 
outspoken dissidents, and unwarranted , 
domination of Tibetans. 

But frank discussions on these and 
other issues can sometimes yield real 
progress. In private discussions in 
1979. Deng Xiaoping agreed to address 
toe issue of religious freedom, and 
great improvements were made. 

In 1987, after a visit 1 made to Tibet, 
and after subsequent conversations 
with the exiled Dalai Lama, discus- 
sions were arranged between his erais- , 
saries and Chinese government offi- , 
cials. Unfortunately, the T iananm en 
Square tragedy aborted the initiative. 

Mr. Carter, the 39th president of the 
United Stales, is chairman of the non- t 
profit Carter Center. He contributed ■ 
this comment to The New York Times. 


Russian Airmen Snoop in American Skies and No One Frets 


N EW YORK — Colonel 
Mikhail Botvinko attracted 
little attention last month when 
he and several fellow Russian 
airmen flew a Soviet-era cargo 
jet across a large swath of the 
eastern United States, taking 
photographs of American mil- 
itary bases as they wenL 
The flight came more than 
four decades after it was first 
proposed, and followed the ex- 
penditure of billions of dollars 
by Washington and Moscow on 
other, more exotic ways to mon- 
itor each other's military forces. 
What would have been a great 
diplomatic breakthrough dur- 
ing the Cold War seemed this 
summer merely another symbol 
of changed times. 

The night brought full circle 
one of the most volatile and 
secret chapters of the Cold War, 
the effort to spy from the sky 
before toe age of satellites. 

During the 1950s the United 
States conducted dozens of 
clandestine rec onnaissan ce 
flights near and over Soviet ter- 
ritory in an audacious and dan- 


By Philip Tan kman 


gerous campai gn to gauge the 
size and strength of Soviet 
forces. More than once toe ef- 
fort brought Soviet and Amer- 
ican planes into combat 

Colonel Botvinko may not 
have realized that his mission 
was inspired by those flights. It 
came almost exactly 42 years 
after toe day President Dwight 
Eisenhower, looking, in part 
for a less explosive way to gath- 
er intelligence, surprised toe 
Russians with a proposal to per- 
mit unrestrictea access to the 
skies by American and Soviet 
militar y aircraft. 

Eisenhower uncorked toe 
idea in Geneva in July 1955 at a 
summit meeting with Soviet, 
British and French leaders. The 
plan, quickly dubbed toe “Open 
Skies” proposal, seemed im- 
probable. Cold War tensions 
were high. Washington and 
Moscow lived in fear of a sur- 
prise attack by the other side. 

Nikita Khrushchev swatted 
down the Eisenhower plan. 


convinced that Washington’s 
■ real intention was to gather tar- 
geting information for Amer- 
ican long-range bombers. 

Eisenhower’s motivations 
were less threatening than 
Khrushchev tboughL The un- 
sealing of Cold W’ar secrets in 
recent years suggests that Eis- 
enhower's primary motivation 
was to reduce the danger of 
nuclear war. He hoped to pull 
Washington and Moscow tack 
from highly combustible secret 
confrontations in the skies over 
and around the Soviet Union. 

Several American aircraft 
flying along toe border had 
been shot down, and a number 
of planes sent directly over So- 
viet military installations had 
been attacked. 

The year before toe Geneva 
meeting, Eisenhower had au- 
thorized urgent development of 
a new reconnaissance plane, toe 
U-2, designed to fly above the 
range of Soviet air defenses. 
Flights over the Soviet Union 


by the U-2 were ended after one 
of toe planes was shot down in 
I960 and its piloL Francis Gary 
Powers, was captured. 

In proposing “Open Skies,” 
Eisenhower was no doubt also 
seeking to command the high 
ground in world opinion by of- 
fering an idealistic proposal that 
Khrushchev would reject 

Some of Eisenhower's top 
mili tary commanders, includ- 
ing Air Force General Curtis 
LeMay, advocated a preemp- 
tive American strike to disable 
Soviet forces if Moscow 
seemed on the verge of attack- 
ing the United States. 

With toe rejection of toe Eis- 
enhower proposal. Washington 
turned with increased intensity 
to aerial espionage. 

Cargill Hall, an Air Force 
historian, reported this spring in 
The Quarterly Journal of Mil- 
itary History that during a sev- 
en-week period in early 1956 
the U.S. Air Force flew almost 
daily missions over toe northern 
reaches of toe Soviet Union 
from a base in Greenland. In 


one especially provocative efj ^ 
fort, six American planes flew “• 
for hours in formation across 
eastern Siberia in daylight. 1 
The arrival of toe space agp 
brought spy satellites, which re- 
duced the need for aerial re- 
connaissance. Today the United 
States and Russia operate fleets 
of sophisticated satellites that 
can t ransmi t images of toe earto 
and intercept communications^ 

The combination of that tech- 
nology and the collapse of tbq 
Soviet Union made Eisen- 
hower’s idea less useful, and 
therefore more acceptable. Iq 
1992, 27 nations, including 
America and Russia, signed toe 
Open Skies Treaty. ^ 

If the Russian Par liament 
ever gets around to approving 
toe treaty. American reconn aisrj 
sance planes will routinely fly 
over Russian bases, and Colonel * 
Botvinko and his colleagues 
will return over America to be-; 
gin full-time work. Eisenhower 
and Khrushchev could scarcely 
have imagined iL y 

The New York Times. 


Thailand’s Incompetent Government Cries Out for Reforms 


B ANGKOK — As Thailand 
negotiated in Tokyo on 
Monday with the International 
Monetary Fund, Japan and oth- 
er potential creditors for a 
multibillion-dollar aid package 
to help shore up the once high- 
flying Thai economy, there 
were some serious political les- 
sons to be learned. 

External factors played a key 
role, but Thailand’s road to eco- 
nomic catastrophe was largely 
paved by inept leadership, my- 
opic planning, entrenched cor- 
ruption and gross mismanage- 
ment at crucial junctures. 

From 1985 to 1995, toe Thai 
economy appeared to perform 
very impressively. The cur- 
rency was devalued by 14.7 per- 
cent in November 1984 to ease a 
balance of payments crisis. It 
was then stabilized by pegging 


By Thirinan Pongsudhirak 


the baht to a basket of currencies 
dominated by the U.S. dollar. 

So the economy was able, for- 
tuitously, to get a major lift from 
the rapid rise in value of toe yen 
against toe dollar. Thailand's 
exports became cheaper and in- 
creased quickly. Foreign invest- 
ment boomed, much of it from 
Japan. Both helped fuel econ- 
omy’s double-digit growth. 

Then the authorities liberal- 
ized the economy to comply 
with international standards and 
enhance competitiveness. The 
stock market enjoyed a meteor- 
ic rise as economic growth pros- 
pects appeared to be unlimited. 

Beneath the veneer of spec- 
tacular expansion, toe economy 
was rotting from the inside. The 
stock market, one of toe IMF’s 


recommended ways of tapping 
domestic savings and attracting 
foreign investment became a 
den of insider trading. 

Thailand was spending much 
more than it earned. Some of toe 
proceeds of its growth policy 
were siphoned off by politicians 
through concessions awarded 
for major projects to improve 
creaking infrastructure. Much 
of the rest went into speculative 
property development and lux- 
ury goods, such as French wine 
and German cars. 

When exports nosedived and 
toe economy started to slow in 
1996, toe "previously hidden 
waste was exposed. A financial 
crisis followed, with capital 
flight and a huge de facto de- 
valuation. Thai leaders could 


American Century, Prolonged 


S AG HARBOR, New York 
— At a little distance from 
toe action of the day in Wash- 
ington, it is wonderfully 
amusing to watch senators ex- 
press Shock that Girina might 
try to influence American pol- 
itics, or that anyone might 
question the notion that the 
Czech or Hungarian armies 
should be taken into NATO 
and led by Americans. 

Our United States of Amer- 
ica is now. right now, toe most 
powerful nation the world has 
ever known. We are perfectly 
comfortable telling the Chi- 
nese and toe Czechs and any- 
one else who will listen — and 
they most! — exactly how to 
run their politics, toeir gov- 
ernment, their economy and 
toeir defense. 

And, except for those few 
living in what we call “out- 
law” nations (you know, 
Libya and people like that), 
toe tribes are doing just about 
what they are told to do. 

If they don't, we order them 
to hold our land of elections, 
run our kind of economy and 
act like civilized human be- 
ings, or be arrested as war 
c riminals or get hit with the 

big ones — NATO, ASEAN, 

the Internationa] Monetary 
Fund, the United Nations, toe 
World Trade Organization, 
the World Bank. 

“The American Century” 
was declared during World 
War IL a ppro priately by a me- 
dia baron. Hairy Luce, in one 
of his magazines. Life. He 
wanted us to beat up and put 
down the bad guys, and then 
turn the whole world into our 


By Richard Reeves 

schoolyard, teaching, toe op- 
pressed and toeir oppressors to 
be like us, get with toe pro- 
gram, democracy, free markets 
and all that 

When will the American 
Century end? Not by the year 
2000. Forget that “pitiful gi- 
ant” stuff. 

The historian Ronald Steel 
was asked by The New York 
Times to ponder the “oper- 
ational myths” of the day at 
toe miilenium. He inclnded 
this one: “The United States 
will decline.” He said: 

“Who is to challenge us? 
Japan is dependent on impor- 
ted resources and foreign mar- 
kets. China is a demographic 
disaster ripe fra a return to 
warlord ism. India verges on 
explosion and anarchy. Brazil 
has forever been the country 
of tomorrow. Europe will nev- 
er be more than a big and 
contentious shopping malL 
Russia has always been a 

g hantom giant ... The United 
tales will re main No. 1 in toe 
foreseeable future. 

My neighbor down toe 
street here. Betty Friedan, and 
I stayed np late into toe other 
night talking about that, about 
what might bring the new 
American Empire down. The 
only thing we could think of 
was climatological change. 

In a new book, “Promised 
Ijinri, Crusader State,” the 
historian Walter McDougall 
describes the irresistible 
American thrust into other 
people's business as “global 


meliorism,” a mission to do 
good things. We are deter- 
mined to save people whether 
they want to be saved or not. 

He traces toe urge back to at 
least 1819, when toe Amer- 
ican Board of Foreign Mis- 
sions voted to evangelize the 
Sandwich islands, which we 
now call Hawaii. 

Congregationalists that 
year instructed toeir mission- 
aries: “To aim at nothing 
short of covering those islands 
with fruitful fields and pleas- 
ant dwellings and schools and 
churches; of raising up the 
whole people to an elevated 
state of Cnristian civilization 
... to turn them from toeir bar- 
barous courses ... to introduce 
among them toe arts and in- 
stitutions and usages of civ- 
ilization and society.” 

Compare that to Douglas 
MacArthur’s charge to his men 
when he arrived to command 
toe occupation of Japan: 

“First, destroy toe military 
power. Punish war criminals. 
Build toe structure of repre- 
sentative government. Mod- 
ernize toe constitution. Hold 
free elections. Enfranchise the 
women. Release toe political 
prisoners. Liberate the farm- 
ers. Establish a free labor 
movement. Encourage a free 
economy. Abolish police op- 
pression. Develop a free and 
responsible press. Liberalize 
education. Decentralize polit- 
ical power. Separate church 
from state.” 

In other words, be like 
Americans. It pretty much i 
happened that way. too. 

Universal Press SvruhcMe. 


have prevented that outcome. 

As wages in Thailand rose 
while China, Vietnam and other 
countries offered investors 
cheaper labor, Thai exports were 
caught in a bind — neither cheap 
enough nor sophisticated enough 
to compete in world markets. 
This situation could have been 
corrected over time had it not 
been for the graft eating away at 
the financial system. 

First, the insolvency of toe 
Bangkok Bank of Commerce 
showed how a group of unscru- 
pulous politicians connived 
with bank executives to get huge 
loans secured by questionable 
land deeds. Instead of taking 
tough measures, toe central 
bank spent several billion dol- 
lars rescuing toe BBC. None of 
those involved in that affair have 
been arrested and charged. 

The Bank of Thailand began 
to lose independence and cred- 
ibility after its governor gained 
direct benefits from a finance 
firm which wanted a seat on toe 
stock exchange. 

The coalition government of 
Prime Minister Chavalit Yong- 
chaiyudh has proved a worse 
economic manager than its no- 
toriously corrupt predecessor. 
As it bailed out more and more 
finance companies that had 
made dubious loans to real es- 
tate firms, the coalition defied 
critics and pretended that all 
was well, partly by trying lo 
limit toe flow of information. 

Each delay in confronting toe 
financial crisis, especially the fu- 
tile battles in February and May 
to sustain toe value of toe baht, 
cost Thais dearly. When the au- 


thorities finally surrendered and 
decided to seek international as- 
sistance, the central bank had, 
used some $10 billion to prop up. 
toe baht and another $ 15 billion.' 
to bail out 58 of toe country’s 9t 
finance firms. 

The IMF-led bailout of Thai- 
land illustrates how a develops 
mg economy trying to liberalize 
to accommodate international, 
rules and attract capital can be- 
come dangerously vulnerable to ( 
global financial forces. Thai, 
leaders needed investment ip- 
flows to finance continued' ^ 
growth, but they underestimat- v 
ed the power and predatory, 
nature of international capital ■ 

The example of Thailan<3 
shows that economic fortunes 
ultimately depend on sound 
political structures. Thailand’?’ 
corrupt system — operated by; 
an unholy alliance of politi- 
dans, businessmen, bureau- 
crats and others seemingly 
above toe law — eventually un^ 
dermined toe growth facade. „• 

All Thais can do now is to- 
suffer the ensuing hardships and 
look forward to rectifying toeir; 
political system by approving, 
reforms that will give them a' 
genuinely democratic constitu- 
tion. If Mr. Chavalit’s govern-, 
ment fails to approve the draft ^ 
constitution in Parliament, it 
may galvanize an already deeply? 
disaffected people to revolt ' 

The writer, a lecturer in the] 
Department of International, 
Relations at Chulalongkorn'. 
University in Bangkok, contrib - ; 
uted this comment to the !n-\ 
t emotional Herald Tribune. ' 1 


IN OUR PAGES: 100, 75 AND 50 YEARS AGO : 
1897: Bulgarian Visit women have been made known 

® thin i n ,i ' 


LONDON — — During his visit to 
London, Prince Ferdinand of 
Bulgaria had several conversa- 
tions with leading statesmen 
and diplomatists. He was most 
anxious to discover how far the 
British Government would be 
prepared to go in the event of 
Bulgaria declaring her indepen- 
dence and proclaim! ng him 
king. The Prime Minister did 
everything he could to dissuade 
Prince Ferdinand from takin ° 
such a step. ° 

1922: Living 150 Years 

PARIS — “Can we live for 150 
years?” Probably not. but there 
is some reason to think that our 
posterity may. Two things have 
stimulated the discussion of 
longevity lately and toe means 
to attaining iL One is die fact 
that many more authenticated 
cases of extremely long life 
among contemporary men and 


women have been made known, 
than in any similar period in the 
past; the other is the reported', 
discovery of various therapeut- 
ic means of rejuvenation. Re- J >» 
puted to be toe oldest man in the ' >• 
world, “Uncle Johnny” Shelf, 
died in Kentucky last month, at ! 
134. Until the end he is said to', 
have been in complete posses- 
sion of his faculties. 1 

1947: Iran’s Princess . 

TEHRAN — Princess Ashraf 
Pahlavi, the Shah's twin sister 
and ban’s leading lady, is get-; 
ting ready to leave for a two-, 
month visit to America. “I want 
to travel aronnd your cities,” . 
she said, “and familiarize my-J 
with methods of social - 
work.” In foreign circles it is. 

believed that *e Shah’s sister is 

most Likely to use her influence 
°n behalf of Iran's efforts to get ' 
fi C . ,e ? a number of the’ 
United Nations Economic and 
Social Council. 


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INTERNATIONAL HERALD TRIBUNE, TUESDAY, AUGUST 12, 1997 


PAGE 9 


OPINION/LETTERS 


Nationalism 
jEmbraces Diversity 

j By Shashi Tharoor 


ainj \ 


""neFr, 


ets 


2 2: l; 
r 

■ '• L 




r Returns 


... . 




. _ v 


„ V 





XTEW YORK — A year 
i India celebrat- 

Sftsrmss 

Devc Gowda, then 
“e prime minister, stood at 
UK ramparts of New Delhi’s 
16thcentiiry Red Fort and do- 
uvered the traditional Inde- 
pendence Day address to the 
nation in Hindi, India’s “na- 
tional language.** 

Eight other prime ministers 
A I 5oL d0n f CMeUy the same 
* - r 8 tunes before, but what was 
jnnnsual this time was that 
{Mr. Deve Gowda, a south- 
i^nier from the state of 
iraataka, spoke to the ooun- 
m a language of which he 
jrcely knew a wont 
, Tradition and politics re- 
quired a speech in Hindi, so 
{he gave one. The words were 
{written out for him in his na- 
pve Kannada script, in which 
{they made no sense. 

I Such an episode is almost 
inconceivable elsewhere. 
Only in India could a country 
be ruled by a man who does 
not understand its national 
language. Only in India, for 
that matter, is mere a national 
language that half the pop- 
fy illation does not understancL, 

■ And only in India could this 

particular solution be found to 
enable the prime minister co 
address his people. 

One of Jnaian cinema's 
finest singers, K. J. Yesudas, 
sang his way to die top of die 
Hindi music charts with lyrics 
ip that language written in foe 
Malayaiam script for him. To 
see die same practice elevated 
to the prime ministe rial ad- 
dress was a startling affirm- 
ation of In dian pluralism. 

1 We are all minorities in In- 
dia. A typical Indian — a 
J ‘ Hindi-speaking Hindu man 

" " ;; from the Gangetic plain state 

... y of Uttar Pradesh — might 

... |{ cherish the illusion that he 

!' represents the “majority com- 

"7 - fnunity.” But he does not 

• .< i ' 7 As a Hindu he belongs to 
. 7 the faith adhered to by about 

77 82 percent of die population, 

but a majority of the country 
[r . does not speak Hindi, a ma- 
jbrity does not hail from Uttar 
Pradesh, and if he were vis- 
0 iting, say, the state of Kerala, 
he would discover that a ma- 
jority there is not even male. 

' Eveo -_-his. Hmdnisro is 
no %u?iramee -^of majority- 
hood, because his caste auto- 
matically places him in 
a minority as well. 

‘ If he is a Brahmin, 90 per- 
cent of his fellow Indians 
are not; if he is a Yadav (one 
6f the intermediate castes), 
g5 percent of Indians are 
not, and so on. 

Or take language. The con- 
stitution of India recognizes 17 
languages today, but in fact 
there are 35 Indian languages, 
each spoken by more than a 
million people. And these are 
languages with their own 
scripts, grammatical structures 
mL and cultural assumptions. 

“ ■ No language enjoys major- 
ity status in India. T hanks 
in part to the popularity of 
Bombay’s cinema, Hindi 
is understood, if not always 
tall spoken, by nearly half 
die population of India, but 
it is in no sense the language 
of the majority. 

Ethnicity further compli- 
cates the matter. Most of 
the time, an Indian’s name 
immediately reveals where 
he is from and what his moth- 
er tongue is. When we in- 
troduce ourselves we are ad- 
vertising our origins. 

■* Despite some intennar- 

riage among the elites in the 

toeffitts, Indians still largely 
remain endogamons. and 
a Bengali is easily distin- 
euishea from a Punjabi. 

Such differences among 
Indians often are stronger 
than what they nwy ha^ 
common. A Brahmm from 
Karnataka stares hwHmdu 
faith with a Kimm from 
bar but the two diverge com- 
pletely when it comes to ptys- 
jed appearance, dress, social 

oust^TftK^, language and 
P °^'S 1 ^ a Tamil 

f, r nn » in commtm wiin a 
Tamil Christian 
than with, say, 

ana with whom bfjcrmally 


< ’• I 


kind, and Hinduism — a 
religion without a national 
organization, established 
church or ecclesiastical 
hierarchy — exemplifies our 
diversity more than our 
common cultural heritage. 

Indian nationalism is the 
nationalism of an idea. 

This land apposes no nar- 
row conformities on its cit- 
izens: you can be many things 
and one thing. You can be a 
good Muslim, a good Keralan 
and a good Indian all at once. 

So the idea of India is of 
one land embracing many. It 
is the idea that a nation may 
accommodate differences of 
caste, creed, color, culture, 
cuisine, costume and custom, 
and still be a nation — so long 
as democracy ensures dial 
none of these differences are 
decisive in determining an 
Indian’s opportunities. 

Our founding fathers wrote 
a constitution that gave pass- 
ports to their ideals, but violent 
secessiomsm has plagued sev- 
eral bonier stales, like Assam 
and Punjab, as some minority 
groups have sought to subtract 
themselves from the Indian 
ideal on religious, regional or 
ethnic grounds. 

Some of these troubles 
continue, but in a land 
of minorities, no struggle 
affects all Indians. The power 
of electoral numbers has 
been able to lessen caste 

itismniinatin n 

Indeed, last month, for 
the first time, an “untouch- 
able** was elected president 
of India. 

For the rest of the world, 
wary of the endless multiplic- 
ation of sovereignties, hesit- 
ant before the clamor for self- 
determination echoing in a 
hundred different dialects, 
anxious about murderous 

new f undamentalisms and 

unconvinced that every sub- 
nationality is worthy of sup- 
port, there may be something 
to be said far the Indian idea. 

If the overwhelming ma- 
jority of a people share the 
political will for unity, if they 
wear the dust of a shared his- 
tory cm their foreheads and 
the mud of an uncertain future 
on their feet, and if they real- 
ize they are better off living in 
Kozhikode or Kanpur dream- 
ing die same dreams as those 
in Kolhapur or Kobima, a na- 
tion exists, celebrating di- 
versity and freedom. 

That is the India that 
has emerged in die last 50 
years, and it is well worth 
celebrating. 

Afr. Tharoor is the author 
cf “ The Great Indian NoveC 
and “India: From Midnight 
to the Millennium .** He con- 
tributed this comment to The 
New York Times. 


Worried About All Those Divorces? 
Tighten the Knot and Feel Better 


B OSTON — By Aug. 15, any 
blushing bride and groom 
heading out for a marriage license 
in the Great Stale of Louisiana is 
going to face a choice. 1 don’t mean 
a choice of spouse, since that de- 
cision is presumably over. I mean a 
choice of marriage. 

Louisiana is about to become the 
first state in America that offers 
two distinct marriages. These are 
what the people thereabouts have 

MEANvmj: 

taken to calling “regular'' or 1 ‘high 
test.” The options, however, may 
have less to do with the mileage 
than with the exit ramp. 

Under die regular rnamage, as it 
now exists almost everywhere, a 
married couple is entitled to a no- 
fault divorce after a six-month 
separation. But under the brand 
new high-test marriage or what's 
really called a covenant marriage, 
the divorce rules are more strin- 
gent- The couple would have to be 
separated two years or prove, for 
example, that one spouse was an 
adulterer or a felon or an abuser. 

The theory behind the covenant 
marriage is a popular one. It's 
the idea that something has gone 
awry since the horse -and -buggy 
days when people got hitched 
for life. That today couples split 
as soon as the first bump takes 
off the first hubcap. 

Tony Perkins, the Louisiana Re- 


By Ellen Goodman 

publican who is stale representa- 
tive and author of the bill that 
passed with one lone dissent, 
compared marriage to buying a 
uew car. In an analogy his wife 
must adore, he said: “Making 
those payments for the first 12 
months aren’t a problem. But you 
get into (he third, fourth and fifth 
year of making those payments, the 
car, you know, is getting a little old 
and you're not so excited about 
making those payments.” 

Under this auto-marital theory, 
no-fault divorce makes it too easy 
10 give up the car payments — or 
at least to trade them in for child 
support. So Louisiana is road- 
testing the belief that government 
can alter the rate at which marriage 
ends by altering the terms under 
which it begins. 

I must confess that I am some- 
what intrigued by this experiment. 

The consumer reporter in my 
sou) can’t wait to see whether reg- 
ular or high-test marriages handle 
differently on the highway of life. 

The gossip columnist in my soul 
can’t wait to see the couples at 
the registry facing a choice 
between what appears to be great 
or greater commitment. 

But I have trouble with the un- 
derlying notion that the people who 
get divorced got married too 
casually. Four years ago, two psy- 


chologists from die University of 
Virginia asked abom-to-be-weds 
about their perceptions and expec- 
tations of divorce. The couples 
knew the divorce rate was at 50 
percent but assessed their own 
chance of divorce at zero percent 
The psychologists humorously 
named their paper, “When Every 
Relationship Is Above Average.” 
But they were on to something. Few 
people vow “till death do us part” 
while thinking about getting out 
The covenant marriage man - 
dates premarital counseling. But 
even Barbara Whitehead, the 
author of “The Divorce Culture.” 
acknowledged ruefully: “It’s 
impossible to get them to contem- 
plate troubles, adversity, conflict, 
especially if it's their first marriage 
and they are fairly young. It’s not 
a teachable moment.** 

I am not convinced that a cov- 
enant marriage will make a dif- 
ference. The idea that a more strin- 
gent divorce law strengthens a 
marriage is wholly unproved. 

Amy Wax, a law professor ar the 
University of Virginia, said that 
there had been no sophisticated 
research about what she called 
“marital bargaining in the shadow 
of divorce.” But even as an ad- 
vocate fra- marriage, Ms. Wax 
worried that newlyweds would 
“bind themselves by more strin- 
gent terms and live to regret it when 
Dr. Jekyll turns into Mr. Hyde.” 
We don’t have to get to Mr. Hyde 



before we see something odd here. 
Are we trying to shore up the in- 
stitution of marriage by creating 
different classes of marriages? 

In America we alnrady have 
long-term cohabitation that 
becomes common-law marriage. 
We have new laws for domestic 
partnerships. 

Are we actually downgrading 
“regular” by creating a premium 
product? 

What does this say about mar- 
riage as an institution with a single 
set of rules and supports that we all 


liabliftfertpTlirr 

know and accept? It says that 
Americans want both commit- 
ments and options — ties that bind 
and freedom of choice. 

Is this a conflict for the law to 
resolve? At the moment, the 
Louisiana high-test marriage is 
only two years stricter than the reg- 
ular one. If this doesn't keep people 
off the exit ramp, what comes next? 
Ten years? A “leaded” marriage? 

For anyone getting a license in 
Louisiana, may 1 suggest that you 
keep both hands on the wheel. 

The Boston Globe. 


LETTERS TO THE EDITOR 


Shopping Freedom 

Regarding “Heading for 
the 24-Hour Business Day " 
(My 21): 

It seems that many Euro- 
peans remain united in one 
belief: The American way of 
life leaves much to be desired 
while the European way of 
life is vastly superior. 

Before the implementation 
of new store hours here in 
Germany, I tad never had the 
“pleasurable, social” shop- 
ping experience described by 
Anthony Calabria ( Letters , 
Aug. 7). I spent most of my 
time on Saturdays standing in 
line at the local supermarket 
or battling through crowded 
store aisles. 

The new hours give con- 
sumers the option to do their 
shopping at the end of die 
workday, leaving them free on 
weekends to enjoy die high 
quality of life that Europeans 
so sanctimoniously point out is 
lacking in the United States. 

Of course there are prob- 
lems with the 24-hour busi- 
ness day, including an in- 
creasing number of part-time 
jobs that offer little pay and 
benefits. But isn’t it possible 
to offer consumers all over 


Europe more flexibility, as is 
now being attempted in Ger- 
many? What Mr. Calabria 
fails to understand is that cus- 
tomer convenience is a large 
pan of quality of life. 

PAMELA KIRSCHT. 

Hamburg. 

It is common in Europe to 
disparage shopping hours in 
the United States, but I cannot 
understand why. Have you 
never come home from a long 
day at work only to find the 
larder empty and the grocery 
store closed? Have you never 
needed medicine for your 
child and found the pharmacy 
closed? Every day as the clock 
approaches the 6:30 P.M. 
store closing time, I worry, 
“What might' be missing 
today that I might n&dT’"" 

And there can be 
something almost magical 
about entering a vast, well-lit 
U.S. supermarket at 1 A.M. 

WILLIAM J. LARSON. 

Nyon, Switzerland. 

Shopping hours are merely 
a reflection of an over- 
regulated lifestyle on the 
Continent Countries that 
don’t provide consumers with 
extended shopping and bank- 


ing hours are denying citizens 
the fundamental right to con- 
trol their own lives. 

JORG DIETZEL. 

London. 

On Military Secrets 

Regarding “Military Lied 
About Nature of UFOs, CIA 
Reports" (Aug. 4): 

How else would the mil- 
itary have concealed a secret 
program at a time when Amer- 
icans were so tenor-struck by 
the idea of a nuclear attack that 
they built underground shel- 
ters in their backyards? 

BEROL ROBINSON. 

Meudon, Fiance. 


Asia Not to Be Feared 

. Regarding ” American 

Fear of the Rise of Asia Is 
Dangerous (Opinion, July 
24 ) by David J. Rothkopf: 

Mr. Rothkopf is himself 
guilty of “scaremongering” 
(his own word). 

First, he fails to remember 
that American apprehensions 
about the activities of China 
are caused by China's own 
actions, whether it is harsh 
repression in Tibet, arms and 
nuclear sales to Iran and 
Pakistan, military intimida- 
tion of Taiwan or the 
strangling of freedoms in 
Hong Kong and China itself. 


Second, Mr. Rothkopf 
throws all of Asia on one big 
heap and pretends that the 
United States “fears the rise 
of Asia.” Nothing could 
be further from the truth. To- 
ward most other nations — 
aside from China and Taiwan 
— the United States has fol- 
lowed a balanced and nu- 
anced policy. 

U.S. policy toward China 
has — if anything — been too 
accommodating. A firmer po- 
sition, maintained over a 
longer period, would have 
more positive results. 

But U.S. policy toward 
Taiwan has been too standoff- 
ish. Taiwan has achieved a 


free and democratic political 
system and should be accepted 
as a new member of the in- 
ternational family of nations. 

If the basic principles of 
democracy and self-determi- 
nation enshrined in the 
United Nations Charter mean 
anything, the United States 
and other Western nations 
should help make it dear 
to China that the only way 
to resolve the problem would 
be to accept Taiwan as a 
friendly neighbor. 

ME! -CHIN CHEN. 

Chevy Chase, Maryland. 

The writer is the editor of 
Taiwan Communique. 




1V 1 


•' 1 

- 


4 £*- 


tjSSSSP*- 

ttevtrv nature of tbp coufltty- 
It is a Choice 

by India’s geography, real 

fleeted mitsethrK^iy^ 

Indian nationalism is a 

anSS indeed « 

hacked by the 

IWTI'i snoi ^X *d 

nicity — Indian B pfLyg 
Pmyahk- for ’ with 

more in cofl y^ kisian is 
a Bangladeshis 
"than with other 

And it is not based <*» 
ligion. We are home to 
cveiy faith known to man 


KCR 


Si West Rail 


bmhbe&h; : 


Qualification of Consultants 

Detailed Design and Supervision Services 

The Kowloon-Canton Railway Corporation (KCRC) intends to 
commence detailed design for Phase 1 of West Rail, a 305km, 
double-tracked, electrified railway system serving Hong Kong’s 
Northwest New Territories providing passenger services, with a 
maintenance depot and 9 stations. 

KCRC proposes to appoint qualified consultants to perform detailed 
design for the project for the following packages: 

■ DD-200 Yuen Long Section 

■ DD-210 Tuen Mun Section 

■ DD-300 Tsuen Wan Section 

■ DD-400 Sham Shui Po Section 

■ DR-600 West Rail Depot and Station 

The work will include civil/structural, architectural, mechanical and 
electrical design services, and administration and supervision of the 

Works. 

Consultants will be required to progress the design from a preliminary 
5taqe that is approximately 25% complete to a final design to allow 
cwtftruction of the Worts* The Consultant will also be required to 
assist in the preparation of construction contract documentation. 

More detailed descriptions of the work activities will be included in 
foe Pre-qualification Questionnaire. 

Renuests for a Pre-qualification Questionnaire should be made on 
enmnatw letterhead by facsimile to the Kowloon-Canton Railway 
tZmm Manager at (852) 2601-2671. 
Requests for questionnaires received fry the Corporation after 22 
August 1997 may be too late for consideration. 

KCRC wQI, at its sole discretion, evaluate responses to foe Pre- 
nualification Questionnaire. Those organisations '^hTC RC 
determines to be suitably qualified will be invited to tender. 

No communications in response to this advertisefwnt wiU be accepted 
[J, Sc^ept by facsimile at foe above noted tomite number. 


. , not this invitation of expression 

- 

n-roccarv oart of the phummS prore®, a™* 
ISSStarTof Phase I of West Rail will be subject to the 
VZg Kong Spedd Administrative Region 

fftSwLpnt to around September 1931 


Kowloon- Canton Railway Corporation 



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Monday’s 4 P.M. Close 

NaSanwHte prices not refledlng late trades elsewhere. 
TteAssoctofetfPmss. 


INTERNATIONAL HERALD TRIBUNE, TUESDAY, AUGUST 12, 1997 


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Hcralb^lKErtbunc 

BUSINESS/FINANCE 



TUESDAY, AUCUST 12, 1997 


PAGE 11 


‘Cubes’ Vie* 
With fi Caves ! 
lu Offices 

Debate s Fault Line: 
Microsoft vs, Intel 


By Steve Lohr 

— Wfw 1 York . Times Sender 

NEW YORK - Bill Rouady. 32. a 
programmer, speaks of his 
craftin the accepted vernacular of mod- 

Te ? mwo ^ cooperation 
^ explains, are 

essential ingredients of success. 

This open style of work, insists Mr. 
Kouady. an employee of Netscape 
Communications Corp.. is best done in 
an open setting — where workers are 
separated only by low partitions in- 
stead of being walled off behind dosed 
doors in individual offices. 

The programming code we write 
has to work together seamlessly, so we 
should work together seamlessly as 
well.” be said. 

In corporate America as a whole, 
these are mainstream views. But in the 
high-technology world, from Silicon 
Valley to Seattle, Mr. Rouady 's com- 
ments are fighting words. It is a con- 
tentious issue, with beliefs fervently 
held on both sides. Pick your work- 
place: open plan or enclosed office. 

Phrasing the debate another way, 
it’s cube vs. cave. 

It is the issue that splits the computer 
industry's most powerful partnership, 
the so-called Wintel duopoly, named 
for Microsoft Corp.’s Windows soft- 
ware and Intel Coip.’s microchips. 

Intel is unflinchingly cubist, a stance 
the company adopted shortly after its 
founding in 1968. Its open-plan layout 
was embraced in the name of team- 
work and egalitarian values, as an ex- 
plicit rejection of the old-line hierarchy 
associated with traditional corpora- 
tions. 

Intel has no executive dining rooms, 
no reserved parking places arid no ex- 
ceptions to the cubes-for-all policy. 
Because of growth, the crowding at the 
company’s Santa Clara, California, 
headquarters has increased, so cube 
sizes have shrunk recently, including 


Office Gossip: Which Is Better? 


Is your office a cube" in a large communal space or a “cave* that affords 

u Proponente of eac h hold strong views about which is best-suited tor 
aoing business. Here are some arguments for each style. 


Productivity 


Communication 

i» — « 


Real work requires real 
thinking. And an office is 
the place to think. 


if you want to talk, to 
someone, you can go find 
the person. Or try the 
phone or E-mail. ■ 

An office and a door says 
you're someone special. 


We respect an individual's corporate culture 


A person's office is his or 
her castle, as tasteful or 
tacky as its occupant. 



Great for gossiping and 

intimate conversations. . f ^ ^ 


k) Socializing 


Offices are for wimps. 
Even Intel's Andy (“Only 
the Paranoid Survive") 
Grove works in a cube. 

A real advantage for 
cubes. Just stand up and 
wave your hands to 
attract attention. Or shout 

Anybody who needs an 
office for status is 
pathetic. 

We have a culture of trust 
and our workers actuatty 
like each other. 

Workers must respect the 
sensibilities of others, but 
also allow for group 
design projects. 

Great for overhearing 
gossip fodder. It’s the 90s: 
no intimate chat on 
company time. 


the one occupied by Andrew Grove, 
Intel’s chairman and chief executive. 

“It was' done to maintain the con- 
sistency of egalitarian standards," said 
Patricia Murray, vice president for hu- 
man resources. “If the rank-and-file 
has to do with less temporarily, so do 
the executives. There’s no mahogany 
row at InteL” 

Microsoft's corporate campus in 
suburban Seattle, on the other hand, is 
inhabited by unrepentant “cave" 
dwellers. The company’s bias toward 
private offices stems from the belief of 
its founders. Bill Gates and Paul Allen, 
that software programmers work best 
in the solitude of individual offices. 

“Every time we revisit the issue of 
having open-plan offices, it is roundly 
rejected," said Nick MacPhee, Mi- 
crosoft's general manager of real estate 
and facilities. “The reaction borders 
between horror and hysteria.” 

Yet the open-plan office — ranging 
from Mr. Rotiady’s quirky digs. 


spanned by a replica of the Golden 
Gate Bridge built with soda cans, to the 
look-alike cubicles satirized in the car- 
toon strip Dilbert — continues to 
march through corporate America. An 
estimated 40 million Americans, 
nearly 60 percent of the white-collar 
work force, now work in cubes. 

The cubist ranks are growing, ac- 
cording to surveys by the International 
Facility Management Association, a 
trade group for office planners and 
designers. 

One of the bastions of closed-office 
culture. International Business- Ma- 
chines Corp., will fall next month 
when it opens its new headquarters in 
Arnionk, New York, which is to be 
more than 90 percent open-plan. 

There is some evidence of a soften- 
ing of positions on both sides of the 
cave-cube divide. Eric Richert, director 
of workplace effectiveness at a private- 

See CUBE, Page 15 


11 Yamaichi Executives Resign 

Tokyo Brokerage’s Shares Up 13 % After Step Tied to Payoffs 


ComptlnlK Oir Huff Fmi £Ufua bn 

TOKYO — The chairman, president 
and nine other senior executives of Ya- 
maichi Securities, one of Japan's top 
brokerage houses, stepped down from 
their posts Monday over a scandal in- 
volving payoffs to a racketeer. 

Shares of Japan’s fourth biggest 
brokerage rose 13 percent after “the 
move, which followed similar manage- 
ment shuffles at Dai-Ichi Kangyo Bank 


pan’s biggest brokerage. 

All three companies are suspected of 
making illegal deals with Ryuichi 
Koike, who is in jail. 

Yamaichi also said it would reshuffle 
and slim down its board of directors as 
pan of a management overhaul in re- 
sponse to the scandal. The decisions 
were made at a special board meeting. 

Despite their resignations, Yamai- 
chi’s chairman. Tsugio Yukihira; its 
president, Aisuo Miki, and the other 
executives will stay on as company ad- 
visers. Such moves are common at Jap- 
anese companies as a way of showing 
contrition for scandals. 


Two senior managing directors were 
named to the top spots: Shoji Saotome 
replaces Mr. Yukihira as chairman, and 
Shohei Nozawa succeeds Mr. Miki as 
president. 

“Our firm is determined to make a 
clean break with the negative legacy of 
(he past," Mr. Nozawa said. 

Yamaichi said in a statement that it 
felt “deeply responsible’ * for the loss of 
public trust in the company and in- 


close some of their most profitable di- 
visions for five months — the harshest 
punishments ever handed down. 

But analysts said that compared with 
a sweeping management shake-up an- 
nounced by Nomura in late April. Ya- 
raaichi’s moves did not impress. 

The selection of senior managing di- 
rectors, both 59, to replace the chairman 
and president “looks like the new man- 
agement will only pursue strategies 




Yamaichi, considered die weakest of 
Japan's “Big Four" brokerages, is sus- 
pected of illegally funneling about 
$679,000 in 1995 to Mr. Koike to com- 
pensate him for trading losses. 

Japanese corporate racketeers, called 
sokaiya, commonly buy stock in target 
companies and threaten ro raise em- 
barrassing questions if not paid off. Do- 
ing business with them is illegal but 
commonplace in Japan. Prosecutors 
raided homes of Yamaichi executives as 
well as the company's headquarters two 
weeks ago to seize evidence. 

Last month, the Finance Ministry 
forced Nomura and Dai-Ichi Kangyo to 


said an analyst at a foreign securities 
house. 

Even without the scandal, Yamaichi 
faces a hard time securing its position 
amid financial deregulation, including 
liberalization of commissions from 
srockbrokerage and the entry of com- 
mercial banks into the market. 

In the April-June period, when cor- 
porate customers voluntarily suspended 
securities business with Nomura, Ya- 
maichi failed to attract new customers 
and posted 5.43 billion yen (S47.2 mil- 
lion) in parent current losses. Yamaichi 
shares closed Monday in Tokyo at 259 
yen, up 30. (AP. Reuters, Bloomberg l 


U.S, Bid Lifts U.K. Car-Rental Firm 


Ctwtptird by Our Suff Fn-m Ovfhih lin 

LONDON — The American billion- 
aire Wayne Huizenga made his firsi 
inroad into the European market Mon- 
day. agreeing to buy EuroDollar Hold- 
ings PLC for about £95 . 1 million ($ 1 50 
million). 

Mr. Huizenga's Republic Industries 
Inc. offered 190 pence a share for 
EuroDollar. the second -largest car-rem- 
al chain in Britain, a 60 percent premi- 
um to EuroDoliar's closing price Fri- 
day. EuroDollar’s shares jumped 69.5 
pence to close at 188. 

Mr. Huizenga, the former chairman 
of Blockbuster Video, who has bought 
about $3.4 billion of U.S. car-rental 
companies in the past year, promised 
more acquisitions overseas, where 
growth prospects are good. In Europe, 
for example, the market now yields only 
about $5 billion in annual sales, com- 
pared with $14 billion in the United 
States, because only about half as many 
European adults rent cars each year. 

“EuroDollar is close to being the 


jewel in die crown as far as Europe is 
concerned," said Geoff Corbett, man- 
aging director of Republic's European 
car-rental division, now composed of 
the U.S. -based Alamo and National 
rental businesses. “It's a tremendous 
opportunity for us in terms of our global 
expansion into the car rental in- 
dustry." 

Mr. Corbett said that he saw no need 
for staff cuts or restructuring at 
EuroDollar. 

“It’s a very tightly managed, well- 
run company," he said. “Management 
Is going to stay in place, and we don’t 
see any surplus fat or cutting to be done 
in this organization.” 

Republic’s offer comes almost five 
months after the Belgian car dealer 
d'leteren S A sold a minority stake in its 
Avis Europe PLC unit, the largest car- 
rental company in Europe and EuroDol- 
lar’s principal rival in Britain. 

“We’ll see a kind of concentration, 
and only three or four big guys will 
survive,” Gert de Mesure, an analyst 


with Delen & Co., said. “That's im- 
portant — you spread your fixed costs 
over more volume, and margins can 
explode." 

Avis Europe controls about 1 5 percent 
of the UX. market, which has about 
£730 million in annual sales, while 
EuroDollar is close behind with 14 per- 
cent. EuroDollar operates 110 U.K. 
branches. It had sales of £107.4 million 
and profit before tax of £8.3 million in its 
latest financial year. 

Mr. Huizenga invested in Republic, 
becoming chairman in 1995, the year 
after selling Blockbuster Entertainment 
Corp. to Viacom Inc. He had built Block- 
buster into the largest chain of video- 
rental stores in the United States. 

At Republic, Mr. Huizenga led a push 
into the auto-rental and sales industry, 
rapidly transforming a company once 
focused on the waste-management and 
security businesses into the largest U.S. 
new-car dealer and the nation’s second- 
largest car-rental company. 

( Reuters ', Bloomberg ) 


Il1:l r:\ iMTM 1 


STOCKS 


PRIVATE BANKING 


Asian Phone Stocks Skid on U.S. Move 


Bloomberg Ne 

S INGAPORE — Shares of Asian 
telecommunications companies 
tumbled Monday after U.S. reg- 
ulators approved a plan to slash 
the amount that American long-distance 
companies pay to complete telephone 
calls to other countries. The Federal 
Communications Commission’s new 
call-completion rules, which it approved 
last week and which are to take effect 
Jan. I, are likely to hit Asia’s phone 

monopolies and quasi -monopolies hard. 
These companies have traditionally re- 
tied on inflated international rates to 
-subsidize domestic calls and pay for the 
development of their phone networks. 

Among Asia’s biggest losers could be 
Indonesia's PT Indosat, Philippine Lone 
Distance Telephone Co., India's Videsh 
Sachar Nigamin and Pakistan Telecom 
'Corp. The ruling also is likely to * ‘affect 
SingTel and all the other telecom compa- 
nies," said Lucas Yeoh, a fund manager 
at Commerzbank Asset Management 
Shares of Singapore Telecommuni- 
cations Ltd. fell 20 cents, or 7.4 percent, 
to close at 230 Singapore dollars ($ 1.69). 
PT Indosat, the larger of Indonesia’s two 
international phone companies, fell 275 
rupiah, or 3.7 percent, to 7,150 rupiah 
($2.76). while PT Telkom. Indonesia s 
largest phone company, fell 175. or 4.55 
nercentT to 3.675. Telekom Malaysia 
Bhd.’s shares fell 333 percent, to 8.70 
ringgit ($3,281. down 0.30. 

Although U.S. regulators may have a 
difficult time forcing other gov**®- 
meriis and companies abroad to cut back 
off a popular See of revenue, U can 


withhold call-completion payments 
from a non-U .S. monopoly that does not 
comply with the rates, analysts said. 

Officials of the U.S. commission said 
it would determine how to enforce the 
rules on a case-by-case basis. 

“There will be more margin erosion” 
for SingTel, said AJayne Wong, analyst 
at G.K. Goh Research. SingTel gets 
about $40 million more from the United 
States than it pays out to complete calls 
between tfaq two countries, Mrs. Wong 
said. Under the new system, the U.S. 
settlement rate for a call completed by 
SingTel would fall to 15 cents from 45 
cents. The fall in SingTel. Singapore’s 
largest stock in terms of marker cap- 
italization, led Singapore’s benchmark 
stock index lower by 50.06 points, or 
2.57 percent, to 1,893.86. 

If settlement rates are cut, “it would 
also follow suit that tariffs come 
down,” Mrs. Wong said. 

SingTel shares already were reeling 
from the impact of greater competition, 
which is expected to hurt margins. The 
stock has fallen 22 percent this year. 

The government recently said unex- 
pectedly that it would oner more li- 
censes for providers of basic phone ser- 
vices in April 2 002. It is already 
choosing one or two more such pro- 
viders to start operations in April 2000. 

The company also faces growing 
competition in the cellular-phone and 
paging-services market. 

The Indonesian phone Companies’ 
American depositary receipts, which 
rumbled Friday on news of the U.S. 
ruling, extended their losses Monday. 


Telkom’s American depositary receipts 
closed at $26.75, down $1,625, while 
Indosar’s ADRs were down 68.75 cents, 
at $273125. 

Budi Prasetyo, Indosar’s general man- 
ager for investor relations, said Indosat 
was not concerned about the U.S. move, 
saying the company had a binding agree- 
ment with AT&T Corp. through 1999 on 
call-completion rates. The agreement, 
which calls for the rale to fall to about 40 
cents a minute by the end of 1999, will 
not be revised, Mr. Prasetyo said. 

The U.S. agency’s target, however, is 
for rales charged by Indonesia and other 
countries it defines as “middle in- 
come” to fall to 19 cents a minute. 

Mr. Prasetyo said Indosat had little 
room to reduce the rates because of the 
high charges it paid to complete calls 
domestically to Telkom, which has a 
monopoly in domestic telephone ser- 
vice. These charges are “beyond our 
control,” he said. 

Although non-U.S. telephone compa- 
nies, under the American commission's 
also would pay the same reduced rates to 
U.S. companies when they complete calls 
to the United States, more calls of longer 
duration originate from America, and U.S. 
companies end up paying about $5 billion 
a year to complete international calls. 

But SingTel, which on a global level 
pays out more than it receives for the 
completion of international calls, would 
be likely to gain if the lower rates were 
adopted worldwide. 

“Overall, if the rates drop, if we take 
it as a whole, it will not be disadvant- 
ageous,” SingTel said. 


CURRENCY & INTEREST RATES 


Aug. 11 

Cross Rates M u. a tom 

s L ^ aiis - — i-® 5 * uw i- 800 * m . 

Amftenktti MB ** S X' 18225 — B315 H3JI TtSB K4TC 

S2* 317 «WS ^ (SJ S S urn lies* t ns rim* 

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a-——* 

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Ubid-Ubor Rates 


Swiss Freadi 

Dolor D-Mnrt Franc Storing Franc Yen ““ 
j-mortft 5*-S» 3w-3» 1fe.l* 7-7VJ, 3VU-3* * 

6- month sy - SVk, 3W-3Mi in»-m 7Vii-7Vi» 3*-3W 
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Key Money Rates 


Other Dollar Values 


Gmwqr 
Argent peso 
JUrtrefianS 
Antrim xk. 


Cfitoctopni 
Czech konort 

Damn mane 

Fk.MW 


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Hong-tonm 
Indian rupee 
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port, escudo 

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siog.s 


comm 
S. raws 

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UoRad States 
Discount rate 
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Federal tan* 
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l«MtayCP(tertara 
3 month Treasury 

1- yaarTraamv W 

2- y*0rTf*asw?oa 
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636 636 

664 664 


|£JJ«Cyiidi3(taiflrM 5-13 5.13 



SMMT 6KW ^ 
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looser GOT 

Franco 

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^ 0,tl - A2A. PJ4. Ch'ge 

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NewYei* 33020 33120 +1 DO 

(X5. (foMoraperwnca London official 


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We’re not just on the map. 
We’re all over it 


It’s not only our vast worldwide 
network that keeps us at your 
side at all times. 

It’s our total commitment to serving 
your unique demands, wherever 
you may be. 

From the time we opened our 
first office in Switzerland in 1876, 
Credit Lyonnais has earned an 
enviable reputation for Private 
Banking based on dialogue and 
personal relationships. 

The founder of Credit Lyonnais, 
Henri Germain, expressed it most 
succinctly when he 1 created the 
bank’s motto: 



■Mi « 


“Business is people, not just 
figures'. 

This has been the very essence 
of our banking philosophy from 
generation to generation. 

We listen well to our clients’ pri- 
orities as we help them navigate 
diverse and fast-changing finan- 
cial markets. Perhaps that is why 
today we manage more than 
9 million private accounts. And 
why we are often cited as a world 
reference bank for the private 
customer. 

But there is yet another dimen- 
sion to a successful banking 
partnership. 

Your banker must make 
sure you get where 
you want to go. 
Providing innovative 
solutions and insight- 
ful answers through 
indepth resources and 
experience in the 
world’s leading mar- 
ketplaces. 



Our Geneva subsidiary, specialized 
In Private Banking since 1876. 

Credit Lyonnais’ Private Banking 
network can always put the finan- 
cial technology and expertise you 
need at your finger tips. Precisely 
when you need it. 

The combined strength of these 
two dimensions - close, trusting 
partnerships and vast global 
resources - creates something 
unique in Credit Lyonnais Private 
Banking. 

Let’s talk 


CREDIT LYONNAIS 


Switzerland: Geneva tel 41 22/705 66 66 - Headquarters for Credit Lwnnais International Private Banking 
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Hong Kong tel S52/28 02 28 88 » Singapore tel 65/535 94 77 


L 







PAGE 12 


INTERNATIONAL HERALD TRIBUNE, TUESDAY, AUGUST 12, 1997 


THE AMERICAS 


■* Investor’s America 



1. Conspiracy Theoiy 

( Warner BrosJ 

SlMnflfion 

2- Air Fora* One 

(Cotumbta Pictures) 


3. Spawn 

(New Line Cinema) 

S9.1 raitHon 

4. GengeoOte Jangle 

(Watt Disney) 

ttSmiDon 

S. Men in Block 

(Colombia Plctom) 

S5.7ndUan 

A Pfdine Perfect 

(T»cnSdn CebsyFat) 

SSmBBan . 

7. Contact 

(WortmrBmsJ 

SUmOkm 

B. Hm to Be o Player 

(Polygram) 

S4.1 ndBon 

9. Air Bud 

[Watt Disney) 

SXSmUon 

lDJMhingtaljBse 

(ToKSatomPIclum) 

nimBon 


AMEX 



Monday's 4 PJ*. Close 

The top 300 most active stum 
up to ite do^ig an Wal Street 
The Associated Press. 


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Metrocall to Buy Paging Firm 


Dollar Resumes Climb 
Ahead of Price Data 


f 1 


Bloomberg News 

ALEXANDRIA, Virginia — 
Metrocall Inc. said Monday that it 
would buy ProNet Inc. fere about 
$243.8 million in stock and as- 
sumed debt, creating the second- 
largest U.S. paging company be- 
hind Paging Network Inc. 

Metrocall will offer 0.9 share 
fere each ProNet share, for a total of 
$73.8 million, and will assume 
$170 million in debt. The offer 
values ProNet shares at $5.40 
each, compared with Friday's 
close of $6. ProNet shares closed 
Monday at $5,125, down 87.5 
cents, while Metrocall shares fin- 
ished unchanged at $6. 

The acquisition continues a 
series of such moves in the paging 
industry, as companies try to com- 
pete with PageNet, the industry 
leader, which has more than 10 
milli on customers. Metrocall would 
have more than 4 million customers 
at the acquisition's scheduled com- 
pletion late this year. 


“This gives Metrocall greater 
scale and pats them in a stronger 
position to compete with PageN- 
et,” said JJ*. Mark, analyst at 
Rauscher Pierce Refsnes. “The 
laiger the player, the more op- 
portunities mere are.” 

News of the acquisition may 
have leaked out, analysts said, cit- 
ing the 28 percent rise in ProNet 
shares last week. 

“Last week, the stock price shot 
up,” said Kenneth Toudouze, ana- 
lyst at Principal Financial Secu- 
rities. “No doubt, somebody 
leaked this information.'’ 

Officials at ProNet and Met- 
rocall were not immediately avail- 
able to comment on last week's 
trading activity. 

Metrocall will issue about 12.3 
millio n shares in the transaction. 
ProNet has about 12.6 million 
shares outs tanding and agreements 
to issue 1.1 million additional 
shares. ProNet will appoint three 
directors to Metrocall s board, in- 


cluding its chairman and chief ex- 
ecutive, Jackie Kimzey, giving 
Metrocall a total of 14 directors. 

■ Fund to Buy Amscan 

CS Capital Partners II LP, an 
investment hind managed by 
Goldman, Sachs & Co., said it 
would buy Amscan Holdings Inc. 
for about $315 million in cash and 
assumed debt, Bloomberg report- 
ed from Eimsfhrrl, New York. 

Under the agreement, Amscan 
shareholders may choose either to 
receive $16.50 a share in cash or to 
receive $933 a share in cash and 
keep an interest in Amscan. 

The retained interest ‘ * would be 
equal to one share for every 
150,000 shares elected,” Amscan 
said. 

The purchase would provide 
Amscan, a maker of paper and 
plastic party goods, with $75 mil- 
lion in equity, $62 milli on of 
which is expected to be invested by 
GS Capital, the company said. 


Source: Bloomberg, Reuters 


Very briefly; 

• Labor Secretary Alexis Herman called on both sides in the 
United Parcel Service of America Inc. strike to meet with 
her and find a way to get “back to the bargaining table.” 
Federally mediated talks broke off Saturday between the 
company and the Teamsters union, sending the strike into a 
second week with no sign of movement on either side. 

• HFS Inc.’s unit Avis Rent a Car Inc. has agreed to boy its 
second-largest North American franchisee, First Gray Line 
Corp., for $195 million in cash. 

• Lockheed Martin Corp. will sell its commercial -electron - 
ics operation to Manufacturers* Services Ltd. of the United 
States. Financial terms of the deal were not disclosed. 

• PadfiCorp will take a third-quarter loss of $65 milli on 
because of a foreign-currency hedge position it took when it 
announced plans in June to buy a British company. Energy 
Group PLC, for $9.7 billion. 

• Rubbermaid Inc. shuffled key executives in an effort to fuel 

growth and improve its product innovation and marketing. 
Lany Porcellato, president of Rubbermaid Europe, will be- 
come president of Rubbeimaid’s Home Products unit in North 
America. Bloomberg. AFX. A P 


Weekend Box Office 

The Associated Press 

LOS ANGELES — “Conspiracy Theory” dominated the 
U.S. box office over the weekend, with a gross of $19.4 million. 
Following are the Top 10 moneymakers, based on Friday’s 
ticket sales and estimated sales for Saturday and Sunday. 


Reader’s Digest Calls In Ex- Chief 


Bloomberg News 

PLEAS ANTVILLH, New York 
— Reader’s Digest Association Inc. 
said Monday dud James Schadt had 
resigned as chairman and chief ex- 
ecutive after the failure of his at- 
tempts to diversify beyond publish- 
ing and reach new customers. 

The company said George Grime 
had come out of retirement to lead the 
publisher of Reader's Digest 


magazine until a permanent suc- 
cessor could be found. Mr. Gnme. 
68, who led die company through a 
decade of growth, will immediately 
replace Mr. Schadt, 59. 

Mr. Schadt 's attempts to transform 
the book and magazine publisher into 
a television and multimedia company 
as a way to woo a younger audience 
have been costly. Last month, the 
company halved its dividend and 


warned that fiscal 1997 earnings 
would be lower than expected. 

“This guy hasn’t exactly been 
what the market has been hoping 
for,” said Joe Hill, an analyst at STI 
Capital Management, which owned 
614300 shares in June. 

The stock, which had fallen 39 
percent since Mr. Schadt became 
CEO on Aug. 1, 1994, closed at $28, 
up $3,125. 


OmeAdbrOsrSa^Fnm Dapascha 

NEW YORK — The dollar rose 
Monday against most other major 
currencies as investors, confident 
about tiie strength of the U.S. econ- 
omy, looked to reports on inflation 
and retail sales for clues to whether 
the Federal Reserve Board would 
raise interest rates soon. 

“People see this as a good op- 
portunity to take in dollars,” said 
Ben Strauss, a currency trader for 
Bank Julius Baer. “Politically, so- 
cially and economically, the U.S. is 
just in a lot better shape than Europe 
and Japan at the moment” 

In 4 P.M. trading, the (foliar was 
at 116.175 yen, up from 114.825 


marks, compared with 1.8455 DM. 

The (foliar also was at 6.2805 
French francs, up from 6.2183 
francs Friday, and at 15273 Swiss 
francs, compared with 15097 
francs. The pound rose to $15900 
from $15875. 

The U.S. government is expected 
to report Wednesday that the pro- 
ducer price index rose 0.1 percent 
last month, after declining 0.1 per- 
cent in June, analysts said. On 
Thursday the consumer price index 
is expected to show a 03 percent 
rise, compared with a 0.1 percent 
increase in June. 

“If they show any hint that the 
inflation picture has turned toward 
the negative, we may have prob- 
lems," said Marcello Frustaci, a 
trader ax Daiwa Securities America. 

Investors watch for signs of ac- 
celerating inflation because rising 
prices eat into die value of fixed- 
mcome securities over time. That has 


not been a problem so far this yean, 
with the consumer price index rising 
at an annual pace of just 1.4 percent 

in the first half- • 

Wednesday’s retail-sales figure 
might get more attention than the 
price reports, traders and investors 
said, because it could signal a re- 
bound in consumer spending that 
could presage inflation. * 

Rising prices may cause the Fed 
to raise its target for overnight lend; 
fog rates between banks to tty to 
cool the economy. The federal 

FOREIGN EXCHANGE > 

funds rate was last adjusted in 


raised it to 55 percent from 
percent. - 

Last week, the dollat slipped 
amid some speculation that the 
Bundesbank might raise interest 
rates soon to boost its sagging cur- 
rency — the mark has dropped 6 
percent since July 1. Most analysts j 
however, are skeptical a rate in-* 
crease is imminent \ 

With the German economy only] 
slowly emerging from its five-yeaij 
slowdown and struggling to meed 
the budget deficit and debt limits! 
required for European economic; 
ana monetary union, “the feeling is) 
they won’t mke rates," said David! 
Becker, senior currency trader ad 
Bank Austria. t 

Also on Monday, Merrill Lynch! 
advised against investing fo| v 
Kenyan shilling instruments for the* 
short term because of concern about- 
political instability in the country. I 
( Bloomberg , Bridge News) j 


Blue Chips Post Gains, but Technology Shares Hold Back 


CompUnl ty Ora Staff From Daparha 

NEW YORK — Stocks posted 
modest gains Monday, with oil 
companies gaining while technol- 
ogy and drug shares were off, as 
investors registered some concern 
that the Federal Reserve Board 
might have to raise interest rates to 
contain inflation. 

The Dow Jones industrial average 
closed Monday at 8,062.11. up 
30.89, with declining issues leading 
advancers ty a lS-to-13 ratio on the 
New York Stock Exchange. 

The Standard & Poor's 500-stock 
index rose 3.46 to 937.00, but the 
technology-heavy Nasdaq Compos- 
ite Index fell 11.74 points to 
1586.78. - 


Stocks suffered their worst slide 
in more than six weeks Friday, as 
bond yields surged and the Dow 
ended with a loss of 156.78 points 
after having been down as much as 
210 points. Before Friday, there 
were nine drops of more than 100 
points in the Dow this year. In every 
case but one, the 30-stock average 
rallied the following session. 

1 ‘The tendency in this market is to 
sell into any kind of rally,” said 
Brian Daley, the head listed trader at 
First Albany Corp. in New York. 
“That's what I expect until you 
have further confirmation that the 
economy is slowing.” 

Investors will be watching reports 
on inflation and retail sales this 


week for clues on where interest 
rates are headed The government is 
to release figures on retail sales and 
productivity Tuesday, wholesale 
prices Wednesday and consumer 
prices Thursday. Signs that the eco- 

STOCKS 

nomy is growing too fast mig ht 
prompt the Fed to raise benchmark 
borrowing rates, which could hurt 
stocks by making iL more expensive 
for companies to raise money. 

Intel the most active stock in U.S. 
markets, fell on concern that its 
price was higher than justified by 
prospects for earnings. 

“Technology is susceptible to a 


correction because it’s run up faster 
than the market,” said Geoffrey 
Brod, a money manager at Aeltus 
Investment Management of Hart- 
ford, Connecticut Ascend Commu- 
nications, Apple Computer and Dell 
Computer all were lower. 

Oil stocks rose after Mobil 
Corp.’s rating was raised by a Mor- 
gan Stanley analyst Exxon and 
Chevron also gained. 

Coca Cola, which said Friday that 
third-quarter earnings would only 
slightly exceed year-earlier levels, 
fell after Morgan Stanley and Sa- 
lomon Brothos downgraded the 
stock. 

Drag stocks were down after 
Morgan Stanley downgraded them, ■< 


saying they were not expected toj 
outperform the market Pfizer. John-: 
son & Johnson, Warner Lambert! 
Schering-Plough, Lilly and Merck] 
were among the dediners. J 

Comcast shares rose. The com-) 
pany reported a smaller than-expec * 
ted loss for the second quarter on) 
gains in its cable systems, QVCj 
shopping channel and cellular tele-i 
phone businesses. j 

Nextel Communications felL Its) 
second-quarter loss widened to< 
$26 1 .6 million from $ 1 30 million as | 
an aggressive expansion of its wire-] 
less service increased operating and! 
selling expenses. Revenue climbed! 
76 percent to $256.6 million. - ■* 
•_ . Bloomberg rAP )* 


U. S. STOCK MARKET DIARY 


INTERNATIONAL FUTURES 



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INTERNATIONAL HERALD TRIBUNE, TUESDAY, AUGUST 12, 1997 

EUROPE 


PAGE 13 


Incentive’s Net Soars 
.On Sale of Shares in 
ABB and Electrolux 


, • r\, p &\J byOBrS*tfFron Kxpach a 

STOCKHOLM — Incentive AB, 
pne of the main investment compa- 
nies of the Wallenberg family of 
Sweden, said Monday that its net 

profit rose almost tenfold in the Just 

half after it sold shareholdings in the 
engineering company ABB AB and 
the household goods maker Elec- 
a troJux AB. 

T ■ Profit after taxes rose to 9.81 bil- 
jion kronor ($13 billion), on a 
sales that decreased 3 percent, to 
10.309 billion kronor, 
r The share sales represented part 
of a restructuring of Incentive’s ac- 
tivities, and financed the acquisition 


‘ ^ -ZJ 




9 


Pretax Profit 
Rises 73 % at 
Continental AG 


CmgUedbpOvr Staff Fmu Dbfatba 

HANNOVER, Ge rman y — 
. Continental AG said Monday 
that its pretax profit rose 73 
percent in the fim half and that 
the tiremaker expected a sig- 
nificant increase in net profit 
for the year. 

The profit increase to 208 
million Deutsche marks 
($111.5 million), which came 
on sales growth of only S per- 
cent, to S.3S billion DM, was 
due to improved efficiency and 
strong profit growth at its Con- 
tinental General 'll re division, 
the company said. 

Continental said last month 
that it would reduce annual 
costs by 35 million DM, in part 
through an agreement to in- 
crease the workweek at a fac- 
tory near Hannover to 38. 15 
hours from 375 hours. 

Continental also said Mon- 
day that the European Com- 
mission did not intend to block 
its planned venture with Mich- 
elin SA of France. Continental 
shares closed in Frankfurt at 
49.99 DM, down 1.89. 

(Reuters, Bloomberg) 


of Vivra Inc., a U.S. medical care 
company. The sale of half of In- 
centive’s holding in ABB AB. the 
Swedish co-owner of the Swiss- 
Swedish engineering company AB B 
Asea Brown Boveri Ltd., produced a 
capital gain of 8.5 billion kronor. 

Incentive said it would continue 
to focus the operations of the group 
on its core business of medicaf tech- 
nology through the further sale of 
various business. 

‘The strategic transformation of 
die group during the period was sub- 
stantial, resulting in a more stream- 
lined and focused structure, an im- 
proved financial position and a much 
stronger position in the core area of 
medical technology.” it said. 

Incentive acquired and merged 
Vivra, a U.S. dialysis-clinic chain, 
with Gambro AB in May, making it 
the No. 2 dialysis-services company 
in the world. 

Hie company also said it was 
investigating the possibility of list- 
ing Mooters AB, a leading maker of 
dehumidifiers and humidifiers for 
industrial use. Munters. which is an 
independent company within In- 
centive, has annual sales are about 2 
billion kronor. 

Incentive’s shares rose 32 kronor, 
or 457 percent, to 73i kronor. 

(Bloomberg. Reuters) 

■ Sales Lift MnnJksjoe’s Net 

Munksjoe AB said its first-half 
net almost tripled, to 192 million 
kronor, as the forestry company 
booked one-time gains from the sale 
of stakes in its units Ljungdahls AB 
and AB Cerbo and as sales rose. 
Bloomberg News reported. 

Forestry companies such as Stora 
Kopparbergs Bergslags AB and 
Georgia-Pacific Corp. of the United 
States saw their 1996 earnings col- 
lapse as pulp prices fell in 1995. The 
price for pulp rose 10 percent in the 
second quarter on the Helsinki Fu- 
tures and Options Exchange. 

Munksjoe made a one-time gain 
of 50 million kronor from the sale of 
Cerbo in the first quarter. It also 
made a gain of 32 million kronor 
from the sale of Ljungdahls to Bongs 
Fabriker AB, a Swedish maker of 
paper, in the second quarter. 

lire company's shares rose 3 
kronor to 86 kronor in Stockholm. 


African Union? A Bit Closer 


Reuters 

JOHANNESBURG — African 
economic union is still a far-off 
dream, but the continent's leaders 
say they are getting the regional 
building blocks in place. 

Several years of good growth 
after decades of turmoil have al- 
lowed them to take their first timid 
steps toward what many analysts still 
consider an impracticable ideal. 

At the Organization of African 
Unity summit in Zimbabwe in June, 
leaders held the first meeting of the 
African Economic Community, 17 
years after the plan was hatched 

The aim is bold: to create an 
African common market for the 54 
countries on the continent. But the 
timetable is a bit more sober: to 
achieve it by 2030. 

The African Economic Com- 
munity is supposed to merge ex- 
isting regional economic group- 
ings, on a poor continent still 
plagued by conflict, into a single 
organization along the lines of the 
European Union. 

“In the 1980s. some countries 
were socialist, and policy divided 
us,” Kenneth Kotelo, an econo- 


mist, of the Africa Institute in Pre- 
toria, said. “For the first time now, 
Africa is pursuing a common eco- 
nomic policy, and market reforms 
have been embraced.” 

Mr. Kotelo added, “But I don’t 
see a single economic community 
materializing by 2030. You would 
need to have the regional econom- 
ic forums functioning First, but at 
the moment they are not” 

More than half a dozen such 
groups exist, with differing aims 
and largely limited success. 

President Robert Mugabe of Zi- 
mbabwe, the current OAU chair- 
man, said, ‘ 'In these institutions ties 
the embryonic form of community 
Africa seeks to achieve via political 
and economic integration.” 

In the past it has been cheaper 
and easier for most African coun- 
tries. whose economies are still 
based largely on raw materials and 
commodities, to trade with their 
former colonial masters than with 
their neighbors. This is what they 
want to change. 

African growth has risen from less 
than 1 percent in 1992 to more than 
55 percent last year, and the upward 


trend is expected to continue. But 
population growth, at about 3 per- 
cent a year, is still a burden on a 
continent of a billion people. 

Market reform and privatiza- 
tion, led by Uganda and Zambia, 
have yet to be matched by a boost 
in foreign investment despite con- 
siderable inflows from Asia, led by 
Malaysia. 

President Yoweri Museveni, 
who has turned Uganda into an 
economic model, said, “Now that 
African economies are beginning 
to grow, basing themselves on 
private enterprise, we must think 
of one additional factor — the size 
of the market” 

The brightest star is the southern 
region, where the end of apartheid 
in 1994 brought Africa's long-iso- 
lated powerhouse. South Africa, 
into tiie fold. 

Its membership in the Southern 
African Development Community 
turned what had been a self-help 
group for “frontline states” in the 
struggle against apartheid. South 
Africa’s old system of while- 
minority rule, into Africa’s 
strongest economic bloc. 



Source: TeteXurs 


hue mammal HenUTHut 


Very briefly: 


Altana Plunges 23% on Drug News 


AFX News 

FRANKFURT — Shares of 
Altana AG plunged 23 percent 
Monday after the company said it 
was abandoning clinical trials of a 
successor to its Pantoprazole ulcer 
medication. 

While the company did not of- 
ficially announce the abandonment 
of the third phase of the trials, a 
spokesman did confirm that the drug 
— a so-called reversible proton 


pump inhibitor — had an unsat- 
isfactory risk profile. 

Phase IH of clinical trials is the 
final stage before a company applies 
for regulatory approval to market a 
drug. Although most companies 
will not enter that phase without 
being confident a drug will succeed, 
the failure rate is still one in four. 

Altana would not say how much it 
had spent to develop the drug, but 
analysts said the company had prob- 


ably invested tens of millions of 
dollars. 

The loss in potential earnings 
would also be considerable. There 
are no similar drugs on the market, 
and some industry specialists said the 
drug could have brought Altana as 
much as 500 million Deutsche marks 
($268 million) in annual sales. 

Altana shares ended the official 
floor-trading session in Frankfurt 
4350 DM lower, ar 14350. 


IBCA Talks of Merger With Fitch of U.S. 


Compiled to OurSeffFm m Dapauhei 

PARIS — The European credit-rating agency IBCA 
Ltd, and die U.S. ratings agency Fitch Investors Service 
Inc. have begun talks on merging their activities, Fimalac 
Communication, IBCA's parent company, said Monday. 

A deal would tie the mostly American operations of 
Fitch, which earned about $10 million on sales of $65 
million in 1996. with IBCA's mostly European. Asian 
and Larin American operations. Fitch is the third largest 
credit-rating agency in the United States. 

Bringing the two companies together would link 


Fitch’s expertise in municipal-bond and asset-backed 
bond issues — such as credit-card securitizations — 
with IBCA's specialization in rating sovereign nations, 
banks and other financial borrowers. 

Mark Gross. IBCA's senior vice president, said a 
combined company would be a “formidable com- 
petitor,” to Standard & Poor’s Corp. and Moody’s 
Investor Service Inc. Fimalac. which has interests in 
precious metals, chemicals and real estate, said earnings 
in 1996 rose 60 percent, to 310.5 million francs ($53.5 
million). (AFX. Bloomberg) 


• ABN -AMRO HoldingNV, the Dutch bank, plans to shed 50 
jobs at its Frankfurt unit. Frankfurter Krediet bank, as part of 
a reorganization of its underperforming German operations. 

• BASF AG, Germany's second-largest chemicals and phar- 
maceuticals maker, bought thepolystyrene plastics businesses 
of the U.S.-based Monsanto Co. and Brazil’s Unigel Group 
for an undisclosed amount 

• Psion PL C shares surged nearly 8 percent to 225 pence 
Monday after a published report said the maker of hand-held 
computers was unable to keep up with demand for its new 
Series 5 model. 

• Russia's privatization committee and attorney general 
found that last week's sale of the state’s 38 percent stake in the 
nickel producer Norilsk Nickel to a group representing Rus- 
sia’s Oneximbank was properly executed, the Interfax news 
agency reported; Prime Minister Viktor Chernomyrdin had 
demanded an examination of whether the sale conformed to 
Russian legislation. 

• Framatome SA, a French nuclear-reactor maker, said it 
would remain interested in buying Westinghouse Electric 
Corp.'s nuclear unit even if the U.S. company spumed its 
offer and spun the unit off. 

• South African Breweries Ltd. is in talks to buy a stake in Nile 
Breweries of Uganda as part of its plan to expend in Africa. 

■ Mariey PLC. a British building-materials company, bought 
the Flexco flooring business of the U.S.-based Robbins Inc. 
for $39.2 million in a move that extended its U.S. distribution 
network. 

• The Bundesbank said that its president, Hans Tietraeyer, 

continued to support tire current president of the European 
Monetary Institute, Wim Duisenberg, as head of the future 
European Central Bank. Bloomberg. Reuters. AFX 


* 1 1 


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5a4Pojw 
Sacxdfe*. 

Sewn Trent 827 
SbeflTronspR W9 
SMC lleBd 

5roi»iNep»*» « 
SibHiKEW 
Stntthsi^. 

SlfiemJ** 

Tcte&Lyte 

Tesen 

inane* Water 
33&WP 
TIGiobp 
Tonkins 
Ortfever 

UWAssunura 


1146 

6.70 

652 

652 

1057 

413 

417 

755 

495 

614 

141 

19.10 


627 
450 
779 

657 
144 
6*6 

658 
1X80 
630 
491 
427 
442 

1145 

788 

341 
1*80 
672 
243 
553 
682 
445 
146 
170 
1J6 
1080 

129 

618 

bM 

477 

727 

613 

342 
589 
468 
558 
625 
725 
177 
843 
190 

1X10 

1241 

608 

585 

X97 

450 

580 

628 
6 

2127 

1070 

387 

7-23 

240 

933 

278 

440 

727 

Z.17 

£90 

498 

1340 

Z46 

618 

383 

753 

3.18 

256 

622 

770 

148 

7 

520 

607 

770 

342 

970 

353 

^5 

223 

666 

2J7 

1055 

250 

618 

1048 

£37 

379 

431 

1629 

752 

435 

2^ 

432 

’13 

1141 

842 

447 

635 

5037 

410 

411 
778 
479 
601 
323 
1690 
453 
645 


Utd UTBttes 
Ifenbcitne Lx lit* 
VodcrtooB 
WMtbrcod 
VWemsHflss 

LYnHrdWfe 

WPP Group 
Zeneca 


7.12 696 7.11 699 

4S2 4J0 

X16 111 115 115 

6Z7 619 620 636 

-- 3^1 


- 6S ___ 

479 498 502 

281 270 278 X73 

1983 1950 1943 1953 


355 346 

498 


630 6*5 

*56 455 

783 750 

658 652 

148 147 

£52 548 

675 545 

1407 1411 

840 637 

499 £09 

441 436 

448 447 

1173 1174 
7.94 758 

347 163 

1605 1483 
641 645 

250 245 

610 _ 6 
8.90 859 

484 473 

149 148 

385 426 

1JB 156 
11.12 50.90 

1 50 179 

£92 558 

670 £19 

4*7 48* 

745 741 

618 615 

148 340 

607 6JJ3 
471 471 

675 £48 

676 £26 

7-3* 7 JO 

179 179 

946 9J8 

358 358 

1X31 1276 

1287 1 

618 
£86 £95 

346 3 

457 448 

5J2 £93 

641 636 

60* 603 

22-35 2154 
1084 1083 
354 389 

7J2 778 

252 245 

945 941 

281 278 

452 447 

743 752 

218 2.18 
£92 £97 

£05 498 

1166 13.95 

251 251 

£33 £25 

8J2 641 

£03 7.99 

£19 18* 

288 1» 
682 678 

7.76 7 80 

15T 148 

772 7* 

£34 £29 
62S 613 
782 733 

£45 348 

9.70 951 

110 £05 

S.n £58 
279 278 

£77 675 

187 254 

11.19 1185 
X54 Xg 
625 630 

1646 1070 
£51 5ja 
383 187 

£37 4J8 

TB4> 1 849 

7J8 738 

442 478 

284 284 

S7J 323 
440 443 

'is "4 

IT43 1147 

53 a 

652 6J5 

1057 1040 
£10 £15 
617 £W 
13 2 7» 

W 40 
606 £18 
37S 331 
19 1970 
£60 458 

4.71 673 


Madrid 

Acerinw 

ACESA 

A puog iBar crifen 

Argectana 

BBV 

Sanerio 

BairiOnter 

Bco Centro Hap 

Bco Popular 

Ba> Sa/itanrtar 

CEPSA 

Corttnente 

SC’ - " 

FECSA 
Gas Ntdunri 
nwdrata 
Pryco 

Sevfflana Bee 
Taboariero 
Tetetoolca 
Union Fenosa 
ValencCanenl 


Befeafedac 99546 
Preriaat: 99612 


28000 

27700 

27720 

28100 

1810 

1765 

1800 

7780 

5870 

5710 

5860 

5800 

80*0 

7920 

8000 

8080 

4220 

41S0 

4210 

4220 

1465 

1*20 

7440 

14X5 

7650 

7500 

7540 

7530 

5900 

5810 

5850 

5880 

35390 

34440 

34800 

35250 

4*2$ 

43S5 

4370 

4455 

*800 

*705 

*720 

4750 

3375 

3200 

33X 

3290 

8680 

8440 

8560 

8530 

3265 

3100 

3205 

3130 

1290 

1765 

1290 

1280 

6630 

65*0 

6560 

6600 

IBM 

1 B10 

1855 

1MD 

3030 

2925 

29*5 

2975 

6250 

6200 

6223 

62*0 

1425 

1385 

1415 

1395 

7800 

7700 

7740 

7780 

4155 

4100 

41*0 

4150 

1240 

1220 

12*0 

1235 

2775 

2750 

2775 

2760 


Manila 

AyotaB 
A rota Land 
BkPtaptel 
CAP Homes 
Mania EiecA 
Metro Bank 


PSEMec 257243 
Prorfeoi: 24*782 


POBank 
PMLanpDW 
San MlBuet B 
SMPlfneHdq 


17X5 

17X5 

17-50 

17X5 

7X75 

19X5 

19.75 

21 

151 

149 

150 

150 

9J0 

9-30 

960 

9J0 

87 JO 

86 

B7.50 

89 

540 

520 

520 

540 

6 

5.70 

5J0 

*10 

222 

221 

221 

223 

920 

890 

903 

940 

62 

61 

*1 

63 

7X0 

760 

760 

730 


Mexico 

AMaA _ 
BanaalB 
Crimes CPO 

Giro C 

ErnpMortema 

GpoQirsoAl 

GpoFBcomer 

Gjso Rn Inbwsa 

KkobOo/kMa 

ratevtsoCPO 

TNMexL 


6*80 
U4D 
4250 
1£12 
4X00 
4240 
£60 
3650 
3645 
12650 
21 JS 


'US Milan 


Ben Corrm Hal 
BcaFitieurom 

Bead Roma 

Benetton 
CretBo Itafano 
Ellison 

i*i 

Hal 

General Aide 

INK 

tNA 

Mwfctanca 

Mantaftw 

OMI j 

Pmwlal 

PW 

RAS 

Roto Ban. 

S Panto Tom 
TetaorolWBa 
TIM 


2630 

5410 

7900 


639 

2605 

£865 


Montreal 

Bob Mob CMn 
On Tire A 

CdnUfllA 
CTfintSw 
Gar Moho 
H-WatUhcD 

IflWKD 

tmestanap 

LnbtowGos 

NaABkOmta 

Queb«wB 
Bflpas Ctfran B 
S^BkOfc 


Oslo 

SS%‘ 

DennoataBk 

Etesm 

HafsfendA 

Norsk* StogA 

NyrnwlA 
OMoAsaA 
P«<lniCa>S*c 
iPtftn A 


nawosanpff 
storee rand Asa 


IS 

an 

2670 

3240 

156 

47 

470 

41450 

293 

165 

545 

442 

15550 

134 

410 

4670 


Paris 

A car 

AGP 

AlrUnMe 

AfcotdAhtf] 

Ajbj-UAP 

Bcocnke 

B1C 

BNP 

Canal Phn 
Carreeour 


CAC-40; 29B34* 
Pmiain: 299627 


S” ss 


965 964 97* 

213 210.70 212 

952 W7 950 
851 839 M2 

*15.90 *1170 41X80 
75* 738 7*8 

513 506 508 

264.90 277.1 D 28150 
1120 1100 1115 

4003 3952 3989 

77550 278.20 


Christian Ok* 


714 

990 


330 

482 

9S 


^ ^ 970 

CLHOedafton 573 562 462 
CmSt Agrtaie 1265.10126X1 01 266M 




955 927 9*1 

682 672 677 

815 798 Btl 

9 *.90 £90 

7.15 7 7.15 

7*3 731 735 

399.59 39810 3M10 
8*8 838 838 

437.90 430 43630 

1189 1167 1185 
2*25 2360 3402 

1536 1491 1514 

363 35610 358 

462.40 44970 45750 

Pernod Kami 31570 307 31X50 

PeagealCR 719 697 T16 

PtrwriWtinl 2720 2651 2669 

promodes 2280 2241 22S1 

Renautt 16550 14020 16*50 

Rexel 1658 1635 1647 

RtvPoulencA 252.40 24X70 2*>V3 


. anon* 
EHJUjulWne 
Ertdorria BS 
Eunxfismiy 
Eurotonnd 
Gen-Eoux 
Haws 
Imstat 
Lafarge 
Leg rand 
LCreal 
LVMH 
MfchdttB 
Paribas A 


SarraB 
Sdnutoa- 
SEB 

SG5 Thomson 
Sle Generate 
Sodexho 
SJGoba/n 
SW2 (Ob) 

Suez Lmn Eaux 


CSF 


Total B 
Uslnor 
Votea 


646 6ZJ 628 
34690 3*1 3*5 

1035 998 105 

571 566 547 

823 001 815 

3009 2929 2955 

924 900 916 

1555 15.80 1£85 
652 639 648 

743 726 726 

760 75570 1 55 90 
605 592 598 

115.90 11110 11*70 
376 36450 376 


984 

21250 

936 

858 

41650 

746 

515 

26X60 

1120 

3971 

279 

335J0 

708 

9*0 

569 

1260 

931 

682 

808 

* 

77S 

743 

"ts 
«0 
1193 
3*00 
1509 
366 
*57 JO 
31* 
712 
2699 
2279 
165.50 
1665 
24970 
638 
345 
WTt 
573 
813 
3010 

•8 

651 

743 

160 


Botaa todtac 5017 J8 
Pieritws: 5075JB 

6*30 64J0 6450 
2X90 7X90 7*00 
4130 *135 4115 
1190 1*00 1*12 

42J0 4X20 41*5 
6750 61JD 6LA 
338 353 160 

3650 3650 3630 
3520 3555 3645 
12550 12*00 124^ 
2040 20.60 20.90 


Srio Paulo 


BmOexoPU 

BrolnaPM 


MJBTMMfltoxlWSJO 

Prerious: 1457X88 

15190 1*6*0 14890 ISOM 
4185 4035 4110 *190 

sin 54 90 5540 5655 

100 1560 1577 1596 
2000 25800 24050 26150 
M&S 3385 3*15 3535 

B455 8220 8305 3320 

10475 1®0Q 1C00 IgO 
592 5 5785 5800 S905 

■WBta 35000 35100 35700 

» ® « « 

5260 5260 S45 

7675 7775 7CT 

TI530 11235 11485 77573 

1 U2 1120 1]31 11^ 

625 635 630 

2530 ?SS2 

4490 4TO0 ^0 
149® 14690 14730 14925 
2149 20600 2OT0 21250 
13600 13230 13390 13730 

mS I 0 M 8 law nix 

«245 SC40 6065 6125 


CE! 

Copel 
Etebobios 
ttoubancaPId 
Light Senidos 

Pauft^Lw 
SdNodanaJ 
Souza Cruz 
Tetetaas PH 

T^t 10 

TetetaPW 

Untoancn 

UsUBinasPfd 

CVRDPfd 


>7 JO 
81 £00 

56.10 
79XD 
17J0 

55X00 
65000 
cienn 
469 JO 

107 tyl 

210X10 
3*20 
11X5 
757 JO 
196JQ 
16*00 
349.99 
39X10 

i2xn 

28.10 


71 JO 
81400 
5£*5 
77 £0 
1750 
540 JO 


531X30 
469J0 
29*00 
207 JO 
36J0 
UJ5 
14720 
19*20 
16X80 
34100 
J9J0 
11.90 
27 JO 


1120 Jl-30 
81*00 81 9 JO 
5£45 56JC 
77 £0 79 JO 
17-50 I8J0 
S*OJO 54X00 
65QJ0 65X00 
53X00 5*0X0 
*69 JO *6990 
29*01 30X00 
207 JO 209JO 
3620 3*40 
11X5 11-25 
14PJD UfJO 
19450 195J0 
16*00 16X00 
it* ivi 34*00 
39J0 39X71 
11,90 12X15 
2750 27 JO 


Seoul 

Doom 

Daewoo Hean 

Ko reaEfPw 
Korea Exch Bk 
LGSemtoon 
Pahang Iron St 
Samnng Dbkqi 
SaaanngElec 
atotaiBcnk 
SKTefecam 


Piwtoas; 3nt78 

301. 50 50 SO 

^V» 2714 27 JO gjo 

39.10 39.10 39.10 39.10 
4*40 44 4**0 44M 

18? 1|S ltS IMS 
3185 33V: 3155 33* 
41tt 4QJS 4085 41-65 
771* 34.70 36J0 37J0 
9060 2014 20ifl 21 

1740 17J0 I7JS 17^0 
SJO 38 3810 _ 5 
38 37165 3735 3X40 
m, V% 27 JO 

liSs nS 1W5 11^ 
6516 6418 6414 6£35 


oBXtotecnss 

Pmfcas; 717-24 

149 150 19 

1S199J0 201 

26 »70 
32 32J0 3X» 
153 154 IK 

46 47 46 

451 467 458 

408 *1X50 4HJ0 
288 291 291 

163 16*50 16£» 
545 S55 558 

428 43 442 

151 155 1SJL50 

131 13 5 

610 610 630 

48 4£70 «70 


Singapore 

Asia Rk Brew 
Ce^wPac 
OtyUerfts 
QcfeQariaoa 
Dairy Fretara* 

DBSfaretai 

dbslSi 

FtastriHeme 
HKLand* 
JortMathesn* 
jaH Strategic* 
Kappef A 
KoppelBonk 
Kappef Fets 

OSUntanBkP 
Partway Kdgs 
Serebarrang 
Sing Ate fcrSpi 
Sing Laid 
Sing Pica F 
SngTedilnd 


Tal Lee Bank 

litttodusttd 

UfdOSttBkF 

wngridHriBS 

■^toUJabftR. 


1 

5trateTtMC 1893-86 


Pnwtoai: 19*192 

£75 

5J5 

£60 

6 

£60 

£65 

565 

565 

1130 

11.70 

11X0 

12X0 

12X0 

1160 

11-50 

12.10 

0X1 

087 

MB 

0X2 

17 JO 

1*80 

T7.10 

1760 

*52 

£66 

468 

*50 

30 

0X5 

9J5 

1020 

138 

118 

3.18 

362 

7X0 

7XD 

7J5 

7X5 

*18 

£At 

£08 

£18 

*05 

5JB 

£W 

6 

176 

370 

3X0 

3X6 

£96 

£74 

4X8 

5 

£34 

£16 

*16 

*30 

14.10 

1150 

1X60 

1XJ0 

U5 

7.90 


SJO 

*30 

6X5 

6X5 

*30 

6J5 

*45 

*50 

*55 

1X30 

1160 

1160 

£2.10 

7X5 

*75 

*85 

7X0 

27 

25JD 

2680 

2*60 

3X2 

368 

3X0 

172 

268 

150 

LSO 

170 

2X8 

2X3 

2X4 

2X8 

1.10 

1J7 

1J6 

1.11 

1*20 

1170 

1X80 

13X0 

3J0 

170 

3X2 

180 


AGAB 
ABBA 
Aul Daman 
AsfeaA 
Altos CepeaA 
AutoBv 


.EtecfeataB 

EfjasofT 8 

Henna B 

tncerSve A 

Imre rtu rB 

MoDcB 

ManXxmkcfl 

PriartnAJriorif 

SamMkB 

Sot*B 

SCAB 

S-E Banken A 
Skarefia Fors 
SkreuknB 
5KFB 

sEa?** nA 

S* Handles A 
VWwB 


612 '601 
349 358 

330 32* 

736 695 

42*50 415 

295 779 

287 275 

29*50 286 

258 250 

218 216 
197 18650 
99 73 

340 325 

3*4 340 

225 218 

192 182 

141 135 

278 >65 

23050 22150 


.607 - 609 
36650 36* 

325 325 

731 699 

*19 419 

290 292 

28* 276 

2B8 29250 
25750 256 

21*50 21750 
191 189 

9650 9*50 
339 331 

34150 345 

220 271 

188 187 

13850 13750 
272 26950 
22S 22550 


Sydney 

Ament 

AKZBfctog 

BHP 

Bocal 

Brambles Ind 
CBA 

CC Amato 
Cotes Myw 
Cotnata) 

CSR 

FostwiBrew 
Gootioan FM 
ICJAastrala 
Lex) Lease 
MIMHdm _ 
KatAustlank 
Mat Mutual Hdg 
He*sCaP' 
PadBc DtBilop 
Pioneer loti 
PubBroodaa! 
RtoTHo 
StGeamBank 
WMC 

Westpac Bkkig 
WtxxSdePd 


A>Ordtoarfesi2667JO 

PlWriensZTlUB 


8X2 8X5 

IC-32 70.18 
17.16 1*70 
*0* 190 

28J1 2740 
74JS 1*44 
15-90 1*70 

*83 *56 

*96 *89 

£17 £08 
167 240 

IJB 1.93 
1X29 1X95 
29J5 29 JO 
1 J3 1.77 
1948 19X5 
X15 no 
6 £91 

161 IS* 
£93 £84 

8X0 B 
2157 21X0 
8X4 844 

744 7J5 

856 846 

11J0 11.05 
£37 * 27 


8X7 846 

TO. T9 T040 
17J1 1*99 
192 *10 

2759 2840 
1*65 7*82 
15J5 1*14 
*59 *89 

*89 7 

5.12 520 

164 2L67 

186 2 

1110 1137 
2941 3025 

177 1JI 
19X9 1943 
110 XI* 
£92 *07 

157 340 

*84 *87 

*04 *25 

21X7 21-30 
*65 *90 

739 749 

848 858 

11X0 11X2 

£28 £44 


Taipei 

□Ohoy Life Ins 
QWJOHnO Bfc 
QriooTung Bk 
On Devefend 
□tow Steel 
FkMBwk 
Formosa Piasfic 
HooNanBk 
IrrilComroBk 
Nan Ya PtasSd 

UtdwScreEtec 

UWHlbiWaikt 


Slock MUM Mac 9807X7 
PrevtattC 99I3J4 


153 

169 

153 

148 

118-50 

116 

117.50 115J0 

7*50 

73-50 

73-50 

71 JO 

131 JO 

126 12*50 

128 

32.10 

30-00 

31-50 

30-30 

11BJ0 

116 117.50 

115 

66 

64 

65-50 

64 

126 

123 1 25-50 

122 

Si 

57 

58 

5*50 

76 

73 

74-50 

73 

10*93 

iozjo 

105 

Iff! JO 

163 

150 

151 

161 

47 JO 

47 

47 

47.10 

140 

12# 

130 

138 

6*50 

4X50 

45 

64 


... MR76&07 
PrevtootoTSin 
98000 93000 97400 96500 
8530 8220 5350 7900 

22500 21200 21800 20900 
14200 13600 13700 16000 
27500 27000 27300 27400 
6000 5750 5B30 5750 

68500 65000 46000 47500 
61900 60600 61600 60600 
68300 46700 48000 46700 
72500 69400 71900 49500 
9350 9600 9670 9550 

499000 460000 490000 464000 


Tokyo 

A?NtoponAlr 

AKtoiawn 
AstoiGkBS 
Bk Tokyo Mttu 
Bk Yokohama 
Bridgestone 
Crown 
□utouEtec 
ChuankoEtec 

Dei Ktop Print 
Date! 

DqUcNKcmj 

DahwBcmk 

DatwaHoate 

Doha Sec 

DtH 

Denso 

East JtgxaiRjr 
Efed 
Panuc 
iBroifc 
iPItob 


NAM22S: 1MM.1B 
P re v tewc 1960*46 



Stockholm gj«fe*c »jJ? 

Prefleas: 359241 


111 10988 IKLSD 111 
11*50 112 115 1UJ0 

237 231 233 237 

14*50 141 JO 142 142 

250 24* 247 250 

290 287 287-93 29X93 


tHn 
_ ) S1e«t 
KktiltippRy 
KbtaBrewav 
Ww Steel 
K pnw f yj 
Kutxria 
Kyocera 
towhuElac 
UCB 
Maroberi 
Maiui 

Malm Gam 
Matsu Elec ind 
Matsu Bee Wk 
Mitsubishi 
Mitsubishi Oi 
MBMbWEI 
NtoUbHUEit 
Mtsubbhi Hvy 

MbubWMrt 

MBsubtehlTr 

Mffsuf 


1090 

Toe 

3«a 

871 

£05 

1070 

no 

565 

2730 

3530 

2030 

1900 

2760 

689 

ISW 

605 

1360 

780 

6890D 

2760 

54100 

2410 

5010 

1580 

4650 

1610 

1120 

1300 

3680 

1730 

378 

518 

6690 

686 

9390a 

3610 

568 

2200 

1730 

677 

306 

682 

1060 

172 

807 

493 

8950 

1970 

570 

463 

1970 

4560 

2420 

1360 

1270 

297 

593 

1600 

B0 

660 

1740 

IO» 


1060 
690 
3420 
8 55 
590 
1040 
2230 

566 

2680 

3660 

2010 

19M 

2710 


570 
1320 

752 

6650a 

2680 

5310a 

2380 

6840 

1520 

6470 

1570 

1090 

1260 

3600 

W9D 

370 

502 

6570 

476 

92000 

3330 

565 

ZT60 

1700 

466 

290 

673 

1020 

167 

798 

465 

8780 

1950 

554 

431 

1900 

6510 

ryqi 

1330 

1240 

286 

571 
1570 

812 

631 

1680 

1060 


803 

670 


811 

697 


556 
433 
1900 T 
4540 


1! 


The Trib Index 


Prion as at 3XOPU. New York true. 


Jan. 7. 7992m 700. 

Level 

dang* 

% change 

jreoruftaia 

%ctianga 

+18-50 

World Index 

170.73 

-2.42 

-1.35 

Raptorial IndasM 
Asta/PatiOc 

130.01 

-4.26 

-3.17 

+533 

Europe 

186.21 

-2.51 

-1.33 

+15.51 

N. America 

2075S 

-1.02 

-0-67 

+28.06 

S. America 

171.48 

-1ZO 

-0.69 

+49-86 

iMhMiini tadwtte 

Capital goods 

228.18 

-3.88 

-1.67 

+33J0 

Consumer goods 

190.80 

-3-89 

-2-00 

+18^ 

Energy 

19&92 

+0.41 

+0-21 

+ 16^3 

Finance 

134.78 

-2-73 

-1.99 

+15.73 

MsceBaneous 

189.94 

-2.10 

-1.09 

+17.41 

Raw Materials 

193.28 

-0.90 

-0.46 

+1021 

Sendee 

167.03 

-2.74 

-1.61 

+21.64 

Utmtres 

16ai6 

-1.45 

-0.85 

+17^2 


Tbe international Herald Trbune Work) Stock morn O tracks the U.S. doBAr votes of 
2MkrtemebonelNlmfeatabN8toclatrom2Sceuitiiee. For mom mfoirmgon. a baa 
booklet to eveteae by writing to The Trib Max. W Avenue Charlee da OwBa. 

9252! NemByCetfox. France. Compied by BUonheiV New* 


Mitsui Fatten 

MlMltusf 

MuratoAUg 

NEC 

WktoSec 

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INTERNATIONAL HERALD TRIBUNE, TUESDAY, AUGUST 12, 1997 


PAGE 15 






Results Fail 
To Sparkle at 
Top Firms in 
South Korea 


Bloomberg News 

j..?5 OL 5- ~~ Paewoo Heavy In- 

ausfriesCa esuraaied Monday that 
its first-half nel profit grew a'slu®- 

®EL J y 3 . Pfrcent because of slow 
sales of industrial equipment, mak- 
ing n one of several South Korean 
companies to announce disappoini- 
mg earnings news. 

wnW. which derives 
about 40 percent of its sales from 
making machinery, said its half- 
year net profit, based on unaudited 
iIm-v-?' w f£. a ^ 0UI 38 billion won 
. ■ r J) ,llion1 ' compared with 
jo./s bilhon won a year earlier. 
Recurring profit, similar to oper- 
ating earnings, dropped 10 percent, 
to 47 billion won. 

The company’s audited financial 
statements are scheduled to be re- 
leased by Friday. 

Besides the weak machinery 
sales, Daewoo said its profitability 
had suffered because of shipbuild- 
ing orders with low profit margins 
that it took several years ago. In 
recent months. South Korean 
shipyards have seen a significant 
surge in orders, but they have kept 
prices low to try to compete with 
Japanese builders, who benefited 
from the weakness of the yen in 
recent years. 

Daewoo derives about a third of 
its profit from shipbuilding. It also 
makes the Tico compact car. 

Meanwhile. Samsung Heavy In- 
dustries Co., another shipbuilder, 
posted a loss of 91.2 billion won for 
the first half because of a factory 
shutdown and low- margin ship- 
building orders. 

The Joss — which reversed a 
profit of 7.4 billion won a year earlier 
— came as the company closed some 
of its unprofitable construction- 
equipment and industrial -machinery 
factories, which account for a com- 
bined 30 percent of its sales. Low- 
margin shipbuilding orders also hurt, 
the company and analysts said. 

Sales totaled 1.76 trillion won in 
the first six months, up 6 percent 
from 1 .66 trillion won a year earlier, 
Hwang Kang Ho, a company 
spokesman, said. 

“Given the first-half perfor- 
mance, Samsung may not be able to 
meet its sales and earnings target 
fills year,” Han Keum Hee, an ana- 
lyst at Merrill Lynch & Co., said. 

In another corporate report, Hy- 
undai Motor Co., the biggest South 
Korean automaker, said first-half 
profit fell as the company offered 
interest-free loans to try to lift car 
sales. An executive said net profit 
was about 28 billion won. down 46 
percent from a year earlier, while 
sales fell about 2.8 percent, to 5.4 
trillion won. 

The company’s final numbers are 
to be disclosed Thursday. 


ASIA7PACIFIC 



rhi-i.TH4uro.iThi' A — iarufcJ fYc« 

TOUGH DAY — Tokyo traders 
following the faff in share prices 
Monday as the Nikkei slock av- 
erage fell to 18.824.1S, down 
780.28 points, or 3.98 percent. 


Where Oil Outshines Gold 

Energy Booms as Mining Struggles in Papua New Guinea 


BU>umhrr$ Noej 

PORT MORESBY. Papua New 
Guinea — Petroleum exploration 
and production in Papua New 
Guinea is booming, outperforming 
the nation's minerals industry that 
has been squeezed by lower gold 
prices. 

World-class discoveries such as 
the Moran oil field in the country's 
remote highlands have helped to 
lift spending on petroleum explo- 
ration to its highest level in six 
years. 

The minerals sector, however, 
has struggled as companies such as 
Rio Tinto Ltd. have reduced ex- 
ploration budgets worldwide. 

“On the mining side, it's been 
more subdued because we have a 
lot of industjy concentrated on 
gold mining.” Greg Anderson, ex- 
ecutive director of the Papua New 
Guinea Chamber of Mining and 
Petroleum, said. “On the petro- 
leum side, we’ve actually had a 
great deal of activity.” 

Petroleum exploration rose to 
190 million kina ($135 million! in 
1996. its highest level since 1990, 


when expenditure reached 225 
million kina, according to figures 
published by the chamber, which 
represents 115 companies. 

That compares with exploration 
spending last year of 41.9 million 
Iona in file minerals sector, a level 
that marks a steady 70 percent de- 
cline over the past eight years. 

This year, exploration has been 
further affected by the Bre-X saga, 
Mr. Anderson said. In neighboring 
Indonesia, Bre-X Minerals Ltd. 
announced what was said to be 
potentially the world's largest gold 
find, at Busang, but it was later 
found to be a hoax. 

Another factor has been the fall 
in gold prices Last month to near 
12-year lows after the Reserve 
Bank of Australia's decision to sell 
two-thirds of its gold stocks. 

“The Bre-X situation followed 
by the significant decline in the 
gold price has worried people 
worldwide and has had an impact 
everywhere,” Mr. Anderson said. 

The industry has been cam- 
paigning in Canada, at the annual 
convention and trade fair of the 


Prospectors and Developers As- 
sociation there, with some results. 
A number of new licenses were 
applied for at the end of last year, 
Mr. Anderson said. 

“TYadirionally. a lot of our ex- 
ploration has been driven from 
Australia, but we are starting to 
look at other areas in the world to 
maintain our exploration levels," 
he said. “We have had some cut- 
backs on exploration expenditure, 
but we’ve been promoting quite 
hard in Canada.” 

Papua New Guinea's govern- 
ment also is paying more attention 
to the resources industry, which 
accounts for more than 70 percent 
of the nation's export revenue. 

At last month's election, the 
new government chose to split the 
mining and exploration portfolios 
in two. Traditionally, one minister 
has been appointed to oversee all 
of the resources industry. 

The move to split the portfolios 
has won praise from the industry, 
though it did raise concern that 
there would not be enough funding 
for two ministries. 



" HpRgKtSWff . Singapore " Tokyo 

H^tg Sftng .■ Straus Times Nikkei 22S ' • 

..17000 

2275 

42010 

16000 

/ 2200% 

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15000 k 

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•20000 l 

.14000 --J- 

r- ■ m \ 

Li isogo J 1 

13000 W/-- 

- 1875 V 

Hu \mtif 

1997 

J J A .! M AM 

1997 

j J A A M J J A 

1997 

Hong Kong 

Index..: 

• HajjgSeng . .. 

Mortdasi ■ ' ' Prev. •% 
Close Close Change 

16,460.47 16,647.54 -1.12 

Stu^apof© ; 

'.SttstteTifnes- 

1,893.86 1,943.82 :-2.68. 

Sycfeiey 

AkOufrsaridfi 

2J5& 2,711.40 -1.63 

Tokytt' - ••• 

: «8WWI225l\ 

IB, 824.1 8 19,604.46 -3,98 

Kuala Lwrnpur-<!kjrnisb^ 

902,14 .93236 . -3^4 

Saflgfcqk ... 

set,. . 

63225 636.85... ..-0.72 

Spm* J ; • 

'Comfweite index 

765417 760. B4 +0.56 

Taipei . 

. Stock Dterkfit Index 9,837.27 . 9,99334 *0.96 

Manila ; 

■ PSE' ~ ■ •: 

2,572-43 2.647^2 -2.86 

Jakarta 

- Composite index 

658.17 075.44 -2.S6 

Wellington 

N2S&40 

2508.40 2538.45 -1.18 

Bombay 

Sensfliva Index 

4A81J30 4J397.5A +1.30 


Source.- Telekurs 


tnu.-rruiiv.nJ HtnilJTnhuik 


Very briefly: 


Talk of a Sale Lifts Hang Seng Bank’s Shares 


ComtuMitirtfur SulfFnin Dupiih S»i 

HONG KONG — Hong Seng 
Bank Ltd. staged its biggest one-day 
rally since June on Monday even as 
other Hong Kong stocks tumbled, as 
investors speculated that the bank 
might be sold to Chinese interests. 

Hang Seng Bank, a unit of HSBC 
Holdings PLC, rose 5.3 percent to 
close at 108.50 Hong Kong dollars 
f$14j, up 5.50. while the 33-stock 
benchmark Hang Seng Index fell 1 . 1 
percent, or 1 87.07 points, to close at 
16.460.47. 

Hang Seng Bank's chief execu- 
tive. Alexander Au, has repeatedly 
denied that HSBC would sell all or 
part of Hang Seng. He said this 
month that the bank had no plans to 
seek Chinese shareholders to help its 
expansion on (he mainland. 


“It's ail speculation,” he said. 
“We have never had an approach 
from any Chinese bank.” 

Traders said there had been spec- 
ulation talk that Hang Seng would 
issue new shares equivalent to 10 
percent of its existing share capital 
to sell to Bank of China, one of 
China's largest commercial banks. 

But Keith Irving, a banking ana- 
lyst at Merrill Lynch & Co., said he 
would be surprised by such a move. 
“You can’t say never on these 
things, but we certainly wouldn't 
see any political or financial sense to 
it,” he said. 

The Bank of China already con- 
trols about 25 percent of Hong 
Kong’s retail banking market, giving 
it “corporate sovereignty in the local 
marker. ’ ' Mr. Irving said. If the Bank 


of China or any other Chinese parry 
wanted to buy into a Hong Kong 
bank, he said, it would make more 
sense for it to pay less for a majority 
stake in a small bank than more for a 
minority stake in Hang Seng. 

“It's hard to justify the rumors at 
this stage after the banks' repeated 
denial that any deal is on the way.” 
Anthony Lok, banking analyst of 
W.I. Carr, said. 

Chinese companies have in- 
creased their holdings in Hong 
Kong airlines, utilities and telecom- 
munications companies in the past 
year. (Bloomberg, Reuters) 

■ Li Holds Forth on Economy 

Prime Minister Li Peng of China 
has called for a “rational^ approach 
to China’s transition to a market 


economy, Agence France-Presse re- 
ported from Beijing, quoting the 
Xinhua news agency. 

“The first thing to do is rationally 
allocate resources and avoid repeat 
investment in major projects," Xin- 
hua quoted Mr. Li as saying. 

The prime minister was speaking 
at the seaside resort of Beidaihe, 
about 240 kilometers (150 miles) 
east of Beijing , where China’s lead- 
ership was meeting to hammer out 
top-ievel personnel changes ahead 
of the 15th Communist Party Con- 
gress, scheduled for this autumn. 

“Reducing production costs ro 
make more competitive products is 
vital,” Mr. Li said, adding that China 
should stress the technical upgrading 
of existing enterprises instead of 
starting many large new projects. 


• Bakun Hydroelectric Corp., which will operate Malay- 
sia's $5.3 billion Bakun Dam project, may delay its initial 
stock offering because of a dispute between the developer, 
Ekran BhdL. and Asea Brown Boveri Ltd., the lead con- 
tractor in the construction consortium. 

• Metro Pacific Corp.. the Philippine flagship of Hong 
Kong’s First Pacific Co., said ib net income climbed to 574.5 
million pesos ($20 million) in the six months ended June 30. 
46 percent higher than in the same period of 1996. 

• Cathay Pacific Airways Ltd. appointed as a director Zhang 
Xianlin, vice president and a director of China National 
Aviation Corp. (Group) and executive director of China 
National Aviation Corp. (Hong Kong). 

• Sri Lanka's Colombo stock exchange, with a market cap- 
italization of 150 billion rupees ($2.5 billion), began a screen- 
based trading system able to handle 20,000 trades a day. 

• India plans to pay 155 billion rupees (S4.34 billion) it owes 
to state-run oil companies by issuing 1 0-year bonds, the 
Petroleum Ministry said. 

•Telstra Corp. is to become Australia's largest privatization 
to date, raising more than 10 billion dollars ($7.35 billion) 
from a sale in November of one-third of the government's 
stake in the telecommunications company. 

• Vietnam's State Securities Commission submitted a draft 
plan for the country’s first stock exchange. 

• Thailand plans to raise as much as 75 billion baht ($25 
billion) by selling shares in the country's Petroleum Authority: 
the International Monetary Fund has urged Bangkok to speed 
its privatization sales. Bloomberg, AFX, AFP. AP. Reuters 


THAILAND: IMF and Asian Nations Agree to a $16 Billion Rescue Package 


Continued from Page l 

Even more serious has been a massive bad debt 
problem caused by reckless overinvestment in 
real estate and factories. 

After long denying the severity of its problems, 
the Thai government was forced hist week to agree 
to emergency measures to restructure its economy 
in return for the loons announced Monday. 

Other Asian countries have an incentive to 
help Thailand because many of them are affected, 
though perhaps to a smaller degree, by the same 
economic problems and pressures on their cur- 
rencies. However, previous agreements among 
Asian central banks to cooperate on currency 


stabilization were ineffective in preventing the 
recent turmoil. 

Since the Thai government gave up trying to 
defend its currency on July 2, the baht has fallen 
about 20 perceat against the U.S. dollar. The 
Philippine peso, Malaysian ringgit and Indone- 
sian rupiah have all fallen about 6 or 7 percent. 

To qualify for the bailout, Thailand agreed last 
week to cut its government spending, to raise its 
value-added tax, a kind of sales tax, to 1 0 percent 
from 7 percent, and to suspend the operations of 
42 debt-ridden finance companies. 

■ Asian Stock Markets Get the Jitters 

Currency jitters coinciding with the announce- 


ment of the bailout for Thailand sent stock mar- 
kets tumbling across Asia on Monday, news 
agencies reported. 

Investors are worried that other countries in the 
region will either have to allow their currencies to 
weaken or take steps that will choke off economic 
growth and bite into corporate profits. 

Malaysia's benchmark stock index fell 3.2 
percent to 902.14, a 21-month low. Jakarta’s 
stock index tumbled 2.6 percent and the Phil- 
ippine Stock Exchange Composite Index sank 
2.8 percent. 

In Tokyo, the benchmark Nikkei 225-share 
index dropped 3.98 percent to close at 18.824.18 
points. (AFX, Bloomberg) 



Peter Catranias 

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CUBE: Debate Over Office Layout Even Splits Microsoft and Intel 


Continued from Page 1 1 

office stronghold. Sun Mi- 
crosystems, is participating in 
an office-sharing experiment 
to open up more team-meet- 
ing space. 

• “We're trying not to take a 
religious approach to the 
work-space issue,” he said. 

In any case, offices of all 
kinds are shrinking. The Fa- 
cility Performance Group, a 
research firm, says personal 
work space has shrunk 25 per- 
cent ro 50 percent over die 
past decade at 72 major 
companies it has studied. 

The office downsizing is 
partly a result of cost cuts. But 
most of these companies have 
also aone through “re-engi- 
neering' ’ programs intended 


to replace traditional hier- 
archies with teamwork in the 
pursuit of greater innovation, 
speed and profits. 

A shift to open-plan offices 
is often part of the re-engi- 
neering formula. With the 
cubes come more team meet- 
ing rooms, so personal space 
is sacrificed. Cubists insist 
their approach is a winner. 

“All the accepted research 
in this field says you have to 
have more visual and acoustic 
openness to get the benefits of 
a team-based organization,” 
said Jon Ryburg, president of 
Facility Performance Group 
in Ann Arbor, Michigan. 

Perhaps that's true for an 
automaker or an insurance 
company, the cave dwellers 
reply, but a different set of 


work-space principles pre- 
vails on the frontiers of the 
new economy. 

“People who have to think 
deeply, like programmers, 
need individual offices,” said 
Eric Schmidt, the former 
chief technology officer for 
Sun Microsystems Inc., who 
recently became chairman of 
Novell’ Inc., a software com- 
pany. “The best and the 
brightest drive this industry 
and the high-tech economy. 
Giving them an office to be 
more productive is a smart 
investment ” 

This is the cavers’ tramp 
card: Programmers are special 
people who do special work. 
They must cooperate with 
others at times, but theirs is 
essentially individual labor — 


hours of tedious, painstaking 
effort punctuated by flashes of 
inspiration, all rendered in the 
arcane language of machines. 

People who study how pro- 
grammers work speak of cog- 
nitive “flow,” the code cow- 
boy's equivalent of an athlete 
being in a peak-performance 
“zone” when everything 
seems to work. Deep concen- 
tration helps the code flow, 
and that mental state, many 
programmers say, is easier to 
attain in a private office. 

Besides, they add, private 
offices proved to be a recruit- 
ing advantage in Silicon Val- 
ley's earlier boom in the late 
1980s: At that time. Sun had 
just expanded, building many 
private offices — and helping 
to lure many job candidates. 


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PAGE 16 


INTERNATIONAL HERALD TRIBUNE, TUESDAY, AUGUST 12, 1997 


S PON SO RED SECTION 


SPONSORED SECTION 


BUILT FOR BUSINESS: CHINA 


* 





A Trading ‘Greater China 5 

The economies of China, Hong Kong and Taiwan continue to grow closer. 


O n July l, 1997, Hong 
Kong joined China 
under the doctrine of 
“one country, two systems.” 
Historically, it was an im- 
portant intemationa] event, 
marking the return of the 
British colony to the Chinese 
mainland. Economically, it 
was less important as the two 
economies had long been de- 
pendent on one another, a 
dependence that will become 
closer in coming years. 

Hong Kong’s return will 
affect Taiwan’s relationship 
with the mainland, however. 
Now, China and Taiwan are 
being prompted to examine 
the vast flows of investment 
and trade that are trans- 
shipped through Hong Kong 
as a way of circumventing 
official trade restrictions be- 
tween the two economies. 

Despite the challenges and 
concerns that the handover 
has thrown into high relief; 
trade and investment be- 
tween the economies of 
China, Hong Kong and 
Taiwan has been expanding. 
This has created an economic 
interdependence that forms 
the reality behind political 
gyrations. 

Known as “Greater 
China,” these three econom- 
ic powers will continue to 
benefit from combining 
i ai wan's strong international 


connections and technolo- 
gical know-how with 
China’s massive markets and 
inexpensive labor, and Hong 
Kong’s financial and services 
expertise. 

Asia’s largest trading bloc 
As trade within Asia be- 
comes the predominant in- 
fluence in the region. Greater 
China appears set to become 
Asia’s largest de facto trading 
bloc. This will probably oc- 
cur regardless of changes in 
the political landscape. 

“We believe that intra- 
regional trade in Asia will 
become the dominant influ- 
ence in the region during the 
next 10 years,” says Andrew 
Freris, an economist at Bank 
of America (Asia). “Greater 
China will be a key hub for 
this trade.” 

The three economies are 
now connected by an intric- 
ate web of trade and invest- 
ment, winch has operated al- 
most independently of 
political concerns. Mr. Freris 
notes that during last year’s 
strained relations between 
China and Taiwan, direct in- 
vestment by Taiwan into tfae 
mainland continued to grow. 
It was only offer the political 
crisis ended that the growth 
of investment flows subsided 
as die cyclical trend re- 
versed. 


Rather than being 
stemmed by political circum- 
stances, trade and investment 
flows have found a circuitous 
route through Greater China. 
This has been further com- 
plicated by Hong Kong’s 
changing economy, with its 
manufacturing base shifting 
across the border into south- 
ern China. 

The majority of Hong 
Kong's trade with China is 
based on outward-processing 
agreements. Hong Kong 
ships goods to China, and 
they are then processed in 
C hina and returned to Hong 
Kong for re-export Esti- 
mates indicate that just over 
half of all goods moving 
from Hong Kong to China 
are part of outward-pro- 
cessing agreements, as well 
as 70 percent of goods ex- jS 
ported from China to Hong 
Kong. 

While the amount is likely 
to grow, the percentage of 
total trade is unlikely to climb 
further, as the shill of man- 
ufacturing from Hong Kong 
to southern China is nearly 
complete. 

Further cementing the 
economic relationship be- 
tween the economies of 
Greater China, about 5 per- 
cent ofTaiwan's total exports 
flow through Hong Kong on 
their way to tire mainland. It 



the designation of Shenzhen as a special eeonombzone has transformed the Mage into a modem city and tinandalcerte. Above, Shernhen Development Benk. 


appears likely that some of 
these goods are also involved 
in outward-processing agree- 
ments with the mainland. 

Another 5 percent is es- 
timated to flow through other 
countries, such as Japan and 
Singapore, and another 5 per- 


cent find a more direct route. 

China is now Taiwan’s 
thrrd-largest trade partner 
after Japan and die United 
States. Total trade is estimated 
at nearly $20 billion in 1996. 

This growing dependence 
on China as a market and 


More Steps to Take in Long March to WTO 

The question is more likely not whether China will join the global trading body, but when and under what conditions . 


C hina's accession into the 
World Trade Organization has 
been debated by the world 
trade community for more than a 
decade. While China will probably 
join the WTO, few are willing to 
predict when it will happen. The po- 
sitions of the major players softened 
during the May meeting of the WTO, 
and an agreement on China's joining 
seemed possible tins year. 

In a recent visit to Beijing, Italian 
Prime Minister Romano Prodi said 
he expected China to join the WTO 
soon and that Italy backed Beijing's 
long-delayed bid to enter the global 
body. “It's difficult to have a World 
Trade Organization without China,” 
Mr. Prodi told a news conference in 


Beijing. 

Little 


Little progress was made m the 
latest talks, which ended Aug. 1 . U.S. 
Trade Representative Charlene 
Barshefsky called China “essentially 
non-responsive" in a press confer- 
ence following the meetings. 

The Chinese did offer new con- 
cessions during the July conference, 
conducted in Beijing and Geneva. 
Beijing agreed to eliminate import 


quotas for automobiles in eight years, 
down from the original offer of 15 
years. Officials also pledged to 
shorten the phase-out period for 
quotas on other goods and refrain 
from subsidizing agricultural ex- 
ports. It was progress, but WTO 
members had hoped for more. 

U.S. officials had hoped that an 
agreement would be reached before 
President Jiang Zemin’s state visit to 
-Washington in October, but chances 
ofChma’s joining the WTO this year 
seem remote. 

$290 billion in foreign trade 
Since opening to international trade 
in 1979, China has rapidly grown to 
become the world's 1 Oth-laigest trad- 
ing economy. 

Last year, total foreign trade 
touched $290 billion, with exports 
slightly ahead of imports. In the first 
half of 1997, China's foreign trade 
was worth $144 billion, up 13 per- 
cent over the same period last year. 
Of this, $81 billion came from ex- 
ports, up 26 percent over the same 
period last year. The remainder con- 
sisted of imports, which were down 



A textile factory m Shanghai:- Chria's exports totted S81 bSon In the first haff of 1997. 


marginally. Japan has been China’s 
largest trading partner for the past 
four years. The United States rose to 
second place in 1996, as trade with 
Hong Kong slipped. 

Beijing estimates that its total 
trade will climb to $400 billion by the 
year 2000. 

Membership’s advantages 
Membership in foe WTO would al- 
low China to take advantage of a 
system of preferential trading rights, 
estimated to be worth $22 billion by 
2005. 

Membership also carries with it 
the prestige of working with the 
world’s largest and most influential 
countries in making decisions con- 
cerning global trade. 

The process has been contentious, 
though. Negotiations are now fol- 
lowing two distinct tracks. 

The first involves ongoing nego- 
tiations with the WTO Working Party 
on China's Accession, a group of 
developed and developing nations 
that are discussing issues affecting 
China’s efforts to join the WTO. 

The second track is bilateral ne- 
gotiations with central WTO players: 
foe United States, the European Un- 
ion and Japan. The main points of 
contention between China and these 
members center on whether China 
will agree to “commercially legit- 
imate” changes to its import regime, 
committing to major changes in its 
trade and investment behavior. 

U.S. officials contend that China 
must agree to quantifiable changes in 
its trade and investment regulations 
to open its markets to comp'etition. 

Internal issues 

The real battle may not be between 
the Beijing government and WTO 
member countries. Rather, struggles 
between Beijing’s reformers and the 
ministry bureaucrats who see WTO 
entry as a threat to their entrenched 
power bases may be the key point of 
disagreement 


Reformers may want to use WTO 
membership to bring ministry bu- 
reaucrats into line, argues David 
Shambaugh, a George Washington 
University specialist in Chinese pol- 
itics. Ministries have sought to pro- 
tect their state-owned enterprises, of- 
ten by introducing laws aimed 
mainly at hobbling foreign compe- 
tition and by selectively enforcing 
laws, 

Beijing wants to join the WTO as a 
developing country, which some 
WTO members oppose. Members 
such as the United States argue that 
China is too large to join the WTO as 
a developing country, a status that 
would allow it to follow a less re- 
strictive set of rules and to implement 
them more slowly. 

Transparency of rules 
Beijing also differs with WTO mem- 
bers on other terms, including 
China’s enforcement of unpublished, 
restrictive regulations. The WTO 
contends that China must enforce 
only regulations that are openly pub- 
lished This would limit the use of 
guidelines such as ministry “indus- 
trial plans” which WTO members 
claim are used to restrict trade by 
foreign companies. 

The WTO also differs with China 
about its imposition of restrictions on 
trading rights. Now, foreign firms 
may import products but are restric- 
ted hi the distribution, retailing and 
servicing of those products. 

Other issues include tariff rates, 
which WTO guidelines restrict to 
less than 15 percent for developing 
countries and 5 percent for developed 
counties. China now has an average 
tariff rate of 23 percent which H has 
committed to reducing to 15 percent 
by the year 2000. 

The WTO also stresses the use of 
“sound science” in banning agricul- 
tural products. Members are required 
to use published, widely accepted 
scientific studies in restricting ag- 
ricultural imports. C.K. 


manufacturing base has 
caused Taiwan trade officials 
bouts of anxiety. Regardless 
of these concerns, investment 
has followed trade flow’s. 
About 10 percent of direct 
investment into China is from 
Taiwan, while Hong Kong 
accounts for about half of all 
investment in the mainland. 

Behind the headlines 
While newspaper headlines 
indicate that Taiwan-China 
relations periodically under- 
go rocky stretches accom- 
panied by bitter words and 
the occasional missile lobbed 
across the straits, reality is 
often quite different 

For the past decade, an 
unofficial thaw in relations 
has allowed more than 
30,000 Taiwanese businesses 
to pour more than S25 billion 
into mainland investments. 
Still, all ■wvestments of $1 


General Information 

Area: 

9,597,000 square kilometers 
(3,700,00 square mifes) 

Population: 

1.25 billion 

GDP per capita (1996): 

$666 

Real GDP growth (1996): 

9.7% 

Source: Datastream 


f 


nomic reality is following its 
own course. 

Even now, more than 
5,000 Taiwanese executives 
live in the Chinese port city 
of Xiamen on the southern 
coast and are responsible for 
investments worth some $2 
billion. The Xiamen govem- 
_ . ment has passed laws pro- 
million or more officially re- tecting Taiwanese investors, 
quire approval of tire Taiwan and China has set up 


government 

The Taipei government 
also bars investment in Hong 
Kong-based enterprises that 
are more than 20 percent 
owned by mainland Chinese 
interests, but Taiwanese of- 
ficials say this will be eased if 
Taiwan is admitted into the 
World Trade Organization. 

While politicos in Beijing 
and Taipei debate the form of 
their future relations, eco- 


Taiwanese investment zones 
that offer tax concessions. 

The loss of Hong Kong as 
a no-questiorts-asked trans- 
shipment port has forced the 
issue of trade between 
Taiwan and the People’s Re- 
public of China. 

Taiwan and Hong Kong 
inked a preliminary agree- 
ment in 1 996 that allowed air 
flights to continue. This was 
important because Tai- 


wanese businesspeople use 1 
Hong Kong as an entry point 
into mainland China. Later, -■ 
talks broke down, and the ^ 
final agreement was made 
just one month before Hong 
Kong was returned to - 
China. 

Shipping has also been the „ 
subject of debate, in this case 
foe sticking point was which • 
flags Hong Kong and • 
Taiwanese ships would fly , 
when they entered each oth- * 
er ’sports. 

A temporary solution has t 
finally been found: Hong . 
Kong ships will fly the Spe- 
cial Administrative Region’s 
bauhinia flag when entering • 
Taiwanese ports, while • V 
Taiwanese ships will fly no - . 
flag when entering the Hong 
Kong port. r . 

Christopher KufTei.- 




M 

Loci: 


If. ' 


e 


Er. 

UL:. 

”l‘T; 




Burning Coal, and Looking 
For New Energy Sources 

Foreign firms and prh’ate investors are to be allowed to run power plants. 

A 


Boeing and Airbus Battle for Market Share 


China's aircraft purchasing power 
has always been used as a reward to 
foreign countries for their political 
stance. Boeing's first 707 sales were 
a result of the ground-breaking 1972 
visit of the late U.S. President Richard 
Nixon. 

History played a rote again this 
March, when China bought five 777s 
worth $800 million during U.S. Vice 
President Al Gore’s visitlneartyMay, 
Airbus seated a deal with China to sell 
30 aircraft for $1.5 billion after 
France decided not to back an anti- 
China resolution at the United Na- 
tions Human Rights conference in 
Geneva in April. It is expected that 
Chinese President Jiang Zemin’s visit 
to Washington later this year will bring 
more orders to Boeing. 

China is one of the world’s fastest 
expanding aviation markets, with 
passenger and cargo demand grow- 
ing at an annual cate of more than 20 
percent Lacking the ability for 
massive aircraft production, China's 
aviation relies mostly on imports. Ac- 
cording to China's Civil Aviation Ad- 


ministration, which controls most of 
China's biggest airlines, including 
China Southern Airlines and China 
Eastern Airlines, China will buy 240 
new aircraft in the next five years. 

The market has been dominated 
by Boeing since the early 1970s. Hav- 
ing delivered 252 aircraft in the past 
24 years, Boeing claims a 60 percent 
share of the Chinese market fol- 
lowed tv European consortium Airbus 
Industrie and U.S. company McDon- 
nell Douglas. On Aug. 4. Boeing took 
over McDonnell Douglas, which for- 
ther strengthened its competitive- 
ness worldwide. 

Boeing and Airbus have been fart- 
ing for market sh^e in China despite a 
purchase freeze imposed by the CAAC 
two years ago, after hundreds of 
people were killed in a series of air 
accidents. The state wanted to allow 
time to train pilots and air traffic con- 
trollers and improve airport facilities. A 
new flight training center set up jointly 
by the CAAC and Airbus In Beijing will 
be completed soon. The center is 
equipped with flight simulators and 


computer-assisted training facilities. 

The first deal after the freeze was 
the $1-3 tHifion contract signed by 
Chinese Premier Li Peng with Airbus 
for 30 short-haul A320jets last year. At 
the end of last ye a - , Beijing announced 
that it would team up with a European 
consortium that includes Airbus Part- 
ners to build lOOseat aircraft, a proj- 
ect- Boeing had also bid on but tost. 

Airbus has won about $3 billion in 
new orders from China in the last 15 
months, and Boeing less than $2 
billion. 

Most analysts believe that Boeing 
and Airbus will continue to coexist on 
the Chinese aviation market because 
Beijingneeds the competition to seek 
the best deal. While Airbus's market 
share fs increasing, it has a long way 
to go to catch up with Boeing in the 
long-range-aircraft market, where 
Boeing toads with its 747. 

In May, China's central govern- 
ment tightened control over aircraft 
purchases, with new regulations pla- 
cingaW aircraft imports under the sole 
responsibility Of China Aviation Sup- 


plies Import and Export Corp. in 
Beijing. This means that political in- 
fluence will play an even bigger role in 
aircraft purchasing, since Beijing will 
determine the number and type of 
aircraft to be bought for each airline. 

“I think the decision is designed to 
let Beijing have more control on the 
Inside, rather than overseas suppli- 
ers, meaning provincial airlines will 
be less independent." says Stephen 
Miller, managing director of Hong 
Kong-based Trinity Aviation . “The pro- 
vincial airlines will continue to have a 
say because they are foe ones who 
use the aircraft. 

“Also, by combining orders from 
individual airlines, Beijing can get a 
better deal for a bigger quantity. The 
only effect on overseas suppliers will 
be in terms of prices. I think that, 
overall, the decision Is more positive 
than negative. Once Beijing places an 
order, the foreign supplier can be 
confident that the deaf will come 
through and that the financing is def- 
initely available." 

Angelica Cheung 


lmost everything in the garden is rosy 
for the Chinese economy, which is 
growing faster than any other in the 
world. An exception to the generally bullish 
view is the forecast for energy supply. The 
question everyone is asking foal no one can 
answer with any degree of certainty is this: 
Where will China get the energy to sustain 
and prolong its phenomena] growth? 

While its major oil fields in foe northeast, 
Daqing and Shengli, matured a long time 
ago, the Tarim Basin oil field in northwest 
Xinjiang province failed to yield any sig- 
nificant amounts of oil during prospecting 
drills. The predicted wealth of foe two new 
fields found near the prosperous Pearl River 
in southern China has yet to materialize, and 
the ambitious Three Gorges hydroelectric 
project is at least a decade away from com- 
pletion. Until then, China will rely on its 
extensive reserves of air-polluting coal as the 
major source of energy, with its central plan- 
ners workiqg on ways to deal with foe forth- 
coming crisis. 

With a population of 1 .25 billion, China is 
the world’s third- largest energy consumer, 
and foe World Health Organization lists six of 
its major cities among the 10 most-polluted 
in the world. Still, per capita use of energy is 
only 10 percent of that in foe United States. 

Now an oil importer 

After years as an oil exporter, China has 
become an importer, with the amount 
brought in due to rise substantially in years to 
come, as the economy grows in leaps and 
bounds. State forecasts predict that demand 
wnlrise to 200 million metric tons by the year 
zOOO: this year, the country will produce 145 
million metric tons onshore and about 15 
million onshore. 

China pinned great hopes on the Tarim 
Basin, which was claimed to contain between 
13 and _9 billion tons of reserves. But a 
number of overseas companies, disillusioned 
by harsh conditions and poor results, have 

pulled out, unconvinced of the potential. 
Power plants 

Meanwhile, the country has been actively 


pertise to improve output and efficiency. A 
restructuring of the energy sector, announced 
earlier this year, will pave foe way for foreign 
investment in power plants, putting an end to - 
foe state monopoly. Electricity Minister Shi 
Dazhcn pledged that the state would keep 
control of the national and local power grids, 
but that foreign firms and private investors 
would be allowed to rim power plants. 

China is planning to spend more than $ ! 00 
billion on power plants in the next five years, 
adding about 20,000 megawatts each year, 
figures that make attractive readme for 
would-be suppliers. When bids were invited 
for the second phase of a major plant in the 
southwest province ofGuangxi, a total of 3 1 
firms showed interest 

Gas companies are also targeting China, 
following in foe footsteps of BOC (formerly 
British Oxygen Co.), which now has 20 
operations in different areas, supplying spe- 
cialist industrial gases. 

Hydroelectric 

As foe energy debate continues, work on the 
controversial Three Gorges project — foe 
hydroelectric answer to at least some of foe 
enemy problem — goes ahead. The project 
will displace a million people, swamp 23.800 
hectares (58,800 acres) of arable land and 
close 650 factories and mines. Critics say the 
project will also lead to greater risk offlood- 
ing on foe Yangtze River and untold damage 
to the ecosystem. The project has become a 
test of character and will for the central 
government, which is determined to show it 
can plan and complete a project of such 
massive proportions. 

. less controversial scheme is a $2.8 
billion hydroelectric plant on the Yellow 

SEf a ^ ia< ^ ansdi ” which has received a 
3*43U million loan from the World Bank. 

. '^ ie coming decades will see China scram- 
bling to harness whatever means possible to 
sustain and expand its huge economic boom. 

A measure of the present and future demand 
for power can be taken by glancing at main 
city streets, ablaze with neon signs, car head- 
lights and shop displays. A decade ago. foe 
same thoroughfares were pitch dark and 




IE? 


f 

- 

*- 8 


/■: 

.v 


■o 


* 


encouraging overseas interest in the power empty once foe sun went down 
Plants, recognizing the need for outside ex- Mark Graham 





I 








U^S fBUILT FOR BUSINESS : CHINA 


* Mjn. 


'cat 




«’ Moves Afoot to Tame the Stock Markets 


\ ! i £ 

an 

V ••?*.*» 



Regulations and a rash of new issues are aimed at allaying speculation. 


S ince being launched in 
1990, China’s two 
stock markets have 
taken investors on a wild 
ride, driven skyward by ru- 
mors and sent plummeting 
by central government at- 
tempts to tether the Shanghai 
and Shenzhen markets to 
market fundamentals. 

f | In 1992-93,. sharp climbs 
[were sparked as international 
fund managers discovered 
China, with its unimaginably 
massive markets and capit- 
- alist zeal. In 1993 alone, the 
markets posted gains of 
nearly SO percent. Less than a 
year lata-, austerity measures 
and higher interest rates sent 
the markets tumbling, a con- 
dition that lasted into 1995. 
Since then, the markets have 




K'-'dl 


recovered, again posting 
sharp gains of 42 percent in 
1996 and more than 14 per- 
cent so far in 1997. 

As, Bs and Hs 
China’s markets follow a bi- 
furcated system in which A- 
shares are reserved for 
Chinese nationals, while B- 
shares are sold only to for- 
eigners. 

A third important way to 
invest in China shares has 
emerged as H-shares, sold in 
the Hong Kong market, have 
gotten a foothold. H-shares 
have seen spectacular gains 
in die past year, showing 
their sharpest appreciation 
just before Hong Kong’s re- 
turn to China. 

Despite the number of 




ways investors can access 
China’s markets, investing 
remains speculative, as 
opaque financial information 
and limited research leave in- 
vestors with little more than 
rumors to go on. This has 
been compounded by the 
centra) government’s at- 
tempts to rein in speculation 
and to keep fluids from banks 
and money targeted at its ail- 
ing state-owned enterprises 
from finding their way into 
the markets. 

In June, the central bank 
banned commercial banks 
from securities trading. The 
market immediately offered 
its opinion of this ban: The 
Shanghai market dropped by 
more than 6 percent in a 
single day. Shenzhen was 


!*wr ■» v - ■ 


down slightly less than 6 per- 
cent This was accompanied 
by sharply higher turnover, 
leading analysts to suggest 
dial the immense flows were 
illicit money fleeing the mar- 
kets. 

New stock issues 
These efforts to cool the 
overheated markets have 
been accompanied by an in- 
crease in die total number of 
new issues China’s securities 
regulators intend to float dur- 
ing 1997. 

The Securities Commis- 
sion of the State Council set a 
quota to float shares worth 30 
billion renminbi (S3.6 bil- 
lion) in 1997. This is double 
the number of new shares 
issued in 1996. The move is 
aimed at raising more funds 
for China’s listed firms. 

Cooling the markets 
Regulators also plan to in- 
crease the amount of shares 
to quell demand, throwing 
water on the overheated mar- 
kets. “Since the general sen- 
timent is negative, and 
people are expecting the gov- 
ernment to introduce mea- 
sures to cool the markets, this 
will have an effect of bring- 
ing the market down,” Al- 
exandra Conroy, senior in- 
vestment analyst at ING 
Barings in Shanghai, told 
Xinhua, the official Chinese 
l news agency. 



In June, the Ministry of 
Finance published detailed 
accounting standards for 
businesses. 

Known as the Disclosure 
of Relevant Party Relation- 
ships and Transactions, die 
standards atm to regulate in- 
formation disclosure by lis- 
ted companies. These were 
the first detailed accounting 
standards issued by the min- 
istry since 1992. This is _ in 
addition to a draft securities 
law. which is being vetted by 
the State Council before ap- 
proval. 

Educating investors 
At the same time, securities 
regulators are attempting to 5 
educate investors. In a _ 
speech before the Interna- 

April Re ^iou C °Zheiagqhig! P 

chairman of the Securities Ig 81 

Committee ot the State ”v’\ /\ /\ V 

Council, noted. “Hammering ; 3f; / >■ • . -i. 

an awareness of investment Ei &M Nl ■. 

ri«ks into the investor’s mind A 


HP& 


risks into the investor’s mind 
is the top priority at present, 
and we have to set up a com- % 
plete risk-control and man- 
agement system and fight 
vigorously against market ir- 
regularities of all kinds.” He 
indicated that regulation and 
standardization of the stock , 
markets are the long-term g - 
goals of the government. is ' 

C-K- g [ 


i.-. -rffb&gT' 

In 


''L^3»S 




. X >»y ■ 


Mii - 




^ 'V • wF r . ?***. T?? 

* K; • 
— -•rwrOTcnrrr,:^- i.; V 


Above, traders 
at the Shanghai 
stock exchange. 

Left, the new stock 
market buBding in 
Shenzhen’s new 
development zone, 
Pudong; brokers are 

moving in this month. 


f! -f Leaders 


In 1996, LG invested over USS9 billion to grow its business. 


un i-if ’•‘uiiuiiif 


A - 


\y • 


k ■> 

- 


T: v 

M'U 

U.s i 

h i 

V- 

3? • ' 

ik • ?“ * - 

•. .--e v . ‘-j, *>• 

^ f ; • 


Conducting a mnsacdon at Bankof Chine automate teier machetes h Shenzhen 


t < $ Banking Reins Are 
Loosened, Not Dropped 

l Credit cord availability widens , and eight foreign banks trade in renminbi. 


C hin a is undertaking an ambitious plan 
to modernize its banking system. In- 
frastructure is being. put in pto* for 
credit cards and national networks of auto- 
mated teller machines, while a number of 
foreign banks have already been granted li- 
censes to operate in renminbi, a currency mat 

banking facilities will be in good shape. 

Golden cards . ... „ _ 

The Chinese government has initiat ed a.so - 

. caUed Golden Card project, aimed at cr^mg 

nationwide automated teller irachmej^TM) 

networta and boosting bmk card us^Sev- 

eral local firms have been appointed as 
Golden Card pioneas, but 
. also getting involved in a sector traditionally 

•closed to foreigners T Hleis 

■ Hong Kong-based Joint ^ectrcmic letters 

Services (Jetbo) has established its first 


Traweaw* 


province-wide network m Guangdong 
province, which' has a population of 60 rad- 
lion people. The G-Network, as it is locally 
known, has been up and running for two 
years, with JetCo providing its software ana 
expertise to the local banks. 

John Tsang, assistant general manager ot 
JetCo, says the first stage has to establish 
metropolitan networks in China’s nugor de- 
veloped cities such as Shanghai, Beijmg, 
Shenzhen and Guangzhou (Canton). “But I 

am not so sure ofhow easy it will be in ml and 

rhtna and the northwest provinces, says 

Mr. Tsang. . ... - 

“Real credit cards are still a ranty m 
China,” with most consumers using debit 
cards, says Samuel Lau, manager ofbankmg 
services at Hongkong & Shan^ai Banlang 
Corp. But large international banks tike Hb- 
BC are keeping a watchful eye on China s 
credit canl development as important po- 
tential new business, ahhoughat present 
foreign banks are still excluded from dealing 
directly with local citizens. 

Forazo banks . . 

/1 Antrimic nvpr h^nldoE ODerations 



Others 

4t;03%> 


f. &,<&%'■' 


■ i.U 

ir 2T, 

. »» v 




- : _s*>. T - 




"i * i.- vr 


Hong Kong 

* 5^5%- 


■tyjsm. 


ariltaisiWUak 

SOW*****. rrVrrZ 
“'aw*" 



•?r - 1 




are gradually being lifted, previously, lore-en 
banks were required to bxiy fbrei^ curren^ 
through strictly controlled siqipheis sanc- 

tion^by the People’s 
- Now ^eight foreign bmiks — Stradart 

Chartered Bank, HSBC, Crtfoank, Tokyo& 
Mitsubishi Bank, Industrial Bmk of ta 
Dai-Ichi Kangyo, International Bank ofPans 
Sanv^ B yk-te vebea. 
granted licenses to conduct business m «m- 

Snbi within the Pudwg financiri devd- 
^Sient zone of Shanghai, a growing fi- 

n3 TTjf privileged licenses came with frm- 

Hations. The banks mu^awsizabte 
exchange operations, with &e eqtu valent ofj 
least 30^nltion renminbi ($3-6billiop) m had 

^ncies as casting w,*; 

rency transactions, and tiiey niustk^p 1 tee 

Ma, China analyst at Bankas Trust; 
SStiR still « vray 

maations of foreign banks,but, ?L^^^ ieD 
Science is felt, these ratios will nso 
Recently ta* authorities taftMUied foreign 
h^Shina P lann«l to 
Sst on inteibank ftmdmg by overseas 

banks to their China branches. 












PAGE 18 


INTERNATIONAL HERALD TRIBUNE, TUESDAY, AUGUST 12, 1997 


BUILT FOR BUSINESS: CHINA 


Telecoms Door Opens, Slowly 

Improving telecommunications infrastructure is a vital part of the economic modernization plan. 


W hile business doors swing open all over China, 
entrance to t be telecommunications zone is by 
selective invitation only. Foreign firms, only too 
well aware of the potential in the increasingly business- 
oriented country, have so far been inhibited in their efforts to 
break into the market 

A new competitor . 

A little ray of light for overseas firms came m 1995, when 
C hina United Telecommunications (Unicom) was set up to 
act as a competitor to the giant Ministry of Posts and 
Telecommunications (MPT), which has held a decades-old 

monopoly. . 

Earlier this year, approval was given for foreign compa- 
nies to make a direct investment in Unicom, providing the 
outside partner had a less than 50 percent stake. 

Attracting foreign capital is afcey part ofUnicom's plans to 
expand; at home it feces obstacles put in its way at every level 
by the MPT, which also has responsibility for telecom- 
munications rules and regulations. Nonetheless, Unicom has 
established itself in around 20 provinces and is pushing ahead 
wife grand plans. 


On-Line in China 

Nowhere in the worid is there more potential for internet 
subscribers than in China, a country starved for information 
and entertainment for many years. To date, Web-surfing 
has been confined to expatriate residents of the bigger 
cities and more affluent Chinese computer buffs. 

That looks set to change with the Introduction of China- 
Byte, a joint venture between Rupert Murdoch's News 
Corp. and the official Communist Party press, the People’s 
Daily News. The $2.5 million Chinese-character Web site 
was launched at the start of the year, with a prediction that 
it would breakeven on costs by year-end. Initially advertiser- 
driven, it provides details of trade and product devel- 
opments about software publishers and computer man- 
ufacturers. 

Like television, radio and newspapers in China, the site 
is censored and filtered. Authorities are notoriously sen- 
sitive about criticism that can be read or heard by the public 
at large. 

Official estimates say there are currently 40,000 In- 
ternet users among China's population of 1.25 billion. The 
vast majority has no access to a computer. By the turn of 
the century, state planners estimate there will be a million 
Internet users. 

Ch'maByte proved to be a hige consumer success 
during its debut period, with around 100,000 daily users 
during the first three months, mostly from inside the 
country. 

A joint venture involving the country's second tele- 
communications firm, Unicom, has also announced plans 
to provide internet facilities throughout the country. Uni- 
comSparkice already has three internet cates in the cap- 
ital, Beijing, and plans to open outlets in 10 more cities. . 

M.G. 


By fee end of this year; Unicom has predicted it will have 
paging or cellular networks across 100 cities, wife about 2 
million subscribers. 

Unicom scored another triumph recently when fee state 
council approved fee plan of two U.S. companies. Sprint and 
Metromedia, to finance fee building of domestic networks in 
three areas — Chongqing, Sichuan and Tianjin. 

As feat deal was being struck, MPT officials were re- 
affirming feat most of fee $12 billion die country was 
spending annually on building networks and long-distance 



fefcoffi, tte country's second telecoms company, 
pmScta It wi8 havo paghig or ceftoiar networks 
across 1QO cities, with abort 2 mSBon 
jriwribanilytttaMfofttejwr 

trunk routes would be self-financed A vice minister pre- 
dicted recently feat there would be an expected 20 million 
extra customers this year. Switching capacity stood at 100 
million lines at fee end of last year. 

Improving telecommunications infrastructure is a vital 
part of fee central government’s plans to upgrade, making 
China an economic giant by the middle of the next century. 
Planners are constantly revising the assessment of the num- 
ber of lines needed: The prediction for fee year 2000 now 
stands at 123 million, with a further 25 million cellular 
subscribers, three times the current figure. 

A look around fee newly wealthy coastal cities, wife their 
state-of fee-art telephone systems and smartly dressed yup- 
pies constantly on fee move wife cellular phones, gives a 
slightly misleading picture of fee country as a whole. 

Outside expertise needed 

In fee rural and interior areas of fee vast country, the 
infrastructure is desperately in need of upgrading. That kind 
of expansion requires outside expertise. 

An indicator of what shape feat will take came in June 
when Cable & Wireless sold a 5.5 percent stake in Hong 
Kong Telecom to China Telecom, a branch of the MPT, in a 
deal worth $ 1 .2 billion. 

Analysts predict this will give C&W, which retains man- 
agement control of Hong Kong Telecom, fee inside track in 
die race to fit out China with telecommunications for the next 
century. 

In May, China Eveibright Holding Co., also a Chinese 
state-owned firm and an investor in Unicom, had bought a 
7.74 percent stake in Hong Kong Telecom from China 
International Trust & Investment Corp., a joint venture 
between Hong Kong investors and fee Chinese govern- 
ment 

The telecommunications door should open wider, but 
slowly, say analysts. “I think China will change its policy, 
especially as it wants to join the World Trade Organization, 
but it will take time,” says Andrew Look of Prudential 
Portfolio Managers in Hong Kong. “It is still a virgin market. 
1 believe a big chunk of the population is still not accessible 
by phone or by radio. They will open up, but it will be slow. 
China is poor and still needs huge investment m its in- 
frastructure.*' M.G. 


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A repSca of fee Shmdagon Pagoda it Burma at an amusm ent park n Shenzhen. 

Mainland and Hong Kong 
Team Up to Promote Tourism 

China will benefit from Hong Kong's sophisticated marketing and research. 


T he resmtption of Chinese sovereignty over Hong 
Kong, in addition to providing a temporary boost to 
Hong Kong's tourism industry, is expected to lead to 
increasing cooperation between China’s maturing travel 
industry and Hong Kong’s extremely sophisticated one. 

Pearl River Delta 

Already, Hong Kong has teamed up wife South China in 
campaigns to jointly promote Hong Kong, South China and 
Macao as the Pearl River Delta. It is common for tour groups 
from Southeast Asia to visit all three during five-day trips. 
Theme parks and attractions in South China are included in 
Hong Kong’s latest “100 Days of Wonders” campaign, for 
instance. 

in April, the Hong Kong Tourist Association opened a 
branch office in Beijing, and it is expected that this will lead to 
greater cooperation in the future. This includes more so- 
phisticated marketing, more exhibitions, more market research 
and more insight into what will lure visitors to China. 

At fee recent International Travel Exposition in Hong 
Kong. Yang Wen Zhen, director of marketing and pro- 
motions for fee China National Tourism Administration, said 
that “fee close relationship between fee tourism industries of 
Hong Kong and mainland China has stepped into a new era. 
We deeply believe that the tourism industry of China will 
present in the world a new image in the coming 21st 
century.” Since China adopted its open door policy in 1978, 
many millions of international tourists have been lured by 
this huge country with its unique and rich history and culture. 
As a result, tourism has become one of China's fastest 
growing industries. 

51 million visitors 

In 1996, visitor arrivals reached a record 51.12 million, 
making China the fifth most- visited country in the world. The 


vast majority of visitors are overseas Chinese from Hong 
Kong, Macao and Taiwan, many of whom travel on frequent 
short trips for business or family reunions, but fee numbers of 
other international visitors are also growing rapidly. 

There were 6.74 million international visitors last year, an 
increase of nearly 15 percent over fee previous year. Rev- 
enues from international tourism reached $10.2 billion, 
ranking ninth in fee world. 

This year saw two new landmarks for China's rapidly 
evolving and maturing travel industry: fee launch of Visit 
China Year 1997 and the hosting of fee prestigious Pacific 
Asia Travel Association (PATA) conference in Beijing in 
April. Both have helped focus the attention of fee world 
travel industry on China. 

“Steeped in tradition and stunning natural attractions, 
China has been a destination that has sparked fee imagination 
of travelers over fee centuries.” says Lakshman Ratnapala, 
chairman of PATA. “From a business standpoint, as we head 
into fee new millennium, China's importance in fee global 
marketplace is growing both as a destination and as an 
emerging outbound market” 

The China National Tourist Association notes several 
trends in the way the country's tourism industry has de- 
veloped. . 

One is fee increase in visitors from within Asia. There are 
also fewer group tours and more individual travelers. While 
the number of travelers has increased, the length of stay has 
decreased, as tourists tend to take several shorter trips a year 
rather than one long one. 

The average length of stay in China was 10.3 days in 1990; 
in 19% it was down to 6.4 days. The number of trips of 
between one and three days and between four and seven days 
is increasing, while visits ofbetween eight and 14 days and of 
more than 15 days are decreasing. 

Paul Hicks 


Reform Needed in State Sector 

The government says it will speed up mergers and closings. 


Austrian Airunes > 


V isitors to households in major Chinese cities can 
expect to hear fee locals asking each other these two 
questions: “Have you been laid off yet?” and “What 
are you going to do now feat you are unemployed?” 

Tliis dinner-table topic reveals one of modem-day China's 
most serious economic and social problems. Lay-offs and 
closings by fee massive loss-making state-owned enterprises 
(SOEs) have led to large-scale unemployment 
Earlier this year, the Ministry of Labor admitted that 
bankrupt state enterprises had not paid, or had underpaid, 1 0 
million workers. A delegate of fee National People’s Con- 
gress said feat 6 million workers were unemployed and a 
further 19 million were surviving on “low incomes." China 
has a total population of 1.25 billion. 

In Shanghai alone, SOEs have laid off 1.05 million 
workers — 17 per cent of fee commercial city's urban 
population of 6 million — in just four years. The situation is 
equally bad in another industrial city, Shenyang, where more 
than 400,000 workers have met fee same fete. 

According to official figures released in June 1996, SOEs 
owed state banks 600 billion renminbi (about $72 billion), 
200 billion renminbi more than fee annual central gov- 
ernment revenue. Debts among SOEs amounted to a further 
900 billion renminbi. The real picture may be even worse. 

Restructuring planned 

How is fee government going to solve fee problem? In 
March, an editorial in fee Communist mouthpiece People’s 
Daily warned that a huge number of ailing state companies 
would be declared bankrupt The paper quoted fee State 
Commission for Restructuring the Economy as saying fee 
government would speed up mergers among large-scale 
state-owned corporations that were competitive and had 
good potential It said that in addition to allowing weaker 
firms to fail, other measures included mergers, forced sales, 
privatization and auctions of companies. 

A few days before that the government had announced 
that it would raise $80 billion, mostly through the domestic 
1 and foreign capital market to reform its 1 ,000 largest loss- 
making SOEs in fee next decade. 

This was a big step further than fee message conveyed in 
the work report of Premier Li Peng at the National People's 
; Congress earlier this year, when he insisted feat restructuring 
SOEs could not run counter to the party’s unshakable 
j principle of “retaining fee dominant position for state own- 
I ership.” 

Is privatization feasible? 

While admitting that privatization will be fee eventual solu- 
tion, most China experts do not foresee major shake-ups in 
1 fee SOE sector. 

“I think what they are trying to do is to grow out of the 
problem by putting more resources into the SOEs, so that 
they would still survive," says John Seel, analyst with Bear 
Stems, Hong Kong. “It is very hard to force a quick 
restructuring m fee state sector. Basically, the Chinese gov- 
ernment has a low tolerance for unemployment, for fear of 
social unrest” 

Even if the government allows privatization, another 




l^-“ 

I**-" 


question is who will buy these SOEs, many of which have • 
basically no value. The products they make have a limited ; 
market, which helps explain fee huge amount of extra * 
capacity in China Eventually, a lot of them will have to be i 
closed down. ] 

“Sooner or later, the government will allow more bank- ; 
ruptcies m the state sector. They are trying to do it gradually,” 1 
Mr. Seel says. “They are spending money to keep fee SOEs I 
surviving, but not enough to make them prosperous. Even- ■ 
tuaiiy, a lot offeese companies will lose so many workers feat ; 
when they are finally shut down, it would not affect too many * 
people.” A-C. '. 


Cmna Council for toe Promotion of International Trade 
The China Council for the Promotion of international Trade 
(CCPIT) is a national nongovernmental economic and trade 
organization whose mission is to promote China s foreign 
trade, attract foreign capital, introduce advanced foreign 
technology and foster various forms of economic and tech- 
nical cooperation with other countries according to the 
government’s policies and laws. Trade connections, legal 
advisory service, foreign trade and economic arbitration. 
Web site: http://www.ccpit.org 

Hong Kong Trade Development Council 
Trade contacts, China-related economic news, export in- 
formation. Hong Kong is the gateway to trade in southern 
China, the country’s most developed area. 

38/F Office Tower. Convention Plaza, l Harbour Road 
Wanchar. Hong Kong. ~ ’ 

Web site: http://www.tdc.org.hk 

CmnaPaqes 

China news and China business information: trade and 
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sports. The home page has an Excitebased search engine. 
Web site: http://www.chinap8ges.com 

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1 







PAGE 20 


^ flmliiSEgrUwne^* 

Sports 



TUESDAY, AUGUST 12, 199 1 


World Roundup 


A Few New Faces Emerge in the Most Ancient of Sports 


DNA Test Links 
Albert to Accuser 

Sperm and saliva found on the 
woman who has accused the U.S. 
sportscaster Marv Albert of assault 
c ontain genetic material consistent 
with his DNA, a state crime lab said 
Monday. 

The samples recovered from the 
woman's underwear and from bite 
marks on her back were tested 
against a blood sample provided by 
Albert 

The 42 -year-old woman accused 
Albert of attacking her in a Virginia 
hotel room Feb. 12. The woman 
told the police that Albert threw her 
onto a bed, bit her back repeatedly 
and forced her to perform oral sex. 

Group Claims Bomb 

OLYMPICS An extremist Swedish 
group claimed it planted last week ’s 
bomb that destroyed part of Stock- 
holm's Olympic stadium, and 
warned it would continue the at- 
tacks unless Stockholm withdraws 
its bid for the 2004 Olympics. 

"We are the ones who bum and 
blow up s ports arenas." said a mes- 
sage to ITT, the national news 
agency. 4 ‘ We have large reserves of 
explosives, automatic weapons and 
ammunition. Do not doubt our de- 
termination and ability/' 

The note, which was signed 
“We who built Sweden,” said the 
Olympics would cost too much. 

"If Sweden is to arrange the 
Olympics, everyone involved in the 
preparations and arrangements will 
be our targets. This includes ath- 
letes and audiences,” the note 
said. 

Swedish police said the note 
probably was nor written by those 
responsible for the blast 

The predawn blast on Friday was 
the eighth attack linked to the city's 
Olympic bid since May. (Reuters) 



International Herald Tribune 

A THENS — Early in the next 
century someone might recall 
the nights when Hicham Guer- 
rouj of Morocco began proving himself 
as one of the great middle-distance run- 
ners, when Daniel Komen won the first 
of many gold medals at 5,000 meters 
and beyond and when Marion Jones 
succeeded Jackie Joyner-Kersee as a 
role model for women athletes in Amer- 
ica. 

The 6th IAAF World Championships 
will be better appreciated from a dis- 
tance. These days it is too easy ro crit- 
icize anything that fails to overload the 
senses instantaneously. The champion- 
ships which concluded Sunday were a 
disappointment in their failure to es- 
tablish any world records — something 
that happened only once before, at 
Rome in 1987, after Ben Johnson’s 100- 
meter record was annulled in his scandal 
a year later. 

If the championships failed to pro- 
duce a singular compelling perfor- 
mance, they provided all kinds of emo- 
tional farewells and promising 
introductions, h was sad to realize that 
Joyner-Kersee, who is retiring next 


World Athletics / Ian Thomsen 


year, was going out with a fifth-place 
long jump; that the men’s long jump 
was relatively uninvolving in the ab- 
sence of Carl Lewis; and thai Merlene 
Ottey of Jamaica, ran out of energy as her 
midway lead in the 200 meters petered 
out to a bronze medal. But at 37 that 
medal was a victory in itself for her. 

Michael Johnson, the American 
“wild card” of the meet, held onto the 
400 meters title despite injury. Javier 
Sotomayor won his third straight high 
jump title for Cuba and Lars Riedel, the 
German discus thrower, won his fourth. 
And then there was Sergei Bubka. No 
other man has ever won a world cham- 
gold medal in die pole vault. 


Bubka owns all six of them. 

"My participation was a big risk be- 
cause pain in my Achilles tendon is still 
with me,” said Bubka, who was pre- 
vented from competing at Atlanta last 
summer because of the injury. "It was 
not my best title, but it was the most 
difficult. I have done only three training 
sessions in pole vault this season, but 
when I decided to participate, I was 


Triumph and Sorrow 
As Quigley Wins at Last 


Mari. J TcmlOTbe Aaanciwd Prat 

Monica Seles racing to make a 
return to Lindsay Davenport 

Seles Outlasts Davenport 

tennis Monica Seles fought off 
a match point in the second set and 
capitalized on Lindsay Daven- 
port’s third-set collapse to win the 
Acura Classic in Manhattan Beach. 
California, 5-7, 7-5, 6-4, Sunday. It 
was her first title this year. 

• Pete Sampras beat Thomas 
Muster of Austria. 6-3, 6-4, to win 
the $2.3 million ATP Champion- 
ship in Mason, Ohio, on Sunday. It 
was his fifth title this year and his 
49th career ATP Tour victory, ty- 
ing Sampras with Boris Becker for 


most tides among active players. 

op-seeded Felix Mai 
Spain beat 


• Top-seeded Felix Mantilla of 
Magnus Gustafsson of 
Sweden, 6-4, 6- 1 , in the final of the 
San Marino International to capture 
his fourth title of the year. (AP) 


New York Times Service 

JERICHO, New York — Dana 
Quigley was celebrating as joyously as 
any winner of a golf tournament has. 
and deservedly so, after working his 
whole life toward this moment 

Quigley had just gained a dramatic 
playoff victoiy in the PGA Seniors' 
Northvilie Long Island Classic. After 
throwing his hat into the crowd, hugging 
his wife and receiving the trophy, his 
triumphant walk to the clubhouse was 
interrupted as he was handed a phone. 

Quigley took the call and then col- 
lapsed alone on the grass in tears while 
well-meaning fans continued to shout 
their congratulations. 

His brother Paul was calling from a 
hospital in Providence, Rhode Island, 
with the news that their father, Wallace, 
had died during the afternoon at the age 
of 82. He had had cancer for 10 years. 

"Oh man. I didn’t do it soon 
enough.” Quigley said, sobbing. He 
paused and added under his breath as he 
struggled for words, "God, this one was 
for him." 

It was a heartbreaking end to an af- 
ternoon that Quigley, 50, had waited so 
long for. He won his first Tour event by 
beating Jay Sigel on the third hole of a 
playoff. 

A stint on the PGA Tour from 1978 to 
1982 brought him a lone highlight: a 
record round of 61 in the 1982 Greater 
Hartford Open. With a tendency to 
spend too much time in the bar after a 
round and less than $2,000 in earnings, 
he relumed home to Massachusetts, as a 
club professional. 

His father worked beside him, in the 
golf shop at the Crestwood Country 
Club, for the last 13 years. Quigley quit 
drinking, and the two dreamed of this 
victory. 

"I always told him I was going to win 
one for him and buy a house for him on 
the water in West Palm Beach,” 
Quigley said. "That was our standing 
joke. I just wish he’d have been here for 
it 

“This is supposed to be my happiest 
moment ever. It probably is. His dying 
is going to make me remember this day 
forever. It’s funny that God would work 
in this way, take his life and give me 
mine ail in one day. 

"He was really suffering a bit this last 
time. I’m sure he’s in a better place. I 


just wish,” he said, pausing to regain his 
composure, "I just wish that he could 
have seen me win , that’s all.” 

Quigley earned a spot in the tour- 
nament by winning the Monday qual- 
ifier. He considered staying at his fa- 
ther’s bedside, but his father urged him 
to play. 

The victory gives Quigley an exemp- 
tion into every Senior PGA event for 
one year. It was the pressure of playing 
for that exemption, and the $150,000 
check, that had Quigley banting his 
nerves. 

On the first playoff hole Quigley had 
a four-foot pun for victory but missed. 
He won two holes later sinking a two- 
footer for par as Sigel made a bogey. 

”1 choked on the last putt on the first 
playoffhole/’Quigleysaid. "Whenlgot 
to this position, I blew I'd choke some. 
I've wanted this too long not to choke. 

Then he left the interview room and 
walked out to the putting green. Without 
a word of his misfortune, he signed 
autographs for the fans who waited. 

• Vijay Singh shot a 6-under-par 66 
Sunday to overtake Ernie Els and win 
the Buick Open in Gran Blanc, 
Michigan. Singh finished at 15-under- 
par 273, four strokes better than Els, 
who shot a 74. and tied with Tom Byr- 
um. Russ Cochran, Brad Fabel, Joe Oza- 
ki and Curtis Strange for second place. 

Singh left behind a strong field warm- 
ing up for the PGA Championship, 
which begins Thursday. 

Tiger Woods, finished tied for eighth 
at 10 under par to earn $43,500 giving 
him $1 .82 1 ,895 for the season, the most 
ever on the tour. 

■ U.S. Wins Walker Cup 

John Harris won twice for the second 
straight day and scored the clinching 
point as the United States routed Britain 
and Ireland, 18-6, at the 36th Walker 
Cup, Reuters reported from Scars dale. 
New York. 

Harris, a holdover from the U.S. team 
that lost the cup in 1995, beat Michael 
Brooks. 6 and 5. in the first singles 
match completed Sunday afternoon. 
Harris, went 4-0 in the two-day match. 

The Americans led, 1H6-4V5, after 
winning three of four matches in the 
morning and then took 6V6 of a possible 
eight points in the afternoon singles to 
win by 12 points. 


CROSSWORD 


ACROSS 
i Poker holding 
s Study for finals 
9 Shaping 
machine 
14 ‘Crimes & 
Misdemeanors’ 
actor 


is Wife of Zeus 
(6 Flynn of 

-Captain Blood - 
17 Fast 

29 Land, as a big 
one 

si Late Chairman 
22 Blood supplies 



12 Are. George V, 75008 Paris 
Reservation : 
m 01 47 23 32 32 - Fax 01 47 23 48 26 


23 Long, longtime 
28 HaH-of-Famer ' 
Drysdale 

27 Swift , 

38 Didn't face the 
enemy 

38 Chow down 
37 Like o Jaguar or . 
Miata 

3a Was in a play 

41 Ms. alternative 

42 raving mad 

44 Deutsch. here 
*4 Swiss peak 

4e Society page 
word 
49 Reel 
aa Fat farm 
54 Pouting face 
■b 'Dance On Little 
Girt* singer 
*9 Piercing tool 
« Opera house 
ones 
98 Quick 
«s Non-earthling 
ee Otherwise 

70 — — Stanley 
Gardner 

71 Old-fashioned 

72 Fate 

73 Aussie hoppers 


DOWN 

1 Henry Vlll's 
sixth 

2Not into the 
wind 

» Not In use 
4 Criticize harshly 
» Hong Kong 
residents, now 

a 

Speedwagon 

7 Calls I9y family 

8 Symbol of 
Jewish 
resistance 


9 Hawaiian 
garland 

id Fine or liberal 
follower 

11 ’How r 

12 Frost 
12 Singer 

Fitzgerald 

18 Best Picture of 
1958 

19 They may need 
coloring ata 
salon 

2« Deception 
29 Smalt bites 

27 Fort . N.C. 

22 Indy entrant 
29 Prelim 
3D Horse stall 
covering 

31 Go bad 

32 Neighbor of an 
Afghani 

saSorethroal 
cause, briefly 
34 Lithe squirts, so 
to8peafc 
3D Big bird 
40 Drops bait 
aa Brickbat 
4o Like some 
stocks 

47 Bit of math 
homework 
so Acted servilely 
si Hang ten or 
shoot the curl 
82 Medicine man 
» In the distance 
M Aswan's nver 
si Make an afghan 
sa 'Hard Hearted 
Hannah’ 

composer 

60 Composer 
Schilrin 

DC Beach. Ra OS Brian ot rock 

62 Norse capital music 

64 Tom Jones’S 67 Prefix with 



© Neu> York Times/Edited by Will Shortz. 


Solution to Puzzle of Aug. 1 1 


■ a Lady - 


hobo anaa □□□□a 
naan ansa aaama 
□hod naan aanaa 
hob anaDaHaaciaa 
nasana otaan _ 
□moans asanas 
sanaa Banna aaa 
hqbq Bnaas aaas 
□an □□□hq □□□33 
□QscjHm aaaass 
nasa aaaasa 
aaasaannHEia sms 
□anacj ansa □□□□ 
uiHsss aaaa atnaa 
smssa ssaa asss 


going only for the gold. I followed my 
strategy without any deviation from 
it.” 

Now 33, his winning vault of 6.01 
meters was 13 millimeters short of his 
own world record. 

“I hope to continue until Sydney in 
2000, since I love sports and I was born 
to be an athlete,” Bubka said. "The 
audience wanted the world record, but L 
will ask them to understand. I don’t even 
know bow I am going to walk tomor- 
row.” 

T HE NEXT generation of Bubkas 
is now reaching its prime. It in- 
cludes the 800 meters champion 
Wilson Kipketer, the American 110- 
meter hurdler Allen Johnson and Haile 
Gebrselassie of Ethiopia, who had to be 
ordered to Athens before he ran away 
with the 10,000 meters. 

The next multimedia star might be the 
highly expressive Ato Boidon of Trin- 
idad and Tobago. At 23 he has already 
been through some difficult talking 
points: the Olympic 100 meters when 


Linford Christie refused to leave the 
track after false-starting twice, psycb- 
ing-oot Boidon. followed quickly by the 
200 meters and Michael Johnson's best 
impression of Bob Beamon — with 
Boidon trailing in third both times: and 
the 100 meters of these championships, 
when Boidon ran the second-round in a 
spectacular 9.87 seconds, predicted he 
might not break 10 seconds again in the 
remaining two rounds, and didn't. In die 
final he cramped and came in fifth. But 
even that didn't shut him up. 

"I told him not to do too much talk- 
ing.” said John Smith, the Californian 
who coaches both Boidon and Maurice 
Greene, the American who won the 100 
meters. “Going into a championship 
nothing's ever easy. You go in saying 
this is what you should do, this is what 
you're going to do, bat you don’t know 
how you’re going to do it.” 

Despite his latest disaster in the 100 
meters, Boidon didn't change his ap- 
proach through four rounds of the 200 
meters. Another defeat might have 
scarred him. Now he might blossom. 

“There were fresh faces and they 
were just doing something different,” 
Smith said of the new sprint champions. 


"For such a long time we had the sam§ 
people, the same people. Doing tire 
same things, saying the same tiungs^arg 
not really putting any particularly fresB 
approach into the sport.’’ 

This meet was difficult because many 
of the best stars didn’t have it in them 
after peaking last year for Atlanta. Tire 
next world championships will be m 
Seville in 1999. With next season dfc 
voted to nothing more dramatic than.' 
making as much money as possible’*- 
from the European and Asian circuity, 
those world championships should see 
everyone at their best again. _ . 

The last observation will come from 
Smith. . 

He happened to be standing in aq 
office last weekend, overlooking the old 
Panathinaikon stadium, built with its 
archaic long straights and narrow turns 
for the first modern Olympics in 1896. 

"I was out there looking at that,” hg 
said. “I was thinking, this is like thg 
races we used to have as kids — go oat 
to the flag pole and run back.” . 

He described the turn with a hooking 
motion of his arm, the most progressive 
coach in an otherwise ancient bust; 
ness. 



Sena VabtuganaMjcncc Frencc-PifM 

CLEAN BOWLED — Nayan Mongia, batting for India, falling Monday to the bowling of Muttlah' 
Muralitharan of Sri Lanka as the wicketkeeper Romesh Kaiuwitharanain looked on. Saurav Ganguly made’-]' 
the top score of 147 runs as India was all out for 375 runs on the third day of the second test in Colombo, for *\ 
a first innings lead of 43. At the close of play, Sri Lanka was 77 for one wicket in its second innings. 


Scoreboard 


BASEBALL 


Major League Standi ncs 

AMS M CAM LEAGUE 



EAST DIVCION 




w 

L 

pa. 

GB 

Badimore 

72 

41 

■637 

— 

New York 

68 

47 

59 1 

5 

Boston 

58 

40 

492 

I6 1 '.- 

Detroit 

55 

60 

478 

18 

Toronto 

55 

60 

■478 

IB 


CENTRAL DiWSTON 



Cleveland 

58 

55 

513 



Chicogo 

56 

59 

43/ 

3 

MBwaukee 

56 

59 

.487 

3 

Minnesota 

St 

65 

440 

8Vj 

Kansas City 

48 

66 

471 

iO'r 


WST DfVSION 



Anaheim 

66 

51 

564 



Seattle 

65 

51 

5M 

S 

Texes 

55 

62 

470 

11 

Oakland 

47 

72 

J9S 

20 


NATIONAL UAMI 


and Malheur. Levis (7); Wervjcrt Groom ML 
A. Small (7). Mahler (7). Tj Mathews tG). 
Taylor (9) and Molina Moyne CBl. 
W— Taylor, 3-4. L— Wickmon. 6-5. 
HR— Oakland, Lesher 11). 

Second game 

Milwaukee 005 030 100—9 14 1 

Ocddand 001 ill 001—5 10 0 

Florin. Adamson 16), Fetters (9) and Levis; 
Haynes, c. Reyes (51. Johnstone (7). A. Small 
CBl and Moyne. W— Florie. 3-3. L— Haynes, 
0-2. HRs— Milwaukee Banks (1). Oakland. 
Lesher (2). Brtfo II}. 

Chicago TID 000 000—2 0 I 

Seattle 000 000 too— 1 3 1 

Drabek, C Costirto (9). McEJroy {91. 
Vjnchnet (9) and Fobregas; Ol rvnres. Chartl on 
(7J. StoaimO (91 and Oa Wilson. W— Orabek. 
9-7. L— Gfhrara 6-7. Sv— Karchner (4). 
HP — Seattle Griffey Jr (36). 

Baft) more pot 010 020—4 7 I 

Anaheim 010 001 100—3 b 0 

Key. A. Ben iter C7). RaMyers (9) and 
Hoiles. Webster (9); K.HBL DaMay Ml- 
James (81, Hath (9), P. Harris (9) and 



EAST Division 



Td. Creme. W — A. Benltoi 2-0. L— James. 4- 


w 

L 

Pa. 

GB 

4. 5v— RaJAyere (34). HRs— Baltimore. 

Atlanta 

74 

45 

-622 

— 

ByAtaersort (13), C. Ripken (14) Anaheim. 

Flan da 

68 

48 

586 

4V| 

Salmon Ql), TO. Greene (6J 

New York 

65 

51 

5cfl 

7S 

NATIONAL LEAGUE 

Montreal 

59 

56 

513 

13 

Florida 008 101 000 2—4 9 2 

Phitadelptka 

40 

75 

■348 

32 

AttaltO 000 000 020 6—2 * 1 

CENTRAL DIVISION 



(10 Innings) 

Houston 

63 

55 

534 

— 

Saunaere. Rawed (8). Nan (10) and C 

Pittsbwgh 

57 

61 

483 

6 

Johnson. Zaun (10); Gtavine. C Fax (B), 

SL Louis 

53 

64 

■4S3 

9 1 -, 

Cot her (9), BtetedU 00). Embreo (10). 

Cincinnati 

50 

65 

4J5 

11 w 

MHtwa« OOJ and J. Lope: W— PoweR. 3-1 

Chicogo 

47 

71 

-399 

16 

L — BiotecM 3-7. Sv — Nai (29). 


WEST 0 [VISION 



HRs— Florida, BanDla M3i, Canine (10). 

San Francisco 66 

52 

559 

— 

Las Angeles 000 000 001 -1 4 3 

Los Angeles 

63 

54 

538 

2'a 

Ctacbwfl 203 111 ota — B 10 1 

Colorado 

57 

62 


9S 

Astarta Guthrie IS), Kadlrakv m. T. Worrell 

Son Diego 



479 

ra 

(8) and Prince Remiinger and Tatibensee. 

SUNDAY'S UNBCOUS 


W-Remtivfer. 5-4. L-Astoda. 7-& 

AWE RICAN LEAGUE 



HPs— Cincinnati. Stynes f ) ), B Sanders (15). 


Leskanic (7), Dtpato ( 9 ) and Manwartng. 
VV — Leskanic 34). L— M. Wriklns. 7-1 
$*— Dlpoto ( 6 ). HRs — Pittsburgh. Sveum 
POL Wort (2). Cotorooa, Bichette (10). 


CRICKET 


SBJlAMtCAVS. INDIA 
SECOND TEST, 3RD DAT 

Sn Lanka 1st innings: 332 all out 
India 1 si Innings: 375 all out 
Sri Lanak 2nd innings: 77-1 


NFL Pbbseasow 

SUNDAY'S BIEVLT 

Miami 21, Chicogo 14 

The Pheseasow AP Top 25 

The Tbp TWcnty Five Mams in Thu As- 
sodmed Press pre-season college footfcw 
P°h' with llrst -place votes in parentheses. 
1996 records, total points based on 2s 
points tor a first place vote through one 
point lor a 25tn place vote ana ranUna In 
1986 final poll: 

Record 

11-2 


2; Brad Elder, US. def. KeBh Nokia GBit 2 
and l. 

John Harris. U-S. del. Michael Brooks. 
GB&L 6 and 5; Buddy Monroes Ui, dej. 
David Paris. GB&L 4 and 3f Duke Dddiet 
U-S.def.Gcry Wotstenhotma GB&L 2 atuH ; 
Steve Scott U5. det. Richard Coughtth. 
GB&I, 2 and I. 

RNAL RESULT 

Untied States 18. Britain-! reiand 6 

Butcic Open ; 

Leading fatal score* S un day treat the 
mlWon Stride Open, played Sunday at the 
7.105- yard, par-72 Wanridr HH* OoH % 

Country Ckfcin Grand Blanc, IDcNgm ' 


Vqov Singh 
Russ Cochran 
Tom Byrum 
Joe Dzaki 
Bred Fabel 
Ernie Eb 
Curtis 5 Irange 
Tiger Woods 
Dan Foreman 
Roc co Mediate 


67- 73-67-66 — 273 

68- 69-73-67—277 
72-68-70-67—277 
67-71-7069— 277 
6967-7071-277 
6863-72-74-277 
7 2-6668-71—277 
7268-7068-278 
686 7-73- 70-778 
70-7167-70-278 


Detroit 

Toronto 100 010 000-2 6 0 

J u. Thompson and Cosonova WalbccA (81; 
Person. Plesac CBJ and B.Sanftogo. 
W— J u .Thompson. 11-8. L— Person, 5-8. 
HR— Detroit Hamelln 114). 

Terns 20? in 020-7 9 t 

Oev aJc nd 000 130 003—6 13 1 

Santana BaOes (5). WhBasldc f6). 
Gunderson (8). WotftMand (9) and I. 
Rodrigues Juden. A Lopez (7), Plunk (9) and 
S. Alomar. W— Whites kie. 2-1. L— Juden, 0-1. 
Sv — Wettctond OS). HRs— Taras. Greer (18). 
Ju. Gonzalez C2s), L Stevens (12), Ncwson 2 
(10). C level and. Giles (I5L Justice (22). 
Kansas Cry ooo 200 020-4 9 a 

Boston 002 020 02* — 6 10 1 

Appier. Wh (sonant (5). Olson (6). Cavan 
17). Carrasco (8) and Mocfartanc, Gordon, B. 
Henry (7). Corel (8) and Hctwbcrg W-CoreL 
3-1. L — Carrasco* 1-2- HR — Boston. 
GanJaparra Cl). 

Near Tbit »» «« Ml — 9 u 1 

Minnesota 002 002 101—6 13 2 

Kn. Rogers, Mendoza 14). Ncfcon (7). 
Stanton (7). ffL Rivero (W and GJrardt; 
TreJAWer, Rltdric Q). Trombley (Bl, 
Guartodo (8). Aguilera (9) and Srcmoach. 
w— Mendoza 4-4. L— Tin -Miner, 0-3. 
Sv— M. Rivero (361. HRs— Hew York, Curts 
HD). Minnesota, StahwkHc (91. 

First game 

MUwmkee WO 001 002—3 II I 

Ookkatd 000 007 T0I-4 10 0 

Karl Fetters (7), Vitlone (7), Wick man (9) 


— 120 000—8 15 0 
SI. Louts 000 000 000—0 3 0 

SchlBku] and Parent; Moms Petkossck 
(4), Bcdren (7). Eckcrstey i9) and DifeUce. 
W-SOhmng, 12-10. L --Monts. B-7. 

HR— Philadelphia Rolen tl 7). 

Huastoa *00 130 M0 — 11 14 2 

Mew York 031 000 400 — 8 II 3 

kHe. J. Cabrera (81. T. Martin (8) and 
Ausmuv R.Reea Acevedo ( 3 ). Lidle (Si, 
Wendell [B>. Jo. Franca (2) and Pratt. 
W — (6-3. L— P. Peed, 10-5. Sv— T. 

H * s—Hw ' s,on ' DeBefl (8). Mew 
York. Qferud 2 (16). 

S- Francisco OID 200 000 ottj— * 12 0 
Montreal 070 ooo 010 000— 3 11 1 
02 Marines) 

Ructer, R. Hemonucr i8). Beck (8). P 
Rodriguez 1101 , Tovarez ( 10 ,. 0 Henry 02) 
and 3. Johnson; MiJoRiKpn. Mine f5l. 

nrn lBrt M T ,^ d ' 8l ' Urt>,na D - v ” r! ' 

c°n d ” ,17 ’ nnd WWgor. 
W-Tanuw, 5 X L-M. Valdes, 3-X Sv-O 


1. PcnnS). (21) 

2. Florida (12) 

3. Florida SI. (71 

4. Washington fioi 

5. Tennessee (8) 

6 . Nebraska (4> 

7. N. Carolina rai 

8. Colorado (31 

9. Ohio SI ill 

10. LSU 

U. Noire Dome 

12. Texas 

13. Miami 

14. Mlclugan 
IS Alabama 

16. Auburn 

1 7. Syracuse 

18. Stanford 

19. Brtghqm Yuunq 

20. Clcmson 

21. Iowa 

22. Southern Cal 

23. t.anvas St. 

24. Wisconsin 
75. Michigan SI 


12-1 

111 

9- 3 

10- 2 
11-2 
10-2 
10-2 
11-1 
10-2 
&3 

8- 5 

9- 3 
8-4 

10- 3 

8- n 

9- J 
7-5 

14-1 

7-5 

9-3 

t6 

9-3 

86 

6-0 


Pis 

1,5*6 

1,548 

1.507 

1.484 

1-480 

1.442 

1.333 

1J02 

1.172 

14796 

1.071 

1.042 

820 

797 

673 

592 

585 

533 

375 

352 

347 

219 

210 

198 

148 


17 



phial 

Pde Sampnis OL United Stated det 
Thomos Muster (5), Austria. 6-3. 6-4. _ 


FMAL 

Todd Wood bridge and Mark WoodforteDL 
Australia tfef.MatfcPtiBppoutsis retd PflMc* 
Potter (7), Australia 76 (*6L 46 6-4. 


FINAL ■ 

Morten Seles (». Untied States, det Lindsay 
Oownport ML United States. 57, 7-& 64. - 


FINAL 

Yayuk BasukL Indonesia ondCaroSne Vb. 
Nettrertanda det La rtoaNehand, Latvia and 
Helena Suhova ( 4 j, 7-6 (9-7), 6-3. 


Henry (31. 
5an Mega 
Chicago 


010 mo lot— 4 6 0 
012 OH 000—3 11 | 
1 '»• Hbtfmor, (01 and 

Ruhertr^Fosicr. Poiferean 171 . BonerttaU 

BDChtter. 2-5. 


w Seurats. 

h^rS 1 * ” (28). 

MU ^ crSU. ffl ^i. G - Vouohn tl3 ‘- PUhcrfy 
(6j. Chicngo. L Johnson (2) 

2S? 1 jsi 3 :° » » 

DTs — 8 13 0 

Srfimlai. M W.IMIK 17) and Osik. R BaS,.,. 


T<s"n^rt uCLA» T 1T ,1& V| rtlnra 

msm 


« SCAROfeau. M-T_ 

HN«US 

GB&I. liaivcd ^ Wrt50n ' 



AMERICAN LEAOUC 

DETcarr— Put RHP maw Moabtar on 
JS-day disabled im. retroactive to Alig. 7. 
Bought contract of RHP EdtfieGaBtord tn»p 
Toleaa IL. 

OAKLAND-Pw RHP Stove K®u“» on IS- 
daydbahledist retroactive la Aug.6. Recalled 
OF Jason McDonald Irere Edmonton. PCE. 
Optioned IF Tony Baflfeta to EdaniHn. 

TRXAS-Optloned RHP Eric Moody to 0* 
totem a AA. Acflyated RHP JtfBo 5artBmr 
ham 15-day disabled list. ■ / 

KATWNAL LEAGUE ' S 

ATLANTA— Signed RHP Greg MdddlRlD S' 
year confrod raterebn. , 

N.Y. METS—Op darted RHP Juan Acevedo 
to Norfolk. IL Recdted INF Sham Gfceri 
rian Norfoih. 

st. LOCHS-Adfiated OF BrtaoJonKW flo» 
15-day disabled HsL Optioned OF Scarbor- 
ough Green to LoulwiOaAA. 

saw PiEBO-Annoo n eed irt lre rowt of LHP 
Danny Jackson. 













PAGE 21 


SPORTS 


In Chicago, 

N * A Duel to Play 
% Quarterback 


~~ - iP .'•?} 




£ * - : • 

V -• ■ The Associated Press 
MIAMI — Hie quarterback t 
for the Chicago Bears is now of 


r . 

■■■ jj/t 
. ■•iS' . 
-it' 


siticm 

:ially 


-After the Bears lost an exhibition 
game to the Miami Dolphins on Sunday 
21-14; the Chicago coaches said the 

y NFL Roundup 


between a 
a one-time 


3 


-■ /■ 

- J s' S .'I 

. ; i!S 

.-‘S! 


kjobwasa toss- 
; Rick Mirer, 
stirter, Erik Kramer. 
frMirer, who has gotten the majority of 
die playing time in the preseason, finally 
gayed a solid game for his new team 
and even showed some-scrambling abil- 
ity. Hie shook off a first-possession in- 
terception and completed nine of 12 
for 69 yards mth one TD and one 


- ‘^tB 


..'• r ^pv 

‘■SsT*-.- 

. ’’'WSft'f 
■ - %■ 





mum 


r The quarterback was acquired from 
Seattle in the offseason for a first-round 
draft pick. 

„• '-Kramer, coming back from a serious 
r&ck injury, completed eight of 12 
passes for 70 yards, playing only the 
second quarter. He had a drive cut short 
when one of his receivers, Curtis Con- 
Why, dropped a fourth-down pass with 
the Bears on the Dolphins’ 11. Both the 
Dolphins' quarterbacks both looked 
strong. Dan Marino completed 1 2 of IS 
gasses for. 129 yards and one touch- 

f down. Craig Erickson completed eight 
frf 11 passes for 122 yards. 

( Thenewsfor quarterbacks elsewhere 
was mixed after the weekend’s games. 

J John Elway of the Denver Broncos 
{faew in practice Sunday for the first 
time since rupturing his right biceps 
[endon. He said it felt good and added, 
•‘there’s probably a chance” he would 
ty for the Broncos next Sunday in 
ir exhibition game at New England. 

* Elway said he threw 50 to 60 passes to 
wide receiver Patrick Jeffers. 

J “I’d like. to get some good playing 
time this weekend,’ ’ Elway said. 
i But both Mark Brunell of the Jack- 
sonville Jaguars and Kerry Collins of 
{he Carolina Panthers could be out for a 
frhile -with serious injuries suffered in 
exhibition games over the weekend. 

\ Brunell. who carried the Jaguars to 
(be AFC title game last season in their 
second year, injured his right knee in 
Saturday’s exhibition victory over the 
{few York Giants. Collins had his jaw 
brakes in Saturday’s loss to Denver. 
The extent of the injury to Brunell 
.■ ■ — remained unclear. Once the swelling 
|oes down, Brunei! will have an arth- 
roscopic procedure to further assess die 
injury. 

j The Panthers said Collins would 
probably be out Tor upigjftix weeks, 
rr.xati., which meansrhe tkraicfrMSs^be team's 

v“ ; first GMH^regtdar-seasonVgaiifes. - 

l Brunell signed a five-year, $31 .5 mil- 
Hon contract two weeks ago. He led the 
.-ras* KFL in passrag yards (4367) and rush- 
[ Jng yards for a quarterback (396) last 
.^i^-feasoiL The Jaguars will turn to Rob 
Johnson, who has thrown seven passes 
. In two seasons. 

/ : J Collins, meanwhile, underwent four 

. j^ bours of surgery on Sunday. He will 

probably miss three or four regular- 
. j ;• jeason games. At the latest, he should be 
: V lack, for the Monday night home game 

. Sept. 29 against San Francisco. 

... Until then, the quarterback job on the 

Panthers will be handled by journeyman 
\\ ^ Steve Beuerlein, an 11 -year veteran 
• TlV-cL. jvbo was 3-1 as a starter in 1996 when 

■■ pENNIS THE MENACE 



A Few Choice Words 
About Steinbrenner 

Vincent’s Views Aired in Court Case 


Nnrn IL .vh>-kfl4piav Frjiii*— l*iiw 

The Braves' catcher, Javy Lopez, right, tagging out the Marlins' Gregg Zaun in the 10th inning at Atlanta. 

Marlins Know How to Hurt Braves 


. -.'-it;- 

■ -S^i 
v. 

■- — ; 


The Associated Press 

Not since playing the New York Yan- 
kees last October have die Atlanta Braves 
had so much trouble against a team. 

The Florida Marlins beat the National 
League champions for the eighth time in 
11 games this season, with Edgar 
Renteria and Gary Sheffield hitting run- 
scoring singles in the 10th inning Sun- 
day for a 4-2 victory. 

A sellout crowd of 47,649 at Turner 
Field in Atlanta saw the Marlins cut the 
Braves' lead in the NL East to 4)6 
games. 

“We believe we can beat them. We 
feel like we can play with anybody.” 
Sheffield said. 

The teams were to meet Monday 
night for the final time in the regular 
season, with Greg Maddux pitching 
against Kevin Brown. Shortly before 
Sunday ’sgame, Maddux and the Braves 
agreed on a $573 million, five-year 
contract extension that made him the 
highest-paid player in baseball. 

Charles Johnson, the Marlins’ catch- 
er, said, “Ir’s very hard to say why 
we’ve played so well against the Braves. 
They have all been close games. There 
haven’t been any blowouts. They could 
have gone either way. * * 

■ -Ffliffias a,«wdma4sO Curt Schilling 
pitched a three-bitter in St Louis as 
Philadelphia continued its surprising 
surge. The Phillies, 32 games behind in 
the NL East, have won 10 of 13. 
Schilling (12-10) did not allow a runner 
past first base. He struck out eight in his 
second shutout of the season. 

Scott Rolen homered and drove in 
three runs. Sl Louis lost for the ninth 
time in 11 games. 

Giants 6, Expos 3 San Francisco com- 
pleted a 7-3 road trip when J.T. Snow hit 
a tie-breaking, two-run single in the 
12th inning. 

Earlier in the 12th, the Expos in- 
tentionally walked Barry Bonds who 
was 0-for-l 1 in the series. 

Padres 4,, Cubs 3 Greg Vaughn, mak- 
ing a rare start because Tony Gwynn 
was sidelined by kidney stones, led off 


the ninth inning with a home run as San 
Diego won in Chicago. Vaughn hit his 
1 2th homer and first since July 22. 

Gwynn was to spend his third straight 
night in the hospital Sunday as a pre- 
caution after the stones were removed. 
Rickey Henderson stole three bases for 
the Padres. 

Rads 8, Dodgers i Chris Stynes im- 
proved to 7-for-7 in his NL career as 
Cincinnati beat visiting Los Angeles. 

Stynes, promoted from the minors this 
weekend, went 4-for-4 with a home run. 
He was 3-for-3 Saturday in his first 
game in the majors since playing for 
Kansas City last year. 

Astras ii ( Mats 8 Darryl Kile won his 
ninth straight decision as Houston's hit- 
ters helped him overcome his worst start 
of die season. Kile (16-3) gave up 10 hits, 
including a pair of homers by John 
Olenid, and eight runs in seven innings. 

Hockios a. Pirates 7 Neifi Perez, a 
rookie, hit a run-scoring single in the 
eighth inning and Colorado completed a 
three-game sweep at home. Dante 
Bichette homered and Andres Galarraga 
drove in two runs, giving him a major 
league-leading 109 RJBIs. 

In the American League : 

Orioles 4, Angels 3 In Anaheim, Cali- 
fornia, Cal Ripken’s two-run homer in 
the eighth inning lifted Baltimore to vic- 
tory just hours after the Angels learned 
that their leadoff hitter, Tony Phillips, 
had been arrested for cocaine possession . 
It was Ripken's 14th homer this season. 

Whits Sox a. Mariners i Doug Drabek 
allowed two hits over eight innings and 
Norberto Martin drove in two runs to 
help Chicago win in Seattle and pull 
within three games of first-place Clev- 
eland in the A L Central. Drabek lost his 
shutout when Ken Griffey led off the 
seventh with bis 36th homer. 

Yankees 9, Twins 8 In Minneapolis, 
Chad Curtis hit his first career grand 
slam, leading New York to its 10th 
victory in 13 games. 


Athletics 4, Brewers 3; Brewers 9, Ath- 
letics 5 In Oakland. Brian Banks hit his 
first career grand slam and bad a career- 
high five runs batted in as Milwaukee 
salvaged a doubleheader split 

Red Sox 6 , Royals 4 In Boston, Nomar 
Garciaparra hit a two-run homer in the 
third inning and doubled home the go- 
ahead run in the eighth as Boston bear 
Kansas City to extend Kevin Appier's 
winless streak to eight starts. 

In games reported in late editions 
Monday: 

Tigers 4, Blue Jays 2 In Toronto, Or- 
lando Miller hit a two-run double in the 
eighth and Justin Thompson (11-8) 
pitched his third complete game of the 
year for Detroit. 

Rangers 7, Indians 6 Warren Newson 
hit one of Texas's five solo homers in 
Cleveland. Juan Gonzalez, Rusty Greer 
and Lee Stevens also homered for Texas 
while David Justice hit his 2 2d homer 
for the Indians. 


By Richard Sandomir 

Hew York Times Service 

NEW YORK — Faye Vincent’s un- 
varnished opinion of George Steinbren- 
ner, the man he banished from baseball, 
has come to light because of a peculiar 
court case. 

Vincent, the former commissioner of 
baseball, banned Steinbrenner in 1990, 
then paroled him in 1992, shortly before 
the owners ousted Vincent as commis- 
sioner. 

Vincent started an autobiography/ 
“Baseball Breaks Your Heart.” He and 
his co-autbor, David Kaplan, signed for 
a $300,000 advance with Little, Brown 
& Co., but in late 1994 Vincent pulled 
out when the book was 90 percent done, 
citing a desire for serenity, not con- 
troversy. in his post-baseball life. 

Kaplan is suing Vincent in federal 
court seeking to publish the book under 
his own name, arguing that as the co- 
author and joint copyright owner, he is 
legally entitled to proceed on his own. 
Among the court paperwork is a 28- 
page excerpt of an 1 8.000-word chapter 
about Steinbrenner filed by Kaplan in 
April. The excerpt offers an extensive, 
seriocomic behind-the-scenes glimpse 
at July 30, 1990. the day Vincent pun- 
ished Steinbrenner. 

Roger Donald, the book's editor, 
labeled the chapters “well done” but 
said he knew Vincent was concerned 
about “insulting references to people he 
knew." 

The excerpt contains numerous 
barbs, ranging from Vincent saying that 
Steinbrenner “embodied sleaze” to 
dubbing him "baseball’s worst recid- 
ivist.” 

According to the chapter, Bart Gia- 
matti, Vincent’s predecessor as com- 
missioner. referred to Steinbrenner as 
the “Typhoid Mary” of baseball, say- 
ing, “Wherever he went, disease fol- 
lowed.” 

Through a spokesman, Steinbrenner 
refused to comment 

In the chapter. Vincent said he first 
heard of Steinbrenner's payments to the 
gambler Howard Spira — for infor- 
mation that would make Dave Winfield, 
then a star player with the Yankees, look 
bad — from a New York Daily News 
article. 


Angel Vet Faces Drug Charge 


By Mark Maske 

Washington Past Service 


ANAHEIM. California ■ — Tony 
Phillips, the Anaheim Angels’ vet- 
eran infielder-outfielder, bas been ar- 
rested and booked for felony pos- 
session of cocaine, the police said. 

Angels officials said that Phillips, 
38, was taken into custody early Sun- 
day in a motel room after buying a 
small quantity of the drug. Anaheim 
police said he was arrested as part of 
an ongoing investigation into “street- 
level sales of cocaine.” 

After being released, he went to his 
home in Scottsdale, Arizona, club of- 
ficials said. Bill Bavasi. the general 
manager, said he expected Phillips to 
rejoin the club Tuesday in Chicago. 

“He's going home to take care of 
things at home,” Bavasi said. “It 


didn't seem to make any sense for him 
to try to perform without taking care 
of that.” ■ •- •- 

Bavasi said- that Phillips was eli- 
gible to play and would remain on the 
active roster when he rejoined the 
team. Team officials said they would 
wait to see what happens pending 
court proceedings and any action 
taken by Major League Baseball. 

The Walt Disney Co. operates die 
Angels, and the team released a writ- 
ten statement that read in part: 
“ While the Anaheim Angels baseball 
club and Anaheim Sports Inc. do not 
condone the use of illegal substances 
for any member of its balldnb or 
organization, we will reserve judg- 
ment until all the facts are compiled 
and reviewed.” 

Phillips is in die 16th season of his 
major league career. 


In a phone conversation, Steinbren- 
ner asked Vincent: “Where is it in the 
Constitution that says I have to tell the 
truth to the press? It's not illegal to lie to 
them, is it?” 

“No, George,” Vincent replied 
“But not many people think in those 
terras.” 

The Kaplan-Vinceni play by play of 
July 30 describes the commissioner's 
amazement that Steinbrenner pleaded 
against a finite suspension for fear that it 
would damage his U.S. Olympic Com- 
mittee vice presidency. 

According to the chapter, Vincent 
was stunned by the skewed logic of the 
Olympic argument — that a lifetime ban 
was preferable to a suspension. 

But even more amazing to Vincent 
was that Steinbrenner's lawyers were 
unaware that if their client were treated 
as if he were on baseball's ineligible list, 

Steinbrenner is 
‘disruptive, corruptive, 
corrosive, boorish and 
embarrassing.’ 

he risked a lifetime banishment. And if 
they did not know, Vincent is quoted as 
saying, he was not going to help them. 
He was clearly eager to get rid of Stein- 
brenner permanently. 

“He’s disruptive, corruptive, corros- 
ive, boorish and embarrassing,” Vin- 
cent thought, according to the chapter. 
“If George wanted out, I was happy to 
show him the door.” 

As July 30 dragged on, Steinbrenner 
walked into Vincent's office, still not 
fully understanding the implications of 
his chosen punishment: 

“You know. Fay. tell me, this in- 
eligible-list stuff — bow long am I on 
it?” Steinbrenner is quoted as saying. 

“George, try forever.” Vincent 
said. 

“ ‘Really?’ He looked shocked.” 

Vincent's 5 P.M. deadline for Stein- 
brenner to sign off on his banishment 
passed. Vincent grew impatient, want- 
ing to announce his decision to the news 
media. By 8 PM., with Steinbrenner 
and his lawyers still caucusing. Vincent 
got up to leave. 

As he walked toward the elevator 
bank one of Steinbrenner’s lawyers, 
Paul Curran, shouted about meeting the 
commissioner in court. But Steve Kauf- 
man. a second lawyer, rushed after the 
departing Vincent group and said Stein- 
brenner would sign, which be did. 

In-4992, Steinbreiraer-pleaded with 
Vincent for. reinstatement, and Vin- 
cent’s sympathy over what he deemed 
to be his foe’s bad legal advice in 1990 
led him to grant the request, “even 
though he’s as unattractive and despic- 
able a person as I’ve ever dealt with,” 
he is quoted as stating. 

Whether the factual guts of “Base- 
ball Breaks Your Heart” ever appear in 
a bookstore and not just in manila court 
file folders will depend on how U.S. 
District Court Judge Barrington Parker 
Jr. rules during a tnal expected to start in 
late falL 

The judge must determine whether 
Kaplan can proceed without Vincent, 
possibly in the form of a third-person 
narrative, or whether they intended 
from the start to work together, or not at 
all, if Vincent pulled out. 



Friendships 

Appears every Saturday 
in. The faiennarkd. To advertise 
ennipft Hiriflelle Foregtigr 
in oui* London office; 

Tel: +44 1 71 4300329 
Fax: +44 1 71 420 0338 
or your nearest 1 HT offire 

or representative 


i 











PAGE 22 


INTERNATIONAL HERALD TRIBUNE, TUESDAY, AUGUST 12, 1997 


ART BUCHWALD 


The Nuclear Family 


M ARTHA’S VINE- 
YARD, Massachusetts 
— Here is how (he nuclear 
family spent its summer va- 
cation: Fred Albertson wait 
to Columbus to pick up his 
children from a previous mar- 
riage to Hazel and flew with 
*em to Cape 

children to Hil- 
ton Head to b« 

Bucbwald 

that Fred had a 
crisis in his company in At- 
lanta and left his children with 
Dollie. Fred’s ex-wife. Hazel, 
heard about this and deman- 
ded that Fred ship their chil- 
dren home immediately. 

□ 

The children did not want 
to go, so a compromise was 
reached. Fred's mother came 
to stay with the children. 

This complicated the situ- 
ation even further because 
Dollie had already invited her 
mother to stay with her while 
Fred was gone. There was no 
love lost between Fred’s 
mother and Dollie's mother, 
so Dollie threatened to go vis- 
it her sister in New Orleans. 


Munich Beer Hall Is 100 

The Associated Press 

MUNICH — The Hof- 
braeuhaus. Munich’s famous 
beer hall, turned 1 00 over die 
weekend. “On top days, upto 
30.000 people visit here,” 
says Michael Sperger, who 
has been running tbe Hof 
braeuhaus for 17 years. He 
plans to give away 36,525 
liters of free suds in celebra- 
tion of the beer hall's birthday 
over the next months — one 
for every day of the century. 


While Fred had two chil- 
dren from his marriage to 
Hazel, he also had two mar- 
ried adult children by his first 
wife, Tamara, which meanthe 
aisn had grandchildren. They 
were all coming to the Cope, 
and Fred bad agreed that they 
could stay in their house. 

This got Dollie mad at 
Fred She said that this was 
typical of the way their mar- 
riage was going, and sugges- 
ted they consider separating. 

Fred flew home without 
solving the business crisis. In- 
order to placate the people he 
thought were sabotaging the 
operation, be invited his 
archenemy and his family to 
pay a visit to the Cape. 

While preparing the re- 
maining guest room for them, 
his mother and DoUie's moth- 
er decided to tell him what a 
lousy father be was. 

To make it up to everyone, 
Fred decided to hold a clam- 
bake, and the whole gathering 
was very excited about iL Un- , 
fortunately it rained aad they 
bad to eat indoors and 
someone got butter all over 
Dollie's upholstery. 

□ 

Fred's children by his first 
marriage wanted him to play 
golf. His children from his 
second marriage wanted him 
to go fis hing down at the 
beach. Dollie's children, who 
had been shipped off to her 
husband, kept calling to say 
they wanted to come home 
because their father's new 
wife was a wicked witch. 

Dollie told the children that 
they had to stay where they 
were for three weeks in ac- 
cordance with the court order. 

By this time the grand- 
mothers weren’t talking to 
each other, and Fred divided 
his days between golfing and 
fishing. When he got back to 
the office he said, “That was 
the best vacation I ever had.” 


Out of the Star Chase, an Actor True to His World 


By Alan Riding' 

Wen- York Times Service 


G LASGOW — Anyone who 
has seen Robert Carlyle only 
in “Trainspotting,” the unsettling 

1996 film about junkies in Scot-' 
land, might well wonder about his 
sanity. In that movie, Carlyle. 36, a 
Glaswegian, plays the psychotic 
Begbie with snch conviction that 
the actor himself seems possessed 
by demons. 

But, be assured, in the handful of 
roles that have won him recog- 
nition as one of Britain’s new act- 
ing talents, he has also been gentle 
and loving. Indeed, Carlyle is all 
too wary of being typecast as a 
“Glasgow hard man.” 

In Britain, he need not worry. 
True, he has played a couple of 
psychopaths apart from Begbie. 
But television viewers here have 
most recently seen him in the title 
role of “Hamish Macbeth,” a BBC 
serial about a gentle marijuana- 
smoking Highlands policeman. In 
Antonia Bird’s ‘ ‘Priest,” he played 
the gay lover of a troubled Roman 
Catholic priest. In Ken Loach’s 
film “Carla’s Song,” he is a Glas- 
gow bus driver who falls in love 
with a Nicaraguan exile. 

"The Full Monty” is his first 
comedy. Directed by Peter Cat- 
taneo, the film tells of a group of 
Yorkshiremen left without wont or 
hope after the closing of a steel 
plant in Sheffield. Gaz, played by 
the short and wiry Carlyle, has a 
particular problem: Unless he can 
find money to pay child support, 
his former wife will prevent him 
from seeing their son. 

So, inspired by seeing local 
women gawking at naked male 
dancers, he convinces his mates 
that they, too, can earn good money 
by putting on a strip show. But 
there is a but To persuade women 
to pay to see their bodies, they must 
go “tbe full raonty” — they must 
strip all the way. 

Inevitably, the film has echoes of 
“Brassed Off,” another recent 
British export, which dwells on a 
Yorkshire mining community’s 


struggle to keep its brass band alive 
after the local colliery is closed. 

“The Full Monty” is less sen- 
timental and arguably funnier, but 
both films are set against the harsh 
backdrop of a Britain in which 
towns and cities have fallen into 
decay as mines, shipyards and steel 
plants have gone out of business. 
For Carlyle, a former labor organ- 
izer with a strong distaste for 
Thatcherism, the political dimen- 
sion of “The Full Monty” was as 
appealing as the comic one. 

* ‘What I thought interesting was 
tbe idea of gender politics,” Car- 
lyle said over coffee at a hotel in 
Glasgow’s West End. “Suddenly, 
these guys were forced to look at 
themselves tbe way they had al- 
ways looked at women. They had 
to re-evaluate their place in society 
because the women now had jobs 
and they didn’t It's funny, it's 
charming, but there’s a lot of sad- 
ness and tenderness there too.” 

“Tbe Full Monty" fits logically 
into Carlyle’s career in that he is 
once again playing a working-class 
character, tapping what he knows. 
He was brought up by his father in 
Glasgow hippie communes in tbe 
1960s (his mother left home when 
he was 4) and remembers his child- 
hood as “very bohemian, very 
idyllic, very left-wing.” 

But by the time he left school at 
16, his only job prospect was to 
follow his father ana work as a 
house painter for a building com- 
pany. unhappy and rebellious, he 
became a trade union official and 
began hanging out, as be puts it, 
“with people I wouldn't be seen 
dead with today.” Then, one day 
when he was 21, he was given 
“The Crucible” by Arthur Miller 
to read. 

“Someone obviously told me it 
was about McCarihyism, and 1 
thought, bow fantastic to be able to 
tell a story so accurately, yet set in an 
entirely different context,” he re- 
called. ‘ ‘The play ’s first impact with 
me was political, not artistic. But 
then I began looking at how you 
could talk about a particular subject 
but not quite show yourself. That 


Robert Carlyle, the psychotic Begbie of “Trainspotting.’ 


was when I was drawn to amateur 
theatricals. I liked tbe idea of taking 
on a character and portraying myself 
in the guise of another. I liked dress- 
ing up, hiding behind something, 
but speaking the truth.” 

Within a year, Carlyle was 
studying — without much enthu- 


siasm — at the Royal Scottish 
Academy of Music and Drama. 
When he left three years later, he 
found work in various repertory 
theaters, but he soon grew impa- 
tient with doing “the same old 
Chekhov and Ibsen.” 

In 1990, he and three friends set 


up their own company, Rain Dog- 
with the idea of adapting or ere* 
Bring plays through improvisation;. ' 
No sooner had they produced their, 
first than Carlyle won the lead role' -i 
in Loach's film “Riff Raff,” abotih-j 
unin n busting in the building in- 
dustry in England. 

On his second film, “Safe,” J 
made for the BBC, Carlyle met a 
second mentor. Bird, with whom 
be later made “Priest” and the 
. recently concluded “Face.” 

“Like attracts like,” he said. 
“Antonia is very, very political. 
She can't leave it alone. Tbe film 
we have just made is a gangster 
thriller thing set in tbe East End of 
London. But there's a heavier polit- 
ical slant on it because it’s under 
Thatcherism. The most important 
thing for me is for a screenplay to 
have some social worth. 

“It doesn't have to be talking 
about that awful woman who used 
to run this country as long as it’s 
saying something to someone.” 

In any case, it was “Trainspot- 
ting,’ ’ which has grossed more than 
$70 million worldwide, that carried 
Carlyle's name beyond Britain. But 
imlikft his co-star, Ewan Mc- 
Gregor, Carlyle has not been temp- 
ted to work in the United States. 
Instead, in quick succession, he 
made "The Full Monty." “Carla’s 
Song,” “Face” and “Looking for 
Jo-Jo,” all low-budget films. 

This fall, he will be in Prague to 
shoot “Plunkett and MacLearie,’’ 
the story of two ISth-centtuy high- 
waymen in London. 

"I’m happy going along the way 
I'm going,” he explained. *T have 
no great desire to jump into this 
crazy race for megastardom. I came 
from Nicaragua straight into the 
madness after ‘Trainspotting’ was 
released, and I was able to distance 
myself from it all because I had just 
been through another experience. I 
had been totally unprepared for that 
kind of Thiiti World poverty. It 
affected me profoundly. It was 
humbling. So when people said to 
me after ‘Trainspotting,’ ‘Well, 
that's it, lad, off to Hollywood,' I 
said, ‘Not necessarily.' ’ 1 


PEOPLE 


Gofirt Fxmwc-Pi™: 

WHATEVER TURNS YOU ON — A boy running under a giant salamander kite 
near a slag heap in Loos-en-Gobelle, France, a popular site for free-flight sports. 


B RITAIN’S royalty-obsessed tabloids on Mon- 
day confidently predicted a wedding between 
Princess Diana and the millionaire film producer 
Dodi al Fayed, comparing the match to Jackie 
Kennedy’s marriage to Aristotle Onassis. 
“Glamorous, passionate, attention-seeking: They 
are made for each other,” said the Daily Mail just a 
day after the first photos of a Di-Dodi kiss were 
published in the tabs. It said that al Fayed, a 41- 
y ear-old Egyptian whose father owns Harrods de- 
partment store in London and the Hotel Ritz in 
Paris, ooald offer Diana the high life to which she is 
accustomed, while she could provide his family 
with entry to the British establishment. Some pa- 
pers even speculated that Mohammed al Fayed 
planned to give the couple the Paris villa that was 
home to the Duke and Duchess of Windsor — who 
scandalized the royal family in 1936 when their 
romance led the duke, then king of England, to give 
up the throne to many an American divorcee. 

□ 

Weeks before he died, a drugged Elvis Presley 
called President Jimmy Carter at the White 
House and asked him to help a friend he believed 
was in trouble. The New Yorker reports. “When I 
was first elected president, I got a call from Elvis 
Presley,” the magazine quotes Carter as saying in 


its latest issue. “He was totally stoned and didn’t 
know what he was saying. His sentences were 
almost incoherent.” Millions of Elvis fans will 
mark the 20th anniversary on Saturday of the 
King's death from a drug-induced heart attack at the 
age of 42. Events during Elvis Week include tours 
of his Graceland residence in Memphis, Tennessee, 
radio play of Elvis hits like “Hound Dog" and 
“Love Me Tender” and TV specials including a 
hilarious mock docudrama called “Elvis Meets 
Nixon,” which re-creates qne of the more bizarre 
meetings between a president and a rock star: the 
1970 meeting where Richard Nixon made Presley 
an honorary U.S. Drug Enforcement Agent 

□ 

A Spanish chef who just won top honors from 
Michelin has fired a loud salvo across the border, 
saying that the French are culinary has-beens. Fer- 
ran Aetna — whose restaurant, El Bulli, in the 
northern seaside town of Cala Montjoi, earned 
Michelin ’s coveted three stars — says his native 
Catalonia and the Spanish Basque country, not 
France, are serving up Europe's tastiest food these 
days. Of good cooking, he says: “O.K., the French 
invented it, but now they don’t know what to do.” 
Adria is known for imaginative dishes like oysters 
with a mousse made from sea water. 


John Kennedy Jr. has taken the unusual step of 
slamming his own family in George, the magazine! 
he founded and edits. In die September issue, 
Kennedy calls two of his cousins “poster boys for 
bad behavior. ' ' Chastizing Representative Joseph' 
Kennedy 2d, whose ex-wife has accused hinruf 
having their marriage annulled for political grin, 
and Michael Kennedy, who is alleged to have had 
an affair with a teenage baby sitter, he writes; “To 
whom much is given, much is expected, right?” " 

□ 

Until the end, William Burroughs shuddered if 
the thought of a work! without drugs and railed 
against the politicians trying to ban diem. The latest 
issue of The New Yorker contains excerpts from 
journals kept by the Beat Generation author 'and 
former heroin addict in which he criticizes Newt 
Gingrich — “that vile salamander” — and otter 
politicians he blamed for trying to make American 
life “banal.” ‘ ‘How I hale those who are dedicated 
to producing conformity," Burroughs wrote abbot 
two months before his Aug. 2 death at age 83. Tte; 
day before Burroughs died, he wrote his last entty,; 
which was printed on cards and distributed among, 
the 250 mourners at his funeral in Lawrence, Kan-j 
sas. “Love? What is it? Most natural painkiller.! 
What there is. LOVE." 


stays mainly in the plain. 


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