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INTERNATIONAL 




The World's Daily Newspaper 


PUBLISHED WITH THE NEW YORK TIMES AND THE WASHINGTON POST 




New Surge of Panic Hits South Korea 

Frenzy Selling of Won Paralyzes Markets; 

5 More Merchant Banks Are Suspended 


p By Don Kirk 

Special ftf (he Herald Tribune 


SEOUL — - A week after Sooth 
Korea and the International Monetary 
Fund agreed on a record $60 billion 
bailout, mere were few signs Wed- 
nesday that Seoul’s financial exists was 
easing as the nation’s currency again 
plummeted to record lows. 

Capital markets here were all but 
paralyzed, with almost no one willing 
to sell dollars in exchange for won. The 
cuireray rapidly sank by its 10 percent 
daily limit after what securities analysts 
called desperate efforts on the part of 
nearly bankrupt South Korean compa- 
nies to buy op dollars to pay off debts. 

The government, meanwhile, 
fought ro bolster the currency by sus- 
pending five more merchant banks that 
bureaucrats blamed for touching off 
the selling frenzy. 

“There’s panic in corporate Korea 


and the government, ’ ’ said Daniel Har- 
wood, m a n ager of Hoare Govett’s of- 
fice here. “They’re doing every thing 
m a panic to try to get some money " 
Financial markets are “bracing for 
the worst,” said David Hale, chief 
economist at Zurich Kemper Invest- 
ments. Investors, he said, ‘ ‘aren’t will- 
ing to make any big commitments in 
Korea withoutmore evidence that they 
are ready to implement the IMF pro- 
gram.” 

I n New York, South Korea’s la mes t 
government-owned bank, Korea Devd- 
opownt Bank, ran into investor resis- 
tance to its attempt to sell $2 billion of 
tapds, but it denied that die sale was 
being canceled. JJP. Morgan Securities 
Inc., which is arranging the a gi* post- 
poned a conference caU with investors 

f amiHnr with the 

The 


by one day, people f amiliar wid 
planned sale told Bloomberg News 

See KOREA, Page 4 




rtul tWkrr/KrtTi. 


IT*1 C f*r»tkTT7 * ■ , . Qw Y«*n Konfl/Agcncr Fmt-frw 

Ji a UUNk. — A worried investor making a phone call 
Wednesday in front of the suspended Daehan investment 
bank tn Seoul as riot police stood by. Another customer of 
the bank, left. Feared she might have lost her life’s savings. 


Few Agree on How to End Asian Crisis; How It Began Is Clear 


U«S« Rejection of Seoul’s Appeal Raises Tension 


By David E. Sanger 

AW' York Times Service 


f 

y 


WASHINGTON — South Korea’s call this 
week for billions of dollars in direct financial help 
from the United States and Japan, and its im- 
mediate rejection by Washington, was the latest 
example of the brewing tensions between the 
United States and its ailing Asian allies over how to 
quell a financial crisis that refuses to be tamed. 

Time and again. Treasury Secretary Robert 
Rubin has said that the United States would only 
put American taxpayer dollars at risk as part of a 
“second line of defense,” backing up the In- 
ternational Monetary Fund and other interna- 
tional institutions. 

Mr. Rubin has made it clear that there will be no " 
repeat of the Mexican bailout, during which Pres- 
ident Bill Clinton made a risky run around Con- 
gress, committing $12 billion in direct aid to a 
neighbor. 

But throughout Asia, and particularly in South 


Korea, Washington ’s insistence on sc 
conditions far financial reform and its refusal lo 
put much of its own money at risk are breeding 
growing hostility. 

The fastest way to convince die markets that 
stability is around the comer. South Korea’s 

NEWS ANALYSIS 

officials reply, is a massive, unequivocal show of 
resolve from the world’s biggest superpower — 
the financial equivalent of the tens of thousands of 
U.S. troops that have kept North Korea contained 
for 45 years. 

But Mr. Robin has plenty of reasons for with- 
holding that unconditional support 

Ever since 1995, when Washington provided 
the first relief in the Mexican bailout, Mr. Rubin 
has feared that the United States was on the verge 
of becoming the world’s lender of last resort, the 

See TENSIONS, Page 4 


A Rehind-the-Scenes Look at Currency Drama 


By Jonathan Fuerbringer 

New York Times Service 


NEW YORK — In May, Japanese officials, 
concerned about the decline of the yen, hinted that 
they might raise interest rates. The threat never 
m aterialized. But it proved to be the first sign of an 
Asian flu that is soil spreading and has already 
prompted around $100 billion in international 
pledges for a cure. 

The Japanese threat shifted the decisions of 
global investors, who immediately began to sell 
Southeast Asian currencies, setting off a tumble 
not only in the currencies but in the local stock 
markets as welt 

Leapfrogging from Thailand to Indonesia to 
Hang Kong, the financial shivers eventually 
shook Wall Street, sending the Dow Jones in- 
dustrial average down a record 554 points on Oct. 
27. From its sickbed, Asia is now faced with a new 
year that promises very slow — if any — growth, 
painful bankruptcies and rising unemployment 


Speculators — and the hedge funds they man- 
age — have been singled out by Asian politicians 
and others as the proximate cause of the turmoil, 
which spread to South Korea and continues to 
rattle Japan. 

But the real story is much more complex, filled 
with bankers, corporate treasurers and mutual- 
fund managers from the region and around the 
world who, unlike speculators, were not trying to 
profit from the fall of the currencies but still 
contributed significantly to their declines. Joined 
by many local companies, these agents had a 
vested interest in keeping the currencies stable. 

There is no way to recreate the exact train of 
selling that pushed the currencies beyond the 
brink. But in interviews with bankers, econo- 
mists, currency .traders, portfolio managers 
hedge-fund executives and corporate treasurers ir, 
Asia and elsewhere, a picture has emerged of the 
sequence of events and the players whojjvgre 

See DRAMA, Page 4 


Yeltsin HI; 
Condition 
Said to Be 
‘Serious’ 

Kremlin Calls It a Cold^ 
But His Heart Surgeon 
Is With Him at Clinic 

By David Hoffman 

t*o.i/ungft>n Pev Service 

MOSCOW — President Boris 
Yeltsin was hospitalized Wednesday at 
a sanatorium outside Moscow, and two 
informed sources said Mr. Yeltsin had 
suffered another major bout of heart 
trouble. Mr. Yeltsin's spokesman an- 
nounced that the president was suffering 
an acute respiratory infection stemming 
from a cold. 

* ‘It's really very serious,* ' said one of 
the sources. “It's really the heart.” 

The source said he could not provide 
details on Mr. Yeltsin’s condition, but 
noted that the president's heart surgeon. 
Renat Akchurin, who performed a quin- 
tuple bypass operation on Mr. Yeltsin 
last year, was at the president's side. 

Sergei Y astrzhembsky. the presiden- 
tial press secretary, announced thar Mr. 
Yeltsin. 66, was taken from his res- 
idences Barvikha. a secluded rest home 
outside Moscow that also has a clinic. 

When Mr. Yeltsin suffered a heart 
attack in the summer of 1996, he was 
also treated ax Barvikha. His heart trou- 
bles were then attributed to a cold. A 
spokesman said there ere - -> plans to 
take Mr. Yeltsin to the Central Clinical 
Hospital, the main hospital used for the 
president. 

Mr. Yasnzhembskv said Mr. Yeltsin 
would remain at the clinic for 10 to 12 
days under doctors’ orders. He said the 
doctors had not excluded the possibility 
of influenza. He said Mr. Yeltsin’s tem- 
perature was slightly higher than noiroaJ 
. a nd he promised to make daily repeats 
in r Gnrthe president's condition. 

Mr. Yeltsin underwent the auinnmle 


eltsin underwent the quintuple 
heart bypass surgery on Nov. 5, 1996. 
a long period < 


Citing ‘Mad C ow’ Risk, EU Panel Seeks Ban of Beef on the Bone 


By Barry James 

International Herald Tribune 

BRUSSELS — A European Union 
scientific committee on Wednesday re- 
commended a wide ban on the sales of 
beef rib roasts, T-bone steaks and car- 
lain .other on-the-bone cuts because of 
the risk of transmitting “mad cow” 
disease. 

The scientific steering committee 
that advises the European Commission 
raid that meat sold on the bone, such as 
T-bone steak, should be banned in every 
country that has reported cases of 
bovine spongiform encephalopathy, the 
clinical name for mad cow disease. 


This followed a British decision to 
ban beef on the bone starting Tuesday 
because evidence had indicated a 
slight risk dial the disease could be 
transmitted to humans through bone or 
marrow. 

If EU governments agree to follow 
the committee's advice, T-bone steaks 
and similar meat would be banned in the 
three Benelux states, Ireland, France, 
Germany and Portugal, as well as in 
Britain. 

Butchers in Britain have reported 
panic buying by consumers seeking to 
purchase the ribs and steaks before the 
Dan goes into effect 

Theban has been another Wow for the 


AGENDA 


Group of Eight Targets Internet Crime 


WASHINGTON (AFP) — The 
world *s most powerful nations vowed 
Wednesday to get tough on criminals 
who use the Internet and other high- 
technology tools, approving a 10- 
poim plan' to stamp out cybercrime. 

Justice and industry ministers from 
the Group of Bight nations — Britain, 
Canola, France, Germany, Italy, Ja- 
pan, Russia and the United States — 
agreed on rhe campaign at the end of a 
two-dav conference here. 

The plan aims to crack down on the 
use or the Internet, and other ad- 


Books Page & 

Crossword.- Page 10. 

Opinion Pages »-9. 

Sports Pages 24-25. 


Sponsored Section 
CAREERS IN EUROPE 


Pages 19-23, 


The IHT on-line vV'.vw.ihl.Com 


vanced means of communication, for 

licking, as welTas such electronic 
fraud as theft of credit card numbers, 
money laundering and computerized 
piracy. 

“While the enactment and enforce- 
ment of criminal laws have been and 
remain a national responsibility, die 
nature of modem communications 
networks makes it impossible for any 
country acting alone to address this 
emerging high-tech problem,” the 
ministers said in a joint statement. 

PAGE TWO 

Saxony: Germany's New frontier 

THE AMERICAS Page 3m 

A Mystery Man in Bombing Trial 

EUROPE PagmS. 

Bosnia Ends Talks With Walkout 


Legitimacy Eludes Cambodian Leader 

m « — 1_ kin <n>Ia ie Ytilf 


Nearly five months after he took 
control of Cambodia in a coup, ruining 

_ a*, l .»i jo brin*» 


democracy to the country. 

Prime Minister Hun Sen’s campaign 


to gam _ 

a stone wall aod leaving Cambodia the 
orphan of Indochina. Many citizens 
are in despair as human life is again 
treated with contempt. Page 6. 


British farming industry, seriously hit 
by the global embargo on beef exports 
imposed by the commission last year 
after a massive outbreak of mad cow 
disease there. Britain has reported al- 
most 200,000 cases. 

Fanners have blockaded ports in 
Wales and Scotland, seeking to prevent 
imports of beef from Ireland, and the 
commission warned last week that it 
would take legal action againstBritain if 
it failed to ensure free trade. 

amplaining that the 
. push beef prices in 

_ to a 20-year low, instead of 
rising in the pre-Christinas season, as 
they usually do. 

Scientists maintain that mad cow dis- 
ease is transmitted to humans, where it 
is known as a new variant of Crentz- 
feldt-Jakob disease. The disease is 
caused by a little-understood agent 
known as a prion, which causes irre- 
versible and fatal deterioration of the 
brain tissue. 

Also Wednesday, the commission 
delayed putting into effect a ban oa beef 
products used in cosmetics and drugs 


lm 

B 


that could have affected an annual $4 
billion in imports from the United States 
and touched off a trade war. 

The steering committee said it might 
be possible to resume exports of de- 
boned meat from British cattle no older 
than 30 months if three conditions are 
met: 

■ Enforcement of a ban on meat and 
bon em cal in animal feed. 

• A system to trace and identify an- 
imals. 

• The slaughter of offspring of in- 
fected herds. 

The Meat Hygiene Service in London 
said that many abattoirs were failing to 
meet standards and that several of the 
British agency's inspectors had been 
menaced or attacked. 

The commission said it would delay 
until at least April 1 the imposition of a 
ban on tallow and gelatin, which are 
widely used in cosmetics and to make 
the casing for pharmaceutical cap- 
sules. 

The products are derived from boil- 
ing came carcasses that may include 
brains and other products, known as 


“specified risk materials,” that may be 
infected. 

The ban, which was to have gone into 
effect Jan. 1, could have hit U.S. ex- 
ports. Washington, which says it has 
□ever had a case of the disease, warned 
that it would retaliate in an unspecified 
way if its exports were affected. 

The commission delayed imposing 
the ban after governments failed to 
agree on a series of exemptions to it. 
Ice exemptions would have allowed 
the import of life-saving drugs and giv- 
en the pharmaceutical industry time to 
change man ufaemring processes to 
eliminat e any risk of transmission of 
the disease. 

The scientific commince also said 
that certain kinds of meat from sheep 
and goats should be excluded from the 
food chain if they are from one of the 
countries that had reported cases of the 
disease. 

The types of meat would include in- 
testines of sheep and goats of all ages 
and lungs, vertebral column and as- 
sociated nerve tissues of animals more 
than 1 year old. 


nfter a long period during which the 
Kremlin concealed his deteriorating 
medical condition. At one point, when 
Mr. Yeltsin had suffered a heart attack 
between two rounds of the presidential 
election, the Kremlin released a video- 
tape of him which had been heavily 
altered because he could not finish a 
sentence. 

The health of Soviet leaders was a 
closely guarded secret, but Mr. Yeltsin 
seemed to make a break with the past 
when he announced his decision to go 
ahead with the heart bypass surgery. 

Mr. Yastizhernbsky said the 'firs: 
signs of a cold were noticed while Mr. 
Yeltsin was on an official trip to Sweden 
last week. During the trip, Mr. Yelisin 
made several statements about military 
policy that his aides quickly had to 
modify. 

Alexei Venediktov, political com- 
mentator for Echo Moscow radio, said 
journalists accompanying Mr. Yeltsin 
on that trip noticed “the president w as 
not looking well” and ' ’that everything 
was far from all right.” 

“We kept asking those around the 
president" if his health was all right, 
Mr. Venediktov said Wednesday ia a 
broadcast Among those who were 
asked, he said, was Dr. Akchurin, who 
accompanied Yeltsin on the trip. He said 
Dr. Akchurin replied, "As far as I am 
concerned, he is all rigbL” 

See YELTSIN, Page 4 


Turk Declines to Whit for a Rebuke at Islamic Summit 


Ctm&kd b<t OirStttff From Dtspacbrx 

TEHRAN — President Suleyman Demirel of Tur- 
key plans to withdraw from a global Islamic summit 
meeting in Tehran, Turkish officials said Wednesday, 
apparently to avoid facing criticism of his country’s 
ties with Israel. 

Mr. Demirel was due to leave Tehran on Wed- 
nesday evening, the officials told The Associated 
Press. 

The prime minister himself denied reports that his 
early departure had been prompted by resolutions 


critical of Turkey adopted by ministers of the Or- 
ganization of the Islamic Conference. 

“No one should look for crisis,” he said. “The job 
is done and I am returning tn Ankar a- 1 ' 

The official Iranian press agency, IRNA, quoted 
him as saying, “The summit wants to solve problems: 
we should not seek to create new problems. ’ 

In Ankara, the presidential palace confirmed that 
Mr. Demirel was returning a day earlier thpn planned, 
but gave no reason. 

The three-day summit meeting will end Thursday 


with a closing session at which leaders of Muslim 
nations will issue several resolutions, including one 
mat criticizes Muslim countries that have military ties 
with Israel. There is only one. 

Mr. Demirel himself did not say when he would 
leave Tehran. But he defended his country’s military 
ties with Israel, saying thar their cooperation “does not 
pose a danger for any third country.'’ 

‘ Israel and Turkey have a military agreement, and 

See SUMMIT, Page 4 


A New China Embracing Nuclear Nonproliferation 

Jiang Generation of Leaders Displays a Foreign Policy Shift in Pact WUh U.S. Over Supplying Iran 


By Joseph Htchett 

International Herald Tribune 


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PARIS — Beijing’s habitual shmgging-off of 
Weston complaints made it all die more intriguing 
when Chinese negotiators agreed with alacrity this fall 
to cooperate with Washington on limiting nuclear 
cooperation with Iran, 

“I was surprised, frankly," an official of the Na- 
tional Security Council said, contrasting China's ap- 
proach this time with its tactics as recently as a year 
ago in international negotiations on a treaty banning 
nuclear tests. 

China now seems to be fundamentally c hanging its 
approach to formulating foreign policy, he said, ex- 
plaining that his surprise was partly due to the speed 
with which the change was taking hold, so soon after 
the arrival in power this year of a new generation of 
leaders under President lung Zemin. 

The new Chinese attitude surfaced as the U Hired 
States pursued a two-pronged diplomatic initiative 


with Beijing and Moscow to cut off Iran's covert 
program to build ballistic missiles and develop chem- 
ical. nuclear and biological warheads. While Russia 
■ was accustomed to arms control negotiations, even 
about proliferation, Chinese diplomats were new to 
this son of dialogue. 

Speaking last month, shortly after Mr. Jiang's state 
visit to Washington, the National Security Council 
official said that for the first time Beijing seemed to be 
focusing on longer-term goals in rhe world and even 
showing interest in cooperating on international se- 
curity where it serves Chinese policy. 

This pragmatic-sounding approach contrasts 
sharply with decades in which the Chinese leadership 
largely ignored concrete international problems, ex- 
cept for issues that touched on China’s sovereignty 
such as Taiwan. 


The old ways were often counterproductive. 

For example, China eventually agreed last year to 
join a test-ban treaty, but only after raising ideological 
objections that in the end helped pave the way for 


India’s refusal to sign. “If there was one thing that 
Beijing should have wanted, it was to close the door on 
Indian nuclear testing,” the U.S. official said. Instead, 
the Chinese stance produced the opposite outcome. 

This time, on frail, “We got them to see just how 
weapons of mass destruction in the Gulf jeopardized 
Chinese interests," a State Department official said. 

The logic was simple: China’s exploding energy 
demand makes the country increasingly dependent on 
oil from the Gulf. 

So, “If anything disrupted the supply lines, China 
would be very vulnerable,” the official explained. 

Beyond the Gulf factor, the Chinese apparently also 
were prompt to sacrifice their weapons supplies to Iran 
as the entry cost of engaging in a strategic dialogue to 
develop and shape China’s relationship with the 
United States, a Clinton aide said. 

Formally, this new dynamic fell into place at the 
Washington summit meeting, which President Bill 

See IRAN, Page 4 




INTERNATIONAL HERALD TRIBUNE, THURSDAY, DECEMBER XX, 1997 


PAGE TWO 


L:iurf« 


Awakening in the East / Germany's New Frontier 


Saxony Bridles Under West’s ‘Old-Fashioned’ Economic Model 


... Sm-s4 


D RESDEN — East Germans are still knocking 
down walls. Emboldened by their saccess in 
b ring ing down communism, they are now eager 
to dismantle what they see as a new barricade to 
their economic freedom: the costly, tightly regulated West 
German economic model that they inherited seven years 
ago with unification. 

“We are suffering from our ties to a federal state that 
handicaps US,” Sflid KajO Schommer, labor minis ter of tbe 
industrial state of Saxony in Eastern Germany. 

The largest and most economically viable of the five 
Eastern states, Saxony is “held hostage” by a system that 
inflan-^ labor costs to unrealistic levels and hinder s the rebirth 
of Eastern Germany, Mr. Schommer contended. Financing 
the Western-imposed system “is strangling us,” tie said. 

Evoking a maverick free- market spirit heard often these 
days from labor unions, business leaders and politicians 
here, Mr. Schommer vowed that “Saxony will go its own 
way/’ But while East Gomans flout West German rules 
and conventions. West Germans are fighting what many see 
as a rearguard action to preserve their half-century-old 
consensus-based economic model, showing repeatedly that 
they are unwilling or politically unable to reform the system 
despite an unemployment crisis and chronic deficits. 

The failure or Germany's “inner unification” can be 
traced partly to Saxony's battles with the West “This is a 
confrontation between East and West over which way to take 
this nation,” said Max Eli, director and chief economist of 
the Dresden campus of the Ifo economic-research institute. 

In the postwar West, tbe ideal of equality and consensus 
— enshrined in every institution from welfare, health care 
and wages to the constitution — provided a cherished sense 
of social peace. In the East, however, Bonn's cookie-cutter 
solutions interfere with Saxony’s home-grown tree-market 
recruitment policies and job-creation schemes, say local 
labor leaders, politicians and entrepreneurs. 

Saxons openly promote their labor as cheaper than the 
West’s, their workweeks as longer and their vacations and 
entitlements as fewer, often in defiance of West Germany’s 
labor regulations. In the West, politicians and unions ac- 
tively discourage overtime and want to shorten the 35-hour 
workweek; in die East, they have drawn it out to 40 hours or 
more. In addition, Saxony halVs at the Bonn-imposed 

minimum wage. 

Local unions are in open rebellion against their larger 
cousins in the West. With the help of organized later, 
industry in Saxony believes it is on the verge of smashing 
the wage cartel of the powerful IG Metall union cmce and 
for alL Saxons even attend fewer years of high school than I 
Western students and enter the job force earlier. 

Easterners cheer Saxony's state premier, Kurt Bieden- 
kopf, as a folk hero for his blunt criticism of Chancellor 
Helmut KohL “King Kurt,” a firebrand leader in the pro- 
reform wing of Mr. Kohl’s Christian Democratic Party, has 
become the champion of a radical solution to the chronic 
deficits in Germany’s state retirement system. 

Mr. Biedenkopfs plan would require Germans to use 
mutual funds, tbe stock market or financial advisers to plan 
their retirement. Tbe state cannot give everyone the same 
coverage anymore, Mr. Biedenkopf said. Mr. Schommer, 
the Saxony labor minister, said: “We must again allow 
inequality, both regionally and among incomes." 


By John Schmid 

International Herald Tribune 



InactionlwBcmonptmsiimswiUnv^thedailystxuggk- 

in foe East even tougher, Mr. Schommer said. Failure to act 
means mandato ry payroll deductions for peoaoos will auto- '■ 
matically rise to 21 percent of grosspay wart year, which ;■ 
Saxons dray as poison for the East Geraanmbor ;n»im . 

Pin.!* Koecher, chief pollster at the Allensbach polling • 
institute, said East Germans “have a widespread feeling of 
distance” from the social-market economy. 

The dominant Western notion of Easterners as unsuc- • 
cessfel subsidy-fed entrepreneurs who are slow to adapt is 
a “clicM cultivated in foe West,’ * said Mr. Eli of Ifo. One ; 
such Western-bred cliche is ostalgia, from the German ; 
word ost or “East” Tie expression conveys a clinging to - 
the practices of the communist past 
‘The train ostalgia does not apply* Klaus-Dietmar 

Henke, a professor at foe Hannah Arendt Institute of 
Modern G erman History in Dresden. '"The mote accurate fc 
fgrmc is Wesmlgia.” a. refusal of the West to reform its 
state -dispensed entitlements, he said. 

“It is the old West Germany that does not want to t 

change. The East already has changed,” Mr. Henke said. 

Dresdners exploits a competitive advantage to hire itew 
investment. The city was one of the forms - Soviet bloc s - 
centers for nucroetoctronics. Robotron supplied mainframes 
and personal computers to the Soviet bloc. " 

Saxony's government lures investors to the region with a ; 
promise to spare them West Germany’s notoriously tangled 
red tape. Judging by the growing number of high-technology 
mmpaniw thar haw , marie hig-tickct investments in Dresden, • 
foe pragmatic government approach already has yielded 
dividends in foe form of high-skill, high-technology jobs. 


* * 


“People here are more willing to change,” said Jens 
Drews, spokesman for Advanced Micro Devices Inc. of 
California, which chose Dresden to .build a $1.9 billion 
factory to design and manufacture microprocessors. 

Similarities to the American business - culture have 
helped draw a roster of American companies, Mr. Drews ; 
c»irj Americans now rank as the bieeesr foreign investors in ' 


Members of the IG Bau construction workers union holding a banner reading “Rap the Bosses 
on Their Knuckles ” at a demonstration in Dresden in June. A rebellion has been growing in 
the dynamic state of Saxony against regulations imposed by the government in Bonn. 


helped draw a roster of American — 
said- Americans now rank as the biggest foreign investors m ' 
Saxony, both in number and volume of investment. 

For the Saxons, their greatest successes to date lie in their ‘ 
disregard of wage equality in the West, a system that they 
charge feeds an unemp loyment rate in the East of 18.2 ■ \ 
percent, double the Western rate of 9.5 percent 
Organized labor in West Germany is concerned about 
Dresden’s latest rebellion. After years of loosening the grip ' 
of IG Metall, foe powerful union in foe West, the Saxon I 
Metalworkers Employers Federation wants to break free 
altogether. In an agreement with a small rival union, the ; 
Christian Metalworker Federation, the employers group j 
forged a contract of elastic wages and terms that allows 20 
percent cuts in labor costs from IG Metall’s levels. ‘ I 
Seeking to preserve its wage-setting “monopoly,” IG ; 
Metall sued in a West German court, seeking to nullify the 
contract, said IG Metall’s chief spokesman, Joerg Bar- ^ , 
czynski. The union argues that a “tray” union has no right j 
to set wage benchmarks for the whole region. 

“The Kj Metall contract just does not fit here,” said ' 
Andreas Winkler, head of the employer federation. IG 
Metall last month delayed foe next hearing on the issue, ; 
fearful of a precedent-setting defeat, Mr. Winkler said. “IG 
Metall is afraid that the new methods in the East could be . 
successful,' ’ he said. 

“People in Bonn and the old states can only dream of 
what we already have in terms of mobility, flexibility and 
new thinking ,” Mr. Schommer said. • 


Late last week, Mr. Biedenkopf also began lobbying for a 
radical decentralization of Germany’s federal social-security 
programs, depumding that tbe adminis t ratio n of such pro- 
grams shtft to the states, allowing for regional differences. 
His appeal was quickly rejected by Mr. Kohl's ministers. 

The tone of rebellion began last year. In defiance of a 
ruling by the European. Union, which had the support of 
Bonn, Saxony’s government channeled “illegal* ’ taxpayer 
subsidies to help save jobs at Volkswagen assembly plants 
in Mosel and Chemnitz. Saxony refused to back down, 
creating an irritating problem that took months for the EU 
and Bonn to resolve. 

The proud Saxons have long had a rebellious streak. As 
early as 1982, armed only with candles, foe residents of 


electronics combine, once foe International Business Ma- 
chines Carp, af Eastern Europe. 

Mr. Adenauer — foe great-nephew of former Chancellor 
Konrad Adenauer, the architect of foe postwar German 
consensus model — said the East’s economy was stag- 
nating under a petrified system. His uncle’s achievement 
has been “bastardized” by West Germany's “beer-bel- 
lied” generation, Mr. Adenauer declared. 


T HE once communist East effectively has reversed 
roles and is now telling the West to modernize its 
economy. In a speech last month in Eastern Ger- 
many, Hans-Olaf Henkel, president of the German 
Industry Federation in Cologne, implored West Germans to 
copy the innovations percolating out of Eastern Germany. 

The West, however, shows no sign of listening. “The 
other Germany” garners little attention from candidates 
campaigning for the national elections scheduled for 
September 1998. 

Frustration runs deep, said HartmutPaui, president of tbe 
Dresden Chamber of Commerce. Mr. Paul said East- West 
tensions dominated foe agenda of each meeting of the 
business community. 


Dresden opened foe civil rights movement that eventually 
toppled foe hared regime of East Germany. 


toppled the hared regime of East Germany. 
Today, East Germans claim credit for : 


Today, East Germans claim credit far striking blows 
against foe German “social-market” model with a force 
well out of proportion to foe East's economic strength. 

“In the west, they axe afraid of foe competition that 
comes from tbe East,” said Peter Adenauer, a computer 
entrepreneur transplanted from West Germany who runs 
the last surviving part of the Dresden-based Robotron 


> #»* 


nos . 


s Shun 


TRAVEL UPDATE 

Singapore Airport’s Fast Lane 


In Wake 


-»;r: 


■Tr.'l hr'\:t.c ?ni nt :*rc 7 its yrisq el: ir'i r.crn^H 

Tuvmtr - n 


ans Changes in Design 


.. *-xm 


SINGAPORE (Reuters) — Frequent travelers residing in 
Singapore will be able to clear immigration at Changi airport 
in seconds starting next week, the Immigration Department 
said Wednesday. 


By Matthew Wald 

New York Times Service 


Starting Monday, travelers can apply for a Checkpoint 
:cess Card, costing 30 Singapore dollars ($18), that will use 


Access Card, costing 30 Singapore dollars ($18). that 
thumbprints and scanning technology. 


The new high-speed rail link between Paris and Brussels 
was inaugurated Wednesday by King Albert II and Queen 
Paola of Belgium. The service, known as Thalys, will open to 
the public Sunday. (AFP) 


The Louvre museum in Paris reopened to foe public 
Wednesday after museum guards and reception staff agreed to 
end a strike in support of a grievance by workshop employees. 

(AFP) 


Tel Aviv trash collectors agreed to return to work, ending 
a two-week strike over privatization plans. (AFP) 



BALTIMORE — In an ef- 
fort to prevent explosions like 
foe one that caused foe crash 
of TWA Flight 800, officials 
at Boeing Co. say that foe 
design of foe company's jet- 
liners needs to be changed to 
guard against the build-up of 
flammable fumes. 

Although foe cause of the 
explosion on tbe Boeing 747 
has still not been determined, 
the company’s statement 
Tuesday was a clear departure 
from a 40-year-old principle of 
commercial aviation design. 

Until now, Boeing and oth- 
er manufacturers had de- 
signed planes to keep all pos- 
sible ignition sources of an 
explosion — electrical sparks 
or spots of extreme heat — 
away from flammable fuel 
vapors, an approach endorsed 
and enforced by the federal 
government. But Tuesday, 
the manufacturer said that ap- 
proach was not sufficient and 
that it was researching pos- 
sible ways of reducing the ac- 
cumulation of dangerous va- 
pors in fuel tanks. 

Boeing's statement, which 
came on foe second day of 


hearings by the National 
Transportation Safety Board 
into the July 1996 crash that 
killed 230 pa>ple, was echoed 
by federal aviation regulators. 

This put both Boeing and 
the regulators more closely in 
line with safety board inves- 
tigators who have demon- 
strated recently that explosive 
conditions are far more com- 
mon than many people had 
believed. 

“I don’t know when the last 
time was that we had a shift 
like tins,’ ' said Douglas Webb, 
a spokesman for the company, 
which is foe world's dominant 
producer of civil aircraft 

Daniel Cheney, a Federal 
Aviation Administration ex- 
pert in propulsion systems, 
said that “ever since aviation 
began,” designers had simply 
assumed that foe fuel tanks 
held a flammable mixture and 
bad designed planes to pre- 
vent sources ot ignition. 

That assumption * ’has been 
successful but not successful 
enough,” he said. Now, he 
added, the government and 
airlines would look for ways 
to reduce foe flammability of 
vapor in foe tanks. 

Stuart Matthews, president 
of the Flight Safety Founda- 


tion, a nonprofit group, said 
Boeing's statement was sig- 
nificant. 

The investigators are ac- 
knowledging that they do not 
know foe cause of the crash, 
Mr. Matthews said, “but they 
decided, belts and braces are 
better than just belts.” 

In fact, foe hearings have 
not thus far shed much light 
on foe question of wbat set off 
foe tank. Investigators have 


laid out how a delay on the 
ground at Kennedy Interna- 
tional Airport, on a hot July 
night, meant that heat from 
foe air conditioning Systran 
wanned foe fuel to the point 
where the fumes reached an 
explosive concentration. 

But foe statements move 
two key players a long way 
toward the safety board's 
long-held position that while 
the cause of foe explosion is 


still a mystery, steps should be 
takes to ait the chance that a 
spark could set off an explo- 
sion. In particular, foe safety 
board has urged that a system 
be devised to mject an inert gas 
into foe center feel tank as it is 
emptied to prevent the buildup 
of explosive gases. 

But the Federal Aviation 
Administration, Boeing, foe 
airlines and independent avi- 
ation experts all remain leery 


of injecting inert gas. That is 
done on some military pianos, 
but no commercial systems 
exist for doing it on civilian 
planes, experts said, and in- 
stalling systems to do so would 
be slow 3nd costiv. and could 
introduce new safety hazards. ^ 
Whatever system is ulti- 
mately chosen will apply not 
only to planes still on the 
drawing board but also to the 
thousands already in service. 


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INTERNATIONAL HERALD TRIBUNE, THURSDAY, DECEMBER 11, 1997 


THE AMERICAS 


\ iy* 

FBI Chief Tries to Soothe Republicans Over Memo to Reno 


POLITICAL NO i E 


| The Associated Press 

' ~ Freeh, the 

. FBI Director, lold a House panel Wed- 

;n«day that he would like to avoid a 
•dispute with Republican lawmakers 
.about an internal memorandum calling 
;for the appointment of an independent 

■ prosecutor in the campaign- finance case, 
! and he said he might be able to provide 
; more details about the document 

. Mr. Freeh told the House Govem- 
; meat Reform and Oversight Committee 
Mhat Attorney C5eneral Janet Reno had 
.asked him to tell the panel “that her 
; lawyers would be pleased” to discuss 

■ the issue with the committee's chief 
vS counsel, Richard Bennett. 

"I think for the good of the process 

• and because 1 wrote the memo, it r s much 
, more preferable for us to work that out,” 
; Mr. Freeh said of the dispute over die 

■ document, which the panel had sub- 
; poenaed from the Justice Department. 

; Ms. Reno, w ho ruled against Mr. 

. Freeh's recommendation that she seek an 
; independent counsel to investigate fund- 
-raising calls by President BifiCUnton 
. and Vice President A1 Gore, 

; her decision at hearings Tuesday, 
j Representative John Mica, Repub- 
, lican of Florida, who on Wednesday 
{repeated his threat to seek co ntem pt 

1 citations against Ms. Reno and Mr. 

,' Freeh for disobeying the subpoena, told 
| Mr. Freeh, “I was glad to hear your 

• statement this morning'* signaling a 
-■ ! willingness to work out the dispute. 

* j Mr. Freeh did not give details of how 
t the Justice Department might seek to 
j resolve the issue. But the FBI director 
| said the agency hoped to avoid cir- 
, cu instances that “impact adversely on 
; what you expect to get from us,” while 
-allowing the Justice Department “to 
, protect some critical parts of an ongoing 
; case.” 

■ Representative Dan Burton, Repub- 
! lican of Indiana, the panel’s chair man, 

- said a contempt citation was moot be- 
■‘ cause of “the negotiations that will be 
| taking place.” 

- He declined to give details saying 
! “members of the committee will be 
j informed before we contemplate taking 
•any action.** 

J Despite their disagreements over an 
| independent counsel, Ms. Reno and Mr. 
> • Freeh agreed that the FBI director’s 
■ memo explaining his recommendation 
{ should not be released as they pursued 

• investigative leads in high places. 

2 Mr. Freeh said his agents had never 

- been turned down in requesting to in- 

■ terview top Clinton administration of- 


ficials, but he complained that there had 
been many delays in getting documents 
from the White House, “fm not con- 
fident we have all the documents yet,” 
he said. 

Information contained in Mr. Freeh's 
memo could be helpful to potential tar- 
gets of the investigation, said the at- 
torney general and me FBI director. 

Ihe committee is also focusing on the 
Justice Department, in an investigation 
of a former Agriculture Department 
chief of staff who was convicted in a 
case brought by Donald Smaitz, an in- 
dependent counsel. 

Mr. Smaitz — who was expected to 
testily after Mr. Freda — complained 
that the Justice Department decided not 
to prosecute Ronald Blackley, who was 
chief of staff for fanner Agriculture 
Secretary Mike Espy. Mr. Smaitz also 
said the Justice Department opposed 
Mr. Smaltz’s court application to pro- 
secute Mr. Blackley, who was convicted 
of three counts of lying to hide $22,000 
he received from agribusiness concerns 
in Mississippi that received $400,000 in 
federal subsidies. 

“There was never any effort to ob- 


struct his investigation,” Ms. Reno told 
tbepanel “And I regret that he even has 
concerns that there were." Besides, she 
added, Mr. Smaltz’s subsequent pros- 
ecution of Mr. Blackley was on different 
charges than those pursued by Justice 
Department 

Regarding the fund-raising investi- 
gation, Mr. Burton tried to get Mr. Freeh 
to say that he based his recommendation 
on the belief that Ms. Reno had a con- 
flict of interest in investigating top ad- 
ministration officials. 

I d stead, Mr. Freeh repeated several 
times: “There were several bases for 

my decision.” 

He cried to assure skeptical Repub- 
licans that “no area of this investigation 
is closed,” including telephone fund- 
raising by Mr. Clinton and Mr. Gore. He 
said those calls like many other trans- 
actions continue to be looked at under 
laws other than the 1 14-year-old statute 
that Ms. Reno concluded they did not 
violate. That statute prohibits soliciting 
contributions in federal offices. 

“The FBI is not being impeded in any 
way in conducting this investigation,” 
Mr. Freeh said. 



Jntn-NsMuA^i-'Ap-nn Ihiw|\iw 

Lottis Freeh making a point Wednesday during testimony before the panel. 


In Bombing Trial, Defense Focuses on Mystery Man 


By Jo Thomas 

New York Tunes Service 


DENVER — Morris John Kuper Jr. 
was late for work. Mary Martinez was 
stopped at a red light. Darvin Bales had 
just hired a dishwasher at his waffle 
shop. 

It was at these moments, days and 
miles apart, that each person would later 
testify that he or she saw a man re- 
sembling John Doe No. 2, die O klah oma 
City bombing figure who has never been 
identified ana may not even exist 

But John Doe No. 2 has always been in 
the background of the case. Now lawyers 
for Terry Nichols, charged with murder 
and conspiracy in the April 19. 199S, 
bombing that kilted 168 people, have 
brought John Doe No. 2, and the people 
who say they saw him, to center stage. 

Some of their stories seem contra- 
dictory, and others seem impossible. 
But Mr. Nichols's lawyers appear to 
hope that convincing jurors or the ex- 
istence of John Doe No. 2 will cast 
enough doubt on the government's cir- 


cumstantial case to acquit their cHem. 

Timothy McVeigh, who was con- 
victed on charges identical to those 
against Mr. Nichols and sentenced to 
death, was helped by John Doe No. 2, 
and possibly others, defense lawyers 
say, but not by Mr. Nichols. 

The government handed Mr. Nich- 
ols's lawyers this defense, when, in the 
weeks after the bombing, they circu- 
lated a wanted poster they identified as 
John Doe No. 2. 

Die first description of John Doe No. 
Z along with an accurate description of 
Mr. McVeigh, came from a mechanic 
who waked at the Junction City , Kansas, 
shop where on April 17, Mr. McVeigh 
rented the truck mat carried the bomb. 

John Doe No. 2, thick-necked, 
square-jawed and dark, became one of 
the most recognized “wanted” faces in 
America. Federal agents and police of- 
ficers questioned dozens of look-alikes 
and received more than 10,000 tips. 

By June 1995. however, investigators 
realized they were mistaken. The de- 
scription matched a Soldier with no con- 


\Latinos Shun California Republicans 


seemed like a close race for 
re-election against the state 
treasurer, Kathleen Brown,. 


position on illegal immi- 
gration was widely con- 
sidered a potential plus 
among conservative Repub- 
lican primary voters. 

But now Mr. Wilson’s 
short-term strategy seems to 
be causing long-term head- 
aches for his party. At least 
one statewide poll shows 
Dan Lungren, the state at- 
torney general and the Re- 
publicans* presumptive nom- 
inee for governor next year, 
drawing only about 14 per- 
cent of the Hispanic vote. 

That is an ominous pros- 
pect for any party in a state 
that is poised to become the 
first on the mainland where 
non-Hispanic whites are a 
minority. The national im- 


• *. 


tir i-i * .-tV* 






ik-: 

BL-ii 

mm 


By Todd S. Purdum 

New I«jrt Dmes Sorrier 

* ■■*' > r* t reasure r , Munte c n iwwn, 

LOS AnGelIs ~ TfkT. acaoa- 

Caiifomia Republican Party, paign for the presidency ami 

# the mighty army that helped * ” ‘ 

propel Richard Nixon and 
Ronald Reagan to the White 
House, now finds itself fa- 

' cing a big problem: It is rap- 
, idly losing ground among the 

• fastest-growing group in the 
* . * electorate of the biggest 
y ‘ . state, Hispanic voters. 

, Expressed in either Eng- 
i lish or Spanish, the arithmetic 
is clean By 2025, the Census 
Bureau projects that the His- 
panic share of California’s 
- population will rise to 43 per- 
cent, from just under 30 per- 
cent now. That will be an 
-increase of .wine 12 million 
people and the largest such 
gain in the United States. 

By 2000. Hispanic resi- 
dent's arc expected to account 
for nearly 30 percent of the 
voting-age population, al- 
though citizenship, yoter re- 
gistration and participation 
. lag well behind that level. 

’’ ' Republicans, burned by a 

backlash against Governor 
Pete Wilson’s strong stands 
against illegal immigration 
and affirmative action, have 
seen their share of the His- 
panic vote slide sharply. 

When he was first elected 
in 1990, Mr. Wilson won 
about 44 percent of the His- 
panic vole. That dropped to 25 
percent in 1994 when he cam- 
paigned aggressively for Pro- 
position 187 . a measure to cut 
off public services to illegal 
immigrants that was passed 
by voters but has since been 
blocked in federal court. 

; Dtcre was a political <ase 
to be made for his stance: Mr. 

Wilson, his popularity buf- 
feted by the state’s economic 
downturn, was trying to so- 
lidify his base among white 
Voters in what initially 


plications for the party are pattern far the national party, 
also sobering, both because Many Republicans are con- 

of pdi^ania’-s-elcctof^- ipr ^ cemed that a California ballot 
podance’as thelargesl .state _ proposal to end bilingual edu- 


and because of growing His- 
panic populations in states 
titan Texas and Florida to 
New Jersey and Illinois. 

“The trend is obvious and 
the political danger is real,” 
Stuart Spencer, one of die 
state's most respected Re- 
publican strategists, warned 
m an open memo to pasty 
leaders 10 days ago. He wrote 
that the party risks "political 
suicide and dooms itself to 
pamanept minority status in 
California” if it does not 
reach out to Hispanic voters. 

Nationally, about a million 
more Hispanic voters turned 
out in 1996 than in 1992, and 
Mr. Spencer is not alone in his 
determination to keep Cali- 
fornia, so often a national 
bellwether, from setting the 


cation in the public schools, 
which is sponsored by Ron 
Unz, a multimillionaire soft- 
ware e n trepreneur and farmer 
Republican gubernatorial 
candidate, will further alien- 
ate Hispanic votes. 

Party regulars endorsed 
die measure, which is expec- 
ted to qualify for the ballot 
next year, at their state con- 
vention this falL 
Die problem is all the 
more frustrating to many Re- 

S bticans because the party 
s shown in recent contests 
that it r an make inroads 
among Hispanic voters. 
Mayor Richard Riordan of 
Los Angeles, a Republican, 
won re-election last spring 
with the support of 60 per- 
cent of Hispanic voters. 




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nectioo to the bombing. Private Todd 
Bunting of the army, who bad come into 
the truck rental shop the day after Mr. 
McVeigh. Prosecutors conceded that 
others might have been involved, but 
said there was no John Doe No. 2. 

Those who said they saw him. pros- 
ecutors have said, might have seen other 
soldiers from nearby Fort Riley. Kan- 
sas, with other Ryder trucks, or they 
may have been influenced by having 
seen the wanted poster. 

Lawyers for Mr. Nichols contend that, 
once they had arrested Mr. McVeigh and 
Mr. Nichols, federal investigators lost 
interest in other suspects and turned a 
deaf ear to witnesses with other infor- 
mation. So Mr. Nichols’s lawyers de- 
cided to call these witnesses instead. 

Darvin Ray Bates, once the mayor of 
Waurika, Oklahoma, told the jury that 
about a month after the bombing, he 
hired a drifter to work as a dishwasher at 
his Old South Waffle Shop, in Duncan, 
Oklahoma, about 75 miles (120 kilo- 
meters) southwest of Oklahoma City. 
The man. who Mr. Bates called John, 


disappeared after Mr. Bates told him he 
looked exactly like John Doe No. 2. 

Mr. Bates said that when he called the 
FBI, an agent “stated they had the two 
arrested that they needed in the case, and 
if they needed additional information 
they could call me." They never did, he 
said. 

Mr. Kuper. a computer specialist, said 
he called the FBI on April 21, two days 
after the bomhing, to describe two men 
he saw getting into an old car across the 
street from his parking lot at Kerr-McGee 
Corp„ an hour before the bombing at 
8:02 AAA One of the men looked like 
Mr. McVeigh, the other could have been 
John Doe No. 2. It was months, he said, 
before be was interviewed by the FBI. 

Mrs. Martinez, an obstetrical nurse, 
said she was stopped at a red light in 
Junction City on the morning of April 
17, two days before the bombing, and 
noticed a large Ryder truck waiting to 
turn left on the other side of the in- 
tersection. The driver, she said, looked 
like Mr. McVeigh. She said the pas- 
senger appeared to be Mexican. 


Away From Politics 


• To the cheers of onlookers, a New 
York mao who was about to have his car 

into the tow truck and sped o£^ with^his 
Chevrolet Celebrity trailing. Police 
found the $47,000 tow truck, but are still 
looking for die man. (AP) 

• A one-day strike left about 90 per- 

cent of Chicago’s 5,700 cabs idle as 
drivers protested a proposal to increase 
penalties for cabbies who turn down 
customers or refuse to drive in certain 
neighborhoods. Six cabbies have been 
slain over the past year. (AP) 

• Two-thirds of U-S. hospitals that 

treat mental patients “dump” those 
who are unable to pay on other facilities, 
a study found. (AP) 


• An attempt to perform an uncom- 
mon but permissible sharp right turn led 
to the September crash of a B-1B 
bomber that killed all four people 
aboard, the air force concluded. (AP) 

• A 7-year-old boy who was at an 

Inglewood, California, park registering 
for a basketball league was shot and 
killed, and his infant brother was 
wounded. They were caught in the 
crossfire of what the police believe was 
a gang-related shooting. (AP) 

• A drifter who said he would have 

kept on killing if he had not been caught 
was executed in Huntsville, Texas, for 
killing a police officer. Texas was one of 
three states that had sentenced Michael 
Lee Lockhart, 37, to die. (AP) 


Public Evenly Split 
On Special Counsel 

NEW YORK — The American 
public is evenly divided over 
whether an independent counsel 
should be appointed io investigate 
Democratic fund-raising activities, 
according to the latest New York 
Times/CBS News Poll. 

Forty-six percent of 1,016 adults 
interviewed Saturday through Mon- 
day said that an independent coun- 
sel should be appointed, while a 
statistically indistinguishable 49 
percent said the investigations now 
being conducted by Congress and 
the Justice Department were 
enough. 

The nationwide telephone poll 
had a margin of sampling error of 
plus or minus three percentage 
points. 

There is a strong strain of par- 
tisanship in the public's feelings on 
this issue. Two-thirds of Repub- 
licans in the poll favor an inde- 
pendent counsel, while two-thirds 
of Democrats say the current in- 
vestigations are sufficient. (NYT) 

Clinton Speaks Out 
On Human Rights 

NEW YORK — President BUI 
Clinton says that promoting human 
rights around the world will con- 
tinue to be a “central pillar” of 
U.S. foreign policy. 

In a speech to diplomats and hu- 
man rights activists, Mr. Clinton 
defended his administration's re- 
cord in fighting for freedom and 
democracy overseas by pointing to 
interventions in such strife-tom na- 
tions as Bosnia. And he warned that 
“human rights are still at risk from 
Burma io Nigeria, from Belarus to 
China.” 

“We continue speaking out for 
human rights without arrogance or 
apology,” Mr. Clinton said at a 
reception marking the anniversary 
of the Universal Declaration of Hu- 
man Rights. “As long as America 
is determined to stand for human 
rights, then free people aU around 
the world will choose to stand with 
America.” 

The White House viewed the 
president’s remarks as the most 
comprehensive exposition yet of 
his views of the nexus between 
human rights and foreign policy, as 
one senior official pnt it, and a 
reaffirmation of his commitment to 
those issues in his dealings with 
foreign leaders. (WP) 

Quote /Unquote 

Don Eberly. director of the Civil 
Society Project, a nonprofit re- 
search group in Harrisburg, 
Pennsylvania, on the decline of ci- 
vility even at the local level of U.S. 
political life: “There was this ro- 
mantic view that local institutions 
would reflect the local consensus. 
In fact, they tend to reflect the same 
divisions that exist in the larger 
society. We’re seeing a devolution 
of society’s culture wars." (NYT) 


Traveling 
to Israel? 


The International Herald Tribune is now 
printed in Tel Aviv and includes a local 
section in English from Ha'aretz, Israel's 
leading Hebrew newspaper. 


Ask for it 

on board , at your hotel 
or at all quality newsstands. 


t- : _ —■ 

■ MBS’ ' 


HAARETZ Ttfl 


Theurr.- Mario/ AU 
Mo*/ TV & W* 


b ®- 00 New hopes for peace 
! VTt: 1 V wrewrimmL m* * -t na an 'rsb: 


China Saltan- 



THE WORLD’S DAILY NEWSPAPER 







-PAGE 4 


INTERNATIONAL HERALD TRIBUNE, THURSDAY* DECEMBER 11* 1997 


JR 


ASIA/PACIFIC 


2 Issues Hold Up Breakthrough to a Climate Treaty 


SUMMIT: Turk Heads Home 


By Joby Wanick 
and Kevin Sullivan 

Washington Past Service 


“ KYOTO, Japan — U.S. and European of- 
ficials said Wednesday that negotiators were 
1 on the cusp of agreement on a historic treaty to 

* combat global wanning as a contentions 159- 
' nation climate conference here continued into 
'an extra day. 

The officials said they had made significant 
progress on an array of issues, especially 
. among several key participants: the United 
States, the European Union and Japan. And, 
after 10 days of intensive wrangling, there was 
‘ brood agreement that the conference would 
^conclude with an accord that calls for the 
1 world's industrialized nations to make legally 
binding cuts in emissions of the '‘greenhouse 
gases’* that many scientists con trad cause 

1 global war min g 

* [But two major issues were holding up 
’ agreement Thursday morning, news agencies 

reported They were a section involving com- 
-mitmeats by the developing world to the 
: global wanning fight and the use of so-called 
emissions trading under which countries 


could sell “pollution** rights under their 
agreed emissions levels. 

[Developed countries, particularly the 
United States, fought for the preservation of 
language on voluntary participation of de- 
veloping countries in the reduction of green- 
house gases. Developing countries wanted die 
paragraph oat because they say they should 
not take part in reductions at this time while 
their economies are still growing. 

[On the issue of emissions trading, a 
Chinese delegate said that po one should seek 
to tell the conference “you agree to this now, 
we will tell you tomorrow or next year” how 
it works. “That is not a serious attitude.”] 

There was more optimism Wednesday 
morning after progress was made between flic 
United States and other delegates. 

“As the sun has risen over Kyoto this 
morning, we have reason to be optimistic,” 
said Senator Joseph Liebeanan, Democrat of 
Connecticut, a prominent participant in the 
talks. “We have made significant steps for- 
ward in the long march to protect our Earth and 
its people.*' Although details of (he final 
agreement were unclear Wednesday after- 
noon, several officials said it would call for the 


United States to make significantly deeper cuts 
in gas emiftriflna than originally proposed by 
President Bill Clinton, who called ftsrredncmg 
such emissions to their 1990 levels by 2012. 

Wednesday, Representative Henry Wax- 
mao, a California Democrat who is observing 
the negotiations, said the United Stales was 
close to agreement on a further redaction of at 
least 6 percent below the 1990 levels. 

Mr. Waxman said the EU was ready to 
match the U.S. cut, a sharp shift from its 
original proposal to cut 1990 emissions levels 
by 15 percent. Japan, another important play- 
er in the negotiations, would cut its emissions 
by at least 5 percent, Mr. Waxman said. He 
added that all those figures were nrinimnms 
and that cuts coaid be deeper when a final 
agreement emerges. 

As the broad outlines of a deal emerged 
Wednesday afternoon, some U.S. environmen- 
talists hailed toe news as a victory, while rep- 
resentatives of steel, coal, ekctric-powcr and 
other industries that create most greenhouse 
gases said they were bitterly disappointed. 

•' ‘It’s not everything we hopedfor” bat it is 
a “huge accomplishment in terms of pro- 
tecting the environment,' ’ said John Adams, 


executive director of the Natural Resources 
Defense Council 

“They’re in a free fall; the only salvation 
for jobs in the U.S. is when this thing ends,” 
said William O’Keefe, chairman of the Global 
Qimate Coalition, a group of powerful Amo > - 
iean industries that have spent millions of 
dollars to block any legally binding treaty on 

global wa nning 

Mr. O’Keefe said the weary delegates in 
Kyoto had given in to the temptation to reach 
an agreement — - any a gr eement — without 
stopping to consider the consequences. 

But reaction on both sides was far from 
uniform, even among allies. Some environ- 
mentalists complained that die compromise 


ine efforts to fight global wanning. 


“The objective here is to reduce greenhouse 
gases, and we’re not convinced that this 
agreement would do that,” said A d a m 
Markham of the World Wildlife Fund- 
Mr. Markham said toe agreement as it now 
stands would allow UJS. companies to engage 
in projects aimed at reducing emissions w 
developing countries without cutting their 
own emissions at home. 



A Russian commando taking position to seize the hjjacker Wednesday. 

Commandos in Moscow Seize 
Hijacker of Russian Airliner 

metyevo Airport outside Moscow, 
whether the hijacker was 


Reuters 

MOSCOW — Russian commandos 
seized a man who hijacked a Russian 
passenger plane with about 140 
people aboard Wednesday and freed 
the passengers and crew, the head of 
the Federal Aviation Service said. 

The official, Gennadi Zaitsev, said 
that the hijacker was detained when he 
emerged from the Ilyushin -62 airliner 
for talks after it landed at Sbere- 


Asked whetner me miacn 
armed, Mr. Zaitsev said: “He was 
wired up.” He appeared to be re- 
ferring to explosives. 

Although the Interfax press agency 
identified the hijacker as a 60-year-old 
pensioner, officials did not confirm 
the report 

The plane was hijacked ra route 
from Magadan to Moscow. 


YELTSIN: He Is Said to Have More Heart Trouble 


Continued from Page 1 

this agreement will contin- 
ue,” hesaid. 

A spokesman for the con- 
ference, Mohammed Javad 
Zarif, said an early departure 
from the s ummit meeting 
should notbe misconstrued. 

“I believe that heads of 
state have their own sched- 
ules and make time for vari- 
ous engag ements.” Mr. Zarif 
said. “And I thinkitshouldbe 
seen in that light. ” 

Still, Mr. Demirel ’ s actions 
hi g hli ghte d the divisions 
within the organization, a di- 
verse group of 55 countries 
thatarebound only by a com- 
mon faith. . 

Arab states have strongly 
criticized two military agree- 
ments that Turkey signed 
with Israel in 1996, and that 
will be reflected in a reso- 
lution that the leaders are ex- 
pected to endorse Thursday. 

But in pre paring the draft 
resolution, officials reached a 
compromise under which 



Continued from Page I 

One of the two informed 
sonrees, a diplomat, said h ap- 
peared that Mr. Yeltsin had 
suffered a heart attack “or 
something close u it” The 
source did not have further in- 
formation but said it appeared 
Mr. Yeltsin was far more seri- 
ously ill than the Kremlin an- 
nouncement suggested. 

The second source, who is 

close to tile gov ernme nt, also said 
the outlook was very serious and 
that Mr. Yeltsin did not just have 
a cold. He said the information 
about Mr. Yeltsin was being kept 
“secret.” 

A third official, a Western dip- 
lomat, said it was known that Mr. 
Yeltsin had held phone conver- 
sations alter being taken to Bar- 
vikha, which would suggest he 
was not incapacitated. Bat, this 
source said, the extent of his ill- 
ness was not clear. 

The Kremlin announced that 


Mr. Yeltsin had postponed plans 
to attend a “roundtable” on 
Thursday with other political 
leaders, including the commu- 
nists, to discuss their long-stand- 
ing differences over whether 
Russia should allow land to be 
bought and sold. 

Mr. Yeltsin also canceled 
plans to attend c ere monies Bi- 
day, a holiday to mark the 1993 
Russian Constitution. He was to 
Jay a wreath at the Tomb of the 
Unknown Soldier. However, Mr. 
Yastrzhembsky said Mr. Yeltsin 
p lanned to record aradio address 
for the holiday to be broadcast on 
Friday. 

Mr. Yeltsin also pot off earlier 
plans to a televised confronta- 
tion with some of his cabinet 
ministers on economic issues. 

Mr. Yastizhembsky said Mr. 
Yeltsin was not required to stay 
in bed, but most remain indoors, 
although he could continue to 
work and use the telephone. 

News of Mr. Yeltsin’s hos- 


pitalization sent jitters 
toe political and financial com- 
munity in toe capital. While some 
Russian corporate and state bond 
issues fell, the ruble remained 
stable Wednesday. 

Russia has been on. edge since 
toe stock market plunge in late 
October because of an exodus of 
foreign investors and a loss of 
confidence in Russia as a market 
The Russian market has lost 40 
percent of its value from toe Oc- 
tober peak. However, officials 
have said toe economy and cur- 
rency appear to have stabilized 
some and investors were begin- 
ning to look a gain at the equities 
market 

Since Mr. Yeltsin’s recovery 
from double pneumonia in toe 

lEsboats with bearttrouble over 
toe last few years often removed 
him completely from toe political 
scene, and another prolonged ab- 
sence would generate farther un- 
certainty' about Russia’s coorse. 


other Muslim nation has mil- 
itary ties with the Jewish 
state. 

On Wednesday, leaders 
met in closed sessions to de- 
bate Turkey’s relations with 
Israel and some of the other 
divisive issues in die region. 

The Palestinian leader, 
Yasser Arafat, urged Muslim 
leaders to stop Israel from 
consolidating its rule over Je- 
rusalem and declared that the 
peace process was a 
shambles. 

“It has reached a dead end 
on all Arab negotiation 
tracks,” he said in a speech. 
“This is because of toe Israeli 
policies and positions, which 
reject toe establishment of a 
just and comprehensive 
peace.” Copies of Mr. Ara- 
fat’s address were given to 
reporters. 

Iran has long fashioned it- 
self as a Leading opponent of 
toe Mideast negotiations. 


which the Iranian spiritual 
leader. Ayatollah Sayed Ah 
Khamenei, described m open, 
ing toe summit meeting as 
“unjust, arrogant, contemp- 
tuous and, finally, illogical. ' 

Many Arab countries, 
however, back the peace pro- 
cess, although they are in- 
creasingly frustrated with 
what they see as Prime Min- 
ister Benjamin Netanyahu’s 
attempt to undermine agree- 
ments made by toe previous 

Israeli go ve r n ment 

Some Arab .delegates ex- 
pressed unhappiness with toe 
tone of Ayatollah Khame- 
nei’s criticism. 

Despite the disputes, the 
summit meeting has been 
beneficial to Iran, which used 
it to emerge from internation- 
al isolation. Ayatollah 
Khamenei and President Mo- 
hammed Khatami, have held 
a series of meetings with the 
leaders of Saudi Arabia, 
Kuwait Qatar, Turkey and 
Malaysia. 

The most tangible result 
has been a rapprochement be- 
tween Iran and its bitter rival, 
Saudi Arabia. 

After a meeting Tuesday 
between Crown mace Ab- 
dullah ibn Abdulaziz of Saudi 
Arabia and Ayatollah 
Khamenei, toe countries 
agreed to open toe way for 
closer relations. 

“The government of Iran 
has toe will to expand ties 
with Saudi Arabia in different 
fields,” Tehran radio quoted 
Ayatollah Khamenei as 
telling Prince Abdullah. 

The statement was an un- 
precedented expression of 
friendliness toward Saudi 
Arabia by an Iranian spiritual 
leader. Ayatollah Khame- 
nei’s predecessor, Ayatollah 
Ruhollah Khomeini, called 
for bringing down the Saudi 
ruling family. 

Prince Abdullah said he 
saw the potential for better 
ties with Iran. 

“We should not look to toe 
past,” be was quoted as say- 
ing. (AP. AFP ) 


IRAN: Curbing Nuclear Aid, China Displays Foreign Policy Shift FrSUlC6 flra P.kft 


Continued from Page 1 

Clinton and Mr. Jiang presented as a 
pivotal moment giving security issues an 
important place in a bilateral relation- 
ship that has been do minate d by trade, 
human rights and Taiwan. 

With toe administration now prepar- 
ing to satisfy Congress that both Russia 
and China will curtail their help to Iran’s 
weapons research, an account of U.S. 
diplomacy on the issue was provided by 
officials and former officials from toe 
National Security Council, the State De- 
partment and the Central Intelligence 
Agency, who agreed to interviews on 
condition that they not be identified. 

Barring a backlash in Congress, 
which often taxes the Clinton admin- 
istration with being too lenient in dealing 
with Russia and China, the two accords 
are bound to be seen as substantial U.S. 
foreign policy successes. 

The timing apparently was right to 
coax China into engaging with Wash- 
ington on Iran, a State Department poli- 
cymaker said, because “China is saying 
that it no longer wants to be seen as a 
rogue government on proliferation. ’ ’ 

Iiisa reputation that Beijing has trou- 
ble living down, even though the days 
are long over when Chinese leaders 
seemed unworried about nuclear sales 
and even defended the idea as a way of 


undercutting what Beijing ideologues 
dabbed toe “nuclear hegemony” of 
Washington and Moscow. 

Chinese agreement to cut off the flow 
to Iran, when it came, was not clear in 
every detail. A State Department official 
sa id that China pledged to end all new 
nuclear cooperation with Iran, including 
activities covered by international safe- 
guards. Beijing will continue two proj- 
ects — a small research reactor and a 
related factory — that have no military 
applications. 

Mr. Jiang also “promised not to sell 
any more cruise missiles after toe current 
batch — whatever that means,” toe of- 
ficial said. 

The conventionally armed cruise mis- 
siles are rated a serious threat to U.S. 
warships in toe narrow neck of the Gulf. 
They also have political importance be- 
cause Congress insists that advanced con- 
ventional weaponry be considered in as- 
sessing China’s nonproliferation record. 

. Just as with Russia, toe accord with 
China amounts to an aims control pact 
against proliferation but is a departure 
from Cold War agreements in which, 
typically, a signatory accepted ceilings 
on its missiles or tanks and agreed to 
verification by satellite surveillance. 

This approach — essentially, “trust, 
but verify” — will not work in bilateral 
accords concerning a third country that 


does not want to cooperate. If Moscow 
aqd Beijing intend to end their help to 
lean’s covert programs, their perfor- 
mance can be verified only by whk they 
are seen to be doing and by intelligence 
surveillance about the impact on Iran. 

Moscow has promised to plug legal 
loopholes with neW laws, including what 
U.S. diplomats call “toe catchall 
clause,” aprovision outlawing weapons- 
reiated business wife particular coun- 
tries, even without a formal embargo. 

China, which last month joined toe so- 
called Zangger committee, a club of 
nuclear suppliers working against pro- 
liferation, will be expected to strengthen 
its export controls, which are, on paper, 
barely half as good as Russia’s. 

The problem, U.S. officials said, is 
that neither country’s system is strong 
enough for Washington to accept toe 
assumption that toe authorities can fully 
control what companies do. 

Equally illusory, a U.S. policymaker 
said, is “any idea that we can get some 
kind of skeleton key allowing us to poire 
into suspect defense facilities all over the 
place’ ’ in Russia or China. 

So verification can only come from 
intelligence reports and a dialogue in 
which Russia or China is challenged 
about signs of leakage. This system will 
be the basis for certifying China as a 
nuclear customer, an imminent move. 


S Pedophilia 

ItttrilpTF A 



Reuters 

PARIS — More than 50 people have 
been detained across France in a crack- 
down on a pedophilia ring using the In- 
ternet to distribute sexually explicit pho- 
tos of children, police said Wednesday. 

The roundup was toe culmination of an 
eight-month investigation, an official said 
Five people, detained since the police op- 
eration began Tuesday morning, nave been 
placed under formal investigation, die of- 
ficial said. The opening of a fonrial probe in 
France is necesraiy to bring someone to 
trial but does not imply guilt 
The people taken into custody were 
not casual surfers on toe worldwide In- 
ternet computer network but were sus- 
pected of either taking, exchanging, 
stocking or selling explicit photos via toe 
Internet “It was a genuine paedophilia 
network,” toe official said 
Only French residents were targeted 
in the roundup, the official said, but 
information on toe network's links to 
other countries will soon be transmitted 
to law enforcement authorities abroad. 


KOREA: Another Record Low for the Won DRAMA: Complex Behind-the-Scenes Tale Unravels the Beginnings of Asia’s Crisis 


Continued from Page 1 

development bank, which lends money to 
South Korean companies on behalf of the 
government must repay some S500 mil- 
lion in debt coming due this month. 

Many securities analysts now doubt 
that the IMF bailout fund will be nearly 
enough to see toe South Korean financial 
system throagh toe first sage of its 
crisis, especially after the Finance Min- 
istry said this week that toe country’s 
short-term debt totaled well over $100 
billion, rather than the S70 billion that 
Seoul earlier reported 

“Most analysts believe they will need 
a second IMF package in toe first pan of 
next year.” said Hank Morris, research 
director of Coryo Securities, a firm that 
went bankrupt. “They’ve almost run out 
of foreign reserves and are not in a 
position to replenish them.” President 
Kim Young Sam was to read a statement 
Thursday morning accepting blame for 
the crisis and outlining measures to com- 
ply with the terms set by toe International 
Monetary Fund for toe bailout package. 

The government sought Wednesday 
to counter suspicions that it might try to 
avoid some of toe Fund’s requirements 
for restructuring and closing down in- 
solvent banks. 

“Fulfillment of toe IMF agreement is 
the only means of resolving toe foreign- 
exchange crisis,” the deputy finance 
minister, Chong Tok Kyu, said 

Finance Minister Lim Chang Yuel 
charged the newly closed merchant banks 
with “nearly paralyzing toe entire finan- 
cial system lately” by having “excess- 
ively depended’ on high-interest shear- 
term loans os a device for getting money 
in a hurry to pay off their own debts. 

The five tanks ordered to close until at 
least Jan. 31 were Nara Banking Crap., 
Daehan Investment Banking Corp., Shin- 
han Investment Bank Corp.. Hanwha 
Merchant Bank Crap, and Central Bank- 
ing Corp. Mr. Lim said they were driving 
companies to the brink of bankruptcy by 
demanding they pay off loans issued for 


periods ranging from one to 15 days. 

The banks, extending loans at rates of 
about 23 percent, hoped to pick up the 
money they needed to pay off their own 
debts, which totaled about $700 million. 
Finance Ministry officials said 

The suspended merchant b anks 
suffered from huge deposit withdrawals 
and scrambled to get overnight loans, 
Mr. Lim said, which caused the won’s 
steep depreciation against toe dollar. 

The government assured depositors 
that their money was guaranteed but did 
not say when they could claim it. The 
government has established a deposit 
insurance corporation and a bailout fund 
for guaranteeing bad loans but has to 
issue boads valued at $16 b illio n to 
cover both funds. 

The state-owned Korea Broadcasting 
System, calling toe merchant banks “the 
culprits of Korea's economic crisis,” 
said they were “di gging their own 
graves” by their use of what are known 
as “call loans.” 

Seoul has now suspended 14 of die 
country’s 30 merchant banks, giving 
them until toe end of this month to 
develop viable plans for doing business 
— or to merge with other banks. 

Activities of nine merchant h«nlr* 
woe suspended Dec. 2, toe day before 
the IMF said tire government had to close 
a number of debt-ridden financial in- 
stitutions while giving foreigners greater 
access to financial markets. 

Share prices opened sharply lower in 
morning trading Wednesday, but die 
government’s announcement later 
helped bolster sentiment. The bendi- 
mark Korea Composite Stock Price In- 
dex rose 11.85 points, ra 3 percent, to 
dose at 399.85. 

Blue-chip shares led the climb, but 
traders said uncertainty still prevailed 
because shares of smaller companies had 
continued to plunge amid concern that 
more companies would go bankrupt. 

The donarTOse sharply to 1,563 won 
at toe close of trading Wednesday from 
1,460 won at the previous dose. 


Continued from Page 1 
central to toe drama. 

First, the talk of a Japanese interest- 
rate increase raised fears among com- 
mercial bankers, investment bankers and 
others about the safety of big investment 
positions that were predicated on cur- 
rency stability. . 

As these investors scurried to liquidate 
holdings in local currencies, the anxiety 
spread. Big foreign companies operating 
in toe region became frightened, too, and 
scrambled to convert local revenues into 
dollars. Finally, local companies rushed 
to get yen and dollars. Wife everyone 
running for the exits, the Thai baht, toe 
Indonesian rupiah and other regional 
currencies were trampled. 

“Big movements in asset markets 
don’t tend to happen unless all the actors 
move from one side of the ship to toe 
other,” said Peter Fisher, head or market 
intervention, at the Federal Reserve Bank 
of New York. 

Michel Camdessus, managing director 
of die International Monetary raid, said 
in a speech in Malaysia on Dec. 2 that the 
IMF had been studying the impact of 
speculators in all this. “But from what we 
know so far,” he raid, “it would be a 
mistake to blame hedge funds.” 

in the 

summertime drama were the bankras and 
treasurers, and a financial technique of 
theirs known by some as the cany trade. 

For years, because of rock-bottom in- 
terest razes in Japan and low rates in the 
United States, banks, investment houses 
and insurers had borrowed in yen and 
dollars and pat the proceeds into short- 
term notes in Southeast Asia that were 
paying far higher rates. These are the so- 
called cany trades. 

The trades attracted so many investors 
because toe Southeast Asian currencies 
had been stable fra years. Still, they did 
not come without risks. Should foreign 
interest rates rise, or the currencies start 
to lose their value, toe profits would 
diminish — or might turn into losses. 


Just toe threat of a Japanese rate rise 
was enough to cause some investors to 
unwind their positions. That meant they 
sold their Asian notes and, in toe pro- 
cess, the local currencies. 

“If you had 50 banks doing it, that 
could create some pressure,” said David 
Path, head of foreign exchange in New 
York for Chase Manhattan, which had 
been involved in carry trades. “There 
are big farces in the market that are 
totally separate from speculators making 
a bet” 

American companies that do big busi- 
ness in Asia, such as Dell Comparer 
Corp., added to toe pressure as they 
rushed to protect themselves against fur- 
ther declines in toe value of the local 
currencies in which they were 
They did this by hedging, which 
an investor to lode in an exchange rate. 

Mutual funds, such as toe T. Rowe 
Price New AsiaFund, moved, too, selling 
Asian securities and converting toe pro- 
ceeds back into dollars, further driving 
down the value of Asian currencies. 

But chief among toe participants were 
the many local companies and banks in 
Thailand, Singapore, Malaysia, Indone- 


sia and South Korea that had borrowed 
billions of dollars at low rates abroad. 
Some used that money to expand; many 
banks used it for lending in overheated 
real-estate markets. 

As their currencies fell in value, the 
amount toe companies and banks owed 
in dollars and yen skyrocketed. To male* 
their payments, these players also 
scrambled to get into dollars or yea. 

What makes a currency move “is the 
enemy within, toe corporates,” said 
Chris Tinker, regional head of econom- 
ics and debt research at ING Barings 
Asia in Hong Kong. Mr. Camdessus of 
the IMF said, “The most important 
factor in the depreciation of exchange 
rates was the rush by domestic cor- 
porations to bay foreign exchange.” 

The underlying cause of toe rout, Mr. 
Camdes sus said in his speech, was die 
m ista ke n faith of millions of investors in 
toe stability of toe smaller Asian cur- 
rencies. Such misplaced faith mak^ die 
Asian decline similar in its origins and 
its unfolding to the European currency 
crisis of 1992 and 1993, when sudden, 
surprising declines in the pound, toe lira 
and other currencies raided a long period 


of stability there. 

In Southeast Asia, toe frame of mix 
that led investors to rely on thestability i 
currencies was shaped by the prevalent 
of “pegs” — direct and indirect — to 
local governments put in place to tie, i 
effectively fix, their currencies to ti 
movements of toe dollar. 

So certain were many investors of to 
stability that they refused to pay the co 
of insurance, through hedging, a gains t 
currency fall. 

“You had banks and financial ii 
stitutioas that believed so much in fl 
peg because they made money on ti 
peg,” said Ang Thiana Huat, the grou 
treasury manager at NatSteel Ltd. i 
Singapore. 

“So over time, it is deemed to l 
riskless,’ ’ hesaid. ‘ ‘Peer-group press ui 
in the financial community is so stroo 
that if you said it was risky, peopi 
would look on you as an outcast” 

But a currency trader based in Sing; 
pore for a major U.S. investment ban) 
who spoke on condition of anonymity 
raid: Nobody is going to admit that the 
tod not hedge welL We have people wh 
are still lying about their exposure.” 


TENSIONS: U.S. Rejection of Seoul’s Appeal Adds to the Storm 


Continued from Page 1 

financial superpower to which every 
country would tnm in time of extraor- 
dinary distress. 

He has spent three years shifting that 
role to toe IMF. the World Bank and 
other institutions — and insisting that 
countries agree to sharp fiscal discipline 
before receiving aid. 

In Korea; though, that approach may 
be about to face its first critical test 

Talks began this week in Geneva over 
a peace treaty that will finally end the 
Korean War, and toe United States has a 
lot riding on a stable and prosperous 
South Korea. . . 


If toe country’s financial health con- 
tinues to deteriorate, toe diplomatic 
pressure on Washington to step in could 
become excruciating. 

Moreover, toe economic cost if the 
IMF fails to tesene Souto Korea could be 
enormous. 

“We have regarded Korea as a fire- 
wall that could not be breached,” an 
administration official involved in the 
internal debate over what to do next said 
several days ago. 

“It is not at all dear that we can just 
say to the Koreans: ‘Hey, we’ve done 
what we can. The rest is up to you.’ ” 

The problem is not just South Korea, 
toe world’s Ilto-iargest economy. Other 


M. OJUlUUgn II 

ran survive on its own — exac 
South Korea said until three we 

“ tegan to admit the depi 
troubles. K 

Japan, U.S. officials say re 
face up to the pain it will haven 
to pull out of a seven-year down 
threatens to worsen. 

In public, offidals trying to t 
markets are putting toe most ot 

STllfl nn duhm .1 f 



- , am 

js gradually slowing. In 
however, few are so sanguine. 


&f>in 


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Bosnia Talks End 
With a Walkout 

Kosovo Issue Mars 51-Nation Meeting 


By Alan Cowell 

Ncv York Times Serin 


BONN — An international 
■gathering supposed to pro- 
mote peace in Bosnia ended 
here Wednesday with a walk- 
■ out by Yugoslav and Bosnian 
Serb delegates and a renewed 
threat of firmer action includ- 
’ ing economic sanctions to 
'press Bosnia's hostile ethnic 
f factions into unity. 

* 1 The Yugoslav and Bosnian 

•Serb delegates abandoned the 
'two-day gathering of the so- 
-called Peace Implementation 
■Council, established after the 
* 1 995 Dayton peace accord, to 
'protest a reference in its final 
communique? to “increasing 
'ethnic tensions'* in Kosovo 
a region of the rumi 


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Yugoslavia ruled by Bel^ 

'to the resentment of a restive 
-and volatile ethnic Albanian 
' majority. 

The protesters said the 
■ Bosnia conference: had no 
'mandate to discuss the situ- 
* ation in Kosovo, Dragomir 
-Vucicevic, director of the 
"Yugoslav Foreign Ministry, 
■‘called the reference ■ to 
Kosovo an interference in his 
' country's internal affairs. 

- The walkout came shortly 
; before the end of the annual 
'conference, which grouped 
■51 nations including the 

United States and Russia, and 
'21 international agencies. 

- Russia, the United States 
‘ and Germany had all suppor- 
1 ted the idea of using the con- 
ference to issue a warning 


about Kosovo, which many 
outsiders see as a tinderbox of 
ethnic passions that can only 
be made more flammable by 
heavy-handedness from Bel- 
grade. 

Without specifically men- 
tioning the Yugoslav author- 
ities, the communique urged 
“those concerned” to “re- 
frain from activities that 
might exacerbate existing dif- 
ficulties. 1 ’ 

Momcilo Krajisnik, who 
led the Bos nian Sorb dele- 
gation out of the conference 
in supixm of the Yugoslav 
delegation, said the reference 
to Kosovo was an attempt to 
‘‘try to sneak the Kosovo is- 
sue through the back door." 

Mr. Krajisnik, the Bosnian 
Serb representative to Bos- 


nia s col 


ive 


is 


seen as a hard-liner. Biljana 
Plavsic, the Bo snian Serb pres- 
ident, also left the conference. 

The protest overshadowed 
decisions to set deadlines for 
a series of supposedly uni- 
fying moves — such as com- 
mon auto license plates 
throughout Bosnia — and to 
empower the conference's 
top official in Bosnia to im- 
pose nation-building mea- 
sures on the country 's divided 
Serbs. Muslims and Croats if 
they cannot agree among 
themselves. 

“If they do not do their job, 
we have to do it in -their place,” 
said the top official, Carlos 
Wes tend orp, a former Spanish 
diplomat who has the title of 
high representative in Bosnia. 


BRIEFLY 


Chirac Assails 35-Hour Week 

PARIS — President Jacques Chirac of France clashed 
Wednesday with Prime Minister Lionel Jospin over the 
Socialist government’s plan to cut the workweek, to 35 
hours without cutting pay. 

Speaking at a weekly meeting of the cabinet, which 
approved a parliamentary bill for the 35-hour week by 
2000. Mr. Chirac said that cutting working hours would 
not create jobs, as the government argues, because busi- 
ness was being forced into the changes against its will. 

“1 do not ttiink that this bill, because of its obligatory 
and compulsory character, will favor job creation," he 
was quoted as saying by his spokeswoman. (AFP) 

- - j*. k* • .»■ -J , •- •■-•». * ' |" . , 

Turkish Regime Survives Vote 

ANKARA 7- The minority Turkish government of 
Prime Minister Mesut Yilmaz survived an opposition bid 
to topple it 'Wednesday by a no-confidence vote. 



bring down the government. He said the opposition 
could muster only 244 votes, well short of the absolute 
majority needed in the 550-member chamber. (Reuters) 

Carlos Goes to Court Friday 

PARIS — lllich Ramirez Sanchez, the terrorist known 
as Carlos, will finally face a Paris court Friday for the 
1975 killings of two French secret agents and their 
Lebanese informer. .... * 

The trial will be the first official public appearance of 
the 4S-vear-old Venezuelan, who eluded the West's 
secret services for two decades. France’s DST counter- 
espionage agency, seeking to avenge the killing of its two 
members, kept up the hunt for 19 years before catclnng up 
with him in Sudan in 1994 and packing him off to France 
in a sack. (Reuersl 

EU Backer Is Swiss President 

ZURICH — Foreign Minister Flavio Cotti was elected 
bv Parliament on Wednesday to a one-year term m pres- 
ident of Switzerland, putting an active supporter of Euro- 
pean Union membership in the largely ceremonial post. 

Mr. Coni. 58. will be president of the seven-minister 
Federal Council, or cabinet, in 1998. hta; second 1 term ui 
the rotating office after a first term in 1991 . ( neuters) 

Berlusconi Ignores Summons 

MILAN — Silvio Berlusconi, the conservative polit- 
ical leader and entrepreneur, did no1 
from Milan prosecutors to appear 1 

lioninc. in a corruption investigation, his lawyer said. 

He was summoned as part of an instigation to 
determine whether he falsified accounts of his company 
Fimnvcsi to create slush hinds used to bribe « 

Rome, Italian newspapers reported. (neuters > 





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Mine Foe 
Collects 
Her Nobel 


The Associated Press 

OSLO — Jody Williams 
and the International Cam- 
paign to Ban Land Mines on 
Wednesday collected the 
Nobel Peace Prize, one of 
the awards financed by the 
inventor of the explosive 
used in die weapons they 
have labored to eliminate. 

Ms. Williams, as co- 
ordinator of the group, was 
instrumental in pushing for 
the treaty banning land 
mines that has been signed 
by 122 countries. 

“Yon have not only 
dared to tackle your task, 
but also have proved that 
the impossible is possible,'* 
Francis Sejersted, the No- 
bel committee’s chairman, 
said at the ceremony. 

“It is a paradox that what 
we find inside land mines is 
Nobel's brilliant invention, 
dynamite,'' he said. 



RnarUviadiTbr Amor Mini Pr— 


Ms. Williams before the ceremony Wednesday. 


Woodrow Wyatt Dies at 79, 
Flamboyant Political Figure 


Net*- York Times Senice 

LONDON — Woodrow Wyatt, 79, a high- 
living onetime Socialist politician and jour- 
nalist who later turned abrasively against the 
left as a television presenter and tabloid 
columnist, died Sunday in London. He was 
created Baron Wyatt of Weeford in 1987. 

He died of a ruptured stomach artery, and 
he had also been under treatment for cancer of 
the esophagus. 

His passage from middle-class origins and 
postwar leftist convictions to adoring fol- 
lower of Prime Minister Margaret Thatcher 
and star of the racing set was marked by a trail 
of beautiful and often wealthy and titled wom- 
en, cases of fine claret and a cloud of Havana 
cigar smoke. For the past 2 1 years, the former 
Labour member of Parliament with the trade- 
mark boldly patterned floppy bow tie was the 
highly visible chairman of the Horseracing 
Totalizator Board, known as the Tote, the 
governing authority for the sport. Mrs. 
Thatcher rewarded him with a knighthood in 
1983 and a life peerage in 1987. 

Bom on July 4, 1918, he was named after 
Woodrow Wilson. He studied law at 
Worcester College, Oxford. He became an 
army major in World War Q, serving in die 
Normandy campaign. 

He ran for Parliament from a Birmingham 
district in 1945 and unexpectedly won in the 
Labour landslide. His parliamentary career 
continued, with one four-year interruption. 


until 1970. but in his 21 years in the Commons 
he had only six months as a minister . 

By 1970 he had become estranged from the 
working-class ambience of his party. He op- 
posed the nationalizing of industry and joined 
Conservative efforts to curb union power. His 
columns similarly moved from paper to paper 
until they ended up in 1983 in Rupert Mur- 
doch’s Labour-baiting News of the World. 

Leon Poliakov, 87, Historian 
Of Anti-Semitism and War Crimes 

New York Times Senice 

Leon Poliakov, 87. a historian of anti- 
Semitism who testified at major war crimes 
trials, died Monday in France, where he lived, 
leaders of Jewish groups said 

Mr. Poliakov wrote the five-volume “His- 
tory of Anti-Semitism,” as well as “20th 
Century Totalitarianism," “Jewish Bankers 
and the Holy See" and “From the Mongolian 
Yoke to Lenin.” Together with Joseph Wulf, 
he also wrote “The Hurd Reich and the 
Jews," a book of official German records 
documenting Nazi crimes against Jews. 

Ted Matthews, Gallipoli Survivor 
SYDNEY ( AP) — Ted Matthews, the last 
survivor of the first- wave landing on April 25, 
1915, at Gallipoli, the site of a bloody World 
War I battle that killed more than 11,000 
Australian and New Zealand soldiers, died 
Tuesday, a month after his 101st birthday. 


Creating a unique financing solution 
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PAGE 6 


INTERNATIOIVAL HERALD TRIBUNE, THURSDAY, DECEMBER II, 1997 


ASIA/PACIFIC 


Korea Talks Open the Way 


Second 4-Nation Round Set for March 16 in Geneva 


The Associated Press 

GENEVA — North and 
South Korea, meeting under 
the auspices of the United 
States and China, closed a 
historic opening session of 
peace talks Wednesday with 
promises to keep working to- 
ward settlement of their 44- 
year state of war. 

The four nations set the 
next round of what coaid be 
years of talks for March 16 in 
Geneva. 

‘TTus marks a very good 
beginning,” said Tang Jia- 
xuan, deputy foreign minister 
of China. “We hope die es- 
tablishment of a peace me- 
chanism on the Korean Pen- 
insula will not take another 43 
years.” 

Stanley Roth, a U.S. as- 
sistant secretary of state who 
acted as chairman for the first 
session, said there would be 
an interim meeting in Beijing 
in mid-February. 

Mr. Roth said that each 
side had presented its views in 
during me two-day session 
but that a detailed agenda still 
had to be wo deed out 


He added that he expected 
the next session to last “some 
days” and noted that there 
was no overall deadline for 
finishing the negotiations. 

Overall, “talks proceeded 
in a cordial and productive 
atmosphere,” Mr. Roth said 
at a brief press conference 
with heads of the three other 
delegations. 

Just gening the North and 
South together in the same 
room — and bringing them 
together at a Chinese- 
sponsored cocktail party 

Tuesday — was considered a 


The first day of talks, Tues- 
day, saw “very modest pro- 
gress,” said Yu Myong 
Hwan, a South Korean For- 
eign Ministry official. The 
North Korean delegation was 
even more reserved. 

“ Ongoing.” was the terse 
comment from the North 
Korean delegation leader, 
Kim Gye Gwan, as he 
emerged from Tuesday’s 
meeting: 

In Washington, Defense 
Secretary William Cohen and 


Mrs. Marcos Leaves Philippines 


The Associated Press 

MANILA — Imelda Mar- 
cos, die former first lady of 
the Philippines, flew to the 
- United Stales on Wednesday 
after the Supreme Court here 
overturned a travel ban and 
allowed her to leave, despite a 
graft conviction. She said she 
was traveling to Boston for 
treatment of an eye ailment. 


It was the first time the wid- 
ow of Ferdinand Marcos, the 
deposed president, has been 
permitted to make a foreign 
trip since a court convicted 
her in 1993 and sentenced ho* 


his South Korean counterpart 
said the talks provided ^the 
most realistic means to re- 
duce torsions and achieve 
lasting peace on the Korean 
Peninsula.” 

Only an armistice, not a 
peace treaty, was signed to 
end the Korean War in 1953. 

Diplomats from China, one 
of North Korea’s last remain- 
ing allies, and the United 
States, defender of South 
Korea, are attending as me- 
diators. Mr. Roth said they 
had drawn lots to take turns 
chairing the subsequent ses- 
sions and that China would 
head the next round, followed 
by South Korea and then 
North Korea. 

One of the many barriers to 
progress in Geneva is the 
Nortit Korean insistence that 
a withdrawal of 37,000 U.S. 
troops from South Korea 
should be oo the agenda. 

South Korean diplomats 
told South Korean journalists 
that the Pyongyang delega- 
tion raised this point again 
Tuesday. The delegation also 
pressed for Washington to 
end the economic blockade in 
force since the Korean War, 
and for direct talks between 
Washington and Pyongyang. 

An editorial carried by 


iriftllBUUL hi A: 

I*tSpp 



Schools in Hong Kong 
Warned of ‘Bird Flu 9 


^ d I' 1 }** *** 


* * * 

-•'j - 


to UrUtf / »» 


HONG KONG — As the government here grappled w ith 
a mysterious “bird flu” not usually found in humans, it 
ordered schools and kindergartens on Wednesday to warn 
children not to play with pets. ... . 

The authorities also distributed a note to hospitals on how- 
to treat people with the disease, which is believed to nave 
killed a child and an old man and made a girl critically ill. 


\ -v ...V 


killed a child and an old man and mule a girl critically ill. 

“No touching of pets.” warned a sign at the Lcunji Luu 
Sau-ng Memorial School in the Shau Kei Wan district. 

Medical findings have indicated that a 3-year-old w ho 
died in May and another child who survived the disease both 
caught the virus from birds. „ 

Meanwhile, U.S. health officials said the flu strain m 
Hong Kong is not an immediate threat in the United States. 
The Centers for Disease Control and Prevention said An wr- 
icans should be more concerned about conventional flu than 
the overseas, variety. . 

“At ihis point we-are dealing with lour isolated cases in 


' ww***-*™- ' ^ Hong Kong,” said Rima Khabazz, a viral disease expen at 

Teachers telling pupOs not to approach geese Wednesday at a Hong Kong school, the agency. (Reuters. Art 


Legitimacy Eludes the Strongman of Cambodia 


By David Lamb 

Los Angeles Times Servu-e 


Pyongyang’s official Korean 
Central News Agency said 


to up to 24 years in prison. 
Mrs. Marcos, 68, now 


congresswoman, is free on 
bail pending an appeal of the 


Central News Agency said 
that die conclusion of a peace 
treaty between North Korea 
and the United States was 
“die best way for peace and 
security on the Korean Pen- 
insula.” It added that peace 
could never be “ensured” so 
long as U.S. troops remain in 
the South. 


PHNOM PENH — Nearly 
five months after Cambodia 
lost the democracy that the 
international community had 
bought for this hapless land. 
Second Prime Minister Hun 
Sen's campaign to gain le- 
gitimacy for his rule is hitting 
a stone wall. 

The United Nations has 
kept Cambodia' s seat vacant. 
The United States and most 
donors have suspended non- 
humanitarian aid. The World 
Bank will not even talk about 
new projects. Even the oon- 


coofron rational Association 
of South East Asian Nations 
is giving Cambodia the cold 
shoulder, having put its 
pending membership on 
hold. 

Cambodia, whose people 
have a history of destroying 
what they have built, from the 
temples of Angkor to the pil- 
lars of democracy, is slowly 


Mr. Hun Sen's coup in July 
has cost the country dearly. It 
has turned Cambodia into the 
orphan of Indochina, just four 
years after a S3 billion UN 
effort to rehabilitate the coun- 
try, culminating in free elec- 



tions. was deemed a success. 

“If I was not a Buddhist.” 
King Norodom Sihanouk, 75, 
said in October, “I would 
commit suicide, because the 
end of my life is full of shame, 
humiliation and despair over 
the national order.” 

“In a blossoming Asia,” he 
continued, Cambodia is “the 
only oasis of war, insecurity, 
self-destruction, poverty, so- 
cial injustice, arch-cozruption, 
lawlessness, national divi- 
sion, to talitarianism, drug 
trafficking and AIDS.” 

Although King Sihanouk's 
comments may have con- 
tained some hyperbole, they 
did reflect the despair many 
Cambodians feel at seeing the 
tourist industry collapse, for- 


eign investment evaporate, 
expatriates flee and nuraan 
life — in an eerie echo to the 
1975-79 rule of the Khmer 
Rouge — again treated with 
contempt. 

Lao Mong Hay, director of 
the Khmer Institute of De- 
mocracy, asked: “The inter- 
national community pur- 
chased our freedom and our 
human rights with S3 billion 
and no small amount of 
blood, and we Cambodians 
can’t maintain what we have 
been given? And if we can’t, 
do we even deserve our sov- 
ereignty?” 1 • 1 

The capital, Notice -charm- 
ing City; is raggedy and trash- 
littered, and along the wide, 
tree-lined boulevards people 
walk with a shuffle, their 
shoulders slamped. casting a 
leery eye toward strangers 
who might be armed. 

There are so many guns 


about that some businesses 
have posted signs saying, 
“Please Check Your 
Weapons.” No sensible vis- 
itor ventures out on foot at 
night, and the U.S. Embassy 
has set up a hot line with 
recorded messages that give 
updated information on secu- 
rity trouble spots. Most crime 
— unlike the spate of political 
killings that followed the 
coup — is the work of robbers 
with no agenda other than the 
need for money. 

Towering over the crime- 
ridden streets, on giant 
posters attached to the sides 
of government buildings, is 
the face of King Sihanouk, 
appearing youngish and 
healthy. It is a symbol that 
c alms Cambodians, but it is 
illusory. The king, ailing with 
cancer, spends most of his 
time in Beijing, returning to 
Cambodia only, to speak of his 
dismay and to issue contra- 
dictory political statements, 

“Cambodians thought 
they’d turned the comer after 
the elections, and now they’re 
back to square one,” a Euro- 
pean diplomat said. “It has 
really deflated them. They’ve 
been kicked around by so 
many people for so long — 
the French, the Americans, 
the Khmer Rouge, the Viet- 
'namese— you get the feeling 
~ that they’ve just accepted that 
their lot in life is to be de- 
feated. 1 ’ 

But the international com- 
munity, though stung before, 
is about to try again. Various 
donor nations have pledged 
$20 million lo help under- 
write new elections, which 


Mr. Hun Sen says will he held 


next year. This time the prime 
minister — who gloated after 


minister — who gloated ancr 
the coup. “Now t am the cap- 


tain alone” — may face no 1 
viable opposition. 

A onetime peasant \v ith vir- 
tually no format education. 
Mr. Hun Sen has pleaded with 
nongovernmental agencies 
not to abandon the country- He 
has, at some risk to himself. • 
dismantled the omnipresent ■ 
“checkpoints,” where gun-' 
men shook down motorists for 
money, and closed several * 
casinos run by members of the 
military. He has started learn- 
ing English with the help of an _ 
American tutor, lias asked his '. 
party thugs not to beat up op- 
position members and has giv- 
en the media a long leash, 
making Cambodia's 40 news 
publications among the freest 
in Southeast Asia. 

Meanwhile, lie is making 
plans. Western diplomats • 
said, to unleash a dry -season 
offensive this month or next 
against the 400 or so troops « 
still loyal to Firsl Prime Min- 1 
ister Norodom Ranariddh — ■ 
the prince he drove from, 
power — and the few thou- 
sand guerrillas who answer to ; 
Khmer Rouge warlords, lo 
cated around An long Veng in 
the north. 

“I wouldn’t underestimate ’ 
Hun Sen;” - a Western polit- 1 
ical analyst said.- : “-He's not- 
sophisticated, but he does his 
homework, he asks the right ; 
questions. He’s not someone- 
who got to power through his 
birthright, as Ranariddh did. ; 
Wc may find he's going to be ! 
around fora while.” \ 


BRIEFLY 


7 Democracy Activists 
Are Jailed in Burma 


RANGOON — The military government 
of Burma said Wednesday that seven mem- 
bers of Daw Aung San Suu Kyi's National 
League for Democracy have been sen- 
tenced to long prison terms. 

In a statement, the government said the 
NLD members, including two who were 
elected to Parliament in a 1990 election that 
was later annulled, were sentenced Tues- 
day. It said they were charged under the 
Emergency Act of 1950. The statement said 
the section deals with any act seen as dis- 
turbing the public or law and order. 

A second statement said six were sen- 
tenced to six-year terms, and one to eight 
years: 

The seven men and women, and one 
other woman. Daw San San, were detained 
last month in connection with trips planned 
by Daw Aung San Suu Kyi to her party’s 
offices in townships on the outskirts of 
Rangoon. 

The statement did not say what happened 
to Daw San San. (Reuters ) 


Negotiators are to leave for the Neth- 
erlands in early January and the talk» are 
expected to resume later that month, said 
Solicitor-General Silvcstre Bello, a mem- 
ber of the government peace panel. 

The government suspended the talk> on 
Nov. 1 1 after the Communist New People’s 
Army seized Police Chief Rene Francisco 
and Master Sergeant Joaquin Melad in raids 
in Rodriguez near Manila. 

After holding them for 36 days at a forest 
rebel base, the guerrillas released them Iasi 
Friday to representatives of the Interna- 
tional Committee of the Red Cross. (APi 


JAKARTA — The jailed labor leader 
Muchtar Pakpahan is being well treated by 
local doctors for an undiagnosed lung ill- 
ness, a visiting Canadian specialist said 
Wednesday. 

“Up to the present time, as far as we can 
see, he is receiving optimal treatment 


here,’ Stephen Lam said at a news con- 
ference at Jakarta’s Cikini Hospital. 

Dr. Lam and two other Canadian doctors 


Japanese Cabinet Loses 
Public Support in Poll 


were due Thursday to perform a sophis- 
ticated test on Mr. Pakpahan's right fune 

U/hplV* AOrlipr tartn f ■ « 


TOKYO — Support for Prime Minister 
Ryu taro Hashimoto’s cabinet has fallen to a 
record low, with a majority of voters giving 
a thumbs down to his government, a poll 
published Wednesday indicated. 

Conducted by the Public Opinion Survey 
Association over the weekend, it showed 
that the government’s disapproval rating 
rose 3.1 percentage points, to 52,1 percent, 
compared with a survey in October. 

It was the first time the majority of re- 
spondents disapproved of the cabinet since 
Mr. Hashimoto took office in January 1 996, 
the association said. 

It attributed the drop in support mainly to 
a view that the prime minister's cabinet has 
failed to prevent the nation’s current fi- 
nancial tuimoiL (Reuters) 


where earlier tests revealed an unidentified 
object. 

Mr. Pakpahan. 43, head of the inde- 
peodent and unrecognized Indonesian 
Labor Welfare Union, is serving a four-vear 
pnson sentence for inciting riots. He was 

from' vStSgo 16 hospilal ^ March suffering 

U S. and European unions had offered lo 
pay for Mr. Pakpahan's treatment abroad 
bur Indonesia rejected the request, savins 
his illness was not fatal. / Renter?} 


40 Hurt in Bangladesh 
In Clashes Over Treaty 


Manila, Resuming Talks 
With Communist Rebels 


MANILA — The Philippines govern- 
ment decided Wednesday to resume peace 
talks with Communist rebels after the guer- 
rillas freed a police chief and an army 
sergeant from more than a month of cap- 
tivity, officials said. ■ 

The talks have been proceeding sporad- 
ically since 1992 in the Netherlands, where 
rebel leaders live in self-imposed exile. 


CHITTAGONG. Bangladesh — Nearly 
w 5 re .injured in Bangladesh 
Wednesday during clashes over a peace 
UMty ID end fighting in ihe ChinagonnHill 
Tracts regton, police and other oftl-.al. 

Violence erupted in Ranuamali i, v in 
the southeastern Hill Tracts soon ntW an 

?5 > ° S K ,tl £, n " ,Cd general strike began in ihc 
«=nng India and BunTthC t 

X\v^es P 3S y y sa d r' >Kd ' Chi "^ 

refme^S " * e cou ""Vs onlv oil 


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Indonesian Labor Chief : # 
Treated Well by Doctors j 


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INTERNATIONAL HERALD TRIBUNE, THURSDAY, DECEMBER U, 1997 

INTERNATIONAL 


Blair’s Rx for British Health Care 

H&m Targets Red Tape and Boosts Power of General Practitioners 


By Sarah Lyall 

New York Tbnej Service 


i 


LONDON — The government of 
trime Minister Tony Blair has an- 
nounced a plan that it called a far- reach- 
oveAaul the National 
*tealm Service, the country’s 49-year- 
oldsystem of socialized medicine. 

The future of die cash-poor health 
service is one of the most troublesome 
issues facing the British government, 
which is seeking to improve the fraying 
system while making good on its prom- 
ises not to raise taxes. 

Before May election that brought 
Mr. Blair to power, his Labour Party 
attacked the health policies of the pre- 
vious Conservative government while 
pledging to streamline the health ser- 
vice, put mote money into patient care 
and reduce waiting lists for hospital and 
specialist treatment. 

The result was the plan announced 
Thesday that seeks to abolish several 
hallmarks of the Conservatives' health 
policy, including a so-called internal- 
market system that created competition, 
often divisive, between hospitals, general 
practitioners and local health authorities. 

Under the proposal, the government 
says, the health service will save about 
$1.6 billion by abolishing red tape, cut- 
ting bureaucracy and giving more power 
to the country’s 35,000 general prac- 
titioners. 

“I will take on those who say that the 
NHS has had its day, and that all we ran 
do is preside over its slow decline,' ' Mr. 
Blair said. 

“I don’t just want to save the NHS," 
he added. “I want to give it a new lease 
of life. It will take time, but under this 
government, the NHS will get better 
every year so that it delivers a modem, 
dependable service based on need, not 


ability to pay.” 

His government presented its propos- 
als in the House of Commons, where 
Labour holds a large majority. The plan 
is expected to pass easily. 

Conservatives responded to the plan 
by saying that it would cut the most 
attractive features of their policies — 
including the competition within the 
health system — while merely recycling 
some of their other ideas. 

The plan offered do new proposals for 
one of the health system’s most vexing 
problems: the increasingly long waiting 
lists for hospital and specialist medical 
treatment 

At the end of September, 1.2 million 


17,000 more than had been waiting 
in July. And the lines are expected to 
lengthen during the winter months, when 
a rush of emergency cases often requires 
that long-scheduled routine operations 
and consultations be postponed. 

In November, the government an- 
nounced the formation of a Waiting List 
Action Team, meant to find ways to 
shorten the waiting lists, and promised 
that by the end of March, no one would 
have to wait longer than 18 months for 
treatment. 

In its 1997-1998 budget, announced 
earlier this fall, the government said it 
would spend an extra $2.4 billion on the 
health service. But die plan called for no 
new money to be injected into the ser- 
vice, which this year is costing the coun- 
try $7 1.2 billion, financed exclusively 
from taxes, and which many doctors still 
feel is woefully underfunded. 

About 13 percent of the peculation has 
private health insurance, but toe rest of the 
country relies an the health service or pays 
out of pocket fen - private treatment. 

The British Medical Association said 
it welcomed the government’s decision 


to abolish die internal- market system, in 
which some general practitioners and 
local health authorities purchase a set 
amount of health care from hospitals. 

The system, begun in 1991 under 
Prime Minister Margaret Thatcher, often 
leads to competition between hospitals 
and to differing levels of treatment for 
patients, depending on which general 
practitioner they go to. 

Undo: die new plan, a number of so- 
called Primaiy Care Groups will be set up 
around the country, with general prac- 
titioners and nurses taking on tibe re- 
sponsibility of commissioning care and 
allocating resources in communities. 

“I warmly welcome the new prag- 
matic approach, which replaces the dis- 
astrous internal market with a system, 
driven by patients' clinical needs, 1 ’ said 
Dr. Sandy Mac ara, chairman of the Brit- 
ish Medical Association Council. "Hos- 
pital doctors will be glad to see the end of 
destructive competition. ’ ’ 

At the same time, the medical as- 
sociation said it was dismayed that the 
government had not proposed spending 
any more money on the health service. 

“This provides no extra money for the 
National Health Service at all, and we 
believe that the funding of the NHS lies at 
the very heart of the problems the system 
encounters,’’ said Alan Duncan, a 
spokesman for die medical association. 

Under Mr. Blair's plan, where there Is 
a suspicion of cancer, patients will re- 
ceive new priority treatment. By 2000, 
such patients will be able to see a spe- 
cialist, on the advice of their general 
practitioner, within two weeks. 

The government also proposed to set 
up a new telephone hot line, in which 
patients can call health-service nurses, 
24 hours a day, for telephone consulta- 
tions that might make it unnecessary to 
visit a doctor or a hospital in person. 


Pope Awaits Castro Shift on Christmas 


By Celestine Bohien 

New York Tunes Sendee 

ROME — When they met 
for the first time at the Vat- 
ican in November 1996, Pope 
John Paul II asked President 
Fidel C astro for a Christmas 
present; the restoration of 
Dec. 25 to Cuba's calendar of 
public holidays, bringing the 
island nation back in line with 
every other country in the 
Western Hemisphere. 

Since then, a year and one 
Christmas have gone by. 
Now, with another Dec. 25 
just two weeks away, and 
only a month to go before the 
77-year-old pontiff makes his 
long-awaited trip to one of the 
last of the world s communist 


fortresses, Mr. Castro has yet 
to give his reply. 

"I don't know if next week 
we will have a response," 
said Enrique Gonzalez, a 
spokesman at the Cuban Em- 
bassy to die Holy See. “We 
can’t say whether it will be a 
reality. It is a political de- 
cision that will be taken at a 
high level.’’ 

In the intervening silence, 
the Vatican seems to be step- 
ping up the pressure on the 
Cuban government on this 
and other outstanding details 
about the Pope’s five-day vis- 
it, which will start Jan. 21. 

At a press conference in 
Havana on Tuesday, Jaime 
Cardinal Ortega repeated the 
Pope’s request for a Christ- 


mas holiday, and asked again 
for live access to die state-run 
media during the Pope’s vis- 
it 

As a master of die political 
surprise, Mr. Castro may 
make his decision on the 
Christmas holiday at the last 
minute, experts on Cuba say. 

“I wouldn't be surprised if 
the president as a gesture of 
good, faith, makes these 
changes to die calendar,” 
said Bishop Roberto Gonza- 
lez of Corpus Chnsti, Texas, a 
close observer of the Roman 
Catholic Church’s lurching 
recovery in Cuba. 

In the preparations for the 
papal visit die Cuban gov- 
ernment has already ceded on 
some points pressed by the 


f l 


Q & A / lhar Hermianchuk 


Belarussian Editor Braves 
Regime’s Tightening Noose 


For nearly eight years the newspaper 
Svaboda, or freedom, has been one of the 
few independent voices in Belarus, a former 
Soviet Republic where President Alexander 
Lukashenko appears intent on recreating a 
Communist- style dictatorship. On Nov. 24, 
Svaboda's editor, lhar Hermianchuk, was 
ordered to cease publication. He spoke in 
Prague with Peter S. Green of the Inter- 
national Herald Tribune. 

Q: What exactly did you do to earn 
President Lukashenko's ire? 

A: One of the last things we did was 
publish an article that compared the situ- 
ation in Belarus today with 1937 [when 
Stalin was suppressing Belarussian nation- 
alism]. For that we received a warning that 
we are inciting discord between (he cit- 
izenry and the government. For another 
article we were accused of supporting the 
opposition’s shadow cabinet, because we 
gave them a favorable grade. And also, for 
instance, when the presidential security 
force was illegally transshipping alcohol 
through Belarus to Russia, we were able to 
get the documents and print them. 

Q: President Lukashenko's regime has 
already imprisoned several journalists. Is 
there any chance the situation will improve 
for the press? 

A: No. It's going to get worse. As little as 
a half a year ago we didn't think journalists 
would be arrested and detained, we didn't 
foresee that newspapers would begin to be 
shut down. Now we can expect that more 
independent newspapers will be shin down. 

Q: What will you do to keep your readers 
informed? You mentioned plans to publish 
under a new name. 

A: We expect that the next newspaper we 
publish will be shut down, loo. We’ll pub- 
lish legally while we can, but if we can't do 
it legally, we'll do it illegally. We still have 
a period of underground press to live 
through, like Poland’s Solidarity. There are 
some small private printing presses or even 
photocopiers. 


Q: Besides the legal and political pres- 
sure there must be great financial pressure 
on your newspaper, now difficult is it to get 
the money to print? 

A: We are 10 journalists. It’s a small 
staff, but we can't afford any more. We 
were supported mainly by readers, because 
advertisers were afraid they’d have prob- 
lems with the government if they adver- 
tised in an opposition newspaper. You can 
imagine the level of fear in a country where 
now we can only publish on the internet. 
And the firm that was publishing us on the 
Internet now is afraid as well. But very few 
people in Belarus have access to the In- 
ternet, so our goal is to print it again, on 
paper. And' we will also have our stories 
rend on America’s Radio Liberty. 

Q: How important will a free press be in 
bringing about change in Belarus? 

A: If any changes can be expected in 
Belarus, they will be attributed to a free 
press. 

Q: Are you ready to go to jail for it? 

A: Of course, we don’t want to, but we 
are determined to do our work and if it leads 
us to prison, what can we do? We hope that 
other people will cany on the work. 

Q: Are you afraid for your life under the 
Lukashenko regime? 

A: I think yes, although if they really 
wanted to kill me, they could have done it a 
long time ago. But I still take precautions 
not to wind up in some kind of arranged 
accident 

Q: How much longer con Lukashenko 
last? 

A: I think things will eventually get 
better, because I don’t think this regime can 
last long. The economic situation is getting 
worse and worse and it’s harder to get by 
every day. But Lukashenko’s supporters are 
mainly the old people, in the countryside, 
and each year 100,000 young people come 
of age and 100,000 old people die, and those 
young people are more progressive. There 
will probably be mass demonstrations, but 
it will be three or four years. 



Aaony Njnsnofl/fteoeoi 

CAMPAIGN MARCH — Supporters of Charily Ngilu, a candidate in Kenya’s Dec. 29 election who is 
seeking to become Africa’s first woman president, crossing a river on their way to a district headquarters. 


Vatican. It has granted more 
visas to visiting priests and 
nuns, and has agreed to let 
Cardinal Ortega make an ap- 
pearance on state television to 
explain the scope of the 
Pope’s visit 

The Pope, who will spend 
each night of his stay in 
Havana, is scheduled to make 
day trips to Santa Clara, Ca- 
maguey and Santiago de 
Cuba, and to conclude his vis- 
it with an open-air Mass in 
Havana’s Revolution 
Square. 

He is due to meet privately 
with Mr. Castro on Jan. 22, at 
the Palace of the Revolution. 

Celebrating the last of a 
series of preparatory Masses 
in the Havana region. Car- 
dinal Ortega on Monday out- 
lined some of the themes of 
the Pope’s visit, which will 
range from family values to 
human rights, from reconcili- 
ation among Cubans to die 
church’s solidarity with the 
Cuban nation. 

A key issue, raised by 
church officials during nego- 
tiations between die Cuban 
government and the Vatican 
over details of the trip, is die 
provision of public transpor- 
tation to and from the Pope’s 
far-flung Masses and public 
appearances, in a country of 
uncertain and infrequent bus 
service. 

“This is something impor- 
tant for everyone,” said a 
Vatican official. “How can 
you participate if you cannot 
get there?” 

* But of all the final points 
still awaiting an answer from 
Havana, none has the sym- 
bolic power of Christmas, a 
holiday that was excised from 
the Cuban calendar in 1969, 
at a time when the island was 
pushing to bring in a record 
sugar cane crop. 

Now, on Dec. 25, Cuban 
children go to school, their 
parents to work and last year, 
the Cuban Parliament sched- 
uled a special session on 
Christinas Eve, at a time 
when Catholics around the 
world go to church to attend 
Midnight Mass. 


Jordan Expels Iraqi Diplomats 

AMMAN. Jordan — Jordan expelled 17 Iraqi diplomats 
Wednesday after Iraq executed four Jordanians accused of 
smuggling car parte valued at $850. 

Deputy Prime Minister Jawad Anani summoned the Iraqi 
ambassador, Nouri Wayess, and told him to reduce the 
number of his diplomatic staff to seven from 24, the state- 
run Petra news agency reported. < 

The diplomats have been given one itaek to leave the 
country, the agency said. f 

Early Wednesday, Mr. Anani cold angry lawmakers in 
the Jordanian Parliament that he had expressed to the Iraqi 
ambassador “the condemnation and the outrage of the 
Jor danian government over the executions. “ 

Abdullah Nusur, another deputy prime minister, said 
Jordan was “bewildered” by the executions, especially 
because Amman had been supporting Baghdad in its efforts 
to lift UN sanctions. (APJ 

Albright Praises Ugandans 

KAMPALA, Uganda — The U.S. secretary of state, 
Madeleine Albright, praised Uganda on Wednesday as a 
“beacon of hope” for the rest of Africa. 

“As I travel from Uganda to states where the wounds of 
national conflict are very raw indeed, I see Uganda as a 
beacon of hope,” Mrs. Albright said at the start' of a tour 
through Africa’s Great Lakes region. “And I am not 
alone.” She held talks with President Yoweri Museveni 
before flying to the northern town of Guiu, where she was to 
visit victims of an insurgency campaign by Joseph Kony’s 
Lord's Resistance Army. 

Mr. Museveni said: “I am happy to note that the U.S, 
recognizes that Africans cannot be marginalized. In fact I 
have said before that Africans can be ma rginaliz ed only by 
themselves.” 

Mr. Museveni a reformist, is a widely respected Great 


Lakes regional jpoWer broker with close links to the gov- 
ernments of Rwanda;- Burundi . and the Democratic Re- 
public of the Congo. Mrs. Albright will also visit Rwanda 
and Congo. ( Reuters ) 

UN Jets Bring Food to Nairobi _ 

NAIROBI — After days of delay, a United Nations 
aircraft Wednesday dropped the first packages of food to 
thousands of Somalis trapped by months of flooding, a UN 
spokeswoman said. 

■ . Lindsey Davies, a spokeswoman for the World Food 
Program, said two wooden pallets loaded with eight tons of 
com were successfully parachuted from a Hercules C- 130 
transport plane over Garbafaare in the Juba Valley in 
southern Somalia. “We have successfully completed the 
first air-drop mission,” she said. 

At least 1,500 people have drowned and more than 
230,000 have been driven from their homes by two months 
. of heavy rains that caused the Juba and Shabelle rivers to 
inundate towns and villages. (AP) 

American Is Seized in Acapulco 

• ACAPULCO — Gunmen posing os federal police of- 
ficers have kidnapped the American manager of one of 
Acapulco's leading hotels, the Princess. 

A police officer was killed and another was wounded In 
a shoot-out that ensued, a law enforcement official said 
Wednesday . 

Ten heavily armed men dressed in the black uniforms of 
the federal police intercepted Vincent Carrosa’s car Tuesday 
near die hotel, said Hector Omar Maganda of die Guerrero 
state district attorney's office. 

As the kidnappers forced Mr. Carrosa into their truck, a 
police squad passing by gave chase, Mr. Maganda said. Jose 
Martinez Manriquez, a deputy commander, was fatally shot 
in die head and neck, Mr. Maganda said. (AP) 


A Bare Majority Passes OECD Literacy Test 


The Associated Press 

WASHINGTON — Nearly half of 
American adults have trouble with such 
common mental demands of life as read- 
ing newspapers, filling out job appli- 
cations or balancing a checkbook, a sur- 
vey found. 

Americans are not alone, the Paris- 
based Organization for Economic Co- 
operation and Development reported 
Wednesday in its annual look at edu- 
cation. “Low literacy is a problem 
everywhere,” the report said. 

Among 12 Western industrialized na- 
tions, Swedes scored best and Poles worst 
in the International Adult Literacy Survey 
that was cited in the report. There was no 
statistically significant difference among 
Americans, Australians, Belgians, Bri- 
tons, Canadia n s, Dutch, Germans, Irish, 
New Zealanders and the Swiss. 

But one researcher cautioned that such 
surveys tend to overstate the problem by 
confronting test-takers with unfamiliar 
documents. Police are not reporting 
people lost because they “couldn't find 
their way to Main Street,’ ’ said Richard 
Venezky, an educational psychologist at 
the University of Delaware. 

Although the report found high levels 
of college education among Americans, 
it also found some disturbing signs. 
High-school dropout rates were high. 
And education was not always a guar- 
antee of literacy, defined by the research- 


ers as ability to read texts, understand 
documents such as charts, graphs and 
schedules, or perform arithmetic. 

Moreover, the report suggests that 
workers who do not use their mental 
skills lose diem. 

Statistics Canada and Educational 
Testing Service, a private American com- 
pany, did the research in 1994 and 1995, 
measuring people on three scales that 
comprise literacy: reading prose, reading 


documents and doing mathematics. 

Depending on the country, between 
one-q uarter and three-quarters of the re- 
spondents ages 16 to 65 failed to attain 
the level considered “a suitable min- 
imum skill level for coping with the 
demands of modem life and work.” 

In the United States, 46 percent were 
below that level in reading prose, 49 
percent in reading documents and 46 
percent in mathematics. 


Britain Rides Out Concessions.on Gibraltar 


Agence Frtmce-Presse 

LONDON — Britain will not make 
any concessions on sovereignty over 
Gibraltar, a Foreign Office spokesman 
said Wednesday ahead of talks here 
with Foreign Minister Abel Matutes 
of Spain. 

"Our starting point on sovereignty 
in Gibraltar is that there can be no 
change to the status of Gibraltar 
against the wishes of the people, 
and that is enshrined in the Gibraltar 
1969 constitution,” the spokesman 
said. 

Madrid, which also c laims sover- 
eignty ova: Gibraltar, raised the pos- 
sibility Tuesday of a power-sharing 
arrangement. 


Mr. Matutes and the British foreign 
secretary, Robin Cook, were to meet 
under the framework of agreements 
between Britain and Spain, reached in 
Brussels in 1984, that provide for an- 
nual talks on Gibraltar. 

The London talks also came against 
a background of rising tension be- 
tween Madrid and the government of 
Gibraltar over links between the Brit- 
ish colony and Spain. 

In a recent television interview, Mr. 
Matutes said: ‘ - Our patience has lim- 
its and if no progress is reached 
- through constructive dialogue and co- 
operation, Spain will begin demand- 
ing its rights with more and more 
insistence.” 


Branson’s Balloon Is Found, and May Fly Again 


Knurrs 

MARRAKESH, Morocco 

The British businessman 

Richard Branson said Wed- 
nesday that he hoped to try 
again to fly around the world, 
starting this weekend, if his 
balloon, now being recovered 
in Algeria, has not been badly 
damaged. 

“The Algerians seem to be 
very cooperative,” the head 


of Virgin Group said. "Their 
army is trying to help us wrap 
the balloon up. It mil be 
brought to the Moroccan bor- 
der where a helicopter is wait- 
ing to bring it back to Mar- 
rakesh by the end of the day or 
tomorrow morning.” 

Mr. Branson said the bal- 
loon, which broke its mornings 
just before a planned launch 
Tuesday, had been found cm 


the ground 100 miles (160 ki- 
lometers) inside Algeria. “We 
have a 75 percent chance of 
recovering it again,” he said 
He said he had asked die 
Algerians to cut (he balloon to 
prevent it from taking off 
when the helium inside 
heated up as the day pro- 
gressed. The Algerians, he 
said, were awaiting his writ- 
ten authority to do so. 





■g£'A stable democracy 
£* A ripening market economy 
M A favourite re-investment 
location 

'Almost fuli-grown 
. -privatization - 
# A home of creativity, 

, - diligence and skill ■ 
of The business center of 
Central & Eastern.Europe; 


• UMSRYpr VAr ** WTttfcT. Mto'jfeMW h„ 







PAGES 


EDITORIALS /OPINION 


Jteralb 


INTERNATIONAL 



Srtbune 


Pl-BUSHKP wmj TUB Niw YORK TIMES AND YlUC WASHINGTON VOCTT 


‘Israeli Intransigence’ 


What East Asia Really Needs Is More Democracy 

SPSS* 


'‘Israeli intransigence" has become 
an all-purpose explanation for the 
stalemate in Middle East peace talks. 
The Clinton administration is moving 
rhetorically into this scfaooL The pres- 
ident publicly snubbed the Israeli 
prime minister. The secretary of state 
blames Israel for the American dif- 
ficulty in rallying Arab states against 
Saddam Hussein. 

In fact, Israel does take a hard line, 
and it thrusts the burden of concession 
upon the other side. Bnt that is only 
part of the picture. 

The other part is Palestinian ter- 
rorism. While it continues, Israel will 
be driven, and will have good reason to 
be driven, by a passion for self-defense 
so intense as to defy what many people 
regard as reasonable political compro- 
mise. No outsider, even one coming as 
a friend, can in conscience force Israel 
into a position leaving Israelis unsafe 
in either their streets or their strategic 
ramparts. Dealing with terrorism is the 
prerequisite to peace. 

Many people now believe that ter- 
rorism is essentially the product of 
Israeli intransigence. They think that if 
the Israelis relaxed their policy, they 
would bring out Palestinian moderates, 
and the two sides would work things 
out This is a tempting scenario, but it 
scants the bard core of the terrorism 
problem. Palestinian violence is dir- 
ected not only against a hard-liner like 
Benjamin Netanyahu but also against a 
moderate like Yitzhak Rabin and even 
a soft-liner like Shimon Peres. 

If the suicide bombers had confined 
their horrors to the Israeli hard-liner 
times, that argument might have some 
point. But me bombs that did the 
harshest damage exploded on the Ra- 
bin and Peres watcnes. The bombers 
were not protesting the Netanyahu 
policy. They were protesting the ex- 
istence of IsraeL 

The priority, then, is to halt ter- 
rorism — all of iL U will not do to say 
coldly that the Israelis most suffer the 
occasional suicide bomb. Israel has 
the right to insist on a normal standard 
of security. Here the performance of 
Yasser Arafat is simply inadequate. He 
has fallen into the habit of using the 
Israeli-intranslgence alibi in careless 
usage elsewhere. Neither in word nor 


in deed has he provided the leadership 
that this crisis demands. 

The shortfall is the measure of his 
political weakness. Is it a weakness 
that can be remedied if Mr. Arafat has 
the will? Yes. But some part of what 
holds Mr. Arafat back now is also that 
even if he were to sign on Israel’s 
dotted line, he would still be lacking 
the single result of most value to him 
and his people: statehood. His failure 
to win that prize further weakens him. 
Israel’s agreement to provide the prize 
would strengthen him 

Moreover, Israelis are much more 
likely to offer it if the United States is 
encouraging them and ensuring security 
support. An American-backed Israeli 
oner of Palestinian statehood could be- 
come the linchpin of a settlement. Now 
the administration supports merely toe 
Palestinians' “legitimate political in- 
terests,” an ambiguity. 

You could say this formulation re- 
flects a traditional, intended, deserved 
American favor for IsraeL But the real 
favor would be to fortify Israel’s re- 
solve to take a difficult but promising 
step that, crucially, Washington would 
have an obligation to see is safe and 
secure. Washington would be in the role 
of guaranteeing the Palestinians’ pro- 
hibition of terrorism and the Israelis’ 
recognition of Palestinian statehood. 

A fatigued Palestinian mainstream 
may be prepared — not happy or eager, 
but resigned and prepared — for an 
accommodation if it comes tied to the 
paramount goal of statehood. Pales- 
tinian statehood provides a feasible 
step that could unlock a negotiation 
now facing grinding stalemate and 
possible explosion. It would help so- 
minded Palestinians make the strenu- 
ous political effort required to combat 


now outlined, advanced nations and 
multilateral institutions have commit- President Suharto in Indonesia, Prime 
ted more than $100 billion to East Minister Mahathir bin Mohamad m 
Asian countries which, less than a year Malaysia, or numerous other presidents 
ago, were among the co rn erst o nes of and prime ministers, past ana present, 
tiie new global economy. Few top officials in any of these 

Fifty-seven billion dollars to Seoul, nations have displayed much under- 


izing, and sometimes discouraging, the 
development of civil societies. 

Thus, President Suharto’s chief con- 
cern now seems to be his children’s 
investments. As to Prime Minister Ma- 
hathir, not even his own cabinet ap- 
pears to take seriously his rantings 
against Western investors. 

nn.?i. IT... a lui^hni Arieic 


Korea’s foreign debt, oral South 
Koreans consume some 8 percent ol 

Japan's global exports 

It is logical enough for Japan to 
provide nearly a fifth of the bailout 
Kinds (twice the U.S. share), but that is 
not leadership. It is asset protection. 

In Southeast Asia, by contrast. 


$23 billion to Jakarta, $17 billiou to 
Bangkok, where the crisis began — 
these and other sums may save banks, 
finance houses, industrial conglomer- 
ates and, not least, ruling elites. But 
they arc unlikely to do much to solve 
the region’s most fundamental prob- 
lems — which are neither economic 
nor financial, bnt politicaL 

From Seoul to Jakarta, it is already 
evident that East Asian governments 
wOl have trouble navigating the rough 
political seas that recent economic 
storms have stirred. Sooth Korea, in 
particular, may not be able even to keep 
its bargain with the IMF. 

To one degree or another, these na- 
tions have never developed the strong, 
supple democratic institutions they 
now need. And to an extent that may 
shock many of os in coming mo nth*; , 
East Asia is leaderless. 

Those may seem harsh judgments, 
but consider die administrations of 


standing of the stresses and strains of 
young (temocracies- Their dealings with 
opposition parties have been something 
less than nuanced. Their flexibility in 
the face of political and social com- 
plexity has been virtually niL 

Under the social contract by which 
East Asia’s political elites rule, fast eco- 
nomic growth is conferred in exchange 
for deferral of democratic government. 
This simple formula may have worked 
for a while, bm it is now a hindrance. 
The sooner it ceases, the better. 

Bribing electorates unfamiliar with 
the workings of democracy is not a 
mark of leadership. Neither, of course. 


“^Swri^hip crisis Toiyo has oblong as b usually 
has many roots, the U.S. role cannot be does 


East Asian elites have routinely em- 
ployed to prod the recalcitrant and im- 
pose “Asian values.” 

Asia’ s political elites are best sees as 
custodians. Their primary task is to 
reshuffle- favors among rising and fall- 
ing special interests, while de-emphas- 


overiooked. Throughout the Cold war 
era, Washingto n too often encouraged 

inflexible rulers with anti-Commumst 
credentials instead of those who could 
have advanced their societies along au- 
thentically democratic paths. Whether 
one agrees with the strategy or not, the 
price for it must now be paid. 

The United States has long cast Ja- 
pan as the exception among Asia’s 
politically underdeveloped nations. As 
the current crisis unfolded this fell, 
Washington wanted Tokyo to take a 
major part in resolving it. 

False expectations bom of bad his- 
tory, Absent the open political conflict 
found elsewhere, Japan suffers the 
j gq rnt* leadership deficiency as the rest 
of the Pacific region — and for the 
same reason. 

■ Yes. Japan is a leading contributor to 
the South Korean rescue plan. But Jap- 
anese banks hold a quarter of South 


It is essential to recognize East - 
Asia's leadership vacuum if we are to 
understand events -in the region. Bail- 
out programs may ease short-term eco- 
nomic emergencies, but Asia's most- 
basic problems' arc a half-century old. 

East Asian natrons are likely to 
emerge from their present problems 
either as more authoritarian or more 
democratic. It is difficult to discern 
much middle ground. 

But the desired outcome demands a 
transition to the region's first gener- 
ation of genuine leaders with broad, 
mature vision. And rescue packages, 
cannot create them. . 

The writer, a former Asia correspon- 
dent for the International Herald- 
Tribune, won this year’s Kiriyuma Pa- 
cific Rim hook prize far "Japan: A 
Reinterpretation." He contributed this 
to the International Herald Tribune. 


Why Americans Should Take Asia's Setbacks Seriously 


lingering terrorism. 
StilL some Pales 


Still, some Palestinians will keep 
acting on fantasies of destroying IsraeL 
The Israelis will demand and deserve a 
right to manage their own response and 
to be supported in it by the United 
States. That would be just Israelis can- 
not be expected to extend the requisite 
assurances without American urging 
— and without well-grounded con- 
fidence in their protection in any such 
new circumstances. 

—THE WASHINGTON POST. 


The WTO Gets It Wrong 

It was unrealistic to expect the used to block foreign competitors, vi- 
World Trade Organization to endorse olate trade accords. The United States 
Kodak's broad claims that it has been pointed to decades of governmeut- 
detiberately shut out of-the Japanese - sanctioned -anti-competitive behavior- 


W ASHINGTON — Any- 
one f amilia r with history 
will find unsettling parallels 
between fee present situation 
and the onset of the Great De- 
pression. Then as now, stock 
markers crashed; banking 
crises depressed production 
and employment; government 
officials professed optimism. 

This is not a prediction of 
another Depression. But it is a 
caution: Slumps do happen, 
and governments can lose con- 
trol of events. 

Americans underappreciate 
die magnitude of Asia's set- 
backs. Consider the slaughter 
in their stock markets. 

For the year from November 
1996 to November 1997, Mor- 
gan Stanley Capital Interna- 
tional reports the following de- 
clines: Japan, 25 percent; 
Singapore, 25 percent; Hong 
Kong, 27 percent; the Philip- 
pines, 55 percent; South 
Korea, 59 percent; Indonesia, 
60 percent; Malaysia, 68 per- 
cent; Thailand, 75 percent 
Confidence has shriveled. 


By Robert J. Samuelson 


eminent and private blocking actioas. 
Dispute panels generally deal wife tar- 
iffs and other specific trade barriers. 
But it is distressing to see the trade 
organization embrace blatantly pro- 
tectionist behavior by fee Japanese 
government 

The United States accuses Japan of 
nullifying tariff reductions and other 
trade commitments made over the past 
30 years by helping domestic busi- 
nesses to rig the film market against 
American and European manufactur- 
ers. The Japanese government did in 
fact guide the' formation of an exclus- 
ive network of wholesalers tied to Fuji 
Photo Film that had no intention of 
doing much business wife Kodak. The 
government also blocked fee creation 
of large retail stores, to which Kodak 
could have sold film directly without 
help from wholesalers, and helped 
private companies throttle retail price- 
cutting. which Kodak could have used 
to win customers. 

Not ail of these government actions 
involved government edicts or laws, 
which are the ordinary objects of trade 
disputes. The panel accepted fee 
United Stales' argument that govern- 
ment suasion — Japan’s -way of con- 
ducting industrial policy — could, if 


reams of documents uncovered by Jap- 
anese-speaking investigators hired by 
Kodak that showed the government 
tailoring its policies to block Kodak. 
But fee panel insisted upon ironclad 


Asia's capitalist class has seen 
much of its paper wealth van- 
ish. Banks are reeling from bad 
loans. Inflows of foreign cap- 
ital have slowed or reversed. 

In 1997, Americans have 
withdrawn $3 billion from 
Asian mutual funds, reports fee 
Investment Company Institute. 
Construction of new factories 
by global companies will de- 
cline. New contracts for for- 
eign investment in China have 
dropped 39 percent in 1997. 

All this means that Asia's 
slump could go deeper and last 
longer than most economists 
now assume. 

Bruce Steinberg, Merrill 
Lynch’s chief economist, told 
clients after a trip to Asia: “We 
believe feat Asian economies 
arc in erven worse shape than we 
thought before we visited.” 

Aral Asia’s problems have 
spread to other -“emerging 
markets” — Brazil, India, 
Russia. There is some danger 
of a global bank run. 


I 


International banks could 
call loans to banks in devel- 
oping countries. At fee end of 
1996 there was $335 billion of 
such short-term loans, esti- 
mates fee Institute of Interna- 
tional Finance in Washington. 

What, supposedly shields 
America from this economic 
implosion is feat U.S. exports, 
especially to Asia, ate not large 
enough to drag down fee 
American economy. 

It is true that exports rep- 
resent only 11 percent of U.S. 
GDP. But at least 25 percent of 
U.S. export markets now. face 
economic slowdowns. This in- 
cludes Japan, South Korea. 
Taiwan, Brazil. Thailand, 
Malaysia, Argentina. Russia 

and Chma. 

And because the dollar has 
appreciated on foreign ex- 
change markets — global in- 
vestors have sought a safe 
haven in U.S. stocks and 
bonds, raising the demand for 
dollars — aft American ex- 


ports will face harder times. 

The Asian crisis could also 
harm fee U.S. economy in a 
second way. Cheap imports 
could depress prices, lower 
profits and reduce business in- 
vestment. 

Asia is said to be awash in 
excess industrial capacity in 
everything from computer 
chips to chemicals to cars and 
auto parts. No one knows fee 
size of these alleged gluts or 
the extent to which they can be 
exported. But if they can be. 
they will be. 

America's factories may lose 
sales and may have to cut prices. 
If so, would companies con- 
tinue to invest in expanded ca- 
pacity? And if investment and 
exports both weaken, would the 
economy stay strong? 

Good questions. But in 
today’s cheerfulness, doubts 
are dismissed. There are said to 
be offsetting forces. 

Import competition could 
dampen inflation. Consumer 


purchasing power — income 
adjusted for inflation — would 


C rjn> rs - • 

Cmt -*«**■. ' ‘ 


improve. With lower inflation, 
interest rates might drop; in- 
deed. long-term interest rates 
have already declined by about 
a percentage point since 
spring. And Asian economies 
might recover sooner rather 
than later. 

It is all guesswork. 

Japan — its economy stag- 
nant, its banks weak — re- 
mains a troubling enigma. 
Elsewhere in Asia, slumps 
might trigger popular back- 
lash. In South Korea there arc 
already protests against fee 
tough conditions attached to 
the IMF’s loan. And fee U.S. 
economy still shows some 
worrisome signs of rising in- 
flation. No one knows how the 
uncertainties will converge. 

The pessimism of the past 
underestimated the U.S. econ- 
omy’s basic vitality. Today's 
optimism may ' mistake 
strength for invulnerability. It 
would be nice to be wrong. 

This comment is taken from 
a longer article in Newsweek. 


For the Mide^t, Better aflig DealTKan a Big Disaster , 


proof linking government policies to 
Kodak's problems. It found nothing 
that met this unrealistic standard. 

The trade panel might have reluc- 
tantly exonerated Japan because it 
could not realistically reach back three 

closed markets? It could have warned 
fee Japanese feat a waiver for past anti- 
competitive behavior provides no im- 
munity for fee future. Instead it ab- 
solved ail Japanese wrongdoing. 

The dispute panel’s ruling tells Ja- 
pan that its protectionist ways are ac- 
ceptable as long as they are subtle. It 
also fuels U.S. resentment — which 
has been expressed already by several 
Senate leaders — of international trade 
rules, even though fee United States 
has lost none of fee previous 14 cases it 
brought before fee trade organization. 
The panel did get this ruling wrong. 
Despite that, the United States should 
do nothing to undermine impartial dis- 
pute panels, of which it has been fee 
overwhelming beneficiary. 

— THE NEW YORK TIMES. 


P ARIS — American officials 
insist that Washington and 
its allies stand ready to strike 
Iraq militarily if Saddam Hus- 
sein continues to evade and chal- 
lenge UN weapons inspections. 
But far away from fee Potomac, 
such threats sound empty. They 
seem to have little chance of 
ever being carried out 
Officials in the French cap- 
ital talk of fee time for military 
action in this crisis as haying 
passed once and for all. The 
remaining problems wife Iraq 
can and will be settled by di- 
plomacy, they suggest, leading 
inevitably to the Sting of eco- 
nomic sanctions, even if Sad- 
dam is still in power. 

Left unsaid but not far from 
fee surface is the French sense 
that fee din ton administration 
is locked into losing policies in 


By Jim Hoagland 


Iraq. Iran and the Middle East 
peace process. France does not 
hitch its wagon to losers. 

In theory, fee United States 
can still act alone, militarily or 
diplomatically, and retrieve its 
eroding position in the Gulf and 
Middle East In practice, the 
Clinton administration’s op- 
tions in this crisis are withering 
rapidly as the world accommo- 
dates itself to the illusion that the 
presence of UN inspectors in- 
side Iraq means that all is welL 

That is a false assumption. It 
was only by accident through 
the desertion of Saddam’s son- 
in-law in 1995 that fee UN Spe- 
cial Commission learned the 
extent of fee atomic, biological 
and chemical weapons material 
that fee Iraqis had successfully 


hidden from its inspectors, and 
where to look for that material. 

There have been no serious 
inspections in Iraq for nearly 
two months. The regime has 
had plenty of time to work out 
new hiding places and tech- 
niques for its weapons of mass 
destruction and surviving mis- 
siles. Baghdad can string out 
discussion of new inspection 
rules for another month, or two. 
and continue chipping away at 
the strong coalition feat went to 
war against Iraq in 1991. 

If Saddam Hussein does not 
overplay his hand. Bill Clinton 
will be tempted to settle for an 
apparent success to get himself 
off the Iraq hook. In a cosmetic 
success, fee UN inspectors 
would still be in Iraq, but the 


Other Comment 


Turks and Israelis Get Together 


When the System Is Rigged 

The fixation with income gaps [may 
reflect] less the actual resentment of 
Asia’s masses than a Western intel- 
lectual obsession wife equality. 

What grates on people is not that the 
neighbor may have more chan they do 
but when fee differences are based, in 
the World Bank's words, on “unfair 
wealth acquisition linked to state- 
private family elite relations, lack of 
transparency, corruption and rents.” 
To put it in laymen's terms, people 
resent it when their system is riggea. 

This concern is perhaps most vividly 


embodied in a new phrase now popping 
up in the Chinese press, the Five Colors: 
hong (red), huang (yellow). Urn (blue), 
bai (white), hei (black), the colors are 
said to represent fee five roads to riches 
in modem Chinese society, respective- 
ly, party connections, prostitution, cus- 
toms, drugs and triads. 

Like most 'caricatures, this is of 
course exaggerated. But fee idea which 
it expresses — that wealth in China is 
at its root corrupt — if it becomes 
popularly accepted will prove far more 
lethal than any income gap. 

— Far Eastern Economic Review 
(Hong Kong). 


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W ASHINGTON — Two 
meetings this week will 
affect the power balances of to- 
morrow’s Middle East. 

Most eyes are on Tehran’s 
Islamic Conference, where 
leaders of 55 mostly Muslim 
nations listen impassively to a 
radical ayatollah — whose in- 
tonal theological authority they 
know is crumbling — rail at the 
“poisonous breath” of the 
United States and IsraeL 
Less noticed but far more sig- 
nificant is Turkey’s answer to 
fundamentalists and dictators: 
the first official visit to Turkey of 
an Israeli defense minister, ac- 
companied by a large delegation 
of military officials, technicians 
and business executives. 

Turkey is a secular Muslim 
country. As its neighbors that 
are Arabs — led by Iraq, Syria 
and Egypt — passed a resolution 
:in Tehran denouncing the Turks 
for their growing ties to IsraeL 
the defense minister of Turkey 
coolly replied: “We respect fee 
Islamic Conference, we belong 
to it but we cannot allow it to 
dictate our relations.” 

• The man who has done most 
in the past eight years to bring 
about this tectonic shift is the 
former Israeli air force general 
David. Ivri. Reached by tele- 
phone in Ankara on Tuesday, 
fee nonpoiitical Mr. Ivri told 
me: “Despite fee passionate 
statements from other coun- 
tries, this strategic tie is sta- 
bilizing. It’s not directed 
against anybody.” 

Except aggressors. 

Turkey needs some new 
friends in die world. It sees Syr- 
ia playing host in Damascus to 


By William Safire 

the PKK Kurds trying to break 
off a large piece of Turkey. It 
sees Iraq and Iran developing 
fearsome new weapons and the 
missiles to deliver them. 

It sees Germany and Greece 
selfishly blocking its entry into 
European integration, and its 
importance to NATO dimin- 
ished wife fee temporary re- 
duction of fee Russian threat. 

What can Turkey get from its 
new bonds with Israel? 

It bas already contracted for a 
$630 million modernization of 
its air force — 54 of its outdared 
fighters will be equipped with 
the latest avionics and radar 
systems, and a new deal is in the 
works for 48 more. That does 
not turn them into F-l-5s, but it 
will enable them to knock down 
what nasty neighbors might 
send aloft 

Also, Israelis know how to 
build advanced tanks; talks are 
under -way on a joint design fix- 
production in Turkey. 

Ground-to-air missiles are on 
the shopping list Because fee 
(J.S. -Israeli military tie is not 
subject to political vicissitudes, 
Turkey will look to Israel to get 
American permission to sell 
Arrow anti-missile missiles (a 
joint U.S.-Israel defensive 
weapon coming on line in 
1999), and to urge fee United 
States to help Ankara. 

Israel’s interest in the Byz- 
antine bond goes beyond a 
chunk of future billions in mil- 
itary spending. Its airmen can 
now train in airspace feat offers a 
land profile of battle sorties. In- 


ae Minister xviesur • 

2S JN OUR PAGES; 100, 75 AND 50 YEARS AGO * j 


telligence cooperation is a pros- 
pect And a nation of 6 million is 
more willing to take risks for 
peace with a nearby nation of 60 
million as a strategic partner. 

The Israelis will leave it to 
fee Americans to remind Ank- 
ara, cracking down on Kurdish 
separatists and closing up fee 
religious party, about the value 
of human rights. The Turks 
know feat the United States will 
do that, too, despite its need for 
Turkish bases to maintain the 
□o-fly zone over northern Iraq. 

Before Prime Minister Mesut 
Yilmaz visits the White House 
next week, I expect him to 
throw the outspoken Kurdish 
dissident Ley la Zana out of 
prison, although that member 
of Parliament prefers to remain 
locked up for dramatic impact. 

As Mr. Ivri foresaw, the logic 
of T urkish-Israeli military, eco- 
nomic and technological ties (it 
is impolitic to call the new re- 
lationship an alliance) is greater 
titan Islamic solidarity or Euro- 
pean clubbiness. Common 
threats create mutual interests, 
and growing trust develops 
comrades in more than arms 

In ancient times, Jews and 
Greeks lost to Romans, who 
were swallowed up by the Byz- 
antine Empire, which .was 
broken up by Turks, Persians, 
Russians, Arabs and Venetians. 

In modem times, Turks and 
Jews protea themselves against 
Persians and fee Arabs of Iraq 
and Syria, who are supported by 
Russians, Greeks and the Goths 
and Romans of Europe. The 
Venetians seem to be oat of it, 
as are fee Americans. 

The New York Times. 


regime would be able system- 
atically to frustrate their work 
while France, Russia and others 
push for the lifting of sanctions. 

How to avoid being pushed 
into that situation? The surest 
way would have been to use 
significant force against Sad- 
dam and tie it to a political 
strategy to finally overthrow 
him. The results of fee Gulf 
War, which led to the first se- 
rious Israeli-Palestuuan peace 
talks in Madrid and eventually 
to fee Oslo agreements, suggest 
that face can produce positive 
change and that nervous Arab 
and European allies will follow 
a determined U.S. lead. 

But Mr. Clinton’s aversion to 
that approach is now clear. Sad- 
dam, and the French, seem to 
have read this president accur- 
ately: Diplomacy, and deal- 
making, are fee only tools avail- 
able to U.S. policy ai this stage 
of fee confrontation. 

Unable or unwilling to 
change fee regime in Baghdad. 
Mr. Clinton can still change the 
environment in which Saddam 
operates. The American pres- 
ident must offer a Grand Bar- 
gain for the entire region to 
bring Arab and European allies 
into a reinvigorated contain- 
ment program in which main- 
taining sanctions and forceful, 
invasive inspections in Iraq 
would be key elements. 

Relaxing U.S. attempts to 
isolate Iran would have to be 
part of fee new arrangement 
with the Arabs. and Europeans 


on Iraq. So would dear and ef- 
fective U.S. pressure on the Net- V 
anyabu government to halt new ; 
settlements on the West Bank,, 
while final status talks with the' 
Palestinians take place. I 

Mr. Clinton must paint a re-1 'A 
gional triptych rather than feor; v 
three separate, ineffectual pol-l ' 
icy tableaux that he has*- 
sketched intermittently. 

This is a tall diplomatic order'- 
with some unappetizing ele-.»- 
meats. Whatever their flaws,.' - 
Benjamin Netanyahu's policies: 
are not the cause of the con-,; 
frontation with Saddam Hus-f. 
sein. But Iraq has exploited theC 
tensions rising from the Israeli;, 
leader’s destructive assaults onK 
the legitimacy of fee Palestinian 
Authority and on the agree-;, 
meats he inherited from Yitzhak i 
Rabin and Shimon Peres. M 

Concern has mounted in* * 
Europe as Mr. Netanyahu has/-, w 
stubbornly rejected increas-/ 
ingly desperate U.S. pleas on 
fee peace process. When l asked h 
French President Jacques Chir- U 
ac, who met Mr. Netanyahu ; 
here on Dec. 6, if the Israeli^ 
knew where he was going, Mr.;_ 
Chirac immediately responded: T 
“Yes. he knows where he is' 
going. I fear we are fee ones* 
who do not know where we arev 
going [in the Middle East].” 

On Iraq, President Clinton,: 
has narrowed his options to a.- 
big deal or a big disaster. De-, 
spite all its drawbacks, the deal- 
is the better outcome. ^ 

The UuW{(ii.v(uii Pwii 


1897: Spam’s Honor 

MADRID — Senor Robledo 
made a speech before a great 
meeting of irreconcilable Con- 
servatives. He declared feat the 
granting of autonomy to Cuba 
was a violation of fee Spanish 
Constitution, equivalent to a 
coup tf itat, but added that these 
abuses would be one day swept 
away by an indignant whirl- 
wind of popular justice. “The 
Liberals have deceived us in 
putting the honor of fee country 
in fee hands of foreigners. They 
will receive a check in less than 
twenty days, because fee Con- 
servative party is watching. ’ ’ 

1922: Smart Cotjuettes 

NEW YORK — Mile. C6cUe 
SoreL the Parisian actress, lec- 
turing on coquetry, urged its 
glorification as an inspiration to 
men to do great deeds, declar- 
ing: “A woman can inspire 
only by being great herself. An 


intelligent woman is the most 
fascinating in the world; she is 
more interesting and more al- 
luring than the woman whose' 
beauty is without intellect. A 
woman cannot be really beau- - 
tiful unless she is intelligent” | 

1947: Belgian Royalty* 

BRUSSELS - The Belgi^r 
Chamber ol Deputies . gavei 
Premier Paul Henri Spauk’s 
coalition government a re-n 
sounding vote of confidence onl,‘ 
his handling of the eontrovcr-i. 
I® 1 2 uesl , ion of ihe monarchy., 
M. Spaak asked the vote oft, 
confidence after he had told thee 
Chamber that King Leopold UH 
fcul not done his du tv toward.. 
Belgium s allies during then 

S! nsai P 01 fecal at -A 

titudL, fee Premier added, was 

.jS 5* we *e would have'* 
liked to see him adopt.*’ M.J 

fee problem ’is not one ofa 
me King s honor.” 






INTERNATIONAL HERALD TRIBUNE, THURSDAY, DECEMBER 11, 1997 


OPINION/LETTERS 


Italy Is Waking Up, and Germany Should Take Note 


European measures, is finally em&nrin£ 
fromus long and troubled poHtiSS 

After what might be considered 1_5(?i 
years of ineffective government — start- 
ing with the fall of th?RoiZBmpi^aJd 
continuing through Fascism and S 

SSSSRr:. 1 W: mm EES 

b “ 0mn * mod- 

Mr Prodi beat back a chal- 
lenge by the unreconstructed*’ Com- 
munists to his government and die new 
December. his center-left co- 
alition did nicely in local elections against 
the right-wing opposition. 5 

***** - ncw po^cal stability 
Si„S V COn0m,c strength, member- 
*“*P m the first round of European Mon- 
etary Union, set to Stan Jan. 1, 1999 
seems an almost sure thing. 

As recently as last spring, Germans 
were saying that the Ko & government’s 
strong opposition gave Italy no more than 
a l‘m-5 chance of membership. Since 
then, Italy has grown politically stronger 
while Germany has shown increasing 
signs of weakness, starting with the 
springtime antics of Finance Minister 
Theo Waigel. 

Italy will have to resort to some tricks to 
get under the 3-percent-of-GDP deficit 
criterion for membership, but so will Ger- 


By Robert A- Levine 

many — even without the revaluation of 
Bundesbank gold suggested by Mr. 
Waigel and laughed oat of court 
Economically, Italy bas been one of the 
best performers among the European Un- 
ion’s large members in die 1990s. 

Another has been Britain. It is no co- 
incidence that both nations dropped out of 
the European payments system five years 
ago, devaluing their currencies and ending 
their bondage to the right-money policies 
of the Bundesbank. 

True. Italian unemployment has been 
above 12 percent, bat northern Italians 
contend that their region is die richest 
in Europe and that national statistics 
are dragged down by the southern 
Mezzogiorno. Thai problem has been 
around for a good part of the last 2,500 
years, however. In recent years, Italy has 
handled it at least as well as Germany has 
managed East German reconstruction. 

Monetary union membership is impor- 
tant to Italy as an aid to continuing internal 
reform. Unlike the majority of Germans, 
who would like to drop the whole thing, 
and the French, who warn monetary union 
without the required austerities, the Itali- 
ans are strongly pro-monetary union. 
They want to leave the conupt years be- 
hind and are willing to accept the nec- 
essary sacrifices. 

Monetary union membership will 
provide useful external discipline, but in- 
ternal momentum for reform is strong 


enough that postponement or even collapse dilions that produced Hitler. German 
of monetary union would do little harm economic policy is still based on the 
within Italy. What would hurt, however, is hyperinflation of the early 1920s. 
an 00-time start without Italy, which is still Since 1990, the Bundesbank has kept 

interest rates high to counter the infla- 
sstires stemming from Goman 


desired by many Germans. That would 
reinforce the political inferiority complex 
that the Italians are outgrowing. 

The German attitude resembles that of 
the husband in a story related by the 

The nation would be hurt 
if monetary union started 
on time but without it 


American nuclear strategist Herman 
Kahn. 

The man's wife painted the kitchen 
blue, even though she knew her husband 
hated the color. When he thre a t ened to 
leave, she relented to the extent of re- 
painting foe kitchen a very pale blue. He 
began to pack. Finally she surrendered and 
covered the walls with stark white paint 
“ft’s still blue underneath,'* be said as he 
went out the door. 

For the Germans, do matter bow strong 
its economy and how reformed its politics, 
Italy is still bine underneath. Yet Germany 
is largely responsible for the difficulties 
that all European economies, including its 
own, have in meeting the monetary union 
criteria. 

If Italy's problems go back to con- 
ditions that antedate Mussolini. Ger- 
many’s problems go back to the con- 


deficit financing of reunification. The ex- 
pansionary effects of the deficit have been 
confined largely to Germany, the con- 
tractionary effects of the high rates have 
been felt throughout Europe. French un- 
employment, like Italian, has hovered 
around 12 percent 

The Deutsche mark, which until uni- 
fication assured German prosperity, has 
remained firm. The desire to retain that 
firmness motivates German doubts about 
Italy, and indeed doubts about entering 
monetary union at alL The same motive 
produced Mr. Waigel's “stability pact” 
which will impose deficit constraints and 
tight money — and continuing high un- 
employment — on Europe after monetary 
union comes into being. 

Italy wants into monetary union and, 
whatever its underlying blueness in Ger- 
man eyes, it seems on its way. Whether 
Italy, and the rest of Europe, will enjoy 
membership under a continuation of foe 
policies that have caused the high un- 
employment of the years since German 
unification will be a major question for 
Europe as it enters foe 21st century. 


The writer is a senior economist emer- 
itus at the Rand Corporation. He con- 
tributed this comment to the International 
Herald Tribune. 


LETTERS TO THE EDITOR 


Czech Shake-Up 

Regarding “ Foreign Investors 
Find Much Fault With Czech 
Deals ” (Dec. 3): 

There was nothing wrong with 
the early years of Vaclav Klaus’s 
leadership. As is the case with a 
lot of other politicians, times 
changed and passed him by. He 
did not allow his leadership style 
to reflect this change. The first 
five years of the Czech transfor- 
| matron were not a mirage but a 
well-thought-out plan for a swift 
transformation from totalitarian- 
ism to a democracy as vibrant as 
any in Europe. 

When Mr. Klaus's “five-year 
plan." largely conceived ab- 
stractly in Communist-era think 
tanks, expired, a by then very tired 
government was unable to adjust 
to the new political reality. Mr. 
Klaus should be remembered for 
the many important things he 


achieved, not for the fact dial he 
remained in office too long. 

It remains to be seen whether 
any of the Klaus “replacements" 
achieve anything comparable. My 
guess is they will be more tran- 
sitional than long-term leaders. 

Mr. Klaus is gone, and that's 
good. But the bad news is largely 
exaggerated. 

HARVEY M. SCHUSTER. 

Plague. 

Regarding "Czech Prime Min- 
ister Quits as Instability Shakes 
Nation" (Dec. I): 

The article says that foreign in- 
vestors are "disenchanted” with 
foe Czech Republic and Thai 
* ‘Czech companies have attracted 
few foreign strategic partners." 

The figures, however, prove the 
opposite. 

In a survey of the 620 leading 
foreign manufacturers in foe 
Czech Republic made this sum- 


mer, nearly 54 percent were iden- 
tified as joint ventnres or stra- 
tegic Czech-foreign partnerships. 

Our survey also showed that, for 
from being disenchanted, 66 per- 
cent of foreign-backed manufac- 
turing companies intended to ex- 
pand their operations in foe Czech 
Republic by foe end of 1998. 

JAN AMOS HAVELKA. 

Prague. 

The writer is chief executive of 
the Czech Agency for Foreign In- 
vestment. 

Einhorn’s Release 

Regarding " France Releases 
Fugitive Convicted of US. 
Killing " (Dec. 6): 

Ira Einhorn’s French lawyer 
called a Bordeaux court's refusal 
to extradite the convicted killer “a 
lesson in human rights” for Amer- 
icans. This is not an isolated case 


of jatibouse lawyer claptrap but is 
symptomatic of a wider French 
. attitude toward Americans. 

Let’s remember that Mr. Ein - 
bora fled his native country, 
which guaranteed him a trial by 
jury and foe right to appeal. Let’s 
remember that France has an ex- 
tradition treaty with the United 
Stales. 

Let’s also bear in mind that the 
French government has backed oil 
deals with a crackpot dictator 
whose idea of human rights does 
not include juiy trials. 

France and the world will be 
better off when the French decide 
to act for themselves instead of 
against the United States. 

D.T. WALTERS. 

Ramonville St Agne, France. 

Muslim Summit 

How would the Muslim world 
react — not to mention the Jewish, 


Hindu and atheistic worlds — if 
Europe, North and Souih Amer- 
ica. Australia, New Zealand and 
South Africa called a “Christian 
Summit” and heads of state, or 
their delegates, attended in an of- 
ficial capacity? We’d never hear 
the end of it 

Why does the world react so 
supinely to such an explosive 
mixture of politics, religion and 
international affairs as the Muslim 
summit meeting in Tehran? 

D.B. TIMMINS. 

Geneva. 


Leners intended for publica- 
tion should be addressed ‘'Letters 
to the Editor" and contain the 
writer's signature, name and full 
address. Letters should be brief 
and are subject to editing. We can- 
not he responsible for the return of 
unsolicited manuscripts. 


ravi; > 


There’s Hope for Iran, 
Or Soccer as Metaphor 

By Ramin Golbang 


O SLO — 1 believe strongly that 
a national soccer team is a 
microcosm of the society it comes 
from. Thus I was not optimistic 
about Iran’s chances of qualifying 
for the 1998 World Cup. 

The team had stagnated during 
the eight years of war with Iraq, 
and the Iranian coach was known 


MEANWHILE 

for putting the Islamic qualifi- 
cations and beliefs of his players 
above everything else. 

Iran’s performance in the first 
two games of this year's qual- 
ifying rounds was not impressive, 
but Iran was still at foe top of foe 
group. With one game remaining, 
against Qatar, things seemed 
promising. 

During foe Qaiar-lran game. I 
was on my way to Italy. Running 
late for a plane, 1 stopped to call 
my parents in Tehran. My brother 
answered: 

“The result?” I asked. 

“2-0 Qatar." 

“WHAT?” I cried. Qatar had 
always been the far weaker team. 

“You should have seen the 
game," he said. “The players' 
morale is low. They looked un- 
able or unwilling to play. Every- 
one here is depressed! They can’t 
believe what’s happened.” 

He told me things were so bad 
that there was even talk of hiring a 
Brazilian coach. 

“A non-Muslim leading the 
Iranian team?" I asked sarcastic- 
ally. 

“Things are serious,” my 
brother said. “People are 
angry.” 

It was even rumored that the 
president bad been asked to do 
something, he added. 

I said I could understand: For 
the first time since the Islamic 
Revolution, Iranians had the pos- 
sibility of seeing their country as- 
sociated with a prestigious inter- 
national event instead of terrorism 
and fundamentalism. 

When I got settled in the plane I 
realized that that was one of foe 
longest conversations I'd had with 
my brother since 1 left Iran 11 
years ago. 

Later, in the hotel in Italy, 1 
heard foe news that the entire Ira- 
nian coaching staff had been 
sacked and the top job given to a 
Brazilian coach. 

Iran lost its next game, to Japan, 


2-3. Next for Iran were home and 
away games against Australia. 

The first game, in Tehran, 
ended 1-1, with Iran dominating. 

Ifs Nov. 29 and the return 
game is being played in Australia. 
I’m feeling extremely pessimistic. 
But I notice something strange: 
Iran’s Brazilian coach is wearing 
a suit and tie, something that 
would have been impossible just 
two years ago. For Iran's Islamic 
government, a tie is a symbol of 
foe WesL 

The Australians are bombard- 
ing Iran’s goal. Two minutes into 
the second half and Australia is 
ahead by two goals to nil. 

But with 15 minutes of the 
game remaining, Iran scores. 

Three minutes later, Iran scores 
again: 2-2. 

The referee blows foe final 
whistle. Because of the away-goal 
rule, Iran has won, earning a place 
at foe World Cup next year in 
France. 

1 run to call my parents. 

“They made it! Iran made it!” I 
cry. 

After hanging up. I rewind the 
tape to watch foe last 15 minutes 
again. There are some things I 
hadn't noticed the first time. 

The Iranian players running 
around foe field wave different 
versions of the Iranian flag. 

Iranian supporters of all kinds 
— emigres, refugees, supporters 
of foe Islamic regime carrying 
pictures of Khomeini — are all 
hugging and kissing the players. 

At the first game with Aus- 
tralia, in Tehran, it was reported 
that there were only two women . 
among foe 120.0(30 spectators. 
Iranian women are not allowed to 
watch men's sports. 

But now, when the returning 
Iranian players are flown from 
Tehran's airport by helicopter to 
the same stadium, thousands of 
women are there to greet them. 
Iran knows foe world is watching. 

Eleven years ago. as 1 crossed 
the border from Iran to Pakistan, 1 
looked back at foe mountains, 
colored deep red. What was run- • 
ningout of my eyes then had a taste 
of despair and loss. As 1 rewatch , 
the closing scenes of the game, " 
what I taste is joy and hope. 


The writer, a student in astro- 
physics in Oslo, contributed this 
comment to the I memaiional Her - _ 
aid Tribune. 


BOOKS 


AMERICA ON FILM: 

Hollywood and American History 

By Kenneth M. Cameron. 272 pages. 
$2950. Continuum. 

Reviewed by Peter Esmonde 

H OLLYWOOD lies. Blatantly, un- 
ashamedly. habitually. Somewhere 
between the Biograph prop shop and 
Oliver Stone ’ s trailer, Tinseltown lost its 
sense of historical propriety. For the 
studios, history serves mostly as an ex- 
cuse for glitzier costumes, more elab- 
orate sets and some very odd casting. 
Calamity Jane (in the person of Doris 
Day) prances and sings; Fred MacMur- 
ray (Lewis ) and Charlton Heston (Clark) 
vie for the charms of Sacajawea — 
Donna Reed to you. Who’s behind that 
false nose on Honest Abe? Why, it’s 
Henry Fonda! 

Hollywood’s skewed view of Amer- 
ican history may not exactly be new, but 
it was enough to send Kenneth M. Camer- 
on scurrying to foe screening room. In 
“America on Film: Hollywood and 
.American History," he lays bare Hol- 
lywood's historical hokum for all to see. 

" It’s a daunting task: three centuries of 
American history. 90 years of cinema 
and approximately 500 “his ton cal" 
films — more celluloid than any sane 
person could reasonably be expected to 
chew. Cameron selects only movies that 
include “a real person and some version 
of a real and specific event.” This is a 
sensible definition but an awkward 
framework for analysis; it leads him to 
consider “The Story of Vemon and 
Irene Castle" as history — but not 
"Gone With the Wind" or “Birth ofa 
Nation.’ ’ Rather than organize these 300 
films bv historical period, genre or stu- 
dio, foe author divides them somewhat 
arbitrarily by decade — Chen crams his 
findings into 272 pages. 

Not surprisingly, foe study substitutes 


breadth for depth. Cameron speedily 
passes judgment on most films in two or 
three paragraphs; some (such as Buster 
Keaton’s “The General") are brushed 
aside in one. After a promising intro- 
duction, the book lapses into an endless 
series of capsule reviews. One begins to 
wonder just how foe author screened so 
many films without burning rectangular 
holes in his retinas. 

“America on Film" judges the period 
dramas and musicals not on their own 
merits but by virtue of simple factual 
accuracy. Cameron ridicules anachron- 
istic costumes and firearms, mocks 
flaws in basic chronology and bemoans 
stylized performances, but pauses only 
sporadically to discuss their significance 
and pose larger questions. 

Is “historical" fiction film truly & 
genre or simply a catchall category? 
How have Hollywood films reshaped 
the way we narrate history? What com- 
pels each generation of filmmakers to 
retell certain stories — such as foe gun- 
fight at the OJL Corral — again and 
again? The author addresses these ques- 
tions only in the most cursory way be- 
fore resuming his once-over-lightiy 
study of screen minutiae. 

Having written a well -regarded study 
of African film, Cameron bas demon- 
strated that he can be a perceptive and 
sensitive reviewer. He offers some 
canny insights on portrayals of minor- 
ities and women in films of the 1950s, 
and displays a keen interest in the de- 
piction of blacks and Jews in show- 
business biopics. A section called 
“films of female victimization" in- 
cludes a thoughtful analysis of Richard 
Fleischer’s 'The Girl in the Red Velvet 
Swing.” “America on Film" concludes 
with some telling remarks on folk cul- 
ture and popular entertainment. But foe 
book’s narrow, literal approach almost 
always obscures a larger truth. 

For better or worse, Hollywood has 


used history merely to lend credence and 
production values to drama. Given a 
confusing, troubling reality, its film- 
makers chose instead to “print the le- 
gend," and created some spellbinding 
movies in the process. 

Griffith, Ford, Hawks. Huston and 
Peckinpah were not historians; they 
were consummate storytellers, painstak- 
ingly crafting myths tor the American 
public to live by. Anyone who critiques 
these films as straightforward history is 
simply missing the point. 

Tbe author’s dismissal of John Ford's 
“Young Mr. Lincoln" as a “false” bi- 
ography is sadly typical. Released in 
1939, foe movie pointedly presages foe 
coming world conflict As storm clouds 
gather and lightning flashes, Lincoln — 
standing alone and vulnerable atop a 
distant frill — walks off to face an un- 
certain future. It’s an astonishingly 
poignant image. But seeing only his- 
torical laxity, Cameron condemns 
Ford’s brilliant depiction of an Amer- 
ican icon as “wholly artificial,” 
“simply wrong,” “frontier kitsch.” 

Y ES, Hollywood lies. It has told 
some of foe most compelling, scar- 
ifying and heart-wrenching lies of the 
20th century. Its lies have entertained 
countless millions and enriched this cul- 
ture in ways that Cameron’s scattershot 
analysis cannot begin to address. 

“America on Fum" is a remarkably 
superficial work, at times lirfie more rhan 
a fact-check masquerading as cultural 
criticism. One wonders how anyone 
could see so many films and miss so 
much of their richness and depth. For all 
the time and effort spent watching these 
movies, Cameron remains in the dark. 


Peter Esmonde, who was trained as a 
filmmaker and who teaches at New York 
University's Tisth School of the Arts, 
wrote this for The Washington Post. 


BRIDGE 


By Ala n Truscott 

,R. George Rosenkranzof 
’Mexico City finished 
md in foe Rcisinger 
rd-a-Match Team Cham- 
tship at foe age of SI years 
3 months. 

» bridge, he is famous as a 
rer, theorist and writer, m 
wider world, he is famed 
me of the two men who 
Resized the birth control 

in 1951. His teammates in 

e Eddie Wold and four 
sh stars. Marek Szy- 
lowski. Marcin Le®" 
i-ski. Cczary Balicki and 


IBM- 

amed deal from 
final. Rosen- 
1 landed in two 
right-hand °P" 
de a liehi third- 


seat opening bid. He won foe 
opening club lead with foe ace, 
and had a planning problem. 
One possibility was to lead 

north 
*654 
OK93 
0 98 

* J 87 63 

EAST 
*K108 
782 
0 J6 3 2 
* K Q 104 

SOUTH 
* AQ2 
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South 
DDL 
20 


WEST (D) 
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Tt» bidding: 


West 

North 

East 

Pass 

pass 

I * 

l + 

Pass 

Pass 

Pass 

Pass 

Pass 

West 

led the dub wo. 


diamonds immediately, insur- 
ing a ruff in that suit But this 
was board-a-match scoring in 
which overtricks are crucial, 
and he made the normal play 
of crossing to foe heart king 
and leading a diamond, ex- 
pecting the opening bidder on 
his light to have foe ace. 

When his king lost to the 
ace, West returned a trump, 
won with the ace. Another 
diamond lead allowed West 
to win with the queen and 
play bis last trump, prevent- 
ing a ruff. East gave up a 
diamond, and South was bat- 
tling for a vital overtrick in 
foe tricky position shown 
at right. 

Leading a diamond would 
have permitted East to win 
and return the suit, 
leaving South with two spade 
losers. Instead, Rosen kran z 


led both his trumps. East gave 
up a diamond and a club, 
foe best he could do, and 
was given foe lead with a 
diamond. On the club king 
South threw foe spade deuce, 
and made the last three tricks, 
winning the board. 

NORTH 
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PAGE 10 


INTERNATIONAL HERALD TRIBUNE, THURSDAY, DECEMBER U, 1997 


HEALTH/SCIENCE 


Using Magnets to Ease Pain? Even Skeptics Are Shocked 


By Lawrence K. Altman 

New York Times Service 




EW YORK — No one was 
more skeptical about using 
magnets for oain relief than 
. — pr- Cados Valibona, former 
chairman °f the department of com- 
JJfmuy medicine at Baylor College of 
medicine w Honston. So Dr. Valibona 
was amazed when a study he did found 
mat small, low-intensity magnets 
w caked, at least for patients experxenc- 
“jg^yraptoms that can develop years 

: Dr. Valibona had long been fascin- 
ated by testimonials about magnets from 
Jus patients, and even from medical 
leaders. But his interest in magnet ther- 
apy became more serious in 1994 when 
he and a colleague. Carlton F. Hazle- 
wood, tried them for their own knee 
pain. The pain was gone in minutes. 


“That was too good to be true." Dr. 
Valibona said. 

Dr. Valibona knew that the power of 
suggestion can fool both patient and 
doctor. But he also wondered: Could 
strapping small, low-intensity magnets 
to the most sensitive areas of the body 
for several minutes relieve chronic mus- 



Valid studies could allow consumers 
to make informed choices. And if mag- 
net therapy were found to be safe and 
effective, it could relieve pain with few- 
er drugs — and their unwanted side 
effects. 

. Endorsements from professional ath- 
letes are one reason Americans spend 
large sums on magnets to seek pain 
relief. But most doctors take a “buyer 
beware” attitude because many claims 
lack scientific proof or explanation of 


how they might work. The Food and 
Drug Administration has warned doc- 
tors and manufacturers about health 
claims for magnets. 

Aware of die medical profession’s 
skepticism about magnet therapy, Dr. 
VaUbona sought to conduct science’s 
most rigorous type of study- Participants 
would agree to allow the investigators to 
randomly assign them to groups getting 
treatment with active magnets or sham 
devices. But neither the patients nor the 
doctors treating than would know what 
therapy was used on which patient. 

First, Dr. Valibona informally tested 
magnets on a few patients. One was a 
priest with post-polio syndrome who 
celebrated Mass with difficulty because 
of marked back pain that prevented him 
from raising bis left hand. After applying 
a magnet for a few minutes the pain was 
gone, Dr. Valibona recalled, and, “the 
priest said this was a miracle." 


Then a human experimeatabon. com- 
mitree allowed Dr. Valibona to test SO 
volunteers with -magnets that were 
slightly stron ge r than refrigerator mag- 
nets. They were made indifferent sizes 
to befitted over the anatomic area iden- 
tified as setting off the pain. 

It was difficult to design a system to 
prevent participants from learning 
whether they were being treated with a 
magnet or a . sham. So Dr. Valibona 
asked Magnaflex Inc., a magnet man- 
ufacturer in Corpus Christ!, Texas, to 
prepare active magnets and inactive 
devices that could not be told apart The 
devices were labeled in code. 

A FTER the investigators iden- 
tified the source of the pain 
and then pressed on it, the 39 
women and 11 men in the 
study graded the pain on a scale of 0 
(none) to 10 (worst). Then after the 



exp erime n^heaiment.'tfae participants 
rated their pain in a standard question- 
naire. The volunteers were' tested only 
onetime.- v . .■•••• • 

The 29wfao received arr active 
reported a reduction in paiiHO:4.4 
9.6. centred wdb a smaller decline to 
'8.4 from 93 among die 21 treated with'a 
sham magnet: ■_ ■ : 

The Baylor scientists empbasizedthai 
their study applied only to painfrom the 
post-poHo condition. Nevertheless, their 
report in last month's issue Of Archives 
ofPhy sited and Rehabilitation Medicine, 
a leading specialty journal, has shocked 
many doctors who have sccrffedat claims 
for magnets 0 medical benefits. 

In an article about magnet therapy for 
chronic pain published five months ago. 
Dr. William Jarvis, a professor of public 
health arid preventive medicine atLoma 
Linda University in California and pres- 
ident of toe National Council Against 


Health Fraud, dismissed magnet 
therapy as “essentially quackery. 

Now, Dr, Jarvis said in an inter _ 
the Baylor study has changed his rnmd.^ 
“But like any otborpOoc study, it oeexfcj 
to be replicated,’’ he said- ■ ■*.*{' 

. ‘ .Dr_ Vallbona’s .findings have led Mg 
to try to carry out a laiger study in sever® J 
medfcdl centers, and they are expeeted tof 
lead other Investigators to conduct ffitsT' 
own studies- ■ i! 

Dr. Laura S. Halstead of the Nation*!.. 
Rehabilitation Hospital in Washington^ 
who was a pioneer in studying the pos(-£ 
polio syndrome, was among 1 experfe* 
who said that further studies wegfc 
needed to answer such questions , 
Will various strength magnets prodntw|' 
different degrees of benefit? How long£ 
does tihfipain relief last? Willthe effect* 
wear off after . multiple applications!?}; 
For what other conditions might ma£-& 
nets work? ‘ J* 




A Closer Look at Jupiter's Hot and Frigid Moons 



By John Noble Wilford 

New York Tim* s Service 

EW YORK — 
Looking into the 
heavens with his 
new telescope in 
1610, Galileo caught sight of 
“four stars dial wander 
around Jupiter as does the 
moon around the Earth.’' 
They were not stars, he soon 
realized, but satellites that or- 
bit the giant planet in much the 
same way the planets them- 
selves travel around the sun. 
The discovery finally demol- 
ished the human conceit that 
Earth is the center of the solar 
system, even the universe. 

On Sunday, a spacecraft 
named for the Italian astron- 
omer completed its two-year 
primary mission of orbiting 
Jupiter, bringing the four 
moons into sharper focus, and 
now it is about to get even 
closer looks. What were to 
Galileo moving specks of light 
— Io. Europa. Ganymede, and 
Callisto — stand revealed as 
surprisingly disparate worlds 
promising more discoveries 
about nature’s capacity for in- 
finite variety. 

Nothing like Io has ever 
been seen. This innermost of 
the large Jovian moons is be- 
ing pulled first one way and 


The G3ii.se spHcecef'. v. : i : ~ ras eses makric ocsc-rvat-cns of 
nc-.v f oCv.ses cr two c ; the p : aref« ~'ocn:s Europa and Io. Scis-esrs • 
Europa o-cause they celievo na: • ri ch: harbor •>:£ Io is of sc-ec : :T i- 
i; is '.he rr-os: voconica.iy o.c'jvo body ir *r.e solar systcrv 


Plasma-wave 

antenna 


Galileo spacecraft 


High-gam antenna 
(broken,! 


Nuclear battery 



Magnet c-field 
sensor 


r.iagnotic-fieicl 

sensor 


Galilee Europa Mission 
Gulileo will pass near Europa on its 
next eight orbits of Jupiter 

on $s!XiK' 


Sun 

shields 


te 


rrvsfeu 

10 Whites 




. J'k' 


Ganymede 


Attitude . ,'4?* t 

control -jp ' j 

thrusters ‘ ^ 


.... ^ 

Low-gain * ( Jtirfr "l 

’■**: * SfriA* fiear-ir.frnmtt 


Intriguing 
Europa 
What's below 
Eurcpas 
surface ice? tt 
may be a deep 
ocean on top o= 
rock, around a 
metal core. 


fc^?7D miles i **• . 

. "* — w~..- +*7 3m 


fow * 5© 15>C rm 4 
Rock 


then the other in a gravita- 
tional tug-of-war between 
Jupiter and neighboring 
moons. This causes a tidal 
flexing that heats lo’s rocky 




w. 




Ice Samplings 
Trace Poisoning 
Of Ancient Rome i 


By Malcolm W. Browne 

New York Times Service 

EW YORK — Samples extracted from Green- 
land's 2-mile-deep (3 ^-kilometer) ice cap M7 
have yielded-evidence that ancient Carthagim- 
an ana Roman silver miners working In south- , 
era Spain fouled the global atmosphere with lead for ; 
about 900 years. * 

The Greenland ice cap accumulates mow year after !l 
year, and substances from toe atmosphere are entrapped £[# 
in the permanent ice. From 1990 to 1992. a drill operated ‘ 




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11-12-97 


interior to explosive pres- 
sures. Plumes of erupting sul- 
fur and silicates have been 
photographed rising from 
lo’s white, yellow, and brown 
surface. As the most volcan- 
latily. active body, ever ob- 
served. Io presents a con- 
stantly changing face to 
spacecraft, first toe two Voy- 
agers flying by in 1979 and 
now Galileo. 

Photographs of Ganymede, 
the solar system's most 
massive moon, show an icy 
surface pocked with craters 
and etched with the deep 
cracks of a turbulent past, pre- 
sumably also caused by tidal 
flexing. The outermost Cal- 
listo. almost as large as 
Ganymede, appears to exist in 
a deep freeze away from toe 
gravitational tidal forces. In- 
ternal heat has not been at 
work to significantly alter 
Callisto's ice-covered face or 
clear up toe scars of countless 
meteorite impacts over sev- 
eral billion years. 


“Europa emerged as the 
star of the Galileo mission,” 
said Dr. William B. McKin- 
non. a planetary scientist at 
Washington University, in St 
Louis, Missouri. “It was toe- 


fly-bys, Galileo is to make sponsible. Something must be 
four passes by Callisto, using periodically erasing the scars 
that moon's gravity to change from meteorite impacts. One 
course toward Io. For its fi- astronomer. Dr. Fraser P. 
nale in late 1999, Galileo is Fanaie, of the University of 

supposed to to^e^potootialN 

least known of the.laige Joyi- suMSdaL 

an moons, but has turned.out Jupiter’s intense'. . radiation provide the^wanntfr 

belts, for a 1 couple of close ke 




S for Europa, smal- 
lest of the four, not 
quite as big as 
Earth's moon, the 
Galileo spacecraft's findings 
offer striking circumstantial 
evidence of an ice crust con- 
cealing a global ocean of sub- 
surface water wanned by tidal 
heaL And where there is heat 
and liquid water, scientists 
point out, life in some form 
might thrive. So far. though, 
there is no evidence for Euro- 
pan life, only conjecture. 


to be the most interesting.'* 

Moreover, toe role of 
powerful tidal forces in 
wanning and reshaping 
Europa and other Jovian 
moons has also emerged as 
one of the most provocative 
problems in planetary sci- 
ence, challenging toe imagin- 
ations of scientists. One of 
their new theories holds that 
the gravitational tugging has 
over long periods of time 
changed the orbital positions 
and interactions of the 
moons. 

For these reasons, toe Na- 
tional Aeronautics and Space 
Administration has agreed to 
extend Galileo's operations 
for another two years, con- 
centrating on eight consecut- 
ive close encounters with 
Europa to obtain even more 
detailed pictures, gravity and 
magnetic readings and other 
data. On the first of these 
passes, on Dec. 16. toe space- 
craft is expected to fly within 
200 miles of Europa 's sur- 
face. close enough to see any- 
thing as small as a truck. 

Project officials at the Jet 
Propulsion Laboratory in 
Pasadena, California, said toe 
craft was on course and in 
good condition for toe exten- 
ded mission. After toe Europa 


looks at lo’s tide-generated 
volcanic upheavals. 

The extended operations 
are budgeted to cost no more 
than $30 million, on top of the 
$1.3 billion spent bnilaing toe 
spacecraft and conducting the 
mission since it was launched 
in 1989. 


T 


mission, 

number 


HE failure of the 
craft’s main an- 
tenna to deploy has 
limited data txans- 
parricularly die 
of high-resalution 
photographs returned from 
each moon encounter. But 
project officials said that they 
have managed to accomplish 
at least 70 percent of their 
scientific objectives. 

“The team has done a 
splendid job getting data back 
from what is essentially a 
crippled spacecraft,” said Dr. 
Steven Squyres, of Cornell 
University, an adviser to 
NASA. 

When the two Voyagers 
photographed Europa, for ex- 
ample. they could see little 
more than that its plains of ice 
appeared for the most part to 
be as smooth as glass. Sci- 
entists were left to wonder 
what phenomena were re- 


lay 

efep the surface sufficiently 
pliant to retain a pristine ap- 
pearance. 

Galileo's camera produced 
strong clues that he was prob- 
ably right. The first close-up 
pictures showed huge ice 
blocks standing above the 
crust like icebergs. The view 
reminded scientists of pack 
ice on a polar sea. 

The mounting evidence for 
a vast hidden ocean on 
Europa has some of the more 
exuberant scientists in the 
Galileo project claiming that 
they are the first to discover a 
new ocean since Balboa laid 
eyes on the Pacific nearly 500 
years ago. 

Examining the pictures. 
Dr. Ronald Greeley, a plan- 
etary geologist, at Arizona 
State University, in Tempe, 
said: * "The size and geometry 
of these features lead os to 
believe there was a thin icy 
layer covering water or 
slushy ice, and that some mo- 
tion caused these crustal 
plates to break up.” 

Small, dark spots in Europa 
pictures also provide tantal- 
izing clues. Warm ice could 
be rising buoyantly from a sea 
below. Some dark splotches 
appear to-be some type of icy 
volcanic flow. 


pieces of which were distributed to participating lab- ^ 
oratories. The ages of successive layers of toe icecap have j 
been accurately determined, so toe chemical makeup of *1 
the atmosphere at any given time in toe past 9,000 years 3* 
can be estimated by analyzing the corresponding part of 3? 
the corfe sample. 

. Using exquisitely sensitive techniques to measure four ti* v 
different isotopes of lead in the Greenland ice, scientists £T 
in Australia and France determined that most of the man- ^ 
made lead pollution of the atmosphere in ancient times 
had come from toe Spanish provinces of Huelva, Seville, * 
Almeria and Murcia. Isotopic analysis clearly pointed to - 
the rich silver-mining and smelting district of Rio Tinto ‘ 
near the modem city of.Nerva as the main polluter. - 1 

The results of this study were reported in the current ! 
issue of Environmental Science & Technology, by Dr. J 
Kevin J. R. Rosman of Curtin University in Perth, Aus- 1 . 
tfalia, and his colleagues there and at the Laboratory of 3 [5 
Glaciology and Geophysics of toe Environment in Gre- * 

was the Vaylow 1 Cratrons in fee 

dating from ancient times — only about one-hundredth toe 4 ‘ 
lead level found in Greenland ice deposited in the past 30 |[ 
years. But the investigators used mass- spectrometric tech- 
niques that permitted them to sort out isotopic lead com- 
position at lead levels of only about one part per trillion. 

All ore bodies containing lead have their own isotopic 
signatures, and the Rio Tinto lead ratio is 1,164. Cal- 
culations by toe Australian-French collaboration based 
on their ice- core analysis showed that during the period 
366 B.C. to at least A.D. 36, a period when toe Roman 
Empire was at its peak, 70 percent of toe global at- 
mospheric lead pollution came from toe Roman-operated 
Rio Tinto mines in what is now southwestern Spain. 

The Rio Tinto mining region is known to archae- 
ologists as one of the richest sources of silver in toe 
ancient world. Some 6.6 million tons of slag were left by J 
Roman smelting operations there. 


T 


HE global demand for silver increased dra- 
matically after coinage was introduced, in 
Greece around 650 B .C. But silver was only one 
of the treasures extracted from its ore. The 
sulfide ore smelted by the Romans also yielded an enor- 
mous harvest of lead. 

Because it is easily shaped, melted and molded, lead M 
was widely used by the Romans for plumbing, stapling 3- 
masonry together, casting statues and manufacturing r* 
many kinds of utensils. All these uses presumably con- I 
tribnted to toe chronic poisoning of Rome’s peoples. 

Adding to toe toxic hazard, Romans used lead vessels 
to boil and concentrate fruit juices and preserves. Fruits r 
contain acetic acid, which reacts with metallic lead to 
form lead acetate, a compound once known as “sugar of • 
lead. ’’Lead acetate adds a pleasant sweet taste to food but 3 
causes lead poisoning — an ailment that is often fatal and, ; 
even in mild cases, causes debilitation and loss of cog- 
nitive ability. 


a 


CROSSWORD 


A Lower Dosage of Estrogen 

LOS ANGELES {Reuters) — Women who cannot tolerate 
side effects of hormone-replacement therapy might be able to 
derive, the same benefits with a half dose, a new study 
suggests. 

Researchers at toe University of California found post- 
menopausal woman given half the normal dose of Estratab. a 
plant-based estrogen, showed improved bone density. They 
did not, however, have increased vaginal bleeding, a precursor 
to endometrial cancer, which is associated with higher doses 
of animal-based estrogen. 

Dr. Harry Genant. a professor of medicine at the University 
of California at San Francisco and the lead investigator in the 
study, published his findings in the Archives of Internal 
Medicine. 

Most post-menopausal women are advised to go on hor- 
mone-replacement therapy to preserve bone density and pre- 
vent heart disease. But with these benefits comes an increased 
risk of endometrial and breast cancer. As a result, many 
women find it almost impossible to decide on a course of 
action. Most of those who do go on estrogen stop within two 
years because of related risks and side effects including breast 
tenderness, nausea and depression. 


ACROSS 
i Twaddle 
4 Sears one’s 
steers 
10 Binge 

leGompere’sgrp. 
15 American 
hardwood 
i« 'Aunt" with a 
1878 best setter 
17 Letters often 
toHcwedby a 
number 
is Coolness 
is Finn name? 
zo Bouquets 
22 Holography 
needs 
24 Con jobs 


2S 'Consider 
Yourself 
musical 

27 Stew 

2» Mergenthafer 
patent of 1884 

31 Atlanta's Bdl 
CampfcreH. e.g. 

32 Guys who use 
come-on lines? 

34 Masseur's need 

39 Tautomeric 
compound 

so Acts like a 
quidnunc 

37 Nonexistent 

39 SL Anthony’s 
cross 

MTrlgger pullers'* 

40 Essential parts 


Solution to Puzzle of Dec. 10 


Of Mice and Memory: Element of Fear 

NEW YORK (NYT) — From rciwarch comes a mouse that 
cannot remember its history — even particularly unpleasant 
history — and is doomed to repeat iL 

By knocking out a gene, scientists have knocked a big hole 
in the mouse's ability to remember frightening tilings that it 
has encountered. And that could mean that mice, and Other 
mammals, have a gene for remembering fear. It may not be 
quite that simple, but the gone mutation undoubtedly also 
wipes out much of the health)' fear that underlies the instinct 
for self-preservation. 



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□E30D] □□□□□□□□□□ 
□0G3Q aaan □□□□□ 
qqqh aaaa aasaa 


41 Heights 
43 Kitties 
44L6ger, e.g. 

48 Moving to the 
rhythm 

48 Card catalogue 
entries 
30 Personally 
sa Tro Hope's 
‘Lady ’ 

S3 'Are Poetica' 
poet 

ss Cause of some 
shaking 

M "Put my 

tab- 

57 Soccer squad 
se Quaker verb 
» “The Outsiders’ 
actor 

eo Rub* al Khali. 
e-9. 

si Sycophant’s 
response 

DOWN 

t Special effort 
a What the game 
maybe 

a Come-on Ime 
• Rodomontade 

user 
5 Meal 

8 Start of a Man 
Brothers btte 
7 Come-on line 


- s worse bit 
9 Postcard 
scenes, 
sometimes 

10 Afternoon 
service 

11 Come-on line 

12 *ER‘ actor Epps 
ia Dundee toppers 
21 Sign up 

S3 River at Bristol 

as Bartender's 

- “twists.’ maybe 

29 Stack 

30 Connecting 
pipes 

31 Expansion team 
Of 1982 

32 Gray area?: 
Abbr. 

33 The cardinal fire 
sign 

38 Became extinct 
37 That's a het* 
as Yokel" 

40 Carefree 
‘42 New Orleans 
university 
43 Textile joiner 
40 Between, In 
Bayonne 

47 Gnats and 
brats 

«s Shadow 
49 Fascinated by 
Si Narthax 
neighbor 
84 Good; — bov 


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Under 


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PAGE 13 


it - it*, portusalefyer, ccm 


*. "TO IlMiSSSISi^^ 

Mr. rate!, right, seeks to expand Nirma’s products and move consumers into luxury toiletries by selling better quality at a slightly higher price. 


Indian Soap Maker Steps Up Battle With Big Firms 


By Miriam Jordan 

Special to the Herald Tribune 


A 


HMEDABAD, India — Karsanbhai Patel 
once had an idea about how to make a little 


money to supplement his wages as a state- 
hen ‘ 


employed chemise: He produced laundry 
powder in the backyard of his home and sold it by 
bicycle in his neighborhood — ar well below the 
price of competing products. Within a decade, his 
inexpensive Nirma detergent had become India’s 
most popular brand. 

Today, Mr. Patel's company, Nirma. remains the 
top seller of laundry products in die country, with 40 
percent of the market in terms of volume — far ahead 
of the global giant Unilever PLC, a British-Dutch 
conglomerate. Market researchers estimate that Nirma 
sells regularly to 70 million Indian households. 

“Nirma is our biggest competitor — not Procter & 
Gamble.” said a Unilever executive in Bombay, 
referring to the U.S. consumer-products company 
dial is the acknowledged leader at selling packaged 
goods to the mass market 

Now. Mr. Patel is battling the bigshots on new turf. 
Armed with the same formula of building business 
with big volumes and thin margins, Mr. Patel is 
taking on bath soap and shampoo, introducing 
premium products and undercutting his rivals on 
price — sometimes by as much as a third. 

The results so hr are encouraging. While Procter <&: 
Gamble Co. and Colgate-Palmolive Co. are still strug- 
gling to snatch market share from Unilever, newcomer 
Nirma has grabbed about IS percent of the toilet-soap 
market in the past two years. Nirma Beauty Soap is 
now the third- largest selling soap in India, behind 
Unilever’s decades-old brands, Lux and Lifebuoy. 

The privately held company’s net profit was about 
$30 million last year, twice as much as the previous 
year, on an 86 percent rise in sales, to $260 million. 

While undercutting on price is not necessarily a 


long-term strategy for growth — or even survival — 
Mr. Patel has managed to make a profit by selling huge 
volumes at low prices to milli ons of consumers. 

Now, what Nirma wants to do is move die consumer 
up a notch into affordable luxury — thereby selling 
better quality and volume at a slightly higher price. 

To sell to the masses, “you nave to take only a 
minimum profit,' * said Mr. Patel, S3, who has become 
something of a role model to aspiring entrepreneurs. 

Sitting in his sparsely furnished office in this 


INTERNATIONAL MANAGER 


western Indian city, he said that poor Indians knew 
that “if we weren’t here, multinationals would 
charge higher prices.' ’ It’s a claim that Unilever does 
not dispute. 

Mr. Patel's tale begins in 1969. Back then, es- 
tablished companies sold laundry detergent in bars to 
most Indians; they considered powder a luxury re- 
served for the upper classes. Mr. Patel bet the masses 
would buy powdered detergent if it were affordable. 

His homemade yellow Nirma powder — named 
for Mr. Patel's eldest daughter — revolutionized the 
market In just a few years, its reach extended from 
Ahmedabad to towns throughout the state of Gujarat 
Within a decade, it was showing up at shops across 
.India. In 1984, it was the best- selling detergen t in the 
country. By 1989, Nirma detergent sold 10 times as 
much as Unilever’s brands in volume terms, ac- 
cording to independent estimates. 

'‘Nirma demonstrated that yon can unlock the 


potential of India if you find the right key.” said 
Rama 


Bijapurkar, a marketing consultant. “India is 
not about a few people consuming a hell of a lot. It’s 


about a lot of people consuming a little bit.'* 
It is a lesson that most multii 


multinationals in price- 
sensitive India are learning. To defend itself against 
Mr. Patel's offensive, Unilever had to launch its own 
line of low-priced laundry powder. Some Unilever 


executives say the jolt, while shocking at the time, 
had long-term benefits: It helped Unilever devise a 
low-cost model that broadened its customer base for 
all products, from tea to toothpaste. 

India’s economic opening in 1991 emboldened 
Mr. Patel to widen his portfolio. But when he first 
diversified into personal-care products, he dis- 
covered that Nirma had an image problem. 

“It’s one thing to scrub your clothes with a cheap 
product,” said Jagdeep Kapoor, managing director of 
Samsika Marketing Consultants. “It's another thing 
to rub a low-cost product on your body or hair.'* 

Two years ago, Mr. Kapoor and a team of mar- 
keters devised a campaign to change the public 
perception of Ninna products from “cheap” to 
“good value.” Advertisers created slick television 
spots featuring big-name Hindi film stars. 

Nirma first targeted cost-conscious households, 
which already used Nirma detergent The idea was to 
get millions of consumers to upgrade by offering a 
premium range of shampoos and soap at near- 
budget prices. In India, the difference m price be- 
tween a premium bath soap — the average bar costs 
33 cents — and a popular bath soap is only about 8 
cents. But in this price-sensitive market, 80 percent 
of sales are in the budget segment. 

“To be successful in tbe long term, we need to be 
affordable to 50 or 60 percent of Indians, not just 5 
percent,” said Nirma’s executive director, Kalpesh 
JateL who is Mr. Patel’s son-in-law. 

Some analysts say Mr. Paiel is making a big 
gamble by trying to sell premium products to price- 
sensitive homes. 

“He risks losing his strong client base the moment 
people think he has become more expensive,” said 
Arvxnd SinghaL managing director of KSA Tech- 
nopak, a consulting firm. 

The younger Mr. Patel responds, “We are creating 
a new market, rather than gaining consumers at the 
expense of someone else.' ' 


Asian Turmoil Widens 
U.S.- Japan Trade Gap 


America’s Exports and Bond Sales Pressured 


Ctmfikd by Our Sniff FrnnDOfurte 

WASHINGTON — The U.S. trade 
deficit widened in the third quarter, 
partly because Japanese investors 
bought fewer Treasury bonds, while Ja- 


pan's surplus continued to surge, data 
:ed Wednesday showed. 


released 

The Commerce Department said the 
current-account deficit widened to a 
seasonally adjusted $42.2 billion in the 
third quarter from $37.9 billion in the 
second quarter. 

For the first three quarters of the year, 
tbe current-account deficit totaled 
$119.98 billion. For the comparable 
period last year, the deficit was $1113 
billion. That puts the current-account 
deficit on trade to exceed the $148.18 
billion posted in 1996. 

In Tokyo, the Finance Ministry said 
Japan's current-account surplus 
reached 1.081 trillion yen ($8.31 bil- 
lion) in October, up from 337.7 billion 
yen a year earlier. The government did 
notprovide month- to-month figures. 

Tne current account is considered tbe 
broadest measure of trade performance 
because it measures trade in goods and 
services and investment flows between 


countries and foreign aid 
line ofth 


The widening of the U.S. deficit and 
of Japan’s surplus partly reflects the eco- 
nomic turmoil that started in Thailand 
this summer and spread to other coun- 
tries in Asia this autumn. Sharp currency 
devaluations have curtailed Asians' pur- 
chasing power, hurting U.S. exports. At 
the same time, Asian manufacturers have 
pushed to sell goods abroad to make up 
for reduced domestic demand. 

The data raise the chances for the 
United States and European nations to 
exert pressure on Japan to curtail ex- 
ports and do more to encourage people 
in Japan to buy foreign-made goods. 

“This underlines that Japan is not 
doing enough to stimulate domestic de- 
mand,” said Mineko Sasaki- Smith, se- 
nior economist at CS Fust Boston in 
Tokyo. “The U.S. is likely to be ex- 
erting pressure behind the scenes.” 


The U.S. data showed that net foreign 
purchases of U.S. Treasury securities 
and U.S. currency decreased to $433 
billion in the third quarter from $49.9 
billion in the second quarter. 

Commerce Department officials de- 
clined to release specific figures for 
individual countries or regions, but they 
did say that “a sharp reversal to net sales 
of U.S. Treasury bonds by Japan was 
mostly offset by a substantial step-up to 
record net purchases from western 
Europe.” 

Sung Won Sohn, an economist at Near- 
west Corp. in Minneapolis, said, “Jap- 
anese firms are having problems, so they 
are selling U.S. Treasury securities to 
shore up their wobbly balance sheets.” 

For the United Stares, one bright spot 
in the third quarter was a 2 percent 
increase, to $21.9 billion, in its surplus 
in services such as tourism and con- 
sulting fees. But that was not enough to 
compensate for a 9.4 percent rise, to 
$513 billion, in the deficit for goods 
and a 23 percent increase, to $33 bil- 
lion, in the outflow of investment in- 
come to foreign holders of U.S. assets. 

In Japan, a Finance Ministry official 
attributed the wider trade surplus to 
strong exports of automobiles, along 
with office equipment and microchip 
and electronic pans. Auto exports in die 
month jumped 28 percent year-on-year, 
and office equipment exports rose 21.7 
percent, with microchips and electron- 
ics-parts exports increasing 12 percent 
(AP, Bloomberg, AFX) 

■ Taiwan's Trade Deficit to Grow 


Taiwan's trade deficit with Japan is 
expected to grow 23 percent, to $17 
billion, this year, a leading businessman 
said Wednesday, The Associated Press 
reported from Taipei 
The deficit will result mainly from 
Japan's weaker currency and stagnant 
economy that has weakened domestic 
consumption, Koo Chen-fu, head of the 
Taiwanese-Japanese Trade Promotion 
Association, said. 


Bailout Battle in Tokyo 


By Stephanie Strom 

New York Times Service 


Bosnia’s Continued Squabbling Blocks Reconstruction 


By Peter S. Green 

Inicnviiiiinal HnolU Tribune 


SARAJEVO. Bosnia-Herzegovina 
— When Elma Abadzic bought a packet 
of cigarettes recently at a Sarajevo 
kiosk, she put down two tattered 100 
Bosnian dinar notes. She got back a 

S ickcl of Drina filters priced at 1.40 
cutschc marks and several pieces of 
stale bubble gum as change. 

But when she tried to buy another 
packet of cigarettes with a pocketful of 
bubble gum. she recalled, ' ‘the woman 
in the kiosk just laughed. “ 

Even if she had tried to pay with one 
the other two local currencies in Bosnia 
— the Bosnian Serb dinar or the Croatian 
kuna — Miss Abadzic probably would 
have gotten a similar reaction. That s 
how shattered the economy is here. 

Not only are small coins so scarce that 
gum is a substitute and pharmacies give 
tram tickets as change, Bosnia do « s 
even have its own currency. Miss Abau- 
zic’s dinars are left over from the war; 
held together with tape. Serte.Croatsand 
Muslims cannot agree on whose pornmes 
should adorn then common banknotes. 
The Deutsche mark is the only currency 
accepted in all three ethnic areas- 
Stitching together Bosnia s ravaged 
economy, still torn along the ethnic lines 


created by four years of war, is the key to 
lasting peace in the Balkans, according 
to diplomats, residents and merchants 
here. But two years after the Dayton 
accords ended the fighting and donors 
pledged $5.1 billion to rebuild Bosnia, 
the country’s economic reconstruction 
is far from complete. 

Effectively, Bosnia is still split into 
its three ethnic areas; legally, it is di- 
vided into the Republika Srpska, con- 
trolled by Serbs, and the Croat-Muslim 
Federation. Railroads, phones, water 
and electricity are all separate, and there 
is almost no trade between the Repub- 
lika Srpska and the federation. 

The Bosnian state, which should 
unite the two on such big issues as 
ambassadorships and the common cur- 
rency, exists in name only. 

“You spend half of your time getting 
each of the three electric companies to 
recognize the other two.' ’ said Zsuzsana 
Hargitai of the European Bank for Re- 
construction. and Development 
“We’ve been negotiating raini- 
‘ Daytons’ all over the place.” 

Miss Hargitai said it had taken her 1 1 
months of shuttle diplomacy to get Ser- 
bian, Croatian and Muslim signatures 
for a sovereign loan guarantee. 

[At a multinational conference in 
Bonn, Bosnian leaders agreed late Tues- 


day to laws for passports and citizen- 
ship. No agreement was reached, 
however, on other trappings of state- 
hood. including license plates, a flag 
and a common currency, The Asso- 
ciated Press reported.] 

Communist-era laws are still on the 
books, and without a unified banking 
system, a currency, privatization laws 
and a com m ercial code, it has been 
difficult to build a private sector and 
attract foreign investment. 

Volkswagen wants to revive its pas- 
senger-car assembly line in Sarajevo, 
for example, but it must be on a firm 
legal footing first. 

“We -want to get Volkswagen in 
here,” said Jacques Klein, the West's 
deputy high representative in Bosnia, 
“but they need a legal system that works 
and .a banking system that works be- 
cause they see this place as a market that 
includes Croatia. Macedonia and Ser- 
bia. And then, we'll get McDonald’s in. 
because the more of that you have, the 
better off this country’s going to be.' ' 

Bosnia has prospects. The former 
Yugoslavia was Eastern Europe’s 
strongest economy before 1991. After the 
fighting stopped, the federation’s econ- 
omy grew 56 percent in 1996. and the 
World Bank estimates its 1997 growth at 
about 35 percent. Inflation is negligible. 


But even this growth is deceptive. 

“You can estimate that 20 percent is 
due to stopping the war,” said Egbert 
Geiken, senior economist at the Office of 
the High Representative. "The rest is 
reconstruction. “What you do not see is 
any self-sustaining commerce. You don ’t 
see private investment, and you don't see 
foreign investment. The federation is 
growing quite nicely, but we don’t see 
anything happening in Republika Srpska. 


TOKYO — Tbe government seems 
committed to nsingjpublic funds to bol- 
ster Japan’s ailing financial system, but 
precisely bow such funds would be used 
continues to be a mystery. 

A proposal to raise money for a fi- 
nancial stabilization package by issuing 
10 trillion yen ($76.83 billion) in gov- 
ernment bonds — hailed Tuesday by 
Prime Minister Ryu taro Hashimoto, Fi- 
nance Minister Hiroshi Mitsuzuka and 
the stock market — foundered Wed- 
nesday. 

The plan ran into problems after it 
was hinted that, in addition to shoring up 
weak banks and financial institutions, a 
portion of the funds would go to finance 
a tax cut or some other economic pump- 
priming measure, a contradiction of re- 
peated government vows not to resort to 
deficit financing to cure Japan's eco- 
nomic woes. 

The Nikkei Stock Average, which 


jumped 3.4 percent Tuesday in approval 
of the p 


See BOSNIA. Page 17 


proposal, fell 1 2 percent Wed- 
nesday, to 16,478.12. 


The plan also appeared to be caught 
up in the political rivalry between Seir- 
oku Kajiyama, its champion and a lead- 
er of the governing Liberal Democratic 
Party, and Koichi Kato, the party’s 
powerful general-secretary and a strict 
advocate of fiscal austerity. 

Mineko Sasaki -Smith, chief econo- 
mist at Credit Snisse First Boston, said, 
“Mr. Hashimoto and others jumped era 
this plan without the usual consultations 
with other party factions, and now those 
groups are offended.” 

Ms. Sasaki-Smith and other analysis 
were also concerned that the plan, which 
would inject capital into the financial 
system by having the government pur- 
chase preferred shares in ailing insti- 
tutions, would inhibit a much-needed 
contraction in tbe hanking sector. 

Sei Nakal deputy director general of 
the Ministry of Finance’s banking bu- 
reau. said the government would not 
support any bank without seriously as- 
sessing its future, although headded that 
he did not think the country's banks 
were insolvent at the moment. “1 think 
this is a very good way to restore the 
financial system,” he said. 


French Aid for Toyota 
Irks Other Carmakers 


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CampUrd by Our Sutf Fnm Puptnrha 

PARIS — Europe’s carmakers criticized the French gov- 
ernment Wednesday for subsidizing a Toyota Motor Corp. 
factory in France, saying it would add to the European car 
industry’s overcapacity and lead to job losses at other compa- 
nies. 

To rejoicing by the French government, Japan’s biggest 
automaker announced Tuesday it had chosen the northern 
French town of Valenciennes to build a car plant that would 
hire 2,000 workers. It plans to make 100,000 vehicles a year at 
the factory when it opens in 200 1 and to install the capacity to 
increase that number to 200,000. 

Faced with a 12.5 percent unemployment rate, the gov- 
ernment has actively promoted France with overseas in- 
vestors. It is expected to finance about 10 percent of the 4 
billion franc ($667.5 million) cost of Toyota’s French plant 
through tax breaks, cash payments and infrastructure de- 
velopment. 

ACEA, the European carmakers association, said Wed- 
nesday that Toyota's invesnnem “will end up as a dis- 
placement of employment rather than a net creation of jobs. ” 

Toyota's plant, as well as a plant Daimler-Benz AG will 
open next year in France, will add to a European production 
capacity that is already estimated at as many as 18 million cars 
a year. About 13 million cars will be sold in Europe tins year. 

France’s two carmakers. PSA Peugeot Citroen SA and 
Renault, which control 56 percent of the French market, have 
also criticized the government’s subsidies for Toyota. Prime 
Minister Lionel Jospin responded that once Toyota had de- 
cided to set up a plant in Europe, “it was useful that it be in 
France.” The European Union is. to phase out limits on 
Japanese car imports by 2000, which could be a windfall for 
Toyota’s new factory. 

European Union approval is required for the aid to Toyota. 
ie Eu is expected to start Its investigation early next year. 

f Bloomberg, AFP) 


The 


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Renault and NTN Corp. of Japan have agreed to set up an 
auto-parts joint venture in France that will begin production by 
2000. company executives said Wednesday, according to an 
Agence France-Presse report from Tokyo. 

The venture is to be established early next year with an 
investment of 20 billion to 30 billion yen ($154 million to 
$231 million), one of the executives said. 


A LITTLE SOMETHING 
FOR YOUR GREAT 
GREAT GRANDSON 





The Corum Gold Coin Watch. An 
authentic $20 U.S. gold piece, first min- 
ted more than 100 years ago, is halved 
and an ultra-flat mechanical or quartz 
movement is cushioned inside. Heralded 
as one of the world’s great timepieces, it 
is prized as an heirloom to be passed on 
from generation to generation. 



Maftres Artisans dHoHogerie 

SUISSE 

Ftir Information write io Corum, 2301 La Chau*-tle-Fonds, Switzeriaod. 






PAGE 14 


INTERNATIONAL HERALD TRIBUNE, THURSDAY, DECEMBER 11, 1997 


R. 


,.*.*.* ft f V~. j 


The Dow 


3 0-Y ear T“B on d ; Yief d 


Asia-Linked Profit Warnings Knock Stocks Lower 


• wo. 


7500 — -U¥ 


CtmgeMiy Ow 5a#F ran DhparrMes 

NEW YORK — More 
signs that financial chaos in 
Asia is taking a toll on U.S. 
corporate profits rattled the 
stock market Wednesday, 



I* , * sending prices down sharply. Bat the Nasdaq Composite 

, — _ — - -jirL \ JLP. Morgan became the Index, heavy with computer 


- : 120 


I 1-65 J A S 0 N D i 110 J A~ ' 
f 1M7 • 1997 


j a s - r oTTd ' j 

1997 1 




latest in a string of U.S. 
companies to blame Asia for 
weak profits, saying die first 
two months of the latest 
quarter had been “adversely 
affected by unsettled market 
conditions globally." 


J. P. Morgan gets 40 per- 
:nt of its profit from trading, 








Source: Bloomberg, Reuters 


Imenuikiul Herald Trflbunc 


Very briefly: 


• Merrill Lynch & Co. has suspended negotiations to bay 
Hambrecht & Quist Group, a securities firm that specializes 
in technology and health care companies, analysts and in- 
vestment bankers said. 


■ Tele-Communications Inc. is exchanging cable systems 
with U S West Media Group and Gannett Co. and, sep- 
arately, combining some cable systems with Century Com- 
munications Corp. 


• AEA Investors Inc has dropped its plans to acquire the 
constuner-bousewares unit of Corning Inc, citing concerns 


. consumer-housewares unit of Corning Inc, citing concerns 
that the Aslan economic turmoil might affect the unit's sales 
□ext year. Coming said it still planned to sell the maker of 
Pyrex, Coming Ware and Revere Ware dishes, pots and pans. 

• Eli Lilly & Co. said it had won approval from the Food and 
Drug Administration to sell E vista, its new drug for os- 
teoporosis prevention. 

• Time Warner Inc's Warner Brothers has fired Chris 
Pula, head of theatrical marketing, as the movie studio nears 
the end of its worst year at the box office since 1990. 

• The U.S. Postal Service reported net profit of $1 .3 billion 
for the year that ended in September. 

• The Securities and Exchange Commissioa will direct all 
public companies with substantial “year 2000 " computer ex- 
penses to disclose in annual reports next year their plans for 
repairing the problem and the cost. Unless fixed, many com- 
puters on Jan. 1,2000, will read the last two digits of the year as 
1900 rather than 2000. 


cent of its profit from trading, 
more than any other U.S. 
bank. Its stock closed 5% at 
11716, pulling down bank 
stocks and the Dow Jones in- 
dustrial average. 

“It’s taken the wind out of 
the market's sails, but it’s not 
just about J. P. Morgan." said 
Robert Froehlich, chief in- 
vestment strategist at Kemper 
Funds. "It redefines that we 
don't know where the lead- 
ership is going to come from 
in the stock markets.” 

The Dow closed 70.87 
points lower at 7,978.79. The 
broader market also slumped, 
with die Standard & Poor’s 
500 index falling 5.99 points 
to 969.79. Losing issues out- 
numbered gaining ones by a 
2-to-l ratio on the New York 
Stock Exchange. 

Among the banking stocks 
that followed J.P. Morgan 
down were Citicorp, which 
lost 6 1/16 to 131 13/16, and 
Chase Manhattan, which fell 
3 9/16 to 112 5/16. 

Technology shares contin- 
ued to struggle after Oracle 


said late Monday that its 
profit also bad been hurt by 
slow Asia sales. Oracle re- 
covered slightly Wednesday, 
rising 3/16 to 23 1/16 after 
plunging Tuesday. 

But tbs Nasdaq Composite 
Index, heavy with computer 
companies, closed down 
23^93 points at 1,596.62. 

“People always said you 
have to own Intel, Microsoft 
and Oracle — and one of the 
marquee companies just 
cracked," s»id Paul Meeks, 
director of research at Jnrika 
& Voyles UP. “Some of these 
companies were seeing 50 
percent annual growth in Asia, 
and now that growth is de- 
creasing. No one knows bow 

u .i.:, .,»ii r >• 


long this problem will last’ 
Intel fell 1 1/16 to close 


Intel fell 1 1/16 to close at 
74 9/16, while Microsoft lost 
HA at 142 1/16. 

“There will be a lot of 
fourth-quarter upsets," said 
Shelby Davis, chief invest- 
ment officer at Davis Selec- 
ted Advisors. 

But for the year, the Dow is 
up 23 percent, the S&P 500 is 
up 30 percent, and the Nasdaq 
is up 23 percent. 

“At these valuations, the 
stocks are still sensitive to 
negative news," said John 
Niedenberger, a money man- 
ager with Advanced Invest- 
ment Management- 

Profit warnings smashed 
several other stocks lower. 

Vivus, which makes the im- 
potence drag Muse, fell 5 11/ 
16 to 14 7/16 after it said 
product revenue could drop 25 
percent in the fourth quarter 
from the third quarter because 


of production delays and com- 
petition from other drugs. 

Oxford Health Plans fell 3 
1/16 to 17 after it said it would 
post a fourth-quarter loss of 
$120 million anil alossfor the 
year because state regulators 
had ordered it to raise its re- 
serves for doctors’ bills by 
$164 million. 

Fastenal lost 9 5/16 to 40 
15/16 after the distributor of 
nuts and bolts warned lare 
Tuesday that fourth-quarter 

earnings would come m be- 
low expectations because of a 
revenue shortfall and rising 
labor costs. 

Tricon Global Restaurants 
feU 154 to 32 7/16. It said it 
would take a $425 million 
charge in the fourth quarter to 


close 743 of its less profitable 
Taco Bell. Pizza Hut and 


Taco Bell, Pizza Hut and 
KFC restaurants and write 
down die value of 667 it plans 
to sell to franchisees. 

The charge will reduce 
Tricon’s per-share earnings 


US. STOCKS 


by $2.79 and will result in a 
loss for the fourth quarter and 
the year. 

. Tenneco fell 2 15/16 to 
41%. The mwufecturing 
company said its quarterly 
earnings would fall short of 
analysts' expectations. 

America Online fell 116 to 
85 amid reports that the In- 
ternet service provider was 
ha cking away from a plan to 


roH out a new version of . its 
software by the end of die year 
because of fears it may cause 
difficulties for customers. 

Coming fell 2% io 39 15/ 
16. The maker of glass ma- 
terials and products said -AEA 
Investors had dropped plans 
to acquire its customer house- 
wares unit for $825 million. 

rating concern about the effect 

of economic turmoil in Aria 
on die unit's sales next year. 


Among the gainers. Cel- 
Sri rose 1% to 816. The drug 
company said a study, on an- 
imals showed its experiment- 
al AIDS vaccine offered pro- 
tection against die human 
immunodeficiency virus. 

Philip Morris rose 7/26 to 
45 a d^y after announcing it 


would ciit 2,500 jobs to it% 
structure its -international 
foods division. Morgan Stan- 
ley issued a buy recommen- 
dation on the storic. 

Hasbro rose 15/16 to 33 9/ 
16 a after announcing a sim* . 
ilar cutback. r - 

The Treasury bond market : 
was strong. The price of the 
benchmark 30-year issue rose 
18/32 point, to lOG 22/32, tak- .. 
ing die yield down to 6.07 ■ 


percent from-. 6.1 1 percent . 
Tuesday. • .. . 


Tuesday. : . - 

“Things are still good on 
the inflation' front." said. 
Wayne Schmidt at Advantus- 
Capital Management "That 
ought to give the market a . 
little comfort” 

(AP. Bloomberg. Reuters) 


Dollar Falls as Tokyo Hints at Joint Intervention 


Bloomberg News 

NEW YORK — The dollar fell 
against the yen Wednesday after a top 
finance official in Tokyo suggested that 
the Bank of Japan may sell dollars to 
bolster the Japanese currency. 

Haruhiko Kuroda, director-general of 
the Finance Ministry’s International Fi- 
nance Bureau, said he had been in con- 
tact with U.S. and European officials 
about exchange rates and said Japan 


been holding atthese levels.” 

The dollar fell to 129.400 yen in late 
trading from 129.735 yen Tuesday and 
to 1.7875 Deutsche marks, compared 
with 1.7910 DM. The U.S. currency also 


FOREIGN EXCHANGE 


might act in concert with other countries 
to halt tiie yen’s decline. 


to halt the yen’s decline. 

“Japanese officials don't want the 
yen in a free fall, so they’re trying to 
temper the pace of the movement, ' ’ said 
Mary Ann Bartels, who helps manage $4 
billion in stories and bonds at of Avatar 
Associates. “That’s why the dollar is 


to 1.4462 Swiss francs from 1.4535 
francs and to 5.9830 French francs from 
5.9925 francs. The pound fell to $1 .6492 
from $1.6515. 

Japanese officials often threaten to buy 
or sell currencies to bring the yen closer 
to desired levels. Previous suggestions 
that the Bank of Japan might sell dollars 
helped knock the U.S. currency down 
from a four-and-a-half-year high in 
May. 


still, it has been more titan two years 
since central banks jointly sold curren- , 
ries to alter exchange rates, and Mr.* 
Kuroda" s remarks alone may not have 

“T^^market’s getting sort of numb* ' \ 
to such threats because there have been 
so many this year, said Richard Vullo. . 
manager of currency sales at Baycrische - 

7 . _« n wv J* ID^mIi 


Hypotheken- & WechselBank. 

The dollar was buoyed against the 
mark by speculation that the Bundes- 
bank would not raise interest rates soon. < - 
A Bundesbank council member, Edgar 
Meister, said turbulence in Aria would 
hinder Europe’s economic rebound. An 
arrested European recovery is likely to 
keep the Bundesbank from moving in- 
terest rates, traders said. 7 


Time Warner Inc. and U S West 
To Link On-Line Cable TV Units 


AMEX 


• Peru will raise about $600 million by selling state holdings 
in mining, petroleum, banking and electricity companies. In 
the year that ended in November, the head of the Commission 
for the Promotion of Private Investment said, Lima raised 
$410 million from such sales. 


• Venezuela's finance minister, Luis Raul Matos Azocar, 
faces a censure vote in Congress on Friday, the second in a 
month; opposition legislators have accused him of failing to 
properly investigate a scandal . Bloomberg, a fp, ap 


Bloomberg News 

ANAHEIM, California — Time Warner Inc. and U S West 
Media Group said Wednesday they would merge their on-line 
cable-television ventures that speed delivery of the Internet to 
milli ons of homes hooked up to cable. 

The combination of Time Warner Cable’s Road Runner 
unit with U S West's MediaOne Express would create the 
largest cable on-line business, with 3.6 million potential 
customers now and 27 million eventually. 

Hie move is a another step in the evolution of the traditional 
cable system that once offered a setnomber of channels. Cable 
companies now are looking for ways to keep customers from 
moving to direct satellite systems that offer more channels, 
while Internet users want speedier on-line access. 

Ventures such as Road Runner have so far failed to make 
much money. The on-line portion of the combined company, 
for example, currently provides prog ramming sendees to just 
45,000 customers. 


Wednesday's 4 PJM. Close 

Hie 300 moHraM stocks of Bn day, 
up tothe dosing on Wri Street 
The Associated Press. 


Stas High 1 m uh Org* 


Soft* High LM LM am 


jW IT 4 

r & 


um imi am 


■W • 

srr 


INTERNATIONAL FUTURES 


Dec. 10,1997 


Hlrfi Um Latest digs Ophit 


High Law Latest Qttj* Opfalt 


Wgh Law Latest digs OpM 


Um Latest Chge OpM 


Grains 

corn rewm 

5000 ba mMmuin- cents pur bushel 


ORANGE JUICE (NCTN) 

1 4000 In. -cento per lb. 

Join >175 Bow mao -ais jiatp 

Mar 90 86-13 8400 80S undv 15.723 


D*C 97 277* 269 269V. 

Mar 90 20. 281 281 ft 

MopPO 2W 29816 2084* 

Jot 90 29*14 292V4 2921* 

Sep 98 2*9 288 78844 

Dec 90 38944 228 287Vi 

Jet 99 mu 301 mu 

Erf. sates AUJ00 Ttws sates 61432 
Tan apm M 33M59. all X5U 


-11* 15400 
-U 18M2B 
-I* 44345 
-4* 55.000 
+V. 5,164 

+44 32J0O 
+U 393 


Mov 98 09 A) 87 JO 0945 -005 1595 
Jut 98 9150 9100 92 JO unch. 1,990 


Jut 90 9150 9100 92 JO unch. 1,! 

Erf. sales N A Tun srtes 7JB7 
Tun open Int 45414 up 934 


IP-YEAR FRENCH GOV. BONUS CMAT1F) 

FF50O000-ptsafl00pd 

Dec 97 10046 10044 10073 + 0JM 69462 

Mar 98 10078 100.16 10076 +006 90174 

JunW 9976 9976 99J0 +006 12 

Erf. soles: 171.457. 

Open bit-' 160048 ap 1 1/77. 


Jun98 9575 9571 9572 -004 127,955 

Sap 98 9SJ9 9576 9577 —002 76761 

Dec 98 9573 9570 9570 —082 501047 

Mar 99 95.19 9516 9517 -002 82.799 

Erf.sates: 65315 Pm sates; 4 X 456 
Pro*, upon bit- 603762 up U26 


Wi 9 
rn* 

™ f 

1M II 
12* 12* 
16ft 1» 

iff 

m i 
44k Ah 
2J% M 

1 * 11 k 

3M 19* 
1211 lift 
3* » 

Tl* 10* 

n mi 

Wk 1* 
17* IT* 

6 art 

nv. nk 
I* Irk 
nk » 
i* l 
in l* 
in* a 

1 44% 

M% 36 
31 17* 

41* 41* 

91 16k 

2ft 2* 

Mt 23* 

7* 6 ft 


m 4 

6 4% 

s a -a 

14* 4% 

22 4k 

9 4% 

4% 

in ■* 

11 

H* -rii 

i? 4% 

A X 


^ * 
A & 


r- s? 
? % 
g a 

4» 4?* 

& ff 

17 161k 

tat UM 
19* m 
m n 


HH 4% 
2 


44% 4% 

2ft 4k 


1« +4% 

19% -9% 


IVk +tk 
Vk. 4* 

8 . -* 
114% +4% 
9* 4k 
I 

Ilk *H 
ftk 4k 

B t 

& a 

in 4> 

rS. ^ 

h +n 

to* *m 

I* 4* 
10% -ft 

971b Jib 

w ^ 

M +Vb 


4Uk 4k 
5ft ♦* 
m 4* 


164k 4% 

31 till 
lift 




IB KM ton 

A SJ 

Ifl 

J $ '& 

^ ai? is 

1395 I* 1* 
157 7M 
>01 9ft 9 

& £ lb 

an M » 
u m * 

A ? a 

m IS* w. 

is ** * 

at 7 ttk 

55 *ft i* 
S ton iw 
fit un m* 

Ifl 

^ 13& u5 


P A- 






n 4* 

W i 

on 4% 


U. S. STOCK MARKET DIARY 


Cc>. 


lft -ft 

st at 

in +n 
1W . -ft 

s +n 


Indexes 


Most ActiVes 


36 ft 
in -ift 


f i 


Dow Jones 

OPM MM UM UM <*» 

I natal I011J7 004966 792275 797579 -7007 
Tims 3225-4? 3340W 3310.77 3334.90 -KM 

QMP 362061 20143 260342 361179 -U32 


Standard & Poors 


SOYBEAN MEAL (CBOTl 

100 tan*. Ootara par ton 

Dec 97 22970 238 JO 22970 -1JM 10471 

Jw 90 23000 22000 22240 -170 25715 

MOT 90 21970 316.00 21870 *040 34867 

K 0 21540 21130 21540 *030 21777 
21570 21370 21570 *010 15737 
Aug W 21500 21270 214 M 4120 4760 
Erf. MlM 15000 Turn Hfcs 21,057 
Tun open bit 121 Mt, up 561 


Metals 

COLD OKMX) 

100 trer co.- aakns par taw uz. 

Dec 97 28870 28470 20560 +370 

Jan 90 20740 284.70 28740 +370 

FeP90 29070 28440 28840 +3J0 

Apr 98 29270 20670 29040 +3170 

Jun98 2MJ10 18840 292.40 +3.70 

Aug 98 29570 29470 29470 +370 

Od« 29640 +3.70 


ITALIAN GOVERNMENT BOND OJFFE1 
1TL 200 ndHaii - pte of 100 pd 
Mor98 11473 11445 11447 +501 113,741 

Ate 90 N.T. N.T. 114.14 — 8U11 53 

Sep 98 N.T. NT. 114.14 -0JR 0 

Erf. sales; 27482. Pm. sales: 21+00 
Freu. open Ini: 111794 off 1.983 


Industrials 
COTTON 2 (NCTN) 

55000 8&r cants per Eb. 

Mar 98 5530 ffJO 6505 +078 41416 


Mot 98 6940 6550 6970 4071 14750 

Jut 98 7070 7505 7045 +024 15374 

0098 7270 7270 7270 undv UK 

D« 98 7370 7550 7344 4L09 1L200 

Erf. cates NJt. um irfM 1 1491 
Tuw upon M 8556U up 505 


ffl 

^tlDEMAKSPlGUET 


LIBOR 1-MONTH (CMER) 


S3 nrttar- nts of 100 pcL 

Doc 97 9403 94X12 9403 undv 30751 

Jan 90 9427 9426 9427 +502 12705 

Fab 90 9423 9420 9422 +503 5772 

Erf. sales N A Tm cates 3700 

7«W open M 41517, off 800 


Dec 98 30590 29500 29580 +160 


Feb 99 30590 +370 

Erf. sates 41000 nm sates 45051 
Tim open Mimuf. off S38 


Industrials 173877772465172590 II22J0 
Tramp. 701.96 694L82 69530 70039 

Utumra 22071 ' 21583 21979 22070 

RnancB 121.02 n?JO 119JS1 118J7 

5P500 93336 97177 973.10 96977 

SP100 47187 U6M 467JS2 46483 


v*t wah 

175145 63V, 
noau37*w 
ransa 26 U 
73238 4Hk 
57321 585W 
56950 *1* 
557n 109*1 
5W 10f» 

47110 74<4 
36330 +P» 
44864 38K 
437IQ Mb 
43284 33tk 
41980 22* 


Um Lot 


36Vk 32* 

105U 106ft 
103* IU 




4J*k 44*1 
37ft, 


SOYBEAN OILtCBOT} 

60000 ta- cenli par to 

Doc 97 25JS 2470 2504 +519 3757 

Jan 90 2570 2570 2524 +517 41700 

Mar 98 25.68 2140 2572 +510 34183 

Morn 2578 3162 2175 +0.05 13J79 

JulW 2670 2573 3670 t00« 11.722 

Aug 90 2595 2585 2591 +001 2.728 

EsL sates 20700 Tim sates 23701 
TUnapsaH 109769, up 482 


SOYBEANS (C8073 
5700 tel mtehmim- cams par bushol 
Jan 90 714 705ft 713 +6 

Mar 90 716 TOO 715ft +6 

May90 719ft 712ft 710* +4* 

Jut 98 730ft 714 TTVj +3* 

Aug 98 716 712 715 +211 

EH sates 35700 Tutn total 17.923 
Tm op« Ini 1551S1, up 960 


HI GRADE COPPER (HCM» 

25000 ■&. mOs peril. 

Dec 97 >1.25 80J0 0050 410 

J<B1 98 83.00 8170 0175 7.15 

Feb 90 8270 81 JO 81.70 7.15 

Mar 90 BIOS 0170 0270 775 

Apr 90 82.90 82J0 82JQ uadi. 

May 90 BITS 83.10 8110 unde 

J un 98 8180 8140 B3M 7.15 

Jut 98 8410 83 JO 8170 unch. 

Aug 90 0470 8190 8190 7.10 

Erf. sates 6700 Tu« tales 5134 
Tun open bit 64577. up 45 


SILVER CNGIIUO 


1000 Iror az.- cents per buy ». 

Dec 97 58670 54670 502JD +4330 1.1&S 

Jon 90 50440 57070 58440+4110 35 

Feb 98 50640+42.90 

Mar 98 58450 S45J0 50770 +42J0 64372 
May 98 58700 55170 58670 +41 JO 6J63 
JW 98 5B57S 56400 5S570 +4O70 4226 

Sep 98 50500 56670 5SS70 +3VJO 768 

Dec 98 SB40Q 55070 50450 +38J0 5710 

Erf. sales 45700 Tun sales 19749 
Tun open Inl B9jsa up 980 


WHEAT ICBOTJ 

5700 tauntebnum. cents par bushel 
Dec 97 345ft 342* 344ft unch 

Mir 98 3&1U 3» 358^1 !■« 

May 98 368 365 365ft -W 

Jot 98 373 369 369 1 . 1’. 

Erf-trfes lOOOO Tim seta 10728 
Tars open bit B9.23& up 500 


EURODOLLARS fCMER) 

SI mUaiHitsiiriaopcL 
Dec 97 9409 9407 9400 +071 I 

Fob 98 9413 9*79 9412 +073 

Mar 98 9411 9476 9411 -f&05 . 

Jun9B 9400 9+03 9408 

Sap 90 9405 9198 9404 +076 1 

D«98 9397 9391 9196 +077 : 

Mar 99 9198 9891 9196 +076 

Jim 99 9194 9379 9392 +076 

Sep 99 9190 9104 9179 +076 

Dec 99 9374 9178 9373 +076 

Mar 00 9185 9371 9184 +075 

JunOO 9373 9179 9372 +075 

Erf. totes NJL Tun sates 344381 
Um open bit 179*152. up 071 7 


HEATING OIL OIMER) 

42700 gaL certs per gal 
Jan W 5135 5175 5176 -176 

Fob 98 5185 SZX SIM -172 

Mar 98 5170 5270 S2J9 4197 

Apr 98 5115 5270 5279 4JJ7 

May 98 9132 S1J9 517! 777 

Juft 98 52.10 5174 5174 4177 

Jill 90 5270 5174 5174 -042 

Erf. sates ILA. Um srtee 29JM 
Tim open M 14469* up 2778 


•The finest watch in the world . 

WILL ONLY BK WORN BY EXCEPTIONAL PEOPLE.- 


Jakstum Andaman, 
- &btanLMf(aarPtgam. /B7S 


NYSE 

«** Mot MOT On. 

Kffi ^55 %% 

Tramp. 47193 46974 47093 - 2 J» 

Ugly E1.96 3J9J6 K1J7 +074 

finance *tl5 49097 49294 -5+1B 


Nasdaq 


657310 23ft 
202391 75ft 
156m 17ft 
149649 33ft 
I 


Nasdaq 


mu* %■ Lot* 

m \m ggg 

206166 2047.18 2052J4 -9^ 

WWW w u 

109073 106129 106676 778 


101 1 71 1794.T7 
Mfl J7 2427.42 


»9» 861* 
95268 38ft 
82500 143ft 
77303 37ft 
67385 399k 
67352 2711 
59164 UNa 
58291 Ik 
47949 JJft 


221* 237k 
7T\ 74Hk 
f 6 <-« mi 
Mft 31* 
B8V» 91ft 

Ss 


^ 2^2 


UCHT SWEET CRUDE (HMEIQ 

1700 ML- OoBara per bbL 

Jan re 1870 1875 18.14 773 9&614 

Feb 90 1974 1134 1871 -OJ1 74795 

Mar 98 19J5 18JB 1871 -046 35,73a 


Apr 90 19J2 1875 1876 -042 28701 

Moyre 1VJ0 1875 1878 -039 ZZ898 

Junre 1977 1873 1895 476 34347 

Erf. upas NJV. Tltal sates 78066 
Tbrs open bit 434378 up 2410 


Dow Jones Bond 


MM U» mot aw. AMEX 

67140 66757 66945 -2.10 

SFDR 


WM. HOT) lM 


BRITISH POUND (CMER 

62700 pounds. S per pound 

Dec 97 14520-17438 14498-07006 34365 

Mar 91 1445* 14364 14430-00006 17728 

Jim* 143644)7006 1756 

Erf. sates lAA.UWb eata 24280 

Um open tat S275R, off U92 


NATURAL GAS (NIMDQ 


10800 man DM, star imn btu 
Jan 98 8570 13*0 1310 -0.166 43.774 

Feb 98 2415 2J40 2350 4L127 31047 

Mar98 2405 1290 2300 -0072 2L446 

Aprre 2290 8200 8200 -8060 11,740 

Mayre 2340 2.185 1185 -0038 8571 

JunW 2230 2.100 8100 4733 0711 

Erf. sates HJL Tun sates 44013 
Tun open tat 210074 up L702 




20 Bands 
larntmtes 
10 IndooMalo 


2340 -0.166 43.774 


PLATINUM (NMER) 


50 tray ol- doflm per trey oz. 

Jan re 300.00 37oi» 37290 -loo 18900 

Aprre 176.00 37000 371.90 -200 1223 

Jot W 37340 36890 348.90 -200 119 

Od 98 365.90 -800 1 

Erf. sates N A Tan sates 2409 
Tim open hll4261, up 653 

Ctasa Pmtaut 

LONDON METALS (LME) 

DaOan par awtiic tai 


Livestock 

CATTLE (CMER) 

4*000 tee., certs par lb. 

Dec 97 6737 67X6 67.17 +0JII 

Feb 90 67J7 6745 6745 4L17 

Aprre 71.12 70.70 7072 -<U3 

Jan re mi 6975 6940 -025 

AaaM 71.15 7042 78*2 4110 

Ocfre 7100 7200 7285 +005 

Erf. sates 11.990 Ton sates 117+5 
Tanepan lot 103427. up 42 


CANADIAN DOLLAR (CMC R3 

laaooa doaon. s per am. nr 

Dec 97 -7037 JQ20 J026-0JM07 39.950 

Mar 9* -7069 .7050 J054-0JK07 41702 

Jan 98 JOBS -7072 JD77-&0007 1130 

Est sates NX Ton sales 17476 

Tun open M 04967, off 34* 


TWA 

T* 8 ey 

***** Reran o 
10451 PepQd" 
1 11753 wioi 

10649 gSa 


35364 977*i 96Wa 97*- -i; n 

30864 34ft 31*. ml *2^’ 

jiisb Jet* w* m»; -jC- 

19004 2ft 2ft 2ft +ft 

17840 9U 7ft IV) elft 

«1B5 lft l*j 7*2 +ft‘ 

4* % % +hi 


7409 « ft « .ft, 

Oil til £ 


Trading Activity 


‘■tl lu.i 


Nasdaq 


UNLEADED GASOUNE (NMER) 


Ateaitaain [HM Grata) 

Sprf 1598-00 1S59JS8 I5S3ft 1554ft 

Forwnrt 1579.00 158000 1574ft 157200 

Capon- CatboOK (HtaS Grade) 

Spaf 178700 1783.00 177400 177800 

Fatwanf 1817.00 1 81 800 100440 180500 


GERMAN MARK (CMER) 

i2&000«*k3kSpermatti 

Dec 97 4620 4574 4599+00013 47476 

Mar 98 -5643 4«J2 4628+04013 0866 
Junre 4663 4656 4656+80013 4245 
Ert. sates N.A. Tun total 5746* 

Tunooan W 107.924 up 7JJ69 



1020 1145 Mnnaid 

™ 1 s 

^ 167 


FEEDS R CATTLE RMER) 
JUOODlxk- cent* parte. 

Jan 91 am 7965 79.72 JU2 

NVor9e 8047 7940 7942 0J7 

Aprre 0860 00.17 0827 -027 

Moyre 81-35 9007 B092 -047 

Aug re 82.90 0245 82.75 -047 

Sep 98 B2J5 8245 >165 -045 

EsL sates 1398 Tbn tates L993 
Tun apM Iri IU7S up 31 9 


5pat 517ft 518ft 

Forward 53400 53500 


516ft S17tt 
SHOO 53400 


Spat 60*500 607500 
Forw ar d 616000 6179.00 


597500 590000 
607000 607500 


JAPANESE YEN (CMER) 

123 We n ran per 100 ygn 

Dec 97 J7W J700 J736+(UW12 71444 

Mar9® -789* -7306 JB42+OJW1J 81902 

Jm98 -7983 J9S0 J951+OOD12 1421 

Est. sates tLA. Tun rates 04009 

Tun open tor 157^08 up 2J1 1 


Jan re 5645 54.10 

FrftTC 56J0 5600 

Mar 98 57.10 5543 

Aar 98 5005 5846 

Moyre 5800 58.10 

Junre 5840 57J7 

JUt 98 58-00 57.17 

Augre 57.05 5642 

Est. sates NJL Tun srft 
Tim open bit 99471 ep 


5626 -1J1 
5440 -148 

5861 -1.15 
5046 -143 
5842 -097 

57.77 4J.92 
57.17 -are 
5642 -DL7S 
n 21135 
2403 


1)46 1595 

ma Teas 

18*1 1S51 * 

5600 5751 

.66 in* 

1*3 170 


Madwt Sales 


Automatic Royal Oak 


310 253 

?S ?s 

7 S fiO« 

** '• I" raaflona. 


cns. : 

S98A1 649 

29 AS 3745 

80208. 


Spot 548000 549000 
fita unl 538800 539000 


fita unl 538800 539800 
Ztae (specu NU Grate) 
Spot 1125.00 1126.00 
Fcnrard 114740 1147ft 


599500 560000 
5*6000 5*6500 


109900 1101.00 
112200 113400 


HOGS-leoa (CMER) 

40000 tee.- cents per lb. 

Dec 9 7 6200 62-20 6247 -063 

Feb 98 6077 6010 6857 -007 

Apr9B 5745 5705 5745 -822 

Junre 6545 6M5 65.17 -807 

Jed 90 64.15 6195 6442 -0.12 

Erf. sates 8027 Tun sata 8197 
Tun open tot 408S2. all 4)8 


HSgh Law Oase Chge Optof 


SWISS FRANC DCMER) 

12&000 tana, S per franc 

Dec 97 4939 4865 4920+00035 28745 

Mar 99 .7012 A92S .6991+00037 38584 

Jon 98 .7070 7060 7060+0003* 1451 

Erf. srfes NJL Um sates 44377 

Tm apan bit 64091 up 0730 


gasoil ape 

U4. (Sedan aw aOTrfc lea . tats or 100 tens 
D*c97 16150 15775 15BO0 —SSI) \ 

Jon re 16475 15945 159-50 —500 29.195 
Feb « 16475 16850 16100 -400 11354 

Mar 98 16400 16100 161.00 -850 11018 
Aprre 16400 16100 16140 —275 4006 

May 90 16400 161 JO 161J0 —2-30 1959 

JUB9B MOTS 16100 161-50 —ISO 11064 
EsLnteeJ43». Pm. eates :1&422 
Pm. opan bitre^as Off'Ll 10 


/ 1 ft tr ttnm Sr*ar4W 

7H. « iijiiius n»i/ui ms i it n. " 


Divide nds 
Cmtpony . 


**t»« Aayau-wirjiMAmnpeam+nB e-malt *nWiiiii* win 


Per Amt Rec Pay company 


PORK BELLIES (CMER) 

40000 ■».- cents oar 10. 

Feb 90 56JB 5405 5810 +867 

MrtW 5SOS 5435 5S40 +055 
MOT 90 5810 55 JO 5807 +835 

Est totes 2JS2 Tbn soles 1321 
Um open bit 8907, oil 93 


Financial 

US T BILLS (CMER) 

II mOten- ptsoMOO pcs. 

Dec 97 $4 95 94.93 9494 +804 3405 

Mar 90 '9503 9496 9503 +0.07 6424 

JUI»98 9499 +006 933 

Sea 96 M-96 +805 23 

Erf. sates KA Tm srfas 927 
Tun opan bitll.l8& off 57 


MEXICAN PESO (CMER) 

500000 pes& S per peso 

DM97 .12287 .12250 .12270^00156 11,363 

Mar 98 .11867 .11017 .11835 -7X048 137+4 

Junre .11475 .11440 .T14S5 %0024t X03S 

Erf. sales NJL Tbn rates un 

Tm open tel 32408 up 411 


3 YR TREASURY (C80T1 

3100000 orin- pb BiOrfnsal 100 pd 

Dec 97 MMTNMf I0<WU +17 59,799 

EsL rates 54018 Tim srfes 54505 

Tun open W 271,901 off 015 


Food 

COCOA (NCSE) 

1 0 mMc tans- S per ton 
D*C 97 1650 1590 1650 +59 57 

Mor9B 1674 1618 1671 +53 4&080 

May 90 1700 1645 1697 +52 I8.9M 

Jutre 1717 1687 1717 +52 4706 

Sep 98 1736 1700 1736 +52 U54 

DK98 1757 1727 1757 +52 9,143 

Erf. rates &937 Tun sates 5,253 
Tm open let 97AU. eft 241 


W YK TREASURY KBOn 


tioaooa artn- pb & 3Dttfs ofiao pd 
Dee 97 Tll -16 111-05 111-15 +11 6W51 
Mar » 111-09 WHO 111-07 + 11 308605 
Jun98 111-05 +11 811 

EsL sales 7U70 Tites sates 129J00 
Tim open H 378847, off 3^22 


3-MONTH STERU NS aJFR) 

£S08ooo . pis at too pa 
Dec 97 9231 9239 93J9-OC2 141425 

M«98 92-31 92J8 9139 -802 138389 

Junre 9142 92-38 9240 -WO 10W69 

Sep« 9254 9150 9253 -051 81503 

Deere 9271 9247 9130 Unch. 77404 

Mar 99 92.91 9247 92.90 UndL 66506 

Jin 99 93.00 9104 9307 Unch. 58376 

EstsateK 51499. pnnr.aafaiK 147.921 
Prw.apmint: 801912 off 381 


BRENT OIL OPE) 

U3. doBars per band - tab at UNO bands 
Jan re l&so 1740 1742 -850 45.157 

Fibre 1805 17.53 1753 —046 67569 

Alerts T8JI7 1759 7759 —843 24777 

AprW 1809 1745 1744 -03? 1JJ09 

Moyre 1807 1774 1747 —056 11077 

Junre W .10 1748 1749 —834 17080 

Erf, sales: 55420 . Pnv.sata:4U29 
Prav. ap ea tetalKHK ap 1409 


74% 71k 

tak 2 M 

SS & 

lift 11 
£ £ 
Mt Oh 

Sff fiL 


lVte 4k 

k * 

nii +*k 

2798 -5k 


» +48 

an as 
ZM l 41 


I ¥ 
■a? J s? 


a 288 

1% Ik 


Stock Index** 

SP COMP INDEX COMER) 

250 x Index 

Dec 97 97? JM 96340 97140 -740 20U15 
Mer9B 967.10 97450 902JH -800 12X476 
Junre 99650 99500 99500 -550 4962 
Erf, sales NJLTMl mAh 13M93 
Ti*sopen ttf 4)8433. up L919 


17JJ0 W . 7ft 

* 3. 


lft +¥■ 
29Vm Jft 

»% Ji 

M +lft 

M ** 
13 +ft 

ffi* -v% 


lft lft 
jHf 

4Wk Mt 


IRREGULAR 

Canon Inc ADR _ 523 12-30 — 

STOCK SPUT 
Cable Design 3 ter 2 snBt. 

S^itedi Onp2 for 1 spltt. 

Z-Sewen Fund 2 fori spitt. 

STOCK 

D&NRnd - 10% 12-23 1-13 

INCREASED 

H^&RnoNOT a -?0 }»-23 M3 

SSSSSST" l illis ,3,1 


Ape* Muni Fund 
Banco McGtockln 
CdnPodficLJdg 
Caterputar Inc 
Conwn unity Find 
yp^s*AT» 
OANFInd 

Enron OBfcGos 
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ICD Inc 

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John MAnmlHn 


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M -053 2-10 12-30 
Q -IB 12-31 1-31, 

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O -25 12-96 MS' 

Q .08 1-20 3-3 


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Pec97 19125 1B75Q 188JJ0 +050 759 

Mar 98 18850 181 JO 18160 -040 19,193 
May 90 101J10 17550 17*50 +030 M95 
Jot 98 171 00 147.00 14850 +130 2410 
5^98 16250 15800 16050 +1-30 1.186 
Erf ertM 10413 Tun sales 14943 
Tm Open tat 31,132 up 2A68 


US TRBA5URY BONDS CCBOT) 

ttpd-StOaOOOph*.32n*BnOOpd3 

Dec97 118-34 118-10 118-22 +15112386 

Mvre 118-19 118-09 118-16 +.14 569474 

JM9B 118-06 117-29 11B416 +14 18J25 

Srp« 117-30 +14 4097 

Erf. sates 795MD Ton salmXUSB 
TmapenW 709442 offMQS 


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Dec 97 9653 9622 9653 Undv 242363 

-tan 98 9623 9622 9622 UndL 12646 

ftb96 N.T. N-T. 96.14 Undv 7S0 

Mar90 9609 9606 9608 Uneh. 339.F4 

Jan 98 9587 9SXI 9555 -401 3U2S4 

SQIW 9569 9553 9557 -OJH 2322U 

Dec98 9548 9S44 9544 -001 200557 

Mar 99 9550 re36 «28 -001 240355 

Jan 99 9513 9509 9512 UadL 111077. 

Sap 99 9459 9496 94.99 +001 90012 

EsLsatac 130561. Pn*. rata: 112071 
Rev. open bit: 1.9S7J45 up 2100 


FTSE IMI (LIFFE) 


DOT 97 51650 5I6SO SI40O —384) 50777 
Marre 52120 52120 51900 -303 17,137 
Erf- rata 14524. Piw. rates: 17,960 
Piny, open bitu 67,934 off 1.153 


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PtOT.apenhk 194421 off W78 


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J88 W VS?& 1225 -<UH 115«n 

Morn 1237 1115 12.16 -008 B^0 

Jut 98 1101 1103 1104 -005 BN 

0390 11 J4 1149 IIJ1 -OOl 3*736 

Erf. sates 14790 Turn rates 1*737 
Tm epen tat 2094D5 off 1.344 


german gov. bund oiffe) 

DM752000 -pts at 100 pd 
Marre 10282 10158 10176 +209 257^16 
JwifO 10212 10211 10212 +0.10 168 

Erf sales: 100332 Ptw.srfBe 131.930 
Pros, open InL: 2520S4 afl 5585 


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Mra-98 9408 9406 9407 UndL 69*16 
Jun9B 9586 9483 95JSS Uadi. 35851 
Sep 96 9468 9545 9548 Undv 28485 
Dec9B 9540 9547 9549 — 0JR 25.768 
Erf rate 31,171 


DSC 97 29540 2921* 29340 — 32* 42*50 

Janm 29540 2931* 29424—32* 4782 

Ftltre 29640 29640 2951A-3U 550 

Marre 29740 39445 29545—3243 1 MW 

Erf. rata 21400. 

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INTERNATXOIVAL HERALD TRIBUNE, THURSDAY, DECEMBER 11, 1997 

EUROPE 


PAGE 15 


‘Christies Up for Sale 
As Bidder Emerges 


CmpMbv Our Pu^-hn 

I fJNDON — t 


Analysts said it was difficult to 



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bidder made a new offer to buy the 
211 -year-old an auction house 
sending its shares up 1 1.3 percent * 

Christies shares gained 31 pence 
to close at 306 ($5.05) after it said 
die bidder, with whom it broke ofF 
talks Monday, had made a modified 
takeover bid. It did not give details 

The previous offer, which had not 
been disclosed, “was not in share- 
J holders’ interests," Christies said. 

A Christies spokesman said the 
company had yet to decide how to 
react to the new approach. 

The auction house said it was still 
consulting with its financial ad- 
visers, Hambros PLC and Merrill 
Lynch & Co. 

The bid comes amid increased 
investor interest in Christies and its 
rival, Sotheby’s Holdings Inc., 
which share the world market for art 
sales as those sales boom and new 
markets such as Asia and Latin 
America open. 

A Texas-based investment group, 
the Bass family, this week sought 
the U.S. Federal Trade Commis- 
sion's permission to increase its 
stake in Sotheby's to as much as 25 
. percent from 13.5 percent. 

“The art market has recovered a 
lot in the last rwo years,” said Guy 
Bell, an analyst at the London-based 
brokerage Beeson Gregory. “In- 
creased profit and revenue is now 
working in the auctioneers’ favor." 


target of 

someone simply seeking the 
prestigeof its name. As a business, 
the cyclical and sometimes volatile 
art market may be less of an at- 
traction, they said. 

The largest shareholder in 
Christies is Joe Lewis, a Bahamas- 
based investor who has a 29.9 per- 
cent stake. British press reports in 
the past year have linked Mr. Lewis 
with possible bids for Christies. He 
could not immediately be reacted 
for comment 

Christies sold $1.602 billion of art 
through its salerooms last year, 
slightly surpassing Sotheby’s, 
which had sales valued at $1 .60 bil- 
lion, for the first time since 1954. 
Christies’ pretax profit was $53.6 
million, compared with $68J2 mil- 
lion at Sotheby's. 

In the first half of 1997, Christies 
had a 22 percent increase in net 
income from a year earlier, lifted by 
successful sales of Western and 
Asian modern and classical art, in- 
cluding a sale in May in New York 
of Impressionist and modem paint- 
ings mom the collection of John and 
Frances Loeb that 
million. 

Other items to cross Christies 
auction tables this year included 
dresses worn by Diana, Princess of 
Wales, sold before her death to raise 




\ mod 
lions 



FMbriun Beaacfa/RDKEB 


Hello, Eastern Germany? 

Chancellor Helmut Kohl in Neubandeuburg on Wednesday helping the 
chief executive of Deutsche Telekom AG, Ron Sommer, to inaugurate 
a seven-year, $30 billion digital phone network for Eastern Germany. 


U.S. and Asian Stock Losses 

Qon or John and /r . rv* j /-v y-f 

taMght in $93 Cast a Shadow Over Lurope 


money for charity. 

Hot 


(Bloomberg, Reuters) 


Praise for Aerospace Plan 


Renton 

BRUSSELS — A top European 
Union official welcomed on Wed- 
nesday the call by France. Germany 
and Britain to restructure Europe's 
defense and aerospace industries. 

But a British industry group 
warned that any restructuring would 
fail if France did not give up state 
control of the sector. 

The EU industry commissioner, 
Martin Bangemanii, said (hat he was 
"particularly satisfied" with the 
three countries’ announcement, and 
added that the commission would 
continue to take steps to facilitate a 
restructuring. But he stressed thar it 


was primarily for industry to work 
out the structure required. 

The firsts steps in the civil and 
military integration would include a 
swift transformation of Airbus In- 
dustrie into an integrated company, 
the three governments said. They 
said the industry should have a clear 
plan and a detailed timetable for 
consolidation by the end of March. 

But a British industry grouping, 
the Defense Manufacturers Associ- 
ation, whose members include Brit- 
ish Aerospace PLC and General 
Electric Co„ said France must com- 
mit first to privatizing its key 
aerospace and defense companies. 


Coaftfrd bv Oar S^fFma DisptMdxt 

LONDON — Stock markets 
across Europe sank Wednesday, un- 
settled by weak performances by 
both U.S. and Asian blue-chip shares 
and concern about the health of Pres- 
ident Boris Yeltsin of Russia. 

“Fear still prevails regarding 
earnings forecasts,” said John Shel- 
ley, a money manager at Aberdeen 
Asset Management. 

Frankfurt’s DAX index fell 1.62 
percent to close at 4,1 17.27 points, 
while France’s benchmaik CAC 40 
Index dropped 0.92 percent to 
2,932. 18. In London, the FT-SE 1 00 
Index fell 0.9 percent, to 5,177.10. 

A lower-than-expected profit re- 
port from the U.S. software company 
Oracle Corp. pulled down the U.S. 
market Tuesday, and that seemed to 
darken sentiment in Europe on Wed- 
nesday. Oracle said its sales had been 
hit by the economic turmoil in Asia. 

“We were all set in the Stales for a 
big Christmas rally, and I think it got 
ahead of itself,” one London dealer 
said. “We had the catalyst of Oracle 
to bring us back down to earth.’’ 


Concern about Mr. Yeltsin's 
health put German stocks under par- 
ticular pressure, as Germany is a 
major creditor in Russia, said 
Fabrice Borland, a trader at Banque 
Nationals de Paris SA fDeutsch- 
1 and) . ( Bloomberg , Reuters) 


Daimler Talks Up 
Revamped A-Car 

Reuters 

FRANKFURT — Daimler- 
Benz AG began an advertising 
blitz Wednesday to proclaim the 
safety of its revamped A-Class 
model Mercedes-Benz. 

Daimler had about 100.000 
orders for the car when a test 
showed it had stability prob- 
lems. It halted deliveries and 
now is malting the car with an 
electronic stabilization system. 
Deliveries are to resume in Feb- 
ruary, Daimler said. 


Euro Gains 
Supporters 
In EU, Except 
In Germany 


Agence France-Prase 

PARIS — With just five months 
to go before the European Union 
decides which of its members can 
implement the single currency, the 
euro, a survey of the five biggest 
countries in the bloc showed Wed- 
nesday that a majority of citizens 
favored the common currency — 
except in Germany. 

Even Britain has for the first time 
recorded a higher number of people 
favoring membership in the euro than 
opposing it Of those asked, 49 percent 
said they favored the single currency, 
with 43 percent against, according to 
the IPS OS -AFP three-month baro- 
meter of EU public opinion. 

The poll showed single currency 
resulting from the bloc's plan for 
economic and monetary union gain- 
ing popularity well ahead of the 
meeting May 2 in Brussels that is to 
determine which countries will be 
the first ones to adopt the euro. 

A total of 53 percent of the 4,773 
people surveyed in Britain, France. 
Germany, Italy and Spain declared 
themselves in. favor. of the. single- 
currency project, up from SO percent 
in a similar survey in June and 47 
percent in March. 

In both France and Spain. 54 per- 
cent favored the euro in the latest 
survey. Support is by far the 
strongest in Italy, ar 71 percent 

But in Germany — where the 
Deutsche mark is regarded as the 
core of the new currency that is to 
comes into being lan. 1, 1999 — the 
change remains unwelcome. There. 
52 percent were opposed, and only 
39 percent said they favored it. 

■ Britain Holds to Its Stance 

Britain said again Wednesday 
that it would not accept ’‘observer” 
status in the group coordinating eco- 
nomic policies for countries that 


Investor’s Europe 



J A SO 

1897 


N D 


London 

FTSE KJOlndex 

5503 

' £1300 

• 5100- 
4900 

.m 

4500 J~A gTTNTf 

1997 


Paris . ■ 

CAC 40. 

3KB --- 



®7a S 6 N D 
1997 


•Bedhafi8e y . 

’ 1 mtoe f. ' ' 

Wednesday Prev, ' •_ ■ % . 

■ - . .. s ‘. 


Ctosa -- 

Close cnanec 

Anrtstertfom. 

'ABC 

-sto^o 

s&sn f-uia 

JBriMwei*.;;; 

BEL-20: 

2^71-37 

2,487.75 -o.ee 

Frenirfurt-..: 

..oak: . • 

4,117.27 

4,18tk»l ! -1.62 

Cppdf *agen 

Sloe* Marfcei 

BST.fS 

667.85 ^O.IO 

Heisfriki 

'.HEXGami.-. 

"■%wm 

- 3,421*20 -2^5 

•Os*a v .Y . 

x&x 7- ] T . 

6SSJ8 

691-26 -0.42 

Lonctoo ' 

ftseioq' : , 

5,130.70 

5,177.10 430 

Itedrjd. . 

Stock £»=h^ige 

623^43 

631.71 -1^1 

Milan 

MA&iEL ■ 

15 m 

15786 .. -0.71 

fe- ' ' 

CAC4Q . 

2,932.18 

2.953.40 4J9Z 

StocKbolm - ' 

SX16. 

Z#SZ » 8 

-3>)&35 -137 

Vienna 

ATX .. . 

L305JB4 

1,323.80 -1^6 

Zurich 

SPI ‘ : . 

3,776.83 

aaoass -a7o 

Source: Tetekurs 


iiurnulixul Hcrsld Tnhmc 

Very briefly: 


adopted the euro, Agence France- 
Presse reported from London, 
Prime Minister Tony Blair made 
the same point Tuesday, as he has 
done before. The Labour govern- 
ment in Britain has ruled out joining 
the single currency until after the 
next general election, which must be 
held before the spring of 2002, but 
has indicated it would be likely to 
join soon afterward. 


• The European Commission is considering allowing ihtr 
Continent's phone companies to continue to own cable- 
television networks as it prepares to open Europe's tele- 
communications markets to competition in January, a person' 

. familiar with the. situation said. The plan would reverse a* 
policy requiring the companies to sell networks they own in. 
their geographical region to promote competition. 

• The European Commission cleared Anglo American' 
Corp.'s plan to swap its 26. 1 percent stake in Ixmrho PLC for- 
stakes in two gold mines owned by JCI Ltd. and other JCi. 
assets. The transaction, which settles a yearlong antitrust*' 
dispute over Anglo American's share of the $ 1 .8 billion global- 
platinum market, is valued at 2.4 billion to 2.6 billion rand 

l $493 million to $534 million J, •_ 

• Aero International (Regional), a European plane -making'' 
venture based in France, abLidoned plans to develop a 70-seat 
passenger jet with a South Korean consortium led by Sam- 
sung Aerospace Industries Co. 

• Kingfisher PLC, a British retailer, warned of stiff com- 1 
petition in the Christmas season as it said sales at its five retail* 
chains rase 10.8 percent in the three months ended Nov, I. 

• Fidelity Brokerage Services, the British brokerage arm of- 
Fidelity Investment Co., said its president and chief ex- 
ecutive, Giles Vardey, would step down next month as the 1 ' 
firm abandoned its institutional business to concentrate on* 
retail customers. 

• Fiat SpA expects to double its operating profit this year to - 

3.6 trillion lire ($2.09 billion), a senior executive said, adding’’ 
that the carmaker expected sales to rise 15 percent, to alraosr 
90 trillion lire. ! 

• Belgium and Luxembourg's trade surplus grew 53 percent' 

in September, to 58.7 billion Belgian francs ($1.59 billion), the!’ 
National Bank of Belgium said. The two countries are joined in* 
an economic union. Bhomberg. afp 


WORLD STOCK MARKETS 


.SA Breweries 


Wednesday Dee. TO. : . 

Price in'kxoj currende, 

Tetoku « 

High Lm daw Pm. 


Amsterdam ‘fx-Egg 


'Niger '-tatn one 


ABN- AMRO 
Aegon 
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AkioNoM 
BnanCa 
BnttfffeKCva 
CSMcVO 
OonSKfwPW 
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FnthAmw 
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KLM 

sr T 

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PttBpsElec 

PoWjmm 

BM&mrtHdg 

gyro 

RSkd 

Raienta 

RwJfDefcfi 

Uufiwaa 

VcKfcxbffl 

vwi 

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4.70 
17*70 
MJ0 
357 JO 
MW0 
3050 
8150 
104*0 
IK.® 
3350 
87 JO 
UJffli 
350 
VJ-70 
347 
KJQ 
775? 

.150 

4 

8I.W3 

4150 

M£0 

xn 

136 JO 
TC.90 
75 
19150 
9730 
181 
170 
IQS. 80 
173 
113.W 

stJa 

7*5 


40.90 41 JO 

1M|0 17490 


41 JO 

17*1 61? 

53.10 5120 5450 

34850 349 353 

I44J0 14440 ISOM 

30 30 3040 

8740 83 KUO 

iOilO IC4SJ 10430 
17950 179.80 18550 
33JS! SUfl 31*0 
8550 85.90 87.70 

6130 *3.50 *350 
52 53.90 5150 
ana sbjo 9 »js 
341 341 347.90 

92.10 92 JO 9650 
7*50 77 JO 77.80 
8640 87 JO §7 
74J0 74.90 7850 
42J0 41*0 43.80 
8030 80.70 82.10 
4190 4190 44.30 
5P.«? <saffl <mjo 

218 2W 224 
110 SO 131 SO 1JS.40 
100 100 JO WHO 
7130 74 74M 

192 197 192M 

57.10 57 JO 
180 181. B0 

170 11950 

107 40 I08J0 109 

170.60 170-00 12110 
111.89 113.10 11140 
49. W 50.70 51M 
763 263.90 36130 


Qwtseha Bank 
ttarflfcMom 
DMsdntr Bonk 
ftnsmftii 
FmnhBlM 
Fried. Kropp 

HeMrtboZmt 

HenkMpU 

HEW 

HoeMH 

HdkM 

KnctaOt 

Lnhmeyw 

Unto 

LuMwnuR 

MAN 

Mamesnanfl 


12640 

3440 

82.10 

284 

11130 

349 

W2J0 

13X90 

11130 

465 

7S 

*3.95 

666 

77 

1136 

3450 

556 


Meta' 82.10 

Munch RukKR 619 

SST 8 

SAP JOS 

SdieiOw 18150 

SGLOnhan 232 

Siemens 109.10 

Springer (AnQ 1345 

Suedzucher 913 

TWSM« 41050 

Veto ills® 

VEW 555 

Vino KJ 

Vofcvwgen 1003 


134 30 124*5 
3160 31» 
79 7950 
an 3M 
11350 114 

346 346 

10150 10150 
134 13650 
111 1040 
465 466 

7S 75 
63.70 6255 
634 655 

74 7550 
1110 1119 
3435 3440 
549 549 

858 8S9 

3170 3175 
81 ifl 81J9 
613 614 

503 514 

9150 9150 
578 57850 
175J0 17750 
22650 2250 
10574! 106 

1339 1339 

913 913 

•mso 40950 
mio 11340 
555 555 

91* 924 

995 996 


Pm. 

wiao 

34.90 
B140 
284 
115 
350 
101.10 
13950 
112.90 
465 
75 
6390 
643 
77 JO 
1130 
3474 
546 
87* 
3380 
8250 
61150 
516 
9390 
55550 
18250 
73050 
109 JO 
1380 
916 
41390 
11250 
5*0 
9*0 
1009 


Sesot 

sue 

Tiger Oats 


High law Ctose Prav. 

ii9 mn H5JB0 119 

2435 24 2450 2450 

-ff.90 A25 49-00 4M5 
207 705 ■ 207 287 

67 67 67JQ 


Wgb uw Owe Prav. 


High Low Close Pm. 


Htfi taw am Pm. 


Kuala Lumpur 

Prawn: 629-15 


UMUtMes 
Vtixtane Lxots 
VOdatone 
Whffinead 
WUansHdgs 
wbBeOy 
wpp Group 
Zeneca 


740 7 A0 756 751 . 


472 464 467 

416 408 413 
855 853 .864 

33* 339 351 

502 44t 5.0J 

248 242 243 248 

1940 19.35 1940 1905 


470 

403 
842 
330 

404 


AMMSHdgs 

GenOng 

Mril Banking 

AWMShipF 

PabonoiGn 

Proton 

PuhfcBk 


Resorts World 

RttoonsPM 

Strap Dainr 

TekSunNU 

Tenona 

Utd Engtoeera 

YU- 


JOB 199 
1039 940 

1150 11 
5J5 550 

9M 9 

535 496 

111 105 

% IS 

32-50 31.75 
406 386 

11433 1070 

860 7 JO 

340 3JD 
5J0 498 


306 3L0S 
W 10.W 
11 JO 1140 
550 5.80 

9X 9 
5 JO 5.10 
240 Z10 
Sum. 140 
6NJ 655 
31-75 32 

194 408 
11.10 lOJJffl 
830 7J5 

324 124 

5.15 5.15 


Madrid 

SSST 

Agoos Bmcrion 

tsr- 


Oetsatedoc 62343 
Praitom: 631 Jl 




CorpMqriie 


London 


Abbey! 

AJfiedC 


5690 

180 

119.70 


Helsinki hexb««im«w«« 


Market Closed 

The stock market in 
Bangkok was closed Wed- 
nesday for a holiday. 


EinoA 

HuhkimeUI 

Kanbo 

Kesko 

AtofloA 

MctaB 

Metso-Sartu B 

Utoeto 
Nokia A 
Orion- YMymae 
Outokimpu 
UPMKvmawne 
Vote* 


46-70 
225 
51 JO 
8350 
28.10 
12850 
4750 

176 

417 

150 

73 

111 

79 


45 

225 
51 JO 
81 
26J0 
122 
47 
121 

149 

70 

107 

77 


45 47 

225 225 

5150 51 JO 
SI B4 
28 26J0 
126 12B5D 
47.10 48 

121 127 

403 422.10 
149 14850 
TttSB 7270 
107 
77 


[Daneaj 

AAoUanHWar 

A^Cnwp 
AnecBrnnh 
9M 
BaRtays 
floss 
BAT Ind 
Book SooMmid 
Blue did# 

BOC Group 

Boots 

BPBW 

BAAnasp 

BrAAtanrs 

B 6 

Bril Land 
Brit Pda 


"A 


Bombay 

Mai Auto 
HbAM Lever 
HawkKt PcOoi 
todDmBk 
ITC 

JJrihooogar W 
WsOttlnd 
JtotoBklnefc 
StoH AWnrHy 
lata Eng Lora 


Mam 32 MK 2347.33 
piwNut: 329159 


Hong Kong 

sast 

CKWmsWcl 


57* 

1298 

45425 

W 

5*4 

22i7i 

157 

21350 

1025 

77TJS 


551 J5 S5TJS SBOn 
1264127750 1303 

4J0 45350 <51 

81 81.25 82 73 

541.25 547 75 565 

71975 22525 2B 
1» 15425 1S7JS 
3JSJ5 707.75 21250 
975 9 75 1H 

253.75 257 2742S 


Brussels 


BElr2atode)cMlJ7 
Pi a rtor- 7*87.75 



1830 17*0 
*850 4759 
ioi» iwm 

3450 3356 
17750 IMS 
r>10 1710 
R30D 8290 
3480 3400 
7690 7460 

1750 mo 

5550 5480 
15625 15525 
15550 <5200 
14150 <4000 
5140 51S0 
9»» 9910 
3550 1175 
*ji5 2325 

177360 rosso 


1795 17S 
6840 4780 
10160 10100 
3380 3*10 

MW25 

1925 TWO 
mm B2W 
UK W» 
7470 7590 

1740 I7J0 
5540 S5» 

15525 15550 
15350 153* 
14075 14225 
5U0 51» 
0930 W® 
3485 3540 

7315 2350 

3115 31® 
124350 177800 



Shun 

SIliUiMraKi 

SmiwPocA 

HWrfWO* 

Whedodr 


Copenhagen “ftJSSiS 


Pttorim: *57-85 

w 460 »7 ^ 

331 270 37* J* 

va as w w 


<87 


BCOor* 
tanuwqB 

SE f" ^ s a 

SiSiiSjSj 

s aw 

■ublinmnc 79> *9 7W J* 

NioNwritsfea W 2 -W S90 NT* ™ 

S^MBerfl l02 ,B5? i? ’Sm'Sis 


Jakarta 

AshaMI 
Bklntllmton 
BkNwmi 
Oodong G*»™ 
MdopanCte 
indofood 
Induol uu 
Saoipoerno n* 
S«nen Grttfi 
TetotarwWI™ 


4153* 


mi9 

SJ5 

SJfi 

6.18 

1J8 

S55 

iOl 

16 l 70 

9.16 

5J5 

uo 

3L39 

1103 

EL9S 

3J0 

17.95 

569 

290 

6M 


BiS 

Bril Totocnn 

8TR IX 

Bunooh Costal 10J5 
BwlonGp 1J4 

Cable Wlrd ess SJB 

unon uxmn 
Conrnil Union 8JB 
QnnpossQp 7 JO 
CourGufch 117 

Dins 630 

Hednwnipoocrts *.4* 
EMI Group 480 
Ewnrr Group *Ji 
EMBpIseOfi 612 
FomCotontal 1.75 
GenlACddent 1W 
GEC A.13 

GKN 1190 

Giroo WeBcorae 144S 
GfonodoGp 865 
Grand Ma SL» 
GRE U4 

GroendbGp . 4.19 
Gutones 590 
GUS 7J* 

wScHldgi lig 
Kl 9J8 

Inpi Tobaxn 3-99 

Leaser 10.15 
Lam 129 

Legal Gete Grp 523 
UoydsTSBGp 7J6 
LoctaVarUy 1.93 

3 

SffiHSS’ 

NeHPmsr 590 
NatWBsl 10.10 

Nat 7JJ6 

Nenridt Union 340 

ar 


2300 2150 21» tsa 

475 4S0 475 475 

S75 550 S50 550 

8550 8275 8275 9650 

lfiS 1*0 

2H0 7700 27S? 4i<St 

P wo na wk 

■SB 4875 4900 4925 

3^ ss ss %% 

3175 3025 3050 3225 


Johannesburg 


ABSAGranp 

AngtoAinO* 


.— eOanakS 
TisattoUca 
uwdaianartA 


434 42S ^0 “ 
J1U 500 50S 518 


Frankfurt nJSSwS 


AMBB mw 
AMC 274 50 

Arikus <31 JO 

ammi ia» 
AnCteonto tflio 
Ok Bntoi 37.90 

fiAsf *3*0 

ikwtHtpoBk U» 

Boy.WnMwtani lie 

(tawr 4AW 

BcJcodori 7753 

BrarH 4*70 

Hina 139B 

Cnromecber* 69tO 
OromlerSeni WK 
Depone 91 


170* 1*50 JjjM 
777 2p M9J0 
47450 424 A57JO 

UlM 12390 in*0 
169-W 1*20 16|» 
36J5 30 40 37 . ff 
*2.85 M 

#2 ,B 

•« 

4515 46if 4S}3 

S 

“S'itS’JS! 


ssssas 

AngtoW W 
« MP “ 
C&h 
SrtoSrtn 

FstNoBB 

Gchcnr 

Ssr ss 

LAUtoSW 

AfllnoRS 

NoropoA 

Hcdrw 

RadnmBGp 
Bdiomaf 


28J5 »05 2ft» 28J5 
l? »i 224 B4 » J 
109*8 1J&40 1W 20020 
Iff 164 149 16980 

I?5 109.40 71080 1M. 

7S 7110 74 73J0 

5.95 5.70 WO 5,95 

<250 4£W 4160 4260 
19.90 1950 19-50 » 

9950 9850 «80 W50 
3140 31.15 3155 JIAO 
ius 40 4ao5 « 
fM 7-75 7.75 7J5 

A9 M as> 4840 
^jo S3 55 ..56 

17.45 17J25 17J30 17J5 
m 135 m )J 6 

SSI 327 327 2S7.60 

]» 12040 12040 

,S « aw 85.W Kj6D 

37 36« 37 3t»' 

CI7 B 5150 5150 USD 


RoOroUGo tt 

“At u 

344 

fepIBkSopI 780 
l&5onA8 622 
3J8 
&16 
l&M 
744 
5.18 
506 
10.11 
445 
1163 
1^2 
524 
888 
487 
7J0 
757 
480 
508 
9,60 
510 
546 
2.98 
■SM 
518 

749 



FT-SE 196: 513070 
Pu lto WL SI 77.11 

90S 10.13 10J1 
531 532 542 

7M 137 122 

598 598 6.15 

1J2 1J3 1.74 

546 5SS 558 
4.92 498 49S 

16.15 16J9 1*28 
aS8 9.11 9JS7 
535 545 SSI 

558 548 53® 

E2» 125 339 

956 909 9J6 

848 83* W3 

123 337 33? 

17-32 1742 1745 
5J0 564 564 

183 Z96 ZB9 

657 645 640 

8J0 839 8.51 

435 452 446 

1J9 1-39 1X1 

474 475 474 

174 141 178 

1040 1051 Ift&S 
148 140 143 

5-30 539 545 

*36 630 *35 

454 465 448 

B70 878 888 

7.80 7J$ 711 

2.98 3417 301 

605 419 646 

441 447 4*5 

465 470 487 

*25 639 634 

403 400 407 

1.73 173 ITS 

10-18 1045 1079 
401 407 408 

12J2 12*3 13.11 

MU 

3 iiS U 

559 585 580 

7 JO 7J4 7J4 

753 7J4 729 

1537 15*0 1520 
m m 9 
3.83 186 190 

824 879 047 

273 276 283 

971 1IUU 11105 
273 272 277 

512 il7 5J1 

744 757 7X\ 

1J9 1.91 1.91 

515 6J0 536 

578 548 646 

1570 1572 1572 
271 2.94 2.96 
559 5.92 598 

9215 9SR HUH 
*90 595 7.15 

375 279 386 

265 2*5 2.69 

557 564 573 

t2 U! US 
170 170 172 

778 7JB 771 
420 420 421 

7416 720 7.14 
924 10 N»7S 

3L41 348 349 

921 940 9 JO 

3X2 142 342 

5fl2 514 531 

U IS 22 
U0 568 7.15 

2JS 282 Z82 

7*6 7 JO 7.92 

9*4 9.10 926 

2X1 245 246 

7 M 7 JO 775 
504 *09 515 

135 138 130 
5B1 ill 5,15 
1450 1485 19J6 
733 739 741 

5X0 513 415 

3J5 UB 3J7 
9J7 976 9 70 
438 *41 442 


ECSA 

ifessr 1 

Pipen 


i Elec 

TatNXntom 
Teto fo nlca 
Union Fenasa 
Vbfenc Cemeiri 


24790 

20« 

am' 

9830 

4685 

1425 

84J® 

3335 

101 * 

4715 

4610 

2840 

8050 

2908 

1335 

7720 

2060 

23® 

6510 

1450 

11740 

4575 

1495 

2925 


235<0 

2005 

6250 

9680 

4635 

1405 

8300 

3180 

9900 

4660 

4550 

2750 


1315 

7470 

1995 

ZZ* 

6460 

1420 

11410 

4460 

1400 


23690 24640 
2020 2035 
6290 63* 
9730 9840 

4665 4700 
1415 1420 
8410 84* 

323Q 3285 
10170 101B0 
4685 4725 

4565 4655 
2800 2860 
7900 7830 

2850 2885 
1325 1335 

7570 7730 

3000 2080 

2280 2350 

*480 6510 

1420 1430 

11570 116* 
4490 4600 

1490 1500 

2905 2900 


Paris 

Accra '”*• 
AGP 
AirUouMe 
AlaMAbth 
Ajd-UAP 
Banculre 
BIC 
BMP 

Coned Pkrs 

Cmrafour 

Casino 

CCF 

Ceteten 

Christian CNor 

CradUAgricoto 

Danone 

DerfaRai 

EU-Aquhaiiie 

EiUanaBS 

Eurotesnar 

Ewrtuimw 

France Tetocam 

Gen. Eaux 
Hovoa 
bnotal 
Lotage 
Unpaid 
LOred 
LVMH 
MldwBaB 
Ftaitfas A 


— — — — — Electahix B 624 
CAWto 2932.18 gjggjl*, 30 ^S 
Prariow.-JWSJ* ^^Spor 199 


Manila 


PSEiadHC 197284 



PraWocc 1979-58 

Alteto. 

1675 

15 

1675 

16 

AyntoLand 

15.75 

14 

1674 


BfcPWpisl 

91 

88 

89*0 

PI 

C&P Hanes 

2*5 

2X2 

2-6U 

2X4 

«ra«EtecA 

81*0 

01 

B1 

80*0 

Metro Res*. 

285 272*0 277*0 

290 

Ptt ran 

4 

380 

3.90 

375 

PCffiw* 

134 

134 

134 

137 

pfiflUwgOW 

BVfl 

era 

870 

925 

San Mlgad B 

57 


56*0 


SM Prime Hdg 

&30 

6 

6JD 

6.10 


nmiodRknro 22140 
PmigeatOt 
Ptonte-Prite 
Bnmatos 
Renautt 
Rexel • 

Rh- Poulenc A 
Sanafl 
Sdmeidw 
SEB 

SG5 Thomson 393.70 
StoGennale 871 
Sodedio 
SiGobata 
Sooiae) 


*^T 142 *^116 ” 1122 im -{^ISeA 
328J0 32631 328 3Z7J0 OiKstorB 

929 903 905 940 MaDa B 

7B1 772 774 782 PhaimAJplotin 

460 448*0 <59 452 Sanrtrilff 

1070 981 1052 989 Sarnia B 

425 411 413.10 428J0 SCAB 

3S3 317.10 3S0 322J» S-CBanlumA 

1004 993 996 1000 Skondio Fors 

3068 3000 300S 30fi* SVanduB 

337Xi mto 334 33*80 SKFB 

431 407 JO 429-60 417 StwuA 

899 836 886 843 SvHandebA 

635 614 619 635 Vbfn B 

1130 1127 1130 1116 

995 983 9* 994 

685 473 <81 691 

m fM 686 697 “ 

955 912 924 969 SvdneV 

7 JO 7J5 70S T3S 9 Y ans y 

625 6 0S 605 620 

217 21470 ’ 217 21730 Amcw 

784 755 769 780 AMZBMiifl 

419.70 414 41 6. B0 422J0 

731 712 727 714 

388 38? 3R3 389 =^~ 

1194 1171 1183 1200 CBA 

2303 2235 2237 2320 CC Ainatl 

im 1017 7028 W40 Ca tos Ato ra 

323 31020 31020 325.10 Comrico 

541 488,31 537 A9UTS CSR 

320 327.70 322 

719 681 69Q 719 

3209 3130 3144 3201 

2339 2280 2292 2350 

177 170.10 170.10 178 . 

1840 1760 1799 1825 tWAarfBa*. 

369J0 263 2*6 27 7M 

S96 508 5* 599 

335 326 329 AQ 336X1 

80* 000 MM SOB Ptaiyrbin . 

375 379*0 398*)'! Pi* Broaitaisl 
_. 843 856 846 Rio TWo 

33* 3301 33*0 33* St George Bank 

840 806 B06 838 

15*0 15*0 15*0 15.95 


610 612 628 

293 293*0 307 

IM 197*0 200 

352 346*0 347 35450 

to am m m 

377 374 373 377 

220 208 209 219 

281*0 279 28IJO 281*0 

257 250 -251 251*0 

180 172*0 174 179 

178*0 175 17450 177 

94*0 9X50 94 92*0 

m 402 «3 .SB- 

326 321*0 323 327 

173 167 160 175 

102 99*0 102 100*0 

300 -m 300 292 

222*0 219 220*0 220*0 


A8 CMtoartoK 25M70 
Plateaus: 25BXJ8 


6HP 
Bam 

Brmn&feB (n<L 


Poston Brow 
GantawnFld 
IC1 Aostntea 
Lend Lease 


NatAus 

tW Muted Hdg 24) 2J6 

Nwe Caro _ 8*3 439 


683 6T4 675 6J4 

10J5 7057 r0.<M 10.70 

1423 1192 1375 1432 

371 3J3 188 189 

2910 2R25 28*5 2845 

17.12 17 17.10 17.18 

11.10 10.95 11.10 11.15 

743 7JH 731 7.43 , 

630 625 625 427 l 

605 4fl 505 510 

174 169 273 2.76 

130 2-17 117 122 

11.09 1101 1103 11.10 _ , 

3070 3065 31188 31J5 MJlsdJHutaM 

1.17 1.01 IBS 1.18 Mitsui Trust 

2M4 2030 20.43 20.70 Murala Mlg 


Tbo Trib lncflt»x 

Jan. 1, 1982=100 


Woddlndax 
HagionAl Indues 

Asta/PacJfic 
Europe 
N, America 
S. America 
InduatrioJ Indcnss 
Capital goods 
Consumer goods 
Energy 
Finance 
Miscellaneous 
Haw Materials 
Service 


Prices as ot 3.O0P.M. New York rime. 


Lmd 

Ctwnga 

% change 

year to data 
% change 

17227 

-120 

-1.03 

+ 1530 

100.33 

-0.79 

— 0.78 

-18.72 

190.94 

— 157 

-032 

+ 18.45 

216^8 

-226 

-1.08 

+ 33.90 

14529 

-4.41 

-2.95 

+ 26.97 

212.46 

-437 

-2.02 

+ 2430 

206.42 

— 031 

— 039 

+ 2737 

195.70 

-1.10 

— 036 

+ 14.64 

1Z433 

— 1.13 

-0.90 

+ 6.76 

154.03 

-3.88 

-2.46 

-4.78 

169.09 

— 321 

-1.86 

-339 

171.36 

— 2.08 

-120 

+ 24.79 

162.83 

-1.10 

-0.67 

+ 13.50 


imoes 

The tnrematkma) Herald Trirune WcrUSnxk Index flrracks the U.S. dolbr value 
of 2BO knemmknaHy mestable stocks Iromes countries For more information, 
a Ime mount Is avaOabtB by writing to The 7m torim, iBi Avenue Charles de 
GauSe. asset NetuSy Codex. France. Compiled by Bbcmborg News. 


ifl 


137 NEC 
845 NUipn 


rnd»S« 


High Law dose Pm. 


13* 1350 1370 13* Met hone* 

261 242 248 257 Moore 

3850 3770 3770 3B20 NewDridgeNet 

im 1380 74W 1400 Noromtolnc 

1500 1 420 1 450 1510 Norcen Energy 

431 416 427 42B "" - *• 


Mexico 

Alfa A 


36.10 

1678 

Mm 

ss 

a 

21.25 


Baba iadee 504073 
Picteoas:5lllJ7 
59*0 6000 6140 
3155 2070 21 J® 
35*0 35.75 3425 
16J8 16.96 17*0 
39*5 403» &m 
S5XC 5680 55.90 
110 3.14 3.18 

3170 3130 3280 
37.9® 3880 3840 
15480 15420 15420 
20*0 2040 2U5 


suerLyc 

Synfhefa 

nEow 

bo 

M9 

704 

640 

740 

640 

764 

Ml 

740 

Tnuasn 

iCSF 

179 

171 

176 

175-50 

ToHB 


427 

605 

423 

6» 

Ustaor 


89 

8130 

84 

91 

Votoo 


430 415*0 

422 41SJ0 


WMC 
WesteacBUng 
WoodsidePet 
Wootwortta 


4 

« 


3.90 

Ntatentfo 

13500 

1.1200 

13500 

13200 

N.T. 

875 

swsr 

Nippon Steel 

Kl 

620 

636 

624 

1777 

l/*5 

17*0 

1779 

402 

3W 

400 

411 

B*B 

UX6 

8X9 

8*3 

209 

202. 

203 

205 

5.15 

5 

5X9 

5X8 

Nissan Motor 

509 

sun 

5U4 

40ft 

9X4 

980 

984 

9X3 

NKK 

122 

115 

116 

1» 

1MB 

11 

11.13 

1170 

Nomura Sec 

1650 

1630 

1650 

1640 

125 

4*5 

172 

AM 

NTT 

11206 

1100b 

1120b 

1110b 





NTT Data 

<wst» 

4850b 

eawb 






Oil Paper 

534 

.505 

516 

MW 




_ 

Osata Gas 
Ricoh 

296 

1700 

289 

1620 

295 

1690 

m 

1480 


High Law dasa Pm.. 


1285 11 JO 1)85 12*0 
22 6. 21*0 21*5 K M 
56 51.10 51fc 56J0 
2535 2585 25.05 2530 
17J5 17 17 17.45 

Nthero Totocnn 137.0s 132h I33'6 137.2® 


Sao Paulo 

BrattoscnPfd 8J0 8*8 8J0 984 

BrahaoPM 70080 69080 o9580 71DJHJ rS™ rWHnon 

CemJnPfd 48*0 46*0 47*0 4950 

CESPPfd 6598 6680 6680 7000 S2°tonk 

Copet 1280 12J0 12*0 12.90 

EMnbras 53500 515.00 53080 53000 HfSlSln* 

ItoutancnPfd 512JB 507.00 5I0JH) 51081 hStSSLRk 

ilSSSSSSMISSS S3 


stud Market isdn:BS055S 
Protean: 823349 


Taipei 

947DJ9 

98*87 Cathay Ufa ins 149*0 143J0 149.50 140 .. ---- 

' 95 92 9150 9150 SanrOBK 

?3.W 70 72 70 SOTO 


Paten 
SakuraBk 
Sankyo 
Same Bank 


Now 
Ones 

PonatnPeltm 
PetaCdo 
Placer Dome 
PooaPdlm 
Potash Sock 
Rrnaisscnci' 
Rio Algont 
Rogers CaiME 
Sco mnn Co 
Sheflcda A 


« 92*0 94*0 9250 MbuRw ^^ 


25*0 2440 2 4*0 24*D SeWsdl 

95 91*0 92*0 91 SeliwIHoose 

62 SB 60JBJ 59 S«en-Etoven 

99M 9SJO 9B MJ0 Stare 

56*0 54*0 56 54 ShOrokuSPiw 

56 58 56*0 Shhnta 


«Ssp« ISuS IS8 mS iSS BSSF^ tsS' 0 ’ 


Milan 


MIBTa tomanm lSO’** 
PlWrims: 1578680 


sr 4 


Ma rt afto n 
0 ewffl 
Ponnotot 
PbeBI 
RAS 

Roto BaACd 
5 Pooto Torino 

Tetocam llaSa 
TIM 


16500 

5305 

7900 

1520 

38200 

m 

9900 

19470 

30K5 

« 

0350 

13100 

1509 

998 

2540 

4500 

16075 

25200 

17360 

* 

7300 


16300 16410 
5240 5300 

7550 TAB 

1490 1519 
27800 28200 

£075 5120 

10035 10215 
973S 9750 
_4P7D 5015 

39900 40300 
19105 1 W0 
3040 3040 

6780 6780 
8270 82JO 
12800 129® 

1491 15B& 

HQ 993 
2490 2535 
4383 4415 

15870 15950 
24900 24900 
16800 17000 
10600 10625 
7195 7200 


16600 

5350 

7840 

1530 

28000 

531B 

10310 

9845 

4995 

40250 

19345 

3090 

6885 

8355 

13070 

1513 

977 

2540 

4470 

1(885 

25300 

17000 

10965 

7250 


PduflstnLuz 
SldHoctanal 
Souza Oir 
TetHHua PM 

Tefemlq 
Total 
TelespPfd 
Unftaxo 
UcJrataas Pfd 
CVRD PM 


14281 1 38*0 138.00 14480 
32*0 3180 3280 32.70 
141 8J7 879 8*5 


17*3 36*0 36*0 36.90 Slwoka Bk 
_7Etoc 75 72*0 74 74 Soflbm* 

12180 11480 1 135 122*0 “ klW( « Q * S9*0 56*0 59*0 56 San/ 

122*0 11780 11781 124.99 !rt ™' 

I09.P; 701 M imjB 1 1285 

31080 29080 30080 31480 

K.T. ALT. N.T. 4080 

S.77 63S 4JQ 5JT 

2088 1970 19.90 20X1 


Tokyo 


H po-Mfe 16478.12 
Pietens: 16686*1 SumflMtete 


13400 13400 13400 13600 

453 437 450 445 

3090 3838 3020 3090 

1460 1420 1440 1440 THnMk 

372 363 369 359 TiS: 

7990 7960 7990 79H Thomsen 

W90 5900 5900 W90 ~ 

S32 7W 792 B32 

890 BSD 854 880 

9730 9040 9090 9190 

B4i aio an aso 

1090 I860 1698 1860 

418 »1 405 410 

3120 3850 3060 3140 Weston 

1830 1800 181Q 1BOO 

1270 1240 1260 1710 

2800 2720 2740 2790 ... 

12100 naoo 12000 12200 Vienna 

832 790 790 

' 1560 


Suncor 
ratomai Env 
TeckB 


TorDora Bonk 
TrukhOQ 
TronsCdti Pipe 
Trlmoh Rnl 
7itiecKtein 
TVXGoW 
WestcooSt Eny 


1785 1140 1145- 

X 2980 1900 30 

24 23*5 23*5 2185. 

27.70 27.10 27 JO 27.15 

16.15 1540 1590 15 

11.70 11*0 11 W llfc. 
118Vj 116*9 117* 117.15 

30.15 29*a 2900 30.05 

2t*» 26.10 2610 2670 
13W 13 13*4 13.10 

45*0 456i 45*5 4560 

27H 2785 27.70 27*5 ' 

4870 47.90 48.10 48 

46Si 4SW 45V; 45*, 

IP. 18*5 19 18*. 

4610 4515 45<* 45*4 ' 

*WD 33 3115 3110 

38J- 37 JS 37*5 3B.aJ 

55 5640 54'5 5670 ‘ 

M85 20.65 201 21 ■ 

3185 3000 30.90 30.95 ' 

68 65 45H 68U 

35J0 34.90 35 3585 

•3JS 3*5 4 140 

3130 3115 33 JO 33Vj 

116 1 12c It} 11485 


Nippon Air 


Seoul 

□worn 

□demo 


1230 1210 1210 1210 
579 571 579 573 


Sumo Trust 
Tobho Ptniiu 


1590 1540 

379 361 364 

1750 1743 1750 

229 225 227 

815 770 786 


l 3 M Boeteer-UdcWi 
,740 Creditor*! Ptd 
» *“ " 
BIO 


ATX tadau 138504 
Prateaat: 132180 
845 820 B» 845 

fiJO 611*0 61110 620 

3260 3180 31B0 3263 

166SJS 1625 1634 1(35 


i Motors 
Korea El Pur 
Kma Ejkh Bk 
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!§ick Leave 
Raises Issue 
Of Suharto 
Succession 


Bloomberg Ne «* 

JAKARTA — The daily news- 
paper Kompas carried a beaming 
file photograph Wednesday of Pres- 
ident Suharto, the 76-year-old lead- 
er of Indonesia, under the banner 
^adline. “President smiles at ru- 
i!jjors of his demise. ’ * 

Thai apparent lack of concern 
about die effect of rumors about the 
president’s health has many people in 
the world’s fourth most populous 
country gritting their tee*, consid- 
ering that whispers about a presiden- 
tial illness sent the rupiah plunging 
more than 10 percent to a record low 
Tuesday, four days after Mr. 
Solano’s advisers said he was tired 
and would be taking a 10-day rest 
The currency continued its decline 
Wednesday, despite efforts by the 
central bank to support the rupiah, 
with the dollar rising to 4,495 rupiah 
■from 4,175 rupiah Tuesday. 

With Indonesia’s economic slow- 
ing toacrawl. inflation edging up and 
she rupiah down 52 percent so far this 
/year, the absence of a likely successor 
to Mr. Suharto has become glaring. 

“This was a useful wake-up call 
to the markets that political stability 
in Indonesia rests to an uncomfort- 
able degree on the old and increas- 
ingly frail shoulders of one man,” 
Independent Economic Analysis 
(Holdings) Pte. said in a report. 

Mr. Suharto has for more than 30 
years been the unchallenged ruler of 
Indonesia. Since he replaced 
Sukarno to become the independent 
country’s second president, he has 
ruled it like a fiefdom. His children 
dominate the economy. runniBg 
businesses involved in everything 





. . Bony NunhcnUReous 

Mr, Suharto voting in May. 

from roads to banks. 

As Harmoko, one of Mr. Suharto's 
longest-serving aides and the head of 
hispolitical organization Golkar, said 
in October, “There is no other figure, 
and there is no other leader.” 

Mr. Suharto’s rest break comes 
when Indonesia is in dire need of 
strong leadership to stave off a pos- 
sible economic collapse. High in- 
terest rates — the benchmark three- 
month interbank rate has averaged 27 
percent since August, up from 14 
percent before — are slowing 
growth, and businesses com plain that 

they are being pushed to the brink. 

“Why take a 10-day rest," asked 
Bruce Gale, who analyzes Indone- 
sian politics for Political & Economic 
Risk Consultancy Pte. in Singapore, 
“when so many tough d ecisions have 
to be made? The rimin g wouldn't 
seem to allow for this. It raises ques- 
tions of his ability to go on.*' 

Mr. Suharto’s decision to attend a 
meeting of Association of South East 
Asian Nations leaders in Koala Lum- 
pur next week marginally eased some 
of the concerns about his health. 

“If something was to happen to 
him.” said Kamka Singh, regional 
economist at Independent Economic 
Analysis, “who would take over? 
Will they cany on reforms? These are 
the questions nobody can answer.” 


Toyota’s Hybrid Car Arrives 


Bloomberg Neii's 

TOKYO — Toyota Motor Corp. 
started rolling its first hybrid car off 
assembly lines Wednesday, a com- 
pany spokeswoman said. 

TTie Prius, based on the Corolla 
sedan, is powered by both gasoline 
and electricity. Toyota says the hy- 
brid gels double the gas mileage of a 
standard Corolla while emitting half 
the carbon dioxide, a gas thought to 
cause global wanning. 


Nikkei English News reported 
that deliveries to showrooms were 
behind schedule because Toyota 
had received orders for as many as 
3,000 of the vehicles, three times the 
company's monthly sales goal. 

Customers have to wait until the 
end of the month for delivery, the 
report said. 

Toyota predicts hybrid autos will 
account for as much as 20 percent of 
the world market in two decades. 


INTERNATIONAL HERALD TRIBU NE, THURSDAY, DECEMBER 11, 1997 

.. ASIA/PACIFIC 

Comeback for Shanghai Clubs 

Fine D ining and 5 30s-Style Glamour for Expatriates 


PAGE 17 


Age nee Fnmce-Ptrue 

SHANGHAI — The glamour 
and style that epitomized the life of 
foreigners and rich Chinese in old 
Shanghai is making a comeback 
with the opening of clubs catering 
to foe burgeoning foreign business 
community. 

Shanghai has opened a yacht 
club, a tennis club and several golf 
clubs in the last three years. The first 
club dedicated to fine dining opened 
Wednesday on top of a new build- 
ing with a view of foe Bund, foe 
city's traditional financial center. 

The Shanghai American Club, 
with a membership of 400. boasts 
of being the first restaurant in 
Shanghai to offer grain-fed beef 
and a list of 200 wines. 

“We decided to set up the club 
because many expatriates in Hong 
Kong said they were moving to 
Shanghai,” said Michael Ho. ex- 
ecutive director of American 
Clubs International, which man- 
ages the Shanghai club and another 
in Jakarta. 


“We came here in 1994 and 
talked to a lot of people." he said, 
4 ‘There were a lot of expatriates but 
no club facilities, niere was a 
yearning for a place of their own 
where they can feel comfortable.” 

Clubs were foe backbone of ex- 
patriates’ social life in Shanghai 
before the Communist victory in 
1949. In 1939, there were 200 of 
them, mostly organized along na- 
tional lines. 

The clubs were developed to 
allow members to socialize with 
one another to the exclusion of 
Chinese, said Tess Johnston, an 
American historian and writer who 
has lived in Shanghai since 1981. 

“One of the main ideas of clubs 
then was exclusivity.” she said. 

The new dubs will not be lim- 
ited to people of certain nation- 
alities, but being profit-oriented 
they will exclude the less well-off, 
which means that most Chinese 
will be unable to join. 

An American devdoper is com- 
pleting negotiations for foe top three 


fkxxs of the building on the Bund 
that once housed Hong Kong & 
Shanghai Banking Coip. The 
American-style club that is planned 
will move into foe former premises 
of foe old British Royal Air Force 
Club. Elsewhere, a Hong Kong 
group has spent $20 million on G’s 
Club in a bid to bring back foe 
splendor and opulence of the 1930s. 
The clubhouse, with its marble 
columns and high ornate ceilings, is 
expected to open next spring. 

Many other companies, includ- 
ing Corporate Clubs of America, 
are considering projects, said Mi- 
chael Cayley, foe marketing di- 
rector of Shanghai Links Golf and 
Country Club Ltd. 

There are 40.000 expatriates in 
Shanghai, of which 10.000 are po- 
tential club members, according to 
a Shanghai Links survey. The 
Shanghai Links Golf and Country 
Club, part of a $500 million hous- 
ing project, has sold 400 mem- 
berships ami will open in phases 
starting in May. 


China Firm Seeks Nat West Units 


Bloomberg Nen-s 

HONG KONG — Countering foe 
trend among foreign investment 
banks in Asia of shedding busi- 
nesses and staff in the face of crum- 
bling markets, China Everbrigbt 
Holdings Co., an investment arm of 
foe Chinese government, said Wed- 
nesday it was negotiating to buy the 
Asian securities business of Nation- 
al Westminster Bank PLC 

China Everbrigbt Securities 
(Hong Kong) Ltd. wants to acquire 
parts of NatWest Markets' equity 
sales, research, corporate finance 
and settlement departments, which 
employ 80 workers, people at China 
Everbright said. NatWest declined 
to confirm any talks with China 
Everbright Securities. 

National Westminster's retreat 
from investment banking comes 
amid a consolidation in the industry. 
Another top London bank. Barclays 
PLC, put its global investment 
banking unit up for sale this year. 

But at foe same time, banks 
tacked by Beijing are expanding, 
with foe Bank of China reshuffling 
its securities arm and Ka Wah Bank 
negotiating to buy control of Jardine 
Floning Bank. 


NatWest sold its European equit- 
ies business to Bankers Trust New 
York Corp. for £129 million 
($212.3 million) and its U.S. and 
Asian derivatives units to Deutsche 
Morgan Grenfell for £50 million 
this month. 

NatWest is now negotiating with 


several potential buyers to sell its 
Asian businesses. Neroli Hills- 
Perry, a spokeswoman, said. 

Buying NatWest would increase 
China Everbright’s hopes of ex- 
panding its regional trading and un- 
derwriting capabilities and broaden 
its institutional client base. 


Chinese Collective to List on NYSE 

Agence Fruncc-Pressr 

BELTING — Enwei Group, a company specializing in Chinese 
• traditional medicine, will seek to list snares on the New York Stock 
Exchange next year, making it foe first Chinese collective enterprise to 
list on Wall Street, the Xinhua news ageDcy reported Wednesday. 

Provincial authorities in the southwestern province of Sichuan au- 
thorized the listing of Enwet’s shares. Collective enterprises are owned 
by a local collective. They are different from stare-owned enterprises, 
which are controlled directly by the central government in Beijing. 

Enwei Group, based in Sichuan's capital of Chengdu, specializes in 
traditional Chinese medicine. The company employs 20,000 workers 
and has annual sales of 10 billion yuan ($1.2 billion). 

The listing of its shares on Wall Street would help the company 
finance its development in international markets, particularly in 
Brazil, India, Indonesia. Germany. South Africa and Vietnam, ac- 
cording to Xinhua. Chinese companies are allowed to list their shares 
in Australia, Britain. Hong Kong. Japan, Singapore and foe United 
Stales. But the majority are listed only in Hong Kong. 


■ Hong Kong 
Hang Seng 

16500 yi - 

on/ W 

13500 — M 
■12000 - ■] 
10500 

MKh-v-*-* 


J A SONO 

1997 


Singapore ' ; 

SfrateTtmes "■■■■ ; ■: 

2150 — - — i 21500 — 

2000 /i^r ' 2DOOOVV- — j 

1850 — — = ,affl0 — ' 

’■ 1700 W- : .Vt7a» 

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■ m jA s"o‘ N 1 b •’ ‘ 14000 J~A~S oITd": 


Hong Kong Hang Sang 

Singapore Strafe Times” 

Sydney ■ AHO^rjaptes 

Tokyo NBdeaf 32S T 

„ 

Kuala Lumpur Composite 

Bangkok • SET .. 
Seoul Composi&'inc 

Taipei Stock fcJafketl 


-J6.47B.12 

l&d , . 
'‘mas" 77 -" sew 


Taipei Stock fetefkpt index B£03.55 . 

nfeoaa pse I 

Jakarta Composi^lndax ^4W.K94. ■’485.50 

Weftogton NZS&40 Zja&U 

Bombay Sansi^lftdex 

Source. TeJekurs IwrnuurauJ Herald Tribune 

• The World Bank approved a $250 million loan for Pakistan 
to underwrite massive reforms in its ailing banking sector that 
were undertaken early this year to counter bad debts and 
political interference. 

• American International Group Inch’s Japanese subsi- 
diaries said that they would hire about 800 people from 
Yamaichi Securities Co., adding to foe job offers that have 
been pouring into the collapsed brokerage. Since it announced 
its closure Nov. 24, Yamaichi’s 1 1.000 employees have 
received 16,000 offers from more than 1.300 companies, 
Yamaichi officials said. 

• Vietnam's National Assembly has adopted a state bank law 
that formalizes foe role of foe central bank and aims to 
stabilize the nations' troubled financial sector. The law will go 
into effect Ocl I. 

• Malaysia's central bank governor. Ahmad Mohd Don. 
assured depositors that their deposits and interest in all bank- 
ing institutions will be protected even if some banks have to 
shut down, the national press agency Bemama reported. “The 
interest of depositors will be protected,” foe agency quoted 
him as saying. 

• Asia's demand for personal computers is likely to slow in 
1 998 as consumer and government spending in Southeast Asia 
is crimped by the region's currency crisis, said the research 
firm International Data Corp. It predicts sales rising 16 
percent during the year, down from its previous estimate for 
growth of 2 1 percent. 

• PT Trans-Pacific Petrochemical lndotama, which is 
building a $2.5 billion petrochemical complex on foe In- 
donesian island of Java, said it was forced to delay financing 
plans for foe project due ro foe recent wave of regional 
currency devaluations. Trans-Pacific is owned by a group of 
companies that includes Nissho Iwai Corp. and Itochu Corp. 
of Japan. Thailand's Siam Cement PLC and Indonesia's PT 
Tirtamas Majutama. 

• The Philippine Senate began deliberations rat the country’s 

1998 budget by proposing cuts of 1.7 percent from foe 
administration's 540.8 billion peso ($15.43 billion) proposal 
because of foe effects of foe regional currency crisis. The 
proposed budget, already approved by foe lower house, was 12 
percent higher than its 1 997 level Bloomberg, AP 


i g i)i 


■ l >1 t‘I BOSNIA: Unsolved Disputes Prevent Economic Reconstruction 

Continued from Page 13 mainly stait-up companies, “Every Friday, my ac- President Biljana Plavsir 


; 


u;:" - .. . 


We may have a problem in- 
tegrating foe two halves.” 

Unemployment is 50 per- 
cent to 60 percent in the fed- 
eration ana higher in the Re- 
\publika Srpska. Industrial 
production is still only 15 per- 
cent of its prewar figure, and 
many people still hve front 
soup kitchens. 

Besides a few score shops 
in the center of Sarajevo and a 
handful of newly refurbished 
hotels, foe bulk of foe city still 
carries the scars of potholed 
roads and shell-holed apart- 
ment blocks with windows 
covered in plastic sheeting. 
The cates are filled, but often 
with idle youths carefully 
nursing a single coffee, beer 
or plum brandy. 

Beyond Sarajevo, most 
areas survive on little more 
'-.than market gardens, savings 
and remittances from rela- 
tives working abroad. 

For foe employed, salaries 
average 260 Deutsche marks 
(S145) a month, and foe coun- 
try is so poor that customs 
duties and value added tax, not 
income tax, are foe govern- 
ment's main revenue sources. 

While peace and democ- 
racy are inching forward, foe 
political resurrection of Bos- 
nia could lake 10 yeans, and 
foreign aid, foe biggest source 
of investment, will run out 
much sooner. Only a self- 
sustaining economy can lead 
Bosnia !o prosperity. 

But that means changing 
the way Bosnia does busi- 
ness, The large industrial 
combines that dominated its 
economy before the war have 
liuie future today. 

“While they have been at 
war.” said Rory O'Sullivan, 
resident representative of (he 
World Bank, “Eastern 
Europe was improving foe 
quality of its products, its 
marketing and its relationship 
with foe West, and they ve 
taken Yugoslavia’s markets. 
Yugoslavia will have a tough 
time taking these maikets 
hack.” 

Miss Hargirai added, ' « s 
micro business and small and 
medium enterprises that will 
save this counny-” 

Bank loans arc expensive 

and cash is scarce in Bosnia, so 

local entrepreneurs are begin- 
ning to look to venture capital 

funds such as foe one foe Euro- 
pean Bank for Reconstruction 
and Development h® 5 
launched with private Austrian 
investors. A similar U-S. gov- 
ernment fund has already cre- 
ated about 12.000 jobs by 
lending to small business. 


mainly s tan-up companies, 
and calculates that it is creating 
about 1,500 jobs a month. 

Not everyone is waiting for 
help, however. 

Mirsad Delimustafic and 
his brothers own foe BH 
Banka and Cenex, a trading 
and food-processing con- 
glomerate that grew handily 
under Communist rule thanks 
to foe brothers’ commercial 
talent and political connec- 
tions. The company survived 
the war, when one brother 
was the Bosnian interior min- 
ister. and now it runs a ren- 
ovated luxury hotel in Sara- 
jevo and is expanding into 
mobile phones and trucking. 

Mr. Delimustafic sees 
great opportunities for light 
manufacturing with foreign 
partners . 

“We have the remains of 
an industrial base and a West- 
ern European quality work j 
force that is five or 10 times 
cheaper than Western ; 
Europe,” he said. 

Meho Sabic is less san - 1 
guine. He lost a hair salon 
when part of Sarajevo's Hoi - 1 
iday Inn hotel was bombed. 
Another kept operating in foe | 
city center, with 12 tons of 
sandbags protecting customers 
from mortar shells. 

Today he has opened two 
more salons, and business is 
thriving. But, he said, the fed- 1 
eration government does little 
to support small business. 

“Taxes are terrible; it’s just 
too much to bear some- 
times,” he said, although 
some relief caroe when taxes 
were cut from 140 percent of 
an employee’s wage to 86 
percent And the cash-hungry 
government, which sits across 
foe street from his salon, is 
ruthless in its collection. 


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At least in the federation, 
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INTERNATIONAL HERALD TRIBUNE, THURSDAY, DECEMBER 11, 1997 


PAGE 19 


SPONSORED SECTION 


4 CAREERS IN EUROPE: Choices & Challenges 


Higher Education and 

New Technology: Putting 
Europe Back to Work 

Europe needs flexible labor laws and targeted training to create jobs. 

T he overall job statistics 
paint a bleak picture 
for the European Un- 
. ‘ion, where the average un- 
T-mploymcm rate is 1 0.6 per* 
sent That means IS million 


means IS mi 

people are out of work in the 
1 S member countries. 

. This gloomy tableau is il- 
luminated by a few rays of 
fight, however. OECD fig- 
ures for September 1997 
show drops in unemploy- 
ment rates for Belgium (to 

9.5 percent), Denmark (5.8 
percent), Ireland (10 per- 
cent), Luxembourg (3.7 per- 
cent) and Portugal (6.1 per- 
cent). Although Spain’s rale 
was a horrendous 19.9 per- 
cent in September, the coun- 

^ try created 350,000 new jobs 
/ 9 (out of a total of 590,000 for 
r all of Europe) last year, and a 
similar increase is expected 
for this year, although this 
will still leave the country 
wife an unacceptably high 
jobless rale. 

Unemployment in the 
Netherlands has fallen from 
J2 percent in the mid-1980s 
to 5.4 percent today. 

Britain’s “third way,” 
somewhere in between a 
free-for-all market and gov- 
ernment regulation (what 
Prime Minister Tony Blair 
£alls “compassion with a 
hard edge”), has led to a re- 
duction in unemployment by 
A one-half since the early 
1990s, to 7.2 percent in 
September. 

; On the other end of the 
spectrum, France has 
pledged to reduce foe max- 
imum legal workweek to 35 
hours by 2000 to lower its 

12.5 percent unemployment 
rate, and Italy (12.1 percent) 
has taken a similar step. But 
these moves have isolated 
Paris and Rome from the rest 


of the 15-member European 

Union. 

The search for solutions 
What is the EU doing about 
foe jobs problem? The Euro- 
pean Council's extraordinary 
meeting on employment in 
Luxembourg on Nov. 20-21 
came up with guidelines 
rather than concrete actions 
and made it clear fopt, gen- 
erally speaking, foe EU is 
pinning its hopes on mon- 
etary union, which is expec- 
ted to strengthen national 
economies and create 
growth, with a resulting in- 
crease in jobs. 

. In its report, foe Council 
urges member states to “pur- 
sue a policy of growth geared 
to stability, sound public fi- 
nances, pay restraint and 
structural reform'’ to create a 
sound macroeconomic con- 
text. More specifically, it 
supports the European In- 
vestment Bank’s action plan 
to come up with 10 billion 
ECUs ($9 billion) to invest in 
small and medium-sized en- 
terprises (SMEs), new tech- 
nology, new sectors and 
trans-European networks 
(this program is expected to 
generate a total investment 
volume of 30 billion ECUs); 
and foe creation of a new 
budget heading for assistance 
to SMEs and to create sus- 
tainable jobs. Over foe next 
three yeajs, 450 million 
ECUs will be allocated to this 
“European Employment Ini- 
tiative.” 

to addition, the Council re- 
commends EU-wide “em- 
ployment guidelines” with 
four main lines of action: im- 
proving employability, de- 
veloping entrepreneurship, 
encouraging adaptability in 
businesses and their employ- 


ees to enable foe labor market 
to react to economic changes, 
and strengthening equal op- 
portunity policy. The specific 
targets of foe guidelines are 
to be monitored to assess re- 
sults in. each country, al- 
though no sanctions have 
been provided for in case of 
failure. 

Betting on high-tech SMEs 
The report notes that foe 
European Investment Bank’s 
Action Program has already 
set up foe European Tech- 
nology Facility, with funding 
of 125 million ECUs and a 
potential risk capital pool of 
more than 800 million ECUs, 
to provide venture capital to 
SMEs in foe high-tech sector, 
an area with high potential 
for job creation in the near 
future. 

“Software and computer 
services have occupied the 
top positions for employ- 
ment creation in Europe,” 
says a 1997 European Com- 
mission report, “The Social 
and Labor Market Dimen- 
sion of foe Information So- 
ciety.” “Most of these new 
jobs are created in SMEs. ” It 
points to the shortage of 
skilled labor in foe European 
ICT (information and com- 
munication technologies) in- 
dustry and calls for assist- 
ance to SMEs in foe sector. 

Says Steven Garcia, a Vi- 
enna-based computer sys- 
tems expert “The strong de- 
mand for ICT personnel 
stems from foe growing dis- 
semination of EDI (Electron- 
ic Data Interchange) systems 
throughout enterprises.” 

The result is “a growing 
shortage of ICT personnel in 
Germany and in many other 
parts of Europe,” according 
to the Germany-based per- 



The sky’s the limit — if you have the right training. 


sonnel consultancy Kjen- 
baum. The shortage has had a 
corresponding effect on sal- 
aries in foe sector, which are 
rising at above-average rates, 
reports Kienbaum. 

Other sectors that will be 
receiving investment aid 
from foe European Invest- 
ment Bank with foe goal of 
creating jobs are health and 
education, urban and envi- 
ronmental projects, and the 
trans-European network and 
related infrastructure. 

Flexibility: the key 
Perhaps foe most important 
recommendations to come 
out of the Council’s meeting 
concern the new flexibility 
that wifi be required to create 
jobs in the EU. Entrepren- 
eurship, it says, should be 
encouraged by reducing the 
oveihead and administrative 
costs of doing business and 
encouraging self-employ- 


ment by reforming tax and 
social security regulations. 

The report points out that 
taxes and charges on labor 
have increased from 35 per- 
cent in 1980 to more than 42 
percent in 1995 and calls on 
members to gradually reduce 
foe overall tax burden as well 
as specific labor costs and to 
consider foe possible reduc- 
tion of value-added tax on 
certain services. More flex- 
ible working arrangements, 
like those practiced in foe 
Netherlands and Britain, are 
recommended through such 
measures as the reduction of 
working hours and overtime, 
and foe development of part- 


time jobs, lifelong training 
and career breaks, as well as 
more adaptable contracts. 

The Dutch model 
The Dutch methods of choice 
have been job-splitting and 
“flex-schedules.” This com- 
bination is popular with the 
country’s workforce, as it al- 
lows employees to have 
more leisure time and to 
schedule their work around 
foe needs of their private 
lives. Some 37 percent of all 
gainfully employed people in 
foe Netherlands work on a 
part-rime basis while still re- 
ceiving benefits. In Ger- 
many, 1 7 percent of workers 


have part-time jobs and in 
France only! I percent The 
Netherlands' national budget 
deficit has fallen to 2.5 per- 
cent of GDP, one of foe low- 
est in foe European Union, 
while foe country enjoys one 
of the Union's highest rates 
of economic growth. 

Behind both trends is the 
Dutch reform of the pension 
system. Rather than linking 
pensions to foe salary earned 
at foe pensioner's last po- 
sition, foe practice in Ger- 
many and France. Dutch law 
provides that all pensioners 
receive a guaranteed minim- 
um income, with a net effect 
of reducing foe amount of 


money companies pay into 
pension funds. This reduc- 
tion has brought the Neth- 
erlands's unit production 
costs to 80 percent of those in 
Germany. In addition, the 
older or larger foe company, 
the more it pays into its pen- 
sion fund, which explains 
why small companies tradi- 
tionally constitute foe net job 
creators. 

Good advice 

In this era of high unem- 
ployment in Europe, one 
piece of traditional parental 
advice continues to hold true: 


Continued on page 22 


“Careers in Europe: Choices & Challenges” 
was produced in its entirely by the Advertising Department of the International Herald Tribune. 
Writers: Heidi Ellison. Joshua Jampol and Michael Howe in Paris. Terry Swartzberg in Munich. 
Illustrations: Karen A. Sheckler Wilson 
Program Director: Bill Mahder. 







; 


To be quite frank, we at BMW believe 
it is essential to be open to the world 
in virtually every respect; To achieve 
great objectives, you need great ideas. 
And great ideas, in turn, develop best 
in a great environment. Which is why 
we work together at BMW in intercultu- 
ral, constructive, and creative teams. 

A company is always as good as the 
people who work for it. And in this case 
we mean not only technical know-how, 
but also human qualities. A company 
committed to leadership, such as BMW, 
needs equally committed leaders m 
its own ranks. Not the academic hermft 
hiding behind his files, but rather the 
open-minded executive with an open 
ear for new ideas. 


The only way to achieve progress, 
after all, is through movement. Which 
also means approaching each other 
openly and thinking beyond national 
and technical frontiers. And this is why 
every department and every employee 
at BMW must be willing and able to 
contribute critically and constructively 
to the projects we undertake. 

Incidentally, if you also like our BMW 
Convertible, you can be sure that 
BMW is the right place for you. 



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PAGE 20 


INTERNATIONAL HERALD TRIBUNE, THURSDAY, DECEMBER U, 1997 


SPONSORED SECTION 


SPONSORED Si < HON 


CAREERS IN EUROPE: Choices & Challenges 



New Realities and 
New Corporate 
Role Models 

Forget single-minded devotion to the bottom line. 
Today's firms want socially efficient managers . 


M artina Wehner, re- 
cruitment manager 
at Audi, defines a 
socially efficient manager as 
“one capable of working 
well with people from a large 
number of countries and cul- 
tural backgrounds, with 
widely varying occupational 
qualifications and mind sets. 
And one capable of using 
these interpersonal skills in 
making sure that corporate 
objectives are implemented 
smoothly and without caus- 
ing unnecessary impedi- 
ments.” 

This new breed of man- 
ager — now sought after by 
the world’s leading compa- 
nies — offers a major shift 
from the model of the go-it- 
alone, cold-eyed executive 
who did not shrink from any 
measure, however unpopu- 
lar. to maximize the bottom 
line. 

Information explosion 
“The early- 1 990s role model 
simply did not address the 
new structural realities of 
today’s companies and 
today’s world,” says Clem- 
ens Braunsburger, head of 
management development at 
BMW. “The paradigm of the 
manager able, in splendid 
isolation, to process a mass of 
data into a brilliant strategy 
and to then see to its im- 
plementation through a series 
of clear commands and mon- 
itoring measures is no longer 
entirely relevant 
“The amount of know- 
ledge is explodingand is sub- 
dividing into ever-more dis- 
crete areas of specialization. 
The time available to accom- 
plish objectives is getting 
shorter and shorter, with the 
objectives themselves grow- 
ing more and more multi- 
faceted. These treads man- 


date that the manager be a 
□etworicer, rather than a com- 
mander, a person construct- 
ing and operating teams 
comprised of specialists out- 
fitted with a large degree of 
individual responsibility and 
decision-making power. 

“Doing such requires, ob- 
viously, the ability to get 
along with people and a feel- 
ing for interpersonal relation- 
ships, in addition to a 
manager's classical profi- 
ciencies,” Mr. Braunsburger 
concludes. 

A working knowledge of 
advanced information and 
communication technologies 
(1CT) is also essential. 

“A manager should be in 
the position to know what 
these systems are capable of 
and how to make them work 
for him or her. We call such 
people, who are able to 
straddle the frontier between 
business proper and informa- 
tion technologies, ’boundary 
spanners’," says Leendert 
van Bacfaaven, chief operat- 
ing officer of the Nether- 
lands-based Baan Institute. 

I nte [-cultural sensibilities 
Says Waldemar KJeinert, 
manager of central human re- 
sources planning and co- 
ordination at Adam Opel 
AG, the Europe-based sub- 
sidiary of GM: “Comprised 
in the idea of social effi- 
ciency is also a sense for 
political realities prevailing 
in the manager's area of op- 
eration. and for foe complex- 
ity of customer and personnel 
behavior.” 

Fafko Leonhardt, 

Lufthansa's head of career 
opportunities, recruitment 
and development, puts it this 
way: “Social intelligence is 
an absolute prerequisite to 
working at Lufthansa, a com- 


• -r.'-v: in 



Banking on the Euro 

Economic and monetary union will create jobs in the financial sector. 


FlNDfflQ THE RIGHT BALANCE BETWEEN SOCIAL AND ECONOMIC EFFICIENCY. 


pany whose daily metier is, 
after all, serving a huge di- 
versity of customers. And 
we've found foe key to social 
intelligence to be open- 
mindedness, plain and 
simple." 

International careers 
The preference for socially 
intelligent managers is also 
being stoked by foe “external 
internationalizing of many 
large corporations and its in- 
ternal consequences.” says 
Ms. Wehner. 

“It seems to be a very clear 
correlation: The more 
companies do outside their 
national markets, the earlier 
they strive to impart inter- 
cultural sensibilities to their 
managers," she adds. 

An internal international- 


ization process is also being 
undertaken by companies ac- 
tive on a global scale. 

“In the past, most inter- 
national careers normally 
began at foe national level: 
you got a job in your country 
and then waited to see what 
opportunities to go abroad 
would turn up. Today, we at 
Opel are taking a different 
approach, one in which in- 
ternationalism is built into 
our new personnel's careers 
from foe very beginning,” 
Mr. KJeinert says. 

Recming strategies 
One example of how Opel 
has achieved this is provided 
by its European brand team, 
which consciously decided 
to have a broad spread of 
nationalities (nearly 20 at 


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latest count) and a cross-cul- 
tural focus. 

How do companies eval- 
uate whether or not a busi- 
ness school graduate, other- 
wise highly qualified, is also 
socially intelligent? 

“Good grades are essen- 
tial, as they detail the will- 
ingness to work hard, and 
that’s also a precondition for 
social intelligence, which is 
often about working your 
way into foreign cultures and 
new operating situations,” 
says Ms. Wehner. “Plus a lot 
emerges through face-to-face 
contact in the interviewing 
phase.” 

Says Mr. Braunsburger: 
“No applicant comes with- 
out having already compiled 
a written record — term pa- 
pers, theses and the like. 
These make for instructive 
reading, but perhaps the best 
way to get to know applic- 
ants is to see them in op- 
eration tn daily business life, 
something we achieve 
through our internship pro- 
gram.” 

Terry Swartzberg 


E uropean monetary un- 
ion and the single cur- 
rency are bound to 
bring many changes to fi- 
nancial services such as 
ha nking , insurance and se- 
curities trading. As a result, 
the job outlook for managers 
in these sectors will also be 
significantly affected. 

Some traditional financial 
activities, such as foreign ex- 
change (forex) dealing, will 
become less impor t ant . Oth- 
ers, including prospects for 
securities analysts, look set to 
grow. In the short term, fi- 
nancial sector demand for in- 
formation technology (IT) 
specialists to handle the tran- 
sition to foe single currency is 
already increasing. 

Demand for specialists 
“Beginning in 1999, there 
will be no further need for 
currency exchange or 
hedging activities between 
euro zone member states,” 
says Jean-Frangois Colin, 
deputy director of the Bank 
National de Paris's domestic 
branch network with special 
responsibilities for handling 
euro-related questions. 

“On foe other hand, there 
is every chance that foe euro 
will become a major inter- 
national currency with high 
visibility on international 
markets, and this will 
provide new activities for 
dealers,” he adds. “Jobs will 
also be affected in areas such 
as securities trading. Since 
foe exchange risk will dis- 
appear, it will become much 
easier to place equity invest- 
ments in different countries 
within the euro area.” 

This will lead to an open- 
ing up of foe securities in- 
vestments markets and in- 
creasing demand for 
specialists like securities 
analysts and traders. 

Removing constraints 
“Asset management in 
France is conducted almost 
entirely by French institu- 
tions, with a substantial con- 
centration on franc-denom- 
inated instruments,” 

explains Bernard Niyollet, ■ 
partner with Ernst & Young 
in Paris. 

“The establishment of a 
larger zone with a common 
currency will free managers 
from these constraints, and 


by the same token it will also 
open up domestic asset man- 
agement markets to compe- 
tition from major global 
players. Overall, this is likely 
to lead to foe creation of new 
jobs in this sector,” he adds. 

Geoffrey Wood, professor 
of finance at foe City Uni- 
versity Busines School in 
London, believes that the ini- 
tial impact of the changeover 
to foe euro — including im- 
plications for jobs — may be 
less dramatic than many an- 
ticipate. 

“The effect orv forex activ- 
ities, for instance, is likely to 
be relatively small," Mr. 
Wood says. “This is because, 
with foe exception of the 
former Communist bloc, 
continental Europe has one 
of foe lowest growth rates in 
foe world, caused in part by 
continuing over-regulation 
and rigidities hi labor mar- 
kets. Accordingly, there is re- 
latively less trade in foe cur- 
rencies of continental Europe 
and more in currencies of 
other regions of foe world." 

Experience required 
According to James Hervey 
Bathurst, managing director 
of foe executive search firm 
NBS in London, British 
banks are not yet looking for 
employees with specific 
knowledge of euro-related 
issues. 

“However, there is no 
doubt that this kind of ex- 
perience will be needed in 
due course. Requirements 
are likely to extend from IT 
programmers at one end of 
the scale to financial 
strategists at the other.” Mr. 
Bathurst says. 

“Whatever happens with 
the euro, 1 am confident that 
London will maintain its role 
as the leading European fi- 
nancial center, and that ac- 
cordingly jobs in this sector 
will not be lost to other Euro- 
pean capitals.” 

In support of his view, he 
points to foe strength of the 
London markets and the 
presence : of major interna- 
tional players. 

“It is true that salaries for 
some jobs here now rival 
those in New York, but social 
charges are much lower than 
they are in other European 
countries,” Mr. Bathurst 
adds. 


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for Product Development, contracting and management of 50 person staff contributing 
to $250,000,000 company. 

All interested candidates should forward their CVs-to our GCT Munch Office: 

Grand Cirde Travel, Code: SKVP, Rosenkavalierplatz 12, 

81925 Munich Germany 

Tel: +49-89-922-0930; Fax: +49-89-922-093-23/24 


jean-francois Dupont, 
manager at Emst& Young in 
Paris, emphasizes foe rcper- * 
elusions for cash manage- 
ment “This activity requires 
continuing substantial in- 
vestment in technology and 
production capacity. The 
widening of domestic mar- 
kets resulting from foe in- 
stitution of the single cur- 
rency will encourage major jA 
international players such as • 
Citibank, Chase. ABN- 
Amro and Deutsche Bank to 
play an cver-tnorc dominant 
role in fots sector,” Mr. 
Dupont says. 

“Smaller banks will in- 
creasingly be restricted to us- 
ing the major players’ 
products as a way to service ^ 
their clients. Overall, this - v 
process should lead to a; ' 
greater concentration of job ‘ " 
opportunities. A similar de- 
velopment is also likely to 
take place in securities cus- 
tody services,” Mr. Dupont 
concludes. „ 

New distribution channels - 
To a lesser extent the euro- ! 
will also affect jobs in retail ' 
banking. ; 

“The development of new 
distribution channels such as~ 
telephone banking and foe 
Internet — which Is already 
under way — will gain for- 
th er impetus from the intro-. -■ 
duction of EMU." says- 
Miguel dc Fontcnay, man- 
aging partner with Ernst & 
Young in Paris. “Competi- 
tion from new non-bank . 
entrants will increase, and' 
traditional banks will find t 
themselves under ever great- 
er pressure to reduce branch . jj 
costs and make their products 
more attractive." 

However, the fact that the 
same currency will apply 
throughout the euro zone 
does not mean that one ho- . 
mogenous banking market 
will be immediately treated 
throughout that area. 

“Differences will remain 
on crucial matters such as. 
legal and regulatory struc- 
tures, payment instruments 
and settlement procedures,” , 
says Mr. Colin. “Also, many 
retail customers will still 
want a local branch where 
drey can have face-to-face . 
discussions." 

Introduction of the euro. ' . 
will also lead to the creation - 
of a snail number of new 
jobs in central banking. This 
applies in particular to foe A 
Frankfurt-based European ft 
Central Bank (ECB), which 
will be responsible for man- 
aging European monetary 
policy when EMU enters into 
force. 

The European Monetary 
Institute (EMI) — which will • 
be converted into the ECB 
when the euro is introduced 
— currently employs some . 
330 people. . . 

Staff numbers are set to 
rise to around 500 by the end 
of 1998, with recruits being 
obtained both from member 
states’ central banks and, 
through press advertising in 
journals. 

Posts on offer include stat- 
isticians, monetary policy - 
and risk management ex- 
perts, and back office and 
general management staff. 

Michael Rowe 



Bloomberg 


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INTERNATIONAL HERALD TRIBUNE, THURSDAY, DECEMBER U, 1997 


PAGE 21 ; 


SPONSORED' SECT 


CAREERS IN EUROPE: Choices & Challenges 



if 


Expat execs: fast track or slow trek? 


Expatriate Executives: Starting 
Younger and Leaner Every Day 

The profile of the expat manager is evolving as multinationals cut costs and change priorities. 


T he company says 
you're needed in this 
or that country, and 
here's the package. The man- 
ager usually doesn’t have 
much choice. If you want to 
climb the company ladder, 
you don't refuse postings 
Companies nor- 
you, but 
ambitious 
is especially 
{ true of big multinationals. 

An overseas posting can 
sound ideal: a prestigious se- 
nior position, with paid hous- 
ing. car. schools and maid 
service. The international ex- 
perience looks good on your 
resume. But some issues can 
spell trouble for companies 
and overseas employees. The 
traditional expatriate pack-, 
age is changfmH^ tompanies ' 
arc looking for new ways 
around old problems. 

Be prepared 

All relocation jobs are not 
equal. The same position can 
have a different status ac- 
cording to the country you’re 
in. This can be reflected in 
Vr»»ur salary, holidays or the 
'overall price your company 
is willing to spend on you. 

Before you go. you have to 
get ready. Preparation is cru- 
cial. and not always easy — 
cither from the company or 
fte personal point of view. 
Though companies need 
transferees who know the lo- 
cal culture and environment, 
observers say they often 
come without this know- 
ledge. This doesn't do won- 
ders for their business. 

Generally, managers mov- 
ing to one Western Europe 
{‘country from another (or 
itrom die United Stales) ar- 
rive less out of sync than 
those sent to the Middle East 
or Asia. In Eastern Europe, 
tiie situation is changing so 
rapidly that training must be 
updated regularly. Prepara- 
tion can include visits, brief- 
ings and ‘'shadowing" your 
predecessor. 


Famil> questions 
Another issue is the expat 
spouse. The traditional ex- 
patriate population is senior 
management For the spouse, 
who is more often the wile, 
this; may mean a first-time 
venture living overseas. 

•’Such a change can be 
tough for someone who has 
lived 30 years in one culture 
j and>'uddenly tries to make a 
new life abroad, without lan- 
guage or social contacts," 
says Sharon Mac Bcath. di- 
rector of EMDS Consulting, 
a Paris recruitment firm. 

Tilts is why many postings 
tail. A 198ft study of 300 
companies found that 50 per- 
cent brought families home 
early- Unwillingness or in- 
ability 1 of spouses to adapt to 
the foreign environment was 
the reason. Spouses had dif- 
ficulty developing a “mean- 
ingful portable life." 

These thorns prompt 
companies to use occupa- 
tional psychologists to 
groom their people lor work 
Svccvas- Counselors also 
, shepherd rclocatees through 
| repatriation problems when 
* they return. , 

Thoutih many come home 

with more experience, which 

helps their careers, others 


need help coping with loss of 
benefits, affluent lifestyles or 
big paychecks — which are 
often trimmed by as much as 
20 percent They must also 
readjust to partners or fam- 
ilies, and accept seeing col- 
leagues promoted while they 
have been away. 

Starting young 
To thwart these traditional 
problems, companies are 
now turning to a younger 
population. In what seems a 


Danone's new hires are 
immediately sent abroad for 
their first jobs. “They don't 
really have expatriate 
status," says spokesperson 
Isabelle Nguyhen. This 
means they get a normal sal- 
ary, but no benefits (housing, 
schooling and maid service) 
— though the firm will 
sometimes chip in a little ex- 
tra money in high-rent coun- 
tries like Italy. 

“It's mainly to integrate 
our people better into the 


SomocnmpamesarotooMugto 
younger managers, who have fewer 
constraints such as famBes or 
mort ga ges. 

They are eager for the opportnmty and 
cons i der aB of Europe as thekr 
employment market. 


perfect fit between compa- 
nies and candidates, some 
businesses are starting their 
fledgling managers on over- 
seas projects, giving up-and- 
comers geographic mobility 
early on. Younger managers 
are more flexible and have 
fewer constraints such as 
families or mortgages. They 
arc eager for the opportunity 
and make up a group that 
considers all of Europe as its 
employment market. 


countoy where they're going, 
so they can live the full na- 
tional experience,” Ms. 
Nguyhen says. 

Small packages 
No benefits doesn't mean no 
advantages, however. These 
managers return with inter- 
national exposure, flexibility 
and open-mindedness early 
in their careers — all price- 
less commodities in today's 
job market, and ones that 


global companies can put to 
use. 

This new type of reloca- 
tion is trimming the high cost 
of traditional expat packages. 
It is also changing die face of 
the expatriate community. 
- The career male with a wife 
who dutifully follows is giv- 
ing way to a new breed. 

Assignments that move 
whole families are dwind- 
ling. Female expats, though 
less numerous than their 
male counterparts, are on the 
increase as couples take jobs 
that put them in different cit- 
ies or even countries. No 
studies have been conducted 
yet on what effect this phe- 
nomenon has on the children 
involved. 

;New skills 
It is clear that of all the skills 
needed by managers in the 
21st century, languages and 
the ability to work in dif- 
ferent cultures win be key. 
Business schools have heard 
the call. 

One example is the Uni- 
versity of Bath, which es- 
tablished in 1988 an inter- 
national management and 
modem languages degree to 
better prepare future exec- 
utives. Programs in French 
and German allow students 
to study management in the 
foreign language. 

Josbua Jampol 


0 Lufthansa Cargo 0 Lufthansa Systems 


-LSC UJUinnUmoi 


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-more than 

just flying 


Ready for the future ._ 

Lufthansa accepted the business difficu- 
lties of the recent years as a chaffer ge. 
Our recovery program and our privatiza- 
tion in 1995 were successful. We have 
developed from a national carrier to a 
global service group which is prepared 
to compete in highly competitive markets. 
As a pat of our recovery program several 
divisions were separated to form inde- 
pendent legal entities which are experts 
in their respective business. This ensures- 
that all parts of the Lufthansa Group are 
fuDy customer orientated and directed 
towards boosting competitiveness and 
productivity. 

... but we keep moving ore 

Our strategic goal is to enhance auras)©-- 
as a global player in a global aliiancj£' ;/y 
network. However, these alliances wfift' 
other international airlines are only the 
beginning. We will become truly inter- 
national by having more multi -cultural 
management teams. 

Global spirit is what we need: 

High academic performance is thekey 
to membership, Outstanding interperso- 



nal sWfls and.an excellent service orien- 
tation are .the key for leadership. If you 
are looking for a chatepge then Lufthansa 
is the right place tor you.. 

Join our team! 

During your studies:, study & more... 
We offer internships which at feast have 
a deration of two months. This gives you 
the chance to enhance your theoretical 
knowledge with practical experience, 
which is a valuable asset for your future. 

AntfafterwanJs: PwjTtiam; ; 

programfer -tife very best 
ft month period 
ycfu.vwttifd have a number of demanding 
projects within different roles and bu£*. 

' cess units, which will then prepare yeftr 
■for your future assignments- 

In short'- '■■■'■■: i : v' 

Progress by Projects for Professionals. 

Last but not least: interested SiUdenls or 
young professionals who are Interested 
must speak English and Gentian very 
well. 

Lufthansa.-, . 

t&re&f-Opfidrtunities and Recruitment 
fjvTpu/n 

D-6Q546 Frankfurt 
phone: ++49(0)89 696 5060,-8702 
fax: ++49(0)69 696 5059 

e-mail: Markus.Ruh@dlh.de 
http^/www.Lufthansa-Com 

Lufthansa 


For the Right Candidates, 

Foreign Companies Offer Great Jobs 

Non-European multinationals are a growing presence in the European employment market.- 


A s the move toward a stronger 
European Union continues, ma- 
jor companies from countries 
outside Europe such as file United 
States and Japan have been boosting 
their presence in the EU. 

The rapidly growing management 
needs of many of these corporations can 
provide able and ambitious European 
MBA graduates with a ladder to a suc- 
cessful international career. 

Job competition is fierce, and most 
large international corporations target 
their recruitment efforts- on a carefully 
chosen selection of top European 
schools. 

Career progression patterns .follow- 
ing recruitment differ. U.S.-based busi- 
nesses tend to emphasize international 
mobility, which offers the opportunity 
for managers recruited anywhere in the 
world to work their way up to senior 
posts at the head office. 

Japanese companies, on the other 
hand, often like to recruit people with 
strong attachments to the local com- 
munity. 

Move op or move out 
The multinational consultancy firm 
AT. Kearney, headquartered in the 
United States, recruits around 400 to 
500 MBAs a year, including some 200 
in Europe. It employs around 2,500 
consultants in all, and operates 63 of- 
fices in 32 countries. 

“All our consultants, including vice 
presidents at top head-office level, are 
drawn from the widest possible mixture 
of nationalities and cultures,” says 
Konstantinos Apostoulatos, principal at 
AT. Kearney in Brussels. 

“People we recruit anywhere in the . 
world are expected to rise to high levels 
within the firm if they pursue a long 
term career with us,” he adds. 

“We have a general principle in the 
firm that people cannot stand still, and 
they have to move either up or ouL 
Generally speaking, around three or 
four years is tiie maximum period be- 
tween steps in our consultants’ career 
progression,” says Mr. Apostoulatos. 

Generalist approach 
Michel Van den Mooter is director of 
human resources for the European Re- 
cruitment Taskforce of tiie U.S.-based 
pharmaceuticals giant Eli Lilly. 


* “We are looking for dynamic, self-. 
motivated people with a generalist ap- 
proach to management, who will have a 
real impact on tiie company,” he says. 

European schools currently favored 
by Eli Lilly incJude France’s INSEAD,. 
the Rotterdam School of Management, 
The London Business School, Spain’s 
fESE, Switzerland’s IMD and Italy’s 
SDA Bocconi. 

However, the company is also ready 
to consider able graduates from other 

ItoTintenial ranking of schools under 
constant review. Eli Lilly’s president for 
Europe, Bert van den Beigh, was him- 
self initially appointed to tiie company 
as a young Rotterdam School of Man- 
agement MBA graduate. 


“We are lookktg for dynamic, 
BotMtHmvmma peopto wnn* 
rto 

whowttt have a 
1 hnpact on the com po ny’ 


“When we recruit MBAs, we con- 
sider their career development with us 
initially in the context of a six- to eight- 
year time-frame. MBA recruits are as- 
signed a variety of missions during this 
period, and they maybe moved between 
different countries,” Mr. Vanden Moot- 
er says. ’* 

Local ties . . .. 

The Japanese multinational Mitsubishi 
employs some 100,000 people world- 
wide. The company .strives to coun- 
terbalance this monolithic bulk at the 
global level by encouraging a neigh- 
borhood feeling in each of its local 
operations. 

Employing and keeping local per- 
sonnel, including managers, is a key 
aspect of this strategy. 

For example, Mitsubishi operates a 
telecoms assembly factory and a cord- 
less telephony research center near the 
city of Rennes in France’s Brittany re- 
gion. 

One of tiie company’s reasons for 
choosing this location was the fact that 
there were good opportunities for re- 
cruiting skilled scientific andmanageri- 


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al staff locally, including the existence 
of. a .strong mathematics faculty at . 
Rennes University. 

Legal eagles . 

Laurence Simmons, an international le- 
gal recruitment firm, reports that tiie , 
demand for in-house legal advice in 
Europe has increased dramatically in 
the past two years. 

Expanding U.S. multinationals that 
traditionally staffed their European of- 
fices with U.S. -qualified attorneys are 
now hiring local European lawyers who 
offer numerous cultural and linguistic 
advantages. 

The firm says it is inundated with 
requests from UJS. multinationals seek- 
ing to hire, in particular, French, Ger- 
man, Belgian, Dutch and Italian law- 
yers. If these lawyers have worked in a 
U.K. or U.S. firm, or have had some 
exposure to Common Law, their mar- 
ketability — and salary potential — is 
greatly enhanced. 

Standard criteria 

A growing trend is for major mul- 
tinationals to apply the same selection 
and promotion criteria in all their op- 
erations across the world. 

Citibank, for instance, takes on about 
30 to 40 European and U.S. MBAs each 
year. 

“Nowadays, the bank applies stan- 
' dard criteria at its assessment centers for 
both die United States and Europe,” 
says Hans Staudinger, training director 
for Europe and global management as- 
sociates director with Citibank in Brus- 
sels. 

“These include an MBA awarded by 
a top school tend previous career ex- 
perience in key areas such as marketing, 
retailing or finance,” Mr. Staudinger 
adds. 

.The growth in global management 
appointments and international busi- 
ness in Europe also means that language 
abilities 3re becoming an ever more 
important factor in career progression. 

Consultancy firms often require re- 
cruits to master at least three or four 
languages. The rise in multilingual and 
multicultural events such as the Ex- 
polangues exhibition — staged annu- 
ally in Paris for the past 16 years — also 
bears witness to this trend. 

M.R. 




R 


!•— 

j- 


N' 

I . 
r ' 
h ' 

t: ••• 





PACE 22 


EVTERNAIIONAL HERALD TRIBUNE, THURSDAY, DECEMBER 11, 1997 


SPONSORED SECTION 


SPONSORED SECTION 


CAREERS IN EUROPE: Choices & Challenges 


A Foot in the Door 

Recruiters target top-flight business schools and flexible managers. 


i ::: 


F or some companies, the world is 
divided into the top candidate 
pool, which they say makes up 
around 20 percent, and the rest of the 
world, die otter 80 percent 
Good people come from good 
schools, which is why most recruiters 
have an A-Hst of management col- 
leges where they hunt for job can* 
didates from year to year. 

“It would take me a lot of energy to 
find anyone from the 80 percent,” 
admits one recruiter from a major in- 
vestment bank. 

School visits 

Most companies get piles of unso- 
licited CVs from recent MBA gradu- 
ates, so for some there's no need to 
look any further. 

Others hunt for new talent in 
Europe’s leading business schools. 

International consultancy firms like 
Arthur D. Little and AT. Kearney, and 
companies like Ford go every year to 
Cranfield School of Management, one 
of Britain's top business schools. 

At Cranfield, as at other blue-ribbon 
schools in Europe, the process follows 
an established pattern. 

“It's highly ritualized,” notes Phil- 
ippe Alloing, Little's human resources 
director. 

The recruiter takes a room, and 
students come for a 30- to 45-minute 
presentation, followed by an informal 
Q-and-A session. Sometimes candi- 
dates will be invited for drinks or 
dinner. Recruiters urge them to apply 
and “tell us why you’re interested in 
us — and why we should be interested 
in you.” 

Though the relationship between 
schools and recruiters is close, there 
are limits. Recruiters will not ask 
schools for grades, for example. Cran- 
field never divulges specific informa- 
tion on academic achievement 
"I’ve been here eight years and 
never given anybody's score,” affirms 
Wendy Hall, career development 
manager. 

The interview process 
Once the interested students have sent 
their applications in, recruiters screen 
them, then return to campus for a first 
series of interviews. 

There are differences in the ways 
companies and consultancies go about 
tiiis process. 

Companies usually send senior 


managers for foe .first interview, fol- 
lowed by human resources people for 
the next Sometimes MBA alumni 
take part, which can make things less 
traumatic for the interviewee. Con- 
sultancies have been known to bring 
MBAs to the bead office six or seven 
times and ask them to analyze cases. 

“We want to expose potential hires 
to more levels in our organization and 
to as many faces as possible,” Mr. 
Alloing says. “There’s no other way to 
select people except to have them be 
seen and accepted by as zn&ny people 
as you can. It’s a commitment-build- 
ing process.” 

What should you expect from an 
interview? Companies say: Be your- 
self, be honest and open for discus- 
sion. But you have to know where to 
position yourself. 

First step on the ladder - 
Notes Michel Van den Mooter, di- 
rector of human resources for Eli 
Lilly’s European Recruitment 
Taskforce, “Tiy and look at the future, 
not only at your first job. Remember 
your first position won’t be a road- 
block to climbing the ladder." 

Says Rotterdam School of Man- 
agement’s MBA director,' Kai Peters: 
“At first you're going to have to work 
in some functional post The true kiss 
of death for job interviewing is, T like 
strategy. I want to be a strategist”’ 

Honeywell Europe fishes almost 
exclusively from INSEAD in France. 

“Sometimes we go with specific 
jobs in mind; sometimes we want toj 
introduce new MBAs into our man-} 
agement team,” says Director of 
Communications Alessandro Profili. 

When the company wants to startup 
new businesses, it looks for entre- 
preneurship experience. But h also 
scans CVs forpeople who have served 
in major companies. 

“This means they’ve already been 
exposed to a major corporate culture 
and are at ease working in a consensus 
and team-building environment It 
means foe person isn’t a lone gun," 
Me Profili says. 

Scouting new talent 

Some firms don’t come on campus at 

all, but prefer to use headhunters. 

Disney Consumer Products, a sep- 
arate business dealing with licensing 
within foe giant American corpora- 
tion, is one of them. 



Your hrst job: finding just the right window of opportunity. 


“We prefer to use headhunters," 
says the division's human resource 
department “Only 10 percent or our 
hires come from universities or busi- 
ness colleges.' 1 

Companies also attend fairs and 
conferences to scout new talent Such 
events as foe European Management 
Conference, which will be held for the 
fourth time m Paris on April 15-17, 
give representatives from leading 
European businesses a chance to meet 
stud aits and get to know potential 
candidates. 

, Companies advise job seekers to be 
willing to change sectors and not to 
pursue a single direction throughout 
their entire working life. The future, 
they say, belongs to younger profes- 
sionals with different career experi- 
ences and to more flexible managers. 

Recruiting on-line 
The Internet has a role to play in the 
future of recruitment More and more 
big companies are creating linkups to 
gather spontaneous applications on- 
line. 

Most are in the United States, but 
Europe is also exploring this cyber- 
path. 


Though applying directly can be a 
good way in the door — you might just 
turn up at the right time — it’s still 
risky. 

Some software now lets applicants 
send CVs to scores of companies at 
once, inundating their Web sites with 
resumes — and not always with the 
right ones. They can be un targeted, 
uninteresting and good for little but 
creating administrative work. 


Companies have come up with a 
defensive response: application-filter- 
ing software that refuses to selectany- 
body over age 35. for example, or 
candidates without certain language 
skills. 

These programs will automatically 
send back foe unwanted CV to the 
applicant accompanied by a polite let- 
ter of refusal. 

JJ. 


New Jobs for Europe 


Continued from page 19 

get a good education. The correlation 
between level of education and em- 
ployment rate is still strong. 

The Statistical Office of the Euro- 
pean Communities reports that in 
1996, foe EU rate of unemployment 
was 5.9 percent for those with a higher 
education. 8.6 percent for those with a 
senior secondary education and 12.5 
percent for those without a senior sec- 
ondary education. 

The average rate of unemployment 


for holders of a university degree in 
Germany is currently about 2.1 per- 
cent. compared to the country's overall 
rate of 1 1 .8 percent, according to the 
Institute of the German Economy 
(J WD). The message is clear for Euro- 
pean job seekers: study, study, study 
and look for work in foe services sec- 
tor (which accounts for 65 percent of 
total employment in Europe). ‘ And 
some multimedia programming skills 
wouldn’t hurt 

Heidi Ellison & 
Terry Swartzberg 


Central and 
Eastern Europe: 

Seeking Local Talent 

Theera of theensis manager ^parachuting 1 * 
into Central and Eastern Europe (CEE) from 
. foe West and putting out one (ire after 
another is over. * ‘ 

The conditions under which tocallyownecP^ 
subsidiaries operate have normailtod ana 

stabilized over foe past few years. - 

Increasingly, the executives staffing 
these subsidiaries are CEE nationals who 
have received their business education at 
local business schools and their seasoning 
at other western companies in the region. 

That's the concensus of a number of top 
executives at several major Western 
companies doing business in Central and 
Eastern Europe. 

. This nutshell description does, however. 

- come with serious qualifications. 

International aD-rounders 

"Managers In the region are still required to 
be all-rounders, ones capable of handling a ■ 
range of responsibilities generally much 
wider than those facing their counterparts In 
Western Europe." says Regine Petzsch. 
spokesperson for Roland Berger, the in- 
ternational management consultancy. 

"Our CEE managers are required, to a 
great extent, to also be entrepreneurs," 
adds Falko Leonhardt. head of career op- 
portunities, recruitment and development, 
at Deutsche Lufthansa AG- 

The CEO of the .local operation is still 
nearly always an “international." a person 
who has spent the greater part of his or her,, 
career in the west and/or with the parent 
company on a variety of postings. „. 

"These internationals are very oftei> 
come-home expatriates." Mr.' Leonhardd 
says, } 

Supply and demand 

The supply of locally trained managers isf 
growing, and the demand even more so. 

"A highly qualified young executive car 
basically write his or her own ticket here. "7 
says a Budapest-based Western manager."' 

As foe CEE region grows, its individual' 
countries show an increasing diversity of" 
political and corporate culture. 

"The COMECON countries used to bef 
largely homogenous. There’s a great deal 1 ' 
more variety in how business is done in^ 
them now." says Waldemar Kleinert. man-’ 
ager of central human resources planning 
and coordination at Adam Opel AG, the 
Europe-based subsidiary of GM. ■; 

TS.*' 



-8! HI! 


J \ ■ ■ 

You’D learn a lot at Daimler-Benz. Like bow to pack a suitcase. 



A career with Daimler-Benz 
can be a moving experience. 


* ►If you think you have to. 
live in Stuttgart to get a job at 
Daimler-Benz, you haven't met 
Senor S. As a Mexican, his first 
language is Spanish, not German. 
But after graduating in Engineer- 
ing, his first task as a Daimler 
employee was to pack his bags 
and join the graduate intake in 
Mannheim. 

► Hardly a year later, lie 
was off to Mercedes-Benz North 
America- Three years after that. It 
was destination Spain. And now? 


He's based ; in Stuttgart But he 
knows better than to put the suit- 
cases away in the attic just yet. 

► You could - soon .. be 
following his example, proving 
that at Daimler-Benz,, inter- 
nationalisation is rather , more .' 
than just a fancy phrase. It’s 
something that oar employees 
demonstrate every day. And that 
could mean a great deal in your 
career development Because to 
Daimler-Benz, It's not where yon 
come from that counts. It’s - the 


things yon bring with you:, your 
expertise, your enthusiasm and 
yoiur personality: . : - - _ . ; ’ V • 

► So why not follow Senor 
S/s example and write us a letter?' 
We’d be delighted to answer .'it 
Even if you’re not fram Statfgdrt. 

► Daimler-Benz AG,- Per- 
sonaimarfceting, "Suitcase” T 100, 

' D-70546 Stuttgart ^ 


DaimlerBenz 


aktiengesellschaft 


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US multinational requires a 5+ years qualified attorney with 
commercial experience gained in Europe. Ref: 114 

► International Counsel PARIS 

Respected multinational seeks a French speaking 2 to 4 year, 
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► Sole Regional Counsel WARSAW 

Household name US corporation seeks Polish qualified lawyer 
with 10+ years corporate experience. Ref 1075 

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US IT multinational requires a 30 to 35 year old German 
commercial lawyer to assume an international role. Rtf: 2922 

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■C2+ bn turnover multinational requires a 2 to 4 year qualified 
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Outstanding opportunity for Italian in-house . lawyer with 
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Well known multinational seeks a 4 to 6 year qualified Israeli 
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>> Intellectual Property NEAR ZURICH 

Sports company seeks 4 to 8 year experienced UK/US lawyer 
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Global law firm requires a general finance lawyer with 3 to 4 
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i i ■ 


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INTERNATIONAL HERALD TRIBUNE, THURSDAY DECEMBER 11, 1997 


PAGE 23 


N 


r *«l ANr, 


CAR EERS IN EUROPE: Choices & Challenges 


SPONSORED SECTION 


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Where Do Top Managers Come From? 

Promotion via internal executive development programs is taking priority over headhunting. 


Job candidates and future employers take a long, hard look before making any decisions. 

^To Be the Best: Making the Grade 

*: Business school graduates rate Europe’s top corporations — and vice versa. 


E 


DWIDE 


*» A I 


very year, Universura 
international's Euro- 
pean Graduate Survey 
;>and other such polls ask 
s European business students 
*-;to name which companies 
they would like to work for. 
■; And every year, the same 
management consultancies. 
I automobile manufacturers 
| and other multinationals top 
die list 

* When students are asked 
i what attracts them to poten- 
; rial employees, the most fre- 
;qucnt responses are “fiw- 
dom of operation" and 
■l “good career reference.” 

; Prestige, job security and 
high pay are other important 
■ factors, but are not the only 
reasons the students select 
"certain companies. 

- “The ftefthat we produce 
cars and 

ithat 'we’re obviously a com- 
-^pany on the move are def- 
I^mitely behind our high rank- 
says Martina Wehner, 
•^recruitment manager at 
. •'jAudi. 

Ijt “But today’s graduates 
iXfook hard and think ahead. 
vlThey know their success in 
‘ ^handling their first position 
Hjwill determine how success- 
ful their entire career will be. 

• **And there's no surer way to 
r lend up a failure than to start 

► . ■ * ■ _ e.n _r 


harmful to their careers,” she 
adds. 

While the students are 
eyeballing theirpotentiaJ em- 
ployees, tile latter are taking 
searching looks at them. 

European companies 
don’t simply rely on the 
provenance of the applicant’s 
MBA or other degree in es- 
tablishing his or her desirab- 
ility. 

What the companies want 
Rather, the firms spend a 


PrmsBga, Job security 
md high psy mo not 
ttmoafymnsonm 
buttons* students 
iXirtfwtih 


great deal of corporate time 
and energy in reaching out to 
and screening a wide field of 
applicants. They conduct in- 
depth evaluations of the can- 
didates who pass the initial 
selection process and assure 


the American approach is a 
form of social Darwinism, in 
which a company hues a 
large number of young ex- 
ecutives and then waits for 
the dust to clear. The ones 
surviving this natural selec- 
tion are presumably the best 
of the lot," says Clemens 
Braunsburger, head of man- 
agement development at 
BMW. 

“At BMW, we find it 
much less costly in the long 
run to spend a great deal of 
tone and money up front to 
make sure that, say, 18 of the 
20 people whom we hire are 
productive parts of our com- 
pany from the outset and that 
they stay with us for a long 
period of time.” 

Martina Wehner finds nat- 
ural selection “to be out of 
sync with today’s flat hier- 
archies, which give young 
executives a wide latitude of 
operation upon their entering 
the company. The opportu- 
nity to damage the company 
through insufficient achieve- 
ment or a mistaken approach 
is also greater. That's why 
today’s recruiting is focused 
on finding a few high-per- 
forming people.” 

Living in the real world 
As the recruiting specialists 


’♦your career in a job full of the few successful applicants point our, a brilliant academ- 
iSnproductivc constraints.” r. a»- 



* ^Long-term goals 
>~FaIko Leonhard t, head ofca- 
J>tecr opportunities, recruit- 
jifoent and development at 

* ^Deutsche Lufthansa AG. en- 

dorses the “long, hard 
.Wook.” 

)*: “The attraction of 
■ 3 Lufthansa as a place of work 
.fciiefinitely has to do with our 
^product and trademark," he 
J *Says. “But these can be seen 
Cat the first glance. If. upon 

* 3 taking a second glance, 
■ 7 Europe's high performers did 
; -hot see that we are offering 

* exciting and challenging 
jobs, their enthusiasm for and 
interest in the company 
would quickly wane.” 

Says Waldemar Kleinert. 
manager of central human re- 
sources planning and co- 
ordination at Adam Opel 
AG. the Europe-based sub- 
sidiary of GM: “This ‘free- 
dom of operation’ clearly 
pertains to the opportunities 
of working around in many 
different countries. That's 
why ‘global players’ such as 
Opel arc in such strong de- 
mand by job-seekers.” 

Good exposure 
Regina Petzsch, spokesper- 
son for Roland Berger & 
Partner, the international 
management consultancy, 
also secs career opportunities 
as being the prime source of 
applicant interest 

“What excites business 
students about working for 
Roland Berger is the di- 
versity of experience and ex- 
pertisc invariably acquired 
by management consultants 
within a very short time. 
Mi Petzsch says. 

■*lt is also in the nature of 
x»ir business that young man- 
agement consultants work 
with senior executives —^ as 
well as a wide range of other 
echelons * — at our client 
companies. Like the acquir- 
ing of a breadth of expertise, 
this exposure is definitely not 


of getting off to a good start 
in their new corporate 
home. 

It all goes by the rather 
unwieldy name of “person- 
nel marketing,” a very se- 
rious business. This Euro- 
pean system differs from the 
hiring policies of most U.S. 
companies. 

“The guiding idea behind 


ic career and attractive de- 
meanor do not suffice to 
qualify an applicant as “high 
performing.” 

“We’ve had a number of 
applicants who bad 
everything, including great 
grades and a number of in- 
teresting internships. But 
they also seemed arrogant 
and non-communicative, and 


these are counterproductive 
traits in our business," says 
Ms. Petzsch. 

“I prefer to recruit ‘right- 
performing’ rather than 
‘high-performing’ people. 
The difference is .between 
young managers capable of 
deploying their talents and 
skills in actual operating en- 
vironments and with other 
people, and those whose 
achievements have been ac- 
complished in the splendid 
isolation of an ivory tower,*' 
says Rainer Schulze, head of 
personnel marketing at 
BMW. 

The existing personnel 
evaluation tools — including 
foce-to-face interviews, 
standardized teste dispensed 
at grading “assessment cen- 
ters” — do not provide this 
type of real-world environ- 
ment 

“They do have their uses, 
providing that the interviews 
are carried out and the teste 
are assessed by skilled per- 
sonnel. We also stage three- 
day workshops in which po- 
tential staff members are ex- 
pected to solve real-life prob- 
lems,” Mr. Schulze adds. 

Attending these work- 
shops are young engineers 
who have either already start- 
ed their professional careers 
or have recently finished 
school. Working in teams, 
the participants solve prob- 
lems currently faced by 
BMW. 

“After three days of see- 
ing them work under time 
pressure and in close quar- 
ters, we’ve gotten to know a 
lot about the potential ap- 
plicants,” Mr. Schulze says. 

TS. 


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ur priority is to fill 
executive-level posi- 
tions with managers 
developed internally. Extern- 
al candidates are only con- 
sidered in exceptional cases. 
To find them, we use a select 
group of headhunters,” says 
Elke Ickenstein. spokesper- 
son for Bayer AG. 

This statement is a reflec- 
tion of the growing trend 
among many of Europe’s top 
companies. But is it a vote 
against headhunters? 

“No, it’s a vote for the 
personnel recruitment and 
executive development pro- 
grams built up by the compa- 
nies over the past decade,” 
says Regina Petzsch, spokes- 
person for Roland Berger & 
Partner, the Munich-based 
management consultancy. 

“Thanks to the extensive 
and rigorous recruitment 
process, the executive-track 
personnel entering compa- 
nies like ours nowadays has 
an exceptionally large range 
of aptitudes and qualifica- 
tions. This partially obviates 
the need to search outside the 
company, ’’ she adds. “These 
qualities and aptitudes are 
then systematically upgraded 
and nurtured throughout fee 
young executive's first years 
at the company.” 

Fulfilling special needs 
Nonetheless, according to 
Ms. Petzsch, this develop- 
ment “is not coming at fee 
expense of the headhunters.” 
She adds: “Many of them, 
including our own personnel 
recruitment subsidiary, are 
also reporting record levels 
of business." 

Under what circumstances 
does a company conduct an 
external executive search via 
a headhunting firm? 

One answer is provided by 
Waldemar Kleinert, head of 
personnel marketing at 
Adam Opel AG, the Europe- 
based subsidiary of General 
Motors. 

“We, too, have a wide 
range of executive develop- 
ment and enterprise-wide 
programs, and we too strive 
to fill senior positions intern- 
ally. And because we are part 
of the world’s largest man- 
ufacturing group, and one in- 
volved in everything from 
engines and electronics de- 
velopment to computer and 
financial services, the pool of 
in-house talent available to 
us is very large and very di- 
verse,” says Mr. Kleinert. 
“But we also often use 
headhunters to meet excep- 
tional needs.” 

Isn ’t that a contradiction in 
terras? 

“Not in fee slightest 
Throughout fee 1990s, the 
business world has been af- 
fected by one exceptional 
event after fee other, for in- 
stance the fell of fee Berlin 


Wall and fee subsequent 
opening up of the East Ger- 
man and Central and Eastern 
European markets, in which 
we now manufacture and dis- 
tribute on a large scale. This 
rapid buildup and fee need to 
find people wife local cul- 
tural skills mandated a major 
recruitment from outside.” 
Mr. Kleinert says. 

Good for business 
According to Rainer 
Schulze, head of personnel 
marketing at BMW, fee com- 


“This represented a waste 
of the great potential for 
management possessed by 
our young executives. It was 
also not a great spur to further 
achievement.” he adds. 

“The executive boani set 
up fee program and chal- 
lenged it to turn fee situation 
around — and a bit more. 
They set an 80/20 objective 
and gave us a decade to 
achieve it We did even better 
than that By 1 996. after only 
eight years of operation. 80 
percent of the senior-level 


Thomas Sattelberger, head 
of personnel recruitment and 
marketing at Deutsche 
Lufthansa AG. has an en- 
tirely different opinion. 

“An infusion of fresh 
blood is often necessary, and 
feat's because in-housc ex- 
ecutive development pro- 
grams continually require 
benchmarks against which 
they can measure them- 
selves. Managers recruited 
from outside serve that pur- 
pose nicely,” he says. “This 
is not to downplay fee im- 



pany’s heavy reliance on 
management development 
programs is partially dictated 
by fee bottom line. 

“It’s simply cheaper to in- 
stitute and carry them out 
than to engage fee services of 
a headhunter, whose fee is 
generally equal to four 
months' salary of fee newly 
recruited executive-track 
staff member. Although it’s 
hard to quantify it in marks 
and pfennigs, the prospect of 
rising to an executive pos- 
ition some day also obvi- 
ously enhances the young 
managers’ performance, ” he 
adds. 

Getting more out of their 
managers was one of fee sev- 
eral key reasons why MAN 
launched its full-scale pro- 
gram in 1987. 

“At the time, 70 percent of 
our senior level positions 
were being filled from out- 
side,” said Gunter Bicreye, 
head of executive develop- 
ment at fee Munich-based 
capital goods giant 


Cultivating the best. 

positions were being as- 
sumed by ‘graduates’ of our 
program,” he adds. 

MAN'S program relies on 
fee expertise of a special kind 
oftrainen the members of fee 
executive board and other top 
executives, who relate the 
details of their areas of re- 
sponsibility at week-long 
group seminars held on an 
annual basis and attended by 
the program's “students.” 
The dialogues ensuing from 
this face-to-face contact have 
created a “company whose 
executives know and under- 
stand what each other is do- 
ing, a company hence ‘trans- 
parent’ to itself,” says Mr. 
Biereye. 

Fresh blood 

And what about the need for 
“fresh blood” to invigorate 
corporate processes and 
thinking? 

“Definitely useful, but 
needed only in small doses 
and in certain areas,’" Mr. 
Biereye says. 


portance of ‘in-house‘ devel- 
opment 

“These managers have a 
freshness of vision and a base 
of experience very different 
from that of long-time com- 
pany executives. Both these 
traits are highly useful when 
implementing a major re- 
structuring of fee company or 
one of its major parts, or 
when instituting some other 
form of radical change," he 
adds. 

Mr. Sattelberger doesn’t 
necessarily endorse fee em- 
ploying of headhunters to 
find these change agents. 
“The world's air industry is a 
close-knit sector. We en- 
counter potential senior ex- 
ecutives at everything from 
trade fairs to professional as- 
sociations. Many sugges- 
tions as to future executives 
come from fee informal net- 
works existing among the 
heads of personnel or exec- 
utives holding related pos- 
itions ar major companies. ” 
T.S. 




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A SENSE OF KNOWING. 






PAGE 24 


I V WTES2 WWL fi* • L 

Sports 


THURSDAY. DECEMBER II, 



World Roundup 



Sheikh Mohammed Rashid 
Maktoum faults the finances. 


Horseman’s Threat 
To Leave Britain 

horse racing Sheikh Mo- 
hammed Rashid Maktoum of 
Dubai, the world's most powerful 
horse owner and breeder, has 
threatened to pull out of British 
racing unless die sport's finances 
are dramatically improved. 

The sheikh, who has 600 horses 
in training around the world, as- 
sailed the British government and 
bookmakers and complained that 
Rn gland had slumped below Maur- 
itius and Greece in prize money. 

If the sheikh and nis brothers pull 
out of British racing, the effect on 
the sport would be devastating. 
Hundreds of people from stud 
grooms to jockeys and trainers rely 
on the Maktoum family's largesse. 

Sheikh Mohammed complained 
that the British government took in 
tax six times the amount it returned 
to racing. (Reuters) 

Charlton Drops Defender 

soccer The English First Di- 
vision club Chariton said Wednes- 
day that it had dismissed the de- 
fender Jamie Stuan after he tested 
positive for cocaine and marijuana. 
He is the fifth Charlton player to 
fail a drug test ( Reuters ) 

Lay Off Refe, NFL Says 

football The National Foot- 
ball League has sent a memor- 
andum to its 30 team owners, head 
coaches and general managers re- 
questing that club personnel not 
badger or try to intimidate officials 
during games. The memo, signed 
by Paul Tagliabue, the league com- 
missioner, was sent on Nov. 26. It 
was apparently drafted in part in 
reaction to the Dallas owner, Jerry 
Jones, who stalked the sidelines 
and angrily complained to officials 
during the Washington Redskins' 
Nov. 16 game in Dallas. The Cow- 
boys won, 17-14. (WPJ 

Puckett to the Rescue? 

BASEBALL Kirby Puckett, the 
former Twins star, says he is will- 
ing to invest up to $ 1 0 million in the 
team if a deal can be worked out to 
keep it in Minnesota. “I’m not go- 
ing to North Carolina." Puckett 
said. The Twins owner, Carl Poh- 
lad, has an agreement to sell the 
team to a North Carolina business- 
man. Don Beaver. The possibility 
that Puckett might buy into the 
Twins as part of a new ownership 
group is important because it might 
make league owners reluctant to 
approve a Twins move. (AP) 


Inter’s Individuals Get the Job Done 

Milan Clubs Lyon Out of UEFA Cup With a 3-0 Home Victory 


By Peter Berlin 

International Herald Tribune 

MILAN — Inter Milan is making a 
habit of teasing young French teams in 
this year’s UEFA Cup. In the second 
round, the Italian League leader con- 
trived to lose by 2-1 at home to Olym- 
pique Lyonnais before winning, 3-1, in 
Lyon. In the third round. Inter lost 2-0 in 
Strasbourg, encouraging French hopes 
for an upset On Tuesday night, 
however. Liter again did just what it 
needed to, and won by 3-0 to advance on 
an aggregate score of 3-2. 

After the game, Patrick Proisy, the 
Strasbourg president pul a brave face 
on the defeat “They are the best team in 
the world,” he said. 

The curious thing is that Tuesday 
night’s match suggested that while Inter 
might have the most talented — certainly 
the most expensive — group of players, 
they do not always amount to a team. Six 
of Tuesday's starting eleven are in their 
fust season at the club, and it showed. 

In Lyon, Milan played with patience 
and discipline. On Tuesday, before 
46,000 of its own fans — who whistled 
unhappily every time Strasbourg kept 
the ball for more than 10 seconds — the 
attitude was different 

Before the game, Benoit Cauet, an 
Inter midfielder, said: “We need an 
early goal" 

That might explain the lack of at- 
tention Inter paid to defense in the first 
half. Its defenders frequently played 


and there by the skillful attacking team- 
work of Strasbourg. 

Three times a Strasbourg player was 
alone with the ball in the Inter penalty 
area. But Karim M’Ghoghi. twice, and 
Pascal Nouma, once, wasted those 
chances- 

“If only we’d taken our chances 
when it was 0-0,” said Olivier Dacouzt, 
a Strasbourg midfielder. 

At the other aid, Alexander Vencel, 
tiie Strasbourg goalie, made a string of 
spectacular saves, yet a tendency to the 
theatrical can be a sign of weakness in a 
keeper. He seemed always at full 
stretch, even for the weakly hit shots, 
and he never seemed able to catch the 
balL 

His habit of pawing and parrying 
presented Inter with a string of follow- 
up chances. In the thir teenth minute. 
Inter’s Youri DjorkaefF was in a harm- 
less position in the corner of the penalty 
area when Vencel lunged in, feet first. 
DjorkaefF leapt in the air. 

The resulting penalty was as much a ‘ 
punishment for Veocel's stupidity as for 
the fouL Ronaldo slapped his shot at die 
comer of the goal, but Vencel dived, 
scooped the ball onto the post and grate- 
fully grabbed the rebound. 

In tiie 27th minute, Ronaldo won a 
free kick near the penalty area. Nor- 
mally teams rehearse such positions. 
Here DjorkaefF, uncharacteristically 
short of ideas, simply poked the ball to 
Ronaldo, standing stock still a yard in 
front. The defense stood and watched 


like strangers. They were pulled herd- while the Brazilian took a couple of 


touches as he thought about what to 

do. 

Then, when he drove a low shot to- 
ward the corner of the goal, two mem- 
bers of the Strasbourg wall consider- 
ately jumped over die ball. Veocel's 
lunge was late and short. 

Early in the second half, Javier 
Zanetti blasted the ball straight at 
Veocel's head from fifteen meters. The 
keeper a g ain disdained a catch and in- 
stead slapped the ball into the comer of 
his net Then the aggregate score was 
level, and something odd happened. As 
the French tired. Into: started to pick off 
their short-range passes. 

But while the defense showed better 
teamwork, the attack * abandoned the 
concept altogether. Inter has bought a 
collection of stars, and that is how they 
began to play. When Zanetti or the 
summer signings Ronaldo, Diego 
Simeone or Francesco Moriero received 
the ball, they would mm and sprint at the 
defense, ignoring teammates. 

For a while, neither team seemed able 
to pass, and the game resembled play- 
ground kick and rush. 

Finally DjorkaefF, one man who nev- 
er loses his poise, headed the ball into 
the path of Simeone who flicked it clev- 
erly past two defenders before scoring 
with a low shot. 

Ronaldo now flies to Saudi Arabia to 
play for Brazil in an international tour- 
nament. Last Thursday, he starred for 
the Rest of the World against Europe in 
the exhibition game before the World 
Gup draw in Marseilles. It’s no wonder 



Inter’s Ronaldo, left, and Javier Zanetti congratulating Diego Simeone, 


be sometimes has trouble working out 
where his teammates are. 

At the a>re of every great club team is 
a group of men who have played to- 
gether for years, who know each other’s 
strengths and weaknesses as well as 
they know their own. In this age of high- 
priced jet-set mercenaries who switch 
clubs every couple of years, and im- 
patient owners who change the coach 
and half the team each summer, team- 
weak is increasingly elusive. Stras- 
bourg’s frequently superior team play 
allowed it to give Inter a scare. Maybe 
some of its members will end up at Inter 
□ext summer. 


Schalke ’s Title Defense Moves Into Quarterfinals 


IFC SCHALKE 04 
SPORTING BRAGA 

2 : O 

1- 0 »T Cli) 46 

2 - 0 euiocLKA>a»aa>« 2 .*ix 


— 5 ■ 



Reuters 

Schalke 04, the cup holders, scored 
two second-half goals to beat Braga by 
2-0 on Tuesday night in Gelsenkirchen, 
Germany, and reach the quarterfinals of 
the UEFA Cup. 

The referee, Manuel Diaz Vega, sent 
off Braga's Jose Nano in the 39th minute 
after the Belgian striker Marc Wibnots 
was brought down just outside the pen- 
alty area. Relays showed the foul had 
been committed by another defender of 
the Portuguese side, Sergio Abreu. 

Schalke, which do minate d a tense 
first half, opened the scoring with a close 
range effort from striker Martin Max 
seconds after the break. The Dutchman 
Rene Eijkelkamp collected. a fine pass 


for the only goal of the game just before 
halftime. The score was a poor reward for 
the home side, who limited the visitors to 
a handful of half-chances, while wasting 
□early a dozen clear opportunities. 

In Birmingham, England, Aston 
Villa reached the quarterfinals for the 
first time in 20 years with a 2-0 victory 
over Steaua Bucharest. 

Second-half goals from Savo Milo- 
sevic and Ian Taylor clinched a 3-2 

1I«FACpf 

victory on aggregate for the English side 
after their 2-1 first-leg defeat. 

In Rome, a goal from Giorgio Ven- 
turis gave Lazio a pressure-free 1-0 


from Wihno&tosttttitheihotiiejeam'Sb victory over Austria’s Rapid Vienna 


Midnd Uitin/Ranei 


A Schalke fan dressed as Santa 
celebrating the team’s 2-0 victory. 


second goal'in the 63d mzante.The'first 
match ended in a scoreless draw.' 

In Madrid, the Spanish international 
defender Carlos Aguilera led Atietico 
Madrid to the quarterfinals with a 2-1 
aggregate victory over Croatia Zagreb. 

Aguilera set up Jose Luis Camtnero 


and sealed the Italian side’s place in the 
quarterfinals. 

Venturin. drove home his first goal of 
the season four minutes from lime after 
Pierluigi Casiraghi had set him up with 
an acrobatic back-heel on the edge of 
the penalty area. 


The third-round second-leg victory 
gave Lazio a 3-0 aggregate victory. 

In France, Auxerre beat Twente En- 
schede by 2-0 to qualify for the 
quarterfinals. 

The former French champions scored 
through the winger Steve Marlet in the 
third minute to strengthen their 1-0 vic- 
tory in tiie first leg. 

Auxerre’s StephaneGuivarch made it 
2-0 from a penalty eight minutes from 
the final whistle. 

Marlet. back in international action 
after a long injury, received the ball on 
the right of the box and fooled the Dutch 
goalkeeper Sander Boschker with an 
instant left shot 

In Moscow, Spartak Moscow needed 
a goaf - from Alexander 'Shnko 'iir tiie 
final period of extra time to overcome 
Karlsruhe SC by 1-0 on aggregate. 

With penalties looming in the second 
leg after a scoreless 199 minutes of soc- 
cer, Andrei Tikhonov surged down the 
left side and found Shirko unmarked with 
a cross that the striker hammered home. 


Start It Up: 
Cricket on Net . 

rill- .Uni'wn/ Prr\* 

NEW YORK — For cricket fans , 
who can’t get no satisfaction. Mick . 
has come to their rescue. 

Mick Jogger, front man for the 
Rolling Stones, has started an In- 
ternet company to bring cricket ■ 
matches to the Net. 

His company. Jagged Internet- • 
works, along with WorldTel and > 
Criclnfo, will "netcasr” the Akai- 
Singer Champions Trophy, an in- " 
temational cricket tnunuunent that 
starts Thursday, from Sharjah,- 7 
United Arab Emirates. 

Cricket-loving World Wide Web ’ 
surfers can browse the site and hear * 
live broadcasts of the matches and * 
see video highlights afterward. 1 

“This is the future of sports in-; 
formation.” Jugger said. “In a few ■ 
yeare. the Internet will be a huge ‘ 
player in sports broadcasting across * 
the globe. " 

The Rolling Slones often broad-' 
cast their concerts live over the Net," 
so broadcasting a cricket match is . 
not loo different. Jagger said. : 

The Akai-Singer Champions 
Trophy is the second most impor- : 
tarn cricket tournament. England, 
the Wesr Indies, Pakistan and India - 
will compete for the trophy in seven ‘ 
matches ending Dec. 19. WorldTel. 
which is producing the netcast, said 
it expected an audience of 1.5 mil- 
lion to 2 million people. 

The tournament will be broad- . 
cast from htip-V/www.crickei.oig. " 


Just What Is Squashing Hockey Scores? 




The Associated Press 

NEW YORK — Maybe it’s the neu- 
trai-zone trap or some other exotic- 
sounding scheme. Or maybe it’s just 
plain good goaltending. You can’t count 
out the skate- in-the-crease rule, either. 

In its fust-quarter report, the NHL said 
scoring had fallen an average of about 
half a goal per game from the same 
period of the previous year. A similar 
decline was noted last year. The league’s 
chief statistician, Benny Ercolani, also 
said power-play efficiency was at 15.1 
percent, its lowest since at least 1983. 

In the 1995-96 season, Mario 
Lemieux of Pittsburgh scored 161 points 
to lead the league. Last season, his last. 


teams are playing trap,’ ’ Phil Housley of 
Washington said. “They play a more 
defensive-type system because they 
don’t want to make mistakes.” The 
New Jersey Devils and the Pittsburgh 
Panthers popularized the neutral-zone 

NHL Roundup 


“1 think around the league more 


trap. The defensive technique, which 
clogs the middle of the ice, helped the 
Devils win. the Stanley Cop in 1995 and 
tiie Panthers get to the finals in 1996. 

People around the league also say that 
goaltending has never been better. And 
the skate-in-the-crease rale, designed to 
protect goaltendeis, nullifies a goal if an 
attacking player's skate — even one 
away firms the action — is in the crease. 
In games played Tuesday night:- 
Flames 3, Isl a nders 1 Calgary, which 


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had won just one game on the road so 
far, finally got a fortunate bounce. 

Shoitfaanded and trailing 1-0, Flames 
defenseman James Patrick flipped the 
pock in the Islanders zone. Goalie 
Tommy Salo went behind the net to bold 
the pack for Bryan Benud, bnt it spun off 
Salo’s stick to the right post, where 
Jarome Iginla scored into the empty net 
Penguins 2 , Kings 1 Rob Brown 
scored the game-winning goal; Tom 
Banasso made 23 saves but lost his bid 
for a fourth straight shutout win when 
Vladimir Tsyplakov sewed. 

usd Wings 7, 43—nofcs s In Detroit 
Kirk Maltby scored his first two goals of 
the season, including a deflection off his 
chest as Vancouver lost its fourth 
straight Steve Yzerman scored his 
548th goal, tying him with Michel 
Goulet for 14th place on the career list 


Scoreboard 




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Mark Messier of Vancouver slipping a goal by Kevin Hodson of Detroit 


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SOCCER 


UEFA Cup 

Auxetre Z Twwtc Enschede 0 
Ament win 3-0 on aggregate. 

Lotto l, Ranld Vienna 0 

Lnzfo win 3-0 on aggieqate. 

Schalke 04Z Brega 0 

SOurtke win 2-0 on aggregate. ** 

Aston VKo 2 . Steaua Bucharest 0 
Aston Vika wm 3-2 on aggregate. « 
Inter MRan 3, Strasbourg 0 

Inter win 3-2 on aggregate. 

A ftefkro Madrid 1. Croatia Zagreb 0 
Atleffca Madrid win 2-1 on aggregate. 


transition 


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INTERNATIONAL HERALD TRIBUNE, THURSDAY, DECEMBER 11, 1997 


PAGE 25 


SPORTS 


41 IHm, 


‘ !.l 




‘Classic Jordan Moment 9 


'S "1 +v 




He Passes Malone to Be 3d Highest Scorer 


The Associated Press 

Michael Jordan faked a 20-foot jump- 
er, and the defender Allan Houston sailed 
past. Jordan dribbled, spun and put a 12- 
foor bank shot just over the outstretched 
hand of the 7-foot Patrick Ewing. 

The ball went in, die Chicago crowd 
cheered, and Jordan climbed another 


Jordan has 27,432 points in 867 
games over 13 seasons. He passed 
Moses Malone, who scored 27,409 
points in 1,045 games during his 19- 
year career. He has the National Bas- 
ketball Association’s best scoring av- 
erage ever — 31.6 points. 

Jordan coaid catch Wilt Chamberlain 


MBA RoBNbBP 


(31,419 points) for second place if he 
averaaea275 points from now until the 


rung on the ladder of NBA history, be- 
coming the No. 3 highest scorer ever. 

‘ ‘I'm not sitting back, w atching my- 
self and determining if that’s a classic 
Jordan moment,” he said Tuesday night 
after leading the Chicago Bolls with 29 
points to a 100-82 victory over the New 
York Knicks. “I’m trying to score.” 


. v . - 


UU«D Sprewen with his agent. Arn TeDem, and WojeejSStcSSZ h 2S* ~ d " 


Sprewell Says He’s Sorry, but Complains 


By Mike Wise 

New York Times Service 


Strut h ( p ; 


Cri 


rut ! mi \„ 


Appearing serene, composed and un- 
like the enraged player who attacked his 
coach eight days ago, Lacrell Sprewell 
has publicly apologized to P.J. Car- 
jtesimo. 

Yet, the former Golden State War- 
riors guard also said Tuesday night that 
he was not given due process by the 
National Basketball Association, an al- 
legation thar has galvanized Spreweli’s 
peers around the league and might trans- 
form last week's frightening incident 
- into a political wishbone. 

• As owners and players prepare for an 
impending struggle over the collective 
bargaining agreement, Sprewell 's one- 
year suspension for choking and punch- 
ing Carlesimo last week has brought 
about threatened boycotts and thrown a 


further wedge between management 
and labor. 

“I was willing to meet with the team 
and the league after being suspended, 
and it just seemed like no one wanted to 
hear what 1 had to say,” Sprewell said 
Tuesday inside the packed ballroom of a 
hotel in Oakland, California. ”1 hope 
that the league would at least afford me 
the opportunity to come out and just 
hear me. That’ s all I really wanted to do, 
was just to tell what happened. And no 
one was willing to listen at the time. ” 

Sitting at a table surrounded by dozens 
of photographers and television cam- 
eramen, Sprewell was flanked by a nine- 
person legal team that included Johnnie 
Cochran, the lawyer who defended O J. 
Simpson; Sprewell's agent. Am Tellem, 
and Billy Hunter, the players' association 
executive director. Also present were die 
onion’s chief council, Robert Lanza, and 


staff attorney, Ron Klempner. 

Charles Barkley, the All-Star forward 
of the Houston Rockets, suggested after 
practice in Houston on Tuesday that the 
players consider a boycott of the All-Star 


Championships next summer in Athens, 
In New York, the NBA’s executive 
vice president and chief legal officer 
Jeffrey Mishkin said: “In response to 
questions raised following today’s press 
conference, I wish to confirm the fol- 
lowing facts. One; The investigation 
into the assault on PJ. Carlesimo in- 
cluded 23 interviews by the NBA se- 
curity department, one of which was 
with Mr. Sprewell himself. Two: Prior 
to notification to the players' associ- 
ation of Mr. Sprewell’s suspension, no 
request was made by Mr. Sprewell, or 
anyone acting on his behalf, for a meet- 
ing of any kind.” 


averaged i f~> points rrom now until the 
end of next season. But if he retires after 
this season, he will finish well behind 
Kareem Abdul-Jabbar (38,387). 

In the game, Ewing scored 22 points, 
but was wily 6-of-2Q from the floor as 
New York shot 36 percent in losing for 
the fifth tune in seven games. The Knicks 
have lost five straight on the road. 

wizards 120, Nets 99 In Washington, 
Tracy Murray scored a season-high 26 
points and made a career-high seven 3- 
po inters as the Wizards stayed perfect at 
their new arena. 

Hora sts 95, Raptors 82 In Toronto, 
Bobby P hi Its scored 13 of his 20 points 
in the fourth quarter, helping Charlotte 
extend Toronto's franchise-record los- 
ing streak to 17 games. 

Hast 97, Hawks 81 Host Miami, lead- 
ing the Atlantic Division, sliced through 
an unusually tame Atlanta defense to 
shoot 51.9 percent from the field, 
pulling away in the final period after 
Atlanta cut a 10-point halftime deficit to 
71-66 after the third quarter. 

Pistons 92, Nuggets 83 In Auburn 
Hills, Michigan, Brian Williams had 21 
points and Jerome Williams led a 
second-quarter comeback with 12 
points as Detroit handed Denver its 
ninth straight road loss. 

SuparSomcs 1 08, TfmbsrwoJvss 99 In 

Minneapolis, Gary Payton had 21 points 
to lead Seattle to its NBA-record 26th 
consecutive win over Minnesota. Detlef 
Schrempf scored 19 points. 

Clippara 99, Hamricks 92 In Dallas. 
Darrick Martin sewed 18 points, and 
Lamond Murray added 17 as Los 



Michael Jordan, the Bulls' guard, driving past Knicks’ Patrick Ewing. 


Angeles won for only the fourth time 
this season. 

Aoclcsts 108, Spun 78 In Houston. 
Clyde Drexler led six players in double 
figures with 17 points and 11 assists as 
Houston won its ninth straight. 

Suns 107 , Grizzlies 85 In Phoenix, 
Cedric Ceballos scored 21 points in 23 


minutes and Antonio McDyess had 20 
points and nine rebounds ’as Phoenix 
beat Vancouver. 

Kings 113, Jazz ioi In Sacramento. 
Corliss Williamson scored 19 of his 
career-high 27 points in the second half 
and Mitch Richmond added 24 points as 
Sacramento defeated Utah. 


WrT&fyr: r 

’ ' •' ?>• .7- . V •/ .#• •• X. -V . v ■* \ ■ \ : y < 


Somehow Boggs Knew It Whs a Buyout 


By Murray Chass 

New York Tunes Service 





n .. ;- ... u am *»■*»*■ m— — ■— Quito Knqn/ne Anodtfol P»«« 

IMAGINE Dennis Eckersley in a snowy Fenway Park showing his IB-year-old son, Jake, the view from the 

pjtcher's mound. Eckersley, 43, a Red Sox starter from 1978 to 1984, will return to Boston next season. 


Wade Boggs has not stayed up nights 
trying to figure it out, but he knew 
something was wrong in New York. 

“I don't know what it was,” he said. 
“I can’t answer that. I’m still wondering 
that myself. It was something 1 couldn’t 
put my finger oa. I just sat back and 
wondered. Everyone said, 'They'll pick 
up your option.* I more or less knew 
they wouldn’t I could sense that” 

Because the Yankees did not exercise 
the option in his contract, Boggs became 
a free agent, and Tuesday he joined his 
hometown Tampa Bay Devil Rays. 

The Devil Rays got die third baseman 
inexpensively, signing him to a one- 
year contract with an option for a second 
year. The deal guarantees Boggs only 
$750,000 — a $500,000 salary and a 
$250,000 buyout if his option is not 
picked up. The last time he played for so 
little was 1984, his third season in the 
majors, when he made $525,000. 

Boggs, who is 39, can earn up to 
$750,000 in bonuses based on his num- 
ber of plate appearances; he needs 500 
to receive the maximum. That number 
also will guarantee his option year sal- 
ary of $750,000. 

The Yankees gave Boggs a $100,000 
buyout rather than a $2 million salary 
for next season. He made $2 million for 
each of the last two seasons. He said no 


one from the Yankees told him the team 
was letting him go. 

”1 got it in writing, a formal letter, 
and that basically was it," he said in a 
conference call. "It's something you 
accept and go on about your life. 

Boggs’s problem with the Yankees, 
for whom he played five years after 1 J 
with Boston, seemed to be that the man- 
ager, Joe Torre, was less than enchanted 


Baseball 


with him. Coming off two consecutive 
Gold Glove seasons, Boggs was re- 
placed by Andy Fox at third base in a 
game early in the 1996 season, Torre's 
first with the Yankees. When the man- 
ager was asked why, he said, “Fox is a 
better defensive third baseman." 

Boggs struggled in the first half of 
last season, hitting only .240 with a .3 1 4 
slugging percentage before the AU-Star 
Game break. In July he said he was 


menially shot, in effeci giving up his 
job, or his part of it, to Charlie Hayes. 


job, or his part of it, to Charlie Hayes. 
But in 42 of the77 games after the break. 
Boggs hit .362 and had a .510 slugging 
percentage. He finished with a .292 bat- 
ting average, only the second time in 1 6 
seasons he did not hit .300. 

“It’s time in my career where I've 
done enough traveling, living apart 
from my children.’' he said. “It’s rime 
to come home and play.” 

Now, he added, his relatives and 


friends can watch him try to gel the 200 
hits he needs for 3.000. 

"People I grew up with are still here." 
he said. “Basically they've lived my 
career through the newspapers, and tele- 
vision. Now they can see me play. Some 
of them held off buying rickets until they 
knew 1 was going to play here," 

In other free-agem signings. The As- 
sociated Press reported} 

The San Francisco Giants signed Orel 
Hershiser. a move that continued the 
revamping of the Cleveland Indians' 
rotation. In the last two days, the Indians 
have added Ben McDonald and Dwight 
Gooden .while losing Jeff Juden and 
Hershiser. 

Jeff Blauser. a shortstop, agreed ro an 
$8.4 million, two-year contract with the 
Chicago Cubs. 

Texas agreed to a $3.85 million, two- 
year contract with Roberto Kelly, an 
outfielder, and a $1,575,000, two-year 
contract with the second baseman Luis 
Alicea. 

The knuckleballer Tom Candiotti 
agreed to a $6.35 million, two-year con- 
tract with Oakland. 

The outfielder Luis Gonzalez and De- 
troit agreed to a two-year deal worth’ 
between $4 million and $5 million. 

And in a front office shakeup, the 
Philadelphia Phillies fired their general 
manager, Lee Thomas. Ed Wade, who; 
had been his assistant, will be acting- 
general manager for the 1998 season. : 


Zai*yp- r _■* 


booking office 
06/488800 - 1478/4888° 



“tear* 4-" 























cage 26 


ART BUCHWALD 

‘West Side Story ’97’ 

\XT ASHINGTON— “West 
T t Side Stray" was written 
tt a time when rival teen gangs 
Yoric Oty were at each 

Others thr mre 

Now the West Side is con- 
sidered prime real estate, and 
you can't live 
there ■ unless 
you are really 


u PPcr crust 
Here's I 



jhowl 
tiri nk the show 
could be re- 
written: 

The Ralph 
Lauren Blue 
Blazers led by Bucbwald 
Riff and the Tommy Hilfiger 
Sweatsuits led by Bernardo 
taunt each other as they move 
around their favorite dis- 
cotheques. 

Riff is going to get Tony to 
drive the Hilfiger gang off the 
Blue Blazer turf. 

□ 

Tony arrives on the scene 
and meets Maria, who is re- 
turning from another deb- 
utante ball at the Pierre 
Hotel 

It's love at first sight 

Tony finds the Trump 
Tower penthouse where 


Milwaukee Museum 
Begins Expansion 

New York Times Service 

MILWAUKEE — The 
Milwaukee Art Museum was 
to break ground Wednesday 
on a SSO million expansion. 

The expansion, designed 
by the Spanish architect-en- 
gineer Santiago Calatrava, 
will increase gallery space by 
about 25 percent and provide 
space for a lecture hall, res- 
taurant and gift shop. The cur- 
rent museum, designed by 
Eero Saarinen, was opened in 
1957. The museum was also 
expanded in 1975. 


Maria lives, and as she st 
out onto ter balcony 
climbs up the fire escape to 
serenade hex. 

At Doc's Armani clothes 
store Riff and Bernardo meet 
for a war council to discuss a 
rumble and dance at the Ar- 
mory. 

□ 

But Officer Krupke, 
dressed in the latest Calvin 
Klein ensemble, warns them 
not to cause any trouble on his 
beat. 

When Tony finds Maria at 
the Gucci store they talk 
about their wedding, which 
Maria says she wants at the SL 
Regis with Oscar de la Renta 
designing her gown. 

In front of the Lincoln Cen- 
ter the rumble is about to be- 
gin. Switchblades appear, and 
Riff is killed by Bernardo. 
Then Tony kills Maria's 
brother, Bernardo, and hires 
Johnnie Cochran and F. Lee 
Bailey to defend him. 

Maria finds out that Tony 
killed Bernardo, and when 
Tony climbs up to see her at 
the Trump Tower she refuses 
to talk to him because she has 
a 10 o'clock appointment 
with ter personal trainer. 

□ 

The Blue Blazers regroup, 
and one of them, Chino, has a 
gun. Maria asks her friend 
Anita to tell Tony to meet 
them at Tiffany's in the dia- 
mond-ring department. 

Instead, Anita tells Tony 
that Maria is dead. When 
Tony hears this he jumps into 
his Jaguar and shouts, “Come 
and get me, Chino." 

Just as Tony sees Maria, 
Chino steps out of the Le 
Cirque 2000 restaurant and 
shoots Tony who dies in 
Maria's arms. His last words 
are, “What bad luck. We 
could have bought a house in 
Easthampton. " 


INTERNATIONAL HERALD TRIBUNE, THURSDAY, DECEMBER 11, 1997 


Pragu 



cnsin a 



VUJ- ' 


By Jane Periez 

New York Times Service 


P RAGUE — The smoke-wreathed chairs 
have gone, the green marble interior from 
Comrade Castro's Cuba is now a slab of 
memorabilia and the sallow ambience has 
been replaced by the megawatt white light of 
a sleek brasserie. 

But somehow — perhaps it says 
something about the tunelessness of Czech 
life — the newly renovated Caffe Slavia, the 
century-old haunt of Czech writers, actors, 
painters, students and the petite bourgeoisie, 
has managed to stay the same. 

When the famed caffe opened its doors 
recently after a seven-year closing and a 
complete overhaul, all of Pragne held its 
breath. 

How could a new Caffe Slavia possibly be 
genuine? they asked. But the toughest critics 
— the former habicu&s — have given then- 
seal of approval. 

The writer Pavel Kohout, who was forced 
into exile by the Communists and has now 
returned to an apartment just up the street 
from the caffe. has checked it out He is 
ecstatic: the old egalitarianism prevails. 

“I’ve been walking my dog past the caffe at 
10 in the morning and at 1 1 at night," he said. 

“It’s not filled with tourists. The old and the 
young are there." 

On a recent afternoon, women who work 
at offices strolled in, carrying the day’s gro- 
ceries in shopping bags. They seemed just as 
at home as a skinny model in a zebra-pat- 
terned Lycra T- shir t talking hair and makeup 
with her new manager. An elderly woman in 
a well-seasoned fin: and black cloche hat 
gave the place an eagle eye. In the back, Jiri 
Pehe, the foreign policy adviser to President 
Vaclav Havel, briefed a local journalist. 

A new -look Slavia, planned after the col- 
lapse of the Communists, was mired in legal 
battles after a Boston company acquired the 
lease in 1992 but never did the renovation. 

Two years ago, a Czech company bought the 
lease and ran an architectural competition, 
asking for designs incorporating the past 
The winners, Jiri and Jan Spacek, brothers from Prague, had 
a lot from the caffe's history to choose from. 

As political systems came and went, the Slavia slipped 
from style to style. 

It opened in 1891, dripping with chandeliers, a replica of 
the imperial caffe in Vienna and Budapest After the Habs- 
burgs expired, an Art Nouveau interior appeared, replete 
with colored lamps and decorated glass. ' 

The fussiness of the 1920s gave way to the Berlin inspired 




Mid 1‘^toTV ta* VaiTsm 

The newly renovated CafS Slavia, a century-old favorite in Czech artistic circles. 

Art Deco of the 1930s, with nickel edging the lights, doors : 
and railings. Out of the question for the Spacek brothers, who 
were in disfavor under the Communists; was a retro 1950s- 
to-’80s look harking back to Socialist Realism murals and 
grubby upholstered chairs. 

Wim little hesitation, the Sraceks went for Art Deco. 

They are most proud of the lights they designed: outsized 
cones of mfik glass trimmed in nickel-plated brass that hang 
in clusters from the ceiling. 


“Just as the architects of die 1930s 
Testing, to the Art Nouveau before, ^ewere, 
reacting to the yellow lights of the - 

' said' Jiri Spacek, "45. / ‘Light ^ new to the - 
place, that's our contribution.. • . 

They returned die walls' to a reddish ma- 
■ hogany and asked an Austrian, designer 
cone up with a new version of his classic, 

" bistro chair. From archive documents me 
Spaceks copied the 1930s glass- and rnckri- 

prated doors and salvaged an original nbbon-. 

Vtijin green circle of neon light for one of the 
Vdeflings. ■ ■ . ■ • - - r . . 

" For people like Pehe, the return of the 
Slavia is symbolic of the best of modem 

Czech history. . . . 

vrrFirst, there is the name, which purposely 
distinguished it from the historic Gorman and 
Austrian influencesonjKCzechs. Thosewhj 
.Wanted independence from the Habs burgs 
used to plot there before World War L Pehe 
said. In the 1970s, resisters like himself who 
. could not be totally repressed by the Soviet- 
led invasion of 1968 came to scheme, helped 
by raw coffee and clouds of rough smoke. 

For some, IikeKohout, 69, the caffe was life 
itself: “I first went there in 1936 — 1 was 8, 
and I went there with my father," he said. 
“He told me much later that I had my first 
aperitif there." . , 

Kohout recalls sitting in the Slavia with 
friends in 1977, waiting to be summoned to 
the nearby Interior Ministry, where they were 
asked to approve a document denouncing; 
Charter 77, which they had all signed. The 
Charter called for the recognition of human 
rights in Czechoslovakia- The Slavia-philes, 
of course, refused the ministry's demands. 

Kohout was expelled from Czechoslovakia 
in 1979 and spent the next 10 years in Vienna, 

where he picked out a coffee house as his 
regular. But it was not the same. After all, 
major scenes from two of his novels are set in 
the Slavia. 

In December 1989, when he rushed back 
home afteT the fall of the Communists, his 
first stop was the caffe. “I was sure my 
friends would be there — and there they 
were." he said. 

The caffe's most famous denizen was Havel now president 
of the Czech Republic, then a dissident and playwright 
Havel’s enthusiasm for the reopening of the Slavia was 
boundless. He dropped in one day unannounced during the 
construction to check out the plans. But he was in a hospital on 
opening night, recovering from a serious bout of pneumonia. 

He sent a message that was read out “This is a small 
victory over stupidity/ ’ he said, referring to the years that the 
caffe was unnecessarily dark. 




fe— 5 "S' 

i- •/. 


JAZZ 


PEOPLE 




Danilo Perez and the Caribbean Connection 


By Mike Zwerin 

International Herald Tribune 


P ARIS — Baseball, we are told, is being saved by 
an influx of Latino players. They do not bring 
their own rales, as in Canadian football 
by American rules. Something similar has* 

happening with jazz. 

Latin jazz, more or less invented by Dizzy 
Gillespie during the late ’40s, was physical, happy 
music — you could not stay put Dizzy's Afro- 
Cuban records sold better than his others. Some 
people, however, considered it an intrusion. 

Flashback. 1949. A late night jam session at 
Nola's, a smoky rehearsal studio on Broadway. 
Two conga drummers accompany a band of the 
usual suspects playing “A Night in Tunisia.” Af- 
terward, an awkward silence is broken by a bearded 
trumpeter who mutters, hi la W. C. Fields: “Let’s 
get out of the jungle for awhile.” The Congo 
drummers leave. 

The emigration of talented musicians from the 
Caribbean continues today. They have become a 
major force. Their music is called salsa now. Both 
die name and the music are to a large degree 
commercially driven. 

Something more subtle and ecological has 
entered the picture. Improvisers are beginning to 
incorporate Latin elements as only one more in- 
fluence, like the blues, added without a hint, of co- 
option. 

When the Panamanian pianist Danilo Perez, now 
30, first traveled with Wynton Marsalis' band in the 
late '80s, he noticed that the New Orleans time the 
rhythm section was using was very danc cable. Very 
Caribbean, it was still within the pure jazz tra- 
dition. 

He has thought this over. Obviously, he is not 
speaking off the cuff: “I could relate to that. So I 
started to reinvestigate rhythms from Panama. I 
began to bear Monk as though it was somebody 
playing percussion on a piano. 

“It was a revelation to me. Jazz could be fun as 
well as an intellectual exercise. Before that, I bad 
not heard any connection between jazz and Latin 
music except for Latin jazz. What I was hearing 
now was a much deeper connection. Then I began to 
feel right at home with Jelly Roll Morton.too.” 

The release of Perez’s third album, “Pana- 
monk” (Impulse!) has elevated his career to the 
next level. He made the cover of the magazine 
Jazzis. And he has been working more or less 
continuously since May. People like to hear 
Monk's compositions played in another style. Perez 
works primarily in trio format. Tommy LiPuma of 



ChrManBoae 

From Panama, pianist-percussionist Perez. 

Impulse! Records advised him: “You need to play 
in a small setting so people can hear what you’re 
doing with your hands." 

Recently, he finished a week at La Villa, an 
intimate club in Saint -Germain -des -Pres. One 
night, much to his surprise, the members of the 
hard-rock band Me tallica were at a front table. Not 
only that, they were listening. 

The night before, conversation had been over- 
powering the music until he made an announce- 
ment Soft, thoughtful, respectful on the edge of 
pedantic, he reminded the audience that this was a 
music room. And, frankly, it was expensive. They 
had paid good money to listen. And so it made good 
sense for them to quiet down. “Please. Listen," he 
pleaded. 

His pedantic side is relatively new. For three 
years now, he has been teaching improvisation and 
piano at the New England Conservatory of Music in 
Boston. He learned to teach from his father figure 
and prior leader, Gillespie: “He taught me how to 
combine the elements of jazz with my culture. He 
was always explaining that I should learn how to 


take advantage of my own culture. Dizzy taught me 
how to explain to begin with. Having to put it all 
into a theory to explain to my students helped me 
explain it to myself." 

Perez grew up in Panama City. His parents were 
both teachers. His father was also a folk singer and 
.tircyoung Danilo would accompany him to gigs as 
early as me age of 4. He played claves, harmonica; 
“whatever." Perez speaks with a great deal of 
warmth about his childhood. And he smiles re- 
membering a “trick" he played on his mother. 
When she hesitated to allow him to go out and stay 
up late with his father, he warned her. “I'm not 
going to go to school any more. I’m going to. 
faiL" 

He did anything but Studying electronics in high 
school he had such “amazing numbers" that he 
was awarded an engineering scholarship to the 
University of Indiana. But music continued to be a 
passion. During a mathematics test, he had what he 
calls a “fantasy" of an audience applauding him 
after a concert ‘ ‘My test pages were still blank, but 
1 gave them to the teacher and said: ‘I’m leaving. 
I’m not coming back’ ” 

So after a year in Indiana, he was awarded a 
Quincy Jones Scholarship at the Bexklee College of 
Music in Boston. Soon afterward, however, he 
moved to New York to work with the singer Jon 
Hendricks. His mother was, he says, “going nuts. 
She thought her son did not know what he wanted to 
do in life. Now she's happy, but still, some day. I 
would like to go bade to school Get my master’s, 
maybe in ethno-musicology." 

Doing a radio interview in Los Angeles earlier 
this year, the love with which Perez described his 
parents and his youth in general made a deep 
impression on the film director Robert Downey, 
who heard it in his car. Downey was looking for 
someone to write a score for his new movie 
“Hugo’s Pool’ ' starring his son Robert Jr. and Sean 
Penn (it is scheduled for release later this month). - 

The following day, in his hotel room, Perez 
received a phone call from “some director who 
wanted me to write music for his movie. I said 
'Yeah. Sure.’ " It turned out to be Downey, and the 
day after that Perez found himself in a studio 
looking at it Two and a half weeks later he de- 
livered the score and recorded it, right on dead- 
line. 

He considers it something of a miracle: “How 
did Downey know I could write for a string quartet? 
He had never even beard me play. The film is a 
comedy, and right from the beginning I could tell 
that it needed classical and Latin music, and Monk. 
All the things that I'm about" 


T HE exiled Cuban writer 
Guillermo Cabrera In- 
fante has won the Cervantes 
Prize, the Spanish-speaking 
world richest award for liter- 
ature, which carries a purse of 
15 million pesetas (about 
$100,000). Cabrera Infante, 
who lives in London, is die 
author of “Tres Tristea 
Hgres" (“Three Sad -Ti- 
gers”) and “La Habana para 
un infante difun to” (“Havana 
for a Dead Child") He is a 
strident critic of President Fi- 
del Castro of Cuba and reg- 
ularly writes editorials for 
Spanish newspapers. Cabrera 
Infante will receive his prize 
from King Juan Carlos I on 
April 23. 

□ 

The Doris Duke Charitable 

Foundation has announced its . • IJ". Aljl-lkV Ipwl'ranr— iv» 

first grants to support the arts, Cabrera Infante, winner of the Cervantes Prize, 
environment ana medical re- 
search. The creation of the foundation was the year before he was shot to death outside his 
culmination of a nearly four-year fight — whal New York Cityapanment building in 1980, the 
many legal analysts called one of the ugliest- Swedish news agencyTT said. The tunes are 
probate battles in American legal history — being released on a CD accompanying an edi- 
over the estate of the reclusive and eccentric A c »• * - 

heiress Doris Duke, who died in October 1993 
at age 80. The foundation, which distributed a 
total of $18.6 million among the three fields, 
gave its largest single award for the con- 
servation of Sterling Forest, a 17,000-acre 
(6,900-hectare) nature refuge that straddles 
New York and New Jersey. 



□ 

The dissident Cuban journalist Raul Rivero 
was awarded a press freedom prize Wednesday 
but could not travel to Paris for the award 
ceremony for fear he would not be allowed to 
return to Cuba. Rivero received the annual 
prize from Reporters Sans Frontieres (Report- 
ers without Benders) and the France Foun- 
dation. Rivero is head of Cuba Press, one of a 
handful of small and illegal news organizations 
that seek to provide an alternative to the state- 
controlled media: The prize, which includes a 
50,000-franc ($8,500) cash prize, was awarded 
by a jury of journalists from 10 countries. 

□ 

Four previously unheard recordings by John 
Lennon have been released by a small Swedish 
company. Lennon recorded the songs about a 


don of “A Spaniard in the Works,” Lennon's 
1965 book. Lennon’s widow, Yoko Ono, gave 
the Lund-based company Bakhaal permission 
to issue the songs. 

□ 

Christian Slater was sentenced to three 
months in prison for assaulting his girlfriend 
and a police officer and being under the in- 
fluence of cocaine. The actor, whose movie 
audits include “Pomp Up the Volume" and v - 
‘ ‘Broken Arrow," pleaded no contest to three 
charges. His lawyer asked the judge not to 
enforce the jail sentence because Slater had 
already voluntarily spent 118 days in a drug 
rehabilitation program since the Aug. 1 1 in_- 
cidenl A hearing was set for Jan. 9. 

□ 

The National Board of Review of Motion 
Pictures gave best movie of the year honors to 
“LA. Confidential," the film noir of cor- 
ruption and murder in 1950s Los Angeles. Jack 

Nicholson was named best actor for “As Good 

as It Gets," and Helena Bonham Carter, best 
actress for “The Wings of the Dove." The 
board is made up of teachers, actors, writers, 
movie production workers and others. 


A 



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Ruafa" * (Moscow)* 755-5042 

Spain 900-99-00-1 1 

Sweden- 020-795-611 

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MIDDLE EAST 

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. AFRICA 

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