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The World *s Daily Newspaper 

_j* Paris, Monday, August 25, 1997 

No. 3§,©8 

'.0 ^ 

A New Credo for a World (Mostly) at Peace: Make Money, Not War 

By Barbara Crossette — 

New York Times Se n-ice 

UNITED NATIONS, New York — Has there ever been a 
moment quite Uke this? 

* eUnit «f States, high-yield retirement accounts are 
maJang near-mtihonaires of thousands of salaried workers 
Md hourly wage earners. In India, resort towns are crammed 
not with foreign tourists but with newly affluent Indians 
more than a few of them village people in chartered buses 
who come to enjoy wonders once reserved for the rich and 

All over Asia, and in Eastern Europe, Russia and Latin 

America, the emerging middle classes are- buying designer 
clothes and computers and taking foreign vacations. Even in 
struggling but newly hopeful Africa, leaders are urging aid 
donors to prod investors and provide advice on how to fire up 
the private sector. 

Asa whole, the world economy has been growing aL about 
3 percent annually in recent years, a rate of expansion that 
will exceed that of the 1980s. the United Nations predicts, 
It’s easy to fret, as many do, over blips and glitches — and 
neither Wall Street nor die tiger currencies of Southeast Asia 
have been without them lately. 

But that misses the larger point: Never before in modem 
history, arguably, has so much of the world savored eco- 

nomic growth, however rough around the edges. Much of 
this can be attributed to peace. 

Economists describe the surge in hu man productivity — 
and not simply reductions in rnibiary spending — as the real 
peace dividend. And though they may disagree about how 
wisely this windfall is or is not being reinvested in one place 
or another, they pretty much agree that a world battered by a 
century of devastating wars now faces a future with un- 
paralleled opportunity. 

No major international wars are being foughL The world 
has its ugly regional conflicts — its Bosnias, its Rwandas — 
but no Stalin, no Hitler, no Mao visits the cruel whims and 
devices of totalitarianism on vast numbers of its people. No 

military alliances are faced off in a global arms race. 
Democracies flourish. The end of the Cold War has removed 
ideological chains and with them distortions of economies 
rooted in big-power rivalries. 

India, for example, lost its cozy relationship with Moscow 
and -was forced to sink or swim with economic reform, 
jettisoning an accretion of Soviet-inspired practices. In 
Central America, a number of nations, not the least of them 
El Salvador, lost the automatic Cold War patronage of the 
United States and are now learning to build civilian econ- 
omies largely cm their own resources and with new partners. 

See PEACE, Page 9 

New Rivalries Spread 
Across South America 

Despite Better Economic Cooperation , 
Nations Focus on Defense and Security 

By Anthony Faiola 

Washington Post Service 

BUENOS AIRES — Brazil wants a 
seat cm the UN Security Council. Ar- 
gentina wants special defensive ally 
status from the United States. Chile is 
shopping for F-16 jet fighters. Peru 
already has bought Russian MiGs. 

And throughout the continent, e ach 
country is growing suspicious of others’ 

For a continent at peace, witnessing 
an unprecedented level of economic co- 
operation, South America has become 
increasingly focused on thorny issues of 
defense and security. 

Hie measures have reignited some 
long-standing regional rivalries and cre- 
ated mounting political friction that is 
the hottest issue at a s ummi t meeting of 
I .a tin American heads of government in 
Asuncion, Paraguay. 

Experts say recent developments in- 
dicate a new phase in the South Amer- 
ican renaissance of the 1990s. Already, 
economic reforms and the creation of 
the Mercosur alliance — a sort of Euro- 
pean Union of countries in South Amer- 
ica’s Southern Cone — have dramat-, 
ically increased the continent’s - 
economic clout. 

A string of state visits by President 
Jacques Chirac of France. Chancellor 
Helmut Kohl of Germany and others 
have underscored the quest to woo the 
continent's up-and-coming economies. 

Now, South American nations, es- 
pecially the two largest — Brazil and 
Argentina — are trying to convert their 
new clout into a larger voice in world 

"Our economy has become normal- 
ized, and we’ve grown in economic, 
strength," Sebastiao Barr os. the 
Br azilian deputy foreign minister, said 
in a telephone interview from Brasilia. 
* ‘It’s only just that we should have more 
recognition and be allowed to contribute 
more to the international community.'’ 

Bnt in seeking more global prom- 
inence. they are stepping on each other’s 
toes — and the United States has found 
itself right in the middle. 

Chilean officials, for example, have 
voiced strong opposition to the des- 
ignation of Argentina as a “non-NATO 
ally’’ of the United States. The des- 
ignation — reserved for America's 
closest allies outside the North Atlantic 
Treaty Organization, such as Israel, Ja- 
pan and South Korea — is expected to 
be bestowed when President Bill Clin- 
ton visits Buenos Aires in October. 

The prospect of Argentina’s anoint- 
ment as the United States' strongest 
strategic partner in Latin America has 
Chileans suspicious and its officials cry- 
ing fouL U.S. State Department officials 
declined to commenL 

“It was a remarkable error in in- 
ternational policy for the United States 

See RIVALRIES, Page 6 

' ; A‘« , ^ - >, - : 

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. TjS* 

India- Pakistan Talks 
In Doubt as Tensions 
Boil Over in Kashmir 


NETANYAHU IN JAPAN — Prime Minister Benjamin Netanyahu of 
Israel arriving in Tokyo on Sunday for a four-day visit He carried a 
message of reassurance for Japanese investors on doing business in Israel. 

Extremes Squeeze Arafat 
As Han ias’s Power Swells 

Form and Substance: 
France ? s Dual Model 

Change Exists, Masked by Idealist Slogans 

By Roger Cohen 

Nfw York Tunes Service 

PARIS — Charles de Gaulle, who 
knew his people well, once said: 
"Every Frenchman wants to benefit 
from one or several privileges. It is his 
way of affirming his passion for 

Zt was the general’s way of gently 
capturing an essential Preach dupli- 
city. Perhaps in no other country are 
form and substance so divergent For- 
mal discourse is frill of grand 


principles: equality, solidarity or, 
more recently, the iniquities of Amer- 
ican-driven globalization. . But die 
substance may have more to do with 
the defense of privilege or the con- 
cealment of pragmatic acts in the 
robes of idealism. 

A French politician’s art thus lies in 
offering splendid ideals while insur- 
ing that people get fed. Francois Mit- 
terrand, the bate president, was a mas- 
ter of the art. 

After a brief and calamitous ex- 
periment with textbook socialism, he 
opted to defend only principles lofty 
enough dial they would never afreet 
the franc’s strength. Goodbye, Al- 
bania; hello, the bourse. By the end of 
his second term in 1995, he had el- 
evated the riddle to die heart of his 
governance. L . 

War, French posturing was an irritant, 
but seldom more, to die United States. 
In its aftermath, a very public French 
stand against the harsh capitalism of 
America’s boom and the dangers of a 
world driven by die American quest 
for profit has given a new edge to the 
allies'* old sparring. At times, as at die 
summit of major industrialized na- 
tions last month in Denver, it has 
looked like real rivalry. 

France- has become America’s fa- 
vorite European basket case. With its 
Socialist government trying to create 
state-sector jobs by the hundreds of 
thousands, its record unemployment, 
its diatribes agains t globalization, its 
quaint plans for 32-hour work weeks 
and its defense of an apparently un- 
affordable welfare state, France has 
taken over Britain’s role as the faintly 
risible archetype of the failed Euro- 
pean economy. It is the Titanic- with- 
piano-still-tinkling adrift on a sea of 
global competition. 

There is, of course, much substance 
to this vision of France. Fewer and 
fewer businesses want to hire because 
it costs too much to do so, and many 
of the 3.6 milli on unemployed have 
settled into a way of life based on 
perennial state financial as si stance 
combined with odd jobs on die black 
market Initiative is quashal and de- 
pendence encouraged. Disillusion- 
ment spreads. 

But the French reality is rather 
mare complex. It has to do with the 

By William Drozdiak 

Washington Past Service 

JERUSALEM — When Yasser Ara- 
fat kissed and embraced the leaders of 
Hamas and Islamic Jihad at a meeting of 
Palestinian factions last week, the con- 
ciliatory gestures toward radical 
Muslim groups suspected of perpetrat- 
ing terrorist acts outraged much or Israel 
and the Western world. 

Was the leader of the Palestinian Au- 
thority condoning violence against Is- 
rael and preparing for the kind of armed 
confrontation that has spilled so much 
blood in the Middle East between two 
peoples fighting over the same land? Or 
was be engaged in a ploy to co-opt the 
enemies of peace and thus strengthen 
his hand for future negotiations with the 
rightist government of Prime Minister 
Benjamin Netanyahu?. 

Nearly four years after the Oslo peace 
accords, Mr. Arafat is trapped by con- 
flicting pressures that threaten to un- 
dermine his self-governing authority, 
destroy his fragile partnership with Is- 
rael and shatter his dream of estab- 

lishing a Palestinian state in Gaza and 
the West Bank with East Jerusalem as 
its capital. 

The self-styled father of the Pales- 
tinian revolution is renowned for his 
survival skills in times of political peril. 
But this time, his fate seems intertwined 
more than ever with an Israeli gov 


eminent that profoundly distrusts him 
yet loathes even more the extremist al- 
ternatives to his leadership. 

An impassioned debate has gripped 
Israel in recent days over whether the 
country’s interests .are best served by 
weakening or strengthening Mr. Arafat. 
Nearly a month after the Israeli gov- 
ernment imposed sanctions and security 
measures in the wake of a suicide bomb- 
ing that killed 16 people in a Jerusalem 
market, Israelis were starting to question 
whether those measures might inflict 
more harm than good on their country. 

fit Gaza this weekend, Mr. Arafat 

See MIDEAST, Page 6 


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ISLAMABAD, Pakistan — Pakistan 
and India accused each other Sunday of 
unprovoked firing in the Kashmir re- 
gion. South Asia's tensest border, and of 
trying to scutrle planned peace talks. 

The clashes erupted Saturday night 
and continued Sunday. Indian Defense 
Ministry officials said if the fighting 
persisted, they might be forced to evac- 
uate civilians from some areas along the 

Kashmir is divided between the two 
countries and is separated by a United 
Nations-monitored cease-fire line. In- 
dian and Pakistani soldiers regularly 
exchange fire across the border, but the 
latest clashes appeared more severe than 

Pakistani officials said Sunday that 
Indian troops had fired artillery and 
mortars along the military control line in 
the Himalayan region for the second day 
running, killin g four people and wound- 
ing several others in two days. 

India acknowledged that two of its 
soldiers had been killed. 

In Jammu, the Indian state that con- 
tains Indian Kashmir. Indian officials 
claimed that 56 people had been killed 
in what they described as one of the 
heaviest artillery battles in recent years. 
They said 51 Pakistani soldiers, two 
Indian soldiers and three civilians had 
died in the cross-border shelling. 

A Pakistan Defense Ministry spokes- 
man denied an Indian Defense Ministry 
accusation earlier Sunday of unpro- 
voked Pakistani firing in the Kargil and 
Uri sectors of Kashmir, saying no such 
incident had happened in these areas. 

But he accusal the Indian troops of 
“unprovoked firing” in the Chakothi, 
Sankh and Pandu subsectors since Sat- 

“The purpose of such firing is to 
vitiate the atmosphere,” he said, to put 
pressure on Pakistan before talks, 
scheduled for September, between the 
two nations' foreign ministers. 

The Indian Foreign Ministry spokes- 
man said New Delhi was committed to 
talks between the two countries. 

“We are committed to Jndia-Pakistan 
dialogue and see no reason why it 
should not go ahead on schedule," he 

The third round of the peace talks in 
New Delhi are to be part of a series of 

meetings begun in March after a three- 
year freeze on official contacts. The 
status of Kashmir, claimed by both na- 
tions, has been put at the top of the 
agenda by Isl amab ad. 

Pakistan and India have fought three 
wars since both gained independence 
from Britain 50 years ago, two of them 
over Kashmir. Border skirmishes re- 
main common. 

Indian Kashmir is the scene of a 
Muslim separatist drive that has cost 
more than 20.000 lives since 1989. India 
accuses Pakistan of arming the mil- 
itants, which Islamabad denies. Paki- 
stan says it gives only moral and polit- 
ical support to the “freedom fighters." 

New Delhi regards the whole of 

See KASHMIR, Page 4 

NATO Girds 
For a Final 
Push to Oust 
Serb Warlord 

1 8 °AGthk < may be worth remembering 

See FRANCE, Page 6 

Cambodia Faction Is Overrun 

Cambodian troops loyal to Hun Sen on Sunday overran 
O’Smach, the last frontier town held by the ousted first prime 
minister, Prince Norodom Ranariddh, witnesses said. 

A pocket of fewer than SO of Prince Ranariddh's soldiers 
abandoned their last position near the border, the witnesses 
said. The troops were apparently h eadin g toward Anlong 
Veng, stronghold of the Khmer Rouge, who also are 
fighting Mr. Hun Sen. 

Thai soldiers guarding the frontier took up positions 
because it was feared that troops loyal to Mr. Hun Sen 
would push the rival faction across the border. Thai sources 
did not confirm the foil of O’Smach, however. In addition, 
analysts in Phnom Penh said the fall of O’Smach would not 
necessarily end the fighting in Cambodia. Page 4. 


A Cancer' in the Gulf of Mexico, a Snake in Paradise 

Books - P age * 

Crossword - - Page** 

Opinion - Page *■ 

Sports - ........... Pages 16 - 18 * 

The Intsnnarket Page?. 

The IHT on-line 

: .: , : '• V.- - y . v>/* 


Apennr FihtA* 

FAST MAN — Wilson Kipketer, after breaking his 
own record Sunday in the 800 meters. Page 18. 

By Chris Hedges 

New York Tunes Sen ice 

BANJA LUKA, Bosnia-Herzegovi- 
na — As NATO peacekeepers press 
forward in what many here view as a 
final campaign to cany out the faltering 
Bosnia peace agreement — seizing po- 
lice stations and feverishly working 
with Bosnian Serb opposition leaders to 
build an alternative power base — for- 
eign and local officials are expressing 
concern over the risks. 

1 ‘If this fails, as it could, it will fail in 
a big way," said a senior United Nations 
official involved in the planning of the 
operation, which has included promot- 
ing the Bosnian Seth president, Biljana 
Plavsic, in her effort to topple Radovan 
Karadzic, her predecessor who contin- 
ues to bold de facto power from his 
stronghold in Pale. 

"Those who decide to defy the lead- 
ership in Pale have to feel that this will 
succeed, that they will be secure,” the 
UN official said, referring to Bosnian 
Serbs who support Mrs. Plavsic. “And 
if past action is anything to go by, 
Radovan Karadzic and those around 
him will probably resort to intimidation 
and violence.” 

One of Mrs. Plavsic's security chiefs, 
who asked thai his name not be used, 
said, “We expect Karadzic to try and 
use violence to stop this." 

With the North Atlantic Treaty Or- 
ganization’s 31,000-strong force due to 
leave Bosnia in June 1998, there is 
widespread recognition that the 1995 
peace agreement negotiated in Dayton, 
Ohio, which called for a united Bosnia 
and the return of refugees to their 
homes, has not worked. 

The cease-fire lines maintained by 
NATO forces have carved the country 
into three antagonistic enclaves: one 
held by Bosnian Croats, backed by 
Zagreb; the second by Bosnia Serbs, 
backed by Belgrade; and the third by the 
Muslims who lie uncomfortably sand- 
wiched between die other two. 

NATO commanders say that if they 
pull out next summer as scheduled, 
there is a strong chance that the war will 

See BOSNIA, Page 6 

Newsstand Prices 

Andona 10.00 FF Lebanon LL 3,000 

Andes 12 JjO FF Morocco —16 Dh 

Carwroon...1.600CFA Qatar ~ 1 W»OR 

Egypt £E 5.50 Rdunon ...^...1260 FF 

10.00 FF Saudi Arabia. — .10 SR 

Gabon .........1.100 CFA Senegal 1™0CFA 

Hty. .2,800 Lire Spain. JBSjJ* 

'Wty Coast. 1250 CFA Tunisia ™ 

Jorflgn 1 250 JD UAE. ~~10.QO DD 

Kuwait .... 700 FBs U.S. MB. (Eur.)-..S1.20 

Fat-Free Chips! Makers Run to Rank, Consumers Run Elsewhere 

_ aeent for a trucking company , picked up to absorb “Oh, you mean the loose 

By Glenn Collins a sample “Tastes like real Pringles/’ stools?" Ms. Campbell said, laughing 

Nn- York Time* Sen-ice ^ ^4 ‘munching an Original Flavor about saying the phrase aloud. “Well, 

erring earfy tins months as a moist of Sour Cream ’N Onion. “No have a stomach of steel.” 

whipped the Fat Free Pnnglesrt^ ai faL - s he sa i& “i guess I can sit down Procter & Gamble will need a siom- 
RCA Tennis Championship here inone at, ha]f a ^ ag! - ach of steel to peddle olestra across the 

of America’s great rest ma^ts. Dog- aslcedtf they’d heard United States next summer, building on 

gedly, Procter & Gamble Co. workers y . ^ olestra, a no-fat, the lessons from its experience here. The 

« out plastic cups SeSS made with a bad news: “diarrhea.^ good, news 

they proselytized for olestra, Procter s no-» veBeta ble oil combination won’t surprise anti-tobacco activists, 

controversial new ^ jjjg has molecules too large for the body regulators and prohibitionists of every 

Cassandra Campbell, a co , 

stripe: The Cassandras and Bobs of In- 
dianapolis are eating die chips anyway. 

The key? Procter & Gamble and its 
marketing partners, Frito-Lay Inc. and 
RJR Nabisco Holdings Corp. — which 
buy olestra from P&G — have made it 
difficult for people to avoid trying 
snacks fried in Olean, as the company 
calls its olestra product. 

In this metropolitan area of 1 .5 mil- 
lion people, the company has distrib- 
uted more than 300,000 free samples of 
fat-free Pringles, and Frito-Lay has giv- 

en away close to 500,000 samples of 
Lays. Ruffles and Doritos chips made 
with olestra. Television and newspaper 
campaigns call the snacks “amazing" 
and “miraculous,” in a blizzard of pro- 
motion that has overwhelmed a much 
smaller campaign by a consumer group 
that contends that olestra will create a 
national public-health disaster. 

Over all. 38 percent of the populace 
here has tried some form of an olestra 

See OLESTRA. Page 9 




Wa ll of Stagnant Water / Threat to Fisheries 

Dead Zone ’ Stalks Louisiana 

By Joby Warrick 

Washington Post Sen-Ice 


OCODRJE, Louisiana — The village name is 
Cajun for “crocodile,” a mistaken reference to 
the reptiles that menaced the first settlers of this 
_ end-of-ihe -highway Bayou outpost. But these 

days, local fishermen would prefer a gator or two to the 
amorphous threat that lurks just off shore. 

Every summer, when temperatures climb and the wind 
dies, an enormous wall of stagnant water begins spreading 
west along rhe Louisiana coast, starting at the Mississippi 
River and continuing past dozens of delta fishing towns 
until it reaches the Texas state line. Oxygen levels in the 
water plummet until the sea no longer can sustain life. Any 
creature that can swim or crawl tries to flee; all others die. 

By August, the wall extends for hundreds of miles across 
one of the nation's most productive fisheries. Louisiana 
fishermen call it the * 'dead zone,’ ’ and recently it has grown 
to astonishing proportions. 

After years of relative stability, the dead zone suddenly 
doubled in size four years ago to 6,800 square miles < 17,500 
square kilometers) — slightly smaller than New Jersey — 
after that year's Midwestern floods. It grew just as big or 
bigger in each of the following three years, and it is back 
again this summer, barely deuted by a July hurricane that 
hovered over the Gulf coasr for days. 

Fishermen, meanwhile, have begun complaining that 
this desert-within-an-ocean is hurting their business, re- 
ducing seafood stocks and forcing them to travel farther to 
find fish and shrimp. "It's like a cancer," said Bobby 

Theriot, a burly second-generation oysterraan. as he loaded 
a day’s harvest into his buck on a sweat-drenched mid- 
August afternoon. "It keeps getting bigger, and no one 
knows what is causing it." , 

In fact, scientists already have a good idea of what s 
going on in the Gulf of Mexico, and the picture could soon 
get even dearer. Just over a week ago, the Clinton ad- 
ministration launched an ambitions 18-month assessment 
of the "dead zone” to determine why it is growing and 
what, if anything, can be done ro stop it The project wul 
involve dozens of independent scientists as well as officials 
from the federal government and many of the 26 states 
within the vast Mississippi River basin. 

[HE cause of the problem, scientists agree, is the 
increasing volume of pollutants flushed into the 
Gulf of Mexico each day by the Mississippi River. 

Fertilizers, sewage and animal waste from farms 

and cities across the basin have overfertilized the gulf, they 
say. touching off a population boom of algae and other tiny 
organisms. As the algae die and decay, they rob the water of 
the oxygen that fish and other animals need to live. 

Summer’s hot weather and calm winds make the prob- 
lem worse in the gulf, creating an area of uninhabitability 
that now extends 30 miles (50 kilometers) off shore in some 
places, according to Nancy Rabalais, a Louisiana ecologist 
who has tracked the phenomenon since 1985. 

it is the same pattern that spawned smaller dead zones in 
recent years in the Chesapeake Bay, Florida Bay, North 
Carolina’s Pamlico and Albemarle sounds and at least 40 
other saltwater bays around the world. But in sheer size. 


Franklin VmlaAwb* IVno Vi-iim* 

A spider crab is suffocated in a low-oxygen area of the Gulf of Mexico. The cause of the 
problem is the ever- increasing volume of pollutants flushed into the gulf by the Mississippi. 

few can begin to rival the one in the gulf, which is the largest 
in the Western Hemisphere. 

Ms. Rabalais, who monitors the western march of low- 
oxygen or "hypoxic" waters each year from a research 

Trouble in Hawaiian Paradise: Brown Snakes 

By William Claiborne 

Washington Past Senice 

HONOLULU — Shortly after a huge transport 
lane unloaded its cargo at Hickam Air Force 
ase one day earlier this month, the airman John 
Herisr happened to spot a brownish, 3-fooi-long 
snake slither into a nearby canal and disappear. 

It would have been an unremarkable event 
except that Hawaii does not have snakes and the 
cargo plane was from Guam, a combination of 
circumstances that had state and federal wildlife 
officials scurrying to set traps and turn loose 
snake-sniffing Jack Russell terriers in a frantic 
round-the-clock hunt for the elusive snake, which 
still has not been found. 

Brown tree snakes are aggressive, venomous 
predators that grow to lengths of 8 feet ( 2 meters) 
and have spread throughout Guam like a plague 
since arriving aboard U.S. military cargo ships 
from the Solomon Islands shortly after World 
War D. They now number 1 2,000 per square mile 
(2.6 square kilometers) in some forested areas of 
the Pacific island and are eating into extinction its 
native bird species and most of the nonnative 
birds as well. 

Now. officials here are worried that the brown 
tree snake, hiding in aircraft cargo holds and 
wheel wells, may be invading Hawaii, threat- 
ening its wildlife habitat and tourism-dependent 

economy. More than a third of all the threatened 
and endangered birds in the United States are 
found in Hawaii. 

A nocturnal reptile with a large head and 
bulging eyes, the brown tree snake prefers birds 
over other prey, but it has been known to eat small 
pets like cats and has even been found curled 
around babies sleeping in their cribs. It is par- 
ticularly adept at climbing trees and raiding 

Hawaiian wildlife officials say that while there 
have been only seven confirmed cases of brown 
tree snakes being killed or found dead on 
Hawaii's Oahu Island since 198 1 , the Hickam Air 
Base incident was the sixth snake sighting in two 
months. They also warn that even one pregnant 
female slipping through could begin a colon- 
ization far more costly than Guam's. 

"It's an enormous threat to Hawaii," said 
Robert Smith, the Pacific islands manager for the 
U.S. Fish and Wildlife Service. "We’ve got to 
apply resources to this effort that match the cost 
of this threat.” 

Because of its isolation. Hawaii is particularly 
vulnerable to invasive species like the brown tree 
snake, wildlife experts say. Animals here evolved 
with few diseases and oatural predators, and 
therefore have few natural defenses. There are no 
effective predarors with which the brown tree 
snake would have to contend while it multiplied. 

But the threat is not only to Hawaii, according 
to U.S. Agriculture Department officials. One 
brown tree snake was found in a cargo in Texas, 
and experts predict that the reptile coaid easily 
thrive in Southern California, Florida and other 
states with warm climates. 

Because Hawaii ostensibly has no snakes, state 
and federal officials take their snake control 
efforts seriously. Anyoae caught with a snake 
faces up to a year in jail and a maximum fine of 
525,000. An amnesry p r ogram allows snake own- 
ers to turn the reptiles in without prosecution. 

In addition, a Coordinating Group of Alien 
Pest Species, comprised of 14 government agen- 
cies and private groups, last year drafted a 10- 
poinr action plan to improve alien pest prevention 
and control programs. It includes a Drown tree 
snake-control plan that will be boosted by nearly 
$ 1 .8 million in federal appropriations this year for 
combating the reptile on Guam, researching new 
control methods and inspecting aircraft arriving 
in Hawaii. 

Several measures have been taken or proposed 
to intercept snakes that arrive from Guam. These 
include a newly designed concrete barrier with a 
curved lip that could be erected around an airport 
tarmac where cargo is unloaded. 

Other measures include dog detection; de- 
velopment of new kinds of snake traps; fumig- 
ation of cargo containers, and the training of 

U„r>L>n H HiAldA A i.rei/iprel rtn y 

The brown tree snake that is now in Hawaii. 

snake searchers. Experts also called for more 
research on chemical fertility inhibitors and the 
use of toxicants, viruses and parasites known to 
be exclusively effective against the brown tree 

But experts said biological controls like vir- 
uses have not worked well on vertebrate species 
and unless an entire species population is wiped 
out. the survivors may develop immunities and 
recolonize. Earl Campbell, a wildlife ecologist 
with the U.S. Department of Agriculture’s Na- 
tional Wildlife Research Center, said that only ‘ ‘a 
gamut of techniques' r used in concert will stand a 
chance of preventing the brown tree snake from 
colonizing here as it did in Guam. 

"With" the unique ecosystem we have in 
Hawaii, we can't afford to delay/’ Mr. Campbell 
said. "It could be disastrous for us." 

vessel owned by the Louisiana Universities Marine Con- 
sortium, has charted tile growth with a mixture of alarm and 

Ms Rabalais, in ber office overlooking the shrimp boats 
at Cocodrie, said: "This year we 
had a Hurricane that sat over one of 
our monitoring stations for quite a 
while. We had 10- to 15-foot seas, 
and it didn't change a thing." 

While recreational anglers can still 
pursue species that live near the sur- 
face, shrimp boats and other trawlers 

steerclearofrhedeadzone. "There’s 
nothing out there.’ ’ said Bill Foret, a 
Cocodrie shrimper. “No shrimp. No 
fish. Maybe a snail or two.” For 
scores of local watermen, the dead 
zone has already forced a change in 
fishing habits. To avoid barren wa- 
ters. they must either drop their nets 
very close to shore or travel long 
distances. Last year, a major fish- 

processing plant in the delta town of 
Dulac closed its doors in part because 
of the increased financial burden 
posed by low-oxygen waters. 

The plight of the fishermen and 
the relentless expansion of the dead 
zone prompted a coalition of 18 
environmental and fishermen’s 
groups, led by the Sierra Club Legal 
Defense Fund, to file a petition two 
years ago demanding that the. fed- 
eral government take action. The 
move led directly to creation of a 
federal task force on the dead zone 
problem, and to this month’s launch 
of a multidisciplinary assessment 
group that will investigate the 
causes and possible solutions. 

42 Are Slain 
In Assaults 
In Algeria 

Anence France-Presse 

ALGIERS — A new series of 
massacres has left 42 people dead 
in Algeria, where violence has 
claimed nearly 600 lives in less 
than six weeks, local newspapers 
reported Sunday. 

In one of the most dramatic at- 
tacks, two bombs exploded as a 
train passed through the town of El 
Affiroun. 70 kilometers (45 miles) 
west of Algiers, leaving eight dead 
and 28 wounded, the El Watan and 
El Khabar dailies said. 

On Wednesday, three persons 
were killed and 22 injured in an 
ambush as they returned from an 
anti-terrorism demonstration. La 
Tribune reported. The demonstra- 
tion, called by trade unions, 
brought thousands into the streets. 

La Tribune said the protesters 
were returning to a village near 
Medea, 80 kilometers east of Al- 
giers, when their vehicle was am- 
bushed by gunmen, presumed to be 
Islamic militants. 

The same paper also reported 
that 30 persons, including women 
and children, had their throats slit in 
two massacres last week in the re- 
gion of Djelfa about 300 kilometers 
south of Algiers. 

The newspaper Liberie reported 
on Sunday that one person was 
slain in the village of Afafna near 
Tiarci, 240 kilometers southwest of 
Algiers. The paper gave no further 
details. The Algerian government 
has not been issuing official cas- 
ualty* figures. 

Unofficial figures compiled by 
news organizations show around 
560 civilians have been killed since 
July 15. when a leader of the Is- 
lamic Salvation Front, Abassi 
Madani, was freed from detention. 

His release was seen as being a 
conciliatory gesture by the Algeri- 
an authorities to militants. 

U.S. Will Back UN Sanctions on Savimbi, Its Former Angola Ally 

By Thomas W. Lippman 

Wwjwgwi Post Sen ice 

WASHINGTON — In a long-shot 
effort to salvage the shaky peace in 
Angola, the Clinton administration will 
support new United Nations sanctions 
against the longtime rebel leader, Jonas 
Savimbi, and his UNITA movement 
and is prepared to sell military transport 
planes to the Angolan government, ac- 
cording to senior officials. 

The sanctions, which U.S. officials 
expect to be imposed by the United 
Nations Security Council this week, and 
rhe aircraft sale reflect the administra- 
tion's exasperation with Mr. Savimbi. a 
former Cold War ally whom Wash- 

ington regards as hugely responsible for 
the growing tensions in Angola. 

Washington’s view hardened earlier 
this month after the UN secretary-gen- 
eral, Kofi Annan, issued a blistering 
report accusing Mr. Savimbi and 
UNITA (the National Union for the 
Total Independence of Angola) of 
"totally unacceptable” practices, in- 
cluding failure to demobilize troops, 
that threaten to restart Africa’s longest 
civil war. 

During the Cold War, Mr. Savimbi 
was Washington's proxy in a struggle 
against the government of Jose Eduardo 
dos Samos, which was backed by the 
Soviet Union and Cuba. 

But Mr. Savimbi has long since out- 

lived his usefulness to Washington. 
U.S. anger at his tactics has been ap- 
parent since October when he refused to 
travel to Luanda to meet then-Secretary 
of State Warren Christopher. 

Administration officials portrayed 
the forthcoming UN sanctions against 
UNITA and the planned sale of six C- 
130 cargo planes ro the dos Santos gov- 
ernment as intended to persuade Mr. 
Savimbi to comply with his commit- 
ments under the 1994 peace agreement, 
known as the Lusaka Protocol. 

Bur both moves have come under 
bipartisan fire from key members of 
Congress, who said they would unfairly 
punish UNITA while failing to recog- 
nize violations of the Lusaka agreement 

by the dos Samos government, and 
would undermine U.S. credibility as a 
neutral mediator. 

The Senate Foreign Relations Com- 
mittee chairman. Jesse Helms. Repub- 
lican of North Carolina, and the African 
Affairs subcommittee chairman. John 
Ashcroft. Republican of Missouri, 
wrore to Secretary of State Madeleine 

"It would be extremely unwise for 
the United Srates to abandon its policy 
of neutrality' in Angola and become mil- 
itarily involved on die side of the dos 
Santos government 

They said ir was Mr. dos Samos and 
his followers in the Popular Movement 
for the Liberation of Angola who were 

preparing to resume the war. hoping to 
rake advantage of the downfall of Mr. 
Savimbi's longtime patron, Mobutu 
Sese Seko of Zaire, now Democratic 
Republic of Congo, to gain the victory 
that has eluded them for 20 years. 

_ Senator Russell Feingold of Wiscon- • 
sin, the senior Democrat on the Africa 
subcommittee, released a letter to Un- 
dersecretary of State Thomas Pickering 
saying that sanctions on UNITA were 
probably justified. 

. But he added that imposing them on : ' 
UNITA alone, on top of the “shift in '£ 
U.S. bilateral military policy” repre- 
sented by the aircraft sale, ‘ ’could add to 
the impression that the United States no ' 
longer wishes to be a neutral arbiter.” 

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Philippine Airlines 
Trims U.S. Service 

MANILA (AFP) — Philippine Air- 
lines said over the weekend that it would 
cancel flights to Los .Angeles via Seoul 
starting Sept 1 because of aircraft re- 
strictions imposed by the U.S. aviation 
authorities. But « said that direct daily 
flights from Manila ro Los Angeles 
would continue. 

Last week, the airline said it was 
scrapping flights to New York starting 
Sept. 2 because of "staggering” losses 
resulting from the Federal Aviation Ad- 
ministration restriction imposed in 
1995, which requires Philippines car- 
riers to lease planes from other carriers 
for any expansion of service to the 
United States. 

Cuba Cruise Approved 

WASHINGTON ( NYT) — The Clin- 
ton administration has temporarily eased 
restrictions on travel to Cuba, saying it 
would allow the Archdiocese of Kliami 
to sail a cruise ship there with more than 
1.000 American Catholics during Pope 
John Paul Li’s visit in January. 

The approval is expected to be the 
■ first of several granted to Roman Cath- 
olic groups for the visit. 

Tehran- Jidda Flights 

TEHRAN (Reuters) — Iran Air will 
resume direct, scheduled flights to 
Saudi Arabia in September for the first 
time since the 1979 revolution in Iran. 

Iran Air’s managing director, Hass an 
Shaft!, told the official press agency 
IRNA that weekly flights between 
Tehran and Jidda would begin Sept. 14. 

Americans in Saudi Arabia are still 
under threat of attack, the U.S. Embassy 
said, citing reports of surveillance or 
probes of U.S. facilities that suggest 
planning for terrorist action. (AP) 

This Week’s Holidays 

Banking and government offices will 
be closed or services curtailed in the 
following countries and their depend- 
encies this week because of national and 
religious holidays: 

MONDAY : Britom. Gibraltar. India i Bom- 
bay*. Literu. Nonhem Ireland. Philippines. Ukraine. 

TUESDAY: Namibia 

WEDNESDAY : Moklota. Philippines. 

THURSDAY: Georg*. 

FRIDAY: Slovakia. IsneL 

SATURDAY : Kazakstan. Peru. Turkey 

Sources: JP. Morgen. Reuters. Bloomberg. 













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The Republicans Rev Up — for 2000 

By Richard L. Berke 

Nne Yurt Junes Sen ice 

. INDIANAPOLIS — Like it or not, 
the cunain is up on the presidential 
campaign for 2000. -And nowhere was 

irJLI" 0 ? a PP arent thai1 here in the 
Heartland over the weekend. 

The scene at a Republican conference 
at Indianapolis's convention center 
would have been expected if rhe Indiana 
primary were 32 days away — not 32 
njonths: Prospective presidents were 
plying their stump speeches and court- 
ing reporters and donors. There were 
rank-and-file Republicans sizing up the 
i reld. And, of course, there were bumper 
stickers aplenty. Most were emblazoned 
with the expected names, although there 
! surprises, like “Thurmond-Helms 
2000. Don't Waste 200 Years of Ex- 

• When the Midwest Republican Lead- 
ership Conference last gathered in In- 
dianapolis. in 1979, a reporter at the 
event noted that the joint appearances of 
presidential competitors had become 
"cattle shows.” 

; These days, cattle shows are an es- 
tablished , albeit interminable, rite of 
American politics. But never in memory 
have the shows started so early. The 
usual starting point for events like this is 
after the midterm elections, although in 
1993 some traditionalists were aghasr 
that New Hampshire Republicans dared 
stage a dinner with presidential hopefuls 
in late October. 

But on this lazy weekend at the height 
of a swdteraig summer, when even 
President Bill Clinton is on extended 
vacation. Republicans who want his job 
flocked to die conference, which at- 
tracted more than 1,000 Republicans 
and lobbyists from 13 states. 

Johnathon Willey, executive director 
of the Republican Party in Indiana, said 
it was no feat to lure party luminaries 
here. When one candidate sees that 
another is coming, they also warn to be 
there as well to try to compete.” 

His boss. Michael McDaniel, chair- 
man of the state party, repeated this 
boastful mantra all weekend: "I believe 
we are not only going to have the even- 
tual nominee but the next president.” 

Two of the potential nominees on the 
roster. Governor George Bush of Texas 
and Senator Fred Thompson of Ten- 
nessee, were the subject of particular 
interest because they had never before 
attended these cattle shows. 

Other speakers included veterans of 
these events: Dan Quayle, the former 
vice president; Jack Kemp, the vice 
presidential nominee last year, Lamar 
Alexander, the former governor of Ten- 
nessee; Speaker Newt Gingrich of the 
House; Steve Forbes, the multimillion- 
aire publisher. Alan Keyes, a radio 
broadcaster, and Representative J.C. 
Watts of Oklahoma, who is angling to 
run for vice president. 

‘‘Everybody who’s anybody is 
here, ’ ' said Betty Landiss Holmes, who 
works pan-tune in a library in Louis- 

ville. Kentucky, and has long been ac- 
tive in Republican politics. Mrs. 
Holmes, who said she was “barely past 
65.” said she had traveled here to in- 
spect the presidential limber and would 
"go back to Kentucky to spread the 

The intense, and early, jockeying re- 
sults in pan from the attractiveness of 
running for the White House in 2000: 
There will be no incumbent president 
seeking re-election and. for the first time 
in decades, no obvious Republican heirs 
apparent are waiting for iheir nims. 

“In the past, we've always turned to 
the guy who’s gone around the track the 
most times.” said A1 Hubbard, a former 
Republican chairman in Indiana. “I 
think it's hurt us because we’ve been 
closed-minded to fresh faces.” Re- 
minded that the faces here were not all 
that fresh. Mr. Hubbard replied, 
"They’re not stale yet.” 

Another factor is that raising millions 
of dollars to mount a legitimate cam- 
paign is so arduous that candidates have 
to begin assembling staffs as early as 
possible. Thus, would-be candidates 
come here to make clear that they are 
serious, even as detractors mock rhe 
gathering os meaningless. 

Mr. Quayle did not play coy when 
asked Friday night why he and so many 
other White House hopefuls were be- 
ginning so early. "You know politics.” 
he said. “If people are serious about 
running for the White House, it never 

jjrjj " A A t 

A Federal Cure for a Glut of Doctors 


; By Amy Goldstein 

• Hushingivn Pi<si Service 

federal government has 
agreed to pay hospitals 
around the United States hun- 
dreds of millions of dollars 
not to train doctors, in a 
highly unorthodox initiative 
aimed at cutting back a grow- 
ing glut of physicians. 

TTie initiative, contained in 
the new federal budget agree- 
ment. extends to America's 
1,025 teaching hospitals an 
offer similar to a controver- 
sial experiment approved for 
New York earlier this year. . 

. That experiment, which 
will pay hospitals in that state 
S400 million over the next sev- 
eral years while they gradually 
decrease the number of young 
doctors they train, drew an 
outcry from teaching hospitals 
elsewhere that felt New York 
had wangled a lucrative spe- 

cial deal. Their protests attrac- 
ted the sympathy of congres- 
sional Republicans who 
decided that, instead of trying 
to block the money for New 
York, they would expand the 
opportunity nationwide. 

The payments represent a 
rare attempt by the federal 
government to use subsidies 
as leverage to shrink a par- 
ticular work force. 

“I know -of no profession 
where there has been as much 
federal effort to regulate,” 
said Uwe Reinhardt, a health 
economist at Princeton Uni- 
versity. “You don’t do it for 
economists, for architects, for 

The payments also are the 
government’s first effort to 
constrict the pipeline of 
people entering the medical 
profession. Several influen- 
tial groups have warned re- 
cently that America has too 
many doctors, particularly 

specialists, and have urged 
the federal government to Im- 
pose limits on the number of 
recent medical school gradu- 
ates. known as residents, who 
pursue several years of ad- 
vanced tr ainin g before begin- 
ning to work on their own. 

But until now that advice 
has met with legislative re- 
sistance. The New York ex- 
periment and the nationwide 
initiative hinge on changes in 
Medicare, the federal insur- 
ance program for the elderly 
and disabled. Since it began. 
Medicare has heavily under- 
written residency training 
programs and has, in effect, 
turned residents into prized 
and inexpensive labor for 
their hospitals. Taxpayers 
spend S7 billion a year on the 
training of residents. 

Until now, many teaching 
hospitals have been relucrant 
to cnx back, because every res- 
ident translates into an average 




California Ponders the Fate 
Of Smokers 9 Last Bastions 

Smokers have already been banished 
from airplanes and from many workplaces 
and restaurants. Now Californians are de- 
bating whether to throw them out of the 
one public place where many could puff in 
peace — bars. 

The workplace ban on smoking enacted 
bv the state in 1994 is one of the toughest in 
tire country: It prohibits striking in most 
indoor workplaces and allows local gov- 
ernments to enforce even stricter ordin- 
ances, which scores of cities and counties 
have done. But the 1994 law temprarily 
exempted bars and casinos. Unless the 
state assembly now extends that exemp- 
tion, smoking in such establishments will 
be banned by year’s end. 

Some bar owners say a ban could drive 
them out of business. Beverly Mathis- 
Swanson, a spokesman for a group called 
Tavern Owners United for Fairness, pre- 
dicts many customers will stay home if 
smokina is outlawed. “A few will pop m 
and have a fast one, but they won’t stay and 
chitchat and play a game of pool and make 
a nice evening of it,’ * said Mathis- S wanson, 
half-owner of the One Double Oh Seven 
Cub and Smoking Parlor in Santa Cruz. 

Other bar owners, however, say they 
have gone smoke-free, voluntarily, almost 
-lainlesslv- Lou Moench, proprietor of a 
■ ’ ’ -id smoking a 

Santa Monica pub. banne 

i pub. canned smosing at his 
establishment five years ago. “We have 
continued to flourish,’ he said. 

For now, the legislation to extend the 
exemption is caught in a procedural 

Short Takes 

Spanking is increasingly viewed by 
Americans as a form of abuse with no 

place in school or home. Since 1974, 27 
states have banned paddling in schools. 
Public condemnation of spanking has 
grown steadily. In 1968, a survey found 
that 94 percent of Americans thought chil- 
dren needed ‘ ’a good spanking’ ’ from time 
to time. By 1995, the figure had fallen to 67 
percent. Yet what people say often differs 
from what they do. In a 1994 survey. 75 
percent of psy chologists said they opposed 
spanking, yet 48 percent admitted to hav- 
ing spanked their own children. And de- 
bate continues on spanking’s effects: A 
study reported recently to the American 
Psychological Association found that chil- 
dren who had been spanked have more 
behavioral problems as adults than those 
who had not been; but this survey has been 
challenged as being based on unrepres- 
entative samples. 

Religious supply stores say that 
statues of St. Joseph are one of their 
biggest selling items. The reason: The 
statues are bought by home-sellers for buri- 
al in the yard, in the belief that the patron 
gninr of the home can expedite a sale. The 
belief is a persistent one: Each year, more 
than 2 million of the statues are sold. 

When Shari Puorto, 29, and Missy 
McLain, 28, finally got around to clearing 
out the garage in a house they rent in 
Hermosa Beach, California, they made a 
grisly discovery: Inside the black plastic 
garbage bags piled up in a corner were 
arms, legs, skulls and other human rem- 

n3 "I ran out of the garage panicked.’ ’ Ms. 
Puerto told the Los Angeles Times. “It 
was very surreal.” 

The parts were well-preserved, and po- 
lice examining the find, noticed a smell of 
formaldehyde. Turns out that they had 
been left there by a former tenant, an 
overzealous chiropractic student, who said 
he had brought them home from school for 

“home study." . . .. 

Authorities are investigating whether 

the man broke a ny laws. - 

Brian Knowlton 

subsidy of 5100.000 a year. 

“It hasnoi been financially 
rewarding to downsize,” said 
Muncey Wheby. associate 
dean for graduate medical 
education at the University of 

Under the budget agree- 
ment, hospitals that downsize 
will not get extra money out- 
right. But if they volunteer to 
reduce their residency pro- 
grams by 20 percent or 25 
percent over five years. Medi- 
care will cushion the financial 
blow. For the first two years, 
it will pay the whole subsidy 
for the "missing residents. 
After that, the payments will 
taper off for three years. 

The agreement also essen- 
tially forbids hospitals to in- 
crease the sizes of their res- 
idency programs. 

Administration health offi- 
cials and leading Republicans 
say that the initiative will give 
hospitals a powerful incentive 
-to-wain fewer doctors and that 
Medicare will save money in 
the long run. After five years, 
the payments will cease. 

Bui others suggest that 
hospitals will be rewarded 
needlessly for cutbacks that 
some have already started to 

“I don't know where the 
hell a Republican Congress 
gets off doing labor-force 
planning for the medical pro- 
fession,” said Robert Moffit, 
deputy director for domestic 
policy studies at the Heritage 
Foundation, a conservative 
think tank. “As an economic 
principle, it is absurd.” 

How many physicians 
America produces has impor- 
tant effects on the cost of the 
health care system. The great- 
er the number of doctors, re- 
search has shown, the more 
medical tests and expensive 
specialist treatment patients 
tend to receive, because phy- 
sicians find subtle ways to 
keep themselves employed. 

with more than 700,000 
physicians, the United States 
has more doctors per capita 
than virtually any other coun- 

y From Politics 

ecutors charged a friend of the 
Weavers, Kevin Hanis, with 
first-degree murder for killing 
U S. Marshal William Degan 
in" the gunfight that began the 
confrontation. WP) 


^ Court in 


baby was addresses of thousands of »at 

■ [A?) offenders to be mate. puMie- on aunaay waw 

State officials said jhey fjJrunp boats strayed mto 

would release the namwi^n ^ elaunc hLg danger area off- 

month. \ NIti t Reuters ) 

• A $^05 million NASA sci- 
ence mission failed to get off 
the ground on Sunday when 
Ot Wvarc craved into 

week for ham- 
pers and Burger 
ild end with beef 
st grills of the fast- 
which has been 
te largest meat re- 

history — -25 mil- 

of patties pro- 

• The FBI sniper who shot 

and killed Vicki Weaver, the 

wife of white separatist 

Randy Weaver, in itelm 

siege at Ruby Ridge, Idaho, 
of pames pw- siege j. with man- 

Hudson fJantm ^, t g° in a before the five- 
ne of every four sung .J Qf ^nutations 

iC «S5 Kd h^e foreclosed crim- 

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W at M. Vjmfc.'Bonrr 

ANIMAL HOUSE — Bill and Hillary' Clinton find something to laugh 
at while going through the Martha's Vineyard Agricultural Fair. 

Gingrich Defies 
Clinton on Welfare 

grich has accused President Bill Clin- 
ton of caving in to unions on rules 
that, he said, undermine the welfare 
law. The House speaker vowed that 
his central legislative drive for the fall 
would be a bill aimed at correcting 
those weaknesses. 

His comments showed a new com- 
bativeness after months in which Re- 
publicans in Congress have worked 
closely with the White House on is- 
sues like balancing the budget. 

But Mr. Gingrich, addressing 
1.000 Republicans from Midwestern 
states who gathered here for the 
weekend, made it clear he was eager 
to take on Mr. Clinton over welfare 
and said he had discussed the matter 
with Senator Trent Lon. the Repub- 
lican leader, and other important fig- 
ures who were ready to join him. His 
remarks signaled difficult times lead- 
ing up to next year's midterm elec- 
tions, if he and other Republicans 
follow a strategy of attacking Mr. 
Clinton and the unions on welfare. 

”We ought to finish welfare reform 
by passing this law.” Mr. Gingrich 
said, "a welfare reform implementa- 
tion bill, because the Clinton admin- 
istration. working with the unions and 
the bureaucrats, is trying to undermine 
and destroy welfare reform." 

The 1996 welfare law gives the 
states control of most of the welfare 
system, requires recipients to go to 
work within two years and limits pay- 

ments to families to five years. When 
be signed the hill last year. Mr. Clin- 
ton called it imperfect and vowed to 
fight for changes, many of which he 
won in the balanced-budget bill he 
signed last month. (NYTi 

Businessmen Back 
Virginia Spending 

— Hoping to counter the tax -cut fever 
fueling the Virginia governor's race, 
business leaders from throughout the 
Old Dominion are planning a fall 
campaign ro ay to convince voters 
and lawmakers that the state should 
spend more on roads and schools. 

Tie executives are fighting the zeal 
for budget-balancing and tax-cutring 
that has spread in recent years. In a 
striking role reversal, many of Vir- 
ginia's business leaders now are agit- 
ating for more spending, while the 
candidates for governor are hesitant 
to promote grand building programs. 

The more than 100 executives, in- 
cluding Republicans and Democrats, 
plan to use their clout and wealth to 
try to accomplish what they say politi- 
cians can’t, or won't. { WP) 

Quote/ Unquote 

Governor George Bush of Texas, a 
rising star of the Republican Party, on 
speculation about a 2000 presidential 
bid: “I’m not planning to follow in 
my father's footsteps. I will not jump 
out of any airplane." (AP) 

Clinton Seeks 
More Leeway 
To Do Deals 
On Free Trade 

By James Bennet 

Nor Yvri Times Sen ice 

EDGAR TOWN, Massachusetts — 
President Bill Clinton has called on 
Congress to give him greater freedom to 
negotiate free trade agreements with 
other countries, getting a jump on one of 
the toughest legislative challenges that 
await him when he returns from his 
Martha's Vineyard vacation. 

In his weekly radio address, Mr. Clin- 
ton made a detailed defense of his eco- 
nomic strategy, which he said hinged on 
opening more markets abroad with 
"tough new trade agreements." 

“To keep our economy growing and 
to create these good jobs,’ * he said, "we 
must keep tearing down foreign barriers 
to American goods and services.” 

Mr. Clinton is seeking "fast track” 
authority, which would give the admin- 
istration greater flexibility in seeking 
new trade accords around the world, in- 
cluding a long-promised extension of 
free trade privileges to Chile. The fast- 
track legislation would allow the admin- 
istration to negotiate trade accords that 
Congress could approve or disapprove, 
but not amend. 

The theory is that if Congress could 
change the contents, negotiations would 
never stop. The last fast-track authority 
lapsed three years ago. 

But the president faces stiff oppo- 
sition within his own party, in a debate 
that is likely to figure prominently in the 
next presidential race. With the backing 
of labor unions. Representative Richard 
Gephardt. Democrat of Missouri, the 
House minority leader, opposes the le- 

Opponents say that the North Amer- 
ican Free Trade Agreement has cost 
America jobs, depressed wages and 
damaged the environment along the 
border, assertions that the Clinton ad- 
ministration disputes. 

Trying Saturday to blunt the main 
objections to his trade policy. Mr. Clin- 
ton said he would “continue to promote 
worker rights and responsible environ- 
mental policies with our trading part- 

The administration is now counting 
on passage of the legislation this fall, 
since it probably could not win con- 
gressional approval in 1998. a midterm 
election year. 

Mr. Clinton plans to submit the le- 
gislation in the second week of Septem- 
ber. aides said. 

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Gangs’ Gunfire Disrupts Macau’s Sluggish Whiting Game 

. . n ■ -_i_ i. Hfi7f»ns with fee 


By Edward A. Gargan 

New York Timer Service 

MACAU — It was just another night 
in Macau. 

A warm rain glazed die pavement as 
die solitary man parked Ins scooter and 
strolled into the Mou Kei Restaurant. He 
looked around, walked swiftly to the 
table where Ng Ming-chuen, a casino 
operator, was presiding over a bois- 
terous dinner, whipped out a 9mm auto- 
matic and fired into Mr. Ng's stomach. 
Then he turned, strode out of the res- 
taurant, mounted bis scooter and dis- 
appeared into the night 

For six months, this tiny Portuguese 
colony on the south China coast has 
been engulfed in a gang war of in- 
creasing ferocity — a war of contract 

Irillines firebombiPRS and intimidation center of Asian commerce it was in the 
— for control of the territory’s 17th and 15th centuries, Macau lingers 
gambling industry, the heartbeat of Ma- on the fringes of Portuguese memory as 
cau’s otherwise sluggish economy. it continues its decline into a setting for 

“Everybody wants a bigger share of gang wars, gamblers and high-heeled 
this cake," said a senior Chinese jour- prostitutes, a territory already con- 
nalist here who asked that his name not trolled less by Portugal than China, 
be n sed because the gangs, known as When Captain Edward Belcher 
triads, have been harassing journalists, planted the Union Jack on Hong Kong 

Like Hong Kong earlier tins year. Island to assert Britain’s imperial claim 
Macau will return to Chinese rule. And in 1841, Portuguese merchants had 

with die surrender of Macau on Dec. 20, 
1999, Portugal, which established the 
first European beachhead on die Asian 
mainlan d here in 1557, will bow out as 
the last European. colonial power in 

But Macau is nothing like Hong 
Kong, die former British colony only 65 
kilometers to the east. No longer the 

Stalemate Fails to Quell 
Afghans’ Taste for War 

Taleban Morale Is High Despite Setbacks 

By John F. Bums 

New York Times Service 

HOTK1 PASS, Afghanistan — When 
Abdur Rauf passed through this des- 
olate outpost Saturday on tus way to the 
current front line of the Afghan war, be 
was filled with the sense of divine mis- 
sion that comes with being a fighter for 
Taleban, the hard- line Islamic move- 
ment that controls about two-thirds of 

Leaning through the window of a 
Japanese pickup truck, Mr. Ranf. 25, 
said he was not daunted by the artillery 
fire echoing beyond the pass, where the 
forces of a more moderate Afghan lead- 
er. Ahmed Shah Masoud, have been 
probing Taleban defenses. 

In fact. Mr. Rauf said, he could hardly 
wait to join his fellow Taleban fighters 
in one of the rock-and-mud bunkers that 
dot the barren landscape. 

“I am not afraid of dying, because 
this would be martyrdom." he said, 
fingering a cloth-wrapped copy of the 
Koran that was wedged between the 
dashboard and the windshield of his 

“The Koran teaches us that it is a 
blessing to die for Islam, and that God 
will give me paradise in return. ” 

For Mr. Rauf, and for dozens of Tale- 
ban fighters encountered on die Sham- 
wali Plain north of Kabul, the Afghan 
capital, it seemed to matter little that tile 
fighting raging nearby puts Taleban 
back where it was almost a year ago. 

In the first week of October 1996, 
after Taleban captured Kabul from Mr. 
Masoud’s forces, the battlefront on one 
of two roads running northward from 
Kabul to the Hindu Kush mountains was 
just where it is now, at Hotki Pass. 

Earlier this year, Taleban troops vir- 
tually roiled over the Masoud forces and 
two allied opposition groups. By late 
May, Taleban had entered Mazar-i- 
Sharif, a city 400 kilometers (250 miles) 
north of Kabul that has been the prin- 

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Tensions Boil Over 

Continued from Page 1 

Kashmir as an integral part of India. 
Islamabad wants the predominantly 
Muslim Kashmiris to decide in a UN- 
mandated plebiscite whether to join Is- 
lamic Pakistan or Hindu-majority India. 
Some of the Kashmiri groups fighting 
Indian rule seek an independent state. 

National television in India and an 
Indian Army spokesman said the firing 
began across the frontier zones of Uri 
and K argil in India on Friday and later 
spread along the 1.200- kilometer (750- 
mile) control line. 

The army spokesman, speaking from 
Jammu, said fighting was continuing. 

He said Indian troops had seen 
“Pakistani soldiers carrying their dead 
and wounded” after the exchanges of 
fire. He said they “resorted to artillery 
fire and pounded our positions with 
mortar. We retaliated with artillery.” 

The Press Trust of India said fighting, 
mainly with small arms, was continuing 
at eight places on Sunday. 

Indian officials said the heaviest 
shelling was occurring at Uri, 400 ki- 
lometers northwest of Jammu, while 
there was also an artillery duel at Kargil. 
to the east of Uri. 

An Indian Defense Ministry spokes- 
man in New Delhi said that the 
Pakistanis had fired 500 artillery 
rounds, “besides many, many thou- 
sands of small arms fire.” . 

Abdul Aziz, a Muslim Indian villager 
from near the Uri border, confirmed that 
there had been “loud explosions.” 
adding that it was the first time for 
several years “that we saw Indian sol- 
diers fire heavy artillery on Pakistan.” 

(Reuters. AFP. AP) 

tipal stronghold of the so-called north- 
ern alliance forces. 

For a moment, it looked as if the war 
mig ht soon be over. But the Taleban 
fences overreached, suffering. a debacle 
that cost them about 400 men lolled, at 
least 3,000 captured, and a humiliating 
retreat almost all the way back to Ka- 

hi Mazar-i- Sharif, Taleban com- 
manders tried to impose their harsh 
farm of Is lami c rule on a population 
accustomed to a more moderate way of 

This ignited ethnic hostilities, too, 
since Taleban forces are composed 
overwhelmingly of Pas hams, the 
mainly southern group that accounts for 
more than 40 percent of the Afghan 
population of 15 million to 20 million, 
while the northern alliance brings to- 
gether forces that represent the minority 
Tajik, Uzbek and Hazara populations 
concentrated in the central ana northern 
regions of the country. 

Three months later, the war appears 
to have reached a stalemate. 

For three weeks the Masoud forces 
have been stalled, controlling a salient 
that runs south from the southern es- 
carpment of the Hindu Kush along the 
so-called old road across the Sbamwali 
Plain to a point about 20 kilometers 
north of KabuL 

Along the second major road that 
crosses the plain, the “new road” that 
runs 15 kilometers farther east, the Ma- 
soud forces have been held at Hotki 
Pass, about 30 kilometers from Kabul. 

As in much of the fighting in Af- 
ghanistan in the last 20 years, life at the 
front is a desultory affair. 

Only rarely do opposing forces en- 
counter each other in infantry battles. 
Instead, they stand off across a no- 
man’s-land of several kilometers, firing 
salvos from Soviet-made field guns and 
rocket launchers. 

Occasionally, a shell or a rocket falls 
on an enemy bunker or encampment 
but more often it is civilians in the 
villages that dot the plain who are the 

According to officials of the UN High 
Commissioner for. Refugees, nearly 
200,000 people have fled the Sbamwali 
Plain this year. This represents most of 
the population of a region that in its 
more fertile areas on the western side of 
the plain, has been Kabul’s traditional 

The exodus has swollen the already 
overstretched capacities of the capital, 
where about a million people struggle to 
survive in a city that is at least two-thirds 
rubble from earlier phases of ihe war. 

Kabul is an ever more desperate 
place. The streets are filled with beggars 
of all ages, their hands reaching for the 
few ragged Afghan notes that will buy 
one oftbe flat, oval-shaped loaves of 
bread called nan that are the basic 
Afghan diet 

Most of the supplicants are men and 
boys. But despite Taleban *s repressive 
rules for women, which have included 
closing all schools for girls, banning 
women from holding jobs and ordering 
women to stay off the capital's streets, 
small groups of women continue to defy 
the edicts, many of them to join in the 

Western aid officials calculate that at 
least a third of the city's population, 
perhaps a half, depend on food handouts 
from aid agencies. 

But the desperation seems to have 
little impact on the men who prolong 
the war, who continue to speak, as mil- 
itary commanders in Afghanistan have 
done for two decades, of the break- 
through that will bring final victory, or 
at least such a weakening of opposing 
forces that terms of peace can be dic- 

already been busily, and profitably, 
trading with China for 300 years from 
their base in Macau. Bnt while Hong 
Kong went on to become Asia's dom- 
inant financial and trading center, Ma- 
cau sank into obscurity. 

Hong Kong, with its great trading 
houses, formidable banks and its far- 
superior harbor, ensured the eclipse of 

Macau. British trade dominated Asia, 
while Portugal’s principal colonial in- 
terests increasingly lay in Africa. 

Through this century, it has been 
Hong Kong that served as the refuge for 
Chinese fleeing war, deprivation or 

The British, though, treated all 
Chinese immigrants — whether. 
Cantonese peasants or- Shanghai ty- 
coons — as second-class citizens, only 
at the last moment granting full cit- 
izenship to a favored few. 

In Macau, on the other hand, in 1981 
Portugal offered passports to anyone 
who bad been bom in the territory, and 
since then any child boro in the territory 
with at least one Portuguese parent is 
also entitled to citizenship. 

Now, 27 parent of Macau’s 450,000 

people are Portuguese citizens with the 
right to live anywhere in the European 

Still, despite the colonnaded squares 
and t hick- walled b uildings in Por- 
tuguese pastels, and the restaurants of- 
fering chorizo sausage and vinho verde, 
the small peninsula and two nearby is- 
lands that mate up Macan have all but 
lost the tincture of Iberia. Economically, 
culturally, politically, China runs this 

While Hong Kong's last governor, 
Chris Patten, adopted a combative pos- 
ture toward Beijing, making the tran- 
sition to Chinese rule rocky and un- 
certain, Macau's Portuguese rulers have 
enjoyed a largely cooperative relation- 
ship wife Cfrina. In reality, Portugal all 
but relinquished control of Macau in the 


WET WALK — A woman wading along a railroad track in Bombay after torrential rain, along with a 
High tide, caused heavy flooding that killed five people. Forecasters predicted ram through next weekend. 

China Defends Policy on Tibet 

BEUING — China hit back Sunday against accusations 
by a U.S. congressman that it exerted a “death grip” on 
Tibet, saying Tibetans were happier and wealthier and the 
only monks in jail were those seeking independence. 

The chairman of the regional People's Congress, Raidi, 
said Tibetans enjoyed full religious freedom and that crack- 
downs on those who used religion in their campaign to end 
Chinese rule were aimed at safeguarding the religious 
rights of Tibetans. His remarks were carried by fee official 
Xinh ua news agency. 

Of fee U.S. congressman, Jim Wolf, Republican of 
Virginia, he said, “All people with a sense of justice, 
including the Tibetan people, are enraged by his actions.” 
Mr. Wolf visited Tiber unannounced from Aug. 9 to 13 and 
asserted that the capital, Lhasa, was being swamped by 
government-sent Chinese settlers and that Tibet was dis- 

Mr. Raidi responded. “There are followers praying with 
prayer wheels in band in all major monasteries in Lhasa and 
no one interferes in their activities." He said the region had 
46,000 monks and nuns who were allowed to worship 
freely. ( Reuters ) 

Ramos Denounces Archbishop 

MANILA — President Fidel Ramos denounced fee 
Philippines’ top churchman as un-Christian on Sunday and 
accused him of fomenting divisions in fee countiy. 

Mr. Ramos did not mention Cardinal Jaime Sin by name, 
but left no doubt he was referring to Manila’s powerful 
Roman Catholic archbishop. Cardinal Sin said Wednesday 
feat Mr. Ramos had lost the people’s trust and urged them 
“to dissociate themselves from supporting” his admin- 

Addressing charismatic Christians, Mr. Ramos said Sun- 
day that unity was vital in nation-building. * ’This is why I 
consider it un-Christian and unpatriotic for anyone to call 
for noncooperation and divisiveness,' ’ he said. ( Reuters) 

Clashes Mark Bangladesh Strike 

DHAKA, Bangladesh — Police used riot sticks and tear 
gas Sunday in running battles with opposition activists 
during a genera] strike feat kept transportation off fee streets 
and shut businesses across Bangladesh, witnesses said. 

Clashes erupted in Dhaka and its suburbs after activists, 
exploded dozens of bombs to scare away fee few people 
who ventured on fee streets. Witnesses said up to 50 people 
were injured About 30 activists were arrested, they said. 

The daylong strike was called by Khalida Zia. chief of 
fee main opposition Bangladesh Nationalist Party, to 
protest an increase in fuel prices. ( Reuters) 

Taipei May Lose Saint Lucia Tie 

TAIPEI — Taiwan said Sunday that it was making a last- 
ditch effort to keep the Caribbean country of Saint Lucia 
from switching diplomatic recognition to fee island's rival, 

But Foreign Minister John Chang said Taiwan would not 
feel frustration if Saint Lucia did switch ties, because it would 
soon establish official relations wife another country. 

The newspaper China Times reported that Taiwan's 
ambassador to Saint Lucia had been advised of the decision 
on Saturday. Mr. Chang said Taiwan was ‘ ’making greatest 
efforts” to preserve ties wife Saint Lucia. 

He said if Saint Lucia did switch recognition to Beijing, 
“we would not be upset by such a small frustration. ” 

"Actually, a country will develop official ties with us.” 
he said. He declined to identify (be country. ( Reuters ) 

Hun Sen’s Troops Overrun Rebel Town 

C.‘av*int tnOvr Stuff Fnmi DofUirJm 

CHONG CHOM PASS, Thailand — 
Cambodian troops loyal to Hun Sen on 
Sunday overran O’Smach. the last fron- 
tier town held by Ihe ousted first prime 
minister. Prince Norodom Ranariddh, 
witnesses said. 

A pocket of fewer than 50 of Prince 
Ranariddh's soldiers, they said, aban- 
doned their last position near the border 
before sunset Sunday, taking with them 
a portrait of King Norodom Sihanouk 
from a wall of a pavilion on the edge of 

Some of the troops were seen leaving 
fee town on an armored personnel car- 
rier while others followed on foot, ap- 
parently heading toward Anlong Veng. 
stronghold of the Khmer Rouge, who 
also are fighting Mr. Hun Sen. 

Fighting erupted in western Cambod- 
ia after Second Prime Minister Hun Sen 
staged a coup against Prince Ranariddh 

in Phnom Penh on July 6. The two had 
headed an uneasy coalition government 
that emerged from United Nations- 
sponsored elections in 1993. 

Mr. Hun Sen steadily gained the up- 
per hand across Cambodia, and 
cornered the last of Prince Ranariddh's 
forces in O'Smnch. 

Thai soldiers guarding the frontier 
with Cambodia look Up firing positions 
because it was feared that troops loyal to 
Mr. Hun Sen would push their rival 
faction across the border. 

Witnesses said that gunfire died 
down in O’Smach after Prince Ranar- 
iddh's forces gave up resistance, but 
journal ists monitoring the fighting said 
they did not see Mr. Hun Sen's soldiers 
moving up to secure the border. 

Thai military sources estimated that 
each side lost about 50 soldiers during 
10 days of clashes at O'Smach. 

They said at leasr four wounded sup- 

porters of Prince Ranariddh were per- 
mitted to enter Thailand on Sunday for 
medical treatment. 

Thai military sources did not confirm 
the fall of O'Smach, however. Major 
General Chirasak Prommopakom . chief 
of Thailand's northeastern Suranaree 
Task Force, said: “O'Smach has not 
fallen. In my opinion, fighting will con- 
tinue and get worse.” 

Analysts in Phnom Penh said the 
abandonment of the royalist stronghold 
would not necessarily mean an end to 
the fighting in Cambodia. 

They pointed to Hun Sen's remarks 
this week that he would seize Anlong 
Veng from the Khmer Rouge next, and 
to comments from officials that they 
were ready to fight the Khmer Rouge. 

“We will crack down on all anarchic 
forces." Tea Banh, co-defense Min- 
ister. said Sunday. “Anlong Veng is the 
next step. ’ ’ (Reuters. API 

i Shenzhen. 


late 1960 s, during China’s Cultural*: 

Then, after the Portuguese revolution . 
of 1974, which brought the introduction' 
of democracy and dismantling of cm-, 
pire, Lisbon’s interest in Macau ebbed' 
almost completely and the new gov- 
ernment even sought the immediate re - 1 

turn of Macau to Chinese rule. 

Although it is not entirely clear why-' 
niina was slow to reassert formal con-- 
trol over Macau, one concern seems, to . ; 
have been that problems in trying to 
integrate the territory might impede the 1 
handover of Hong Kong. 

“ China dominates industry, textiles,' 
real estate, all new building, gam- 
bling,” said Rui Afonso, a lawyer and 
member of Macau’s Legislative As- 
sembly. ‘ ‘And the Chinese here are very 
patriotic. I mean it They have very 
close ties to China.” 

Across the traffic circle from Ma- 
cau's biggest money-spinner, fee Lis- 
boa Casino, fee granite- and-glass 
monolith of the Bank of China casts its 
long shadow over the territory. At news\ 
stands, fee biggest- selling paper is the' 
Chinese-owned Macau Daily. Neigh- 
borhood associations, trade unions and' 
civic groups all are dominated by the 
Chinese Communist Party. 

“All this is because in 1966 there was 
a rebellion against the Portuguese gov- : 
emment led by Beijing,” said Antonio.’. 
Ng Kwok-cheong, a social worker for- 
the Christian aid agency Caritas and the: 
sole pro-democracy lawmaker in the 23-* ■ 
member assembly. “They succeeded. 1 
To this day, China controls Macau.' . 

Yet as Macau trundles toward formal 
Chinese suzerainty — Portugal declared; 
in 1976 that China was Macau's sov- 
ereign and that it was only adnrinls-, 
tering fee territory — the Portuguese / 
government is confronting a sudden ex- 
plosion of turf wars by competing triads;- 
a civil service virtually devoid of local . 
people at the top and an economy rink- . 
mg under a glut of speculative real- 
estate deals and foreign indifference. . 

“Macau was never an international, 
place,” said Mr. Afonso, perhaps only. . 
forgetting fee first centuries of Par-- . 
tuguese rule, when Macau was the stag- 
ing point for fleets of Portuguese galle- - 
ons plying Asian waters and for Jesuits 
bent on c laimin g China and Japan for 
Roman Catholicism. 

‘ “The international community — the . 
Europeans, fee Japanese, the Americans 
— never had any stake in fee market 
We don’t have a single Japanese bank- 

Not everyone here, though, is pes- 
simistic about Macau’s prospects. 

"We had two factories in Hong- 
Kong,” said Eric Yeung, a Hong Kong 
businessman, cradling in his hand a. 
1950s-model Chevrolet, one of fee pre- 
cision toy models his company, Per-, 
fekta Toys Ltd., makes. “The labor 
supply there was very tight. We looked, 
at Taiwan but Macau was nearby.” 

Few Hong Kong industries followed 
in Mr. Yeung 's wake, preferring to loc- 
ate factories across fee border in China, 
where labor and land were plentiful and 
wages low. Today, manufacturing con-' 
tributes less than 15 percent to Macau’s 
economy, while gambling and tourism 
continue to grow, now making up 43; 
percent of the territory’s gross domestic . 
product. The remainder is made up of , 
banking and real estate. • . ^ 

This last sector, though, is crumbling - 
rapidly. On new land wrenched from the. 
sea, block after block of dnsty office 
towers and empty-eyed apartment 
buildings march outward from the ■ . 
Avenida da Amizada. fee product of 
frenzied property investment by main- . 
land Chinese in fee early 1990s. Almost 
all the buildings stand vacant, as do,, 
clusters of white apartment towers on 
the islands of Taipa and Coloane. 

In many ways, though, the territory's! 
economic woes are less Portugal's . 
worry than China's. Wife more than half 
ihe investment in Macau coming front’ 
China and with the Bank of China and. 
the Chinese conglomerate, fee Nam 
Kwong group, controlling virtually 
every important business sector. Por-- £ 
tugat, whose investments here are tiny,. r 
is concerned only about maintaining ' 
friendly relations with Beijing. 

As Portuguese rule winds down, it. 
has been the rising gang combat feat 
worries most people here. 

At one of fee restaurants along the 
waterfront Avenida da Republica, 
where rows of umbrella-covered tables 
stand mostly empty, a local restaurateur 
complained bitterly about the triad 

"It’s very, very bad.” he said, asking 
that his name not be used. “We’ve lost 
about 60 percent of our business. People - 
are not coming from Hong Kong.” 

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Japan Agonizes Over Its Role in Event of Conflict Over Taiwan 

By Nicholas D. Kristof 

<Vrw- York Times Scn u c 

TOKYO — What would happen if a 
war erupted between China and the 
United States over Taiwan, and Wash- 
ington asked Japan for support? 

Chinese officials were particularly 
offended by fee statement of one senior 
Japanese politician that Japan might 
back up any U S. military action in the 
area around Taiwan. 

“This is a signal of the Japanese 
intention to undertake military imer- 

everybody knows feat in fee end Japan 
will neither commit itself explicitly to 
backing up any U.S. military action in 
Taiwan nor exclude that possibility, in- 
stead, it will preserve some ambiguity. 

Still, the issue of Taiwan is one of the 

That reassured China by suggesting 
feat U.S.- Japanese military cooperation 
was under discussion simply because of 
the risk of a new Korean war. 

But then one of Mr. Kata’s adversar- 
ies in the governing party offered a 
different interpretation. Seiroku 

possible military liberation of Taiwan by 
mainland China," Mr. Kajiyama added,! 
in a triumph of candor over diplomacy. • 
No one is suggesting that Japan 
would actually send troops or ships to 
Taiwan in the event of war. The issue is 
whether Japan would allow fee United' 

mgton asked Japan for support? intention to undertake military utter- most sensitive in Asia, and the current different inieroretatirm c-. 7 “ n Ihe evenl of war - The issue is t 

Japanese government officials are ty- vention on fee Taiwan issue.” the of- uproar has underscored the growing dis- Kaiivaim the chief cabins ^ c e,her Japar ? wouId aJ tow the United' 

ing themselves in knots these days ad- ficial People's Daily declared last week cord within fee Japanese government said in a television intervlcw^^n’ ■ ? !e S T< i S? 6 - ,ts bases on * e Japanese 

dressing that issue — or. sometimes, not in Beijing. The Chinese government has about security issues and relations wife that the new 1 / jsland of Okinawa in a conflict against; 

addressing that issue. expressed “serious concern” and de- China. ?n ,te -fe- C ° V ' ^ whether Japan would provide 

The contortions have fueled a battle manded feat Japan explain remarks by a The issue arose because Japan and the Strait. * 3 ai wan such assistance as spare parts or fuel to, 

within Japan's dominant political party top official. ' United States are revising guidelines Mr. Kaiivnm-i .h,. lhe Africans or medical care to the 

and provoked new tensions between Prime Minister Li Peng added feat a about military cooperation. Koichi hi ions between the Lln U iV^ Uri ^ r< 7 wounded - 

China and Japan. The strains are coming Japanese official’s comments were “ut- Kato. secretary-general of the Liberal Japan would be in d^n irSw ““ Mr Nashimoio has not taken a public, 

at an awkward time: Prime Minister terly unacceptable” and warned that Democrats, who lead the governing co- refused to nrovide P ™ UDIe J, 1 position on fee issue, but his govern-' 
Ryutaro Hashimoto is to travel to China was remaining vigilant about alition, declared that the guidelines United Slates in anv conf? 0 * 1, i ■ T em * Us lo defuse it by restating' 

Beijing early next month to try to “militaristic elements in japan.” were being revised with the Korean Taiwan. 3 met involving the formal position that the military 

strengthen relations. The fuss is a bit theatrical, because Peninsula in mind. “W- hr,..- .. . guidelines do not refer m anv en»*ifir' 

manded feat Japan explain remarks by a 
top official. 

Prime Minister Li Peng added feat a 
Japanese official’s comments were “ ut- 
terly unacceptable” and warned that 
China was remaining vigilant about 
“militaristic elements in Japan.” 

The fuss is a bit theatrical, because 

Strait. * 

Mr. Kajiyama noted feat security re- 
lations between the United States' and 
Japan would be in deep trouble if Japan 
provide support for fee 
Taivr S,ates * n an y conflict involving 

“We have strong anxieties about a 

the Americans or medical care to the 

Mr. Hashimoto has not taken a public, 
position on fee issue, but his govern-' A 
mem has tried to defuse it by restating' * 
tne formal position that the military 
guidelines do not refer to any specific’ 
country. K 


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Pop^ Ends Visit to Paris With a Mass for a Million Young Peopl 

By Charles Trueheart 

WdslungivH p, m Sen i,e 

r P Tu John Paul n returned 
to Rome-after celebrating Mass on Sun- 

day before a crowd of more than 1 
million mostly young Roman Catholics 
The police estimate of the faithful who 
turned out at a racecourse on the edge of 
Pans was nearly double expectations for 

the climax of this papal visit to Paris. 

Three-quarters of a million pilgrims 
who flocked here for a Catholic youth 
festival spent the night on the 55-hectare 
(135-acre.) infield of the Longchamp 
racetrack, and in the nearby woods of 
the Bois de Boulogne, after the Pope led 
a candlelight vigil Saturday night. 

When he returned ro Longchamp on 
Sunday morning, exuberantly ac- 
claimed once again as he traversed the 

C k° W q* m h L s S^ed-in “Popemobile." 
the Pope had drawn several hundred 
thousand more lor an open-air Mass. 

Th© police ,hal as many as 
JJ0.000 people watched the event on 
big screens outside the racetrack peri- 
meter. not counting spectators who fol- 
lowed the ceremonies on live television 
in France and around the world. 

Echoing a theme of his messages 
during four days in France. Pope John 
Paul called on the young to "go forth 
now along the roads of the world, along 
the pathways of humanity' while remain- 
ing united in Christ's church." 

Sheltered from the punishing sun by 
white umbrellas, the pontiff addressed 
the congregation in 12 of their lan- 
guages, directing a special message to 
the dispossessed of Central .Africa's 
war-ravaged Great Lakes region: "Dear 

friends, we know what hardships your 
peoples have experienced. With your 
friends in Paris. I say to you, remain 
courageous and remain the creators of 
reconciliation and harmony." 

The Pope, who is 77 and underwent 
Lancer surgery last year, showed both 
feebleness and stamina as he completed 
his 79th foreign trip as head of the 
Roman Catholic Church. "The longer 
we live." he said at one point Sunday, 
"the more we realize how precarious 
life is. and the more we wonder about 

Standing at his side and during much 
of his visit to Paris was rhe city's Roman 
Catholic archbishop. Cardinal Jean- 
Marie Lustiger. who is often mentioned 
as a possible successor to John Paul II. 

The six-day World Youth Days fes- 
tival that concluded Sunday was the last 

before 2000, when it will take place in 
Rome as part of the Vatican's com- 
memoration of 20 centuries of Chris- 

The Pope's four days in France w-ere 
not without controversy in a country 
with still-strong secular traditions. The 
French government was criticized for 
the expense of managing the extraor- 
dinary numbers of people who flooded 
Paris last week and the security nec- 
essary to protect the Pope, who was 
wounded in an assassination attempt in 
Rome in 1981. 

John Paul was; also attacked by the 
governing Socialist Party, among oth- 
ers. for a private visit he paid. Friday ro 
die grave of a friend. Jerome Lejeiine. 
who was perhaps France's most out- 
spoken ami-abortion firebrand until his 
death in 1994. The Pope's strict op- 

position to abort ion and contraception is 
at odds with the views of most French 
people, including its Carbolic popula- 
tion, and with French law. which has 
permitted abortion for 22 years. 

“France is a free country where 
everyone can say what they u-anr." Car- 
dinal Lustigcr said. "I would find it a 
little indecent not to allow the Pope to 
demonstrate loyalty to a friend. You 
have to excuse’ this French mania for 

Before departing from Orly airport 
Sunday, the Pope met briefly with Prime 
Minister Lionel Jospin, a Protestant 
who heads the Socialist government of 
this largely Catholic nation. 

On Saturday, the Pope preached a 
message of Christian reconciliation 
marked by an apology for the massacre 
of thousands or Protestants by French 

Catholics exactly four and a quarter 
centuries ago. 

“Christians did things which the 
Gospel condemns," the Pope said in 
French during a three-hour prayer vigil 
at the Longchamp racetrack. He was 
referring to the slaughter of thousands 
— and perhaps tens of thousands — in 
the streets of Paris on St. Bartho- 
lomew's Day — Aug. 24. 1572 — that 
helped spread a religious war in France 
and sriU casts a shadow over religious 
discourse here. 

' ' Belonging to different religious tra- 
ditions shouldn’t constitute a source of 
opposition and tension. On the contrary, 
our common love of Christ pushes us 
relentlessly to seek the path of unity." 
the Pope said to cheers front an ebullient 
crowd that covered the infield of the 

Bonn Denies 
Kohl Readies 
A Shuffle to 
Drop Waigel 

By John Schmid 

hiienutioiuil Herald Tribune 

FRANKFURT — Speculation in- 
tensified Sunday that Chancellor 
Helmut Kohl would cry to rejuvenate his 
re-election chances with a cabinet re- 
shuffle. including a replacement of Fi- 
nance Minister Theo Waigel, one of Mr. 
Kohl's least popular but most loyal cab- 
inet members. 

The German government denied 
Sunday that Mr. Kohl planned to recast 
his team, following similar denials in 
previous days. 

Members of Mr. Kohl's party, gov- 
ernment staffers and several weekend 
newspapers, however, reported thai 
such a move remained an option that 
made sense ahead of a bellwether elec- 
tion on Sept. 21 in the city-state of 

"It depends on Kohl," a Bonn gov- 
ernment official said. “I personally do 
not exclude such changes in this en- 
vironment It would be a good idea 
ahead of the Bundestag elections, giv- 

ing new life to the campaign." 

Mr. Kohl reluctantly dumps Mr. 
Waigel, it could enhance die Bonn gov- 
ernment's chances in national elections 
in September 1998. 

Mr. Waigel has been a lightning rod 
for voter complaints over Bonn's 
budget austerity, entitlement cots and 
post-unification tax hikes. - 

Dm Brake mcifi rAgcnic Frjfk-e-Pre^^c 

Bonn said Mr. Kohl, left, had no plans to recast his team to drop Finance 
Minister Theo Waigel. right. It also denied a report that Mr. Kohl would 
replace Mr. Waigel with Wolfgang Schaeubie, center, a top deputy. 


A voter poll by the Emnid polling 

group, published Sunday in the news- 
magazine Der Spiegel, showed the op- 
position Social Democrats widening 
their lead over Mr. Kohl’s center-right 

A leftist alliance of Social Democrats 
and Greens would unseat Mr. Kohl's 
coalition by 50 percent to 41 percent, 
Emnid found. 

Only 13% of Voters 
Back Swede Leader 

In his conservative and deeply Ro- 
of Ba 


man Catholic home state of Havana, 
some even scorn the private life of Mr. 
Waigel, who divorced his wife several 
years ago and remarried. 

Mr. Waigel, 58, launched much of the 
speculation himself a week ago when he 
called for a "new team" in Mr. Kohl’s 
cabinet, and then separately announced 
that be was weary of his own job and 
would not continue as finance minister 
after next year’s elections. 

Mr. Waigel could leave earlier than 
that, newspapers and other observers 

S **MrWaigel made himself into a lame- 
duck minister, giving the government 
another setback in efforts to advance its 

economic program. 

In an interview with Focus magazine 
to be published Monday, Mr. Waigel 
predicted Mr. Kohl would reshuffle the 
cabinet before the general election. 

- Peter Hintze, secretary-general of 
Mr. Kohl’s Christian Democrats, re- 
jected the notion of a cabinet sbakeup, 
according to Sunday's Frankfurter 
Alleemeine Zeitung. Any discussion on 
the subject is "totally superfluous, 
Mr. Hintze said. 

Ironically, the loss of Mr. Waigel, a 
oro-European, could prove a boon to 
Europe’s efforts ro umly behind a com- 
mon currency in 1999. . . , 

Mr. Waigel bit harder into the single- 

currency pledge to adhere ro a 3 perc e °J 
1997 deficit than anyone else in tne 


STOCKHOLM — Only 1 3 percent 
of Swedish voters want Prime Min- 
ister Goran Persson to be re-elected 
next year, according to an opinion poll 
published Sunday. 

The opposition leader. Carl Bildt. 
riding high at home after two years as a 
United Nations representative in Bos- 
nia, is the election favorite for 38 per- 
cent of Swedish voters, according to 

Three other ORT journalists, who 
are Belarussian citizens, remain in jail 
pending trial. Mr. Chernomyrdin, in 
remarks made at the Moscow' Inter- 
national Air Show, criticized Belarus 
for detaining the journalists, saying 
such steps were “unacceptable." (API 

Spy Story ‘Slander,’ 
Polish Leader Says 

the Gallup poll in the Expresses 

In the poll, 1,000 Swedes were 
asked who should be prime minister 
after the September 1998 election, 
Mr. Persson or Mr. BildL Twenty- 
percent replied that neither should be 
prime minister, while 29 percem gave 
no view. (Reuters) 

Russia to Enhance 
Ties With Belarus 

WARSAW — President Alek- 
sander Kwasniewski called a report 
that he met with a top Russian spy in 
Poland before becoming president 
"nonsense and slander" meant to try 
to discredit leftist politicians ahead of 
parliamentary elections. 

The rightist Zycie daily said it had 
found evidence that in August 1994, 
Mr. Kwasniewski, a former Commu- 
nist, met with Vladimir Alganoy, a 
former Soviet diplomat and KGB 
agent, during a vacation on the Baltic 

MOSCOW — Russia will 
strengthen its ties with neighboring 
Belarus despite the recent row over 
the arrests of Russian journalists 
there. Prime Minister Viktor 
Chernomyrdin said Sunday. 

"We shall do everything to 
strengthen our union, Mr. 

Chernomyrdin said. 

Two crews from Russia s ORT 
television were detained in Bela™ 5 
for allegedly trying to violate the Be- 
larussian border. Yielding to Kremlin 
pressure, Belarussian authorises this 
week released from jail three Russian 
journalists working for ORT. 

The newspaper did not provide any 
it me conversation or al- 

details about 
lege any wrongdoing on Mr. Kwas- 
niewski’s pan. Mr. Kwasniewski 
denied meeting Mr. Alganov. (AP) 

For the Record 

Britain's Environment Ministry, 
trying to cope with a pile-up of cattle 

carcasses culled under a program to 
wipe out "mad cow" disease, urged 
local authorities Sunday to speed up 
the construction of new incinerators. 
About 350.000 carcasses are currently 
stored in cold rooms awaiting incin- 
eration. the ministry said. (AFP I 

BA Suspends 2 Pilots 

Pair Said to Let Girl, 5, Touch Controls 

The Associated Press 

* f 

* * * 

uoi or a ducu*b .. . . M ndshins buttons. 

_ 5-year-old girl sat f^tte^ssengersfincluding one 
The News of the Wor thronsh the open cockpit 

of its reporter, watched ^ chi j£ sining on a pilot’s 

spent 20 minutes on the flight deck, at one s s v 
button to make the pl^e turn. It ‘ s a bit scary ' ' 

cockpit. , flight from southern 

Tic incident ^AirponitsaiiBritish.^'ays 

France to London s Heamro nuraber . 

did not release the cijy. ^Led incident from the news- 
The airline learned £**£*5 co-pilot, who were not 
paper on Friday and weekend, a British Airways 

’ °- -a*” she was not ,den - 

t. 995 , , w sr “ ,med 

off the autopilot, killing all 75 people on oo 



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Turkish Islamists Appeal to the West 

By Stephen Kinzer 

AVu K»rl 77/tit’t Service 

ISTANBUL — Former Prime Min- 
ister Necmettiu Erbakan , who during his 
year in power sought to move Turkey 
away from its traditional identification 
with Europe and the West, is now ap- 
pealing to Western countries to help 
keep his party from being banned. 

Federal prosecurors have asked the 
Supreme Court to ban Mr. Erbakan's 
Welfare Party on the ground that its pro- 
Islamic policies are aimed at subvening 
the secular order in Turkey. 

In an effort to defend themselves, Mr. 
Erbakan and other party leaders are ask- 
ing Western embassies for information 
about whether political parties can be 
banned in their countries. They seek to 
compile a dossier proving that closing 
panies violates democratic standards 
widely accepted in the WesL 

In addition. Welfare Party leaders 
have asked Western politicians and hu- 
man rights advocates to join them in 
asserting that such action would be un- 

Several members of the European 
Parliament have responded by inking 
that the party be let alone. The New 
York-based group Human Rights 
Watch has also expressed "deep con- 
cern” over moves toward banning. 

During Mr. Erbakan's term as, prime 
minister, which ended in June, gestures 
he made toward Iran and Libya deeply 
upset the military and the rest of the 
Turkish secular elite, who were also 
dismayed by his defense of religious 
education and other Islamic policies. 
Having pressured Mr. Erbakan inio 
resigning, secularists are now seeking to 

eliminate his party’. 

Thai would be" nothing new for Mr. 
Erbakan. Two Islamic-oriented panies 
he headed in the 1970s and 1980s w ere 
closed by judicial order, and he was also 
banned from politics. Each rime, he 
waited out the ban and re-emerged at the 
head of a new party’ with a different 
name but similar policies and leaders. 

But Mr. Erbakan is now 7 1 . if he and 
his pom’ were banned, it is uncertain 
whether he could make another political 

Younger leaders of the Welfare Party’, 
apparently in fear of the banning, have 
begun subtle competition ro head a suc- 
cessor party. The outcome of their ef- 
forts may determine whether relatively 
moderate or relatively militant politi- 
cians emerge as leaders of Turkey's 
millions of religious voters. 

According to press reports, Welfare 
leaders have also begun turning over 
party-owned automobiles, regional of- 
fice buildings and other assets to private 
citizens so they cannot be confiscated if 
the party- is shut down. 

The official complaint against the 
Welfare Party, filed fast week by Vural 
Savas, a federal prosecutor, asserts that 
"in democracies, parties may be shut 
down when they act against the con- 

"Democracy does not include the 
privilege of destroying democracy." Mr. 
Savas wrote. “Ir should suffice to recall 
events which happened in the not-so- 
distant pasi in countries such as Spain. 
Germany. Italy, Algeria and Ireland." 

He added: "To give parties with un- 
constitutional tendencies the chance to 
develop and to turn their followers into 
anti-constitutional warriors would in ef- 

fect mean sacrificing the democratic 
system to a set of formalistic principles. 
Democracy is faced with a difficult 
choice: whether to permit the estab- 
lishment of the kind of political party 
that aims directly at destroying the 
democratic system." 

As evidence that the party’ is anti- 
democratic. the complaint cites a long 
series of statements by various Welfare 
Party members, as well as actions taken 
by Mr. Erbakan's government. Bur 
party leaders vigorously deny the ac- 

In their written defense. Welfare 
leaders said their party’ had been "bom- 
barded by a media disinformation cam- 
paign" in which its objectives were 
made to seem evil. 

"Our party has committed no acr and 
supported no policy which is in conflict 
with basic principles of the constitu- 
tion,” they wrote. 

■ Kurdish Activists Drop Protest 

Pro-Kurdish activists said Sunday 
that they had scrapped plans to travel 
across Europe in a “peace train" after 
Turkey put pressure on Western gov- 
ernments to halt the protest, Reuters 
reported from Ankara. 

The train had been due to leave Brus- 
sels on Tuesday and travel through 
Europe to southeast Turkey in five days 
to urge an end to Turkey's Kurdish rebel 
conflict. The journey was organized by 
a pro-Kurdish group in Germany. 

Ankara, which says the event was 
backed by the Kurdistan Workers Party, 
a rebel group, had announced it would 
not let the train on its soil and had asked 
European governments to take similar 




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Booming Line in Canada: Telephone Scams Aimed at U»S. Suckers 

miild drae oo fo 

By Howard Schneider 

Washington Post Service 

TORONTO — Hilda Hanna didn't 
remember entering a sweepstakes in 
Canada, bat she was willing to trust a 
caller from Quebec who said she had 
entered, and won a $945,000 jackpot 
The money would be on its way, as she 
recalled the conversation, as soon as she 
sent $19,000 to cover Canadian taxes 
and customs fees. 

Ms. Hanna, a U.S. citizen, who asked 
that her state of residence not be iden- 
tified, said she sent the money, much of 
it advanced from credit cards, in June. 
The prize never arrived. 

mien she got a follow-up call in early 
August requesting $15,000 more to cov- 

Canada and the protection of a border 
that can delay e&radirion to the United 
States for years, fraudulent telemarket- 
ing groups have bilked U.S. consumers 

er more taxes and fees, she said she years old, and I should have known 
realized that those pleasantpeople on the better.’ ’ 

other end of the line were part of a Working from “boiler room” phone 
booming Canadian export trade — in banks in Montreal, Toronto and Van- u, ee ,w« r ■*-** - 
telephone fraud. couver, or running “rip and tear” op- outofhundredsofmillionsofdollarsfor 

"Iney hit her twice this summer. Just erations that move from hotel to hotel, tickets in foreign lotteries that never pay 
as she was beginning to believe the worst Canada-based scam artists have been off, prizes that never appear, and gem- 
about the money she “won” in June, targeting the elderly in the United States investment schemes in which the profit 
another caller persuaded her to send with increasingly elaborate, aggressive remains just out of reach. 

$4,000 to cover “duties and tariffs" on a .and costly schemes. They now account U.S.-based scams still account for an 
separate, $128,000 prize. Both incidents, for about one-third of the telemarketing estimated 65 percent of the total in the 
have been referred to Canadian law en- fraud complaints received by Canadian two countries, with some schemes, such 

and U.S. authorities; in the most recent 
statistics compiled by the U.S. Federal 
Trade Commission, Quebec surpassed 
California as the continental leader in 
phone fraud. Ontario and British 
Colombia were firmly in the top 10. 

Relying on lax sentencing practices in 

forcement officials. 

“They sounded really legitimate,” 
Ms. Hanna said. “My heart sort of said, 
‘Don’t do it anymore.' Bull trust people, 
and they said I would have the prize 
money before the payment hit my credit 
cards. 1 am too trusting, 1 guess. I am 71 

ising travel to Florida as a lure, 
targeted at Can: 

as one nsinj 


Cross-border prosecutions are in- 
creasing. U.S. officials in Seattle last 
week indicted six British Columbia res- 
idents on 1 13 postal, customs and other 
alleged violations in connection with a 

iottety ticket scheme that coHe^ed as P^^^^“^ s ^Ltatany^. 
much as $70 million annually from U.S. ^ ar e now dozens of tefe- - 

'^Tconrinuing Pennsylvania invis- 

tigation, federal officials there have in ... loca j victims to lessen.the risk, 
dieted 89 Canadian residents for a gem avoidmg iocaivi«^ 

scam in vrhich mosUy U.S. consumers of to I become so Severn, 

pSs^'SdS^oC^ .SS and th/frusnation of 
with the claim that [hey coufd soon resell 

idem Bill Clinton and Prime Minister 

Jean Chretien. __ . „ : 7 

‘‘This is a modern type of fraud, said • 
Inspector Yves Roussel, the officer in. 
charge of the commercial crimes section 
in Montreal for the Royal Canadian 
Mounted Police. “Our present law sys- 
tem is not geared to face that’ 

at top dollar. 

About 50 of those charged agreed to 
come to the United States for trial in 
return for reduced sentences and are 
now serving jail terms from four months 
to five years, said Gordon Zubrod, an 
assistant U.S. attorney in Pennsylvania. 
The others are fighting extradition, 
and Mr. Zubrod said tus office ex- 

New Cabinet 
In Iran Gets 


TEHRAN — President Mohammed 
Khatam i and his new cabinet had an 
audience with the country's supreme 
leader on Sunday before their expected 
inaugural meeting, the first working day 
of the new administration. 

Mr. Khatami, his ministers and vice 
sidents, including the Is lami c repub- 
's first female vice president, were 
told by Ayatollah Sayed Ali Khamenei 
that they should observe Islamic values. 

' 'Khamenei expressed his satisfaction 
with the start of the new government's 
work, hoping that with fresh strength, 
high morale and solidarity it will fulfill 
its crucial duties in the best way. leaving 
a good mark in Iran's history,” state 
television reported. 

Ayatollah Khamenei also stressed the 
need to observe Islamic values, continue 
economic reconstruction, eradicate 
poverty and resist the dominance of “ar- 
rogant powers,” especially in die field 
of "cultural invasion,” it reported. 

Mr. Khatami, a moderate Shiite 
Muslim cleric, named Mascara eh 
Ebtekar, 37, as a vice president on Sat- 
urday. meeting wide expectations be 
would allow women into high positions 
in his administration. She will also head 
the Environmental Protection Agency. 

Mr. Khatami has named five other 
vice presidents. Parliamentary approval 
is not required for these appointments. 
The vice presidents usually attend cab- 
inet meetings. Several ministers took 
over Saturday from their predecessors in 
ceremonies at some key ministries, Ira- 
nian newspapers reported Sunday. 

Mr. Khatami has said an urgent pri- 
ority of his government is to draw up the 
next state budget It will be reviewed 
closely by the conservative-led Parlia- 
ment The Parliament or Majlis, is due 
to reconvene in early September. 

Mr. Khatami was sworn in on Aug. 4 
after winning a landslide election vic- 
tory in May. He owed his election vie- 

Moi Called to Task for Kenya Violence 

The Associated Press 

NAIROBI — The Kenyan govern- 
ment came under further pressure Su nday 
to disclose the results of investigations 
into the violence that rocked the tourist 
region along die Indian Ocean coast for 
1 1 days, leaving 42 people dead. 

In an editorial, the Sunday Nation 
newspaper said Kenyans needed to be 
informed about the violence. 

The newspaper said Kenyans should 
be told what the investigations “have 
yielded so far, because, right now, we are 
talking about lives that were cut short and 
massive destruction of property. We are 
talking about crimes against h umanity .” 

The violence erupted Aug. 13, when 
more than 100 raiders attacked the police 
station in Likoni, a Mombasa neigh- 
borhood. and then spread north and 
south of the port city. Scores were 
wounded in the violence, which caused 

extensive property damage, 
ititical oppositio 

InuMd Bainmi/Ajtcncr Franct-Prcrc 

Mohammed Khatami, right, paying respects to the late Ayatollah Riihol- 
lah Khomeini along with Masouraeh Ebtekar, the Islamic republic’s first 
female vice president, who is in charge of environmental protection. 

tory to the votes of women, the young 
and the middle class, who saw him as 
able to inject new freedoms into the strict 
Islamic state. 

Earlier Sunday, Mr. Khatami and his 
ministers visited the shrine of Ayatollah 
Ruhollah Khomeini to pay their respects 
to the late leader who deposed the U.S.- 
backed Shah. Mr. Khatami placed 
flowers on the tomb and prayed for the 
blessing of Ayatollah Khomeini’s soul. 

After paying his respects, he walked 
into a rapturous crowd and shook hands 
with people pressing to get his atten- 

State radio quoted Mr. Khatami as 
saying after the visit that by ‘ * reinforcing 
Iran’s economic, cultural and defense 
capabilities, we are seeking to build a 
free, independent and prosperous coun- 
try that could be a role model in the 

The political opposition, civil rights 
activists and even some members of 
President Daniel arap Moi’s party said 
the attacks targeted people from inland 
tribes who traditionally opposed Mr. 
Moi and the party. 

The tilling party has disavowed any 
connection to the violence. On his first 
visit to the coast since the violence broke 
out, Mr. Moi denied any involvement. 

Mr. Moi is under pressure from op- 
position groups ar home and donors 
abroad to organize free and fair elections 
later this year, enact legal and consti- 
tutional reforms and tackle high-level 
corruption and mismanagement. Mr. 
Moi. 73, has ruled Kenya~for 19 years 
and is seeking a fifth five-year term. 

Hotel and tour operators say that al- 
though tourists were not targeted in the 
attacks, a slump in bookings is expected. 

Tourism is Kenya’s second single- 
largest earner of foreign currency and 
the country is short of .funds after the 
International Monetary Fund suspended 
a $220 million loan program because of 
official corruption and mismanagement. 
The World Bank also cut S71.6 million 
in structural-adjustment credit 

Raphael Ndingi Mwana a'Nzeki. a 
Roman Catholic Archbishop, said Sat- 
urday that he was amazed the authorities 
still claimed not to know the identity of 
the raiders or the motive. 

“I don't believe it,” he told wor- 
shippers, the Nation reported. 

Goran*- DnlLsffctilrr* 

President Moi visiting a camp for victims of recent dashes in Mombasa. 


BOSNIA: NATO Readies for Final Push 

Continued from Page 1 

M IDE AST: Extremes Squeeze Yasser Arafat as Hamas’s Power and Popularity Grow 

Continued from Page 1 

dismissed criticism of his unity talks 
with militants. “We know how to deal 
with our unity among all the groups and 
parties. And it is interior politics,” he 

As often happens when he finds him- 
self in a jam, Mr. Arafat resorted to 
ambiguity to mask his intentions. On the 
first day of die Palestinian unity con- 
clave in Gaza, he waved the sword and 
the olive branch with equal gusto. 

“There was an uprising for seven 
years,” be said. “Who did it? Our lion 
cabs, oar children. This glorious up- 
rising. Seven years. We can do it again 

from the beginning. There is nothing far 
s. All o 

Israeli cabinet hard-liners scoff at 
claims that Mr. Arafat’s behavior helps 
peace prospects by blunting Hamas’s 
influence. “Arafat is two-faced,” said 
Danny Naveh, the cabinet secretary. 
“On the one hand, he says he is against 
terrorism and afterward he runs to hug 
the killers of women and children. If 
Arafat is truly a peace partner the way he 
claims, he must fight these organizations 
and not embrace them.” 

But some cabinet members and much 
of the opposition Labor Party argue that 
Israel needs to ponder what may lie in 
store if it persists in mortifying Mr. 

Israeli and Palestinian analysts 


timate the Islamic resistance movement 
is backed by 40 to 50 percent, of Gaza and 
West Bank residents. 

With Hamas's support growing stead- 
ily, analysts suggest that Israel must 
consider the long-term consequences of 
rubbing Mr. Arafat’s nose in the dirt. 

Yitzhak Mordechai. Israel’s defense 
minister, said “Given the difficulties fa- 
cing him, Arafat is trying within the Pal- 
estinian camp to find as wide a common 
denominator as possible. 

But in the end. he also knows that 
Hamas is the main threat to the Pal- 
estinian Authority. ’’ 

Uri Savir,a key architect of die Oslo 
accords, also warned that U.S. and Is- 

raeli pressure on Mr. Arafat could back- 
fire. “What is the alternative? Do we 
want to deal with Hamas?” he asked 
“Whatever you may think of Arafat, if 
we lose him as a partner, we may lose the 
peace process,” 

For his part, Mr. Netanyahu is stand- 
ing firm. ‘ ‘We say to the Palestinians that 
they must make a very simple choice. It 
is either to embrace Hamas or to embrace 

But you can't do both,” Mr. Net- 
anyahu said Thursday. However, it was 
his own government that released Abdel 
Aziz Rantissi, the Hamas political leader 
whom Mr. Arafat publicly kissed from 
an Israeli jail earlier this year. 

from us. All options are open to us.” 

But he also offered a vigorous defense 
of the peace process. “We must not for- 
get that most of the Israeli people voted 
for peace,” Mr. Arafat said “I say to the 
supporters of peace in Israel: We are with 
you to make this peace of the brave, a just 
and comprehensive peace, not the peace 
of the weak or the cowards." 

Just before the bombers struck, Mr. 
Arafat was confronting a barrage of crit- 
icism about alleged corruption in his 
ruling entourage. Also, many Pales tin- 

RIVALRIES: South Americans Focus on Defense and Security 

Continued from Page 1 

ians, having seen their incomes plunge 

40 percent since the Oslo accords were 
signed were voicing bitter complaints 
about the absence of a peace dividend 

Mr. Netanyahu's decision after the 
bombing to block access to jobs for 
100,000 Palestinian workers and to sus- 
pend the transfer of at least $40 million 
in tax revenues to Mr. Arafat’s Pal- 
estinian Authority has only amplified 
frustrations of many Palestinians and 
further damaged their faith in the peace 

In this political climate, Mr. Arafat's 
top aides said he had no choice but to 
reject Israeli and American demands 
that he round up more than 200 sus- 
pected Islamic activists and dismantle 
the terrorist infrastructure. They argued 
that if he caved in lo such conditions, his 
political legitimacy would be eroded and 
the popularity of Hamas and other im- 
placable foes of the peace process would 
continue to surge. 

“Every lime the peace process 
stumbles, it translates into gains for 
Hamas,” said Ziad Abu Amr. a leading 
member of the Palestinian Legislative 
Council. “Arafat is not ready for power- 
sharing and wants to rally his people 
behind him, but he feels genuinely 
threatened by Netanyahu and his 
schemes. He needs a lot of support, and 
not more pressure." 

and Argentina to move toward non- 
NATO ally status.” said Rosendo Fraga, 
a military analyst in Buenos Aires. 
“Such a designation generally exists in 
regions where the U.S. has enemies. But 
it has no enemies here and the rest of 
South America is angry that Argentina is 
being singled out.” 

But the most dramatic example of 
mounting tensions erupted last week. 
President Carlos Menem of Argentina 
voiced opposition to Brazil's bid to be- 
come the region's first nation to hold a 
permanent seat on the UN Security 
Council, should permanent membership 
be expanded beyond five nations. 

Mr. Menem argued that the seat 
should be rotated among Latin Amer- 
ican nations. 

Even as Mr. Menem and Brazilians 
sought to cool the controversy before 
their arrival in Asuncion for the sum- 
mit, Mr. Menem’s statements about 
Brazil’s membership on the Security 
Council provoked a bitter war of words 
between the two neighbors that made 
front-page headlines throughout South 

A former Brazilian president, Jose 
Samey. accused the United States of 
being behind Argentina's opposition, 
accusing the Washington of plans to 
destabilize the region. 

At the same time that tensions are 

mounting. South American nations are 
seeking to modernize their militaries. 
Experts say there is no indication of real 
aggression or a new Latin American 
arms race. The one possible exception, 
experts say. is the continuing tension 
between Peru and Ecuador, which went 
to war briefly in 1995 over a border 
dispute. Ecuador shot down more planes 
than its larger neighbor during the con- 
flict, and now Peru is working toward 
modernizing its aircraft. 

At a ceremony last month in Lima to 
mark the 176th anniversary of Peru's 
independence, President Alberto 
Fujimori unveiled three Russian-made 
MiG-29s. some of the most modem 
fighter aircraft in Latin America. 

resume, perhaps triggered by a push by a 
resurgent Muslim-led army, bolstered 
by U.S. aid and an infusion of weapons 
from Islamic nations, seeking to seize 
the Bosnian Serb enclave by force. What 
NATO is attempting now in the Serbian 
enclave, they say. is Bosnia’s last chance 
for peace. 

The magnitude of the risk under way 
is etched on the faces of the Bosnian 
Serb police and officials who have given 
allegiance to Mrs. Plavsic. 

“We do not rule out an attempt to 
murder the president." said the security 
official who spoke on condition of an- 

When the Bosnian Serb Constitution- 
al Court seemed likely to uphold Mrs. 
Plavsic’s decision to dissolve the Par- 
liament. the security official said: 
“Karadzic sent around goons to beat up 
the judges and warn them that a vote 
contrary to his wishes would get them 
killed. This is how he works." 

The Bosnian Serb Army, demoralized 
and poorly equipped, has so far stayed 
out of the dispute. Mrs. Plavsic has met 
with several sympathetic array com- 
manders. The news media in Pale, never 
a reliable source of information, have 
quoted a communique they say was is- 
sued by the high command threatening 
military intervention if Mrs. Plavsic did 
not back down. 

The possibility of fighting between 
the two Bosnian Serb factions has 
prompted the Office of the High Rep- 
resentative — the civilian administrator 
of the Dayton accords — and the NATO- 
led Stabilization Force to send letters to 
Mrs. Plavsic, Prime Minister Gojko 
Klickovic and Momcilo Krajisnik, a 
member of die Bosnian presidency and 
supporter of Mr. Karadzic, expressing 
alarm at the situation in the Serbian 
territory and calling on all sides to find a 
peaceful resolution to the dispute. 

Mr. Karadzic, twice charged with 
genocide by the UN war crimes tribunal 
in The Hague, was forced to step aside as 
Bosnian Serb president last year, and 
was replaced by Mrs. Plavsic, his 

But Mr. Karadzic maintained his de 
facto control over the Serbian enclave, 
preserving his lucrative monopolies on 
the sale of cigarettes, gasoline and com- 
modities like construction materials. 

Most Bosnian Serbs, however, live in 
poverty. Teachers, currently on strike, 
have not been paid for months, along 
with doctors and most government 
workers. More than 10 percent of the 
some 800.000 people in the enclave de- 
pend on soup kitchens set up by the Red 

Mrs. Plavsic, a staunch nationalist 
who once supported Mr. Karadzic’s 

“ethnic cleansing” campaign to 
slaughter and displace Muslims and 
Croats in Bosnia, has accused her old 
mentor of pilfering state revenues and 
running the enclave as a feudal estate. 

In recent weeks she has declared the 
Bosnian Serb legislative assembly dis- 
solved. called for new elections in Oc- 
tober and, with the backing of British 
troops, replaced Mr. Karadzic loyalists 
in die ponce in Banja Luka. 

Saturday, in a further sign of Mr. 
Karadzic's eroding support, television 
reporters in Banja Luka said they would 
no longer work under Redirection of the 
Karadzic loyalists who ran the enclave’s 
media in Pale. 

The assembly, dominated by Mr. 
Karadzic's supporters, and the cabinet 
have denounced Mrs. Plavsic and dn- 
rnissed her demands. The assembly is 
due to hold a session in Pale on Tuesday, 
when it is expected that it will try to 
remove Mrs. Plavsic from office, Bos- 
nian Serb officials said 
1 Despite Mrs. Plavsic's unsavory past. 
Western officials see in her an instru- 
ment to break Mr. Karadzic’s grip on the 
self-styled Serb Republic in Bosnia. 
They have promised reconstruction as- 
sistance, at least $9 million of which will 
anive soon, to Banja Luka and areas 
around it if she will begin to abide by the 
terms of the peace agreement, including * ' 
allowing the return of Muslims and - 
Croats driven from their homes by the 
Bosnian Serbs during the war. 

The saddle-like shape of the enclave 
will play an important role in the plan to 
slice it into two waning camps. The 
western section, including the area 
around Banja Luka, is connected to the 
eastern section, where Mr. Karadzic's 
stronghold of Pale is located, by a thin* 
corridor running through Brcko. 

If this gamble works the western sec- 
tion will be run and administered by 
Mrs. Plavsic. Mr. Karadzic and Mo- 
mcilo Krajisnik, the Serb member of 
Bosnia's national three-man presidency, 
will be isolated in the eastern part. 

N ATO has already demanded the for- 
mation of some 3,000 heavily armed 
special police that protect Mr. Karadzic 
be dissolved by the end of the month. 

And Washington has called that the In- 
terior Minister Dragan Kijac. a Karadzic 
supporter who oversees the police and 
much of the vast black market oper- 
ations. be removed. It was Mrs. Plavsic’s 
call for his resignation that prompted the 
current crisis. 

"If people see that there are tangible 
benefits to cooperating with the inter- 
national community, including an in- 
fusion of aid currently denied to the 
Bosnian Serbs, we think it will be a 
powerful inducement to those who do 
not follow Mrs. Plavsic to abandon 
Pale.’ ' a Western diplomat said. 

FS'SC.'s i 



f. . . . • 


FRANCE: Behind a Screen of Political Idealism and Anti-American Slogans, Globalisation Is Happening 

Continued from Page 1 

Elf Aquitaine, the chemicals giant Rhone-Poulenc 
and the manufacturer of Gauioise cigarettes. 

It has littered the countryside with Americana: 
more than 600 McDonald's resiaurants.Toys -“R” 
-Us in countless nulls, Haagen-Dazs on fashion- 

pluses, and to the fact that France is the world's 
fourth-largcst exporter. 

Drive out of Paris in the direction of Ram- 
bouillet. and you will .soon find the town of Coigni- 
eres. A decade ago there were wheat fields there; 

is streets. It has adopted American habits. bus y y high way ’c™" through Tfarfds^^dom^na teS option p° qualM ^ for ,he planned ad- 

ray back on the leisurely lunch and banning by McDonn Id’s and other hambur^restauranK SC T* J L * "S 1 lc European curr ency, the euro, at 

Lionel Jospin, the new Socialist prime minister, 
seems to be aware of this. The government talks a 
lot about the 32-hour week and jobs in the state 
sector and U.S. economic arrogance while it gels on 
with preparing new privatizations and the austerity 

I1W ieur>>« i*e + > r 

emization must be masked because they have little 
to do with the country’s self-image. 

That image is attached to notions of equality, a 
strongly centralized Jacobin state and change, if at 

all, through revolution alone. Evolution is a kind of able Paris streets. It has adopted American habits. 

anathema in the land of 1789 and 1968. 

As Pierre Bimbaum. a sociologist, said, “We 
have not found the way to modernize while pre 

serving our imagined community.” iwhibi, iu ium miu a — <uiu ucpi«»mj; — ngm ana "coot. tJoiqnieres is globalization •> -,i 4 — . 

So modernization takes place on the quiet, Thus, home to international fashion. incarnate. * B j J^iary and poetry. In this he has proved more 

in the past decade alone, France has turned a Its national airline. longer “I suppose all this is inevitable ’* said Jacuu's than . sidem . Jacques Chirac, who some- 

currency that was a laughing stock into one vir- flies to even major cities where it cannot make a Eperon. who runs a small chuucroulc tavern on- F insu ^ lc i en ^y shrewd for the divided 

tualfy as strong as the German mark. It has freed profit. The profit motive, pure and simple, has also positethe McDonald's, “i don't like it much but m /u ■ ai J’ 

driven numerous private companies — including the end you have to accept it.” ’ SPW at ’ 0ul French roses. The 

Michclin. L’Oreal. Carrefour and the luxury-goods 
conglomerate LVMH — to adapt and remain 

cutting way oacx on uie leisurely tunen ana panning dv McDonald s and other barnburner restaurants the of 

-e smoking in the Metro. It has allowed Saint-Ger- Pier I Impom. warehonse-smres sellkiE l 

main-des-Pres. sanciuary of ihe Left Bank inlel- fillings, and advertisement', full of words like ,^P ln lcnow s that Ihe French still want to dream 
i? 1 "? 1 ' “ ^ — and depressing — "light ; and -cool" Coign, eras is gloSfai™ f " 

capital movements, an idea once unthinkable in the 
home-par-excellence of the secret Swiss bank ac- 

the end you have to accept it.” ••v„ U nu 9 ». mv , . 

So change is accepted and not much liked. And to a o^hahz^ wnrt?^ 6 R 06 !? and compassion | 

more than ever, politics becomes the an of am Zt T Hd where often seems the rich 1 

c. — -- — v’vi. ncmmi’S me ail Ol con- .,„.4 ‘ hui 

If has sold off great swaths of slate industry, highly competitive throughout the world. These ceahng change behind anti- American simians and Sir-Ii . a d ■ C°° f P°°rer. That can be an 

il company have contributed to the country’s huge trade sur- the like. ' h ana B “ T ir should not be forgotten 

including the automaker Renault, the oil 

an eye on its bread. 

‘T*- ' 

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Wednesday's Intermarkec 

Ccf SCbukes Cfpirtmitifes, 
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MON DAY, AUGUST 25, 1997 


Swiss Are Coming to Terms With a Mixed Past 

Vintage Arafat 

More than once in his long career, for progress in other bargaining areas, 
the Pales tinian leader Yasser Arafat Mr. Arafat undoubtedly thought he 
has shown a knack for making exactly was showing his own toughness in tne 
the wrong symbolic gesture at exactly face of Mr. Netanyahu s halbng of 
the wrong time. This past week he did fund transfers to the 
it again, publicly embracing the lead- thonty and Israel s public demands for 
ers of militan t Islamic organizations the arrest of certain Islamic militants, 
that endorse suicide bombing, less than The Palestinian Leader .took care to 
a month after a deadly explosion in meet only with the pobtical leaders of 
Jerusalem wrecked a promising Amer- Hamas and Islamic Holy War, not the 
icaneffort to revive the Israeli-Pal- chiefs of their terror operations. He 
estinian peace talks. reiterated his continued belief in the 

Mr Arafat is obviously angered and Oslo peace agreements, and took note 
humiliated by the stubborn negotiating of the fact that most of the Israeli public 
tactics of Israel's Benjamin Netan- favors a negotiated peace settlement, 
vahu He is also nervous that frustrated Nevertheless, the uproar he has 
Palestinians in the West Bank and the caused in Israel and the United States by 
Gaza Strip will desert his political ban- this meeting cannot be dismissed as a 
ner to follow Islamic militants. matter of misinterpretation. There is no 

But this man, who spent most of the clear line between the political and ter- 
1970s and '80s preaching tenor, and rorist sides of Hamas and Islamic Holy 
most of the '90s trying to convince a War. Abdel Aziz Rantisi, the man Mr. 
skeptical world that he" had renounced Arafat was shown embracing on Page l 
violence, still fails to grasp how much of Thursday's New York Times, was 
damage he does to himself and the recently released from an Israeli jail, and 

Palestinian cause by inflammatory dis- Israel has requested that he be detained 
plays like this one. again. Mr. Arafat's gesture signaled not 

Mr. Arafat must learn that he cannot only that he means to resist Israeli and 
show the slightest equivocation on the American calls for a new crackdown, 
issue of terrorism and still retain any but also that, at least for now, he is 
hope of progress toward a peace set- personally shielding militant Islamic 
dement. He must also understand that leaders from any Israeli pressure. 
Washington cannot press the Netan- Mr. Arafat also undermined his pro- 
vahu government toward greater flex- fession of faith in the Oslo agreements 

ibility at the bargaining table while he by recalling the seven-year-long in- 
sows' doubts about his own commit- tifada rebellion and stating: "We can 
ment to nonviolence. erase and do it again ... Ail options are 

Even before this past week's meet- open to us." Those who disagreed with 
ing with Islamic militants, Mr. Arafat the Palestinian demand for Jerusalem 
had brushed off the calls of President as the capital of a Palestinian state, he 
Bill Clinton's emissary, Dennis Ross, added, “can go drink the seawater," 
for renewing the security cooperation an uncomfortable reminder of Mr. 
with Israel that is required under the Arafat’s old exhortations to drive Is- 
Oslo peace agreements. Mr. Arafat rael into the sea. It was, sadly, a vintage 
mistakenly believes that he can get Arafat performance, demonstrating 
a better deal by waiting for a future why Israelis of every political per- 
visit from Madeleine Albright, the suasion find him such an uncomfort- 
U.S. secretary of state. But full Pal- able, even if ultimately unavoidable, 
estinian cooperation on security is a negotiating -partner, 
precondition to any American push —the neiv YORK times. 

iot progress in omer rarsuuiuig 
Mr. Arafat undoubtedly thought he 
was showing his own toughness in the 
face of Mr. Netanyahu's halting of 
fund transfers to the Palestinian Au- 

meer only with the political leaders of 
Hamas and Islamic Holy War, not the 
chiefs of their terror operations. He 
reiterated his continued belief in the 
Oslo peace agreements, and took note 
of the fact that most of the Israeli public 
favors a negotiated peace settlement. 

Nevertheless, the uproar he has 
caused in Israel and the U ni ted States by 
this meeting caonoT be dismissed as a 
manor of misinterpretation. There is no 
clear line between the political and ter- 
rorist sides of Hamas and Islamic Holy 
War. Abdel Aziz Rantisi, the man Mr. 
Arafat was shown embracing on Page 1 
of Thursday’s New York Times, was 
recently released from an Israeli jail, and 
Israel has requested that he be detained 
again. Mr. Arafat's gesture signaled not 
only that he means to resist Israeli and 
American calls for a new crackdown, 
but also that, at least for now, he is 
personally shielding militant Islamic 
leaders from any Israeli pressure. 

Mr. Arafat also undermined his pro- 
fession of faith in the Oslo agreements 
by recalling the seven-year-long in- 
tifada rebellion and stating: “We can 
erase and do it again ... All options are 
open to us. " Those who disagreed with 
the Palestinian demand for Jerusalem 
as the capital of a Palestinian state, he 
added, “can go drink the seawater," 
an uncomfortable reminder of Mr. 
Arafat’s old exhortations to drive Is- 
rael into the sea. It was, sadly, a vintage 
Arafat performance, demonstrating 
why Israelis of every political per- 
suasion find him such an uncomfort- 
able. even if ultimately unavoidable, 
negotiating -partner. 


Tobacco Rhetoric 

If you asked a stranger on the street 
whether he thought cigarettes might 
possibly have ever made anybody sick 
in the past 30 years, or whether any 
American in that time might conceiv- 
ably have died of a smoking-related 
disease, you would not be too astoun- 
ded to hear the person respond. "Might 
have.” Actually, you would probably 
be a lot less surprised if the person gave 
you a what-kuid-of-idiot-is-this look 
and answered. * * Of course — hundreds 
of thousands." Turn that person into 
the chairman and chief executive of- 
ficer of a major American tobacco 
manufacturer, though, and it hardly 
needs remarking that expectations are 

It was relatively big news on Thurs- 
day when a lawyer in a Florida de- 
position asked Geoffrey Bible, chair- 
man and CEO of Philip Morris Inc.: 
“Would Philip Morris agree that a 
single American citizen who smokes 
their products for 30 or more years, a 
single one, has ever died of a disease 
caused in pan by smoking cigarettes?" 
and Mr. Bible answered, “I think 
there’s a fair chance that one would 
have, might have." 

Things widely assumed but un- 
noticed often get spelled out when 
cases come to court As the big anti- 
smoking cases brought by state at- 
torneys general start their slow pro- 
gress through the legal system, many 
such moments of clarity are to be ex- 
pected. including a fair number that the 
companies may "have fervently hoped 
to avoid by entering the currently lag- 
ging negotiations for a questionable 
tobacco settlement. 

Mr. Bible's deposition offers just 

such a bonus: a momentary demon- 
stration of how high a level of men- 
dacity the society has learned casually 
to tolerate from the mouths of the big 
tobacco companies' leaders and 
spokesmen. You scarcely notice such a 
thing until it is withdrawn — even if 
the withdrawal is only momentary. 

Ron Motley, the lawyer in question, 
went on television afterward to praise 
Philip Morris for unaccustomed “can- 
dor.'' Mr. Bible having acknowledged 
{under further questioning) that 
smoking "might have" contributed to 
the deaths of as many as 100,000 
people. But it would be a mistake to 
assume that this admission was wrung 
from him by canny lawyering or blur- 
ted out in a sudden access of con- 
science. On the contrary, in the wake 
of regulation, litigation and a host of 
other pressures, and a year after the 
defection of Liggett Co. from the in- 
dustry’s long-standing nothing-has- 
been-proved position for the purpose 
of settling its health claims, conditions 
for the industry's giants have changed 
enough to warrant a shift in strategy. 

On Friday, in another deposition in 
the case, RJR Nabisco Chairman 
Steven Goldstone said. "I have always 
believed, rightly or wrongly ... that 
smoking plays a part in causing lung 
cancer." We would guess that some in 
the tobacco business must have de- 
cided that after all these years it is less 
trouble — on this one point — to tell 
the truth than not Whatever the out- 
come of trials and settlements, con- 
ditions that can produce this kind of 
thought process in tobacco executives 
are an improvement 

— the Washington post. 

Other Comment 

Losing the War on Malaria 

By the 1960s, malaria had been 
eradicated or dramatically reduced in 
37 countries. In India, for instance, the 
number of deaths had dropped from 
some 800,000 a year to virtually none. 
But India has had four major epidemics 
since 1 994: last year alone 2.85 million 
Indians got the disease and thousands 
died. Malaria is returning to other 
countries that thought they had seen the 
back of it: Azerbaijan. Brazil, Turkey. 

It is spreading from the countryside 
to the cities and, borne by migrant 
workers and other travelers, is increas- 
ingly cropping up in the rich world. 
Cases now occur in the United States as 

far north as New Y ork. New Jersey and 
Michigan. Climare change may help to 
bring it back to Western Europe. 

It is in Africa, though, that malaria is 
commonest and deadliest. Most of the 
2.5 million or so people killed each 
year by malaria are Africans, and most 
of them are children. 

The best chance of once more send- 
ing the disease into retreat would be the 
discovery of a vaccine, but hopes for 
that fall as often as they rise. No won- 
der: Research in ro malaria receives 
only some $60 million a year, com- 
pared with SI 40 million for asthma. 
5300 million for Alzheimer's disease, 
S950 million for ADDS. 

— The Economist ) London L 


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W ASHINGTON — I was not yet By Alfred Defago 

bom when Adolf Hitler un- 

leashed World War II. Thus I did not The writer is Switzerland s 
experience the war and the unspeakable ambassador to the United Slates. 

horror launched by his ghastly regime. 

Like many Swiss of my generation, country that defended its free and 
I grew up believing that neutral democratic system in the most difficult 
Switzerland — completely surrounded circumstances. In the midst of the Na- 
bv the Nazis and their satellites — had tional Socialist and fascist barbarity, 
heroically survived the war in ex- here was a small counuy in the heart of 
treraely difficult circumstances. This Europe that protected free speech and 
image, of course, has begun to falter. insisted on the right to hold free and 
In Switzerland, a probing discussion open elections, 
began almost 20 years ago over whether And in those elections, the Nazis and 

our small, neutral statehad behaved in their few Swiss sympathizers never 
an exemplary mann er before, during and stood a ghost of a chance. Switzerland 
after the war. During die last year this was an anti-Nazi, open democracy, the 
quiet discussion has been transformed only one in Central Europe, 
into a heated international debate. Fierce Swiss radio programs of those years 

and pointed criticism has been directed had a wide listening audience in Nazi 
at Switzerland's wartime record. Germany and occupied Europe. To the 

As the representative of the Swiss great annoyance of those in power in 
government and its people in the Berlin, that gave hope to millions of 
United States, I believe it is important oppressed people who believed in the 
not to shrink from the growing con- ultimate triumph of democracy, 
troversy over Switzerland' s role during Although Switzerland refused entry 

World Warn. The time has come for an lo approximately 30.000 Jews (and 
open, searching debate. But it is also thus probably subjected many to brutal 
critical that this discussion be fair, persecution}, it admitted more than 
reasoned and based oh all the facts. 230,000 refugees from Nazism during 
I would like to be clear about one the war, including 27,000 Jews. Those 
point: Switzerland, like many other na- Jewish refugees, together with the 
tions, made mistakes during the war- 20,000 indigenous Swiss Jews, es- 
time period. Switzerland — as did oth- coped the Holocaust. This was the only 
ers, including the United States — Central European Jewish community 
turned back thousands of Jews at its to survive the war. 
border on the grounds that “the boat In other words, Switzerland granted 
was full." Moreover, a senior Swiss safe haven to more persecuted Jews per 
official encouraged Germany to use the capita than most other countries, 
infamous “J" stamp on the German 
passports of Jewish citizens. We have L-l 

to acknowledge these sad facts. {Caspar It has now become fashionable to 
Villiger, president of the Swiss Con- argue that Switzerland’s wartime neut- 
federation in 1 995, publicly apologized rality was opportunistic and even mor- 
for Switzerland’s serious negligence in ally reprehensible. But the Swiss 
refugee policy during the war. policy of neutrality did not emerge in 

It has now become fashionable to 
argue that Switzerland's wartime neut- 

ous negligence i 
refugee policy during the war. 

In addition, the Swiss National 
Bank’s gold policy during those years 
was anything but a study in glory. 

The senior managers of the bank 
clearly did not know- that the gold they 
purchased from the German Reichs- 
bank contained smelted "victims' 
gold." but in the last years of the war 
they surely must have known that the 
Germans increasingly delivered gold 
that came from the looted stocks of 
central banks in occupied countries. 


The Swiss of today cannot be proud 
of those failings. But dwelling on these 
events alone presents a one-sided pic- 
ture of the Swiss record. History also 
records many positive actions by my 
country’ during that period that have 
been played down or ignored altogeth- 
er in the debate. 

The Switzerland of those years — 
despite the compromises with Nazi 
Germany and its satellites — was a 

the face of the Nazi threat. It was cen- 
turies old, and it should be emphasized 
that Swiss neutrality during the war 
was never mistaken as moral neutral- 
ity. Instead, it was a small, threatened 
country’s means of surviving as a free 
and independent political entity. 

Even after World War 13, in die view 
of its recent critics. Switzerland is said 
to have behaved in an arrogant and 
unfeeling manner. These critics sar- 
castically ask why Switzerland was 
somehow absent when ir came time to 
rebuild Europe. 

But Switzerland did help. While the 
war was still raging, the Swiss Par- 
liament approved a large-scale assist- 
ance program to help the war’s victims. 
From 1945 to 1948. more than 200 
million Swiss francs was spent to re- 
build Europe and provide humanitarian 
aid. That amount would be roughly 
equivalent to a billion Swiss francs 
today (about S700 million). 

While most of the monev came from 

government revenues, more than one- 
quarter was raised through donations 
from the Swiss people. 

What makes this effort all the more 
impressive is that it amounted to 1.6 
percent of die entire Swiss gross na- 
tional product. To put that in perspec- 
tive, the Marshall Plan assistance from 
the United States amounted to 1.2 per- 
cent of U.S. GNP. 

In the final analysis, it is not primar- 
ily a question of what Switzerland and 
other commies did or did not do in the 
1940s that matters, bot how those na- 
tions come to terms with their pasL 

The view of Switzerland in the U.S. 
media is that of a country that is stone- 
walling and deferring any concrete 
steps to resolve the problems of the 
past The tiutii is more complicated. 

It took a while for Switzerland to 
realize the magnitude of the problem, 
which had been concealed by the stakes 
of the Cold War. Once it became clear 
that the darker side of our past had to be 
revisited, unprecedented steps were 
ini Hat ed and acted upon as fast as Swiss 
institutions and customs permitted. 

The U.S. official most heavily en- 
gaged in this issue, U.S. Undersec- 
retary of State Stuart Eizeasrat, has 
stated that "among the neutral coun- 
tries, Switzerland has taken the lead" 
in coming to grips with its past I agree 
with that assessment, because of the 
wide range of measures my country has 
taken during the last year. 

In December, the Swiss Parliament 
unanimously approved the creation of 
an independent commission to shed 
foil light on Switzerland's role during 
World War n. The commission, 
chaired by Professor Jean-Fran^ois 
Bergier, includes eminenr Swiss and 
international historians. Dozens of re- 
searchers are at work on this project 
and more are being hired. 

At the order of the Swiss govern- 
ment, the commission has been granted 
and guaranteed unlimited access to all 
sources in Switzerland, including the 
banks. By the end of this year, the 
commission is scheduled to issue its 
first interim report on gold transactions 
with Nazi Germany. A second report 
on Swiss refugee policy during the war 
years will follow early next year. 

The Swiss government is sparing no 

Recently, in a highly P-WadM. ... 
unprecedented action, ** 
bankers, in cooperation wi* die Vol- 
cker committee and Swiss autantes. 
published a list of almost 2,000 
dormant accounts in Swiss banks. 

We believe that it is imperative to 
relieve the suffering of Holocaust sur- 
vivors around the world. To that _ end, 
the Swiss government has established a 
S 100 million humanitarian fund, draw-, 
ing on contributions from the Swiss 
banks and private industiy. The 
will be bo'stered by another $70 mil- 
lion from the Swiss National Bank later 
this year, if Parliament approves. 

In a project that we believe not only 
redresses the consequences of the past 
but also helps to ease and — if possible 
prevent future suffering, my gov- 
ernment has proposed the daring idea 
of a "Swiss Foundation for Solidar- 
ity." The foundation's aim would be to 
support deserving causes not only in 
Switzerland but throughout the world. 

With that in mind, and consistent 
with Switzerland's strong humanitari- 
an tradition, the foundation would ded- 
icate its annual income — the equiv- 
alent of several hundred million dollars 
— to assist victims of poverty, in- 
justice, genocide and human rights vi- 
olations. These plagues tragically be- 
long to our era as much as to the past 
This innovative and far-reaching pro- 
posal will go before the Swiss people in 
a referendum at a later date. 

It should be clear, then, that the 
people of Switzerland are committed to 
the profoundly important task of com- 
ing to terms with their past, even though " 
there may be some debate on how best 
to draw conclusions and make amends. 

We know that this is a difficult and 
occasionally also painful undertaking, 
but we believe in this endeavor. We 
also know that others are interested in 
our progress, particularly the Jewish 
community in many countries. We un- 
derstand that interest and concern. 

We Swiss are a proud people and - 
react better to constructive dialogue 
than to unreasonable pressure tactics. 
In a spirit of genuine openness, 
Switzerland is prepared to tackle the 
problem in confronting the shadows of 
World War II in partnership with the 
Jewish community, the U.S. govern- 
ment and the governments of other 

ad * ■■■ 

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icp c ~' ' 






Ir r * : . . 
rr..' v ' . - 
Tip-’ 4 --’ 

effort to ensure that any assets in Swiss ment and the governments or other 
banks belonging to victims of the Holo- ■ countries. While it may sometimes ap- 
causi are returned to survivors, their pear that Switzerland moves slowly. 

heirs or organizations representing the 
survivors of the Nazi atrocities. To that 
end. the Independent Committee of Em- 
inent Persons was established in May 
1995 by the Swiss Bankers Association 
and several Jewish organizations, under 
the leadership of retired U.S. Federal 
Reserv e Chairman Paul A. Volcker. 

that is because the Swiss are a de- 
liberate and prudent people. 

Once we nave made up our minds to 
do something, you can rely on us. In the 
task now before us, I have not the slight- 
est doubt that Switzerland will respond 
in a thorough and serious manner. 

The Washington Post 

Defense of Human Rights Needs to Be Fair and Informed 

A USTIN, Texas — The U.S. 

State Department recently 
issued a report on persecution erf 
Christians, focusing on China 
and several Muslim countries. 
The release of that document 
has initiated a debate on the 
issues of religious persecution, 
human righrs and U.S. policy. 

As a member of the Lawyers ' 
Committee for Human Rights, 1 
have evaluated cases of human 
rights violations, primarily in 
Muslim countries. One of the 
most recent examples involved 
a religious man from a Muslim 
country. He was visited by se- 
curity forces at dawn, taken 
from his place of residence, 
beaten with cables, hung in con- 
torted positions and stung with 
electrical prods. 

During the torture, he was 

Bv Khaled Abort FadI 

taunted about his beliefs. Of- 
ficers carrying out the torture 
yelled, "Where is your God 
now? If your God was here, we 
would torture him as well.” Ul- 
timately, his sister was brought 
from his home and threatened 
with rape in front of him. 

Now I pose the following 
question. How would you feel if 
I informed you that the man was 
a Christian in a Muslim coun- 
try? And how do your feelings 
change when I tell you that, in 
fact, the victim in this case was 
a Muslim, who was being tor- 
tured in a Muslim country? 

A part of a church was de- 
molished in Egypt because of 
unfair regulations, and that is an 
outrageous occurrence. But 

how do we consider this out- 
rageousness in light of the fact 
that a mosque was closed for 
several years in Egypt because 
the government was unhappy 
with the types of teachings pro- 
moted in the mosque? 

When we discuss religious 
persecution, we are dealing 
with a field in which people 
have particular sensitivities and 
particular sympathies for their 
own groups’ or religions. It is a 
highly politicized field in which 
emotions run high. 

The human rights field is 
plagued with double standards 
and political convenience. 

In terms of religious perse- 
cution. particularly in the con- 
text of Muslim countries, we 

Is People Power Only a Memory? 

D ES MOINES, Iowa — 
Fifty years ago this month, 
people in the Indian subcon- 
tinent could be found clustered 
around their radios, choking 
back tears of emotion while the 
British flag was lowered over 
New Delhi and the Indian flag 
was hoisted in its place. 

U was the moment idealistic 
young women like my mother. 
RftisiJ Basu. sifting in her Iriing 
room with family and friends in 
New Delhi, had "dreamed about 
their whole lives. 

Listening to Jawaharlal 
Nehru deliver his emotional 
speech about the soul of a na- 
tion, long suppressed, and about 
a tryst w’iih destiny, everything 
seemed possible, and all 
obstacles could be surmounted. 

“At the stroke of rhe mid- 
night hour, when the world 
sleeps. India will awake ro life 
and freedom," the nation's first 
prime minister intoned, in a line 
that sull can send shivers down 
Indians' spines. Outside the 
Parliament building on that 
Aug. 15. throngs hugged, 
cheered and danced in a jubilant 

1 suspect that most Indians of 
my generation have grown up 
with some version of this story. 
It happened recently enough 
that every family was directly 

For everyone from the young 
intellectuals to the masses of or- 
dinary people who turned out to 
obey Mahatma Gandhi's call to 
nonviolent resistance, it meanr 
that raw people power could 
change laws and governments, 
bring down injustice and win the 
righf of self-determination. 

Bv Rekha Basu 

"We would move forward 
and there would be no stopping 
us." my mother recalls. 

This 50th year of Indian in- 
dependence Has seen an abund- 
ance of observances around the 
world, from university forums 
to cultural exhibits. Significant- 
ly. though, the birthday cele- 
brations within India have been 
more subdued. 

Partly it is because the head- 
iness of independence was im- 
mediately tempered by the mass 
bloodshed that followed the 
partition of India and Pakistan 
along Hindu-Muslim lines. 

Partly, too, the following de- 
cades have given way to a more 
sobering assessment of the mo- 
numental problems still facing 
India, ranging from corruption 
to crippling poverty to social 
disease such as caste-based dis- 
crimination and bride burnings. 

An ugly kind of nationalism 
— a far cry’ from the unifying 
kind that rose to challenge Brit- 
ish rule — has reared its head in 
modem-day campaigns against 
religious minorities, by chauvin- 
ist majority’ groups. At times the 
government has expended more 
energy’ appeasing me perpetrat- 
ors than protecting minority’ 
rights. .And there is unease over 
a chosen path of economic de- 
velopment that welcomes mul- 
tinationals like McDonald's. 

Still, the world's largcsi de- 
mocracy. with one of the world's 
most diverse populations, car- 
ries on. kept in check by a free- 
elections system, a feisrv press 
and independent courts. 

Ii is probably true every- 
where that it is easier to overturn 
a bad system than build a new 
one. Communities do better at 
coming together with national 
pride when fighting outsiders 
than when the enemy is poverty 
or discrimination within. 

I have seen the mass public 
euphoria displayed in India in 
1947 show up elsewhere in our 
lifetimes, such as after the end of 
white minority rule in South 
Africa. And what always strikes 
me is how those of us who never 
lived through a monumental 
movement for change — like the 
right to vote, or to have inte- 
grated lunch counters — learn to 
lake those rights for granted. 

In America, at the close of the 
century, the idea of going to jail 
or laying down your life for a 
just cause that has mass support 
seems as remote as it once 
seemed inevitable. In the wake 
of the Oklahoma City bombing, 
the biggest enemy seems to be a 
pervasive cynicism about gov- 
ernment and irs potential to 
solve problems. 

Looking back on the idealism 
that surrounded India's inde- 
pendence. you have to wonder 
what goals might motivate our 
children — growing up in a 
self-contained haze“of video 
games and consumer fads — to 
take to the streets in protest. 

Whul foundations are we set- 
ting down for them? Whar prin- 
ciples will they be willing to 
fight for. and how hard? " 

The writer is a columnist for 
the Dcs Moines Register This 
comment was distribute J bv New 
lork Times Special Feat tires . 

must remind ourselves that it 
takes place in the context of 
rampanr human rights viola- 
tions. Additionally, religious 
persecution is socially complex 
and often masks complex phe- 
nomena within society such as 
communalism, tribalism and 
economic exploitation. 

Family feuds can express 
themselves in religious terras. 
Or a government could be pit- 
ting one opposition group 
against another, or trying to di- 
vert the attention of its oppo- 
sition toward religious conflict. 

In the Islamic context, there 
is a long-established history of 
foreign powers claiming that 
they are protecting a particular 
religious minority in perpetu- 
ating offensive or aggressive 
policies against Muslim coun- 
tries. For example, the invading 
armies of the Crusades would 
claim that they were interven- 
ing to protect Christians in 
Muslim countries. 

The claim of "protecting 
Christian minorities" also was 
used to justify colonialism. We 
must keep in mind that pros- 
elytizing Christianity and mis- 
sionary work went hand in hand 
with colonialism and its intel- 
lectual legacy. 

It is indefensible that Amer- 
ican policy should respond to 
discrimination against Christi- 
ans in particular. Religious dis- 
crimination is at the core of 
human rights, and human rights 
are indivisible. 

In promoting human dignity, 
we must maintain fairness, and 
balance. We cannot argue for 
one human right by violating or 
ignoring another. And we can- 
not emphasize die rights of one 
group and effectively de-em- 
phasize the rights of others. 
Playing favorites Ls a human 
rights violation in itself. 

In addressing the problem of 
religious persecution from the 
standpoint of U.S. policy, there 
must be. firsi and foremost, ixn- . 
partiality. Second, we must en- a 
courage and help independent 
nongovernmental organiza- 
tions that promote human rights 
from within the domestic con- 
text. We also must avoid re- 
liance on anecdotal evidence as 
a basis for policy. 

We should not rely on the 
ideological ravings of some 
writers in influencing policy. 
Such writers often use the label - 
"politically Islamic" or "mil- 
itant Islamic" to justify discrim- 
inatory and hostile policies. 

There is a saying in the Mus- 
lim world that Muslim blood is 
rhe cheapest. However, every 
religious group would probably 
say that its blood is the ^ 
cheapest. It is our duty ro say i 
that human dignity counts for ; 
everyone and all equally. 

The writer, professor of Is- 
lamic law and human rights at 
the University of Texas at Aus- 
tin. contributed this comment to 
the Los Angeles Times. 


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1897: A Violent End now being held here. Also, a 

PARIS — Charles Jacquerey, a 
workman, surprised his wife 
with her lover, named Edouard 
Lauwers. and stabbed him in the 
heart. Jacquerey, after receiving 
his weekly wage of 30 fr.. left 
his wife and family without a 
penny. Mme. Jacquerey imme- 
diately left the house and took 
refuge with her former lover, 
she rerumed home however on 
Sunday night. When Jacquerey 
made his appearance he found 
that Lauwers had preceded him. 
A desperate struggle cook place 
between the two men, in the 
course of which Lauwers was 
stabbed to the heart. 

1922: Anti- American 

MONTREAL Violent at- 
tacks on American anti-strike le- 
gislation and Governmental in- 
tervention in industrial disputes 
were made today at the Domin- 
ion Trades and llabor Congress. 

now being held here. Also, a 
report presented by the exec- 
utive committee charged the 
Moscow International with set- 
ting up two propaganda agencies 
in Canada. But it is obvious that 
Mr. Tom Moore, the president, 
and the other moderates have the »C 
convention well under their con- \ 
trol and that the minority of the 
extremists have little voice. 

1947: Mine Disaster 

England — An explosion 
ripped through a section of the 
Morrison Mine at Anfield Plain. 
County Durham, killing nine- 
teen men in Britain s second col- 
liery blasr in eight days. Five 
men, badly burned and mutil- 
ated, survived. A nightshift of 
fifty was in the mine when die 
blast occurred shortly after mid- 
night The twenty-four working A 
in the explosion area were mem- 
bers of the maintenance crew. 
Recovery of the bodies was 
completed shortly after midday. 

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«S| Shocked, Shocked! A Firestorm of Cliches 


A \n\on\ 1 

By Jack Rosenthal 

New York Times Service 

rh? 1 ^ ~~ X on ®ay remem- 
J. N ber the scene in “Casablanca'’ 

hl^lh bad i Rain f- as Renault 


Rick s Cafe most be closed. “On 
what grounds?- asks Humphrey Bog- 
? which *e captain 
rjhes. I ra shocked, shocked to dis- 
cover that gambling is going on here! ” 
if you don t remember it, not to worry. 
Legions of writers are eager to recall it 

a ?2?' u ^ came out in 1942; in 
me 90s, the scene is cited so often that 
it has turned into a mock shock wave — 
and a case study in cliches. 

In February 1990, at a congressional 
hearing, Les Aspin, then chairman of 
the House Aimed Services Committee, 
took on Dick Cheney, then secretary of 
defense; “Cheney is shocked — 
shocked! — to discover that there is 
polices going on in this House.” With- 
in weeks, the same shocked, shocked 
analogy was applied to James Baker, 
Clark Clifford and Richard Par ma n 
Since then, its use has been accel- 
erating; a Nexis search produces 989 
citations since the beg innin g of 1990. 

In recent weeks, it has app e a red in 
The New York Times, the Los Angeles 
Times and The Seattle Times, in The 
Orange County Register, The Colum- 
bus Dispatch, and in a front-page story 
in The Washington Post. Here’s how 
the lead letter to The New Yorker 
began on June 16: “Jane Mayer is 
shocked — shocked — to find that 
Henry Regnery is a publisher with a 
political agenda.” 

A flock of other maturing cliches 
now flutters through public prose, us- 
ages that often are as overheated as 
they are overused. Consider firestorm. 
Once, it meant the intense conflag- 


By Jewell Parker Rhodes. 270 pages. $23. 

Reviewed by Tonya Bolden 

T OE SAMUELS is a dreamer without a 
J vision, a rebel without a cause, and 
Harry Houdini is his hero. 

• Joe will be 18 soon, but at the rate he’s 
going it will be a while before be is a man 
Holding him back is his animus against 
his fatter, the proprietor of a bank and 
possessor of “the tallest black man’s 
house” in town. He’s a stereotypical hard 
guy, galled by his sou’s preoccupation 
with magic tricks and lack of interest in 
building upon die legacy he’s created in 
Greenwood, a community of black 
.strivers in Oklahoma’s “Magic City,” as 
oil-rich Tulsa was known in the 1920s. 

Magic City became a nightmare for 
blacks, after die spring of 1921. when 
white rage consumed Greenwood with 
arson, looting, maiming, murder and even 
bombs courtesy of the National Guaxd. 
As Jewell Parker Rhodes (also author of 
“Voodoo Dreams”) says in an author's 
note, the catalyst was a black shoeshine 
man being charged with assaulting a 
white female elevator operator. 

Joe Samuels is a shoeshine man in 
Tulsa's grandest structure, the Ambrose 
Building, not because this is the best he 
can do but because be needs to defy his 
father. “He didn’t rely on his fetter's 
wealth,” a character murkily muses at 
one point; yet Joe eats his fetter’s food 
and lives under his roof. 

ration created by a nuclear explosion. 

was applied figurat- 
ively in 1973 to die Saturday Night 
Massacrethat magnified Watergaie,no 
one could quarrel. Since then, it has 
been progressively cheapened accord- 
ing to a kind of Gresham's Law of 
Language. When Anthony Lake was 
no m i nat ed to be Director of Central 
foteMgence in March, Senator Richard 
Shelby, the Alabama Republican 
warned feat unless the nomination 
were withdrawn, the Republicans 
would turn his confirmation hearings 
into a — guess what? The episode was 

A redeeming quality of 
cliches is that their 
meaning is clear — - even 
when they are mangled. 

a trauma for Lake, an embarrassment 
for the president and a frustration for a 
leaderiess CIA. But a firestorm ' ? 

Another nuclear usage, ground zero, 
is now as often misused as overused. It 
is frequently offered as a supposedly 
emphatic way of describing the starting 
point: square one. The term truly de- 
scribes an ending point: the place under 
a nuclear bomb explosion. 

Some other cliches that have spread 
like graffiti: 

Hel-LO!, meaning wake up to the 

Wake-up call , meaning a warning. 
Poster child, or poster boy , meaning 
exemplar or model, as in a poster child 
for artistic freedom (Salman Rushdie), 
for campaign finance reform (John 
McCain) and even for economic con- 
stipation (Leon Panetta). 

The clanking clicte: Why do writers 
grab so quickly for usages that make 


One day Joe gets the gumption to defy 
custom by not walking up 14 flights to the 
men’s roan “for the colored” in the 
Ambrose Building and taking the el- 
evator instead. As he later reflects, ‘ ’He’d 
only thought about wanting to be treated 
like a man, about wanting to ride because 
he’d been told not to.” Unfortunately for 
Joe. be is the female elevator operator’s 
sole passenger; and fee lobby is foil of 
Negrophobic Tulsans when she. the un- 
loved and unlovely Mary Keane, 
screams, and fee elevator door opens 
wife ter laid out on the floor. 

Now Joe Samuels is a dreamer on the 

You never doubt his innocence. You 
know that Mary was raped by her fe- 
tter’s farmhand that mo rning. You 
know she had suppressed fee agony of 
the outrage all morning. You know, too, 
that fee reason she had no panties on 
when found in the elevator is feat she left 
home without any on. 

Escape. Capone. Escape ... As ten- 
sions rise high in Magic City, Joe be- 
comes rather Houdiniesque indeed. It is, 
however, fee men of Greenwood who 
ultimately save him, rising to stand be- 
tween him and fee lynchers. The novel’s 
ending suggests that in fee wake of 
Greenwood’s desolation Joe becomes a 
man, wife purpose, wife courage and 
with the muscular vision and noble 
cause of rebuilding Greenwood. 

But fee reader can’t help but wonder if 
this is just another of Joe’s gossamer 
dreams, because from fee outset it is 
difficult to root for him. to believe that he 

them look so careless or derivative? 
One explanation is ignorance; the writer 
is not consciously aware of the overuse. 
Another is that fee writer is aware but 
thinks, patronizingly, that the reader is 
noL Sometimes, a clicte is so eupho- 
nious or so exactly fits what the writer is 
trying to say that it’s impossible to 
resist: nature or nurture . . . feast or 
famine . . . mend it, don't end it. 

One redeeming quality of clictes is 
fear their meaning is perfectly clear, so 
clear, in fact, that they are understood 
even when mangled. Deborah Tannen, 
fee Georgetown University scholar, 
calls my attention to a whole catalogue 
of prefabricated expressions that are 
misconstructed but not misconstrued, 
like up against the wire or something 
along those veins. 

What probably underlies every ex- 
planation of clicte use is a fundamental 
of communication: fee desire to be 
heard; the hope that fee more colorful 
one’s language, the more effective. 
Even when overuse of an expression 
drains away all color and effectiveness, 
that hope seems to, ah, spring eternal. 

That’s true, at least, of American 
English, but shrinking from overuse is 
not universal. Tannen quotes Chinna 
Ache be, the Nigerian novelise “Hav- 
ing spoken plainly so far, Okoye said 
the next half-dozen sentences in pro- 
verbs. Among the Ibo fee art of con- 
versation is regarded very highly, and 
proverbs are the palm-oil wife which 
words are eaten.” 

Even so. in English, eating one's 
words has a different meaning alto- 
gether. In the United States, if you do 
have to eat your words, better feat they 
not be stale. 

Jack Rosenthal is the editor of The 
New York Times Sunday Magazine. 
William Safire is on vacation. 

is not irrevocably bound for a life of 
absurdity. After all, a black person in fee 
1920s who idolizes a white man who is — 
albeit amazing — merely an entertainer is 
not all that compelling a character. 

Heightening doubts about Joe’s trans- 
formation is the author's failure to 
achieve fee mythic quality of, say, Toni 
Morrison’s “Song of Solomon.'’ There 
is no sustained evocation of the mar- 
velous, fee magical, though Rhodes 
spikes her novel wife appearances from 
Joe’s big brother Henry, who’d died 
while soldiering in France — plus vis- 
itations from Houdini. 

Occasionally fee reader is treated to a 
majestic scene, as when “words, like 
hands, were gathering the men’s souls.” 
that is. when fee stalwarts of Greenwood 
are inside Mount Zion church readying 
for battle against a Klan-dominated 
horde, and in fee face of justifiable fears 
a sage wife fee misnomer Lying Man 
brings his comrades to fee grave reck- 
oning feat it is better to die taking a 
righteous stand than to live as white 
men’s boys. 

“I hope my novel inspires people to 
reaffirm that hatred for any reason — 
race, religion, gender, class — dimin- 
ishes us all,” writes fee author in her 
note. This could certainly happen, but it is 
too bad that such inspiration is not served 
up in a fascinating work of fiction. 

Tonya Bolden, author of “The Book of 
African-American Women: 150 Cru- 
saders. Creators and Uplifters wrote 
this for The Washington Post. 


By Alan Truscott 

O NE of fee two women’s 
teams feat has qualified 
to represent fee United States 
in Tunisia in October has un- 
dergone a slight change. Sue 
Sachs of Baltimore, who 
resigned from tire, group 
headed by Kathie Wei- 
Sender of Nashville, after 
arthritis problems during fee 
trials feat determined fee se- 
lection, has been replaced by 
Irina Levitina of Teaneck, 
New Jersey. 

Sachs, who will be fee non- 
playing captain of fee team, 
was playing well at fee Amer- 
ican Contract. Bridge 

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West led tbe diamond four. 

League's Summer Nationals 
in Aibuqueiqne, New Mex- 
ico, recently. Together wife 
her husband, David, and 
Marc and Sandra Low of 
Centerville, Ohio, she won 
fee National Mixed Team 
Championship at fee end of 
fee tournament. 

In the diagramed deal, 
most pairs arrived in four 
spades and foiled. Marc Low 
was the declarer after an auc- 
tion employing the Drury 
convention: two clubs by 
North following an original 
pass showed support f or the 
opener with strong game in- 

Tbe opening lead was a 
diamond, and East's king was 

allowed to win. The diamond 
continuation was won with 
fee ace, and fee king of hearts 
was led West took the ace 
and led a low diamond, but 
South countered by ruffing 
with fee spade ace. 

Low then threw his clubs 
on dummy's heart winners 
and ruffed a club. He then 
ruffed his last diamond wife 
fee spade ten, and -was still in 
jeopardy when East over- 
ruffed wife fee queen and led 
a heart He ruffed wife the 
spade eight rather nervously, 
and when West could not 
overruff, be drew trumps and 
claimed his game. This won 
fee board for his team, for fee 
game foiled in fee replay. 



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Slrrien Sehnidt/Rocm 

WOOLY — A competitor puffing 
away at a beard beauty contest in 
Chur, Switzerland, on Sunday. 

Government Critics 
Arrested in Zambia 

KAB WE, Zambia — Fifty-three 
Zambian government opponents 
were arrested after a rally in which 
former President Kenneth Kaunda 
was slightly injured by a bullet, fee 
police said Sunday. 

Mr. Kaunda, 73, and other op- 
ponents of President Frederick 
Chiluba appealed for restraint and 
accused the authorities of attempt- 
ing to kill opposition leaders. 

“This is an attempted assassina- 
tion, and there's no doubt about it,” 
Mr. Kaunda told the South African 
Press Association late Saturday. 

He was speaking from Kabwe 
General Hospital, where he and Ro- 
ger Chongwe, head of fee Liberal 
Progressive Front, were taken after 
they were both hit by tbe same po- 
lice bulleL (API 

Witness at Hearing 
Of Winnie Mandela 

witness who disappeared before the 
1991 kidnapping trial of President 
Nelson Mandela’s former wife, 
Winnie, is expected to testify before 
South Africa’s Truth and Recon- 
ciliation Commission, fee Johan- 
nesburg Sunday Times said. 

Katiza Cebekbulu, who vanished 
as he was about to tell tbe Johan- 
nesburg Supreme Court about fee 
abduction and subsequent murder 
of a teenage activist, Stompie 
Seipei, will return from London to 
seek amnesty, fee newspaper said. 

Last week fee panel subpoenaed 
Winnie Madikizela-Mandela to ap- 
pear at a hearing about the murder 
and fee disappearance of three other 
youths. (AFP) 

UN Mission Arrives 
For Probe in Congo 

KINSHASA, Congo — A much- 
delayed United Nations mission ar- 
rived here Sunday to look for ev- 
idence of massacres of Rwandan 
Horn refugees in what aid workers 
say were killing fields in the former 

■ But a spokeswoman for the team 
said a number of issues remained to 
be settled wife President Laurent 
Kabila’s government before the in- 
vestigators could begin work. 

“We are here, and this is already 
a major accomplishment, but there 
are still several things that need to 
be clarified.” Myriam Dessables 
said (Reuters) 

Journalists at Risk 
In Latin America 

MIAMI — Despite an era of de- 
mocracy in Latin America, jour- 
nalists who criticize governments or 
investigate sensitive issues risk har- 
assment, intimidation and death, 
human rights groups say. 

Recent reports, by Amnesty In- 
ternational and fee Inter-American 
Press Association said journalists 
face risks in Peru, Cuba. Colombia, 
Argentina, Guatemala and espe- 
cially Mexico. (Reuters) 

PEACE: A New World of Economic Growth 

Continued from Page 1 

including some major Asian ones. 

Since ancient times, people have re- 
quired the breathing space of peace to 
plant crops, develop crafts, build in- 
dustries and engage in barter — to re- 
lease tbe enormous human energies that 
quickly turn ro economic activity. In fee 
1990s. there are new factors at work 
spreading such vigor worldwide — not 
least technology. 

One of the most technologically so- 
phisticated nations, the United States, 
has emerged as both a military giant and 
economic powerhouse, a situation few 
predicted a decade ago. 

Gavin Wright, an economic historian 
at Stanford University, says feat analysts 
have been comparing this era to the Pax 
Britannica of the last century and early 
this century, “when the British bad 
domination of the seas and certainly 
were not afraid of being attacked in 

Such a situation, he added, “was a 
very' positive thing for long-term in- 
vestment in new technologies and 

As this century ends, fee United States 
is in roughly fee same position and, 
released from tbe Cold War fears of 
giving away knowledge to fee enemy, is 
more willing to share and sell American 

“You could say feat we wouldn’t be 
having this globalization unless it were 
basically an era of peace,” Mr. Wright 
said. “People are relaxed about the 
transmission of technology across bor- 

But many historians and analysts of 
world trends caution that peace on its 
own is never enough for sustained eco- 
nomic strength. Peace provides only a 
positive environment for development 
and growth. 

Social, political, cultural and some- 
times geographic factors take over from 
there, they say, and they point to short- 
term problems in healthy countries and 
some long-term weaknesses elsewhere 
— in many African nations, in North 
Korea and in pockets of the former So- 
viet bloc. 

Also, in an age of economic glob- 
alization, the policies of disparate na- 
tions and regions need a certain amount 
of mesh. The collapse of co mmunis m 
and the discrediting of centralized eco- 
nomic policies have fostered integration. 
But the next stage is crucial. 

“If peace is defined as fee absence of 
conflict, feat may or may not mean that 
you have what you need to get economic 
growth going,” said Paul Goble, a 
former adviser to Secretary of State 
James Baker on Soviet nationalities and 

fee Baltics who is now a director at 
Radio Free Europe in Washington. Mr. 
Goble sees many false hopes for what 
peace could bring in Central Asia, Af- 
ghanistan and Pakistan. 

James Chace, a Latin American ex- 
pert who teaches international Relations 
at Bard College and edits World Policy 
Journal, agrees that “the danger is to try 
to make too easy a connection between 
peace and prosperity." But he tempers 
bis doubts. 

“It’s true that in peace you are more 
likely to have prosperity. Generally, 
businessmen don’t like war. The mer- 
chants of death may, but that's an ex- 
ception. For the average businessman, 
the banker, it spells turmoil, uncertainty 
— so why would you do it? Interstate 
conflict is less and less likely now.” 

The looming problem is translating 
worldwide growth into equity for all, be 
said, and that applies to fee United States 
as much as to the Third World. 

“In times of war, you rally people 
around the flag,” he said. “But if there’s 
no trouble abroad, it’s veiy hard to dis- 
tract them. If you strip people of fee 
benefits they have come to expect, if too 
many people are left out of the economic 
boom, particularly in the middle class, 
then you can have internal turmoil. Tur- 
moil at home and peace abroad — I think 
that is the most likely danger, unless you 
begin to have an economy that avoids 
social dislocation.” 

Mr. Chace looks back ro the 1890s, 
when fee United Slates was at peace and 
in an economic boom, but there was 
unrest because organized labor was sup- 
pressed and not a lot of wealth was 
trickling down. A century later, fee 
growing phenomenon of small civil con- 
flicts. coupled wife widening gaps be- 
tween rich and poor in many nations — 
and fee existence of hundreds of milli ons 
of people in absolute poverty worldwide 
— gives policymakers plenty to work on 
in peacetime. 

“Peace is not only fee absence of 
conflict,” said Juan Soma via, Chile's 
representative at the United Nations. “It 
is the presence of human security — at 
the individual level, fee family, fee com- 
munity. Peace is also positive things 
happening within a society. The two 
peaces are necessary. The problem today 
is that, yes, you have less major conflict, 
but you also have more human insecurity 
worldwide. The real security threat of 
fee future is that people feel insecure in 
their own societies.” 

And it is not hard to see why they 
would view economic globalization not 
as an opportunity to attract investment 
and modernizing skills to tbeir countries 
but as a new form of economic im- 

OLESTRA: Fat Profit from No-Fat Snncks 

Continued from Page 1 

snack. P&G and supermarket executives 
say. Of those people. 71 percent have 
bought at least a second helping — even 
though every package carries a label as 
graphic as anything that has ever ap- 
peared on the side of a cigarette box: 
“Olestra may cause abdominal cramp- 
ing and loose stools.” 

These statistics augur well for Procter 
& Gamble's half-billion-dollar wager 
that it can make money on a product feat 
promises the taste of real potato chips 
without fee fat and wife half fee calories, 
even though it makes some people sick. 

Oles Ira’s nemesis. Michael Jacobson, 
executive director of fee Center for Sci- 
ence in the Public Interest, says fee mar- 
keters’ efforts — what he calls an “enor- 
mous propaganda campaign” — are 
nothing less than “a demonstration of 
corporations without a conscience.” 

But the companies reject such ac- 
cusations, and so do many consumers 
here. “I have been plagued wife over- 
weight all my life, and I love these 
products,” said Dorothy Hall, a 65-year- 

Even some of those who have suffered 
digestive distress cannot do without 
their olestra snacks. “I had to lay off 
these for a while because they gave me 
diarrhea and loose stools,” said Man 
HaJe. “But I didn’t think it was severe 
enough so I couldn't buy them again.” 

Americans ate 5.5 billion pounds (2.5 
billion kilograms) of salty snacks last 
year, or about 22 pounds a person. This 
dwarfs the amount consumers spend an- 
nually on such “healthy" products as 
vitamins and minerals. 

Procter & Gamble and Wall Street are 
counting on olestra’s earnings potential. 
The P&G chairman and chief executive, 
John Pepper, told analysts recently that 
the company was aiming for $500 mil- 
lion in domestic sales from olestra and 

$400 million internationally “by fee end 
of the decade.” That would make Olean 
one of fee company’s top 10 brands. 

For Frito-Lay, the king of snack-food 
manufacturers, with North American 
sales of $6 billion, “this is the biggest 
product we’ve ever launched,” said Steve 
Sears, a vice president of marketing. 

The rewards could be immediate. An- 
drew Conway, an analyst for Morgan 
Stanley, Dean Witter, predicted that if 
volume was strong. Frito-Lay ’s olesira 
rollout “could increase 1998 PepsiCo 
earnings per share 1 to 2 cents” — or a 
total of $35 million to $50 million in 
added operating profits. 

Procter & Gamble has been pricing its 
Olean Pringles at a 40 percent premium to 
its regular Pringles, it and sold more than 
7 million one-ounce (28-grara) servings 
of them during fee market test, exceeding 
expectations, according to company and 
local supermarket executives. 

The U.S. Food and Drug Adminis- 
tration approved olestra for use in snacks 
in January 1996, after- a nine-year re- 
view. It was tbe first new nutrienr to be 
approved in two decades. 

it insisted on the warning label after 
some researchers linked olestra to a high- 
er incidence of gastrointestinal distress. 
But in approving the use of olestra. Dr. 
David Kessler, then the commissioner of 
food and drugs, said research data 
“demonstrate reasonable certainty of no 
harm for use in certain snack foods.” 

But' Dr. Walter Willett, a physician 
who is chairman of the department of 
nutrition at Harvard University’s School 
of Public Health, disagrees. “My major 
concern is the long-term health con- 
sequences,” he said. Those who have no 
gastrointestinal distress, he said, “will go 
on eating olestra on a long-term basis, and 
this will increase their chance of getting 
serious disease,” like heart attacks, 
strokes and blindness due to macular 
degeneration, a disease of fee retina. 

Sir Eric Gairy, Grenada Ex-Chief, Dies 

The Associated Press 

ST. GEORGE’S, Grenada — Sir Eric 
Gairy, widely regarded as an eccentric 
and authoritarian reader during 12 years 
as prime minister of Grenada, died Sat- 
urday at his home. The cause of death 
was not immediately known, but Sir 
Eric, 75, suffered a stroke last year. 

He dominated politics on this Carib- 
bean island for tnree decades, and be- 
came its first prime minister after it 
gained independence from Britain in 
1974. He was accused of numerous hu- 
man rights abuses, and a paramilitary 
band called the “Mongoose Gang” ter- 
rorized scores of his opponents. 

From 1967 until his ouster in a coup in 
1979, he personally approved govern- 
ment spending and hiring decisions and 
granted contracts to supporters. He re- 
sponded to growing dissent wife repres- 
sion and restrictions on organized labor 
and the media. He once urged the United 
Nations to investigate unidentified fly- 
ing objects and. despite his political 
stature, once accepted an invitation to 
judge a Miss World beauty contest. 

On March 12. 1979. he left Grenada 
for talks at the United Nations on UFOs. 
The next day, Maurice Bishop of the 

opposition New Jewel Movement over- 
threw fee Gairy government The United 
States gave Sir Eric refuge but quickly 
recognized the new People’s Revolution- 
ary Government. After the assassination 
of Mr. Bishop and the U.S. invasion in 
1983, Sir Eric returned but was unsuc- 
cessful in several election attempts. 

Rolf Knie, 75. a master elephant 
trainer who Led Switzerland’s foremost 
-circus family for 50 years, died of heart 
failure on Aug. 1 8. Mr. Knie headed the 
family-owned Swiss National Circus 
from the death of his father in 1941 to his 
retirement in 1991. 

Kay Halle, 93. a glamorous Cleve- 
land department store heiress who cut a 
heady swath through the 20th century 
firmament, befriending and bewitching 
luminaries on both sides of the Atlantic 
and serving as a perceptive gadfly in 
politics, society and the arts, died Aug. 7 
at her home in Washington. She formed 
enduring intimate relationships with 
such diverse figures as George Gersh- 
win, Randolph Churchill, Averell Har- 
riman, Joseph P. Kennedy, Waller 
Lippmann and Buckminster Fuller, had 

a creditable enough career in journalism 
and with American intelligence in 
World War fl, conducted radio inter- 
views with public figures and provided 
intermission commentary for Cleveland 
Orchestra broadcasts. 

William Cade, 75. a decorated 
French Resistance fighter and later a 
travel executive, died of a stroke Aug. 8 
in a hospital in Naas, Ireland. He came to 
New York in 1 947, and in 1 964 moved to 
Ireland, where he later opened Kilkea 
Castle as a hotel. 

Jean Westwood. 73, a leader of 
George McGovern's unsuccessful 
Democratic campaign for president in 
1 972 and the first woman to be chairman 
ofamajor political pany.died Aug. 18in 
American Fork, Utah, of complications 
from a pituitary rumor. She became the 
chairman of the Democratic National 
Committee after Mr. McGovern won the 
Democratic nomination. 

Tete Montoiiu, 64, a blind pianist and 
one of Spain’s most popular jazz artists, 
died Sunday of lung cancer in in a hos- 
pital in Barcelona. 

PACE 10 




4i fii> it ai n THlUt :NE- SEPTEMBER 24, rtf? 

Hcralb”j:ra" (tribune 


MONDAY. AlC 1ST 25. 1997 


The Lessons 
From a Past 
Bull Market 

Decade After Collapse, 
A Sense ofDeja fit? 

By Edward Wyatt 

Vw York Times Sen-ire 

NEW YORK — It was a glorious 
summer on Wall Street. Stock prices 
rocketed to a series of new highs as 
investors poured record amounts of 
money into mutual funds. The last re- 
C f1f* 0n was a ^ stan( memory, and, 
although interest rates were perking up 
abit. inflation appeared under control. 
The Federal Reserve Board's chair- 
man, Alan Greenspan, was the toast of 
the Washington dinner-party circuit. 
With Labor Day approaching, few saw 
any reason for the market run-up to end 
anytime soon. 

Sound familiar? The description fits 
today, but these events transpired in the 
summer of 19S7, al the end of one of 
the greatest bull runs in Wall Street 

On Aug. 25, 1987 — 10 years ago 
Monday — the Dow Jones industrial 
average peaked at 2,722.42, culmin- 
ating a spectacular advance of more 
than 40 percent in just eight months. 

Who on Wall Street that day could 
have known that less than two months 
later, those gains would evaporate in a 
frenzy of selling, the memory of which 
still produces knots in the stomachs of 
many market longtimers? 

To some who lived through it. the 
crash of OcL 19, 1987 — when the 
market plummeted 22.6 percent in a 
single session, a percentage decline 
nearly twice as large as the 1929 de- 
bacle that ushered in the Great De~ 

? ression and more than seven times the 
.1 percent plunge that rattled Wall 
Street nine days ago — seemed like a 
bolt from the blue. 

But even as the first crocus poked its 
head out of the still-thawing ground 
that spring, signs of trouble were 
sprouting on the economic landscape. 
By late August, they were everywhere, 
and a few nervous investors were be- 
ginning to sniff a disaster. 

Before the market opened on 'that 

a if j ■ : 

Black Monday in October, stock prices 
had already fallen more than 17 per- 
cent from Lheir peak. 

With the parallels between the mar- 
ket exuberance of 1987 and 1997 so 
stark, the question naturally arises: Are 
there also parallels between economic 
conditions then and now that forebode 
another market meltdown? 

A review of the developments that 
led to Black Monday makes it obvious 
that the U.S. economy is in much 
sounder shape now than it was then. In 
addition, policymakers have clearly 
learned the lessons of that era and are 
not likely to make the same mistakes. 

But the same historical retrospective 
shows that even as events that bring 
down a market unfold, their capacity 
for damage often goes unrecognized. 
And that raises a troubling question for 
investors in 1997: Now that the eco- 
nomic generals know how to fight the 

There have been times this year when the stock market s trajectory has 
seemed to parallel the path blazed by the Dow Jones industrial average in 
1987. Percentage changes from the start of trading in each year. 

+40% - 

+30 - 

Aug. 25, 1987 
Dow industrials 
dose at 2,722.42. 
a record 

Alan Greenspan, center, and President Ronald Reagan at Mr. Greenspan's inauguration as chairman 
Federal Reserve Board in August 1987. That summer's bull run ended in October, when the market collapsed. 

Iasi war, will they recognize the warn- 
ing signs of the next one? 

So many economic and political 
episodes — from the recent currency 
crisis in Southeast Asia to last month’s 
balanced-budget accord in the United 
States — hold the potential for dis- 
ruptive consequences that even the 
savviest policymaker cannot know ex- 
actly how to respond to them. And 
market downturns have a habit of 
catching people by surprise. 

Indeed, the big guessing game on 
Wall Street these days is whe ther one is 
under way at this very moment. 

That said, many analysts are much 
more comfortable with the resilience 
of the American economy today than 
they were a decade ago. 

•‘From my perspective. 1997 and 
1987 are vety dissimilar.” said Wayne 
Angell, a Bear, Steams economist who 
10 years ago was a member of the 
Federal Reserve Board. '*At that time, 
you had a deterioration of the eco- 
nomic-policy environment, which 
meant stocks were not going to work as 
the marker had priced them. 

“The economic condition was 
worsening from October 1986 through. 

October 1987,” he added. Today, by 
contrast, it is noL “I do not see any 
signs of that occurring. I continue to 
expect that the bull market goes on and 
on and on, interrupted only by some 
corrections,” Mr. Angell said. 

Probably die most striking similarity 
between 1987 and today is the investor 

. + 20 - 

' +10 


1 J F M ■ A 
Source: Btoombem Financial Markets 


NYT j 

euphoria that in both periods helped 
fuel the market to ever loftier peaks — , 
peaks that, then as now, economic kill- 
joys were warning were unrealistic by 
traditional measures. The good times, 
it seemed, would never end. 

“I would say that things today are 
maybe 70 percent similar to 1987” in 
that regard, said Robert Farrell, a senior 
investment adviser at Merrill Lynch 
who in 1987 was the firm's chief mar- 

ket strategist. “On an economic basis, 
the two periods are different But we 
have a period of overvaluations, with 
high public participation in the market 
ana a high level of complacency in 
bullish sentiment.” 

For example, Mr. Farrell recalls, 
analysts considered the market to be 
highly valued in March 1987 — and it 
shot up another 20 percent over the 
next five months as S3 billion a month 
flowed into mutual funds, foreigners 
scrambled to invest in American stocks 
and the total supply of stock shrank 
from all the leveraged buyouts and 
other deals that were taking place. 

Market players who recount their 
astonishment at the 1987 gains sound 
remarkably like people today mar- 
veling over the Dow’s climb from one 
millennial post to the next. 

Then, as now. the most potent force 
was the cost of credit The higher the 
interest rates people and businesses 
must pay for loans, the heavier the drag 
on the economy; the lower the interest 
rates, the more powerful the impetus. 

For those who were asked to com- 
pare the tw o eras, one of the sharpest 
discrepancies was the sudden uptick in 

See DECADE, Page 13 


Japan Bank to Supply 
Funds for Philippines 

IMF Also Prepares Peso Review 

C- Ik (hu 5aiff From Pispatchn 

MANILA — The Philippines will 
soon receive $490 million from the Ja- 
pan Export-Import Bank, partly to aug- 
ment foreign exchange reserves de- 
pleted in a failed defense against 
currency speculators, an official said 

Cristina Orbeta. external debt director 
of the Central Bank of the Philippines, 

said the funds would be released with- 
in 10 days. 

She said $340 million of the total 
represents most of a “parallel” Jap- 
anese financing facility tied to an ex- 
isting facility provided by the Interna- 
tional Monetary' Fund. 

The IMF was to begin this week to 
assess the damage of the de facto peso 
devaluation on the Philippine economy. 
Central Bank officials said Sunday. 

A three-year IMF program for the 
Philippines was to have ended in June, 
but Manila asked for a four-month ex- 
tension after speculative attacks caused 
the peso to depreciate sharply against 
the dollar. 

The peso has fallen about 21 percent 
against the U.S. dollar since mid-July, 
when speculators turned their sights on 
the Philippines after several other cur- 
rencies in the region collapsed. 

Central Bank officials said the IMF 
would assess the country’s “latest eco- 
nomic and financial developments for 
the first half of 1997 and conduct an 
exchange of views” on policies and 
targets for 1997 and 1998. 

Other discussions will center on pos- 
sible changes in Philippine balance-of- 
paymems projections and the impact of 
the peso depreciation on the trade bal- 
ance. on capital transfers and on the 
country’s outstanding foreign debts, the 
officials said. 

The bank has forecast a $2.9 billion 
balance-of-payments surplus for 1997, 
but bank documents showed Sunday 
that the balance fell to a $139.6 million 
deficit for the year through May from a 
surplus of $3 17 million through April. 

The documents blamed $668 million 
of the shortfall on foreign exchange 
trading in May. 

The deficit compared with a $1.96 
billion surplus in the first five months of 

The payments deficit also was far 
below the target of a SI. 3 billion bal- 
ance-of-paymems surplus that had orig- 
inally been projected under a program 
approved by the IMF. 

The IMF offered the Philippines al- 
most $1.1 billion in financial support 
last month to help ease the problems that 
caused the peso’s fall. 

Manila has used about $700 million 
of that amount. 

The Philippines plans to exit from 
more than two decades of economic 
stewardship under the IMF this year as 
soon as it passes a crucial package of tax 
reforms. (AFP. Reuters) 

■ Moody’s: Jakarta Banks Stable 

Moody’s Investor Services Inc. said 
that the currency crisis in Indonesia had 
not-affected the country's banks so far 
and they did not require a reassessment 
of their credit quality, Reuters reported 
from Jakarta. 

“The only potentially serious threat 
to bank ratings.” the agency said in a 
report released Saturday, stems from 
deteriorating credit thar could result 
from “borrowers' unhedged foreign 
currency liabilities or an economic 
slowdown.” Moody’s ranks the quality 
of credir, bonds and other investment 
instruments worldwide. 

“Until the exchange rate settles, it is 
premature to assume that credit quality 
will deteriorate so badly as to require a 
reassessment of Moody's ratings." it 

Indonesia's rupiah fell TO a historic 
low of 3.045 against the U.S. dollar on 
Tuesday following its float the previous 

It recovered after the central bank 
sharply increased short-term imprest 
rates and finished Friday at 2.670. 

Hong Kong 
Sees End to 
Dollar ‘Crisis’ 

Bloiinbcr^ .V»n * 

HONG KONG — Hong Kong’s fi- 
nancial secretary said he was confident 
that the speculative attacks on the ter- 
ritory’s dollar that drove interest rates to 
their highest levels in five-and-a half 
years have ended. 

“As far as I'm concerned, the so- 
called crisis is more or less over.” Don- 
ald Tsang said at a news conference 
Saturday. “There were a couple of skir- 
mishes and we came out all right.” 

Tile currency' has remained relatively 
stable, even though investors have bid 
up the price of foreign exchange con- 
tracts m the futures markets. Their 
trades were based on fears that Hong 
Kong might decide to remove its ties to 
the U.S. dollar as several Asian nations 
have done in the past two months. 

The Hong Kong dollar has been 
pegged to the U.S. dollar since October 
1983. Because of that link, rising in- 
terest rates are the best signal that the 
currency is under pressure. 

Mr. Tsang said he was not worried 
about more speculative attacks on the 
Hong Kone dollar, a key pillar of 
China’s one -country, two-system eco- 
nomic policy that will guide Hong Kong 
over the next 50 years' 

“I suppose thar speculators having 
been bumr will not wish to come back too 
quickly." he said. “I’m pretty confident 
that we’re able to cope with whatever 
problems might come our way." 

He tried to dispel fears that Hong 
Kong was becoming less competitive 
than neighboring countries whose cur- 
rencies have weakened against the dol- 
lar recently. 

“Hong Kong's economic structure 
has changed over the years. We are not 
so much dependent on manufactured 
goods,” Mr. Tsang said. 

He said that what Hong Kong “might 
lose in foreign exchange relativity" 
could be gained “as a very stable econ- 
omy relative to our neighbors.” 


Australia Fir 

Hits Bonanza by Selling Net Sites 

By Rajiv 

Wtuhingwn Aw Service 

What’s the difference be- 
tween .net and .com on the 
| Internet? 

■ It’s S 150. if the Web site’s 
name starts with www.inter- 

you’ll find the site for die 
InierNIC, the official registry 
of Web sites, run by the 
Herndon, Virginia-based 

Network Solutions Inc. 

The company charges 
$100 for two-year rights to a 
particular Internet address, 
such as or 

you’ll also find a service to 
register Internet addresses — 
“ domain names ” in Nei- 

At the Web 
sire, started in June by an Aus- 
tralian company called lnter- 
nic Software, you can get the 
same two-year rights to an 


t t DA 

105 m U# 
•M S9775 34485 
522 M2 — 
K2 ■ — M»71 
US 2*529 U9 
:a 18S00 77535 

- lilts® 

in 923 law 
115 1*22 on 
01 2201 87443 
775 JiU Mffl 

toi nsn 19® 

m 08*99 2*775 


0330 MW 
4138 2117* 
U9t? MOT 
9J2B 1«72 
25093 8461 

28WS — 
41385 1. 73+® 
— 03*ST 
. 1893 045* 
U2» 16785* 
82*5 008*' 
44376 1.92237 
W99 2*672 

Aug. 22 

DU &F. if. G 

| JUS lJtfS 1471 133 

lUi 348675 U2U H-5® 5 ' 

UK 440T It®* ISS" 1,821 
a 284 tom 2JW1&S3S. 22379 2*716ffl 
750J6 40933 10225 HiflOP-fflS — 
mm *722 1,160*5 1il7 127325 11338 
2W» 37® 145& 11S2S 1393! 157JR 

29917 0.1431 4075 53£8' *3*3 

5461 10BB6 7725 — K-U a7B . 

BiB13 03715* 05288 1 177* — WJL 
62331 1«’ — H* 7J ™ *** 
MID 6*885 16388 1WB4 1-5157 16t® 

17771 51272 20*75 159245 768* URSA 

JJfc » wr « Mto 1MH <* I* «* «“** 

Other Dollar Values 

tanaqr PwS 
Aijantpoio 0.9999 
AWrrttanS 12416 
Austria seta. 12.753 
Bubo not TJM» 

Otecyno 82191 
QKfekDfvna 34.76 
DOibliknae 7.0165 
EgrpL pound 32943 
fin.murK1m 52878 

UlUKf P** 

HkdrflC 2SU5 
MgKongS 77453 
jug. forttrt 19920 
*nni» 36-W 
Ko.roptflh 26700 
«,£ MW8 

iw dinar 03028 
BfBT.rfn* Z- 745 


Me* pew 
K. Zealand S 
Port, escudo 
Saudi rtyol 













S. Afr.nmfl 
S_ Kor. wen 
T Irtish Bni 
UAE (Britain 

Per 5 
898 80 
1653 B0 

day »« 

1*936 13915 Japan** yen 

ijw 12886 Swiss ft-rc 

1*045 1*010 

3 HOT 

114*3 11&49 1 16.98 
1.4935 12882 MB® 

unused address, bur for the 
price of $250. 

Since it went on-line, the 
copycat site has lured more 
than 2,000 people to pay the 
inflated address price, ac- 
cording to Network Solu- 

Last week, the Federal 
Trade Commission weighed 
in. saying die site probably 
violates federal regulations 
against deceptive trade prac- 

Under an agreement with 
the National Science Foun- 
dation, Network Solutions 
has the exclusive rights to 
hand out domain names that 
end with .com, .net, ,.org and 
three others. 

Intemic Software, accord- 
ing to the Federal Trade Com- 
mission and Network Solu- 
tions, has been taking the 
names people submit ro them 
and directly applying to the 
real InierNIC — pocketing 
S 1 50 a pop in the process. 

‘■Consumers who thought 
they were registering their 
domain names with an offi- 
cial registry were deceived by 
a site" that used a virtually 
identical name and format,” 
said David Medine, the Fed- 
eral Trade Commission's as- 
sociate director for credit 

“Consumers paid two- 
and-a-half times to do whar 
they could have done directly 
with the official site.” he 

said. . „ 

Network Solutions alleges 
that, in some cases, the names 
were never submitted to the 

InterNIC- n 

The Federal Trade Com- 
mission said it has notified the 
Australian authorities, who 

have begun an investigation 
of the company. 

As of Tnursday afternoon. 
Network Solutions said it 
would not begin a 30-day pro- 
cess to revoke Intemic Soft- 
ware's address, even though 
.Network Solutions has the 
ability to zap the domain with 
a few computer commands. 

David Graves, the Internet 
business manager for Net- 
work Solutions, said there are 

4 I felt really taken. 
It was like 
somebody stole 

$300 from my 

“still some issues we need 
clarification on” from the 
Federal Trade Commission. 

The company said it had 
hoped that die commission's 
opinion would provide legal 
cover in case Intemic Soft- 
ware decides to sue. 

But why would Network 
Solurions decide in the first 
place to give such a similar 
domain name to Intemic Soft- 

“I don’t have an answer for 
that,” Mr. Graves said. He 
said the company, which pro- 
cesses about 120,000 do- 
main-name applications a 
month, doesn't individually 
review each application and 
that 90 percent are handled 

•“It would take a lot of man- 
power to sift through each one, 
and we wouldn't know what to 
look for anyway,” he said. 

Network Solutions has 

canceled names found to be 
misleading before. Last 
month, for example, it pulled 
the plug on the site, which fea- 
tured pornographic pictures, 
after many Web surfers 
stumbled across it when try- 
ing to access photos of the 
Mars Pathfinder mission 
from the official site of the 
National Aeronautics and 
Space Administration at 

Officials of Intemic Soft- 
ware have not returned tele- 
phone calls or electronic mail 

Among those fooled by the 
Australian site was Teresa 
Lauer, a computer consultant 
in Monterey, California, who 
assumed the real InterNIC ’s 
site would end with .com . 

She said she wasn’t sus- 
picious because the inter- site provided domain 

The site has a warning at 
the bottom of the screen, say- 
ing that “Intemic Software is 
not affiliated with, or part of 
Network Solutions, Inc. or its 
InterNIC operation. ' ' 

Ms. Lauer said she didn’t 
see the wanting. Mr. Medine 
of the Federal Trade Com- 
mission said the disclosure 
was “not at all clear.” 

The next day. after Ms. 
Lauer signed up for two sites 
for $500, she round the real 
InterNIC site. “I felt really 
taken,” she said. "It was like 
somebody stole $300 from 
my purse.” 

Internet address: Cyber- 

Recent technology articles: 

Malaysia Still Blan les Soros 

Prime Minister Calls the Financier a ‘Moron 9 

■ Ct'Hiplfdbt Our Siijf Frtwi Ottfutckrt 

KUALA LUMPUR — Prime Minister 
Mahathir bin Mohamad of Malaysia called 
George Soros, the U.S. financier, a “mor- 
on” and said he had no wish to meet the 
man whom he has blamed for the turmoil in 
Southeast Asian currencies. 

* * All these countries have spent 40 years 
trying to build up their economy, and a 
moron like Soros comes along with a lot of 
money” to speculate in their currencies, 
Mr. Mahathir was quoted on Saturday as 
saying by the news agency Bemaroa. 

Mr. Mahathir also said that he bad not 
given the World Bank any mandate to ar- 
range a meeting between him and Mr. Sor- 
os, following reports that Mr. Soros wanted 
to see him and that the World Bank was 
acting as an intermediary in the dispute. 

“I don’t know what business it is of 
theirs,” Mr. Mahathir scud. "Trying ro 
make this kind of manipulative speculation 
legal, is it?” 

In July, Mr. Mahathir launched a blis- 

tering attack on Mr. Soros, saying that 
Malaysia was the “victim” of currency 
speculation by Mr. Soros and others that 
sent the ringgit to its lowest level in three 
years against the dollar. 

Mr. Soros told Hong Kong’s Sunday 
Morning Post that he had not been involved 
in die Southeast Asian currency market, and 
that he believed stability would return soon. 

"As for our activities in Southeast Asia, 
we have recently bought some Indonesian 
rupiah," Mr. Soros said. 

Tim Cullen, a World Bank spokesman, 
was quoted saying a meeting could take 

place during the World Bank-International 
Monetary Fund meeting, which is scheduled 
to stan in Hong Kong on Sept. 20. 

“! will go to Hong Kong but I don’t have 
any wish to meet him.” the Malaysian 
prime minister said, referring to the "Hun- 
garian-born financier. “He has only 
listened to me through the press. He can 
make the statement through the press. I will 
listen. ’ ’ (Reuters. Bloomberg j 

SFX Sale May Create Radio Giant 

Ciwpilrdby OutSiqffFnm Dispatches 

DALLAS — SFX Broadcasting Inc. is ex- 
pected to agree to sell itself for about $2 
billion early this week, according to persons 
familiar with company plans. 

The acquisition firm Hicks, Muse, Tate & 
Furst Inc. of Dallas, and Jacor Communi- 
cations Inc., a radio station owner in Cov- 
ington, Kentucky, are the leading bidders 
competing for SFX, they said. The New Y ork- 
based SFX operates 72 radio stations, and a 
deal with Hicks, Muse would create the 
largest U.S. radio company, bumping CBS 
from the top spoL Hicks, Muse owns 241 
radio stations around the country. 

The eighth-largest U.S. operator of radio 
stations expects to fetch about $1.1 billion in 
cash or stock, observers said. The price would 
translate into about $73 a share, and the buyer 

would assume S900 million in SFX debt. 
Earlier ibis month, Hicks. Muse cut a deal lo 
buy LIN Television for Si. 7 billion. In the 
past year, it has bought major cable TV' 
companies in Mexico and Argentina. 

"Things are just incredible in terms of 
consolidation in this business,” said Edward 
Atorino. a media analyst at Wassersiein Per- 
ella Securities Inc. The sale of SFX would be 
among the biggest in the industry since own- 
ership restrictions were eased last year. 

Broadcasters have amassed clusters of sta- 
tions, boosting their advertising revenue by 
reaching wider audiences and cutting costs by 
combining sales forces. 

Until last year, R. Steven Hicks, head of 
Hicks. Muse’s Capstar Broadcasting uniL 
served as SFX president and chief executive. 

(AP. Bloomberg 1 

) . 

PAGE 12 



A Dash of Rat$ Jitters and Fear of Asian ‘Disease’: More Than Just Static? ^ 

. By Carl Gewirtz 

liuenumoihii HcrJlil Tribute 

PARIS — Is money talking, or is it 
jusr making noise? 

It could just be noise, this discon- 
certing pattern of end-of-week surges in 
the volatility of financial asset prices. 
August does carry the label of the "silly" 
Month, when prices turn emmc because 
so many market participants are on va- 
cation and trading thins dramatically. 
Certainly Friday's performance of 

rencies In addirion to the global sell-off would follow through on its implied the capacity to produce goods more rap- 
in stocks ignited by the fall on Wall threat and move its weekly allocation of idly than the demand for those goods has 
Street on Thursday global bond prices cash from a fixed rate to a variable rate, increased.” 

outside Japan also suffered as the dollar signaling willingness to see rates in- The problems have been complicated 
slid against the Deutsche mark. crease. Conditions for the weekly by the cmrency link to the dollar, which 

The most obvious worry is the fear of tenders are set each Tuesday. appreciated strongly, particularly 

"The potential consequences 

^tr. Cliffe also noted that “to die 

aigmuuig wimngness io see raica in- ms piuuisuo uavc occu — — — . vitkin forcefl 10 uiuubu — " , — . 

crease. Conditions for the weekly by the cmrency link to the dollar, which rates by the Bundesbank. Mr. ; iok j re3Sury paper and that would have im- 

rising interest rates. In the United States, 
analysts anticipate that ihe second es- 
timate of second-quarter growth expec- 
ted on Thursday will be in the area of an 
annual rate of 3 5 percent, up consid- 

Another concern, perhaps more se- 
rious because it is so vague, is a worry 
about contagion from the current cur- 
rency turmoil in Asia. 

appreciated strongly, particularly warned. . .. .... nlications for the U.S. market." 

against the yen, and by overborrowing The situation in Asia, said ^ samej analysts cautioned 

by businesses, overlending by h anks and Cliffe. London-based analyst at * e'taegeratina the possible fallout 

overspending by industry and con- Markets, ‘could cause further voiatu- * ; Patrick Arthur at Caisse des 

is" in global financial markers Hew K^ in P^iid, for example, that 
Hie subsequent currency devalu- potentially worrisome trade and nnan ucy really only Thailand which faces a 
ations, led by Thailand and spreading to cial implications. , -erious crisis, the other economies of the 

annual rate of 3.5 percent, up consul- The possible disease is deflation The subsequent currency devalu- potcauiiu) wwibuilw ua«v «« . — -irs really only Thailan 

erably from the preliminary estimate of stemming from contraction in the so- ations, led by Thailand and spreading to cial implications. serious crisis the other ei 

2.2 percent and likely to kindle fears that called tiger economies that might infect Indonesia and the Philippines before "For Japan’s fragile recovery, me - v ’ robust" 

the Federal Reserve Board will push up the rest of the continent, including Japan now Threatening to engulf Hong Kong. Asian crisis poses the twin threa t or re„ international 

by the close ' longer-term allure, but the immediate in Asia is due fundamentally to pressures system. 

But an equally plausible interpreta- effect of falling stock and bond prices arising from excess capacity," said John Furthermore, the monetary and fiscal 
tion of the increasins volatility is that could hurt the currency. Makin of tile American Enterprise In- tightening now under way in Southeast 

investors are becoming jittery about the In Germany, meanwhile, a steep 4.2 stitute in Washington. "The investment Asia threatens Japan. Asia accounts for 
environment in which they operate, percent year-on-year increase in import boom in the Asian Tigers and China, and 40 percent of its exports, the only sector 
whether it is in stocks, bonds or cur- costs fanned fears that the Bundesbank more recently in Vietnam, has increased to show life following the yen’s decline. 

and German exporters. 

On the financial side, he worried 

jlobai economy. Whether the size of the 

K-on enecis mis cuuiu ~ ....... tn . u .,r 

already troubled Japanese enough to worry about, who knows. 

Most Active International Bonds 

The 250 mosi active international bands traded 
through the Eurodear system lor the week end- 
ing Aug. 22. Prices supplied by Telekurs. 

Rrtc Name Cpn Maturity Price Yield 

Argentine Peso 

247 Argentina FRN 3 -HI 04/01.1)7 1102000 10300 

Australian Dollar 

111 Australia 
198 Fannie Mae 

6ft 11/15/06 102.8370 4.5600 
6ft 06/15/07 96X750 6X800 

Belgian Franc 

224 Belgium Tbllls zero 11/13 191 99.7726 3X500 

British Pound 

124 Abbey Noll TS 6 08/10*9 97.3750 6.1400 

144 Fannie MoeW3 o’* 0* 07/02 98X750 6.9500 
192 Britain 71* 72/07/07 701X250 7.7300 

201FHLB 6ft 06/07/02 98.7500 6.9600 

207 World Bank 6.10 03/17/00 97.8750 6.2300 

Canadian Dollar 

1B7 Canada 7Vj 03/01/01 107.6640 6.9700 

223 Canada 7 09-01/07 I06J400 6 S900 

231 Canada 7V, 12/01/03 109.6360 6.8400 

Danish Krone 

10 Denmark 
19 Denmark 
22 Denmark 
30 Denmark 
37 Denmark 
41 Denmark 

44 Denmark 

45 Denmark 
50 Denmark 
t>6 Denmark 
93 Denmark 
102 Nykredit 

107 Nykredil3Cs 

133 Denmark 
179 Nykraait Bank 
205 Real Medil 
218 Denmark 

8 03/15/06 

7 11/15/07 

8 11,15/01 

7 1215/04 

9 11.154)0 

7 T 1/1 0/24 
6 i2/i aw 
9 11/15/98 

8 05/1 5/03 

6 77,15.02 

6 02-1 5/R9 

7 10/01/29 

6 10/01/26 
7 02/15*8 
7 10,01-26 

6 10/01-76 

5 08/1 5,05 


















75 Germany 

76 Germany 

77 Germany 

78 Treulwnd 
B4 Germany 
85 Germany 
84 Germany 
88 Germany 
91 Germany 
93 Germany 
96 Germany 
101 Germany 
t03 Treuhand 
105 Germany 
109 Germany 

112 Germany 

113 Treuhand 
122 Treuhand 
127 Germany 
142 Germany 
747 Treuhand 
150 Germany 

152 Germany 

153 Germany 
1 57 Germany 
159 Treuhand 
170 Germ any 

174 Germany 
190 Cap Credit Card 
1B8 Germany 

189 Germany 

190 Germany Tunis 
19J Germany 5P 
206 Germany 

211 Russia 
21 9 Italy 

230 Germany FRN 
232 Germany 
238 Germany 
240 Spain 
248 Germany 

Cpn Maturity Price Yield 

614 09/15/99 105.4600 6.400C 
9 01/22/01 114.0200 7J90C 
Bft 05/21/01 112.8700 7.420C 
6ft 03M4AM 106.0094 5.900C 
71* 12/20/02 110.0669 6J70C 
6’* 05/24/99 1 03.9421 5.890(1 
m 11/11/04 1113400 6.650C 
BVi 07/20/00 111^900 7.8200 

5 12/17/98 101.5850 4.9200 
5^4 05/28/99 103.1100 5.5800 
8V; 08/21/00 111.4200 73300 
5ft Oa/20/98 102.0925 5.6300 

6 11/12/03 104.6133 5.7400 
64k 01/20/98 101.2875 65400 
5ft 09/24/98 1010700 5.5100 

7 12/22/97 101.1800 6.9200 
714 10/21/02 110.4200 6.5700 
zero 07/04/27 14.5000 6.6700 

7 11/25/99 10641400 65900 

5 01/14/99 101.6100 4.9200 
534 04/29/99 103.0400 55800 
6ft 02/24/99 104.4000 65900 
6 ft 08/14/9B 102.6300 6.2100 
6ft 06/25/98 102.1250 6.0000 

6 02/20/98 101.2500 5.9300 
6ft 12/02/98 T03.8400 6.6200 
5ft 02/22/99 1025123 55500 

5 V. 10/20/98 101.7800 5.1600 
®ft 07/29/99 104JI300 6.0000 
6 U 02/20/98 1015500 6.1700 

7 01/13/00 106^912 65700 
5ft 0a/15/01 102.8469 54700 
7V. 10/20/97 100.6000 7.2100 
6ft 05/20/98 102.1000 6.2400 
zero 01/16/98 98.7731 3.0900 
zero 01/04/24 18.1000 6.6900 
841 05/22/00 111.4000 7.B500 
9 03/25/04 1045000 8.6100 
Ski. 07/10/07 99.8500 5.7600 

2371 09/30/04 99.1600 2.8900 
6ft 01/20/98 101.2000 63000 

6 V. 06/21/99 105.1852 6^4200 
7 01/05/00 106.1000 6.6000 

7ft 12/20/99 106.5720 6.6900 

Cpn Maturity Price Yield 

South African Rand 

New Supply Casts a Shadow on Bonds 

zero 08/18/27 2.6117 12.9100 

Spanish Peseta 

138 Spain 
193 Spain 

7.90 02/28/02 1095093 72300 
755 03/31/07 1075892 6.8300 

Swedish Krona 

114Sweden 1036 10ft 05/05/00 111.9840 9.1500 
723 Sweden 11 01/21/99 108-OSaO 10.1800 

156 Sweden 1037 8 08/15/07 110.8290 7.2200 

U.S. Dollar 

4 Brazil Cap S.L 4ft 04/15/14 94.4498 4.7600 

6 Argentina par L 5ft 03/31/23 74.3230 7.4000 

13 Mexico lift 0V1S/26 121-4*47 9.4700 

15 Brazil 10ft 05/15/27 993007 101900 

19 Argentina lift .01/30/17 1182344 9.4200 

20 Argentina FRN 6tt (KV29/06 892888 73500 

28 Brazil LFRN 6ft 04/15/06 92.1591 7 .4600 

33 Brazil par Zl 5ft 04/15/24 70.7500 7.4200 

39 Venezuela FRN 6ft 12/18/07 933400 72200 

47 Venezuela par A 6ft OStfl/W 82.4021 8.1900 

58 Brazil SJII FRN 6ft 04/15/24 86.1900 7.9800 

59 Venezuela par B &ft 03/31/20 82.4375 8.1900 

60 Mexico 61A 12/31/19 81.1773 7JD00 

62 Russia 10 06/26/07 103^845 941400 

64 Brazil FRN acy* 01/01/01 99.1543 6JB700 

70 Argentina FRN 67k 03/31/23 90.4520 7.6000 

73 Brazil S.L FRN 6^1*04/15/12 832500 8.3300 

79 Mexico 6ft 12/31/19 81.1B75 77000 

80 Mexico 9ft 01/15/07 107.0000 92300 

81 Brazil 6 09/15/13 795000 7JS00 

82 Brazil S.L FRN 6<Vi* 04/15/09 88.7483 7.8200 

89 Bulgaria FRN *«Vi» 07/28/11 77-4500 B3300 

94 Mexico lift 09/15/16 118.6164 9J900 

97 Mexico B FRN 6.836 12/31/19 97.0067 7.0400 

98 Ecuador par 3ft 02/28/25 53.6667 63200 

99 Bulgaria FRN 61n« 07/28/24 77.9140 85800 

104 ING Bank zero 08/14/98 99.5000 0.5100 

108CIBC FRN 6.10 08/14/12 100.1300 6.0900 

110 Italy 67k 09/27/23 97JJ750 7X1600 

115 Russia 9ft 11/27/01 1 02i250 9.0100 

118 Mexico D FRN 6<Ve 12/28/19 95.0066 7.1700 

119 Ecuador FRN 3U 02/28/15 72.8360 4.4600 

120 Canada 6ft 07/15/02 99.9255 6.1300 

125 Bulgaria 2ft 07/2 an 2 61.5510 3.4400 

13 Mexico 
15 Brazil 
19 Argentina 

Dutch Guilder 

Deutsche Mark 

1 Germany 6 07/0*4)7 102.7646 

2 Germany 6ft 07/04/27 101.8484 

3 Germany 6 01/044)7 102.1500 

5 Bundesoo ligation 4ft 02/22/02 99.3120 

7 Germany 6ft 04/26/06 104.6333 

8 Germany 8 07/23/02 113.4300 

9 Germany 3ft 06/78/99 99-5300 

11 Germany 8 01, -21, TO 112-8500 

12 Germany 7*k 01/03/05 1120700 

14 Germany 94 6ft 01/04/24 99.1756 

16 Treuhand 7i* 12/D2D2 IT 0.9458 

17 Germany 6’i 05/114)5 108.6859 

2) Treuhand 7ft 10/ 01. TO 1114937 

23 Germany 6 01 .054)6 103.2480 

24 Germany 5 0&20.V1 101.7400 

25 Federal Tsy 3ft 03/19/99 99.9000 

26 Treuhand T.i 09/09/04 1 12.6500 

27 Germany 6ft 10/144)5 106.6100 

29 Treuhand 7-* 07/29/03 110.0000 

31 Germany 8ft 12/20/00 11 3J900 

34 Treuhand 6ft 04.73/03 107.1500 

35 Germany 6ft 07/15/03 107 .2400 

36 Germany 6ft 0^15/00 1055200 

38 Germany 5ft 0842AM 103.9200 

40 Germany 8ft 08/20/01 115.0600 

42 Germany 9 lOTCIMO 113.3017 

43 Germany 3ft 09/18-98 99.9900 

46 Germany 6 02/16/06 103.2550 

48 Germany 5 05/21/01 101.6900 

49 Germany 8ft 02/20/01 172.6200 

51 Treuhand 6* 07/09/03 107.7200 

52 Germany Bft 09/20/01 113.0400 

55 Germany 4ft 11/20/01 1006842 

56 Germany 6 (W2Q/16 98.4000 

57 Germany S'& OZ/2I/OI 1014300 

61 Germany 5ft 11/21/00 702.1400 

63 Germany 6ft 04/22/03 108.4000 

65 Germany 57k 05/1 5AW 104.2482 

67 Germany 3ft 12/18/98 99.7300 

68 Germany 6ft 07/15/04 108.4900 

69 Germany 6 09/15/03 104.9725 

71 Treuhond 6ti 06/1 1A>3 108.8557 

72 Treuhand 6ft 05/1 IMW 108.3433 

74 Treuhand 6 Vs 07/01/99 104J700 

32 Netherlands 
53 Netherlands 
87 Netherlands 
92 Netherlands 
106 Netherlands 
121 Netherlands 
126 Netherlands 

131 Netherlands 

132 Netherlands 

136 Netherlands 

1 39 Netherlands 

140 Netherlands 

141 Netherlands 
165 Netherlands 
177 Netherlands 
196 Netherlands 
176 Netherlands 
200 Netherlands 
214 Netherlands 

222 Netherlands 
226 Netherlands 
239 Netherlands 

244 Netherlands 

245 Netherlands 

6ft 07/15/98 
5ft 02/15/07 
713 06/15/99 
BVi 06/15/02 
7ft 01/15/23 
9 01/15/01 

6 01/15/06 
8ft 03/15/01 
5ft 09/15/02 
8ft 06/01/06 
6ft 07/15/98 
Zero 09/30/97 
6ft 10/01/98 
5ft 01/15/04 
6ft 04/15/03 
7ft 04/15/10 

7 06/15/05 
zero 01/15/23 
Bft 02/15/02 

6ft 02/15/99 
zero 10/31/97 
8ft 02/15/07 
7 03/15/99 
7ft 01/15/00 

95 France OAT 
116 France OAT 
12» France OAT 
161 France OAT 
167 France BTAN 
181 France B.TAN. 

208 Britain 

209 France B.TAN. 
237 Spain 

242 France OAT 

5ft 04/25/07 

9ft 04/25/00 
5 03/16/99 
4ft 07/12/02 

7ft 04/25/05 




1 1 3.7500 















Bridge News 

NEW YORK — Prices of U.S. Treas- 
ury bonds and notes are likely to con- 
tinue to bead lower this week, pressured 
by extra supply from the government’s 
sale of two- and five-year notes. 

TheTreasmy will sell SI 5.5 billion of 
two-year notes Tuesday and Si 1.5 bil- 
lion of five-year notes Wednesday, and 
dealers, faced with a limited market for 
the new securities, will probably try to 
keep prices down and yields up through 
the course of the auctions. 

On Friday, the benchmark 30-year 
Treasury bond's yield rose to 6.66. up 
from 6.54 percent a week earlier. 

Recent data suggesting a pick-up in 
economic activity could also weigh on 
the market, analysts said. 

The negative data last week included u 

narrowing in the June trade gap that left 
economists revising upward their second- 
quarter gross domestic product figures. 
Analysts now expect the revised 


second-quarter figures, set for release' 
Thursday, io show growth of 3 3 per- 
cent. up’ from the 2.2 percent gain re- 
ported originally, and some economists 
forecast gains of 4.2 percent. 

Christopher Probyn. senior economist 
at UBS Securities, said the market was 
‘“waking up to the notion that there 
real!)' wasn't much of a pause in the 
spring and we are set for some solid 
growth in the second half of the year." 

Other data scheduled for release this 
week include July durable goods orders 

on Tuesday and the Chicago purchasing 
managers’ August survey on Friday. 

The market expects July durables to 
show little change after the 2.4 percent 
increase for June, and most analysts look 
for little change in the Chicago pur- 
chasers report, which posted a 60.6 per- 
cent reading in July. 

Mr. Probyn is looking for a small rise 
in the Chicago purchasers ’ index, to 6 1 .2 
percent, and said that next week’s num- 
bers "have a bigger potential to scare the 
market than they do to bolster it." 

The other news that troubled traders 
last week was the settlement of the strike 
at United Parcel Service of America Inc. 
With the Teamsters prevailing on many, 
points, the settlement reawakened wor- 
ries that right labor market conditions 
could breed wage inflation. 

79 Mexico 

80 Mexico 

81 Brazil 

99 Bulgaria FRN 
104 ING Bank 

110 Italy 
115 Russia 

While Thinking Small, Think Cheap 

120 Canada 
125 Bulgaria 

French Franc 

164 France BTAN 
169 France OAT 

4ft 04/12/99 101.3800 4.6900 
8ft 11/25/02 117.0200 7.2600 

Japanese Yen 

149 Japan Dw.Bk 6ft 09/20/01 120.5000 

160 NTT 2ft 07/25/07 101.1250 

176 Exlm Bk Japan 2ft 07/28/05 105.7500 

202 World Bank 5V1 03/20/02 11 7.1 474 

203 World Bank 4ft 12/20/04 119.3750 

21 3 World Bank 4ft (W20/03 115.1250 

233 CBA FRN 09/1 9/07 1 08.9500 

234 Soc Gen FRN 09/1 9/07 108.9500 

241 Italy aauB 5 12/15/04 119.1250 

125 Bulgaria 2% 07/28/12 61-5510 3.4400 

1 28 Rn Danish Ind 6ft 06/13/01 100.8750 6 jVW0 

130 Poland FRN 6^ 10/27/24 98.0800 7.0700 

134 Mexico par A 6 14 12/31/19 81.1875 7.7000 

135 Argentina Bft 12/20/03 101.2500 B2700 

137 Mexico C FRN 6.82 12/31/19 94.7500 72000 

143 Belgium 6 05/25/99 100.0000 6.0000 

145 Kellogg 6ft 08/06/01 993547 6.1300 

146 Peru Pdi 4 03/07/17 664617 6.0100 

148Mexica A FRN 6.867 12/31/19 94.8843 7.2400 

151 Mexico pars 6« 12/31/19 81.1793 7.7000 

154 EIB 7ft 09/18/06 104.0030 6.6500 

155 Santander FRN 5ft 08/14/02 99.B786 5.7600 

158 Peru 3ft 03/07/17 60.2300 5.4000 

162 Canada 6ft 08/28/06 101.7545 6.6300 

163 Mexico FRN 7.055 06127/02 100.1900 7.0400 

166Cammerz FRN 5 J94 01/29/01 99.5800 5.6200 

168 Christ Iona Bkfm 5ft 07/1 8AM 99.7800 5.7600 

171 Toyota Motor 6ft 07/224)2 99.6250 67700 

172Mydfd FRN tV* 09/09/07 883967 7^300 

173 Brazil S.L FRN 6'** 04/15/12 83.8171 8.2800 

175 Poland Inter 4 10/27/14 86.0260 4.6500 

J70 Ecuador FRN 6V,» 02/28/25 78.7500 8.1700 

182 Sweden zero 09/04/97 99.7714 5.0400 

183 Argentina 11 10/09/06 114.9616 9.5700 

184 Britain FRN 5.531 10/04/01 99.9600 5-5300 

185Fst Nat Bk Chic 7 05/08/00 101.5000 6.9000 

191 Nigeria 6ft 11/15/20 71.8010 8.7000 

195 Amex Credit 6'/i 08/12/02 995410 65300 

197 IMI Bk Inti FRN 5V» 08/05/02 99.7600 5.7000 

199BeoCom Ext. 7ft 02/02/04 94.0000 7.7100 

204 Argentina FRN 5.711 04/Dl/Dl 129.9000 4.3900 

210 St Chartered fm 6.15 12/31/99 87.6300 7.0200 

21 2 Siberian Oil fm 9ft 08/15/00 100.0000 9.7500 

21 5 Philippines Rx 8ft 10/07/16 100.9445 8.6700 

216Warld Bank 6% 08/21/06 105.0690 6J100 

21 7 Argentina 10.95 11/01/99 108.7500 10.0700 

220 SEK 6.01 06/19/00 99.3750 6.0500 

221 Argentina 8ft 05/09/02 101.6076 8.6100 

225 Parities FRN 5ft 07/09/02 99.9500 53000 

227 Beta Rn 6ft Q4/2H/00 101.2500 65700 

228 BNG 6ft 07/08/02 100.2500 6.3600 

229 Panama 3ft 07/17/14 77.6667 4.B300 

235 Canada FRN SVs 02/10/99 99.8200 5-5100 

236 Brazil Cband S.L 4M 04/1 5/1 4 94.8458 4.7400 

243 BT SBC5 FRN 5.781 08/06/00 99.8000 5.7900 

246 Panama FRN 4 07/17/16 87.7500 45600 

249VenezuefaFRN 6te* 03/31/20 89.9400 75700 

350TMCC 7 06/11/07 102.3313 6.8400 

By Anne Tergsen 

Not Yurk rimes Semce 

NEW YORK — If the stocks of small 
U.S. companies are finally waking up, as 
some analysts said during Wall Street’s 
recent storminess. ir may be a good rime 
to remember — not all stocks are alike. 

There are growth stocks and there are 
value stocks in the small-capitalization 
world, and the common belief that small 
caps have been doing poorly must be 
revised when this distinction is made. 

The growth stocks — those with 
above-average earnings prospects — 
had total annual returns of just under 12 
percent this year through Thursday. But 
the return on the value stocks — those 
that are inexpensive relative to the com- 
pany’s earnings — was 19.8 percent. 

"Value is having a phenomenal 
year." said Claudia Mott, director of 
small-cap research at Prudential Secu- 

Such starkly differing results between 
the rwo sets of srocks — measured by 
looking at the growth and value com- 
ponents of ihe Russell 2000, the bench- 
mark small -cap index — are hardly un- 

Last year, for example, the value 
small caps had a total return of 21.4 
percent, nearly as much as the 22.9 per- 
cent return of the Standard & Poor’s 
500-stock index. In the same period, the 
growth stocks had a tepid gain of II 
percent. But in 1995, the growth stocks 
outperformed the value stocks, 31 per- 
cent to 25. S percent 

The pace of the economy and many 
other factors determine which type of 

small cap excels. But generally, value 
stocks outdo the growth variety when the 
total small-cap market is coot and 
growth beats value in a hot market. 

Thus, in the cool small-cap market of 
1993. value small caps had returns that 
were nearly double those of the growth 
types. But in the hot market of 1991. 

growth stocks outpaced value stocks by 
about 10 percentage points. 

With value stocks ascendant these 
days, what are some favorites of the 


managers who run successful small-cap 
value funds? . . 

William Nasgovitz. who manages the 
Heartland Value Plus fund, likes Con- 
tinental Homes Holding Corp. of Scotts- 
dale. Arizona, which builds homes in the 
South and West. 

"We are making a bet here on interest 
rates/' said Mr. Nasgovitz. whose fund 
has risen 36.9 percent over the last 12 
months. "Our call is that rates are going 
lower.” which would spur home' buy- 

But in case he is wrong about lower 
rates. Mr. Nasgovitz has a'safety net. At 
S22.1S75. Continental's stock is cheap, 
he said. While the stocks of home build- 
ers generally trade at an average of 10 
times earnings. Continental’s sells for a 
multiple of just 5.2, meaning that the 
stock will have to rise about 90 percent 
just to catch up to the industiy average. 
The stock also trades at slightly below its 
book value of S23 a share. 

Quanex, a Houston steel and alumin- 
um mini-mill ihar makes, among other 

things, air-bag canisters, is another good 
bet, said Frame Reichel, whose Stratton 
Small-Cap Yield fund has gained about 
43 percent in the last 12 months. 

With government mandates requiring 
that both from sears be equipped with air 
bags by the 1998 model year, and with 
many new cars now featuring back-seat 
and side bags as well. Quanex 's canister 
business should grow by 50 percent over 
the next three years, he estimated. 

Quanex stock is also cheap. Mr. 
Reichel said. At $3 1.75. it trades at 13.5 
times its earnings per share, compared 
with an average multiple of 24.9 for the 
Russel] 2000 at the end of July. And the 

company, which has annual sales of 
S896 million, is paring its debt and ex- 
panding market share. 

All told, the stock may rise to $45 
within 12 months, Mr. Reichel said, al- 
though he added that if aluminum prices 
rose. Quanex’s fat profit margins might 
be reduced. 

Both Mr. Reichel and Mr. Nasgovitz 
look for bargain -price stocks that pay 
dividends. Gary Haubold, who has 
steered the PBHG Small Cap Value fund 
to a just under 2 i percent return since its 
start in May 1997, is a value investor 
who. on occasion, also buys growth 

He says a great value stock is a cement 
maker. Lone Star Industries of Stam- 
ford, Connecticut. 

Lone S tar stock is trading at $52.25, or 
about 10.2 times its estimated earnings 
per share next year. While that is con- 
sistent with companies that have "me- 
diocre growth prospects,’’ Mr. Haubold 
said the outlook for cemenr is positive. 

Cor.tin'.-.: : 


The Week Ahead; World Economic Calendar, Aug. 25-29 

A setioduM of tins week's economic and financial o vents. comoHad lor the International Hernia TMOuna by Bloomberg Business News. 

Mew International Bond Isswes 

Compiled by Laurence Desvilettes 


Expected Gold Coast, Australia: National 
This Week Stockbrokers Conference. Friday to 


Berlin: Internationale Funkaustel- 
lung International Media Fair. Par- 
ticipants Include Deutsche Telekom, 
Grundig, Mannesmann Mobllfunk 


New York: New York Society of Se- 
curity Analysts sponsor the annual 
"FIM-National Financial Investment 
Management Forum." Participants 

Amount Coup. 

OnfflHons) Mot. % Price 

3hr . 

*te. — . 

and AOL Bertelsmann Online. Thurs- include William Donaldson, presi- 

Monday Hong Kong: Government an- 
Aug, 25 nounces retail sales for June. 

Kuala Lumpur: Padiberas Nasionai 
Bhd. shares begin trading. 

Taipei: Ministry of Finance auctions 
38.04 million shares of Chiao Tung 

Tuesday Hong Kong: Land Department 
Aug. 26 holds government land auction. 

Seoul: Dainong Group's creditor 
banks hold meeting to discuss 
whether to help keep ft afloat; Busi- 
ness leaders and New Korea Party 
discuss policies on conglomerates. 

Wednesday Earnings expected: Slam Cement, 
Aug. 27 GUD Holdings. Pasmlnco, Newcresl 
Mining. Tyndall Australia. Gord- 

Thursday Ta>P®L Government announces 

Aug. 28 new cabinet. 

Bangkok: Bank of Thailand an- 
nounces monthly trade, investment 
and money-market figures. 

Hong Kong: External trade figures 
for July. 

Friday Hon 9 Kon 9 : Government releases 

Aug. 29 half-year economic report and sec- 

ond update of 1997 GDP and price 

Taipei: Acer Inc. holds board meet- 
ing and may announce earnings for 
the six months ended in June. 

day to Sept. 7. 

Paris: Rnal consumer price index 
for July. 

Wiesbaden, Germany: Federal 
Statistics Office to publish prelim- 
inary report on West German con- 
sumer prices in August. 

Copenhagen: Denmark's govern- Limi 
ment publishes draft budget bill for state 
1998. and 

Earnings expected: Brau-Union, New 
Oesterreichische Brau-Beteiligungs. leas' 
Alusuisse-Lonza Holding, Deutsche for A 
Lufthansa, Silkeborg. Jyske Bank. repo 

Frankfurt: International Business Mex 
Journalists Forum of Frankfurt holds stitul 
meeting. Speakers include Bundes- indut 
bank President Hans Tietmeyer. Earn 
Earnings expected: W.H. Smith, Cerv 
Royal Bols Wessanen, Hagemeyer, Can: 
Credit Suisse Group, Tryg-Baltica. 

Bonn: Prime Minister Lionel Jospin Lime 
of France meets with Chancellor Hel- er di: 
mut Kohl of Germany. Was 1 

Voorburg, the Netherlands: Pre- men) 
liminary second-quarter GDP. June nomi 
consumer spending and August con- ter. 
sumer-confidence figures. 

Paris: Industrial production index Ann 
for June: wage figures for July. Mich 
Earnings expected: Royal PTT dex c 
Nederland, Tele Danmark. Telefon- gust. 

dent of the New York Stock Ex- 
change. Wednesday and Thursday. 

Mexico City: Mexico's statistical in- 
stitute releases second-quarter 
gross domestic product in nominal 

Washington: National Association 
of Realtors releases home resales 
for July. 

Lima: Peru government to sell 
state-owned power plants Egasa 
and Egesur. 

New York: Conference Board re- 
leases consumer confidence index 
for August; Commerce Department 
reports July durable goods orders. 

Mexico City: Mexico's statistical in- 
stitute release June's maquiladora 
industry output. 

Earnings expected: Companhia 
Cervejaria Brahma. Royal Bank of 

Floating Rate Notes 

Depfa Bank Europe 
5akura Capital Funding 

Den norske Bonk 

Colisee Nbr 1 

1999 libor 100.055 — intemt will tie me 3-awnfh Llbar. Noncollabl*. Fees 0.1 OV (CommefzbankJ 

pefpt 0.90 100.00 — 

Inicmi Will be 0.W over j-momti ubor until 2001 when issue is callable at par. me rentier 2.40 
afler. Fe«0.75*s. Denominations 110.000 iMerill Lynch inMJ 

DM1,000 2000 libor 99.97 — Interest will be the 3-montti Libar. Nenca liable. Fe«Q.1SV (UBS.) 

2002 — 100.00 — 

Mardon Underwriting Nbrl Y65.000 2004 0.10 100.00 — 

,?fnc 5pl,,ln,o3,,,,,, cfi«. caving 0.45 ro 1.00 ovor3-monlh Pioor. Nonailloble. Fees 0J5 to I 4 *. 

Below 3-monrh Libor. PrNute placement callable at par from 1999. Fees not disclosed. 
DenomlnnKorrs 100 million yen (SanwalntU 


Creqem Finance 

Mendoza Province 


DSL Finance 

Union Bank of Norway 

Bayerlsctie Vereinsbank 

Fannie Mae 


Koram Bank 

2001 6ft 101-52 90.75 Reoffered m 100 . 12 . Noncaiiabi 

2004 6ft 100.667 98. 55 Reoftered at W.O02. Noncatiabli 

2007 TO 99.317 — Nonatllable. Fee5 Tv. (CSF0.I 

Reoffered ot 100. 12. Nenwilobto Fees I In* iBanque Infle a Uncembouifl .1 
Reoffered at W.092. NoncoNabie. Fees I W /HSBC Marleti.1 



2004 lift 100.00 — 

2009 5ft 101.133 99.10 

"2004 5 ft 101.97 99.15 

2003 5ft 101.385 — 

2000 5ft 99.986 99.70 

2007 0.25 100.00 - 

Semin muolly. Private placement callable at 1 05^88 in 200 1 . Fees . I Bear Steams Intu 
Reoffered 01 99.483. Nanailloble. Fees 2*,. (Credit Agrtcole.) 

Renffered at 9967. Noncalhble. Few 2 V*. (Bayerfeche LandesbanD 

PeoHerod at w 835 Noncollablc. Fees IV, (Morgan Sianley InHJ 
Sennannugny. Noreallnbic. Few 0.1 F =. (MeuHl Lynch Inti.) 

Last Week's Markets Euromarts 

Lima: Peru to sell state-owned pow- 
er distributor Electro Centro. 
Washington: Commerce Depart- 
ment reports second estimate of eco- 
nomic growth for the second quar- 

Ann Arbor, Michigan: University of 
Michigan is scheduled to release in- 
dex of consumer sentiment for Au- 

Stock Indexes 

United States 
dj Indus. 

□J UN. 

DJ Trans. 
s & P Ira 
Nasdaq lp 
J apan 
Nikkei 225 
Bn torn 



Yit: indm. 



4.9QI 10 4 BAS 88 

6.70980 4696.00 

2,904.23 2. 921,04 

Money Rates 

Prime rale 
Federal funds rate 

Cali money 
3 month interbank 


Bank txrec rate 
CoU money 
3-monlfi interbank 

Intervention rale 
Call money 

ica de Espana. 

Ottawa: Second-quarter GDP, sec- 
ond-quarter current-account balance 
and June GDP reports. 


DAX 4084 01 4152.86 — 1A1 

Horn Kong 

Htmq Seng 11429.75 16.906,88 —174 


MSCfP 950.91 95116 -0.03 

Aorlti indev fn>ii Montm Stanley Capital inti 

Eurobond Yields 

Ail* JJ Aug. IJVr htgn 

US l ton* 1 term ij3 na 700 

u J S. Htdm term *J1 - <j 8 j 

US >. ri-mi i. ]& ... 

PourKK :>oilin.| 74; _ iil 

French tram 4.03 _ 

Italian lire _ 5-® 

^kroner 5 ^ __ J93 

Swedish kronor S32 _ s ai 

ECUl lonq fern, 
ei. Us. ittdni tenn 5 33 — 

Saanic Lt-wnbae* noA enchange 

Weekly Sales 

Primory Martref 

~ Erocteer 

«. . , * Nons ft Nuns 

lift* ,3 3i l -«H 1 

ECP 9.170J 1S96J HL51 Jfl 10.8947 
rolal 9,7652 9,904.) 11 , 968.8 13 , 340.9 
Sc-tondary Market 

Straights 21094.7 14743.ri05JS6.6 9 
'-orwert. 1327 J VXJ 4341 7 7 Si-f 


Tolal 71464^ 3a925.n7a919.0 51i34aj 
Savrce. Eurvdear. Ccttel Bank. 

Cat! money 3.15 

3-mantti intcnrank 3I3B 

^213 Aw. 2? Altq. IS 

London p m itx.S 334.00 3J JJl5 


Libor Rates 

US s 3 :. ,,, 

Deohchemotv n,, 

Poond sferliiKj / 1 „ j.,, 

towes- Ltityas Bank, Review 

t-mwilh a.njqottt intent!) 

J]® S”" French franc 


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j J A 1 ** \ 


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uumMLiwcM SEmrt*BER n. «« 


" Ju ' ,s u% 

"" "" Bond, 

hunk (hem 

Kia Directors Resign 
En Masse in Attempt 
To Placate Creditors 

Agence France-Presse 

SEOUL — Tlie ailing South 
Korean automaker Kia Group ear- 
ned out a sweeping reduction in 
management Sunday to pave the 
way for the early implementation of 
loans by creditor banks that are vital 
to its survtvai- 

Hang Sung Joan, vice chairman 
of Kia Motors Corp., and 83 di- 
rectors of other subsidiaries 

resigned en masse, a Kia spokesman 


‘ ‘It was a courageous decision by 

CCT Telecom 
Sets Stock Sale 
To Its Holders 

Bloomberg News 

com Holdings Ltd., a Hong 
Kong company that makes tele- 
phone equipment, said Sunday 
that it planned to raise 2 billion 
Hong Kong dollars ($258 mil- 
lion) selling new stock to its 
shareholders to expand sales in 
China and make . mobile 

The transaction, which will 
raise CCT’s market valne by 
one-third, could send its stock 
soaring Monday, analysts said. 
News about similar plans by 
other companies to expand in 
China, such as Hong Kong 
Telecommunications Ltd., 
have sent stock prices np. 

Investors are being offered 
the stock at just over a third of 
its market price. The sale will 
double the number of shares 
outstanding in CCT Telecom. 

The company plans to sell at 
least 2.005,510,000 new shares 
for 1 dollar each, giving in- 
vestors the right to boy one new 
one for every one they own 
now, it said in a news release. 

In doing so, it is taking ad- 
vantage of a rise in its stock 
price Id 2.85 dollars a share by 
the end of last week from 80 
Hong Kong cents a month ago. 

CCT did not say when the 
sale would take place or when 
investors would have to buy 
existing stock to apply for the 
new stock. 


Taiwan Clings to Old Label 

Officials Reject Economy’s Promotion to ‘Advanced’ 

PAGE 13 


directors to save the group,” he 

But the group chairman, Kim 
Sang Hong, was not affected bv 
Sunday’s shuffle, which came 
ahead of a meeting of top economic 
officials Monday to discuss a rescue 
package for troubled banks and cor- 
porations, the spokesman said. 

Creditors have refused to extend 
- lifeline loans to Kia, the country's 
eight-largest conglomerate, until the 
chairman and other top directors 

With the resignations Sunday, 
Kia has lost nearly one third of its 
340 directors since banks put the 
group under a special program to 
prevent its insolvency. 

.“The group will struggle hard to 
slim down through manpower cuts 
and restructuring,” the spokesman 
said. But he added the group's staff 
would remain firmly united around 
Mr. Kim. 

The prolonged tug-of-war be- 
tween Mr. Kim and creditors has 
salt a dozen of Kia’s main sub- 
contractors out of business and hun- 
dreds of others to the brink of bank- 

■ Seoul Readies Bank Rescue 

South Korea’s economic czar, 
Kang Kyong Shik, and his staff 
rushed Sunday to work out a com- 
prehensive rescue package aimp-d at 
stabilizing the country's volatile fi- 
nancial sector, Agence France- 
Presse reported from Seoul. 

Soon after his return from a trip to 
China on Sunday, Mr. Kang, bead of 
the powerful finance and economy 
ministry, held a staff conference to 
discuss the package, which will be 
announced on Monday. Yonhap 
News Agency said. 

Ministry officials said earlier the 
package would contain government 
steps to shore up the international 
credit standings of South Korean 
financial institutions. 

The chiefs of South Korea's 30 
investment banks urged the gov- 
ernment to extend financial aid at an 
emergency meeting that was held 
last week. They issued warnings that 
they were close to bankruptcy be- 
cause of serious liquidity short- 

The financial crunch has been 
created by a series of corporate in- 
solvencies that left many banking 
institntioas, including die Korea 
First Bank, exposed to huge 
amounts of bad loans. 


TAIPEI — Despite their coun- 
try’s status as the world's tfiird- 
largest producer of computer 
goods and holder of the third - 
biggest foreign exchange reserves, 
officials of Taiwan are cautiously 
rejecting the label of “advanced” 

The International Monetary 
Fund recently reclassified Taiwan, 
Singapore, South Korea, Israel and 
Hong Kong into a new enlarged 
grouping of industrialized nations 
called “advanced economies.” 

Alter Singapore swiftly said it 
was not qualified, analysts and of- 
ficials in Taiwan also said it was 
not ready. 

“We are still not a developed 
country, either in terms of pa cap- 
ita gross national product or levels 
of liberalization or international- 
ization,” Economics Minister 
Wang Chih-kang said in a recent 

Joining the rank of developed 
economies would mean losing 
some privileges and shouldering 
more international obligations, 
analysts said. 

“Taiwan, like Singapore, prob- 
ably would not want to be billed as 

a developed economy,” said se- 
nior economist Wu Hui-lin of the 
Chunghua Institution for Econom- 
ic Research, an independent con- 
sulting group. “Once you are in 
the. rank, you have to bear more 
international responsibility and 
can no longer enjoy some pref- 
erential treatment. 

Taiwan's pa-capita gross na- 
tional product, a standard measure 
of the value of goods produced by 
a counny, stood at $12,396 in 
1995, compared with die United 
States’ $27,551, Singapore’s 
$28,666, and Japan’s $37,048. 

Taiwan’s 1996 pa-capita GNP 
was $12,872 in 1996, and was ex- 
pected to rise slightly in 1997, of- 
ficials said. 

Mr. Wang said that in three 
years, Taiwan should achieve a 
pa-capita GNP of $19,000 in 
2000, a level that is more de- 
serving of an industrialized label. 

“We hope to become a de- 
veloped country in the year 2000,’ ’ 
he said. 

Officials say Taiwan's annual 
gross domestic product, another 
measure of output, is at the level of 
growth associated with developing 
economies. Its 1997 GDP is pro- 

jected at just ova 6 percent. 

Advanced economies have a rel- 
atively small GDP growth rate — 
on average 2.3 pacent in 1996. 

But some economists argue that 
Taiwan's output puts it in a higher 

The island's information in- 
dustry production — including 
computer hardware, software and 
peripherals — was $24.17 billion 
in 1996, up 28.1 percent from a 
year earlier and trailing only 
United States and Japan. 

Despite its achievements. 
Taiwan still has a lot of catching up 
to do. Mr. Wu said. 

“Taiwan lags far behind in liv- 
ing quality, people’s attitude to- 
ward each other, democratic re- 
cognition and self-discipline,” he 

The level' of market liberaliz- 
ation should also be taken into 
consideration, analysts said. 

Taiwan has started to make its 
markets more free in the past few 
years in a bid to enter the World 
Trade Organization. 

“If Taiwan enters the WTO, 
you may then say it has started to 
step into the ‘developed economy' 
ring,” Mr. Wu said. 

Murdoch’s JSkyB Set to Join Rival 

Bloomberg News 

TOKYO — Japan Sky Broad- 
casting Co., Rupert Murdoch’s 
fledgling Japanese satellite venture, 
will join forces with its rival, Per- 
fecTV, in the battle to hook up Ja- 
pan’s SO million households to mul- 
tichannel broadcasts, a JSkyB 
executive said Sunday. 

The tie-up between JSkyB and 
PerfecTV will boost their position 
against a third multichannel com- 
petitor, DirecTV Japan Inc., the 

JSkyB executive said. At this stage, 
however, he ruled out a merger. 

The pact will mean viewers could 
use a single receiver, antenna, and 
integrated circuit card containing 
subscribers' contract information to 
receive a total of 250 channels from 
both broadcasters. 

“By using the same platform, we 
can save on infrastructure costs, put 
more money into the content of our 
service, and Iowa fees to viewers.” 
said the JSkyB executive, who 

Dresdner Seeks to Buy U.S. Bank 

Bloomberg News 

FRANKFURT — Dresdner Bank 
AG. Germany's second-biggest 
bank, confirmed that it is looking to 
acquire a Wall Street investment 
bank to revive its flagging securities 
business following weeks of spec- 
ulation about such a bid. 

“We would like a bank based in 
New York with a regional char- 
acter,” a Dresdner spokesman. 

Lothar Gries, said Saturday. “The 
problem is the banks that we are 
interested in at the moment are not 
for sale.” 

Mr. Gries said that Dresdner was 
unlikely to succeed in its quest in the 
next month, in part because the cap- 
ital increase slated to expand its 
available resources has not yet 
flowed into the bank’s coffers. 

“There are no concrete plans and 

no concrete negotiations at 
present,” Mr. Gries said. “We want 
to strengthen our presence in the 
U.S. and we're keeping our eyes 
open. ” Dresdner joins a list of banks 
that want to own U.S. brokers. 

The two most likely takeover can- 
didates for Dresdner are Bear Ste- 
ams & Co. and Lehman Brothers 
Inc., the daily Frankfurter Allge- 
meine Zeitung reported. 

asked not to be named. 

JSkyB, slated to begin a 150- 
channel service in April, will be the 
last of the three to start broadcasting 
in Japan. 

The venture is owned by four 
main partners — Mr. Murdoch's 
News Corp-. Sony Cop., Fuji Tele- 
vision Network Inc. and Softbank 
Corp., a publishing and software 
producer. A spokesman for Fuji TV, 
who asked not to be identified, also 
confirmed the tie-up. 

Meyer Issues Warning Over EMU 

FRANKFURT (Bridge News) — The Swiss National Bank 
president, Hans Meyer, has said that European Monetary 
Union could lead to foreign exchange market turbulence if the 
“stability environment” is not right. 

In a summary of remarks made in an interview with a 
regional German radio program, Mr. Meyer added that EMU 
is ‘ ‘not mandatory. It is — if you wish — nice to have, but you 
don’t need to have it." 

“Stable currency relations between the most important 
countries” must be the primary goal. Thus, a common Euro- 
pean currency was not decisive, Mr. Meyer said. It was highly 
unlikely thai Switzerland would give up its currency to join 
EMU, he added. 

Nickel Miners Vote on New Contract 

SUDBURY, Ontario (Bloomberg) — Falconbridge Ltd. 
and its 1,450 nickel miners in Sudbury have reached a 
tentative agreement to end a strike that has closed the mine for 
three weeks. 

of the agreement were not released. 

Workers from the local union were voting on the contract 

The mine workers were expected to return to work Monday 
if the agreement is ratified, the union said. Hie strike started on 
Aug. l. 

Opel Plans Luxury Car by 2000 

BONN (Reuters) — Adam Opel AG, the German unit of 
U.S. carmaker General Motors, plans to enta the luxury car 
market by 2000 and compete with the current leaders of the 
premium car market, BMW and Daimler-Benz. 

Opel's management board member, Peter Hanenberger, 
said, “We are looking at all kinds of options — six and eight 
cylinder aggregates with a three-liter capacity, both gasoline 
and diesel engines.” 

Opel plans to improve its product offering with better fining 
and superior technology, Mr. Hanenberger, who is responsible 
for technology on the Opel board, said, adding that Opel 
intended to offer a total range of “niche products from sporty 
to elegant” 

Israel Chemicals Says Net Up 23% 

TEL AVTV (Bloomberg) — Israel Chemicals Ltd. reported 
that second-quarter net income jumped 23 percent as it sold 
more products with wider profit margins. 

Second-quarter net reached $30.6 million, or 2.5 cents a 
share, from $24.8 million, or 2.1 cents, in the year-earlier 
period. Sales climbed 3.7 percent to $428.2 million from 
$413.1 million. 

The improvement stemmed from sales of more profitable 
products and “the results of a stre amlinin g that the company 
undertook,” Chief Executive Igal Diamant said in a state- 

It’s No Lie: Apples to Sell Video 

LOS ANGELES (Bloomberg) — Seagram Co.’s Universal 
Studios Home Video said it will put stickers on 12 million 
apples in New York and Los Angeles to promote the video 
release of its movie “Liar, Liar,” starring Jim Carrey. 

A sticka, with a rendering of the box the movie will be sold 
in, will be applied on Granny Smith, Gala and Fuji apples as 
part of the promotion scheduled for Sept 30, the day the home 
video is released. 

For the Record 

Dimension Data Australia Ply. Ltd., a network com- 
munications company, has launched a takeover bid for Data- 
eraft Ltd. 

Israel's unemployment rate rose to 7.6 percent in die 
second quarter, the highest level since December 1994, the 
Central Bureau of Statistics said. (Bloomberg) 

DEGADEt^re There Lessons to Be Learned From the Trajectory of a Bull Market a Decade Ago? 

Continued from Page 11 

interest rates in the summer of 
1987, even without any ex- 
plicit action by the Federal 
Reserve Board. 

That reversed what had 
been an extended period of 
rate declines that unwound the 
high interest rates engineered 
in the early 1980s by foe Fed’s 
chairman, Paul Voicker, to 
squelch rampant inflation. 

From January through July 
1986, the Fed made three cuts 
in the discount rate, the rate at 
v which member banks borrow 
© money from the Fed. Long- 
tom rates fell along with the 
short-teim rates, to about 7-5 
percent from 10.5 percent a 
year earlier. As rates came 
down, so did commodity 
prices; in July 1986, at the 
time of the third rate cut, the 
price of a barrel of crude oil 
stood at $9.74. 

In August 1 986. the Ffed cut 
short-term borrowing costs, 
trimming half a percentage 
point from the discount rate, 
to 5.5 percent. 

Mr. Angell, the forma Fed 
board member, now says that 
was a mistake. . 

“Paul Voicker and I both 
dft agreed afterwards that was the 
▼ one we shouldn't have made, 
he said. Soon, the prices of 

precious metals started to rise, 

followed by the prices of other 
commodities later in the year. 

Those price gains were 
largely ignored by Fed watch- 
ers, who, drawing on their ex- 
perience of the early 1980s, 
saw monetary aggregates 
Ml, M2 and other money-sup- 
ply statistics — as the most 
■ important indicators of eco- 
nomic direction. By the tune 
Federal Reserve poficymakers 
agreed that inflation was 
ing up again, “we werebehuid 
the curve,” Mr. Angell said. 

Had the Fed bumped rates 
up closer to 7 percent in the 
Aj first quarter of 1987, ij^gh 1 
r have orchestrated a soft land- 

ing of the economy and 
avoided the market turmoil to 
come, he said. Instead, its in- 
action was compounded by a 
surprise move in early June 
by the Reagan White House: 
the decision not to reappoint 
Mr. Voicker as Fed chairman 
and to name Mr. Greenspan 
— the forma chief economic 
advisa to President Gerald 
Ford but mostly an unknown 
quantity as a monetary poli- 
cymaker — to the post in- 

Mr. Greenspan took office 
in mid-August and the Fed 
finally raised rates Sept. 4, but 
by then world markets bad 
lost confidence in its resolve. 
“I think there was a question 
about the Federal Reserve's 
credibility,” Mr. Angell said. 
‘ ‘The 30-year bond would not 
have been able to rise well 
above 10 pacent without 
some people making pretty 
heavy . bets that monetary 
policy would not be able to 
bring inflati on down.” 

Stock prices had already 
started to slip further in early 
October, as the Federal funds 
rate — die rare banks charge 
each other for overnight loans 
— rose a quarter-point and the 
yield on long-term Treasuries 
rose above 10 percent for the 
first time in two years. 

Today, the monetary picture 
could not be more different. 
Mr. Greenspan, confirmed to a 
third four-year term last year 
by an adulatory Senate, reigns 
as the inflation-slaying idol of 
die financial markets. While 
some people worry that he is 
not keeping the credit reins 
quite tight enough, most ex- 
pect him to work them with 
just the right finesse. 

The discount rate is at 5 
percent, the same as it was a 
year ago, while in the same 
period short-term Treasury 
bills have hovered at just ova 
5 percent and 30-year bonds 
have eased to 6.65 percent 
from 6.79 percent And 

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nobody pays attention to Ml 
or M2 anymore. 

“I’m not suggesting that 
tiie Federal Reserve is that 
much smarter today than in 
1987,” Mr. Angell said ‘ ‘But 
I feel confident that the Fed- 
eral Reserve has a lot of cred- 
ibility. As a result there is 
little likelihood that the Fed 
will have to raise interest rates 
a whole bunch or make a 
whole series of increases.” 

He expects the federal funds 
rate, now at 5.5 percent to end 
the year at 5.75 percent. 

The confusion surrounding 
U.S. monetary policy in 1987 
was not limited to interest 
rates. Nobody could figure 
out the federal government’s 
stance toward the dollar. 

The dollar’s strength, or 
weakness, exerts a huge in- 
fluence over the U.S. econ- 
omy. A strong dollar makes 
U.S. goods more expensive 
■ overseas, and thus tends to 
widen the country's chronic 
trade deficit 

A weak dollar, on the other 
hand, makes imports more 
expensive, and thus can be 
inflationary. One of die main 

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tools for modifying the dol- 
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it has risen about 22 pacent 
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PAGE 16 



Vialli Starts for Chelsea 
And Finishes Barnsley 


Gianluca VialU scored four goals 
Sunday as Chelsea won. 6-0, at Barnsley 
in England's Premier League. 

Vialli was often on the bench last 
season, but on Sunday, Chelsea coach 
Ruud Gullit picked the Italian ahead of 
Mark Hughes and the London team 

in the match to give Blackburn Rovers, 
the Premier League leader, a I- 1 draw at 
home with Liverpool. Michael Owen, 
17, had run half the length of the field to 
give Liverpool the lead. 

Arsenal won, 3 - 1 . at Southampton, 
nrr Overman scored the first after a 

European Soccer 

outclassed the newly promoted York- 
shire club to record its best-ever away 

victory in the top division. 

Barnsley made most of the early run- 
ning but fell behind in the 25lh minute 
when Dan Petrescu, a Romanian, scored 
on ball cleaned by a weak defensive 

Gustavo Poyet struck in the 38th 
minute when he was left unguarded close 
to the goal. Dave Watson, the Barnsley 
goalie, parried Foyer's header but he 
scrambled the loose bail across the line. 

A minute before halftime, Petrescu 

S ed a pass Into the path of Vialli who 
ed the ball past Watson. Vialli 
headed the fourth goal in the 57th minute 
after Watson bad saved the initial shot. 

Vialli completed his hat trick eight 
minutes later, scoring on a neat pass by 
Dennis Wise. Vialli’s fourth came 10 
minutes from the end of regulation time 
when he pounced on a loose ball and 
blasted a left foot shot into the net. 

Another Italian, Paolo Di Canio, 
scored his first for Sheffield Wednesday 
in a 1-1 draw Saturday at Wimbledon 
and a third Italian. Attllio Lombardo, 
scored his second since joining Crystal 
Palace as it won, 2-0, at Leeds United. 
Martin Dahlin. a Swede, scored late 

Marc Overmars scored the first after a 
tricky run and Dennis Bergkamp struck 
two dazzling goals in die second half, 

Arsenal is even on points with Black- 
bum as are Manchester United and 
Leicester, which chew. 0-0, ar Leicester. 

Newcastle beat Aston Villa, 1-0, in 
spite of playing for most of the second 
half without David Batty, who was ejec- 
ted after a wild tackle on Steve Staunton. 
John Beiesford scored Newcastle's goal 
with a ferocious shot after 13 minutes. 
Newcastle has won both its games; Villa 
has played three and lost them all. 

Scotland Marco Negri scored all 
five points as the Rangers beat Dundee 
United, 5-1, in the Premier Division. 

In the third division, Albion Rovers, 
who led 1-0 after 56 minutes, had four 
playera ejected in a 20-minute span dur- 
ing the second half against Queens Park 
and lost, 5-1. 

GERMANY Bayern Munich, the reign- 
ing champion, climbed to third place in 
the Bonaesliga on Sunday with a 2-0 
victory in Hamburg. Mario Basler 
scored in the 23d minute when the care- 
less Hamburg defense left him open in 
front of the goal. Alexander Zickler 
scored the other goal in the 8 2d minute. 
Hamburg remains winless this season. 

On Saturday, on a high-scoring day in 
the Bundesliga, newly promoted Kais- 
erslautern crushed Schalke, the UEFA 
Cup holder. 3-0, to take a three-point 
lead over Borussia Dortmund at the top 

Cape Town Sets Sights 
On the 2004 Olympics 

II 0 ,M 

» 1,n 

Mandela Promises State Support 

By Lynne Duke 

Washington Past Service 

' * . ** + \ 

I; T"‘ -• • •• ,, i _ ^ ^ y 

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Key NirtliehVAgmce ftwc - Pw 

Ruggerio RizziteUi of Bayern Munich, left, shooting Sunday despite the 
attempted tackle by the grounded Hasan Salihamidzic of Hamburg. 

of the league. 

Dortmund thrashed Bochum, 5-2. 
VfB Stuttgart, Hansa Rostock, Karls- 
ruhe and Wolfsburg are all even with 

Bayer Leverkusen, last year's runner- 
up, demolished Karlsruhe, 6- 1 , to climb 
to seventh in the standings among 18 
teams strong table, one point behind 
Dortmund. Ulf Kirsten scored twice in 

the victory. 

Borussia Moenchengladbach, with- 
out a victory in its first three matches, 
won, 4- 1, at home over Cologne. Co- 
logne had lost to amateurs SSV Ulm in 
the German Cup the previous weekend 
and is 14th. Things are worse for Wer- 
der Bremen, which stayed at the bottom 
of the rankings after a 3-0 loss to Annin- 
ia Bielefeld. (AP, Reuters ) 

It’s Only a Tiny Urn of Ashes 
But Aussies Want It at Home 


LONDON — Australia has again 
won the Ashes from England. Now it 
wants to take them home. 

The Australian Cricket Board is to 
ask England to hand over the historic 
Ashes trophy, Australian media report- 
ed Sunday. 

The Sun-Herald said an ACB meet- 
ing in Melbourne on Friday resolved to 
write to English officials requesting 
that the tiny urn be handed over. 

Although Australia has held the 
Ashes for the past eight years, the 
trophy has always remained in Lon- 

“We respect that ownership is own- 
ership and we would never argue that it 
belonged to us.’ ' said Denis Rogers, the 
ACB chairman. “It might add a new 
dimension to the Ashes series by hav- 

ing the urn move back and forth when it 
changes hands.** 

The legend of the Ashes began in 
1882, when the Sporting Times ran a 
mock obituary to English cricket after 
the national team had been beaten by a 
team from Australia. 

Later that year, Jvo Biigh took a team 
to Australia, promising to bring back 
the “Ashes of English cricket'* He 
fulfilled his goal and was later presen- 
ted with a small pottery urn containing 
the ashes of a wooden cricket baiL 

The urn remained in Bligh's keeping 
until his death in 1927, when his widow 
presented it to the MCC. It has since 
remained in the Memorial Gallery at 

On Saturday, England snatched a 
dramatic 19-run victory over Australia 
as Andy Caddick and Phil Tuftiell 

C APE TOWN — South Africa is 
emerging from decades as a pari- 
sh state, its political system 
transformed and its president respected 
around the world as a symbol of re- 

Cape Town already Is a magnet for 
tourists drawn to its scenic blend of 
Africa and Europe, so its bid for the 
2004 Olympics has great symbolic ap- 

Africa has never hosted the Games, 
and South Africa is pushing the Cape 
Town bid as a chance for the Olympic 
movement to fulfill a global mission. 

But Zolile Feni wants to know what’s 
in it for him. He lives in Khayelitsha, a 
sprawling shack community 12 miles 
(20 kilometers) outside the city center, 
where a sports, community and com- 
mercial hub is under construction, in- ' 
eluding an Olympic boxing venue, one 
of three snch Olympic development for- 
ays into poor areas. 

Jobs are promised, but Mr. Feni is 

Mr. Feni is chairman of the Khayel- 
itsha Development Forum. He called 
the sports development “just a sugar- 
eoaied bitter pill. It’s not going to serve 
the purpose it is being constructed 

Whether Cape Town’s development 
will be pur into service for the 2004 
Olympics will be known on Sept. 5, 
when the International Olympic Com- 
mittee chooses a host city from among 
five finalists — Cape Town, Athens, 
Buenos Aires, Rome and Stockholm. 

Although Cape Town’s bid has great 
symbolism and has drawn praise for its 

product by nearly a percentage point 
due to a rise in tourism and infrastruc- 
ture base and would create 90,000 per- 
manent jobs. . 

Cape Town’s bid is detailed and tech- 
nology-driven, going beyond what was 
requested by the IOC. This is part of the 
African strategy — to overcome ex- 

Y - - 

■i r :v % 

iS?sV‘- ' 

said J3 “‘ 

technical planning, there are questions 
— not about whether South Africa can 

Vlriui Ifcnii-TV V—vM Prr— 

Australia's cricket captain, Mark Taylor, showing off the Ashes trophy. 

shared nine wickets in a gripping cli- 
max to the sixth and final test at The 

Oval in south London. 

Caddick, a fast bowler, captured five 
for 42 and TufnelL a left-arm spin 
bowler, took four for 27 to dismiss 

Australia, which needed 124 runs to 
win, for 104. 

England won the test in three days to 
salvage some pride but Australia had 
already retained the Ashes and took the 
series, 3-2. 

— not about whether South Africa can 
do it but whether it should even be 

With an overburdened government 
just three years removed from white 
minority’ rule. South Africa faces deep 
backlogs in the realm of human needs, 
and the Olympics, some analysts say, 
hold severe economic and social risks. 

But President Nelson Mandela, the 
nation’ s most powerful voice in favor of 
the Olympic bid, has thrown the full 
weight of his government behind it He 
even has issued a governmental guar- 
antee to cover any Olympic debt 

The Mandela government says Cape 
Town would be able to provide a so- 
phisticated. well-run Olympic Games 
that will be a huge marketing event for 
this emerging economy, while still ful- 
filling some of- the nation's deep de- 
velopmental and economic growth 

The Development Bank of Southern 
Africa has projected dial the Games 
would boost the nation's gross domestic 

peeled skepticism. 

“There was going to be an assump- 
tion that this wasn't a good bid because 
it's out of Africa,’’ said Chris Ball, a 
banker who is chief executive of the 
Cape Town Olympic Bid Co. , 

“This is not a leap of faith. This is 
simple, hard-nosed planning.^Tfris is 
economics. This is a self- fulfilling 
prophecy. The question is: How can you 

say 00 ?" „ . . , 

Under apartheid. South Africa s 
white-minority system of racial sepa- 
ration, the IOC was among the earliest 
international bodies to punish the nation 
for its policies, which did not allow 
blacks to participate in international 
sports and segregated athletes by race in 
domestic competition. 

The IOC banned South Africa from 
the Olympics for 32 years, allowing the 
nation back into the Olympic fold in 

Now, Mr. Mandela believes his na- 
tion's efforts to overcome its history 
should be rewarded. 

“We have achieved what is regarded 
by the world as a miracle by bringing 
about a peaceful transformation,’' Mr. 
Mandela told a visiting IOC delegation 
last week. “We are now building a new 
nation, and it is the duty of the in- 
ternational community to assist os.” 

Like Sydney, site of the 2000 
Olympics. Cape Town's plan is for a 
games far s miller than the sprawling 
1996 Games in Atlanta, with visitors on 
any given day not to exceed 400,000. 
Cape Town gets about that many vis- 
itors during its peak tourist season in 

The main Olympic Park, including 
the Olympic Village and Olympic sta- 
dium, would be six miles from the city 
center on land now occupied by a naval 
supply depot, with two existing com- 
muter rail stationsfive minutes away. At 
the other end of the Olympic corridor, . 
the other main venue, the indoor- ex- 
hibition halt is closer to the city center 
-and walking distance from the media 
village and an international broadcast 

Cape Town would require 38 venues 
to host the Games, about half of which 
already exist. Every potential venue is 
within 1 0 minutes of a rail station. 

In a city that already has the highest 
concentration of hotels in the country, 
there are 42 more under construction. In 
addition, 17 luxury cruise liners would 
be berthed in Cape Town harbor to 
accommodate thousands more. 

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Major League Standings 

New York 



W L Pd. SB 

B « ASI - 

77 51 M2 & 

64 66 M2 20 
62 66 .484 31 

60 68 449 23 















5 'ft 

Kansas City 





























21 M 







New Yort 
Pitta ddphla 

80 49 jUH - 
71 S3 S3 S 

n at S47 n 

63 64 496 16 

SL Louis 


45 79 363 32W 


68 61 .527 — 

65 64 .504 3 

50 69 461 86 
55 71 437 11’/: 

Chicago 51 7B J95 17 


Los Angeles 71 58 550 — 

San Francisco 71 58 560 — 

Colorado 62 67 481 o 

San Diego «l 66 >173 Id 



Minnesota 000 010 000-1 5 1 

Baltimore 300 000 OOx-3 5 0 

Tewksbury. Swindell (81 and Stembadu 
Erickson, Ra -Myers (9) and Webster. 
W — Erickson 15-5. L— Tewksbury 4-10. 
Sv— RaMyerc (391. HR— Minnesota 

Lawton 19). 

Toronto 100 000 030—5 10 2 

Kansas City 000 000 030-3 8 9 

Clemens. QuantrW IB). Escobar (91 and 

OB riot Rosa da Olson (B) and Mi .Sweeney. 
W-CJemens 20ft L— -Rosado 8-10. 
Sv — Escobar (10). HRs— Toronto. Cruz if 
(18). Carter (19). 

Detroit 109 831 1180-16 23 1 

Mawaokm 000 001 000-1 S 1 
Moehler. M. Myere (6], Gofflard (7) and 
Watbedu Woodard Adamson 15). Davis (6), 
A. Reyes 17} and Mortuary. Levis (9). 
W— Moehler 6-9. L— Woodartt 3-2. 
5v— Goiltonl (l>. HRs— Detroit. Hamefin 
(16). Nieves (18). 

Chicago 200 004 110-8 9 1 

Texes 155 101 Mx— 17 20 4 

Navarra J. Darwin (4). McElroy (6) and 
Kartrovtas D.Othier, Whfleskte (7) and 
1 -Rodriguez. W— D. Oliver, 10-10. 
L— Navarra 9-12. HRs-CNcoga Beta 2 
(26), Kariwvtce (5). Texas, Groer 2 CM). 

New Yarik 002 000 210-5 7 I 

Sealtfe 390 310 ZtU—9 14 1 

KaRagera Baehrtnger (41. Ltayd (7) and 
Girorrife Fassern, Ayala 081 and Marram. 
W— fassero. 13-7. L— Kn. Rogers. 5-5. 
HRs— New York. Jeter (8J, Be. Williams 07). 
Seattle. A. Rodnguez 120), Sorrento (24). 
Boston 102 000 101—5 10 1 

Anabeim 490 013 00*— 8 10 1 

Sabeihagen. B. Henry (5), Hudson (6), 
Mahay (8) and Hasetman Haltebetg (7); 
Watsorv P.Hanis (7). Holtz 171. Pefav-al (9) 
and Kieuter. W— Watson, 11-7. 

L— Sobertiogea 0-1. Sv— Perdval 01). 

HRs— Boston Go rcio pa no 2 (23), M. 
Vaughn 128). 

Cleveland 020 020 091—5 12 1 

OaUand 000 010 020-3 6 0 

Jr.Wright Jamme (7). Plunk (8i. 

Assenmacher (9). Mesa (9) and SJMamau 
Prieta D. Johnson (7). MahJer (8). Taylor (9) 
and Moyne. W— Jr.Wright 4-2. L— Prieta 6- 
8. Sv— Mesa 18). HRs— Cleveland, Ramirez 
(22), Justice 126). Oakland Stain (21). 

Montreal 000 000 010—1 5 1 

Chicago 000 000 Zlx— 3 5 0 

Hermansnn, Kline (7). Bennett (7), M. 
Values (B) and Widget; TmdtseL PiscioKa 
(HI, Patterson (93. T. Adams (91 and Servais. 
W— ' Trachsel 6-10. L— Kline 0-2. Sv— T. 
Adams (12). HRs— Montreal Strange (8). 
Chicago. Sosa (28)- 

San Francisco 000 ooo 200-2 8 l 

Pittsburgh 200 010 Ota— 3 6 I 

Ruetet D. Henry 17) and BJohnsatv 

Cooke. Chftsflonsen (7), Rincon (7), Lotoeile 
(91 and KendalL W— Cooke 9-11 1 — Rueter 
9-6. Sv— Lofceile (22). HRs-Pttts burgh. M. 
Smdh (6). E.WHUams (3). 

Los Angeles HO IN 004-5 7 2 

Phtaddphta 000 IN 200-3 7 a 

D.Reyes, Osana (8), TaWotrell (9) and 
Piazza; Schilling, BotkUico (9) and 
Lieberthal. W-Osuna 2-3. L-BottoSco 2-5. 
Sv— TaWorrefl (32). 

CfKjnatl IN 010 000-2 n 0 

Atlanta 0» 321 80*— 6 8 0 

RemHnger, Tabaka (6). FeJtadriguez (7) 
and J. Ofivec GJMaddin. Cottier (8) and 
Edd. Perez. W-G. Maddux 17-3. 
L— Rem linger 6-5. HR-Attanto. McGriff 

St. Louis 013 000 003-7 9 0 

Florida ON 300 080-3 I 0 

Monts. Fosses (8). C. King (81. Beltran (9). 
Eckersley (9) and Pognazzl D delta (6); 
Saunders. Alfonseca (3), Cook (61. Powell 
(8). Nan (91 and C Johnson. W— Morris 9-8 
L — Sounders 3-5. HRs — 5f. Ltwts. McGwire 2 

(7) . 

Catorode ON IN NO-1 7 1 

Haoston 001 926 00*— 9 12 B 

Thomson DeJeon (6). MJHurwz (8) and 
JeJteed.- KBe. Magnante (8) and Eusebio. 
W-lffle 17-3. L — Thomson 5-8. 

HR— Cotaroda Galarraga f32). 

San Diego 210 028 003 00-8 12 2 

New York IN ON 403 01—9 13 0 

II iimifigs 

J -Hamilton. D. Veras (71, TLWorrel (8). 
Hoffman (9). Bochder (11), Cunnane (11) 
and Flaherty; Homweh, LirUe (51. Y Perez 

(8) . Rajas (91. Jo franco (11) and Hundiey- 
W — JaJMtHico, 4-1. L — BaJiftcr, 3-6. 
HR-New York, Hundley 127). 



Boston ON NO 010-1 7 2 

Anaheim 301 ON 02x— 6 11 0 

Sele. Wtndin (5), Gordon (8) and 

Hotteberg; Dicksoa Coda ret (9) and Kreuter. 
W— Dicksaa 13-5. L-Sete, 12-10. 
HRs — Boston. Gandapaira |24>. Anaheim 
Salmon 05). 

New York 002 120 300 02—10 16 0 

Seattle 201 022 on 00-8 14 2 

ll innings 

Mendoza Lloyd (6). Nelson (7). M. Rivero 

(9) . Stanton (It) and Posada OSvares. 

Spofjaric (4). Tlmfin (6), Chariton (7), 

Slocumb (I0> and Oa-Wdson. W— M. Rivera 

4-3. L— Slocumb. 0-7. Sv— Stanton 03. 
HRs— Scattta R. Kefly 16). Griffey Jr (41). R. 

MhmeSDtO IN 010 200-4 8 0 

Baltimore 1)0 )M 02 *— S 7 9 

Fr. Rodriquez. Swindell (81 and Stein boch; 
Mussina Rhodes (6), TeJWathews (7), 
Orosco <B1, RaMyers (9) and HoBes. 
Webster (91. W-OTO&ca 5-3. L— 5 winded. 7- 
1 Sv— RaJWyere (40). HRs— Minnesota, 
MoKtar IB). BaBImore, Surtiatf (15). Benaa 

Detroit ON 101 000—2 10 0 

MBwouhee ON 320 Oflx-4 ll 2 

K eagle. Jarvis (51 and Walbedg Kart. 
Wfckmon (8), DoJones (9) and Matheny. 
W-Rnrt 9-10. L— Keaglo 1-3. 5v— Do Jones 
08). HR— Milwaukee, Bumifz 123). 

Toronto 2N 310 000-6 8 0 

Kansas Oty 230 ON 000-5 19 2 

Anduiar. Janzen (3), Crabtree (71. OuantriU 

(8) and B -Santiago; Pitts ley. J. Waflier (51. 
Carrosco (7), J. Montgomery (9) and 
MUweene y. W— Janzen 14. l—J. Walker 3- 
X Sv— OuantriU (5). HRs— Kansas City, 
C -Davis (24), J. Hansen (1>. 

aevetond 030 ON IT 2— 7 17 0 

OaBtrod IN ON 102—4 8 1 

Hershksec Assenmacher (7). M. Jackson 

(9) . Mesa (9) and SJUoman Rigby, Groom 
(7). A. Small (81. T. JJAalhews (9) and 
Moyne. W— HersWsw 12-5. L— Rigby 0-5. 
Sv— Mesa (9)- HRs — Cleveland, Thome 2 
(361. Justice (271. 

Chicago 0M 201 320-8 11 4 

Terns 002 003 35*— 13 13 j 

Eyre, N. Cnn (6). T.CasJiHo (8) and 
Fab mg as; WBt Bailes [71. Patterson (81. 
Write kmd (9) and I. Rodriguez. W — 
Patterson 8-5. L— N. Cnu 0-2. HRs— 
Chicago. Belle (27), Fabregas 16). Texas, 
l.Rodriguez (141. Greer 2 02). F. Tatis (41. 

ancmntr IN 001 mi— 3 a 1 

Atlanta 110 010 41*— 10 10 0 

Tomka Belinda (7). PAJWarttaz 17). 
Tabaka (81 aid J. Otven Neagle. C. Fox (81, 
Ugtcnberg (9) and J. Lopez. W— Neagle. 17- 
3.1— Tomka 8-5. HRs-CIndnnati. J. Oliver 
(13), M. Kelly (61. Atlanta Luflon (4). A 
Jones (141. 

Montreal 020 8 00 124-9 13 1 

Chicago 302 000 000—5 7 0 

Poniaqua Bullinger Ml, TeHord (7), 
Urbina (91 and Flctchec M-Oark. Plsciotw 
(7). Paterson IS). SottenfleM (9). R.Tatis m, 

Batista (9) and Houston Sereais i9). 
W-Tetfwd. 3-3. L— Pattersaa 1-6. HRs— 
Montreal. GfudzWanek{4),LansJngI16l. Fle- 
tcher 2 (15). Strange (9). Stanhiewfcz (|j. 
Colorado ON 011 103-4 74 0 

Houston IN 001 100-3 18 0 

Astoda S. Reed (7), Dipotu (9) and 
Maimwing; R-Gceda TJAartin (7), R. 
Springer (7), Hudek (9). B. Wagner (9) and 
Ausmus. W— S. Reed 4-5. L — Hudek 0-2. 
5v— Oipoto (101. HRs— Colorado, Galarraga 
(33), CasttH 03), Bales (3 )j 
SI. Louts BN ON 000-0 5 0 

Florida 010 191 Ota— 3 4 0 

AnBenes, Petkovsek (7) and D defies: 
KJarown and CJohnson. W—KJ -Brawn, 12-. 
8. L— ArcBones 8-7. 

San Diego 001 910 192-5 14 t 

NOW York 000 12! 4 lx— 9 12 1 

Mention. Bergman (71 and Flaherty; 
MlMcl Y. Perez (71. McMkhari (7). Wende* 
(9), JaJFranco (91 ana Hundley. W — MJicU. 
6- 10. L— Mention 0-& 5v— Jo-Francn (32J. 
HRs— San Diego; S. Finley (231. CamMti 
(18), Shtptey (4). New York, McRae (7), 
AHuruo (9). Hundley (28), Huskey 05). 

Los Angeles 111 019 000-4 9 2 

PtahMMphiD 001 020 009-3 9 1 

Noma DreHart (6). Radinsky (8J. 
To.Worrefl 19) and Piazza T .Green. Bkizier 
(6), Spradlin (7), Gomes (9) and LieberthaL 
W-Noma 12-10. L— T. Green. 3-2 
Sv— To. Worrell (33). HRs— Los Angeles. 
Piazza (291. Philadelphia M.Cummmgs Ml. 
SauFmtcaxB IN 07 1 001—4 8 3 

Pittsburgh 202 101 Ota—* 10 0 

D. Darwin Poole (4), MuFhoOand (5), 
Tovarer (71 and BJohnson; Loaiza. M. 
Wilkins (7), Rtaam (81, Laiselle (9) and 
Kendan. W— LoaOa 10-8 L— O. Darwin, O- 1 . 
5v— Laaefle 123), HRs— Son Fianctsca Ken) 
(2S>, BJohnson (6). Pittsburgh. AAHarttn 

San Diego 


3 1 0 






3 2 0 





3 2 0 





2 2 0 





Kansas GTy 

1 5 0 





runaruu. conhrxnce 


W L T 





3 1 0 





2 2 0 





1 3 0 




N.Y. Giants 

1 3 0 





1 3 0 




Green Bay 

5 0 01.000 




3 2 0 





2 3 0 





1 3 0 




Tampa Bay 

1 3 0 




New Orleans 

3 1 0 




St. Louis 

2 2 0 





1 3 0 





1 3 0 




Carolina 0 4 0 .000 

Jacksonvflle 2ft Atlanta 1 7 



Australia: 220 and 104 
England; 180 and 163. 

England won by 19 runs 
Australia won the sate 3-2 

Sri Lanka 264 In 49.4 ovens 
India: 255-8 in 50 rwera 
Sri Lanka won the match by 9 nro and 
series 3-0. 

Match was replay otter game had to be 
abandoned due to min and bad BgM on Sat- 


Buffalo 31. Baltimore 28 
Seattle 31. Cmonnali 28 
N.Y. Jets 15, Tompa Bay 9. OT 
Green Bay 22. N.Y. Giants 17 
51. Louis 14. Kansas City 13 
Dallas 34, Tennessw? 10 
Minnesota 2& San Diego 22 
Pittsburgh 27, Carolina 19 
New Orleans 13. Chicago 7 
Arizona 15. Oakland 13: 

I>nver3l 5an Franchco 1 7 


Japanese Leagues 

Lending (cores Sunday after final round 
at £850,000 fSf J rmtUonJ European Open a 
7.1 78-yard (IL5S3 meter) par-72 K dub 
course In Dublin, irehmd: 

P-U. Johansson. Swe. 68-64-6^69—267 

Peter Baker, E ngtand 70-67-68-68—273 

J.M. OlazabaL Spain 69-73-^7^5—274 

R. Russeft Scotland 72-^-67-66-774 

Castantino Rocca IL <7-69-67-73-275 

□avid Carter, England 68-73-67-67—275 

Morten Otander, Swe. 6968-71 -47—275 

Brian Davis. England 69-70-68-68—275 

Sieve Rtaordsoa Eng. 65-72-73-46—276 

A. Forebrand. Sweden 70-67-73-67—277 

Paul Broadhurst. Eng. 70-71-69-67—277 

Eduanto Romero. Arg. 70-46-70-71—277 

Per Haugsrod. Norway 68-67-70.72—277 

Fortune Sitlard a Ajax Amstetdam 5 
Breda % PSV Eindhoven 3 
FC Vofondom A T weide Enschede 0 
RKC Woatmjk 1, FC Groningen 1 
FCUhechfd, Maastricht 1 
VltBSse Arnhem X Roda JC Kertaade 1 
Feyenoord 3, Sparta Rotterdam I 
STAMMNQS: A)ax Amstetdam 6 potirts, 
Feyenoord A Heerenveen 6, PSV Eindhoven 
indtem 4, FC Utrecht X Nijmegen 3. Rada JC 
Kerkrade 3, Vitesse Arnhem & Bredo 1. Spar- 
ta Rotterdam 1, FC Volendom 1, RKC WbaF 
wfk 1, wniem II TBburg a Fartuno SWnrd a 
Maastricht 0. 


Juvenhis 3, Vicenza 0 


Real Madrid 4 Barcelona 1 
Real Madrid win 5-3 an aggregate. 

Columbus 2, New England 1 
New York-New Jersey 3, Dallas 1 
STAMDUMS; Eastern contorencr. DC. , 
42 points; Tampa Bay 3& Columbus 2K New . 
Engtand 28i NY -NJ 22; Western Canterence: 
Kansas Otv39 points. Cotorodo 35; Dallas 3ft 
Las. Angeles 26,- San Jose 24. 

Lebanon ft Iraq 2 

-j bomeri- V.r . " ‘ ' 

% Dickson - 


Btaio-i : ■■ 

singled it. 

■' streak io.. 1 ■ 

•. sank ir. !<■.'" r: ‘ 

tbeeip'A r'-.-y ■■ ■ 

ttoqurs To.flfv.e V. 1 S 

ibe second - 
feararwri-.r’ -■ 
run hcrr.r- ; 

IkbiRc.ts:: •. 


for re\^i. 






"Memorable Moments from Jobmtic Halker; RIDER CLP tvith Bernard Gallwher 









































wane lucui 


















Nippon Ham 


























Hiroshima ft Yakurt 3 
Yomlurl 7, YoKohama 3 
HansMn 1 Chunchi 2 


Onx ft Nippon Ham 4 
Lotte ft Kin lei su 3 
Seibu 9, Dale! 1 

Ya*(rt/4 Huas/ifmaJ 
Hanshin ft ChuiUchi Q 
Yoftohamo 1 Yomtan 2 

Orix ft Nippon Ham I 
Seibu ft Da kH 3 

Kintetsu )). Latte 10. 12 Innings 


™ sn fang, (laasat man) 

1. Michael jctwmachet. Gcr. Ferrari. 44 laps. 
IfL 33 m. 46717!-- 196.149 tab fl 21.9 mph). 

2. Gioncorio Fisichcfia It. Jordon 0T26J53 

3. M. HaMincn. Flnlond, McLaren 30J156 
•L H-H. Frantz en. Ger, wnnams 32.147 
5. Johnny Herbert Brtlafai. Sauber 49D25 
t>. Jacquc VUIeneuve. Can. Willtams 42.103 

7. G. Berger, Austria. Benetton 1*7.741 

8. Pedro Diniz, Brazil Arrows 1 :25.93 1 

9. Jean AtesL France, Benetton l :42KB 

10. Gianni MortHdeUL llafjr. Sauber 1:43J83 
6ft- 2. vniencuve, W; 3 llicf, Frentzen and 
AlcsL 22; 5. Beiger. 2ft a itici. Edrfie Irvine, 
Britain. Ferrori and HakMnen. ift ft PanK 
France, Pros! 15; 9 llici. David Coullhard, 
Brit. McLaran-Mercedcs and FbicbcJJa 14. 


rori. 84 points; 1 Wiitams. 7ft- 3. Benetton 4ft- 

4. McLaren, 31 S. Jordan, 25, 6. Prost 2ft 7. 
Sauber. 14 8. Anowre. 7. 9. Stewart, ft- 10. 



Swiss Grand Prix 

* ftxmmjL ®v£&cupFy!i8moF’h\ 

^AUmfAB. ! &U££> 0 TVNJVAJ 4 M P 

w momAVTHZP,&>T9N&£ 

&• JDFJVlHTiE&mzaJR 

R&miU&A’tS, EUROPE-13. 


NFL Pres eason 



I II mini ml h It Smnwny. lAvpinl & fffinlnrfal In Hair l : Smith <■ Inirmuiimal llmitl Tribune i Pwfry\imml Sj*>ri\ /fcrtnrrefa;n Itrl. 









N.Y. Jets 



0 1000 



Hew Engtand 














India ncpoBs 


















































1. Domdc Ribeftn Ln Franco Kr dn Jcux. 


ft Jon UBrichi Teickom, Gcrmanv; 

1 Rolf Socicrucn fiabotronk. Denmark; 

4 Step hone HeuMi Froncnfce des Jeuft Fr.- 
ft Richard virengue. Festma, France 
ft MiCheie BnrfolL MG-Technonym, Italy; 

7. Moortan den Boater. TVM, Ndheriands; 
ft Alberto Efli. C«nft Italy. 

9. Ywn LedortRS, G<|il France; 

10. Alnandrr Gonldicnkov, RostanoZG, 
Russia all some time. 

would cun ' staiki mgs: 1. Socremcn. 
775 pobih.- 2. BartoH. 77a- 1 Rebelba Wft 4. 
Andrea Taft Mapw- GB. limy. 107, 5, Beat 
Zberg. Mereatune Una. Switzerland. 135, ft 
EWl 17ft 7. Laurent Jatabert. Once. Franca 
114. ft Maximillion Sckuidn. La Frpanibr 
des Jcux, Britain, 1 13.-9, Andrai TchnuL Lotta 
Ukraine. 112. 10. Jo Pkmkacrt, Lotto. Bel- 
gum. Ida. 


Hamburg a Bayern Munta 2 
I860 Munich 0. FC Hansa Rostock 1 
VfL Wolfsburg ft Hertha BSC Berlin 1 
Armlnta Bleiefeid 1 Werder Bremen 0 
Bayer Lcvcrtiuscn ft Korslruher SC 1 
Borussia Dortmund ft ViL Bochum 2 
Botussia Moencttengtadbach 4, Cotegne 1 
FC Kotarstautem 3. Schalke 0 
MSV Duisburg ft VfB Stuttgart 3 
BTAMMNGS: KafScntaUtettl 10 POmlft 
Bonmia Dortmund 7; Bayern Munich 7; VfB 
Stuttgart 7; Homo Rostock 7; Kurfsruher SC 7; 
VIL Wolfsburg 7; Bayer Levetkusan o. 
Mocflchemrtadboch 6. Amunia Biefcfdd ft- 
Schalke ft- Vfl Badium 4; MSV Duisburg ft- 
FC Cologne 4, i860 Munich ft Hamburg 5V1- 
Hertha Berlin 2 Werder Bremen 2. 


Barnsley a Chelsea 6 
Blackburn 1, Liverpool 1 
Coventry 1 Button 2 
Evertun 1 West Ham 1 
Leeds ft Crystal Palace 2 
Leicester a Manchester United 0 
Newcastle ], Aston Villa 0 
Southampton I . Arsenal 3 
Tottenham 1. Deity 0 
Wimbled on 1. Sheffield Wednesday I 
STANDINGS; Blackburn 7 points; Aremal 
7; Manchester United ft Lctccstcr 7; Crystal 
Pa tote ft Newcastle ft West Ham ft Bolton ft 
Leeds ft- Coventry 4. Chelsea 3. Evertun 1 
Tottenham ft Barnsley ft Wimbledon 2 Liv- 
etpool 1 Sheffield Wednesday I; Derby a 
Southampton (t Aston v«j 0 

floslia I. ChafeaumiK I 
Auxetre 1. CuioHampO 

Metz 2 Pans St Gcnrwm 1 

Mancflteft Lens3 
Le htavre 1, Lyon 3 
Mantpdaerft Toulouse 0 
Rennes 2 Monaco 1 

STMTOMQB; MctZ 12 poinls. Ports 51 
Gernwin 9; Baslto & Lens 7; Marvrtlle 7; 
BordMta 7,- Tauteusa 7; Lyon ft Auxcrrc ft 
MontpeHier 5: Strasbourg & Monaco ft- Lc 
Havre ft Guingamp ft Rennes ft Nantes ft 
OuricoumM X Cannes g. 

Graatschap Doelinchem ft WiUcm II Tub 1 
NEC NtjayemraO, Heeranveen I 



Sandrtne Testua, Franco def. Iva Mafoll 
(3). Croatia 7-5. 6-3. 

Lmdsav Davenport (41. U A. def. Amanda 
Coelzer (5). South Africa 6-2 6-4. 


Davenport def. Tested 6-4,6-t. 



S|eng Schatken. Nethcrtands, def. Ate 
Correfta (I). Spoltv, 36. 6-1 6-3. 

Albert Costa (5). Spam def. Johan Von Har- 
cK. Betgium, 6-7 f7-3l. 6-2 6-t. 

Jeff Taronga def. Greg Rusedski «>. 
Britain, 7-6 (17-101, 7-6 (7-2J. 

Marcete Rios 121. Otoe. def. Heman Gumy. 
Argentina 6-4. 6-3 


SdKriken def. Costa 6-ft 5-7, 7 3. 

Rios def. Tarango 6ft 6-3. 


Corios Movo (S). Spain, def. Marc-Kcvm 
GaeUncr. Germany, oft 6-4 
Thomas Enqvut (6t. Sweden, del. Rtaey 
Reneberg, Ui . 5-7. 6-ft 6-2 
Julian Alonso. Spain. «W. Goran Ivantsevtr 
(2), Croatia 7ft (7-4), 3ft. 4.3. 

Patrick Rafter tB). Australia 0. • . 

Chang (1), ui. 6-ft 3-4. 6-t. " 


Mova def. Alonso 6-2 6-3 
Rafter def. E nqvrst oft 6-4. 


Mayadet. Rafter 6-ft 7ft (7-r;. 



fa 6 " 6 - 

■«SCVTC . J. | 

. 1 


h, ’a ■ 

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Soulti Africa 61 , Aushalio 22 

fwuu. STOHDIMCS: New Zenfona 18 
points South Atnca 7i Aoslralio 6. 

T ft A NS IT | O N 5 



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1 9 Rdeastd D T Romeo Bonriisott' nc & 1 

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( A : r, 


:i ifiin 

O’Neill Boosts Yankees 
With llth-Inning Hit 



PAGE 17 

The Associated Press 

After stranding nine runners with 
four strikeouts in his first five at-bats, 
Paul O’Neill hit a two-run double in the 
1 1th inning as the New York Yankees 
overcame a ninth-inning, game-tying 
homer by Roberto Kelly to beat the 
Seattle Mariners. 

“I left runners on all day,*' O’Neill 
said after the 10-8 Victoiy Saturday. 

‘ ’That’s a bad day. But that’s the funny 
thing about baseball. You can still end 
t , upon a good note.” 

Ken Griffey hit his 41st homer to tie 
Mark McGwire for the major-league 

New York, which stranded 1 7 runners, 
won for just the fourth time in its last 20 
, games at the Kingdome, including the 
1995 American League playoffs, 
j “I think you can dispelanyjinx stuff,” 
the Yankees’ manager, Joe Tone, said. 
“They’ve snatched a few away from us. 
So it was gratifying to keep going out 
there and keep coming back.*’ 

Tino Martinez raised his major 
league-leading runs-batted-in total to 
121 with a go-ahead, two-run double off 
Norm Charlton in a three-run seventh 
that pot New York ahead, 8-7. 

But Kelly led off the ninth with his 
sixth homer, his first since Seattle ac- 

day night. 

Mariano Rivera (4-3) blew a save for 
the eighth time in 48 chances. Rivera 
then escaped bases-loaded jams in the 
ninth and 10th, getting Rob Ducey on an 
inning-ending groan clout in die ninth and 
striking out Alex Rodriguez in the 10th. 
In the ninth, Griffey was thrown out at 
the plate by catcher Jorge Posada after a 
pitch that bounced off die backstop. 

“I kept thinking we still had a 
chance,' ’ Rivera said 4 ‘That’s what was 
in my mind. To get home and cover the 

The Mariners’ manager, Lou Piniella, 
disputed home-plate umpire Rich Gar- 
da's out call. 

“It hit the advertising sign back there 
and bounced right back to him,” Piniella 
said. ‘ ‘I hope they’re getting a lot for that 
sign. He had his legs in on the replay. ” 

Angeis 6, Rad Sox 1 Jason Dickson, a 
rookie pitcher, held the major leagues’ 
top-hitting team to seven hits over eight 
innin gs, and Tim Salmon hit a two-run 
homer as Anaheim beat visiting Boston. 
Dickson (13-5) walked one and struck 
out six. 

Boston rookie Nomar Garciaparra 
singled in the sixth to extend his hitting 
streak to 25 games, the longest for the 
Red Sox since Wade Boggs’ 25-game 
streak in 1987. He hit his 24tb homer in 
the eighth for their only run. 

Hangar* is, wtiiKa Sox 8 Rusty Greer 
homered twice and drove in six runs for 
the second straight night in a game that 
featured five blown leads. Greer bittwo- 
run homers in the third and sixth in- 
nings, then delivered a two-run single in 
host Rangers’ five-run eighth. 

Ivan Rodriguez hit a three-run homer 
for Texas, and Fernando Tatis hit a solo 

Chicago* BellC h " hiS 27lh honwr for 

Bhw Jays 6, Royal, S Marty Janzen 

n°io2? n f0 A? e first ,ime since June 
U. 1990, and Shawn Green drove in die 
go-ahead run with a fifth-inning single 
as vis'tmg Toronto rallied. Janzen, re- 
cahed from Triple-A Syracuse on Aug. 
i» stru ck out four in four shutout in- 
nings, allowing two hits. 

, . 7 ' *"**■** 4 Orel Hershiser 
(12-5) recovered from a bad start to 
pltchb'/i innings of five-hit ball, and 
Jim Thome hit two homers in Oakland. 

Oakland was without designated hit- 
tw Jose Canseco for most of the game 
after he was ejected in the first inning for 
arguing a called third strike. 

David Justice, who went 4-for-5, 
homered for the second straight game’ 
and seventh time in 14 games. 

Brewer* 5, Tiger* 2 In Milwaukee, 
Scott Karl (9-10) won his career-high 
seventh straight decision, and Jeremy 
Bumitz homered and tripled. Doug Jones 
worked a perfect ninth for his 28th save. 

Oriole* 5, Twins 4 In Baltimore, Ge- 
ronirao Betroa hit a two-run homer, his 
22d this season, in the eighth inning to 
give the streaking Orioles their ninth 
victory in 10 games against Minnesota 
this season. 

Baltimore managed justfive hits over 
seven innings against Frankie Rodrig- 
uez before rallying to send Minnesota to 
its 15th loss in 17 games. 

B.J. Surhoff also homered and Cal 
Ripken had two RBIs for Baltimore, 
which kept a six-game lead in the AL 
East over New York. 

•teV n."-rr.vU • 

mii ■ - v w 

Little League Series: 
School of Hard Knocks 

California 12-Year-Olds Deal With Defeat 

Coiy Cairnm/Roncn 

South Mission Viejo’s catcher, Adam Elconin, watching Javier de Isla 
score the winning run for Guadalupe in the Little League World Series. 

Perez’s Double Gives Reds the Victory 

The Associated Press 

Eduardo Perez's two-out, two-run 
double in the 10th inning gave die Cin- 
cinnati Reds a 6-4 victory Sunday over 
the Atlanta Braves, who lost despite 
getting 17 strikeouts from four pitchers. 

Cincinnati, avoiding a sweep in the 
three-game series one day after manager 

II L Roundup 

Jack McKeon berated his players for a 
1 0-3 loss, took advantage of three errors 
to score four unearned runs. 

In the 10th, Barry Larkin began the 
winning rally with a pinch-hit single, 
but the inning should nave ended when 
Chris Stynes hit a sharp grounder down 
the third-base line with two outs. 

Chipper Jones's throw to first was 
high, putting runners on first and third. 

Perez followed with a doable into the 
left-field comer against Chad Fox (0- 1 ), 
ending-the Braves’ four-game winning 

The Braves., falling behind 4-2 when 
die Reds scored three runs in the top of 
the eighth, tied it on Fred McGnffs 
two-out, bloop single that brought home 
two runs in the bottom of die inning. 

John Smoltz had a season-high 12 
strikeouts, but he didn't figure in the 
decision. Smoltz surrendered three hits 
and a run to the first three batters of the 

game, dien didn’t allow a hit over the 
next six innings. He retired 19 of 20 and 
even the one who reached base, on a 
walk, was wiped out by a double play. 

In the Cincinnati eighth, with the 
Braves clinging to a 2-1 lead, Reggie 
Sanders led off with a drive to right for 
his 16th homer. The Reds wound up 
scoring three runs in the inning to knock 
out Smoltz, getting RBI singles from 
Pokey Reese and Stynes and benefiting 
from an error by second baseman Tony 

In games played Saturday: ■ 

Brava* io. Rads 3 Denny Neagle 
reached a career best with his 17th vic- 
tory as Atlanta routed CincinnatLNeagle 
( 17-3) tied teammate Greg Maddux and 
Houston's Darryl Kile for the National 
League lead in victories, giving up two 
runs and six hits in seven innings. 

Rockies 6, Astm 3 Vinny Castilla hit 
a three-run homer, his 33d, off Billy 
Wagner with two outs in the ninth as 
visiting Colorado defeated Houston. 

Expos 9, Cubs 5 In Chicago, pinch 
hitter Andy Stankiewicz homered for 
the first time since April 25. 1994, and 
Mark Grudzielanek and Mike Lansing 
followed with bases-empty home runs 
in the ninth. Darrin Fletcher homered 
twice for the Expos. 

Marlins 3, Can&iais o Kevin Brown 
pitched a five-hitter and Craig Co unsell 

drove in two runs to lead Florida past Sl 
L ouis in Miami. • 

Pirates 6, Giants 4 In Pittsburgh, 
Turner Ward doubled twice and drove 
in rwo runs and the Pirates kept the races 
close in two divisions by beating San 

Dodgers 4, PM lie* 3 Mike Pi azza 
homered and had an RBI single as vis- 
iting Los Angeles beat Philadelphia. 
The Dodgers’ starter, Hideo Nome (12- 
10), gave up three runs and seven hits in 
five innings for the victory. 

Hots9, Pathos s Todd Hundley hit his 
fourth career grand slam to lead host 
New York over San Diego. Edgardo 
Alfonzo, Butch Huskey and Brian 
McRae also homered as the Mets won 
for just the fifth time in 14 games. Ken 
Caminiti. Steve Finley, Craig Shipley 
homered for San Diego. 

By Bill Plaschke 

Los Angeles Times Sen-ice 

WILLIAMSPORT, Pennsylvania — 
The ball rolled between Ashton White’s 
legs and through the thick grass in cen- 
ter field, and Javier de lsla sprinted 
across home plate to score the winning 
run amid a bouncing sea of teammates. 

And here came the South Mission 
Viejo, California, moms — rushing to 
the chicken wire behind their dugout, 
holding back giant sobs to shout at feeir 
linle boys. 

In this most impossible of moments, 
it was the most improbable of cheers. 

“We’re So Proud of You, Say We’re 
So Proud of You.” 

It did not work. The 1 2-year-olds did 
not listen to their mothers. 

White collapsed in center field, bury- 
ing his face in his hands. Adam Sorgi 
froze between second and third base, his 
once-brave face covered in tears. 

Some threw their caps, others kicked 
the dirt, some just stared with reddening 
eyes at a scoreboard that showed bow 
Mexico had scored four times in the 
final inning to steal away with the Little 
League world title Saturday, winning 
the game, 5-4. 

And still the California moms 
chanted: “We're So Proud of You, Say 
We’re So Proud of You.” 

On a breezy Saturday afternoon in the 
White Deer Mountains, 13 kids from 
Orange County were moments from 
learning about winning champion- 

* Instead, they had to settle for learning 
about life. 

An uneven swap if there ever was 

“I had fun — for die first five in- 
nings,’ ’ said Nick Moore, the first base- 
man whose home run helped give South 
Mission Viejo a 4-1 lead. 

Butin the bottom of the sixth inning — 
the final frame in these games — pitcher 
Gavin Fabian hit the first batter on the 
shoulder, and walked the second one. 

After throwing two balls to Gabriel 
Alvarez, Fabian was replaced by Sorgi. 
Three pitches later, Alvarez hit a home 
run over the left-field fence to tie die 
score. Then dels la walked and eventually 
scored the winning run from second base 
on Pablo Torres’s single that went 
through the legs of center fielder White. 

While the South Mission Viejo play- 
ers despaired, the Mexican team looked 

“I prayed for this,” Alvarez said as 
he hurried from the stadium with his 

family to attend Saturday night Mass. 
“In the dugout, we all prayed.” 

Guadalupe becomes only the third 
team from Mexico to win a Little 
League world championship in the tour- 
nament’s 50 years. 

South Mission Viejo becomes one of 
the few teams to lose in such stunning 

It may be the only team to ever lose in 
a championship game — and then listen 
to its coach say it deserved to lose. 

This was life lesson No. 1: When you 
lose, not everyone is willin g to run to the 
chicken wire and cheer you. 

“Baseball is a tough game, and they 
got what they deserved today. They 
deserved ro lose this game,” said Jim 
Gattis, the team’s manager, who is a 
former college coach and currently the 
owner of a cafe. 

Gattis said his team poured after 
strikeouts, which may have led to silly 
mistakes — Mexico's first run scored 
after two errors — and which caused his 
team “to be out of whack.” 

Out of whack? A couple of parents 
thought the manager might have been 
out of whack. 

“How can you tell kids something 
like that?” asked Claudia Nieves, moth- 
er of outfielder Andrew Nieves. “Those 
kids played their hearts out. How can 
you say that they didn’t deserve to 

Good question. Maybe lesson No. 1 
should be, that no matter how pure they 
try to make this akid’s game, some adult 
will always try to muck it up. 

And no doubt, this was dam near 
pure. Hie crowd of 37,400 that filled the 
bleachers and hills around Lamade Sta- 
dium wens there gratis. There is no 
admission charge for this tournament 

Then came the sixth inning, and real- 

Lesson Two? Some things, you just 
have to face yourself. 

That is what Ashton White learned 
from his father, Charles White, the 
former Tunning back and Heisman 
Trophy winner. After his son finally 
climbed to his feet and ran off the field, 
still crying and shaking his cap in frus- 
tration, his father stared from behind 

r ’Hang in there, Ash,” he said 

Later, his father said, “Today, my 
son learned what it is like to lose. He 
learned that feeling. He will know that 
he never wants to feel it again. 

“He will learn to deal with this him- 
self. Thar is a very important lesson.” 

Is Umpire Guilty of Provoking Incidents? 

. -rtS 

By Murray Chass 

New York Times Service 

Cussing, John Hirschbeck said the 
other day, ‘ ’is part of fee game,’ ’ pre- 
sumably like bunting and stealing and 
makin g double plays. 

This is the same John Hirschbeck 
who denied last year that he made 
cussing part of the game in which 
Roberto Alomar spit at him. 

Hirschbeck said he didn’t use the 
kind of language Alomar said he used 

tack last September. No one, not even 
his family, condoned Alomar’s beha- 
vior, and he apologized for it But the 
Baltimore second baseman also said 
Hirschbeck had provoked him by call- 
ing him a vulgar term viewed with 
outrage in fee player's native Puerto 

The Alomar incident, which base- 

balks on him, Hirschbeck charged fee 
mound and berated the pitcher. After 
the game, at least one member of fee 
Yankees accused fee umpire of making 
an ethnic slur — later, no one would 
acknowledge they heard it — by put- 
ting “Japanese” in front of the ob- 
scene 12-letter name be called Irabu. 

Hirschbeck denied fee slur, just as 

ball would love to be forgotten, popped he denied calling Alomar a two-word 

. ■ ... .j t _i . T.iiu.i.. ..... 

back into view because of 
Hirschbeck ’s incident in Anaheim, 
California, last Wednesday night wife 

during their confrontation at home Hidelri Irabn, the Yankees tempera- 
plate. mental Japanese pitcher. 

Hirschbeck is an American League Believing that Irabu, by angrily 


Hirschbeck is an American League 
umpire who was portrayed as the in- 
nocent victim of Alomar’s salivary at- 

tacking at fee dirt on the mound, was 
showing up fee umpires for calling two 

49ers Lose 
‘■’As Elway 

The Associated Press 

DENVER — John Elway, 
who injured his throwing 
shoulder in early August, 
showed no ill effects as the 
Denver Broncos romped over 
the San Francisco 49ers, 31- 

Ehvay, seeing his first ac- 
j lion since rupturing a biceps 
, tendon Aug. 4, was 7 -for- 10 
for 51 yards Saturday. 

! He saidhe is throwing with- 
out pain for the firsttime since 
^shoulder surgery in the off- 
P season to remove scar tissue. 

Running back-Tetrell Dav- 
i is ran 12 times for 92 yards 
; and two touchdowns. 

* Ehvay and Davis played 
; only on Denver's first two pos- 
; sessions, both of which result- 
1 ed in scoring runs by Davis. 

Backup quarterback Jeff 
I Lewis threw two third-quarter 
‘ TD passes to WilKe “Flipper" 

■ Anderson as Denver domma- 
, ted the 49ers, who have been 
plagued by turnovers and de- 
J fensive lapses in fee last two 
Preseason games. 

NFL Suspends Player 

, Miami Dolphins corner- 
back Clayton Holmes was sus- 
pended Saturday for at least 
fee first four games of fee sea- 


fr J H 

. V 

i i. , 

The 49ers defense swarming the Broncos" Terrell Davis, 

son for another violation of the 
league’s substance abuse 
policy, Reuters reported. 

Holmes was suspended in 
November 1995 for fee re- 
mainder of the season after a 
substance abuse violation. He 
sat out fee 1996 season and 
was signed to a one-year con- 
tract by Miami last February. 
12 days after being reinstated 
by the league. 

■ Seattle Star Injured 

The Seattle Seahawks 

could be without their star 
wide receiver Joey Galloway 
for as long as a month because 
of a toe injury suffered in Fri- 
day's preseason game at Cin- 
cinnati, Reuters reported. 

After just one series of 
plays, Galloway left fee game, 
in which Seattle- beat fee 
Bengais, 31-28, when he in- 
jured a toe on his right foot. 

Galloway was the Sea- 
hawks’ leading receiver Imi 
season with 57 catches for 987 
yards and seven touchdowns. 

obscenity. Tellingly, though, fee cuss 
word Hirschbeck uttered at Irabu was 
similar to what Alomar said provoked 
him. It’s also the word that brings 
automatic ejection for a player who 
uses it with an umpire. 

When a player says it, cussing sud- 
denly is not part of fee game. 

Bows, 24-0, 
In Classic 

The Associated Press 

CHICAGO — Northwest- 
era's defense didn't tackle 
well, giving up big plays all 
day, especially to the elusive 
Oklahoma running back 
De’Moad Parker. 

But fee Wildcats didn’t sur- 
render any points, either, and 
beat the Sooners, 24-0, Sat- 
urday in the Pigskin Classic. 

“You come off two Big 
Ten titles and you think 
you’re good. We showed 
we're just O.K. and we need a 
lot of work," said senior de- 
fensive end Keith Lozowski, 
whose third-quarter intercep- 
tion was one of the keys for 
the Wildcats. 

Northwestern sputtered 
wife starting quarterback Tim 
Hughes before finally getting 
untracked behind backup 
Chris Hamdorf. Hamdorf 
completed 6-of- 1 1 passes for 
80 yards while Hughes was 
I4-of-28 for 151. 

Oklahoma threatened 
throughout, but Justin Fuente 
had two passes intercepted 
and Jeremy Alexander 
missed two field goals as the 
Sooners came up empty. 

Brian Gowins hit field 
goals of 27 and 22 yards for 
the Wildcats. 

HcralO&ibuM ^ 


PAGE 18 




MONDAY, AUGUST 25, 1997 

World Roundup 

Out in the Meadows, 

A Grand Arena Grows 

By Christopher Clarey 

International Herald Tribune 

Per-Ulrik Johansson surveying 
a green at the European Open. 

Swede Keeps Title 

N EW YORK — Grander Slams 
do not necessarily produce 
better views. From the top of 
die new 22,457-seat Arthur 
Ashe Stadium at the National Tennis 
Center, home of the United States Open, 
the court is indeed visible but there is no 
way to know if a player is grimacing or 
g rinning , or perhaps more troubling in 
this particular t ennis era, whether be is 
wearing Nike or Reebok. 

Sasha Naaman-Mejica coaid have 
cared less whether Andre Agassi and 
John McEnroe were wearing Laura 

golf Per-Ulrik Johansson, the 
defending champion, shot a closing 
3-under-par 69 Sunday to win the 
European Open in Dublin, while 
Ryder Cup hopeful Jose Maria 
Olazabal improved his selection 
chances by shooting a 7-under 65 to 
finish joint third. 

Johansson finished with a 2 1 -un- 
der 267, six strokes ahead of Eng- 
land’s Peter Baker (68). Olazahal 
and Scotland’s Raymond Rosseli 
(66) were a stroke further back at' 
274. Olazabal exchanged his 12th 

U.S. Open Tennis 

placing on the Ryder Cup standings 
for Padraig Harrington's 1 1th place 

Padraig Harrington’s 1 1th place 
sr the Irishman shot 72 to finis h 

Ashley as she watched them play an 
exhibition as pan of Saturday's inau- 
gural celebration. 

Naaman-Mejica, a New Yorker, is 
■ afraid of heights, and as she looked 
down, down, down toward the court so 
far, far. far away she was clinging to her 
seat in the second to last row. 

’‘As long as I’m sitting down, it’s 
O.K.,” she said. 

Consider this the high price of pro- 
gress, and there has been plenty of it in 
recent years at tennis’s four showcase 

M eanwhile, the two players 

who have done the most for 
European tennis in the last de- 
’s four showcase cade — Boris Becker and two-time- 
Australian Open defending Open champion Steffi Graf — 
retractable roof at will watch from afar. Becker, who may 
xrarne. Then the have played his last Grand Slam event in 
cond stadium and singles, withdrew to mourn the death of 
arts and training his manager, Axel Meyer- Woelden. 
id Garros in Paris, Graf is recovering from knee surgery, 
gurated its Court If they had come, they would have 
Garden" theme, been like everyone else: newcomers at a 
sen’s him to break new- look tournament, and when they 
um race at Flush- walked in the players’ entrance they 
o be quite honest, would have stared up at the wall and seen 
as a place better the following words: “I wanna wake up 
. for meadows. in the city that doesn't sleep to find I’m 
later, the place is king of the hill, top of the heap. If I can 
. Yes, the former make it there. I’d make it -anywhere.' * 

>r Queens’ home- Those lines from the theme from 

after the Irishman shot 72 to finis h 
50th with a total of 285. 

If Olazabal can keep 11th po- 
sition after next week's BMW In- 
ternational in Munich, he will qual- 
ify automatically for the European 
team because Miguel Angel Mar- 
tin. ninth in the standings, is side- 
lined with a hand injury. (AP) 

tournaments. First, the Australian Open 
builta stadium with a retractable roof at 

King of the Straw Men 

boxing Ricardo Lopez of Mex- 
ico, the World Boxing Council 
strawweight champion, retained his 
title Satinday by stopping Alex 
Sanchez of Puerto Rico in the fifth 
round at Madison Square Garden. 

On the same card, Wilffedo 
Vasquez of Puerto Rico retained his 
WBC featherweight title with a 
unanimous points decision over 
Colombia's Roque Cassiani, and 
challenger Julio Cesar Green of the 
Dominican Republic won a tight 
points decision over William Joppy 
to take the World Boxing Asso- 
ciation middleweight title. (API 

builta stadium with a retractable roof at 
Flinders Park in Melbourne. Then the 
French Open built a second stadium and 
dozens of outside courts and training 
facilities at Stade Roland Garros in Paris, 
then Wimbledon inaugurated its Court 
One and the “English Garden" theme. 

Now, it is the U.S. Open’s turn to break 
new ground in the stadium race at Flush- 
ing Meadows, which, to be quite honest, 
has long been known as a place better 
suited for Hushing than for meadows. 

Now, S254 million later, the place is 
lately unrecognizable. Yes, the former 
main stadium, named for Queens’ home- 
town hero Louis Armstrong, is still in 
service and still just as charmless. Yes, 

the Unisphere, the massive steel sculp- 
ture of a globe still sits just outside the 

“New York, New York " are the Open ’s 
answer to those from the Rudyard Kip- 
ling poem “IT’ inscribed above the 
doorway that leads to Wimbledon's 
Centre Court: "If you can meet with 
triumph and disaster/ And treat those 
two imposters just the same." 

“We wanted to do something Amer- 
ican," Snyder said. "And what’s more 
American than Frankie." 

Sri T.anka Sweeps India 

cricket Sri Lanka beat India by 
nine runs on Sunday in Colombo to 
win the third and final one-day 
match and sweep the series, 3-0. 
The match was rescheduled after the 
game Saturday was abandoned due 
to rain and poor visibility. 

Sri Lanka batted First and made 
264, with Arvinda da Silva hitting 
104. India made 255 for eight wick- 
ets in its 50 overs. (Reuters) 

Rebellin Wing in Zurich 

cycling Davids Rebellin, an 
Italian who rides for La Francaise 
des Jeux team, won the Swiss Grand 
Prix in Zurich on Sunday. He beat 
Jan Ullrich, the Tour de France win- 
ner, who tides forTelekom, and Rolf 
Sorensen, a Dane with Radobank. 

• Fabiana Luperini of Italy on 
Sunday won the women's Tour de 
France for the third straight time. . 

Luperini finished 2 minutes 36 
seconds ahead of Swiss world 
champion Barbara Heeb after the 
final two stages. Canadian Linda 
Jackson finished third, 5:02 behind 
Luperini. Luperini, 23, had held the 
lead foam the fourth stage. (AFP) 

cure of a globe stiU sits just outside the 
grounds. But the rest is strikingly dif- 
ferent and much improved, because the 
Open's contractors did not simply build 
a more attractive new stadium. They also 
rebuilt the outside courts, which are now 
entirely separated from each other, and 
added more comfortable seats. 

No longer do the burgers grill so close 
to the groundstrokes. No longer should 
the players steam about the burgers. 

“I think we’re Number One among 
the Grand Slams now in terms of our 
facilities," said Jay Snyder, the U.S. 
Open tournament director. ’ ‘But it’s not 
a competition. We’re in the cooperation 

Sergi Bruguera of Spain disagrees 
about the pecking order. "It's much 
better here, he said, before expressing 
his concern about the wait in the new 
player' s restaurant and the cramped new 
men’s locker room. "I stillput this one 
at Number Three after the French Open 
and the Australian,” he said. 

Bruguera is one of five Spaniards 
seeded here, but none of - them is tire 
favorite. That honor belongs to Pete 
Sampras, the two-time defending cham- 
pion who will attempt to become the 
first man since Mats Wilander in 1988 to 
win three of the four Slam events in a 
single year. Sampras is the only constant 
in a sport where the ever-increasing 
depth has transformed Grand Slam ten- 
nis into a Lotto scratchcard. 

Unseeded semifinalists have become 

■ Moya Ends His Drought 

Carlos Moya of Spain, the No. 5 seed, 
beat Patrick Rafter, 6-4, 7-6 (7- 1 ), Sun- 
day in the final of the Hamlet Cup in 
Commack, New York, The Associated 
Press reported. 

It was the first tide of the year for 
Moya who. like Rafter, had lost his 
previous four finals. 

• Lindsay Davenport, who has never 
advanced past the quarterfinals in a ma- 
jor tournament, heads to New York on a 
roll, after beating Sandrine Testud, 6-4, 
6-1, Saturday in the final of the U.S. 
Women’s Hardcourt Championships. 

The fourth-seeded Davenport didn't 
Jose a set in four matches during the 
event at Stone Mountain, Georgia, 
where she won a gold medal last sum- 
mer in the Atlanta Olympics. 

• Unseeded Sjeng Schalken of the 
Netherlands continual his string of up- 
sets Sunday, beating No. 2 seed Marcelo 
Rios of Chile, 7-5, 6-3, in the final of the 
MFS Pro championships in Brookline, 
Massachusetts. In the previous two 
rounds, Schalken had beaten two Span- 
iards, Albert Costa, the No. 5 seed, and 
top seed Alex Corretja. 

Springboks Beat Wallabies 

rugby union South Africa de- 
molished Australia, 61-22, in Pre- 
toria on Sunday in the final match 
of the Tri-Nations championship. 

The Springboks ran in eight tries. 
Flyhalf Jannie de Beer scored a try 
and landed nine kicks at goal for 26 
points. Center Percy Montgomery 
scored two tries to take his tally to 
five in six tests. New Zealand had 
already won the competition. Aus- 
tralia finished last. ( Reuters ) 

A*'’’"'- / ' 


The top seeds of the US. Open, Pete Sampras and Martina Hingis, 
chatting at an exhibition match. The tournament gets under way Monday. 

the rule. There were three at this year’s 
French Open, where unseeded Gustavo 
Kuerten ended up winning. There were 
three at Wimbleon, where Sampras beat 
Cedric Pioline of France in the FinaL 

"Ail this just goes to show that the 
guys ranked from 15 on aren't quite as 
intimidated by the guys in fee top 1 0 like 
they were 10 years ago with McEnroe 
and Jimmy Connors,'’ Sampras said. 

Sampras certainly should intimidate 
his first two opponents. He will play a 
qualifier in the first round and another in 
the second round Others could suffer 
early. Jim Courier, unseeded here for the 
first time since 1989, will face Todd 
Martin, a fellow American and a former 
top-five player, who has not played a 
tournament since undergoing elbow sur- 
gery in February. Martina Hingis, the 
No. 1 seed who, like Sampras, is at- 
tempting to win her third Slam title and 
haslost only- twice this year, will open 
agains t Tami Jones, an American vet- 
eran. No. 2 seed Monica Seles, who has 
won two hard-court tournaments in the 
last month, plays Kristie Boogert of the 

- * 1 - J 



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Jacques Villeneuve of Canada, foreground, briefly taking the lead Sunday in early lap of the Belgian Grand Prix. 


A Grand Prix Coup for Schumacher 

Decision on Tires Proves Correct on Wet Belgian Track 


The Associated Press 

um — Michael Schumacher used his 
knowledge of Belgium's unpredictable 
weather and another daring tire decision 
to .capture the Belgian Grand Prix on 

After a shower soaked the track 
minutes before the start, most drivers 
came out in full rain tires, but Schu- 
macher chose intermediate wet-weather 
tires and dominated the early part of the 
44-lap race. 

“When I was sitting on the grid and 
the sun was corning out and the rain was 
stopping. I had my first smile." Schu- 
macher said after the race. “I said 
'O.K., it's the right circumstances for 
me now.’ ” 

He won the race 26.753 seconds 
ahead of Giancarlo Fisicbella, an Italian 
in a Jordan-Peugeot. Mika Hakkinen of 
Finland was third, more than 30 seconds 

Schumacher was timed in 1 hour, 33 
minutes, 46.7 seconds. He averaged 196 
kilometers per hour (almost 122 miles 
per hour) for the 306.5 kilometers. 

It was the 26th career victory for 
Schumacher and his fourth this year. He 
also has won four of the last six Belgian 
Grand Prix. 

“It counts very much to take the right 
decision, to know a bit the weather 
here," Schumacher said. 

He was five seconds a lap faster than 
the field early on. Nor only aid his rivals 
have the wrong tires, but many also had 
gotten cooled off by the rain. 

Schumacher had waited in the pits 
until after the downpour, then went on 
the track for a solo lap to warm up his 
tires while everyone else was already on 
the starting grid. 

After a hot morning, there was a brief 
but hard shower less than 20 minutes 
before die start of die race. The rain 
lasted just 15 minutes and the sun shone 
brightly at the scheduled start, but the 
race still began behind the safety car 
because of the amount of water on the 

No passing was allowed for three laps 
as the care lapped in single file with 
Jacques Villeneuve and Jean Alesi 
ahead of Schumacher. Then the safety 
car went off, the real racing began and 
Schumacher took overi 

“It would have been very dangerous 
widiout the pace car,” Schumacher 
said. "There were still puddles on the 
track. Even with full rain tires it would 
have been bad" 

At the beginning of the fifth lap, 

Schumacher passed Alesi and'VBleh.- 
euve in the first two turns and built up a . 
lead of nearly six seconds by the end of 
the 6.968-kilometer circuit 

By die 10th lap, Schumacher was 
leading by 42 seconds. He increased his 
lead while others changed toes and lost - ' 
more ground . m Es 

The gap was more than a minute by - ‘ 
the 13th lap. Schumacher went in for the 
first of his two changes after 1 5 laps and 
the gap was cut to about 40 seconds. 

Hakkinen ’s third place is under a 
question mark. The fuel in his McLaren- 
Mercedes in Saturday's qualifying did 
not comply with regulations and he was 
initially put at the back of the starting 

The team appealed, allowing him to 
start in his original fifth position, and the 
sport’s governing body, the FIA. will 
review fee case. 

Heinz-Harald Frentzen of Germany 
in a Williams-Renault was fourth. Bri- 
tain's Johnny Herbert in Sauber-Pet- 
ronas was fifth. Villeneuve ended 

Schumacher now has a 12-poinr lead 
in fee drivers’ standings over Villen- 
euve before fee kalian Grand Prix Sept 
7. Frentzen and are Alesi are tied far 
third with 22 points apiece. 

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2 More World Records Fall in Cologne 

imenior flu-.] 

hmihrZr -, 


The Associated Press 

COLOGNE — The burst of world 
track records continued Sunday when 
Wilson Kipketer, a Kenyan-born Dane, 
lowered his own 800-meter mark and 
Bernard Barmasai erf Kenya pulverized 
fee 3,000-merer steeplechase mark at 
fee Cologne Grand Prix. 

The records came two days after the 
5,000- and 10,000-meter records were 
broken in Brussels, and less than two 
weeks after three new records were ser 
in Zurich. Both marks set Sunday im- 
proved on fee times in Zurich. 

Kipkerer ran a time of one minute, 
41.11 seconds to lower his record by .13 
seconds of 1:41.24 set in Zurich. 

Barmasai surged in the finish to push 
past a fellow Kenyan, Moses Kiptanui, 
and break the steeplechase record by 
more than three seconds, clocking 

Another Kenyan, Wilson Boit Kip- 
keter, held the record less than two 
weeks wife a rime of 7:59.08. 

Led by “rabbit” David Kiptoo. an- 
other Kenyan, who set a perfect pace in 

fee first lap, Kipketer burst ahead and 
easily beat his record. The previous 
record had stood for 16 years until he 
first equaled it earlier this summer and 
then finally broke it in Zurich. 

"The ‘rabbit’ may be perfect, but if 
you are not perfect, you won’t run a 
world record.” Kipketer said. 

Donovan Bailey of Canada, the 
Olympic champion, powered past three 
American sprinters to win fee 100- me- 
ter dash. 

Bailey, who was beaten by fee Amer- 
ican sprinter Maurice Greene for the 
gold medal at the World Championship 
earlier this month in Greece, clocked a 
fast time of 9.99 seconds into a head 
wind on a warm and muggy day. Greene 
did not run here. 

"No one can beat me here,” Bailey 
boasted later. "I spent a whole week 

preparing for this race, feat's why I was 
so fast. And in spite of a head wind.” 

so fast. And in spite of a head wind.” 

Tim Montgomery, fee bronze medal- 
ist in Athens, finished second in 10.01, 
while Dennis Mitchell was third in 10. 12. 
The third American in fee race, Vincent 

Henderson, was fourth in 10.24. 

In Brussels on Friday two Kenyans 
stripped Haile Gebrselassie of Ethiopia! 
of his most cherished records. 

Daniel Komen struck first on a hoti 
humid night, slicing 2.12 seconds off 
the 5,000-meter record that Gebr- 
selassie set just 10 days ago. 

Then, Paul Tergal beat the 10,000- ; 
meter record by 3.47 seconds, driven on - 
by fee rhythm of an African drum band 
and fee roar from 40,000 spectators in 
fee packed Kin g Baudouin Stadium. 

“I had no doubt. I was ready to do any 
sort of pace. I had no fear," Tergal said 
after setting the new world record of 26 ; 
minutes, 27.85 seconds. A 

Gebrselassie easily won fee 3.000- ’ 
meter event at fee Van Damme Me- 
morial track meet, but failed by 6 
seconds in his attempt to break fee 
world record held by Komen. After- 
ward, be blamed the humidity. 

There were no such excuses for the 
Kenyan pair, who ran solo for the last two 
kilometers of their races after leaving the 
opposition behind. 


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