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To Sweeten 
Deal on Ties 
With Russia 

Allies to Offer Aid 
And New Flexibility 
On Nuclear Arms 

By William Drozdiak 

WnJtington Post Service 

BERLIN — The United Stales and 
its European allies have (tedded to 
offer new incentives to Russia to 
soften its antagonism toward NATO 
expansion, alliance diplomats said 

The inducements would hwJ nrto 
new flexibility on arms control issues, 
greater economic assistance and a 
special consultative status that would 
give Russia a seat at NATO's table in 
considering policy over common 
problems such as nuclear prolifer- 
ation, theater defense, terrorism, in- 
ternational crime and peacekeeping. 

The ideas will be broached 
Monday when the NATO secretary- 
general, Javier Sol ana Madariaga, 
opens negotiations with Foreign Min- 
ister Yevgeni Primakov of Russia on 
a new charier that will serve as the 
blueprint of the alliance's future part- 
nership with Russia, The two men 
have scheduled five hours of discus- 

Netanyahu’s Accord With Arafat 
Passes Stiff Test in Israeli Cabinet 

Deputy Secretary of State 
Strobe Talbott, the U.S. point 
man on Russia. Q&A: Page 6. 

sion at an official guest house near 

The timetable now calls for the 
package to be ready by the summit 
meeting of industrial democracies 
this June in Denver, to which Pres- 
ident Boris Yeltsin of Russia will be 

Alliance sources said the purpose 
would be to give Mr. Yeltsin at least 
two weeks* time to sell the package at 
home before the North Atlantic 
Treaty Organization unveils its new 
candidates for membership at a Mad- 
rid summit conference July 8 and 9. 

The pressing agenda was reviewed 
in detail this week during a tour of 
allied capitals by the deputy U.S. sec- 
retary of state, Strobe Talbott The 
main reason behind Mr. Talbott’s 
meetings in London. Brussels, Paris 
aqd Bonn, a senior U.S. official said, 
was to ensure that “we will all be 

See NATO, Page 6 

Departing Defense Chief: 

Can a City 
In Violence 
Find Peace? 

By Clyde Habermas 

New Hant Ttoies Service 

Steeped in hatred, throbbing with 
cries for vengeance, Hebron is where 
the Palestinian-lsrad i conflict has had 
some of its darkest moments. 

Actually, there are two Hebrtms. 

There is Hebron the sacred, revered 
by Jews and Muslims as tire resting 
place of biblical patriarchs and mat- 
riarchs, most of aB Abraham, progenitor 


of both religions. Arabs cal! him 
Ibrahim and the city A1 Khalil, a ref- 
erence to Ibrahim, meaning the Be- 

For Jews, Hebron has extra signi- 
ficance because David was anointed 
king of Israel there and made it his 
capital for seven years. 

Then there is Hebron tile profane, city 
of unspeakable bloodshed. 

Although they are spiritual cousins, 
or perhaps because they are spiritual 
cousins, Jews and Arabs have killed 
each other there by (he dozens in par- 
oxysms of violence. 

Arabs rampaged against the small 
Jewish community in 1929, massacring 
67 people, razing synagogues and burn- 
ing Torah scrolls. In 1994 anew Hebron 
massacre occurred when a Jewish set- 
tler, Dr. Baruch Goldstein, entered a 

Matoanxt KMwxsJAg&cc Fmz-ftEur 

Prime Minister Benjamin Netanyahu taking the phone from Yasser 
Arafat to speak with President Bill Clinton after agreeing on Hebron. 

Perry Thrived m Always Telling ItlibeJt Was moW'above the cave where am 

v - . : ... -. is befieved to be buried and with 

ByJofrn FJHarris . 

WashingHHt PoU Service 

WASHINGTON William Percy, 
who is stepping down after three years 
as defense secretary, thrived at the 
Pentagon, in the view of his admirers,, 
because he was the opposite in neatly 
eveiy respect of the president he 

President Bill Clinton is a lifelong 
politician with a gift for speaking with 
rounded edges d esign e d to keep people 
happy and options open. H5s defease 

secretary has been a mathematician with 

a gift For speaking with sharp edges 
designed to convey meaning precisely. 
It was a style that caused a fuss on 
several occasions when Mr. Perry de- 
scribed administration policy with more 
clarity than *ta White House wanted. “ 

But Mr. Percy, who came into his job 
virtually by accident, plainly solved far 
more problems for Mr. Clinton th an fay 
caused When be took the job — with 
reluctance, according to people in- 
volved in the choice — the Pentagon 
was suffering from a reputation for dis- 
organization and poor morale, and Mr. 

Clinton was laboring und^ the mistrust 
of many mflifaiy people over his Vi- 
etuaro-era lobbying to avoid military 
service. ' 

Mr. Perry, a successful businessman, 
brought a brisk and decisive managerial 
style to the Defense Department. Even 
administration critics have acknow- 
ledged that his personal style, direct and 
genial, helped Mr. Clinton overcome 
much of the resentment he faced early in 
his tom from toe military and Repub- 
licans cm Capitol HflL This improved 
cizznate was critical to the president 
when he sent troops to Haiti, to remove 
- a dictatorship, and to Bosnia, to enforce 
a peace settlement, both under Mr. 
Perry’s watch. 

Mr. CKnton has nominated a newly 
retired Republican senator, William Co- 
hen of Mame, to replace Mr. Perry , who 
plans to stay in his job until Mr. Cohen is 

Mr. CKuton called Mr. Perry “ooe of 
toe ablest people who ever served the 
United States m my petition.” 

“Teddy Roosevelt said that those of 

See PERRY, Page 4 

made rifle Are killed 29 Muslims kneel- 
ingin prayer. 

The years in between were studded 
with lesser acts of terrorism that none- 
theless claimed many lives. Nor did the 
killing end with Baruch Goldstein. 

Hebron is not ever likely to stray far 
from center stage because, when it 
comes to religious and cultural intol- 
erance, the city is in a league of its own. 
Each side there claims to be Abraham's 
rightful heir. Each has scam respect for 
the other's traditions. Each fears the 
other's capacity for bloodshed. Each 
certainly does not mist toe other. As a 
religious and nationalist symbol, 
Hebron casts longer shadows than even 
the towering stone walls of the Cave of 

the Patriarchs, scene of the 1994 mas- 
sacre and an ancient shrine bearing toe 
scars of innumerable clashes. 

In both architecture and spirit, 
Hebron can be forbidding. 

It is home to about only 450 Jews, a 
drop in a sea of 160,000 Arabs, but they 
include some of toe most uncomprom- 
ising — and most heavily armed — Is- 
raeli settlers in the West Bank. It is also a 
stronghold of Hamas, the Islamic fun- 
damentalist group that has been behind 
much of the anti-Israel terrorism of recent 

Talk to some Hebron settlers and they 
will tell you that the Arabs have no 

See HEBRON, Page 6 


Workers’ Show of Force Fades in Korea 32 

sets to v 

Many Stay Amty, and Seoul Hulls at Imminent Arrests of Strike Leaders 

In Hebron 
Could Begin 
On Friday 

bf Ow Staff From ChSfx^ha 

JERUSALEM — Israel’s cabinet 
voted, 11 to 7, on Wednesday to ap- 
prove an agreement on an Israeli troop 
pullback in Hebron and the West Bank. 
The decision came after a tumultous 12- 
hour session in which Prime Minister 
Benjamin Netanyahu was relentlessly 
attacked by hard-liners. 

Science Minister Binyarain Begin, 
son of toe late Prime Minister Men- 
achem Begin, resigned in protest, and 
hard-line ministers stormed out briefly 
during toe prolonged debate. But Mr. 
Netanyahu and bis allies prevailed. 

As expected, toe Palestinian lead- 
ership quickly ratified the accord after a 
few hours of debate late Wednesday is 
Gaza, officials said. 

The accord was expected to be put 
before the Knesset, or Parliament, for 
expected approval Thursday, and toe 
withdrawal from most of Hebron could 
take place early Friday. 

The accord amounted to a renunci- 
ation of the dream that has defined and 
divided Israeli politics for a generation. 

The dream was Mr. Netanyahu's and 
that of his Likud party, which has gov 

Key points in the pact. Page 6. 

eroed Israel according to its vision for 
16 of the last 20 years. It saw an Israel 
unchallenged in sovereignty from the 
Jordan River to the Mediterranean Sea, 
with all of the West Bank in its hands. 

Mr, Netanyahu’s core supporters 
might have forgiven him for shaking 
Yasser Arafai’s band in September, but 
many said they could not forgive — or 

By Andrew Pollack 

New York Times Service 

SEOUL — Efforts by striking work- 
ers to mount a massive show of force 
fizzled Wednesday, setting the stage for 
what could be a.winding down of three 
weeks of labor strife mat have rocked 
South Korea. 

In addition, government officials are 
threatening to arrest the strike leaders 
soon, with a senior prosecutor saying 
Wednesday that the labor movement 
was harboring North Korean sympath- 

Two labor union umbrella groups had 
called for the strikes to intensify on 
Tuesday and Wednesday, bringing in 
transit and other public service workers, 

bank employees and others to press for 
the repeal of a new labor (aw that makes 
it easier for companies to dismiss work- 
ers, extend working hours and hire 
strike replacements. 

But most Seoul bus drivers decided at 
the last minute not to strike. So did many 
taxi drivers. Postal workers and railroad 
workers said they never intended to 
strike after all Others walked off their 
jobs for only a few hours. Some subway 
workers in Seoul did strike Wednesday, 
but retired drivers were pressed into 
service to keep trains running. 

The result was that there was little 
disruption in the capital or other cities. 
And the Korean Confederation of Trade 
Unions, the main group orchestrating 
toe strikes, said that subway workers 

and many hospital workers would return 
to their jobs in the next two days, rather 
chan striking indefinitely, as planned. 

The developments left some busi- 
nessmen and labor officials speculating 
that the worst of toe strikes might be 
over, though some anrest could con- 
tinue for days or weeks and could flare 
up if the labor leaders were arrested. 

“Today is the peak,’’ said Kang 
Jeung B, director of general affairs for 
toe union that represents postal workers. 
“From tomorrow it will slowly 

The South Korean stock market has 
been rising in the last two days on 
speculation that the strike might be 

See KOREA Page 4 

even quite believe — that toeir stan- 
dard-bearer was handing over real as- 
sets to what he so often called the 
emerging “PLO terrorist stale." 

“That’s about the end of what we call 
toe Land of Israel Movement.” said 
Y Israel Harel, founder and former chair- 
man of the Yesha Council, toe umbrella 
movement of Jewish settlers in the West 
Bank. “It means that all our efforts in 
the last 30 years are in vain.” 

“It is better to bring down this gov- 
ernment than allow this government to 
bring down our beliefs,” he added. 

( AP ; AFP. WP) 

■ Turning Point for Israel 

Barton GeUman of The Washington 
Post reported from Jerusalem : 

Initialed at about 2 A.M. at a concrete 
outpost on the Israeli -Gaza Strip border, 
the agreement marked a historic turning 
point in Israeli politics and in the tortuous 

See ACCORD, Page 6 

Europe’s ‘Mighty Mites’ 

New Cars Come in Any Size, as Long as It’s Small 

By John Tagliabue 

New York Times Service 

VALENCIA, Spain — Juan Jose 
Ubaghs once triad to drop a coin 
through toe engine of the tiny new car 
that is coming off toe assembly line 
here. It never nit the ground. 

That is because the Ka. as the bulbous 
little four-seater is called, is the most 
compact vehicle Ford Motor Co. has 
ever built: at 11 feet, 10 inches (3.6 
meters), it is nearly three feet shorter 
than an Escort. It will also be one of the 
cheapest cars around. 

Such extremes are commonplace 
these days as automakers in Europe are 
being forced to take another look at 


Crossword — 

Opinion — — ■■ 


- Page 9. 

- Page 10. 

Capitalism’s King Spies Evil in Market-Mad Realm 

Pages 1S-19. 

Naw&stanU Prices 

Bahrain 1.000 Dh Malta — 55 c 

Cyprus ~...X. £ 1 SB Nfcwia -125,00 Naro 
Denmark -.14.00 DJG. Oman — 1-250 re® 

Finland 15L0Q F.M. Qatar 

Gibraltar _£CLS$ Bap. Wand. JRfl-QO 

Great Britain -£090 Saucfi Arabia .1O0QR 

Egypt J3E 550' S. Africa -R 12 + VAT 

Jordan. 1250 JO UAE-^IO-flODWi 

Kenya..— K. SR 150 0-5120 

Kuwait .€00 fib 2knW*w^Zm53a00 

7029"4 h ’8Q5Q49 

By Erik Ipsen 

J/uentaivmai Herald Tribune 

LONDON — George Soros has turned heretic. 

In a lengthy article, toe financier now charges that 
toe very system that brought him Ms billions, and is 
now embraced around toe world as toe preferred path 
to prosperity, threatens to tmdennine free and open 
societies everywhere. 

“I have made a fortune on toe international fi- 
nancial markets, and yet 1 now-fear that the un- 
y pmim eled intensification of laissez-faire capitalism 
and the spread of market values into all areas of life is 
endangering oar open and democratic society," Mr. 
Sotos wrote in a 7,000. word article as short on rhea 
culpas as it is longon dire predktions. 

The article, titled “The Capitalist Threat,” and 
which an aide .describes as' a “culmination of Mr. 
Soros’s thinking." appeared in editions of The At- 

lantic Monthly tins week. The Hungarian-bom fin- 
ancier, most famous for a string of hugely lucrative 
bets taken by his $20 billion Quantum hedge fund in 
the currency markets, said flatly that capitalism had 
now replaced communism as the gravest threat to ope n 
societies. Mr. Soros’s own raort infamous bets helped 
posh toe British pound out of the European currency 
grid in 1992. 

Mr. Soros said that Ms love of open societies 
stemmed in part from his experience of totalitarian rule 
by both Nazis and Communists in toe Hungary of bis 
youth. Both those dogmas, he notes, ore easily proved 
false and unsustainable. 

.What distresses him now is a growing global fealty 
to wbat he terms toe ‘ ’magic of toe marketplace." It is 
thar, he argues, that has thrown open the door to 
everything from an elevation of self-interest over the 
common good to the establishment of money as the 
true measure of all value. 

"Whai used to be a medium of exchange has 
usurped the place of fundamental values," he wrote. 
“Being successful is not identical with being right." 

Even Adam Smith, noted Mr, Soros, believed in 
more than the “invisible hand” of market forces, 
marrying his economic theory with a deep-seated 
moral code. Mr. Soros dates his conversion to morality 
over mammon to 1979. and only to when he admits he 
had made more money than he had any conceivable 
need of. At that affluent juncture in his life die fin- 
ancier set up his Open Society Fund. 

Soros charities under that umbrella organization 
now operate in 25 countries and have spent tens of 
millions of Mr- Soros's marker winnings in aid of 
fostering democratic institutions, particularly in East- 
ern Europe. In those charitable undertakings, and now 
in his fuWnations against toe very system that has 

See SOROS, Page 6 

small cars. European cars have grown in 
size over the years, along with the pock- 
erbooks of Europeans, but cities remain 
congested and gas prices high, so car 
companies believe there is a crying need 
for tiny cars. 

Volkswagen AG's smallest car, the 
Polo, which will be replaced in 1998 by 
the even smaller Piccolo, is as big today as 
the Unger Golf was when it was intro- 
duced in the 1970s. Next year, Mercedes- 
Benz AG will roll out a two-seater, toe 
Smart, that is three feet shorter than toe 
Ka, and Fiat SpA will bring out a suc- 
cessor to its popular little Cinquecenio. 

But small cars mean small profits, 
See SMALL, Page 6 

Officials Deny Deal 
On European Bank 

Did Paris and Bonn cut a secret 
deal to install a Frenchman as tie 
firsi chief of the planned European 
central bank after monetary union 
j is launched? 

European monetary officials 
poured cold water Wednesday on 
two reports that such an agreement 
had been made. But they said the 
reports might indicate political 
bumps ahead on the road to toe 
smgfe currency. 

Economists and monetary offi- < 
rials said the reports of an accord , 
between Germany and France in- : 
creased concern that Paris sought 1 
more influence over policy on mon- j 
etazy union. (Page 11} j 




Fight in’ Men Are in Town!/ A New, Lucrative Spectacular 

Battle to Bring a Blood Sport to New York 

By Dan Barry 

faf York Times Sen-ice 

N EW YORK — A little more than a year 
ago. city and state officials found a certain 
style of fighting competition so offensive 
that they blocked its promoters from hold- 
ing a match in New York City. Human cockfights, 
they called it. Blood sport. 

Bur the competition, known as ultimate or ex- 
treme fighting, is back, and this rime its practitioners 
are protected by more than just mouth guards. 

While at least two states have banned the sport as 
too brutal and others have debated similar mea- 
sures. New York has become the first state in the 
nation to legalize it 

In extreme fighting, two combatants climb into 
an octagonal ring and do whatever they can — 
absent biting and eye-gouging — to send each other 
into unconsciousness or submission. They kick, 
they punch, they grapple, often on mats that quickly 
become slick with sweat and blood. 

Most matches end. promoters say. when a par- 
ticipant signals defeat by tapping three times on the 

One company is producing matches Feb. 7 at the 
Niagara Falls. Civic Center. At the top of the card is 
a heavyweight contest between two former 
Olympic wrestlers: Mark (The Hammer) Coleman 
and Dan (The Beast) Severn. 

The competitions have become increasingly pop- 
ular. and lucrative , in the United States through pay- 
per-view television. But they remain controversial 
within the broadcast industry: Cablevision Systems 
Corp.. for example, refuses to broadcast the 

One promotion company, Battlecade Inc., con- 
tends that the sport is a cross-disciplinary cel- 
ebration of athleticism — “a very elemental, hu- 
man" form of expression, as Bob Guccione, the 
publisher of Penthouse magazine and a financial 
backer of Battlecade, once put it 
At the same time, its advertising emphasized the 
violence: “ ‘Extreme Fighting — Whatever It 
Takes to Win' is the roughest, toughest, most brutal 
fighting event in the history of television." 

Although the athletic commission in Oklahoma , 
recently allowed a match in Tulsa, commissions in 
other stales, like California, have refused to provide 
the necessary permits. According to Rob Lynch, 
chief inspector for the California State Athletic Com- 
mission, the reason is simple: "It's dangerous." 

The American Medical Association agrees. Dr. 
Lonnie Bristow, its immediate past president, issued 
a statement last summer applauding Missouri's ban 
on the sport and encouraging other states to prohibit 
“these blood-soaked, crude public spectacles.” 

New York has required some safety measures. 
For example, contestants who are rendered un- 
conscious are not allowed to fight again for three 
months. And the ban on certain tactics, like biting 
and eye-gouging, has been broadened to include 
kicks aimed at the throat. 

IteuLyndl/ A&spon USA 

In extreme fighting, two combatants climb into an octagonal ring and do 
whatever they can to send each other into unconsciousness or submission. 

Hie law lends much-needed credibility to the 
fledgling sport, said Donald Zuckerman, a promoter 
for extreme fighting who only 14 months ago was 
forced to abandon plans for a match in New York 

“We were cognizant of the fact that if this sport 
was going to exist in America, we had to be socially 
acceptable to athletic commissions in different 
states," he said, “with New York being the mar- 
quee state." 

I N MAKING the transition from banishment to 
acceptance in less than a year, the sport over- 
came the strong opposition of the governor of 
New York, George Pataki, and of a state sen- 
ator, Roy Goodman. Both men had been instru- 
mental in blocking plans for an extreme fighting 
match in Brooklyn in late 1995, and both sub- 
sequently proposed bills to ban die competitions 

But the promoters prevailed. In October, Mr. 
Pataki reluctantly signed into law a bill to legalize 
"combative sports" and place them under the reg- 
ulatory umbrella of the State Athletic Commission. 
His aides said the governor could not counter the 

support that extreme fighting received in the le- 
gislature; its members would easily have 
summoned the votes to override any veto. 

Goodman wound up sponsoring the measure to 
regulate the sport after his proposed ban failed to 
win support. 

Promoters say that since the sport first appeared 
in the United States several years ago, no one has 
been killed or seriously bun — a record unmatched 
by the sanctioned sports of boxing, football and car 

“It's nice fora citizen to see that elected officials 
really do listen.” said Robert Meyrowitz, president 
of SEG Sports Corp., which stages the Ultimate 
Fighting Championships. 

“They saw the sport was far safer than they 
thought, and that our medical requirements were at 
least equal to. and in some cases even exceeded, the 
very stringent code that New York state has set up 
for wrestling and boxing." 

And Mr. Zuckerman ’s company, Battlecade, has 
begun to advertise an extreme fighting tournament 
March 28 at a site in Manhattan that has yet to be 
determined. Mr. Zuckerman said the competitors 
would include two U.S. Olympic gold medalists. 

Sunk in Name Only: 
Fraud on the High Seas 

By Fred Barbash 

Washin gton Post Service 

LONDON — The merchant ship Jas- 
han was last heard from on Christmas 
Day, when its master sent mil a Mayday 
message saying that the ship was going 
down off South Africa, carrying with it 
28 seamen and a cargo of sugar for 

For three days the South African Air 
Force scoured the seas and found noth- 
ing — no life rafts, no flotsam — which 
surprised searchers because the weather 
was fine and the seas calm. Somewhat 
bewildered, they abandoned the 

The Jahan was gone. 

But, it turned out, it was gone in name 

According to the International Mari- 
time Bureau in London, which invest- 
igates frauds at sea, the name of the 
15.000-ton vessel was changed to the 
ZaJcosea II, which then prat in at the port 
of Tenia, Ghana, where its master tried 
to sell die $3 5 million cargo. 

Investigators for the bureau, a di- 
vision of the International Chamber of 
Commerce, found it in Tema on Jan. 3. 
The ship, the master and the crew are 
under naval guard as authorities inves- 
tigate what the bureau believes is yet 
another “phantom ship” fraud. 

There are five or six of these each 
year, said P. Mukundan, director of the 
bureau, but few as brazen as the Jahan. 

“They come and load cargo” under 
one name, change the name and “that 
disappear and sell it somewhere else.” 
Usually, they do not report that they are 
sinking — a message that can set off a 
high-profile search. They say they have 
engine problems or delays in their voy- 
age, Mr. Mukundan said. 

“They buy time,” he continued, 
while trying to sell die cargo. And com- 
monly a crooked ship owner is behind 
the switch, not a master. 

The particulars of die Jahan — or die 
Zalcoseall — may sound strange to the 
uninitiated, but they are common in die 
world of shipping. The ship is owned by 
a company in Panama, registered in 
Belize, managed by Seatimes Shipping 
of Singapore and manned by a master 
from Ghana and a crew of Bangladeshis. 
Indians and Burmese. 

Its voyage began Dec. 9 in Santos, 
Br azil, where h reportedly picked up a 
load of sugar that had been sold to Iraq. 
Using its satellite telex, it messaged its 
owner on Dec. 23 that all was well and 
that the ship was steaming past Cape 

Town on its way to Iraq. Mr. Mukundan 

The next message came 15 minutes 
before midnight on Christmas: The Ja- 
han was in trouble about 1,000 kilo- 
meters (600 miles) off South Africa. The 

next few days were filled with wire 
stories detailing the search for possible 

There were bewildered tones to the 
searchers’ reports. Officials were 
quoted as being mystified at not seeing 
anything, at not receiving any signals 
from emergency beacons, at the fact that 
die seas were so calm, the circumstances 
so strange. But there was no question 
that the Jahan had vanished. 

Lloyd's List, the newspaper of the 
shipping industry, editorialized on Jan. 

8 about the irony of a French yachts- 
man’s being rescued near Antarctica 
thanks to the latest homing technology, 
while “an entire crew of 28 men had 
vanished after apparently evacuating a 
large commercial ship in reasonable 
weather in the South Atlantic.” 

On Tuesday, Lloyd's List, which is 
based in London, quoted the ship's op£* 
erator as saying that it had been 
victim of “a Ghanaian syndicate which 
aimed to sell off the cargo” before 
giving the ship yet another new name* 

South African officials are furious. . 

They sent a C- 130 Hercules transport 
plane out for 35 hours in search of the 
Jahan. combing thousands of square ki- 

lometers of ocean along with five ships 
that joined the hunt. 

Emirates Women 
Get Political Role 

Agate Fnmce-Pnaoe 
ABU DHABI— The United Arab 
Emirates dropped a social barrier ; 
Wednesday and said women could - 
play a role in politics as members of 
its appointed Parliament. 

“Women have already taken up 
important posts in the country,*’ the- , 
Parliament speaker, Haj ibn Ab-l 
dull ah Muhairbi, said when asked - 
whether it was time for women to - 
join Parliament. “From our expe- 
rience in the Federal National 7 
Council, we now feel that we really - 
need the women to play their role in 
tiie parliamentary life.” 

Emirates officials had never be-- 
fore openly called for women to be 
admitted into political life. 


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Lord Todd Dies, Aided DNA Discovery TRAVEL UPDATE 

The Associated Press 

LONDON — Lord Alexander Todd, 
89. the Nobel Prize-winning chemist 
whose work helped pave the way to the 
discovery by Francis Crick. Janies Wat- 
son and Maurice Wilkins of the struc- 
ture of DNA, the basis of heredity, died 
Friday in Cambridge. 

Lord Todd was awarded the Nobel 
Prize in chemistry in 1957 for his re- 
search into the components of nucleic 
acids, from which genes and chromo- 
somes are made. 

He established the general chemistry 
of the nucleic acids, and his work 
cleared the way for Mr. Crick, Mr. Wat- 
son and Mr. Wilkins to work out the 
detail of the structure, including the 


CARNEY, William L, 
of Essex Junction, VT, 
January 13, 1997. 
Survived try his brother. 
Matthew F. Carney, Jr., 
of Chestnut Hill. MA, 

4 nephews and a niece. 
Memorial Service at the First 
Congregational Church 
in Essex Jet., VT, on Thursday, 
.Ian. 16 at 10 a.m., and a 
memorial mass at Sl John The 
Evangelist Church, Wellesley 
MA SaL Jan 18 at 1 1 a.m. 
Donations to the National 
Parkinson's Foundation. 

1501 NW9th Ave.. 
Miami, FL 33136 USA 

double helix of deoxyribonucleic acid, 
known as DNA. They shared the Nobel 
Prize in 1962 for their work. 

Albert Wohlstetter, 83, Adviser 
On Strategic Nuclear Doctrine 

NEW YORK (NYT) — Albert Wohl- 
stetter, 83, an influential innovator in 
strategic nuclear doctrine who advised 
Democratic and Republican adminis- 
trations on military strategy, died Friday 
at his home Dear Los Angeles. 

His career was guided in part by his 
conviction that America should be able to 
control its military forces to permit vary- 
ing the response to foreign aggression. 
The goal was to ensure that the country 
would not be obliged to mount an initial 
nuclear attack on the Soviet Union. 

He was a senior policy analyst at 
Rand Corp., the California-based re- 
search organization that carried out 
studies for the Defense Department, 
from 1951 to 1963, and a consultant to 
Rand for decades afterward. 

Helen Foster Snow, 89, Writer 
And Agent of Change in China 

NEW YORK (NYT) — Helen Foster 
Snow. 89, who helped bring social 
change to China in the 1930s, witnessed 
revolution and war and throughout wrote 
to promote American-Chinese under- 
standing, died Saturday in Guilford, Con- 
nect! cut- 

in China, she was remembered for her 
key role in creating the gung ho, or work 
together, movement of industrial co- 
operatives in Shanghai in the 1930s. In 
1958. the cooperatives were co-opted 

by the victorious Communists. 

Bom in Cedar City, Utah, she attended 
tiie University of Utah before venturing 
to China in 1931. She married Edgar 
Snow, a journalist and author, and joined 
him in reporting the civil war in China 
and the country's struggle against the 
Japanese. They divorced in 1949. 

Dr. Charles Huggins, 95, Studies 
Led to Drug Therapy for Cancer 
NEW YORK (NYT) — Dr. Charles 
Huggins, 95, who won a Nobel Prize in 
1966 for discoveries that helped open 
the era of drug therapy for cancer and 
provide underpinnings of the modem 
treatment of prostate and breast cancer, 
died Sunday at his home in Chicago. 

Dr. Huggins made important findings 
in his specialty of urology at the Uni- 
versity of Chicago before turning to 
cancer research in tiie 1930s. 

His research showed that cancer cells 
were not autonomous and self-perpetu- 
ating, as previously believed, but were 
dependent on hormones and other 
chemical signals to grow and survive. 

King Hu, 66, Director Famed 
For Movies in Hong Kong 
TAIPEI (AFP) — The movie director 
King Hu, 66, died late Tuesday in Vet- 
erans General Hospital here of heart 
problems, his doctors said Wednesday. 

Mr. Hu, who was named as one of the 
world's five greatest film directors by 
Britain's International Movie Review in 
1978, emigrated to the United States 
from Hong Kong several years ago. 


Dept* Mhi. Res. Stem* Lost 

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And Information on over 100 of the world’s leading ski resorts online 

Planning your ski trip? 

Traffic Controllers 
Call Strike in Greece 

ATHENS (Reuters) — Greek air 
traffic controllers announced that they 
would stop working this weekend, and 
seamen extended their strike against the 
government’s 1997 budget and tight in- 
come policy, union representatives said 

Controllers will strike on Friday and 
Sunday from 1 200 GMT to 1600 GMT, 
disrupting flights at Greek airports. 

The Panhellenic Seamen’s Federa- 
tion said Tuesday it would extend its 
strike, which has kept ships tied up at 
Greek ports, for another 48 hours, until 
Thursday night 

Pollution Alerts Called 
In 2 French Cities 

LYON (AFP) — Pollution from cars 
and industry triggered an alert for the 
second day running in two of France’s 
largest cities on Wednesday. 

Sulphur dioxide gas emitted by auto- 
mobiles built up in Lyon on Wednesday 
and an official anti-pollution watchdog 
issued an intermediate-level alarm, re- 
commending that children, asthmatics 
and others suffering from respiratory 
problems avoid intease physical or 
sporting activity outdoors. 

In Marseille on Wednesday, the au- 
thorities ordered schools to limit chil- 
dren’s activities because of sulphur di- 
oxide pollution. 

U.S. Will Order Boeing to Alter 
Rudder System of Boeing 737 

Cashed tr, <tar Sufi Fran DtiptmJta 

WASHINGTON — The Federal 
Aviation Administration intends to or- 
der Boeing Co. to retrofit the rudder 
system of its Boeing 737 aircraft to help 
prevent any inadvertent movements that 
could throw planes into a roll. Vice 
President AI Gore said Wednesday. 

Agency officials said the modific- 
ations had followed investigations into 
two crashes of the aircraft in which 
uncontrolled rudder movements may 
have been involved. The causes of the 
accidents in Pittsburgh in 1994 and Col- 
orado Springs. Colorado, in 1991, in 
which the planes rolled over and 
plunged to the ground without their pi- 
lots having reported any problems, have 
not been officially determined. 

Last week, the aviation agency 
ordered that pilots flying these planes, 
the most widely used airliners in the 
world, be given extra training in how to 
handle such unexpected rolls. 

Mr. Gore said Boeing hart agreed to 
make the changes and bear most of the 
cost, with the airlines covering the bal- 
ance. The Federal Aviation Adminis- 
tration said it was preparing to issue a 
series of directives formally requiring 
the changes. 

“These changes can and should be 
made without delay,” Mr. Gore told the 
closing session of a conference on avi- 
ation safety and security. 

The aviation agency said the actions 
were part of its review with Boeing of- 


tiie flight-control system of the widely 
used 737. The modifications are being 
developed by Boeing for inclusion in its 
new 737 and are to be retrofitted in the 
approximately 2,700 of the 737 jets now 
flying worldwide. The agency said the 
changes would cost $126 million, of 
which $50.4 million was estimated to 
cover planes used by U.S. carriers. • 

The aviation agency’s review found 
no design flaws in the 737 that could 
have caused the Pittsburgh and Colorado 
Springs accidents, but it said it had iden- 
tified some disoepandes that could have 
led to reduced pilot control of the craft 

The planned changes to the rudder 

• Redesigning the power-control unit 
to eliminate the possibility of the rudder 
jamming or malong sudden movements 
not directed by the pilot 

• Replacing the “yaw damper’^ ’ mech- 
apism mat is supposed to prevent abrupt 
side-to-side movements of the airplane. 

• Reducing hydraulic pressure in the 
rudder control, also known as a rudder 
limiter, to reduce rudder movement and 
ease pilot controL 

• Installing redesigned bolls an the 
rods that control rudder movement 

The aviation agency ordered tests fra: 
all 737s in November after a rudder- 
control valve jammed in a laboratory 
experiment under extreme conditions. 
Toe tests have been completed ami up 
problems were found, it said. f 

(Reuters, APT 

Forecast for Friday through Sunday, as pnwided by AocuWealher. 







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North America 

attady cold afa-wfl tfrfp the 
Grsat LaJces, Northeast 
■nd ml a- Atlantic through 
ttw woetentf, aven nortn- 
wn parts ol the Southeast 
wWbfleokt The northern 
and central Plato wfli turn 
less harsh as the core of 
the arette air shifts into he 

Northeast TranquD in the 
Rockies and the WteL 

North America 

^ Uowmwttf g 

Tempe rat ures wfll remain 
near- to just above normal 
across most of Europe 
through the weekend. 
Western Europe, Including 
London and Parte, wffl be 
uneatrtad each d«y tvflft the 
Brtfish Isles turning adder 
Sunday. Eastern Europe 
and western Russia srlU 
■Qty mainly dry. 


Cold and maHy dry aeon 
northeastern China, 
Manchurt* and both Kbro- 
aa through the wee ken d. 
Near- to above-normal 
tsmperahirea fn Tokyo 
through Saturday, then 
turning cooler Sunday; 
showers ore possible Sat- 
urday. Seasonabta tn Hong 
Kong wflh a shower perf 
We each day. 

Ho CN Hen 






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llV; * — 

h ^ How S 



Democrat Seems to Take Beat Off Gingrich 

By Tom Ken worthy 
Washington Post Service 

““ a radio talk 
i:. M^,T en5 .. 0pened wt& die sound of 

> S^PS 100 ™ 18 toying, everyone knew 

: ; £ SfL 11 * Was a suddenly elusive 
■ Vi ( : • yeraocratic congressman. 

P 01 ^ 1 ^ career that has 

- ■■: spanned 14 years as a state WScipf^ 

and four terms in die HouseTRepre- 
. sentanve Jim McDermott has often been 

• ^ but perhaps never like cow. 

• r «..- television crews are staking , out his 
~v. "ome and his district office downtown. 

- . -Back m the other Washington, Repub- 

• - ... ^ bellowing for his scalp. 

' * - '* **■ McDermott has, for the moment, 

■■■*■-• - wcome the central focus of the pro- 
" •■••;.' tinged ethics inquiry into Newt Gin- 
•gnch, the speaker of the House. 

• : ' A Florida couple who taped acellular 
• - telephone call involving Mr. Gingrich. 

his lawyer and several other Republican 
-• .--7 %te*ters say they gave the tape to Mt. 
'McDermott. The lawmaker, in mm ^ n . 

- fiears to be the unidentified “Demo- 

' ^V* static congressman” cited by The New 

• York Times as its source for tbe tape, 

. 7 although Mr. McDermott has not con- 

turned that. 

-.- /y “ It was a potentially illegal act. It is a 
' * ' federal crime to “intentionally inter- 

'tSept” telephone calls or “intentionally 
^ disclose” their contents if the person 
, . knows they were intercepted. So the 

-senior Democrat on the House ethics 
jeommittee is lying low while the FBI 
■ F jinvestigales how the conversation came - 
*• jlo be taqied and ended up in the 
■hands of reporters. 

j On Tuesday, Mt. McDermott said he 
- {would recuse himself from the Gingrich 

• -’4 jcase as soon as he was assured thatthe 
- ' .*■ jpanel would remain evenly divided be- 
- - -*■ {tween Republicans and Democrats. • 

• I Mr. McDermott is a psychiatrist by 
i .-ul* : {training, and some people here- have 

-■ -- {been engaging in abft of psychoanalysis 

— ■ >^bout his motives. The question Unger- 
v- ring is: Why would he leak the (ape to 
.y ^several newspapers, and do it in such a 

•clumsy way? 

; “This is the first really dumb thing 
.. ~ . ‘I’ve seen Jim do,” said John Carlson, a 
■ V"- iradio Calk show host. “And I say that as 

' ■a conservative who respects ms mind 
jand political skills. Jim usually doesn’t 
. {step in it like this. It shows he is so 
•bound and determined to nail tire speak- 
" : jer that he forgot the rales.” To the 

— — — {delight of Republicans and an guish of 

Democrats, Mr. McDermott, not Mr. 
Gingrich, has become the story. 

if fn \ — m 

,ein £ ; 


- y- ; AnUnconveniionalOffica* 

■ % Officer Shlomo Koenig knows 
. r .- • that when -the time comes to draw 

Ws gun, a suspect is as likely to 
. . : ■ '' ; . respond with incredulity as with 
• fear, Joseph Berger reports in The 

. • • New York Tunes,' 

j ; Officer Koenig is a rabbi, and 
. .. ; r probably the only Handle lew to 

‘ . . serve as a police officer in the 
.. 1‘. - ■ . United States. Since August, he has 

: beat a part-tinae member of the. 
{ ■ >. sherifFs department in Rockland 
County, north .of the New York 
: : suburbs. 

• ^ A religious waiver permits him 
•••■■ . i to keep hb broad black beard and 

■- nearly foot long si delocks, even in 

^ •; uniform. . . 

: - “It oould, in. certain situations, 

^ take a tittle more convincing that 
• • r ', ‘i I’m for rc^l,” he said. 

... - r ". : ; The rabbi, who funs a plastics 

*. business, joined the force after a bit 
of arm-twisting from Sheriff James 

: with a diploma and marksmanship 
. award rrom the state polio; 
academy. Officer Koenig sees Ms 
chief job as bslpixig explain the 
distinct ways of the Hasiahn to the 
police and the ways of the police to 

• theHasktim. •" . 

For example, when a Hasidic 
- mm -refuses to accept a traffic ticket 
from the hand of a female police 
officer, asking her instead to leave 
" it on his car, me rabbi explains that 
the man is not. being rude but is 
obeying a Hasidic prohibition 
1 against casual physical contact be- 
tween the sexes. 

; ShortXakes 

Both of Jim Crittenden s pickup 

■ trucks were stolen three times from 
outside Ms business in a heavily 
traveled suburb of Sacramento; 
California, an area notorious for ns • 
auto-theft rings. He had thought 
about installing alarms but had pro- 
crastinated “Sometimes.” he sai£ 
“you have to learn the bard way. 

After recovering *e tracks, aid 
what millions « mher people are 
. doing. He installed hig^fech ante 
seemly systems; c»se Sow. ™ 

' devices issue an t^-pteremg alarm 

■ if activated and immobilize the.ig~ 

; nitions if would-be thieves figure 

• out a series erf random encryption . 
1 code s Thj^alsoan tomatiowll ylodK. 

1 and unlock windriws and doors. In 

1995, 13 million vehicles were 
stolen nationwide at a -total cost of 
$g bfltipn, accenting to msta^ce- 
indnstry figures- Motorists 
$675 million &tu yemcuetectromc 
gadgets to protect fbeir car&and 

tracks and experts say 

will grow to $13 billion by 2000 . 

“This is a gift from God if you’re a 
Republican,” said Reed Davis, chair- 
man. of. the King County Republican 
Parc?, whohas urged Mr. McDermott to 
resign. “If someone had said design a 
crisis, I couldn’t have done as well. Not 
only does this discredit the Democratic 
leadership on the ethics committee, this 
basically reveals ■ toe whole effort 
against Newt as a witchhunt.” 

Other than telling the Seattle Post- 
Intelligencer he had been “tenacious” 
in adhering to House rules, Mr. Mc- 
Dermott has bad tittle to say about his 

CM Tuesday, with a half-dozen tele- 
vision news crews staked oat in the 
hallway, Mr. McDermott was se- 
questered in his district office here, 
ducking toe suddenly intense naripnpl 
spotlight. He emerged for a brief mo- 
ment Tuesday to release a written stme- 
rnent that heis recusing himself from the 
committee’s “charade” of an inquiry 
into Mr. Gingrich’s behavior, and will be 
malting no further comment. 

An unabashed, old-line liberal from 
one of toe nation’s most progressive 
congressional districts, Mr. McDermott 
is known here as an accessible and ef- 
fective rewesentative forSeaide. In the 
District of Columbia, he is viewed as an 
outspoken advocate ' for traditional 
Democratic amstituencies from his 
coveted position on the Ways and 
Means Committee. 

Republicans in Congress say they 
will settle for nothing less than Mr. 
McDermott’s resignation or expulsion 
from the House, and Democrats are 
chagrined, to say the least. 

But here, in a district where he has 
never jpolled less than 71 percent of the 
vote m a general election, Mr. Mc- 
Dermott is unlikely to soffer much polit- 
ical damage from the tape episode, 
strategists in both parties agree. 

“Fidel Castro will win in toe^ 7th Cod- 
gressional District before a Republican 
will,” said Mr, Carlson, the radio host 

Aft.I^visagreeto i; T^ishte 
for life if he wants it” 

A reflection of toe affection for Mr. 
McDermott, said the chairman of toe 
King County Democratic Pam, Daniel 
Noitan, is the outpouring of calls to 
patty headquarters from people asking, 
“Why is the press talking about Mc- 
Dermott instead erf talking about toe 
Gingrich case.” 

Indeed, as reporters staked out Mr. 
McDermott’s^ office, a supporter arrived 
with a bouquet of flowers. “They ought 
to give him a medal,” she said. 

•rT-'f ■: ; '=•> 

Manr tC p p ow ya/Agme Rancc-Picoe 

PLAQUE ATTACK — A tablet battering President Abdaia Bucaram of Ecuador as he and President Alberto 
Fujimori of Peru dedicated it during the inauguration of an engineering project in Vilcashuaman, Peru. 


Doctors Sue Over Marijuana Law 

SAN FRANCISCO — A group of doctors and patients 
advocating the medical use of marijuana has sued senior 
officials, of the Clinton administration to block the gov- 
ernment from penalizing doctors who recommend the drug 
to sick people under a new California law. 

Ihe class-action suit, filed Tuesday in a federal court here, 
says toe administration's plan to prosecute or strip pre- 
scription licenses from doctors who endorse the drag for 
those with such illnesses as cancer and AIDS intrudes on the 
doctor-patient relationship in violation of toe Fust Amend 

“The lawsuit doesn't deal with whether marijuana is 
efficacious as a medicine or not or whether people should be 
smoking itor taking it,” said a plaintiff. Dr. Marcus ConaoL 
“The suit is all about freedom of speech.” 

The suit opens a new front in a legal and political battle 
that has raged since November, when voters in California 
and Arizona approved ballot initiatives that relax laws 
against toe possession of drugs for medical purposes<AT71 

A Precursor to the Gingrich Call 

WASHINGTON — Newt Gingrich is not the first mem- 
ber of Congress to be burned by blabbing on a cellular 

That dubious honor belongs to former Representative 
Bill Saxpalius. a Texas Dem ocraL Before Labor Day in early 
September 1990, Mr. Saxpalius decided to take a break from 
his re-election campaign and play a little golf in his home- 
town of Amarillo. While out on the links, the divorced 
lawmaker pulled out a celluar phone to make a date with a 

20-year-old woman whom he complimented as being 

According to a tape of the call made by an eavesdropping 
75-year-old ham operator with Republican sympathies, the 
woman mentioned that she was looking for a job. ' 

“Let me help you. I've got all kinds of contacts in the job 
2 have,” toe Democrat replied, adding it was his job to help 
people and suggesting it might be fun for them to take a trip 
to Cancun, Mexico. 

Tapes and transcripts of the lawmaker's importunings 
soon found their way to every news outlet in Amarillo, 
courtesy of toe ham operator and a political consultant trying 
to help Mr. Sarpatius’s underdog Republican opponent. 

The representative called in the FBI and demanded an 
investigation, later describing the illegal interception, re- 
cording and distribution of his private conversation as 
“another Watergate. ’ * 

The Amarillo media, though, refused to broadcast the 
tape. Its content did not become a serious campaign liability 
for Mr. Sarpalius. who was easily re-elected. He lost his seat 
in 1994. 

As seems to be occurring this week with Mr. Gingrich's 
overheard call, the focus of the Texas eavesdropping story 
shifted quickly from the juice of the purloined conversation 
to details of bow that juice was stolen, who did the stealing 
and to whom it was delivered. f WP) 

Quote /Unquote 

President Bill Clinton, on his reaction to toe partisanship 
in the ethics case involving the House speaker. Newt 
Gingrich: “I want it to be over. The American people have 
given us larger responsibilities. Way too much time and 
energy and effort is spent on all these things.” f AP) 


Peru Rebels 
Declare They 
Won’t Kill 
The Hostages 

Compiled bi Ow Sutffrm DapaMa 

LIMA — Peruvian rebels holding 74 
hostages at the Japanese ambassador’s 
residence here said Wednesday that they 
did not plan to kill any of their captives. 

“It is not in our minds to cany out 
executions or to give any ultimatums,” 
a rebel spokesman, believed to be toe 
Tupac Amaru Revolutionary Move- 
ment leader, Nestor Cerpa Cartolini. 
said in a radio conversation. 

“We have never spoken of execu- 
tions,” he added. 

But toe spokesman also said toaz, 
with no tangible progress in negoti- 
ations, the crisis was “being pushed 
toward a military end.” 

He said that the rebels were handling 
their captives with “a treatment respect- 
ful of their dignity.” 

He also said that gunshots from the 
compound were a response to threat- 
ening police maneuvers outside, includ- 
ing approaches to the residence. 

“The poaple detained know that,” he 
said. “This forces us to take decisions in 
the heat of the moment." 

The rebels also said that they ac- 
cepted toe government proposal for a 
peace commission to mediate the crisis. 
It was the first response to the proposal, 
made Sunday by the government me- 
diator, Domingo Palermo, and toe first 
sign of progress since seven hostages 
were freed on New Year's Day. 

The transmission was picked up after 
the rebels put a sign in a window at the 
ambassador’s residence telling a local 
television station to tune in to a radio 
frequency. The transmission included 
remarks from a man identifying himself 
as Nestor Cerpa and a man who said he 
was toe Peruvian foreign minister. Fran- 
cisco Tudela, a hostage. 

The man claiming to be Mr. Cerpa 
said the agreement to set up a com- 
mission “should be addressed without 
any obstacles” so that “the situation 
can be solved as soon as possible.” 

The rebels said that all issues must be 
open for discussion in the talks, in- 
cluding their key demand that Peru free 
hundreds of their jailed comrades. 

They accepted the participation of toe 
archbishop of Ayacucho, Juan Luis 
Cipriani, and the Red Cross. They also 
said they wanted Guatemala and a Euro- 
pean country to take part. 

The man believed to be Mr. Tudela 
said he and toe other hostages were 
“healthy and in good spirits.” 

(Reuters, AP) 

Of Capital’s Municipality 

By Michael Janofsky 

• New^Tort Times Service 

- WASHINGTON — The White 
House has unveiled a sweeping plan to 
rescue toe UJS. capital by tzanstextingto 
the federal government many respon- 
sibilities that toe city government 
proved doable to perform. 

After two years of efforts by federal 
lawmakers and local leaders to solve the 
problems, the administration proposals 
would fundamentally change the federal 
government's relationship with toe city 
for toe first time since toe District erf 
Columbia won home rule almost 25 
years ago. 

The changes, which White House of- 
ficials said would be included in the 
1998 federal budget President Bill din- 
ton sends to Congress next month, 
would include relieving the city of an 
assortment of responsibilities, such as 
operating prisons, collecting taxes and 
mmroying roads. 

The federal government would also 
assume an unfunded pension liability of 
$43 billion for city workers and would 
increase the government’s share of 
Medicaid expenses. 

While the White House proposals 
would take over some of toe respon- 
sibilities that are chaining the city of 
almost 31 billion a year, they did Dot 
address other issues that have contrib- 
uted to toe decline of the city, such as 
high crime rates and poddy managed 

Foremost among such Issues is the 
exodus of residents and businesses to 
the suburbs of Maryland and Virginia, 
which continues to shrink toe city’s tax 
base. Washington's population of 
543,000 presidents is its lowest since 

The adinfftis r rflrinn plan is toe latest 
in a series of efforts to save toe capital 
from virtual insolvency and to recon- 
struct Hs shattered public services, 
Since 1995, toe city has operated un- 
der 1 a federal control board created to 
oversee ail aspeds of the local gqv- 
emmeot So far, ft has reined in spending 

of moa powers, pushed aside senior ad- 
nnoistraiors and reduced toe aze of city 

But like many of the city’s elected 
officials, toe control board members 
argued for a greater federal Hole to re- 
lieve toe city of responsibilities that are 

normally assumed by state . govern- 
ments. The plan announced. Tuesday, 
administ ration officials said, was me 

first step- , ; 

Overall, the administration plan 
would cost the federal government $3.9 
billion over five jrears, or about $339 
million mare than it would pay toe city 
under toe existing anangement of an- 
nual payments. 

‘‘This is without a doubt the boldest 
plan for toe District that any president 

has ever proposed,” said Franklin 
Raines, director of the federal Office of 
Management and Budget “We want to 
revitalize toe city as toe nation's capital, 
and we want to improve prospects for 
home rule to succeed.” 

Local officials, including Mayor 
Marion Barry Jr., said the White House 
plan would strengthen home rule by 
making city government more efficient 

f Dlishmg toe city's image for Wall 
beet investors and perhaps ending the 
need far congressional subcommittees 
to approve toe city budget each year. 

Mr. Barry called the plan “a good 
first step.” But he tempered his ap- 
preciation by criticizing the president 
for waiting so long to act 

“In toe last four years he has not done 
very much to help the District,” toe 
mayor said. “This is a beginning to 
make up fix- that lack of action.” 

Away From Politics 

• The replacement of the right engine 

had nothing to do with the crash five 
days later of a Comatr commuter plane 
near Detroit that killed aQ 29 people 
aboard, toe airline said. Investigators 
found that the pilot of the plane that 
nose-dived in a snowy field last week 
had ap p aren t ly shut down the engine in 
question. (AP) 

• Los Alamos National Laboratory, 

one of the top federal nuclear research 
facilities, agreed to let an independent 
auditor determine whether the lab is 
complying with limits on radioactive 
emissions set by the Clean Air Act^ 
ending a three-year legal battle with a* 
New Mexico citizens’ group. (WP) 

• A tunnel should he built beneath 

New York Harbor to carry xafi freight 
efficiently between toe city and the rest 
of the country. Mayor Rudolph Giuliani 
has proposed. He also said the city 
would study transforming toe water- 
fronts of Brooklyn and Staten Island 
into a port. He added that an analysis of 
the economics showed the benefits 
would outweigh costs by as much as 
$1.6 billion. • (NYT) 

• A 65-year-old taxi driver was found 
fatally shot behind toe wheel of his 
yellow cab. New York police said. His 
murder marked the first time in three 
years that toe driver of a yellow cab was 
killed in the line of duty. Several years 
ago, a spate of shootings prompted new 
safety precautions in the cabs. (NYT) 

•Hundreds of errant buffalo were 
chased home by snowmobiles and heli- 
copters near Fort Pierre, South Dakota. 
About 1 ,500 buffalo had escaped from a 
ranch by walking over fences covered 
by towering snowdrifts. (AP) 

Ab. AbdaU Bucaram Ortiz 
Resident of the Republic of Ecuador 
1996 - 2000 


The Government of Ecuador, received technical and financial assistance from the Ecuadorian Foundation, the 
Guayas Transit Commission, the Andean Development Corporation, Guayaquil's Chamber of Construction, the 
Ministry of Finance and the National Council for the Modernization of toe State, in order to provide a quality 
service for all users of the “Jaime Roldos Aguilera” Bus Terminal in Guayaquil. 

Once the preliminary studies were received toe Guayas Transit Commission on October 10, 1996 published the 
announcement for the international public bid for service, rehabilitation, construction, maintenance and 
operation concession of toe Guayaquil Bus Terminal. 

The above mentioned concession will last 21 years. The investment represents approximately U.S. 16 million 
dollars, and toe return rate 18% approximately. 

The concession contract covers the following: 

* Structural repair of the building and construction of platforms for |l 

the use of buses in the lower level ami final waiting room. H 

911 Development of profitable areas. I 

* Administration of the Bus terminal. I 

* Planning, control and coordination of all operations related to 

passengers and cargo. H 

* Total maintenance of the Guayaquil Bus Terminal. Mf 

* Cleaning of the building, indoors and outdoors, including gardens.. I 

* Performance of surveillance and com plementary services. I 

The. pertinent bidding documentation can be acquired for US$5,000.oo. Contact the Guayaquil Transit 
Commission in Guayaquil, (Ave. Chile y Cuenca, Phones: (5934) 414555, 413229, FAX (5934) 414554, 
402784). The due date for toe reception of the required documents is February 6, 1 997. Offers will be received 
until April 8, 1997. 

Aiiy additional information may be requested to toe National Council for the Modernization of the State, 
Av. Juan Leon Mera ff 130 y Av. Patria, Quito. Ecuador, Phone: (5932) 509432, 433, 435, FAX: (5932) 222501 , 
Art. Sectorial Transportation Program. 

Sr. Onar Quintana Baquerizo 

tng. Leonardo Escobar Bravo 
Executive Director 


National Council for the Modernization of the State 

QMW BAKMiv, Our eemmittfU/U! 

Ing. Miguel Salem Dibo 

Lcda. Marfa Auguste Cortazarde Vanegas 
Alternate President 

Ab. JosA Azar Am at 
Executive Director 



Light Shed on Ouster 
Of Immigration Chief 

But Panel Still Wants Patten to Testify 


HONG KONG — The Hong Kong 
government Fought back 'Wednesday in 
an affair surrounding a former immi- 
gration chief, saying he was forced out 
because of anomalies over a housing 
loan and business dealings and not be- 
cause of secret ties to China. 

But it failed to calm the furor com- 
pletely. and the panel inquiring into the 
affair said it was “only a matter of 
time’* before it would summon Gov- 
ernor Chris Patten. 

The secretary for the civil service. 
Lam Woon-kwong. said that Laurence 
Leung, who retired abruptly as immi- 
gration director in July, had been in- 
vestigated by the Independent Commis- 
sion Against Corruption, an anti-graft 
agency with wide-ranging powers. 

“The ICAC investigation uncovered 
information which caused us to have 
grave doubts on Mr. Leung's suitability 
to remain in the service,’' Mr. Lam tola 
a Legislative Council select committee. 

But he denied press reports that China 
had been given secret data by Mr. 
Leung's service, which is responsible 
for issuing British passports to Hong 
Kong people and residence permits to 
mainland political dissidents. 

Mr. Lam said that the anti-graft 
agency's inquiry had failed to find ev- 
idence warranting a criminal case. 

He said, however, that it had un- 
covered “incidents" showing that Mr. 

Leung bad “failed to meet the high stan- 
dards of conduct, discipline and integrity 
we expect of a head or a department* ’ 

In London. Governor Patten said 
Wednesday that the Hong Kong im- 
migration department had not been 
tainted by the scandal. 

“We have got no reason to believe 
that the integrity or security of the de- 
partment have been affected in recent 
years. * ’ he said after meeting with Prime 
Minister John Major. 

Mr. Lam read out to the Legislative 
Council committee a draft letter written 
months ago mentioning disciplinary 
questions and stating that Mr. Leung 
had used a 1.76 million Hong Kong 
dollar ($228,000) government housing 
loan to buy property in Canada. 

His statement marked a reversal of the 
government’s public stance on die case. 
Mr. Leung and the government initially 
said that he had retired for “personal 
reasons." But Mr. Leung, testifying last 
week, backtracked and said he had been 
forced to resign. 

Mr. Leung, 55, who served fey seven 
years as head of immigration, held, a 
highly sensitive post, with strong security 
implications in die delicate period before 
die handover of the British colony to 
China on July 1. He was responsible for 
the issuing of passports and visas as well 
as for immigration and border controls. 

These were among the alleged an- 
omalies, Mr. Lam said* 

Rabo; Npf Realm 

Mr. Leung talking with reporters outside his home Wednesday. 

• Mr. Leung failed to report that in 
1991 he sold a home in Canada purchased 
with the 1.76 million dollar government 
housing loan. The loan was not repaid 
until April 1996. 

• He failed to make full disclosure of 
investments made jointly with a member 
of the legislature and failed to disclose 

the relationship to the government 
• He failed to disclose an investment 

of 100,000 dollars in a company that 

sought advertising contracts in China, 
which required government appro vaL 
Mr. Leung told the investigators that 
be had forgotten to make the disclos- 
ures. Mr. Lam said (AFP, Reuters) 

U.S. Lost Can 
Of Plutonium 
In Vietnam 


WASHINGTON — Americans 
on a dangerous rescue mission mis- 
takenly left a small canister of 
plutonium, a key ingredient of nu- 
clear weapons, in Vietnam as the 
Communists marched to victory in 
1975. the U.S. Energy Department 
disclosed Wednesday. 

Making public previously secret 
documents about the 80 grains, or 
about 3 ounces, of missing plutoni- 
um. the department said U.S. of- 
ficials were working with the In- 
ternational Atomic Energy Agency 
to verify its status “and take any 
necessary action.” 

It said Vietnam, a signer of the 
treaty aimed at curbing the spread 
of nuclear weapons, had been “re- 
sponsive” to U.S. inquiries. 

The United States sent the 
plutonium to the former South Vi- 
etnamese government in 1962 for 
use in a research reactor in the Cen- 
tral Highlands resort city of Daiat. 
the department said. It said the ma- 
terial was apparently still at DalaL 
The declassified documents 
showed that two U.S. volunteers 
reached Daiat on a mission to re- 
trieve the material late in March 
1975. By that time, the city was 
under fire on three sides by Viet 
Cong guerrillas and North Viet- 
namese regulars. 

But as sniper bullets ricocheted 
through the reactor area, the vol- 
unteers mistakenly retrieved a sim- 
ilarly sealed radioactive source, 
leaving the container with the 
plutonium behind, the account said. 

Killer Snow and Cold 

34 Dead in the Far West of China 


BEIJING — - The fiercest snow- 
storms in 30 years have blanketed 
parts of China’s far-west Xinjiang 
Uygur region, killing 34 people and 
cutting off 100,000 residents, offi- 
cials said Wednesday. 

Snowstorms since December have 
also caused the deaths of nearly 1 
million livestock animals, the Civil 
Affairs Ministry said. 

The storms in die Altai Mountains 
of the autonomous region, along die 
border with Mongolia, have sent tem- 
peratures plummeting to minus 36 
degrees centigrade (minus 33 Fahren- 
heit), ministry officials said. 

The storms dumped more than 
three times the usual snowfall in 
many areas, the ministry said, while 
in the worst-hit areas the snow was up 
to six or nine heavier than the av- 

Altogether 320,000 people had 
been affected by the snowstorms, the 
ministry said. 

The economic loss had exceeded 
247 million yuan ($30 million dol- 
lars), it added. 

Worse weather was to come, the 
ministry added. 

“Meteorologists are forecasting 
more blizzards and the situation could 
well worsen in die near future,” it 

At least 34 people, most of them 
herders, were dead, including two 
gold miners who froze to death. Four 

, to 

wfao raise 

people were missing, and 18 had 4- 
snffered severe frostbite. 

The freezing temperatures 
heavy snows also caused the collaps 
of houses, officials said, which led t 
tire deaths of many animals, mostly -j 


ulated region are nc 
cattle, goats or sheep. 

Up to 5,000 families living in the 4 
Altai prefecture were without food, 
and more than 30.000 people were 
short of food, official reports said- 

In Altai and another prefecture. 4 
Bayingoleng, a further 1 .4 million J 
livestock faced starvation unless sup- 
plies could be flown in within a 

Transportation, telecommunica- 
tions and electrical links with the pre- J 
features have been seriously disrup- -4 
ted, the ministry said. 

But a Xinjiang official reached, by 
telephone played down the crisis. 

“Compared with normal years, 
this year’s winds and snows really 
don’t amount to much,” said the of- f 
ficial from the Xinjiang secretariat, 
who gave his surname as Jiang. 

People’s Liberation Army soldiers ■ 
found 25 geological surveyors who j 
had been cut off for nearly lOdaysby 1 , 
the storms, the Xinhua press agency 
reported. The military had air- 
dropped food and medicines, as well J 
as a radio and generators to tire sur- * 
veyors. (Reuters, AP, AFP) 

KOREA: Workers 9 Show of Force Fizzles , and Government Hints at Leaders 9 Arrests 

Continued from Page 1 

nearing its end. Meanwhile, Choi By- 
ung Guk, a senior prosecutor, said at a 
news conference Wednesday that labor 
unrest could be taken advantage of by 
Communist North Korea and tnar doc- 
uments espousing North Korea’s philo- 
sophy had been found at sites of worker 

The specter of North Korea has been 
used often by the South Korean gov- 
ernment to justify crackdowns on dis- 

Union leaders, meanwhile, said that 
more than 700.000 workers participated 
in the strike Wednesday, the most since 
the unrest began on Dec. 26- 

About 20,000 workers gathered at a 

park in the largest demonstration to dale. 
And in what was probably the most 
violent clash so far, demonstrators wield- 
ing iron bars and throwing rocks clashed 
with riot policemen firing tear gas. 

But the numbers of strikers is some- 
what misleading because, for many, the 
“strike” consisted essentially of a long 
lunch hour to attend a rally. 

Asked why they were not striking or 
striking only part-time, some workers 
said they did not want to inconvenience 
the public. 

Others said they did not want to hurt 
their companies, since their grievance is 
with the government. Still others said 
they needed the money. 

The expansion of tire strike stemmed 
in part from the re-entry into the 

walkout, for two days only, of the coun- 
try’s more moderate labor organization, 
the Federation of Korean Trade Unions, 
which had not been striking since the 
New Year holiday. 

The federation is officially recog- 
nized by tire government, unlike tire 
more militant confederation, which has 
been striking continuously since the 
labor law was enacted in a secret session 
of Parliament, at which no opponent of 
the legislation was present. 

■ Battle at a Hyundai Plant 

In the southeast city of Ulsan. Hy- 
undai workers smashed picket lines to 
keep Smith Korea's largest dockyard 
open. Reuters reported. They ran a 
gauntlet of unionists at the iron dock- 

yard gates who lashed out at the strike- 
breakers with fists and threw buckets of 
yellow paint over their blue overalls. 

It was the most dramatic indication 
that tire hearts of ail rank-and-file union 
members were not in the fight agains t 
the new law. 

And in a sign that Seoul was brushing 
aside world criticism of its tough stance, 
an international labor leader said the 
government had threatened to deport 
him and three colleagues if they had any 
more contact with union leaders. 

Marcello Malentacchi, the head of 
the International Metalworkers’ Feder- 
ation, said an immigration official had 
given him a letter outlining laws he and 
three other foreign labor leaders would 
violate if they met union leaders. 

PERRY: Defense Chief Thrives on Clarity 

Continued from Page 1 

us in positions of authority should speak 
softly and cany a big stick,’’ the pres- 
ident said Tuesday. “Bill Ferry spoke 
softly and carried the biggest stick in the 
world, with great care and to great ef- 

In the rush of praise, it was easy to 
forget Mr. Perry was hardly Mr. Clin- 
ton's first choice for the job. 

The president’s first defense secre- 
tary, Les Aspin, was eased out, and 
White House aides boasted at the time 
that Mr. Clinton was looking to replace 
him with “a star.” The president nom- 
inated Admiral Bobby Ray Inman, re- 
tired, but he withdrew at a bizarre news 
conference in which he claimed polit- 
ical enemies were out to get him. Only 
then did Mr. Perry, who had been in- 
fluential but out of public view as Mr. 
Aspin’s deputy , agree to take the job. 

Mr. Perry said tire administration had 
rejected “isolation and apathy' ’ in favor 

of “engagement and action” and 
stressed the importance of keeping 
troop morale and readiness high in an 
era of reduced military spending. 

General Colin L. Powell, who retired 
as chairman of the Joint Chiefs of Staff, 
said Mr. Clinton’s problems with the 
military had been “overblown" but ac- 
knowledged. “Bill Perry contributed to 
the continued bonding between the mil- 
itary and their civilian political lead- 

The roost recent example of Mr. 
Perry’s penchant for plain speaking 
came this au tumn. As the administration 
was trying to play down the likelihood 
that the NATO mission in Bosnia would 
extend beyond a December pullout, Mr. 
Perry staled bluntly that an allianoe 
“follow-on" force was likely. He was 
right, and Mr. Clinton approved the 
force a week after the election. 

He has “enormous integrity and is 
very direct.” and he answers tire ques- 
tions be receives, said the White House 

roafcftxiB T«oa»A*™oo ft*nca-Ptrw 

Mr. Perry, conferring with the Foreign Minister Ynkihiko Ikeda of 
Japan, brought a brisk and decisive management style to the Pentagon. 

press secretary, Michael McCurry, 
adding that sometimes the most effec- 
tive “articulation of public policy is to 
tell the truth slowly.’ 

‘ ‘He never got anything wrong,” Mr. 
McCurry said of the outgoing defense 
secretary. "He just sometimes got 
tilings too quickly.” 


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JOHANNESBURG — Angrily re- 
jecting U.S. warnings over a proposed 
arms deal with Syria, President Nelson 
Mandela said Wednesday that South 
Africa would deal with anyone it wanted 
to, regardless of outside pressure. 

“We will conclude agreements with 
any country whether they are popular in 
the West or not, "he said in Johannesburg 
a week before the cabinet is due to make 
a final decision. “And that is what we are 
likely to do in this case.” 

“The enemies of countries in the 
West are not oar enemies,” Mr. Man- 
dela added. 

The United States said Monday that it 
was extremely concerned that South 
Africa planned to sell Syria $641 mil- 
lion of aim-enhancing equipment for 
Soviet-made tanks. Syria is on die U.S. 
list of countries that support terrorism. 

Washington threatened to cut off aid 
— worth $1 10 million this year — if 
the deal went ahead. But Mr. Mandela 
said such pressure would not work. 

“We wEU never allow any support or 

assistance from any country, no matter 
bow powerful it is, to dictate oar foreign 
policy, cor allow any country to violate 
our sovereignty and undermine our na- 
tional pride,” be said. 

The president said it would be im- 
moral to abandon countries that sup- 
ported him in the fight against apartbmd 
“on the advice of countries that were 
friends of the apartheid regime.” 

South Africa, like others, he con- 
tinued, would sell weapons to countries 
even if they did not share the same 
values. * ‘The only provision we make,” 
he said, “is that our arms should not be 
used to disturb the peace in any part of 
the world.” 

He said that a statement Tuesday by 
his Foreign Ministry, widely regarded 
as an attempt to calm the row, was by no 
means a sign of “backing down.” 

The ministry said that any deal for 
what it teemed “software” was not 
likely to be concluded before 1999 and 
that South Africa was not alone — three 
European countries were also bidding for 
the business, ft declined to name them. 

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Malaysia Prohibits 
Nuclear - Waste Ship 

KUALA LUMPUR — Malaysia ■ 
banned a British ship carrying re- 
cycled nuclear waste from Ranee 
to Japan from its waters Wednes- 
day. the environment minister 

The ship, the Pacific Teal, left 
the French port of Cherbourg on 
Monday and bad charted a course 
around the Cape of Good Hope in 
Southern Africa, across die Indian 
Ocean and throu gh the Southwest 
Pacific, die French reprocessing 
company Cogema said Tuesday. 

The ship is expected to arrive at 
the Japanese port of Mutsu 
Ogawara in mid-March, the state- 
owned company said. 

• Malaysia’s- -Foreign Ministry 
will seek assurances from Tokyo: 
Thar the ship will notsail through 
waters under Malaysian control, a- 
semor government official said. 

• Malaysia claims a 200-mile 
(320-kilometer) economic zone 
around its coastline. (Reuters) 

Bern to Aid Delhi -■ 
In Probe of Bofors «: 

BERN — Switzerland will give •- 
India secret bank documents linked r 
to a billion -dollar arms scandal > 
over Swedish artillery, justice of- : 
ficials said Wednesday. i 

They said India’s ambassador J 
would receive the documents from ^ 
die Federal Police Affairs Office on 
Jan. 21. 

The handover will take place 
seven years after India first asked * 
for tiie documents. The decision “U 
follows a final ruling by the Swiss 
Supreme Court on Nov. 26. < 

The case stems from India's $13 • 
billion artillery deal with Sweden's j 
Bofors arms manufacturers in 
1986. India had been trying to dis- ■- 
cover whether leading politicians xj 
took bribes in connection with the 
deal. After investigators estab- 
lished that Bofors paid millions of 
dollars into Swiss bank accounts, 
Indian police asked Switzerland tod 
provide details. 

The furor contributed to the de- 
feat in 1989 of the government led 
by Rajiv Gandhi. (Reuters) 

Beijing Loosens 
Internet Controls 


loosened controls barring 



users of the Internet from accessing 
foreign news sources bui is keeping 
watch for politically suspect content 
on the worldwide computer net- 
work, an official said Wednesday. 

Blocks imposed last year on In- 
ternet Web sites operated by CNN, 
the Wall Street Jo urnal and other 
news providers had all been re- 
oyecC specialists in Beijing said. 
China is eager to be part of the 
technological revolution , of which 
the Internet is part, but officials 
have long been concerned that the 
anarchic network could bypass 
strict co mmunist control of the me- 
dia and fuel dissent 1 


VOICES From Asia 

Jasyit Singh, head of India's In- 
stitute - for Defense Studies and 
Analyses, saying a resurgent ffrina 
had become die main worry of 
Asia's strategic planners: “ China 's 
rapidly growing strength along 
with its demonstration and read- 
iness to use assertive force, as the 
missile - firings abeam Taiwan 
showed, are likely to generate a 
worse-case scenario in defense 
planning.” (Reuters) 

ft **6 




^wiss Leader Apologizes to Jews 

Former President Recants His ‘Blackmail’ Remark, on Fund 

By Anne Swardsori 

Past Service 

; Swit2cdand-s fonner pres- 



^assetemWot MwilL *"* ^ 

• Ec °nttniicsRCiristerJeax^ 
annxraz, who held Switzerland’s rotat- 
es presidency until the end of 1996. 

a to A* president of the 
Worid Jewuh Congress, Edgar Bron- 

thatthe was *‘sony Iof&mded yoar 
reeangs as well as those of many rtJja- 

£*°P le concerned, particularly those of 
meJewish community at large.” 

Tpe apology came a day after the 
disclosure that a security employee had 

y. — ““«BranMnis,nomsnrea- 

aing old bank records. The bank said no 
client records had been destroyed. - 
' news came amid intensify ing gfu 
. forte in the United Slates and around the 
world to determine whether Swiss banks 
^ad held on to deposits bdongmgtoJews 
who later died in the Holocaust without 
attempting to compensate surviving ie~ 
tenves. The other question is whether 
Switzerland, a neutral country in the war, 
had played a role in ‘‘laundering” gold, 
artworks and other assets looted from 
Jews and others in nations conquered by 
Nate Germany. 

Mr. Bronfman, whose organization 

had begun discussing a boycott of Swiss 
banks, accepted the apology andsaid he 
looked forward to a ‘‘return to con- 
structive work.” He said the letter had 
“put tilings back cm track.” 
Investigations have begun in the past 
year to find out bow much of the banks’ 
dormant accounts may belong to heirs 
of Holocaust victims and to . whom the returned. The 
banks themselves have conducted, two 
internal audits and come op with about 
$30 million in d ormant accounts. Jew- 
ish organizations say the actual ammmf 
is in the billions of dollars. 

Last month, the Swiss Parliament ap- 
proved a law that allowed some ex-' 
ceptions to its tight bank-secrecy rules 
to grant investigators access to certain 

The law also ordered banks not to 
throw away any ardriValmateriaL It was 
just before the passage of that law that 
the security grand for Union Bank of 
Switzerland came across two containers 
of bank documents waiting to be shred- 
ded and turned them over to a local 
Jewish organization. 

“If Go3 puts these documents in my 
hands, then! have to do something,” the 
guard told Reuters on Tuesday. 

The organization tint received the 
documents, the Israeli-Hebrew Commu- 
nity of Zurich, said they included in- 
formation on loons from 1920 to 1906, 
jnefarfing loans to German co mpanies, 

transactions from 1930 to 

an far toe bank, said the material dated 
from 1 945, when Union Bank of Switzer- 
land bought Eidgenossesebe Bank, and 
that all cbem records were folded in with 
Union Bank of Switzedand records at the 
time. The material that was headed for 
the shredder at the decision of the bank’s 
archivist included no information per- 
taining to deposits, she said. 

“It was bank-related, not client-re- 
lated,” she said. 

Three investigations are being con- 
ducted into tiie wartime role of Switzer- 
land and its banks. The fo rmer U.S. 
Federal Reserve chairman Paul Vol- 
cker, working with the World Jewish 
Congress, is heading a team from six 
accounting finnsthai is to examine bank 
records to try to identify owners of 
dormant deposits; the Swiss govern- 
ment has authorized a commission of 
historians to search for the truth about 
Switzerland’s wartime' record, and a 
U.S. group is looking through American 
records on the same subject. 

Swiss officials in recent months have 
pledged assistance and cooperation. But 
some people have expressed a feeling — 
apparent in a newspaper interview with 
Mr. Delamuraz published Dec. 31 that 
led to the apology — that some unnamed 
interests seek to discredit Switzerland. 

Mr. Delamuraz referred to it as an 
effort toward the “demolition of the 
financial place of Switzedand.” 

jBulgarian Opposition Says It’s Ready to Negotiate 

Beleaguered Socialist Government Would Allow Early Elections 


SOFIA — The Bulgarian opposition, 
leading 10 days of street protests fueled 
by a deep economic crisis, said Wed- 
nesday that it was ready to begm talks 
with toe country’s beleaguered Socialist 

.1 “From this moment we begin ne- 
gotiations with the Socialists,” the lead- 
er of the Union of Democratic Forces, 
Ivan Rostov, said after a meeting of 
opposition leaders. 

Earlier Wednesday, the Socialists — 
the renamed fanner Communists — 
softened their stand against holding 
early elections, which has been deman- 
ded by the opposition, saying polls 
could take place before the end of toe 
year. .* 

. Mr. Kostov repeated the imposition's 
demand that no new Socialist govern- 
ment be formed under toe present Par- 
liament, implying that elections would 
beheld soon. V ; - -i. • 

; “If they accept our conditions, we 
guarantee that our talks will be trans- 
parent,” national radio qttoted Mr. ■ 

tions and for bailing out toe collapsed 
Bulgarian economy . 

The prospect of thathappening in the 
five days before his term ends seemed 
clouded Tuesday night, as the two 
parties announced hard-line negotiating 
positions that seemed likely to provoke 
more frustration in toe increasingly 
chaotic political and economic scene. 

Protesters, now in their second week 
of demonstrations, again swarmed to a 
rally Tuesday night in front of toe gold- 
domed Orthodox Cat&edraL 
Mr. Zhelev , aphilascyber whose anti- 
communist tract “Fascism” was waved 
and hdd aloft by street protesters in 1989 
in the last days of Communist rule here, 
said he would not “shirk” his con- 
stitutional obligation in his last days. 

'“I’ve tried to never deviate from, my 
constitutional powers and I am aware 

that emotions are not the best counsel in 
politics,” be said, referring to ins own 
(fistaste for tite SorialistParty as he satin 
his office beneath a portrait of the 19th- 
century Bulgarian hero. Vassil LevskL 
“But in this explosive situation, if I 
give the mandate now to the Socialist 
Party, it will all blow up, “he said. “The 
mood in the streets is definitely against a 
Socialist government.” This, he said, 
was largely because “financially, the 
country is going to the dogs.” 

Mr. Zhefev, a founder of the Union of 
Democratic Forces, an opposition party, - 
has beenin office since nuia-1990. Along 
with Vaclav Havel of the Czech Re- 
public and ArpadGoncz of Hungary, he 
is one of the long-running presidents of 
East Europe like them, be was a writer, 
though not of fiction, and like them he 
was banished fay the Communists. 

demanded Socialist guarantees that ne- 
gotiations not be turned into “a deal 
behind toe backs of toe Bulgarian 
people.” - ' 

. He repeated demands that new lead- 

A ers of the central bank be appointed and 

9 that an expert group be fanned to ne- 
gotiate with tbelntanational Monetary 
Fund and Worid Bank on introducing a 
restrictive monetary regime. Work on a 

Mayor vs. Russian Diplomats: 
Round 2 Begins in New York 

Wasfdngtim Post Service 

— Maybe toe New York police and 
the Russian government find peace 

on die poor was also needed, he said. ; 

■ Gtingthe Constitation 

• Jane Petri**. of The New York Times 
Service reported earlier firm Sofia: 

; President Zhelyu Zhelev. who was 
one of Bulgaria’s few political dissi- 
dents in toe Communist era, said Tues- 
day that he would do what was po- 
litically unpalatable but constitutionally 
correct and ask the Socialist Party to 
form anew government. 

But before doing so, he said in an 
interview, he wants toe two feuding 

tnunist op position, to come to a con- 
sensus that would allow for new dec- 


CcQd War. At any rate, for toe second 
time since the start of the new year, 
Russia’s UN wrigqop has complained 
formally that it is being hassled by 
' New Yadc’s finest; azid toe police have 
replied that they are only enforcing the 

In the latest incident, toe Russians 
said Tuesday, Ambassador Sergei 
Lavrov’s limousine was givennofcw- 
er than toree padring tickets Monday . 
That signaled an escalation of the <fis- 
pnte toat began Dec. 29 with an in- 
cident involving two diplomats in a 
car that the poKos said was parked too 
close to a fire hydrant. 

. The diplomats involved in the first 
incident — the first secretaries of toe 
Russian and Belarus missions ■ — bad 
diplomatic imm u n ity. Nevertheless, 
as Russia subsequently complained 

| Belgian Aide Faces 
Fresh Allegations 

BRUSSELS — The top public 
prosecutor in Bel gium has opened 
investigations into unspecified raw 
allegations against Deputy Prime 
Minister Etio di Rupo, who was 
cleared a month ago of charges he 
had sex wifr underage boys. 

raiaw- Liefcendad, head of the 
Cour de Cassation, told a parliamen- 
tary committee in remarks broadcast 

— s fir. » nilivii <Ka» Karl 

whether Prime Minister Romano 
Prodi should stand trial for alleged 
abuse of office and conflict of interest 
opened Wednesday and was ad- 
journed until Feb. 28. 

Mr. Prodi denies toe charges, 
vriridi relate to a sale by state holding 

lawyer, Paola Severino, said toe 
judge, EdoardoLandi, decided on the 
adjournment at the request of a de- 
fense lawyer currently involved in 
another trial- (Reuters) 

in a formal protest to the U.S. gov- 
ernment, the police attacked the dip- 
lomats with “unacceptable brutal- 
ity,” breaking the Russian’ s arm and 
hauling both off to a police station in 
handcuffs before releasing them. 

Mayor Rudolph Graham's re- 
sponse was toe equivalent of saying, 
“The same to you, fellal” The two 
diplomats, he said, were drank and 

Mir. Giuliani demanded that the 
State Department kick both diplo- 
mats out of the country. He added 
that toe Russians might also pay 
more than $40,000 in parking fines 
racked up by cars from the Russian 
mission last year. 

Russia’s latest protest, sent Tues- 
day to the U.S. mission at the United 
Nations, says that on three occasions 
Monday, while Mr. Lavrov’s chauf- 
feur had the limousine waiting for die 
ambassador in front of the Russian 
mission on East 67th Street, a police 
officer had ticketed the car. 

Yeltsin to Remain 
Hospitalized Until 
End of the Week 


MOSCOW — President Boris Yeltsin 
is gating better but must stay in the 
hospital until toe end of toe week becanse 
of the risk of complications following his 
treatment for pnmrmftnia, toe Kremlin’s 
chief doctor said Wednesday. 

“I should say toat tins is afiririy serious 
illness, winch of coarse bangs with it a 

l/U MdkrruHvu IS ^ ‘ — 

been provided with fresh informa- 

_ - 4 . r j illness, which of coarse brags with u 

GyDTUS Mission EMUS Whole range of possible complications, 

Jx said Dr. Sergei Mironov, who had earth 

In December, the governing cen- 
ter-left coalition in Belgium used its 
parliamentary muscle to throw out a 
series erf allegations toat Mr. di too 
had had sex with boys under the legal 
age of consent of 16 years. (Raders) 

Ciller Avoids Probe 

ANKARA — A parliamentary 
committee, in a dose cal l, vote d 
Wednesday against a corruption 
probe of Deputy Prime Minister 

A negative vote would have 
stripped her erf her cabinet positions 
and opened toe way 
The 8-to-T voteinfavorof MK.ouer, 
also foreign mimster. dealt with ac- 
cusations she had illegalfy 'acenmn- 
mfllifim of dflUB TS . " .f™*' 

Reprieve for Prodi 

ROME : — A hearing to deride 

ANKARA — A U.S. envoy met 
with a Turkish Foreign Ministry of- 
ficial Wednesday on toe final leg of a 

mission to defuse tensions over 

Cyprus’s decision to buy Russian 

Before toe meeting, toe envoy, 
Carey Cavanaugh, repeated his pre- 
diction that the missiles would never 
be deployed by toe Greek Cypriot 
government (AP) 

Epidemic Warning 

LONDON — A few more cases of 
a new variant of Creutzfddt- Jakob 
disease could signal an epidemic, ac- 


Wednesday in the journal Natrne. 

The deadly bran disease is toe 
hnrn^ ftqnhralemof **madCQW” ChS- 
easc/or bovine spoogfftam euceph- 
alopatoy. The repin* said 14 cases of 
tbs variant ted been documented in 
Britain, and that even a few more 
could herald an epidemic involving 
thousands of victims. (AFP) 

said Dr. Sagri Mironov, who had earlier 
predicted Mr. Yeltsin would leave die 
hospital early this week. 

He said Mr. Yeltsin's condition had 
“stabilized considerably” since he was 

admitted wifo pneumonia m both tangs oo 
Jan. 8. Dr. Moronov said the 65-year-old 
president — who had insisted cm a three- 
day hospital stay — had been persuaded 
that he needed a longer convalescence. 

The doctor’s comments, however, 
failed to halt criticism by Mr. Yeltsin’s 
political opponents, who seek » use has 
health problems as grounds to oust him. 

The Communists, who are the main 
opposition party, said toat Mr/ Yeltsin 
was unable to exercise power and that 
toe country was in deep crisis. 

he's WQ£ty > ) ” " Gennadi iieleznyov, the 
Communist chairman of the opposition- 
dominated Lower house of Parlia m e nt , 
said at the start of a new parliamentary 

Gennadi Zyuganov, toe Communist 
leader, said Ins party, the biggest in the 
lower house, would decide Tlmrsday 
whether no support moves to force Mr. 
Y altsfo from office. 

His career as president began and has 
now ended in two events that in effect 
summarize the turmoil of Bulgaria's 
Largely unsuccessful efforts at economic 
reform and its stormy transition to 

Shortly after his election by Parlia- 
ment in 1990, the old Communist Party 
headquarters was looted and burned by 

And last Friday, while Mr. Zhelev 
was in Paris, toe Parliament was broken 
into by demonstrators and stormed by 
the police. 

Mr. Zhelev shrugged over the vi- 
olence at Parliament. 

“These are desperate people brought 
to toe verge of despair and violence,” he 
said. “Their frustration is so strong be- 
cause nothing is moving ahead. Their 
life is getting worse under these con- 
ditions of democracy. They see no other 
way to react than voice their frustration 
at Parliament” 

Swiss Company 
Regrets ‘Nazi 9 Ad 

Age nee Frattce-Presse 

NIEDERURNEN. Switzerland 
— The maker of a medicine that 
advertised its product by promising 
to ease pain if 1 ‘Nazi gold teeth give 
you a headache” apologized Wed- 
nesday for the publicity, saying 
there was no anti-Semitic intent. 

The advertisement for Sinipben, 
manufactured by Pharma-Singer, 
appeared in Tuesday’s Tages An- 
zeiger newspaper. 

The company’s commercial di- 
rector, Juerg Singer, apologized for 
toe ad, saying responsibility for it 
lay with the company’s advertising 

The newspaper published an ar- 
ticle the same day on the debate that 
is raging between the Swiss gov- 
ernment and Jewish organizations 
over Switzerland's dealings with 
Hitler’s regime. 

Robot Spridi/flmm 

Jean-Pascal Delamuraz announcing his apology at a press conference. 

Serb Regime 
Plans Appeal 
On Reversal 
Of Elections 


BELGRADE — A hard-liner in the 
governing Socialist Party said Wednes- 
day that it would appeal a ruling restor- 
ing an opposition election victory in 
Belgrade, signaling that Serbia's polit- 
ical crisis was far from over. 

Electoral officials in the capital, over- 
ruling a district court, voted Tuesday, 10 
to 1. to reinstate the opposition Zajedno 
coalition's victory in elections for the 
Belgrade municipal assembly. 

The electoral commission in Nis. Ser- 
bia’s second-biggest city, made a sim- 
ilar ruling, reinstating a Zajedno ma- 
jority on its regional council as a result 
of municipal ejections held Nov. 17 
across Serbia. 

Despite the favorable rulings, Za- 
jedno remained suspicious of President 
Slobodan Milosevic’s intentions. The 
opposition vowed to continue street 
protests, now in their ninth week, until 
its victories in all 14 cities in dispute 
were certified. 

Other than the plan for an appeal, the 
electoral commission decisions won cau- 
tious public support from the governing 
coalition, suggesting that Mr. Milosevic 
had approved the new concessions. 

He remained silent on the affair. 

Analysts cautioned against euphoria 
over the rulings, questioning whether 
electoral bodies could legally override 
court decisions and saying that hard-line 
Socialists still enjoyed leeway for ap- 
peals and other delaying maneuvers. 

The results verified Tuesday were 
only preliminary, and the Socialist Party 
had until Thursday to challenge the rul- 

Thousands massed in Belgrade again 
Wednesday, watched by riot policemen 
trying to enforce a ban on street 

Two visiting U.S. senators, Carl Lev- 
in of Michigan and Jack Reed of Rhode 
Island, both Democrats, gave support- 
ive speeches to the Zajedno crowd after 
meeting Milan Milutinovic, the foreign 
minister of Serbian-led federal 

T anjug, the official news agency, said 
that Mr. Levin. Mr. Reed and Mr. 
Milutinovic had discussed “priorities 
of internal development and foreign 
polity of Yugoslavia” — or Serbia's 
political problems. 

The United States has led Western 
criticism of the Serbian government, 
urging it to respect Zajedno’s victory or 
forget about economic aid. 

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NATO Expansion Is Not Intended to \ Move the Iron Curtain Eastward 

International Herald Tribune 

Staying on as a principal foreign poli- 
cymaker in the second Clinton admin- 
istration. Strobe Talbott, the deputy sec- 
retary of state, will continue to be an 
architect of U.S. policy toward Russia. 
Prior to consultation 's in Europe this 
week with allied governments, he talked 
to Joseph Fit die ft of the international 
Herald Tribune about NATO's expan- 
sion , potentially a crucial issue for fu- 
ture relations with Moscow. 

Q. The prospect of NATO expansion 
has sparked concern — on both sides of 
the Atlantic — that it might impose a 
new Cold War with Moscow or at least 
sideline Russia in the quest for a new 
security system for Europe. You have 
been the Clinton administration's point 
man in building bridges to the Russian 
leadership. How do you view the risk? 

Q&A / Strobe lalbott 

A. We want to be able to deal with 
Russia as a European power — an in- 
dependent. constructive power in a 
stable Europe. 

The wars in Europe this century have 
started largely because the Continent 
was divided between Russia and its al- 
lies and the community of nations we 
call the West. There is an opportunity 
now of bringing some people in Eastern 
and Central Europe into that community, 
but this is emphatically not designed to 
move the Iron Curtain eastward. That is 
simply in nobody’s interest — lei me 
stress, nobody's interest. We're looking 
for a new security architecture in Europe 
that accommodates everyone's in- 

So we're- talking to everyone, not just 
Russia and Eastern and Central Europe 
countries but also the Balts and Ukraine. 
For 50 years. Russia — or rather the 
Soviet Union — has been the West's 
antagonist, and we want to transform 
NATO's traditional dealings with Mos- 


Q. Can the proposed NATO-Russia 
Charter give Moscow confidence that it 
is being included as a partner and not 
excluded as a potential enemy? William 
Perry, the outgoing defense secretary, 
has been quoted as saying that NATO 
should offer Russia a real consultative 
role — with no veto, of course — 
whenever the alliance is weighing a ma- 

jor initiative. A leak in Bonn suggested a 
more radical trade-off: letting Russia 
join the club of leading industrialized 
nations, the G-7. in exchange for ac- 
cepting NATO enlargement. 

A. NATO’s plan for a charter with 
Russia is only one of several parallel 
paths for pursuing what we want to see 
happen in Russia after the Cold War — 
and hope Russia wants for herself. 

What we’re seeking is a fundamental 
transformation of relationships, notably 
with NATO. We’re not just talking 
about better cooperation: The key is 
better institutionalization of our desire 
for cooperation. 

What we are trying to do is find a way 
of expanding the scope of what we talk 
about with the Russians and also deter- 
mine the level at which we can interact 
with them. 

Q. Are you suggesting further moves 

to broaden the relationship with Russia 
in security decision-making beyond the 
current arrangements that allow the 16 
members of NATO to consult with Mos- 
cow? Does ‘‘institutionalizing’’ imply a 
new body, perhaps some kina of council 
alongside the alliance that would include 
NATO members and Russia? 

A. I can’t say more. This is diplomatic 
work actively in progress as we speak. 

But, clearly, we want a mechanism 
that builds on what exists. It has been 
gratifying to see how much we have 
been able to accomplish thanks to the 
regular meetings between Vice Pres- 
ident Gore and Russia's prime minister. 
Victor Chernomyrdin, who incidentally 
is due here soon. These issues will cer- 
tainly come up during his talks in Wash- 

Q. How do the European allies feel? 

And what has to be done to get a suc- 
cessful outcome with the Russians? 0 

A. Like us. the allies are grappling 
with the issues, but they see that the 
overall benefits will outweigh the costs. 
With Russia, we’ve made some pro- 
gress, but it's far from definitive. 

We need to be able to persuade tbe 
Russians that we really want for them 
what we say we want for them — and 
that we really think that they ought to 
want the same thing for themselves. We 
can do better at clarifying the offers and 
opportunities that are being held out. If 
the outcome in Moscow is a close call, 
these efforts can make a critical dif- 
ference at the margin. 

But it takes two to tango. Russia is still 
ambivalent about its own role, and many 
leaders there could do a better job ai 
explaining the opportunities so that their 
country seizes them. 

FBI Presents a Wish List 
For Tapping U.S. Phones 

; i » 

JuD F m 

^ I 

By John Schwartz 

Washington Post Service 

WASHINGTON — The FBI has re- 
vealed a detailed wish list that it said 
would guarantee its ability to conduct 
wiretaps in the digital age without sig- 
nificantly expanding its level of sur- 
veillance over Americans. 

In a report, the agency requested that 
telephone companies set aside the ca- 
pability for law enforcement officials to 
perform as many as 60.000 simultaneous 
wiretaps and other traces over the na- 
tion's 160 million telephone lines. 

Tbe number of potential taps may 
seem huge, but the agency said it ex- 
pected only modest increases of about a 
thousand taps a year over current rates. 
Wiretaps on standard phones could be 
expected to grow 5.92 percent from 
1994 to 1998. and by 4255 percent from 
1998 through 2004. it said. Taps on 
wireless phones would grow by 14.3 
percent and by 8.3S percent in tbe same 

Telephone industry experts were un- 
able to say whether the new numbers 
constituted a large increase in FBI ca- 

S abilities. One privacy advocate. David 
obel of the Electronic Privacy Infor- 
mation Center, said that die new in- 
creases cited by the FBI report con- 
stituted “significant" growth in 
wiretaps over time. 

The FBI was required to file the report 
by the Communications Assistance for 
Law Enforcement Act of 1994. The 
FBI’s assistant director, James Kall- 
strora, said: “This is not a story about 
columns of numbers. This is a story about 
fighting crime and protecting people." 

The long-running fight over the 
wiretap legislation pits law enforcement 

officials against privacy and civil liber- 
ties advocates — who contend that the 
FBI is trying to extend its surveillance 
abilities in the digital age — and the 
telecommunications companies that 
would bear much of the cost 

Law enforcement officials have con- 
sistently stated that they have not asked 
for any additional authority to conduct 
wiretaps, but were merely seeking to 
retain their tool of electronic surveil- 
lance, which Mr. Kail strom said,, “is 
falling an inadvertent victim to gallop- 
ing technology advances." 

Until recently, tapping a telephone 
was as straightforward as setting alligator 
clips on a tine. But computer technology 
has revolutionized systems — and erec- 
ted barriers to law enforcement. Officials 
say they have been frustrated to find that 
telecommunications companies have not 
consistently built wiretap capabilities in- 
to their technologies. 

Mr. Kallstrom likened tbe capacity 
question to the placement of fire hy- 
drants along city streets: “Fire hydrants 
are placed in communities not because 
they necessarily represent the number of 
fires that are expected to occur, but are 
deployed so that, in the event a fire 
should occur in a particular location, 
ihere is a hydrant available for use by the 
fire department" 

This is the second attempt by the FBI to 
produce the so-called Notice of Capacity. 
The first attempt in October 1995. was 
greeted by controversy when the pro- 
posal was widely taken to mean that the 
bureau wanted the capability to tap one in 
every 100 telephone lines. The FBI di- 
rector, Louis Freeh, adamantly denied 
that interpretation, but Mr. Kallstrom ad- 
mitted that the approach used in the orig- 
inal proposal was “very imprecise.” 

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ACCORD: Netanyahu Wins Test in Israeli Cabinet on Hebron HEBRON: A City Steeped in Violerwe 

Continued From Page 1 

efforts of Israelis and Palestinians to reach 
territorial compromise. The unlikely part- 
ners, distrustful to the end and accom- 
panied by the U.S. special envoy, Dennis 
Ross, shook hands coolly after more than 
two hours behind closed doors. 

Although the accord is largely a re- 
vised commitment to pacts reached long 
before, tfe* 2jal was the first with the 
Palestinians for Mr. Netanyahu and the 
Likud party and a painful departure from 
the Likud's bedrock ideals. 

Mr. Netanyahu committed his gov- 
ernment to transfer land and limited gov- 
erning power to Mr. Arafat — four-fifths 
of Hebron immediately, and substantial 
chunks of the West Bank by tbe middle 
of next year. Mr. Arafat renewed un- 
fulfilled promises to extradite criminal 
suspects sought by Israel and to rewrite 
the Palestinian Covenant to expunge 
calls for Israel's destruction. 

In Washington, President Bill Clinton 
congratulated Mr. Netanyahu and Mr. 
Arafat in a brief conversation and hailed 
the pact as a triumph for his admin- 

istration's peacemaking efforts. But he 
warned that the agreement, while a 
"good omen," was only the start of a 
broader set of negotiations that must be 
pursued vigorously. 

The accord calls for Israeli troops to 
withdraw from most of Hebron within 10 
days, completing a military pullout from 
the West Bank's six largest cities begun in 
1995. But senior Israeli Army officers 
said they could, and would, complete 
their evacuation within 48 hours of the 
formal signing of the accord. 

The text of Che agreement divides the 
city of 1 30,000 Palestinians and 450 Jew- 
ish settlers into two spheres, with the 
Israeli Army holding about one- fifth of 
tbe territory. Mr. Netanyahu sought basic 
changes in the framework agreed on 15 
months ago by the previous Israeli gov- 
ernment but settled for small amend- 
ments. such as limiting the arms Pal- 
estinian police may carry to sidearms and 
short-barreled submachine guns. 

Many of the understandings reached" 
went well beyond the boundaries of 
Hebron. Both leaders agreed these 
would be contained only in a U.S. -com- 

piled summary of their commitments, 
titled "Note for the Record." 

Under terms of the deal, Israel also 
undertook to release Palestinian pris- 
oners it first promised to free more than 
a year ago and to resume negotiations on 
Palestinian statehood, borders and other 
sensitive issues that it froze when Mr. 
Netanyahu came to power. 

Israel promised as well to begin im- 
mediate and simultaneous talks on the 
opening of Gaza's airport and seaport 
and the designation of “safe passages" 
for Palestinians traveling between the 
West Bank and Gaza Strip. 

Reciprocal pledges from Mr. Arafat 
also included tbe confiscation of illegal 
weapons and the closure of Palestinian 
offices outside self-rule areas — intended 
to cover Israeli-ruled East Jerusalem. 

Israel's commitment to roll back its 
forces from rural portions of the West 
Bank, appears only in U.S. “letters of 
assurance." Mr. Ross described the let- 
ters, mostly not disclosed, as falling 
short of * * American guarantees as such’ ’ 
but as embodying “our willingness to 
act in accordance with our views." 

Continued from Page 1 

rightful place there, that they exist at 
Israeli sufferance. 

Talk to Arabs, and you bear vicious 
anti- Jewish canards. 

A pharmacist, outwardly a pleasant 
and sophisticated man. was talking with 
a foreign reporter two years ago when 
out of nowhere he said that the Holocaust 
had never occurred Yes, be said, it was 
an invention of the Jews to gain world 
sympathy and divert attention from their 
occupation of Palestinian lands. 

In truth, neither side in Hebron com- 
mands universal respect among its own 
people. Many Israelis revile the settlers 
as fanatics who distort Jewish and Zion- 
ist values and whose intransigence, they 
warn, may lead to a cataclysm of in- 
calculable dimensions. And many Pal- 
estinians dismiss Hebron Arabs as little 
more than inflexible hardheads. 

At the center of the struggle is the 
patriarchs’ cave, known to Jews as the 
Cave of Machpelah and to Muslims as al 
Haram al Ibrahimi, the tomb of Ibrahim. 
The Book of Genesis says the cave was 

SMALL: Carmakers in Europe See Big Money in Reduced Size and Automated Assembly 

Continued from Page 1 

and to make matters worse the new gen- 
eration of mighty mites is arriving just as 
European car sales are in a slump. So 
automakers in Europe are looking hard 
at how they build cars in the first place. 

The result, for Ford, is a carefully 
honed strategy to produce the Ka, with a 
sticker price of just S12,000, in a way 
that will leave a decent profit. It is bor- 
rowing many parts from the larger 
Fiesta. For the rest, it is cutting costs to 
the bone, using inexpensive materials 
and forcing suppliers to foot part of the 
bill for developing parts. 

“We said we- couldn ’t be competitive 
in the year 2000 if we didn’t do 
something dramatic," said Mr. Ubaghs, 
a 31 -year Ford veteran who is Valencia's 
plant manager. 

For American automakers, it is es- 
pecially crucial to figure out how to make 
small cars profitably, because those are 
the ones they sell in the fastest-growing 
markets — developing countries. Vir- 
tually all the cars General Motors Corp. 
and Ford sell in those countries are de- 
signed by their European divisions. Ford 
wants to build 240,000 Kas a year in 
Valencia, and also plans to build them in 
Brazil, which has a thirst for small cars. 

It is an expensive and risky effort for 
Ford, which lost money in Europe in 
four of the last seven years. In tbe third 
quarter of 1996, Ford Europe lost $472 
million, as lackluster sales and cutthroat 
pricing buffeted the entire industry. 

Just what is Ford doing differently 
with the Ka? 

For starters, it cut down sharply on 
development costs, saving time and 
money by cannibalizing about 55 per- 
cent of its parts from the Fiesta. 
Moreover, it cut the number of parts to 
about 1,200, from 3,000 in the Fiesta. 
The shortcuts enabled Ford to push the 
Ka from drawing board to production in 
about 24 months, not the usual 36. 

Ford also saved by demanding that 
suppliers foot part of the development 
bill. It will not say how it divided up 
those costs, or how much it spent to 
develop the Ka, though investment in the 
Valencia factory alone was more than 
$200 million. 

The model that went on sale in 
November sports unusual sweeping 
plastic bumpers. The idea, said Richard 

Parry-Jones, the Ford vice president in 
charge of the project, was to give the car 
a modular look, with bumpers in dif- 
ferent colors, and to save money by 
using polypropylene, an inexpensive 
plastic. Not only was it easier for the 
supplier. Dynamic Nobel AG of Ger- 
many. to manufacture three-part bump- 
ers. but after an accident only part of the 
bumper must be replaced 

The Valencia factory represents a dif- 
ferent approach, too. Ford built it in the 
1970s. and over the years assembled 
Fiestas, Escorts and several types of 
engines there. 

In recent years. Ford set aside a big 
chunk of the 640-acre (256-hectare) site 
for suppliers. Now. Johnson Controls Inc. 
makes seats nearby, while Dynamic No- 

bel makes bumpers. In all, 14 suppliers 
work near Ford's final assembly line, and 
24 more are expected to move in soon. 

Ford cut its wage bill by shifting tbe 
assembly of components from the mam 
line to nearby factories. Its Spanish as- 
sembly workers earn an average of 
$21 ,000 a year, parts workers about 40 
percent less. Ignacio Sainz, a Ford en- 
gineer, said tbe conveyors that link 
Ford's instrument panel supplier with the 
final assembly line eliminate 150 truck 
trips a day. or about $6 million a year. 

Thanks to this heavy dose of auto- 
mation. just 8.000 Ford workers turn out 
312.000 cars a year here, including Kas 
and Escorts, compared with 10,000 
workers five years ago for roughly the 
same number of cars. 

bought by Abraham as a burial place for 
his wife, Sarah. This would have been 
some 3,800 years ago. 

Tradition says that also buried there 
are the patriarchs Isaac and Jacob and the 
matriarchs Rebecca and Leah. (Arabs 
trace their lineage through Hagar, 
Sarah's maid, who gave Ibrahim a son 
named IshmaeL) 

The Genesis story lies at die heart of 
Jewish claims to primacy, despite the 
Arabs’ vast numerical supremacy. 

The Jewish settlers in Hebron are of- 
ten deliberately provocative, and are ac- 
cused by many other Jews of prizing 
land acquisition over human life. But 
they view their presence as die core of 
Jewish revival in the biblical Land of 
Israel. For centuries, they say, Jews 
yearned to return where? To Tel Aviv 
and its all-night discos? Or to foe holy 
sites of Jerusalem and, 30 kilometers (20 
miles) south, Hebron? 

Jews have lived in Hebron with few 
interruptions since ancient times, but they 
had infrequent control. Over the mil- 
lennia, the city passed through the hands 
of tbe Byzantin e s, Arabs, Crusaders, 
Mamelukes, Ottomans and British. 

Under arrangements in force from the 
Middle Ages until foe British Mandate in 
Palestine ended in 1948, Jews were 
banned from worshipping inside the 
stone complex built above the patri- 
archs' cave, a compound of soaring pil- 
lars and vaulted ceilings that has been a 
mosque since the 13th century. 

Tbe modern Arab-Jewish conflict 
began with the start of Jewish immi- 
gration from Eastern Europe to Palestine 
in the late 19th century. Many Jews who 
went to Hebron foot were pious mystics 
little interested in Zionism. 

The 1929 massacre effectively ended 
that Jewish settlement. A small group 
made its way back in 1931, but it was 
evacuated five years later by the British 
as Arab rioting broke out across 
Palestine. After that, there were no Jews 
in Hebron until Israel triumphed in the 
1 967 Middle East war. capturing the city 
along with the rest of the West Bank. 

First Divorce in Ireland 
Sought by a Dying Man 


DUBLIN — A dying man tried Wednesday 
to become get foe first Irish divorce since foe 
practice was approved in a 1995 referendum. 

A law enabling divorce is not due to take 
effect until foe end of February. So the man, 
who applied in Dublin and says he is terminally 
ill. wants divorce granted him under consti- 
tutional guarantees of his rights. 

The man. in his 50s. says he has only a short 
time to live and has been separated from his 
wife for many years. He says he warts to marry 
the woman with whom be has been living. 

SOROS: Capitalism's King Note Spies Evil in the Realm 

Continued from Page 1 

brought him his fortune, Mr. Soros 
has had one of the biggest and most 
public changes of heart since the 
name of the great gunpowder mag- 
nate, Alfred Nobel, became inex- 
tricably linked with a prize to foster 

What troubles Mr. Soros most is 
that today's market idolatry 
threatens to depan from foe realm of 
the merely distasteful into that of the 
downright dangerous in several 
areas. He notes, for instance, foal the 
same benighted markets that bring 

prosperity have in foe past repeatedly 
crashed, sending ripples or destitu- 
tion racing across foe landscape and 
creating foe conditions for a total- 
itarian backlash. 

He also noted that laissez-faire 
systems today have an increasing 
bias toward income inequality and 
toward foe social tension that may 
generate. By defining government 
intervention as the “ultimate evil,” 
Mr. Soros wrote, “laissez-faire ideo- 
logy has effectively banished income 
or wealth redistribution." 

That tendency of governments to 
sit on their pocket books rather than 

opening them, brings up the point 
that appears to be the weUspring for 
Mr. Soros's article: foe lack of fi- 
nancial support from Western gov- 
ernments for the rebuilding of East- 
ern Europe ami foe former Soviet 

The consequences have been 
grave. In Russia, he charges. Com- 
munist bosses have now been suc- 
ceeded in power by “robber" cap- 
italists in a system grown so 
unbalanced that Russians may well 
turn to a “charismatic leader prom- 
ising national revival at the cost of 
civil liberties." 


Incentives for Russia 

Continued from Page 1 

singing from the same sheet of music is 
the months to come." 

The most far-reaching initiatives to 
defuse Russian fears about NATO en- 
largement may soon be taken in the 
realm of arms control, officials said. 

Alliance diplomats said the United 
States was considering a new proposal 
— perhaps in time for President Bill 
Clinton’s scheduled meeting with Mr. 
Yeltsin in March — that would cir- 
cumvent the reluctance of tbe Russian 
Parliament to ratify foe START-2 
Treaty. The proposal would suggest a 
leap ahead toward a START-3 round 
that would deal with Russia’s worries 
about American superiority in submar- 
ine-launched systems. 

European governments have been ur- 
ging foe United States to make the jump 
toward a START-3 deal that would re- 
duce nuclear arsenals even further, save 
billions of dollars in maintenance costs 
fra- both sides, and alleviate Russia’s anxi- 
ety about the intentions of farmer foes. ^ 

The United States and foe European™ 
allies have answered one of Russia's 
biggest grievances by agreeing to open 
negotiations this month in Vienna on up- 
dating foe Treaty on Conventional Forces 
in Europe. The revised treaty will seek to 
impose national ceilings on conventional 
arsenals, rather than the bloc-to-bloc 
levels prescribed before. 

Russia has contended, however, that 
the existing bloc ceilings must not be 
changed. In other words, if NATO in- 
corporates the tanks and troops of former 
Warsaw Pact nations such as Poland, 
Hungary or foe Czech Republic that are 
seeking membership, the alliance win 
have to ensure mat foe additional 
weaponry does not cause hs total to ex- 
ceed treaty limits. 

“The Russians insist that any form of 
NATO expansion must be militarily 
neutral, " a senior alliance diplomat said. 
“There are some NATO countries that 
are willing to grant that condition, but ft 
could prove difficult in practice. ' ’ 

Last month, NATO foreign ministers 
said foe alliance had no intention, nor did 
it foresee any likelihood, of stationing 
nuclear weapons on the territory of new 

The Russians also say NATO must 
promise not to deploy any foreign troops 
on the soil of new members, but that 
condition could compromise the very 
security guarantees sought by those 
countries seeking to join the Western 
military alliance. 

The most tangible political conces- 
sion, officials say, will be foe nature of 
Russia’s presence within NATO coun- 
cils. Under pressure from Chancellor 
Helmut Kohl of Germany, tbe allian ce is 
moving toward granting Russia foe right 
to raise and discuss any issues of mutual 
interest with NATO’s 16 members asa 
special consultative partner. 

But while being assured their views 
would be taken seriously, the Russians 
could never expect to wield veto powers 
over security questions. i. 

“We will only know six months from 
now if tbe Russians are prepared to 
swallow that notion," a senior ] 
diplomat said. 

State Department . 
Calls Scientology Ad 
‘Unfair 5 to Germans 

The Assmdmed Press 

WASHINGTON — Responding 
to a paid newspaper advertisement 
defending Scientologists, foe State 
Department said Wednesday that it 
was “completely inappropriate" to 
draw comparisons between the Ger- 
many of today and tbe Germany of 
the Nazi era. 

“It is unfair to the German gov- 
ernment and people, who have done 
so much to right foe wrongs arising 
from the Second World War,” the 
department said. At the same time, 
the department’s statement said, foe 
United States had serious concerns 
about discrimination against Sci- 
entologists in Germany. 

“We do not believe it is appro- 
bate to discriminate against in- 
Li viduals based on their religions 
beliefs," it said. 

The statement was prompted by a 
full-page ad in the International Her- 
ald Tribune that was signed by 34 
Americans, including such Holly- 
wood celebrities as Oliver Stone and 
Goldie Hawn. 

The signers, who said they were 
not Scientologists, told Chancellor 
Helmut Kohl they were worried by 
“invidious disenmination against 
Scientologists practiced in your 
countty and by your -own party." 




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t? >- >- 

X_UVt >; 

He -Who* Who in Europe Survey'1996 shows that, amongst Europe's most influential people, 
overtwice as many consider the International Herald Tribune to be 
‘The best source of international news’ as its nearest rival. 

Dare we say that it’s something you’ve thought for a long time? 

Yon can get your copy of the survey via 

James McLeod in Paris on (33) 1 41 43 93 81 

RichardLyuuh in New Ybrk on (212) 752 3890, or Andrew Thomas in Singapore on (65) 223 6478. 

(Who are we to argue? ) 


















































■' r ”• 





Serbia in Transition 

The protests in Serbia now have 
forced President Slobodan Milosevic 
to back down and acknowledge that be 
did in fact steal municipal elections last 
Nov. 17 in Belgrade as well as in Nis. 
This is a major blow, perhaps a turning 
point. A dozen other local electoral 
thefts by Mr. Milosevic remain un- 
acknowledged, bat plainly he is on the 
skids. His control of the police and 
cultivation of workers still may pro- 
vide him the wherewithal for a crack- 
down, but widening support for the 
protesters in the business community 
and even in his own political party 
greatly inflates die likely costs. 

Mr. Milosevic's efforts to buy off 
the opposition with limited successive 
concessions are not- satisfying the na- 
tional demand for electoral demo- 
cracy. The opposition's goal is to cre- 
ate a level playing field, with the 
emphasis on free media play, and to 
drive out Mr. Milosevic if, as expected, 
he ends his term in Serbia and runs for 
president of the residual federal 
1 ‘Yugoslavia” (Serbia plus Monte- 
negro) later in die year. 

Undeniably, the prime feature of the 
protests in Serbia is the bravery, en- 
ergy, endurance, imagination and good 
humor of the protesters. This is how to 
account for the now 50-odd consec- 
utive days of mass demonstrations 
through the worst weather, and for the 

particular style of the demonstrations, 
peaceful but peaceful with an accent’ 
shouting at 7:30 P.M. to symbolically 
drown out the evening news on state- 
run television, facing police cordons 
up close with hands on head as in a 
prison yard to indicate that Serbia un- 
der Mr. Milosevic is a kind of prison. 

Serbians are reacting as though with 
an initiate's delight in the phenomenon 
of democracy. The Cold War has been 
over for some years, but Serbia missed 
what it meant for the countries Mos- 
cow had ruled. Those places became 
not only independent from Moscow 
but in their fashions, democratic. But 
the old Yugoslavia, which had depar- 
ted the Soviet orbit nearly 50 years ago. 
already was independent and initially 
stayed Communist 

President Milosevic is the last Com- 
munist-era leader of the whole region. 
He lasted this long by playing the na- 
tionalist card as the old Yugoslavia 
disintegrated. Now, however; the Ser- 
bian people see that his war policies 
have corrupted, bankrupted and iso- 
lated the nation. His electoral thefts 
were the last straw. Ever larger seg- 
ments of the population want not lib- 
eral or reform communism, which is at 
its core repressive and authoritarian, 
but democracy. They are fighting for it, 
and they surely will prevail. 


Bhopal Victims, Again 

The leak of toxic gas from Union 
Carbide's plant in Bhopal in 1984 was 
the worst industrial disaster in history, 
with the official death toll now at 
nearly 10 , 000 . It has also become a 
cautionary example of how victims can 
suffer twice. The vast majority of those 
injured and the families of those killed 
waited a decade to get financial com- 
pensation. and many are still waiting 
for money, long-term health care and 
other help that they .deserve. Last 
month the Indian government re- 
opened the claims registry to allow 
new people to apply. That may correct 
some injustices, but more needs to be 
done to bring relief to the victims. 

On the night of Dec. 3, 1984. a cloud 
of toxic gas spread over poor and 
crowded neighborhoods of Bhopal. 
The gas leaked from an agricultural 
ch emicals plant operated by Union 
Carbide India Ltd., which was owned 
by the American corporation Union 
Carbide, with a minority share held by 
tile Indian government and public in- 
vestors. Union Carbide was able to 
shift lawsuits to Indian courts from 
American ones, which had just awar- 
ded $5 billion in punitive damages in 
the Exxon Valdez case. 

Hie Indian government initially 
asked Union Carbide far $3 billion but 
settled for only S470 million in 1989, 
over the opposition of groups repre- 
senting victims. At the time the Indian 
government was seeking to improve 
relations with the United States and 
foreign investors. The funds were first 
frozen by legal challenges from people 
who wanted a larger settlement. 

Some victims were getting interim 
payments, which averaged about $7 a 
month, but the government did not 
begin to pay formal compensation until 
eight years after the disaster. So far it 

says it has given out about $300 million 
to 380,000 people, which is about two- 
thirds of the claimants, all in secret. 

The reopening of the registry is im- 
portant because money can go only to 
those officially registered as affected, 
and the registry is a mess. Poor people 
who built their houses close to the plant 
were most affected by the gas. but 
many did not keep medical records to 
prove their injuries. Wealthier resi- 
dents have bribed doctors to provide 
false statements of suffering. 

A study by a group of doctors af- 
filiated with advocates for the victims 
suggests ways for the compensation 
court to improve its procedures. The 
International Medical Commission for 
Bhopal recommends giving priority to 
tire most severely injured and provid- 
ing better training for doctors categor- 
izing claims, among other changes. 

When Union Carbide sold its shares 
in its Indian subsidiary for $90 million 
in 1989, the company and the Indian 
government agreed to spend the pro- 
ceeds on research and health care in 
BhopaL A modem new hospital is un- 
der construction. The medical commis- 
sion says Bhopal needs clinics where 
health workers can monitor outpatients 
and provide help such as classes in 
breathing exercises. Victims also need 
sheltered workshops where sick people 
can earn salaries. Union Carbide of- 
ficials say they are planning to use part 
of the money to build 10 such clinics 
and possibly some workshops. 

These programs may prove useful, 
but, like the compensation paid, they 
are possibly too little and certainly 
very late. Union Carbide, the govern- 
ment, the false claimants and others all 
contributed to delays that victimized 
Bhopal’s poor a second time. 


Medals Long Overdue 

The bestowal of honors for bravery 
in battle is an ancient military tradition 
by which society renders symbolic 
tribute to those who fight and sacrifice 
in its behalf. This is the backdrop 
against which to set the painful fact 
that not one of the IJ2. million Amer- 
ican blacks serving in World War II 
received the nation's highest tribute for 
valor, the Medal of Honor. The heroes 
among them were denied, unquestion- 
ably for their race, participation in a 
solemn national nte. They, and 
through them all blacks, were being 
excluded from the circle of those ad- 
mitted to a full role. 

It is right that President Bill Clinton 
should now move to redress a nation's 
act of insult and exclusion by belatedly 
presenting the Medal of Honor to seven 
black heroes of the war. Only one is still 
alive — former Second Lieutenant 
Vernon Joseph Baker, 77, of SL Maries, 
Idaho. In Italy in April 1945 be single- 
handedly wiped out two German ma- 
chine gun nests, led attacks on two 
others, drew fire on himself to permit 
the evacuation of wounded comrades, 
and then led a battalion advance 
through enemy minefields. For his ex- 

traordinary feat he received the Dis- 
tinguished Service Cross, the worthy 
but lesser medal that was the highest 
honor the segregated army of (he day 
saw fit to give to deserving blacks — 
and to Japanese-Americans as well. 

Even at this remove, it is difficult to 
confront the paradoxical fact that, as Mr. 
Clinton said, the honored seven were 
to sacrifice everything for 
even though freedom’s full- 
ness was denied to them.” Mr. Baker 
said the other day was that be and others 
were "angry young men,'' but they 
were also soldiers and "we had a job to 
do and we did it.'' There apparently was 
no thought of bargaining military ser- 
vice and exposure to peril on the bat- 
tlefield for the full benefits of American 
dtizenship at home. Rather, there was 
an awing sense of duty to the nation, 
even when civic compensation was 
slight — and when blacks were com- 
monly and viciously characterized as 
racially deficient in combat qualities. 

The explicit delivery of honor at the 
level at which it was earned does not 
erase the original offense. But it ac- 
knowledges and refutes it. 


What to Do as India and Pakistan Go Nuclear 

a / 

W ASHINGTON — India and 
Pakistan are too far along in de- 
veloping atomic arsenals to be pres- 
sured out of the nuclear option. The 
United States should accept that its 
effort to enforce nonproliferation in 
South Asia by imposing sanctions has 
failed. Instead. Washington should of- 
fer both countries “a broad array of 
incentives," including arms supplies, 
to encourage restraint. 

This grim assessment of die present 
and surprisingly optimistic "solution" 
are the main features of a task force 
report sponsored by the Council on 
Foreign Relations to provide Wash- 
ington with heated discussion in this 
cold inaugural winter. 

That it should do. The task force of 28 
foreign policy experts, who remained 
deeply divided at the end of their de- 
liberations on "A New U.S. Policy To- 
ward India and Pakistan," focuses 
badly needed attention on the world's 
most unstable nuclear arms race. 

Hie report also highlights the Clin- 
ton administration's uncertainty and 
timidity on policy for the subcontinent. 
The White House and the State De- 
partment have largely deferred to Con- 
gress. which has led to an American 
policy that is slow to adapt coocep- 

By Jim Hoagland 

tually and rigid in implementation. 
Leaving Congress in charge also makes 

the India - Pakistan conflict a Washing- 
ton lobbyist's dream. 

A column I wrote last year ques- 
tioning a plan to send U.S. arms to 
P akis tan chew a howl of pain from 
Lanny Davis, recently hired by the 
White House to defend President Bill 
Clinto n agains t snanHal stories. Mr. 
Davis was then billing Pakistan $295 
an hour for, among other things, help- 
ing push the arms sale plan. Not long 
after that I got a call from a much more 
relaxed Mike Deaver, Ronald Reagan’s 
"vicar of spin," now on contract to the 
Indian government. 

The majority mi the cask force panel 
of former government officials, schol- 
ars and policy analysts side with Mr. 
Davis, not Mr. Deaver. They urge new 
U.S. arms sales to Pakistan. For bal- 
ance, they also urge big U.S. arms sales 
to India, as part of an expanded stra- 
tegic partnership with New Delhi. 

The panel calls on the United States 
to recognize that neither India nor 
Pakistan can be pressured to give up the 
bomb by existing congressional restric- 

tions on arms purchases and economic 
aid. Hie United States mast choose a 
more realistic approach and offer car- 
rots, not sticks. 

As the report notes, the Clinton ad- 
ministration seems to have edged up to 
the same conclusion. For the past two 
years the United States has privately 
urged India and Pakistan not to put into 
the field missiles that could deliver 
nuclear warheads, or upgrade their ex- 
isting nuclear weapons. In return, 
Washington would try to improve re- 
lations with both countries. 

The group of experts not only en- 
dorses this approach but urges that it be 
expanded andmade explicit. But, as the 
report acknowledges, both India and 
Pakistan have failed to agree to most of 
the red lines suggested by the admin- 
istration, which has been unwilling to 
say to Congress or the public that it has 
lowered its nonproliferation goals. 

"The United States should signif- 
icantly expand its bilateral economic, 
political and military ties with both 
countries, providing a broad array of 
incentives for each country to help 
bring about restraint in the proliferation 
arena," the task force majority urges. 

These proposals would commit 
America to the same kind of supply-side 

diplomacy that obliges Washington to 
arm both Greece and Turkey and then jk / 
periodically intervene to stop them from g y 
using those arms against each other. 

You can argue that die current tense 
standoff in the Aegean Sea is better y 
than a full-scale war. Bui it is hardly a ; 
model to emulate. For oik thing, the 
India-Pakistan confrontation would be 
far more difficult for Washington to ; 
crisis-rnanage, and its nuclear dimen- ‘ 
sion makes it far more dangerous. ^ 

India is too big, too seff-imponant ^ 
and too different culturally and socially 1; 
for Washington to try to manipulate in T 
this manner. Pakistan, which borders on " 
being a foiled state, also defies remote 
control. The conceit that Washington 
ran woo such nations into reasonable- n 
ness by passing exit aims and other - 
goodies has been disproved in Iraq, Inr 
China and elsewhere. Bin it is a Was! 
ingtoa mind-set that does not die. 

The task force is right: U.S. policy 
toward India and Pakistan needs re- ' 
view. But putting Washington in the 
middle and opening the gates of arms \ 
supplies to both rides can only make .!■ 
thing s worse. The United States per- T 
forms hetier as an honest broker than as 
a merchant of influence. 

The Washington Post. 

Now It’s Up to Arabs to Keep Netanyahu Inside the Oslo Tent 

N EW YORK — There are 
many ways to define the 
importance of the Hebron deal, 
but forme it comes down to this: 
The conservative right in Israel 
has finally recognized what the 
center and tire left have known 
for years — there is only one 
peace process, there was only 
rate peace process and there will 
be only one peace process. 

It is the Oslo process that 
Yitzhak Rabin began, that Shi- 
mon Peres advanced and that 
Prime Minister Benjamin Net- 
anyahu has now embraced. 

Israel's Labor Party leaders 
say the Hebron deal that Mr. 
Netanyahu has concluded is the 
one they negotiated, with only 
min or improv ements . They are 
wrong. This version is vastly su- 
perior because it was reached by 
Mr. Netanyahu. He brings the 
other half of Israel (or at least 
half of tiie other half, making a 
75 percent majority) into Oslo. 
This puts him m a very dif- 

By Thomas L. Friedman 

ferent position. Ever since Oslo 
was signed, he has tried to prove 
that it was a bad agreement, and 
his tacit allies were those Is- 
raelis, American Jews and Ar- 
abs who wanted Oslo scuttled. 
From here on he becomes an 
owner of Oslo, even if only a 
conditional owner — condition- 
al on better PLO compliance. 

Instead of always looking to 
point out deficiencies in Oslo, 
he will now have a stake in also 
highlightin g its strengths. His 
tacit allies will be the 75 percent 
of Israelis who want Oslo to 
succeed, and his enemies will 
be those Arabs and Jews who 
still want Oslo to fail. 

So he is coming into the Oslo 
tent, and by bringing half his 
coalition with him he is making 
that tent sturdier. It was the right 
tiling for him to do, and, within 
his own political context, the 
courageous thing to do. 

But let’s have no illurions- 
Mr. Netanyahu is still ambival- 
ent about all this. He and Yasser 
Arafot still have a highly dys- 
functional relationship that U.S. 
mediati on ha« maslrwl They will 

both have to be watched closely 
for compliance. 

But here is the good news: In 
seven months, a man elected 
prime minis ter of Israel on a 
right-wing platform ends up im- 
plementing the basic platform 
of his left-wing opponents. 

How come? He is acting on 
the will of Israel’s silent ma- 
jority, the same will that pro- 
pelled Mr. Rabin. This Israeli 
silent majority wants separa- 
tion. with security, from the Pal- 
estinians, and integration, with 
prosperity, with the world. 

ft wants a peace process that 
carefully, cautiously continues 
testing whether there is a Pal- 
estinian partner for such a deal. 

When the Israeli silent ma- 
jority felt that Mr. Peres was 
going too quickly and incau- 
tiously in that test, it yanked him 
back, and when it felt that Mr. 
Netanyahu was going too reluc- 
tantly, it yanked him forward. 

What the Arabs have to un- 
derstand is that die only way 
Mr. Netanyahu and the Israeli 
silent majority will take Oslo to 
its logical conclusion — a Pal- 
estinian state in Gaza and the 
West Bank — is if the Arabs 
now step up and really make 
peace me aning ful to the new 
constituencies that Mr. Netan- 
yahu has brought into the Oslo 
tent. It is time that Egypt’s pres- 
ident came to Israel for more 
than just a funeral. 

For die last three years there 
have been two huge fantasies 
around the peace process. The 
Likud fantasy was that Oslo 
never really happened, or never 
really took root You can kiss 
that one good-bye. The Arab 

fantasy was that Israel was the 1 
Labor Party, and the Arabs) 
could have a stable peace with 1 
Israel without really engaging) 
the Likud half. Wrong as well. , 
The Likud coalition has two < 
factions — those Israelis who | 
will never make peace, and* 
those Israelis without whom 
peace will never be made. J 

Hie second group was criz-> 
ical here. They are the Israeli’ 
soccer moms, the security ; 
hawks and my grocer in Je- 
rusalem — who helped bring! 
Mr. Netanyahu to power and; 
who have now tentatively , 
nudged him into Oslo, because! 
they want tire test to continue^ 
But they want the test to be safer 
and less divisive at home. \ 

If the Arabs reach out, engage i 
and touch that critical group, | 
they can count on a solid Israeli , 
silent majority that will keep, 
tins test alive. If they don’t, the : 
test is doomed. 

The New York Times. i 

Yes, America, a Single Currency for the Coining Superpower 

L ondon — Robert j. 

Samuelson thinks that a 
single European currency is a 
"lunatic idea" that is "bad for 
Europe" and may be "bad for 
America and everyone else” 
(IHT Opinion, Jan. 9). 

There are certainly doubts in 
Europe about a single currency. 
They are strongest in Britain, 
where the latest opinion polls 
show more than half the voters 
opposed and only a quarter in 
favor. This reflects the Europho- 
bia of the largely foreign-owned 
British press, which has long 
since convinced the public that 
further European integration is a 
plot for the takeover of Britain 
by bed-clicking Gauleiters. 

These fantasies have con- 
demned Britain to a fringe role 
in Europe, but on the Continent 
the position is different Hie 
same public opinion poll shows 
a clear majority in favor in 
France and Italy. Opinion in 
Germany is evenly divided, but 
issues of this kind are not de- 
cided there by public opinion 
polls but by the political class. 

By Roy Penman 

The financial markets in 
Europe think that a single cur- 
rency will happen and will, in 
stages, cover Continental 
Europe, except Denmark and 
Greece, respectively political 
and economic basket cases. 

Several hundred million for- 
eign-language-babbling Euro- 
peans may seem a tad exotic in 
Indiana, but they would be sur- 
prised to be called “lunatic." 

Two further claims are made 
by Mr. Samuelson. One is that a 
single European currency might 
* ‘trigger global protectionism.’ ’ 
Precisely the opposite is likely. 

What bas been created ui 
Europe is a largely single mar- 
ket, to the great benefit not only 
of its citizens but also of the 
foreign countries which trade 
with and invest in it. But dif- 
fering economic policies in the 
countries of the European Uni- 
on would mean swings in ex- 
change rates. These in turn 
would create irresistible pres- 
sure for import restrictions. 

which would blow the single 
market apart. 

The other mistake is the old 
chestnut about labor mobility. 
Without this American charac- 
teristic, it is argued, a single 
currency cannot function. But 
labor mobility is less essential in 

deal diversity of industry. 
For many years, Germany, 
Belgium, the Netherlands, Lux- 
embourg and Austria have 
locked their exchange rates. 
Has this meant a great influx of 
Belgian taxi drivers in Beilin or 
Dutch acrobats in Vienna? No 
more than there was large-scale 
migration between Bavaria and 
Prussia when Germany settled 
on the Reichsmark as a single 
currency in 1876. 

What Mr. Samuelson 's com- 
ments point to is not an eco- 
nomic judgment but a political 
doubt This goes to the heart of 
American ambivalence about 

No European should ever for- 

A Junta Linked to Drug Traffic 

B angkok — Drugs as 
much as human rights and 
trade could become the pivot 
in U.S. relations with South- 
east Asian countries. The rea- 
son is Burma. 

Minor frictions will contin- 
ue as Western nongovern- 
mental efforts to link trade and 
human rights mesh with local 
efforts. These frictions are 
containable within traditional 
close ties between die West 
and non -Communist South- 
east Asia. The regime in Ran- 
goon is a different matter. 

Western opposition to 
Burma being invited to join 
the Association of South East 
Asian Nations while the 
present regime remains in 
power has engendered plenty 
of official resentment in a re- 
gion sufficiently confident to 
react strongly against outside 
interference. Established re- 
gimes in the ASEAN coun- 
tries are also upset because 
local opposition parties, as in 
Malaysia, have latched on to 
the anti-Burma theme. 

Geographically, Burma is 
part of tiie region, and its gov- 
ernment is arguably only mar- 
ginally more oppressive than 
that of Vietnam, ft has re- 
ceived Western attention 

mainly because of Daw Aung 
San Suu Kyi, the 
opposition leader. 

the persecuted 

But one factor distinguishes 
Burma from Vietnam and lays 

By Philip Bowring 

ASEAN open to charges of 
hypocrisy: heroin. 

The opium/heroin business 
has blossomed under Ran- 
goon's junta. The realm of the 
drug lord Khun Sa has not 
been abolished, it has been 
absorbed. The junta is deeply 
involved with the drug barons. 
Drugs are the country’s main 
income earner. 

One result is that foreign 
investors, particularly in ho- 
tels and property develop- 
ment, have difficulty finding 
partners whose capital does 
not derive from this source. 

ASEAN (and other) coun- 
tries insist that investment will 
open up Burma politically and 
economically. It is none of 
their business how local part- 
ners get their funds. 

But the heroin trade is in- 
creasingly a regional problem. 
Singapore’s draconian anti- 
drug laws have been success- 
ful in keeping local usage 
rates low, but Singapore is an 
exception. Addiction is sur- 
ging in Malaysia, despite laws 
almost as tough as in Singa- 
pore. Hie number of addicts in 
Burma itself is now cachin g 
upwith Thailand’s estimated 
500.000. China has major ad- 
diction problems in Y unnan. 

Despite frequent execu- 
tions of small dealers, and 

some high-profile p unishme nt 
of foreigners, the region in 
general has made scant effort 
to tackle the ki n gpi n s. They 
are too rich, or axe politically 
useful — especially to China. 

Money laundering is often 
viewed as a legitimate frnswy-gg 
for financial centers, and in- 
vestors are not encouraged to 
look too closely at the cola- of 
their Burmese partners’ mon- 
ey .Heroin is spreading in the 
region — and bringing needle- 
driven AIDS with iL 

There is nothing now to be 
gained by backing away from 
a tough policy toward a re- 
gime for which heroin is not 
just an unfortunate fact of life, 
or even a useful bonus. Drugs 
and Chinese weapons are the 
Burmese junta’s lifelines. 

It is argued that the U.S. 
attitude toward (he junta is 
driving it further into China’s 
arms, depriving America of 
commercial opportunities and 
encouraging Rangoon's reli- 
ance on drug money. The real- 
ity is that Burma offers few 
legitimate, long-term business 
opportunities. Aik! the reli- 
ance on China could scarcely 
be greater than it is now. 

This is an issue on which 
the United States can fake a 
stand and expect that ASEAN 
countries will swallow a little 
{Hide and recognize where 
their self-interest lies. 

International Herald Tribune. 

get American support for Euro- 
pean integration when it began 
in 1950. It was not an easy de- 
cision. American business and 
fanners were uneasy at the pros- 
pect of discrimination against 
them in the European market 
But in Washington the states- 
manlike view prevailed that a 
united and prosperous Europe 
was better for world security 
than a poor and divided one. 

Having one’s wishes granted 
is often one of life's disappoint- 
ments. Some Americans have 
begun to see that a successful 
euro might be a rival to the 
dollar, that a united Europe 
might be less biddable than a 
quarrelsome mob of small 
countries, which America, the 
supplier of troops and money, 
could always divide and rule. 

Hus is hardly a s ur prising 
reaction. It happened in reverse 
136 years ago. 

In March 1861, Abraham 
Lincoln arrived in Washington 
to take the oath of office as 
president. The Union was col- 
lapsing around him. He had had 
to change trains to avoid an 
attempt at assassination. Seven 
states had seceded; eight were 
on the brink. When he took of- 
fice on March 4 as president of 
the Disunited States of Amer- 
ica, London was delighted. 

Oh March 5, The Times 
quoted with relish the "Pres- 
ident of the New Southern Con- 
federation” as declaring "that 
die separation just consum- 
mated was a reality and a polit- 
ical necessity arising from the 
natural discordance between 
Northern and Southern interests 
and that the dissolution of the 

Union was not only a necessity 
but an advantageous event.’ ’ 

The British were cross be=_ 
cause the North planned a big, 
increase in the customs tariff; 
("raising the duly on cutlery byi 
250 per cent”). They were sort* 
because among the welter of; 
separate currencies and states,' 
Pennsylvania had recently reft 
pudiated its debts, and British - 
investors had lost a bundle. 

Yet the main cause of British- 
elation was politicaL The naju 
pudent Yankees who ha^. 
spurned British rule and wh^ 
aimed to build ahuge new coun^ 
try that would rival Britain ha^ 
got their comeuppance. ' 
Anyone who had then proph^ 
esied that this state of 31 miHiohj 
people, of two cultures at wac 
with each other, would become; 
the world’s superpower anir 
would three times save Eu- 
rope’s freedom would haife, 
been laughed out of court, 

The next century will see a' 

federation become 3 , 

* . 

partner. This change in the 
lationshxp will need much care;" 
ful handling on both sides. T* 
Let us hope that the two su- 
perpowers will, as Cariyle wrote;! 
of the armies of Prussia and Brfc J 
tain in the Seven Years' Wdr 1 
(1756-1763), "inarch divided] 
but fight untied” — this time fdr 
peace, democracy and justice iSL 
the world 

The writer, a former reprt y. 
sentative of the European Com*' 
mission in Washington, contrilP 
uted t/us comment to the Intei$). 
national Herald Tribune. 




1897: English Rule sickness andaeddents, and pen^ 

CAIRO — The post of President 
of the Egyptian Railways Ad- 
ministration will be given to a 
technical expert in railway mat- 
ters. No one has yet been se- 
lected, but the new president 
will in any case, be of British 
nationality. No wonder the 
French are wild at En gland hold- 
ing Egyptl Also, the accounts of 
the Egyptian Telegraph Admin- 
istration for tiie past year show a 
surplus of nearly £ 12 , 000 , the 
receipts amounting to £53,000. 
This result is due to the Dongola 
expedition and to increased 
commercial activity. 

1922: Czech Welfare 

PRAGUE — By the establish- 
ment of Gzecho-Slovakia as a 
Sovereign State, social legisla- 
tion there has proceeded on dif- 
ferent lines than before. Social 
insurance has been concentra ted 
on insurance of workers a gain# 

sion funds for private employ^* 
Recent enactments took mio ac*^ 1 
count the change in the cost q£b 
living and in the growing polit- 
ical power of the labor parties. A 
special commission was apt- 
pointed to draw up a scheme of- 
a general social insurance. 

1947s Russian Orders \s 

FRANKFURT — The “Frank^ 
forter Neue Pre&se” reporteiiL. 
that law enforcement measures!] 
being used in the Russian Zone} 
of Germany have “robbed the- 
fanner of his initiative and, 
lolled his. sense of responses-; 4 ^ { 
ity.” The causes of this dis.-- ‘ ■ - '• 
satisfaction are orders wbicdf 
demand that formers delivef, 
certain quotas of food, without 
examining the ability to pm# 
duce the amount Farmers whq, 
are unable to deliver are brought; 
before -courts and insome ease&j 
whole villages are held respoifr, 
sfble for raflnre to deliveil: 

** - 

-lo ]f 


PAGE 12 



s America 

rr o 

ak Sales Crush Apple 

Bloomberg News 

CUPERTINO, California — 
Apple Computer Inc. reported a 
first-quarter loss Wednesday that 
was wider titan analysts had ex- 
pected but within the range of the 
computer maker's Jan. 3 forecast. 

Apple posted a loss of $120 
million, or 96 cents a share, for the 
three months ended Dec. 27. It 
reported a loss of $69 million, or 
56 cents a share, in the like quarter 
in 1995. Sales fell 33 percent, to 
$2.13 billion from $3.15 billion. 

Analysts had expected a loss of 
66 cents a share. 

The company said it expected to 
its fourth 


Amelio promised last year. 

The company had warned that 
poor sales of its Performs home 

computers, an inability to meet de- 
mand foritsPowerBook laptops and 
weak demand for its machines 
would contribute to a loss of $100 
milli on to $150 million in the 

Apple cm prices on the Per- 
formas and offered rebates, which 
hurt its profit margin, which fell to 
19 percent from 22 percent in the 
fourth quarter, though it was high- 
er than the 15 percent in the com- 
parable period a year earlier. 

The No. 3 personal-computer 
maker tyhinri international Busi- 
ness Machines Corp. and Compaq 
Computer Corp. also said it would 
take an unspecified charge this 
quarter to cover its restructuring, 
which could include additional job 

In New York, Apple shares 
closed down 625 cents at $1725. It 

releasedi hs financial report after the 
close ofU.S. stock-market trading. 

* Earnings Rise 52% at Sun 

Sun Microsystems Inc.'s 
second-quarter earnings rose 42 
percent, bearing analysts' estim- 
ates, Bloomberg News reported 
from Mountain view, California. 

Net income rose to $1783 mil- 
lion, or 46 cents a share, from SI 26 
million, or 32 cents, in the com- 
parable quarter last year. 

Analysts were expecting earn- 
ings of 42 cents. 

Revenue for the quarter ended 
Dec. 29 rose 19 percent to $2.08 
billion from $1.75 billion. 

Sun shares fell 625 cents to 
$2835 on the Nasdaq market be- 
fore the earnings were released. 
Shares rose as high as $29,625 
after tire close of Nasdaq trading. 

Intel’s Sales Forecast 
Dampens Wall Street 

U.S. Plans Sanctions on Argentina 

Very briefly: 


Jackson Halts Mitsubishi Boycott 

NEW YORK (AP) The ReverendJesse Jackson called off 
a boycott of Mitsubishi Motors Corp. dealers Wednesday, citing 
an agreement to improve working conditions at the automaker ’s 
assembly plant in Illinois. 

Mr. Jackson said the Japanese company had made “a 
commitment worth well ovex $200 million that will set new 
standards and challenges for foreign imports.’ ’ 

A Mitsubishi executive vice president, Kohei Ikuta, said the 
company had initialed “one of the most comprehensive” 
training programs on guarding against samal harassmen t TP * hr* 
automotive industry's history. Mr. Jackson organized the boy- 
cott last May after lawsuits were filed against the company’s 
U.S. manufacturing subsidiary alleging sexual harassment. 

•U.S. businesses kept inventories relatively stable in Novem- 
ber. showing a rise of just 0.1 percent to $1.01 trillion, the 
Commerce Department reported, in part because retailers 
avoided overstocking for tire holiday shopping season. 

• Softbank Corp.’s Ziff-Davis Publishing Co. is expanding 
ZDNet, its Internet service that supplies information about 
computing and technology, by inaugurating 1 0 local-language 
Internationa] editions. 

• Bre-X Minerals Ltd. plans to fight a $2 billion lawsuit by 
the Indonesian businessman Jusuf Memkh aimed at pre- 
venting the mining company from selling its stake in an 
Indonesian gold find. 

• Seita S A can proceed with port of its lawsuit alleging that 
Salomon Brothers International Ltd. mishandling swap 
investments tire French cigarette maker made in 1994, a U.S. 
federal judge has ruled. 

• Cisco Systems Inc. and Hewlett-Packard Co. formed an 
alliance to support one another’s products and help businesses 
link computers to a network. 

• Gateway Apparel, a privately held owner of discount 

women's clothing stores, has filed for Chapter 1 1 bankruptcy- 
‘law protection. • ■ Blo&mbers.AP. Bridge News 

Ox*f*kd tyOwSagFnm DajxBdta 

WASHINGTON — The Clinton 
administration said Wednesday that 
it planned to increase tariffs on $260 
million worth of trade with Argen- 
tina in a dispute over protection of 
U.S. drug patents. 

The decision was announced by 
the acting U.S. trade representative, 
Charlene Barshefsky . The sanctions 
would go into effect March 1 after a 
public-comment period. 

This gives tire two countries time to 
negotiate a settlement to tire dispute, 
which involves complaints by U3. 
pharmaceutical companies that their 
products were not being protected by 
Argentina’s copyright laws. 

hr particular, the U3. govern- 
ment has complained about a five- 
year transition period included in 
Argentina’s patent law, which al- 
lows pharmaceutical companies to 
copy foreign medications without 
paying a licensing fee. 

Ms. Barshefsky said the law. en- 
acted by Argentina in December, 
“fells far short” of the government's 
pledge to improve patent protection. 

The trade sanctions would come 
under a program known as the gen- 
eralized system of preferences that 
allows developing countries to ship 
products to the United States duty- 
nee as a way of promoting eco- 
nomic development through trade. 

Ms. Barshefsky said that unless 
tire current dispute is resolved, the 
adruioistration will withdraw 50 per- 
cent of Argentina’s duty-free priv- 
ileges. That would affect half of the 
$520 million in products Argentina 
shipped to tire United States last year 
under the duty-free program. 

The U.S. imported $3 .76 billion 
in goods from Argentina in 1995. 
The largest imports, by value. In- 
cluded oil, meat, and leather goods. 

The U.S. was issuing a list of 
target products and asking for public 
comment to help draw upa final list 
of Argentine goods that would lose 
tax-free preferences. 

(Bloomberg, AP) 

Cc mptifJ M Ota SutfFrrtn Dafacba 

NEW YORK — Stocks fell 
Wednesday after Intel warned that 
its revenue growth in the first three 
months of 1 997 would not top the 
previous quarter's. 

The forecast raised speculation 
that if one of America’s most prof- 
itable companies was slowing, the 
best may be behind for others as 
we EL 

“ 1 Earnings will continue growing, 
but not as fast as before,” said Ro- 
land Machold. director of the New 
Jersey Division of Investment 

The Dow Jones industrial aver- 
age closed was 35.41 points lower, 
at 6,726.88. Advancing issues were 
neatly even with dec liners on the 
New York Stock Exchange. 

The Standard & Poor’s 500- 
stock index fell 1 .66 to 767.20. The 
Nasdaq Composite index, full of 
computer-related companies that 
see Intel as a bellwether for the 
industry, dropped 12.83 to 

The Dow’s retreat followed six 
record closes in seven sessions. Ex- 
pectations of slow growth, sedate 
inflation and robust profits fueled 
those |ains. 

Intel tire world’s biggest maker of 
microprocessors said rising costs, 
price cuts and a seasonal fall in de- 
mand would hurt profit this quarter. 
Intel fell 4 33/64 to 142 39/64. 

The warning overshadowed stel- 
lar earnings. Inters fourth-quarter 
profit doubled to $1.91 billion, or 
52.13 a share, up 1 3 7 percent from a 
year earlier. 

Intel’s warning particularly hurt 
computer stocks such as IBM, which 
fell 2 57/128 to 164V& and Oracle, 
which fell 1 9/16 to 41 11/16. 

One exception was Advanced Mi- 

cro Devices, which gained 1 to 3316. . 
The chipmaker reported a narrower - } 
than -expected loss Monday. 

But a host of small companies 
spanning finance, airline and en- 
ergy reported unexpectedly strong 
earnings, tempering Intel’s disap- 
pointing forecast. 

State Street said profit jumped 19 


percent, in large pan from a surge in" 
processing securities. Its shares - 

Ahmanson rose Vs to 34'A after : 
repotting that net income jumped *’ 
50 percent, bearing estimates. \ 

BankAmerica gained 5 to 107 1 . 
after it posted a strong quarterly ■’ 

The yield on the benchmark 30- - 
year Treasury rose two basis points * 
to 6.79 percent, as the price fell 8/32 
to 96 9/32. 

Weak profit hurt shares of Tel- .* 
trend. The maker of telephone net- '. 
work equipment tumbled 5% to . 
1 T/s after it said sales and earnings 
for the second quarter would not*, 
meet Wall Street estimates. 

Bay Networks, the most active : 
NYSE issue, rose Vi to 23% after the , 
networking concern reported a loss 
late Tuesday of S172.9 million, or 
90 cents a share, for its second , 
quarter, which ended Dec. 31. .' 

Analysis had been expecting bet- ' 
ter results for the period, but some ■. 
noted signs that Bay had made more 
progress in turning itself around. 

AMR closed unchanged at 83V6 ; 
after the parent of American Air- : 
lines said it earned $133 a share in • 
its fourth quarter, beating analysts' 
average estimate of $1 35 a share. 

(Bloomberg, AP . Market News) 

Fears of Sell-Offs by Central Banks Dull Gold’s Appeal 

Ca^&abr Oar Skff Fran D apaJta 

LONDON — Gold prices fell 
Wednesday after a wave of spec- 
ulative selling provoked by an eas- 
ing of U.S. inflationary pressures 
and persistent fears of gold sales by 
European central banks. 

On the London Bullion Market, 
tite price of gold was fixed at 
$354.45 an ounce, down $2.95. 

In New York, gold closed at 
$35330. down $150. 

The market succumbed to a fresh 
bout of speculative selling in the 
aftermath of the publication Tues- 
day of the U.S. consumer price in- 

dex far December, which eased 
fears of strong U.S. price pressures. 

Gold acts as a traditional haven in 
times of inflation, when interest rates 
seem likely to rise. Higher lending 
rates tend to weigh on stock and bond 
prices while benefiting such com- 
modities as precious metals. 

The market also remained affected 
by fears that European central banks 
might sell substantial amounts of 
gold from reserves to help their gov- 
ernments meet debt criteria for join- 
ing the single European currency. 

The European Monetary Institute, 
tiie forerunner of a planned European 


Bundesbank, Hans Tletmeyer. have 
tried to discourage talk of such sales. 
But the Dutch central bank said 


Monday it had sold 300 metric tons 
of gold from its reserves. 

“Background concerns about 
central bank sales will remain to 
cap” any rise in gold prices, said the 
London-based trading boose GN1. 

The disaffection with gold also 
arises from the fact that demand in 
Asia, which imports more gold than 

any other region in the world, 
chiefly for investment purposes, is 
on a downtrend. (Market News, 
Reuters. Bloomberg ) 

■ Dollar Hits Bump in Rally 

The dollar declined against most 
other major currencies, as traders 
cashed in profits following more 
than a week of gains, news services 
reported from New York. 

Tiie dollar finished at 1 5860 DM. 
down from 1 5930 DM on Tuesday, 
and at 116.875 yen, down from 
116.930 yen. Against other major 
currencies, it fell to 13505 Swiss 

francs, from 13735 francs, and to 
53575 French francs, from 5.3760 
francs. The pound rose to $1.6835, 
from $1.6715. 

Losses in U.S. stocks and bonds 
may have weighed on the dollar, 
traders said, but they said interna- 
tional investors remained drawn to 
U.S. assets. 

"The market was just getting a 
little bit ahead of itself,” said Jim 
Powers of Westdeutscbe Landes- 
bank. “We really haven’t had any 
down day on this recent move up, so 
it was a bit of a correction." 

: (Bloomberg. AP)' 




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3«b 33* 

13* 13* 
W* 14* 

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91 W IB* 

111 4* 4* 

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as «* • 

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Ss £ 

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NCAP1 ■ 







Ckw» Jones 

OPM HU u> w ex 

bmut oa**i buss O04J8 oaue-asM 

Tir*n zaSJJ* 23 0W9 W*.U 

US 237.35 2304B ZUJO 738.05 +89 
£rn» 2DB&09 tUSlR J0414J 209142 <044 

Standard & Poors 

906J2 S90J& 901 J5 —192 
ssrsa S4S33 555SS +7J9 
2O3J0 20151 20254 +0.16 
MSM S3JS2 64j S5 +0-72 
770.95 76352 74750 —1^6 
75757 749A8 75340 —OS3, 

40453 4BJO JKBI — n fry 
STX43 S09Jt S11JI —TMI 
JO.TB S54J0 3041 43JH 
1074 mss 3051 +044 

1346.10 133640 Q3A4D -9M 
1149.08 rm.13 n«44 —AW 

1305.11 19847 +M9 
1444.92 UB72 144445 — 3J9 
1421J5 M1A30 162103 +4J4 

91102 99733 91159 +1141 

MAS 56606 9A4B —147 


_ Daw Jones Bond 







Most Actives 

VoL Hab 
BoyNMl 64587 34 

AMO S26W 34* 

r e<«ex srm 3»« 

Kmm 55tH3 11V. 

AT&T S 50360 33* 

Cocoas 48444 STY, 

IBM 441« 149* 

AnCw 43387 59* 

39838 B0* 
39414 37* 

EMC 37878 39* 
ManT 1735 39* 
PemCox 3739 39* 


VbL H8h 

mm arm i«w 

AcWMnl liwn 44* 
ZM5 87449 
Tow 80473 3BV, 
MM1M 75262 108* 
72SS 79* 
71741 47* 
69068 17% 

SmMicc ssm x 

MlmriU 65880 B4U 
KLA 0344 41* 

Ortxle 5 . OT94 43* 
un S9S 34* 

MtcrocWiX 34* 

WortOCmi 42636 24* 


VOL Mgh Lm Lori 
Hotel 37932 4* M 4 

as* - aSraL. «s- 

s&. %£ ^ ^ 

CrtVML 804 5 4* 4* 

Ncfcort me 21 * 20 * 11 * 

Ed’oBav *895 Mte 6Vu W u 

TWA 5644 4* 44W 6* 

Anoo 4107 **• 9* Wu 





















♦ IW 
































— 41S 



+ lft 



+ Sft 



+ Sft 










34* 37 

26* 914 -* 

14* 14* — * 

39b «* -* 

41* 41* — 9 
14* 949k -fte 
33 33* -4* 

24* 34* — * 



Jan. 15, 1997 

M0b Law Com C&ge Optot 


LOOO Du nMmwv- dalkto o® 

Mar 97 174 tJB’A 273* 4&JS3 IBJTA 

MOV 97 274* 2-70* 274 +ejC*5&8T 

JUV7 274* 270* 274 +00*^245 

Sbs>97 179* 267 170* 'UD 7MS 

Dec *7 249 244* 248* +203*32919 

Bf.sato HA. Tue’vates S2MB 
Tub's open Hi 294.144 ofl 34U 

100 tons- doOon ACT Ion 

Jon 97 94260 937.10 MOJO +X5D 2414 

MOT 97 Z3U0 231.10 2U30 +200 37J17 

MOV 97 2S\M 222 M 931.30 +130 19^10 

JJ97 Z3B-5D VJM 2305S +ZJ0 I(J» 

Ann 77 22200 WOO 22200 +150 32Q4 

5«=77 222JB 7WJ0 221 JO +250 2708 

Estaoto NA. Tug's. solas 22^40 
TWSOMtim 67 737 up 1519 

42000 U- MBS bot 108 to. 

JOI97 3265 304 -a 10 3770 

MV97 2*96 2466 24J7 -211 51600 

MCV77 K33 2560 2569 -211 17,146 

Jul 97 2558 25J0 2240 -213 T3794 

Auo 97 2540 256 2550 -219 3646 

5«>97 2575 2LS 2159 -211 2549 

Esi. totes NA. Tue^-scte 15341 
TU9^0P*nbit 93687 up 80 


WOO bo mtomwiv anOan Mr bwOte 
Jon 97 7A5 734 764Y. +0.10* 9730 

Mo-77 7.44 737 7 AS* +058*72053 

MOV 77 765* 7Jt 7 AS *tLBTA XJOi 

Jul 97 7.45 739 764* +066*25644 

AtM 97 7 M 734* 739* +0M 4621 

EA SOlK NA. Tub's, solos 51975 
Toe’s open s* 153.118 off 442 

HUP Low Ctae CM* Opbit 


1SJJ00 to.- cents oer t>- 

Mor97 6260 7930 7975 -2*0 21694 

Mov97 6LQ0 0250 B265 -235 5J9* 

JW97 8730 0570 6565 -121 1372 

Sep 97 90.10 8930 8865 —175 Ml 

Ea. staes NA Tub's, sotes 3743 
Tue'sopcnM 29374 up it 


Mm \17 35370 3S170 3SZ31I -150 ( 

F+097 35650 3S260 3S3D -150 93.982 

Mor 97 3S4J0 —150 

Ate 97 35630 354-10 35560 -150 32733 

Jur 97 34033 35660 35736 —150 19,264 

Auo 97 34170 3»J0 35950 -150 5,9*7 

OO 97 34250 36150 3060 -150 1073 

Dec 97 JS7.10 34461 34450 —150 1551* 

Est.mes NA Tub's, sates 54664 
Tub's ottoiW 204.117 up 487 


Jon 97 109.40 

Feb 97 106.10 
Mor 97 10760 
Ate 97 10560 
MOV 97 10350 
6*1 97 

Jul 97 10)60 

AUO 97 

Sep 97 9950 

Tub's open W 



187 JO 10951 4IJB 
16UD 10210 +155 
miD 104.90 +155 
18560 105.10 +155 
101 JO 10350 +150 
HUM +759 
10210 10153 +155 
102*0 +1S 
9960 9960 +155 

. Tub's, sotes 2341 
56,149 dfi 3239 










Hloh Lab Close an Octal 

Alar 97 1305? 730.14 73062 +2767ZU320 
Jun 97 129.12 12262 12662 +218 1*652 
Sep 97 127-36 127.16 127.12 +0.16 397 

Dec 97 N.T. N.T. 9658 +21 B 0 
EM. votinnc 167.949 . Open Wj 1340W off 

m.200m«s»-pteof looao _ _ 
MBI97 13167 132*5 130A2 -2® *9Jg 
JUBI97 13260 13213 13224 - 203 1664 
EctsMBte 6L283. Ptev. tales 71640 
Prev. open 24:101.352 up 137 

SI mukln-pte ol lOOpd. 

Feb 97 94530 9*510 94510 
Mar 97 9436B 94340 94370 
Ate 97 94320 94300 9*310 
Jta»97 91710 94.17B 84190 
Mor 06 93J60 93230 93270 
Jun DO 91220 93170 91210 
Sep 00 91170 93120 93149 
DecOO 91B90 93JH0 91080 
EsL5C*es NA Tub's soles S3A771 
Tile'S Open B* 2,114.137 off 12743 

Iter COT. te 
7425 J4M 

+ ® 



J St 












US «Vu 3ft 

siS ift if* 

2 a & 

704 16* 15* 


5* +*. 

Tradtog Activity 








iwre issues 







V» ■ 

Mean art 

Total issues 
New HOTs 
New Laws 













Martlet Sales 



















New Laws 





to ambus. 



CotnpauY ‘ 

Pur Amt 

Roc par 


Per Atari 

R ec POf 

A lorw 191 114 360 16 +&0216 22721 

MOV 97 174* 172 3J2* -060* 6546 

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Sep 97 351* 159 359 -202* 1.172 

Estsoto NA Tub's. sates 13J69 
Tub's open W 42.141 UP 340 

JOT 97 








4 18 

Mar 97 




+ 18 






♦ 18 











♦ 18 


Dec to 



m « 

♦ 18 


JOT 98 


+ 18 




T prrJl i* 

nrcSfc n 









%ss& n 



'a ss £ 

473 13* 13V. 

132 «■ 4* 

770 IS 14* 

m ss* i4* 

m <K « 

427 U* 15ft 

xt — — 



USBio Wl 



Vtaefl _ 




V tesri c 


19ft 18ft 

ffl « 

37* 31* 
WS 7* «ft 

•« ffl ffl 

flj* 29* 

102 IBM 1* 

^4 % *5 
« ig ffl 

e £ 

231 1W JJf 

S ffl ffl 
^ SJ % 
£ ? i 

22 X 
& k 


GeoAmlnvesin c 60 V-27 3-12 

c- fndtate* jD 6 Snoi hoonv. 

stock sptrr 

Conseco Inc 2 terl spO. 

*botflWB» Gowr4ior1 sp«. 


ContaOteBncp- S% 3-12 3-19 


8 29 1-30 3-19 

.14 3-19 3-19 
HefHoge FteJS+cs O .15 1-30 2-11 

-- t+oCon* Nor Gos a 65 2-28 S-M 

_vS ReplltiBeNY, O 56 3-15 4-1 


Dbo&BtwW1W» - 52 2-20 3-10 

St Paul Bran - - .12 1-31 M3 

■DRjGWW - 6325 2-3 3-4 


BdB Bay auks 


AJL Paps Trust 

Owetond CSfh 

MaRwy rVwnca 
Price Enterprises 
Putnam MYM Ad 
Putnom IncnFd S. 

Pomam IneaFdM, 

sum aw taa> 


k — 

waoar&p q q oa rttrty ? s-MtaKanert 







Are to 










-0)3 12844 

Aug 97 












Dec 97 






Est.nles 14802 Tup** sales 


Tub's open W 


up 344 


5&0H OT- ceres per B. 

•Jcr to 






Men- 97 






Are 97 





44 M 







Aug to 


71 JO 




EsLteto NA Tue's.ltees 9532 
Tue'sopcnM 94JC6 up 747 

SSnvr per troy ea. 

J«97 34160 34160 359.10 —1J0 

Ate 97 36560 36150 38370 -260 

JUI 97 34750 34500 3<iI0 -2J0 

0097 34960 346.00 34750 -270 

JOT 96 371 5B 37158 349.90 —IX 

EM. sties HA tile's, ides 2J90 
TuCtCPenM 24554 Ofl 59 








I5S6D3 ?5B7J» 158294 156348 
Id 161850 1619JX) 1615* 161650 

Dol lore per metric ton 

344250 244750 245050 245S50 
226750 226650 236050 228250 

709* 710* 

71650 71950 





-&PV 72.10 71 JS 7U0 +63J 

EHSOte 2579 Toe’S ptes Z3U 
TOe'seoanM 19519 up ID 


729550 730550 706S50 709550 
738550 739050 719050 719550 

Fib 97 7757 T73S 7760 — 0.12 

Apr 97 7658 7S50 7127 -067 

Jun 97 7952 7850 79.12 -0.16 

Jul 97 7650 762S 7625 —0.15 

Aup97 7450 7170 7355 -51S 

Oct 97 4760 47.12 67.17 

EstsAet 5J40 Tub's, sate* 6.744 
Tub's open M 34J3D v 406 


4M8P to- w*i Mr b. 

Feb 97 784J 7825 763S -iS2 

Mir 97 7130 74J0 7650 -VO 

Hart) 79.15 77.52 77S5 —115 

Jul 97 7&70 75J0 7*65 -437 

Aug 17 7550 7300 71® -125 

Estates 2523 Tin's. H ies 2J77 
Tier's open in# J.UB up 79 

664 0 







« ivu 

2 ii fc 1 * 

3 ffl »" 
SI ffl ffl 
3 ffl ffl 





— ' 71 


1 *. —* 


ffl +s 

ft *> 
11 -* 
M» — *. 
M* - 

is* +* 

tea —ft 

12Vu ♦*# 

..nt jc 

1*1 1 * —* 

Stock Tables Explained 

Sides flguuae imofflcM. Yfcortr and fcm reSed the pnviow 52 weta i*nflie anoitt 

nee^buti»Htetal8Nto^d»lMieWPS13mr5>0CKiftlitai5 OT nurai9t>25paEErtormore 


dhewbPMftd jolosidiWdeodi aeanni dUwseownta basal on toe ktad 

a - dhMend also te. b -Qfltiwd nda id iMdend plw stock ArtitonL c • (IquUattig 

tfviderxL ec- PE exceeds 99514^ -afled-tf -ntrm yBOfetab «d-fass m tte Inst 12 mute 
• - iSuWend dedned or piAl fr» precefflug 12 months, t - annual rate increased an lost 

dedartfiOR. ff-dMdand to CooadtaR cv^ed » 15% flPiHesIdeiica fOR- 1 - dMdand 

J odured ol4 8f*pnt-up°F stock d teU gvM- i &ridencI paid tots yor, omitted, drietred. or no 

action taken of latest tfvUand maedrie. k - dMdfittd dedmsd or paW tte ye a*, an 
aaimwMlve tain wflti UMdands toaraan. ■- anuud iota lodoced on loti deckuatlaa 
■ - now te» to tte pa» 58 teefcs. The WfllHoeir innoe baoJn* IW **“1 ftndbj. 

Bd- next day delwfy. p - bdltal fiYWend, amaal rate miknwm. P/B • pjteB-e®nlnB9 rado. 

4 -<toteif-aMiKriutoton±r'dMitoitod6dBi«(wpddtopfeCEdtoo]2iBoidlWplusstock 

dlvMnd. s - slock spSt Dtvktend begins wtti defle ot spflLsfc - sides. t~ dMdond ptod In 
stoefcto mcedtog iJmoBltifc estotuted cosh mfe>M 4 N-dMdMriarsMMftt*B <Ma 
D- newyeaiirNBh.v-tniOng bantouidup in lacatenTdpacbMnB nqoiM 


wf - wtien NeuhV w - With vHirantS- - eMMdeml or a-rfgMs. itato - eMBsMbcdon. 

Mr- aflbsoraanaafc. sate to ML fU -fkU. *' -adta to ton 



Mar to 










Jul to 















esi.SEtas 4515 Tub's. sides 6,158 
Tun open H 6&841 w» 161 


srjte to- «anN Per ft. 

Mte97 13U0 122JB UUO +640 HJB8 

Uov 97 119 JS 11675 119 JO +615 7M7 

MO 11700 11625 11670 +635 2X9 

Sea 97 11450 11140 TUJ0 tBflS 2.156 

Estate* 16935 TU8-S. sates iz,tes 
Tup's open irt 36535 » 729 

5UCAH-«0R1J> 11 MCSE} 

112 X 00 ns.- can par b. 

Mar 97 1643 1652 7042 +617 mm 

MW 97 1649 T042 10L46 +606 3WU 

JU97 HU5 1056 1645 +609 1MSS 

0997 1644 1644 1644 +665 16943 

Evades 6389 Hue's. staes 11953 
Tub's apen W JJ1J75 up 30* 




Spa 40254)0 <03600 997600 598SJH 
Forward 407600 608000 6030700 6025.00 
^ OpecW Wgb «ngo 10e3V4 10 e<i4 
Fonuord U24J» U27JM 1106JJ0 110700 
High Low C tew Ova Opinl 



SI mtaon- p*s ot MB pa. 

Mar 97 9492 9491 94.V2 +040 4.740 

Jun 97 9176 9474 9474 7.732 

SBD97 9157 9157 9157 +602 165 

Em. soles NA Tub's, sites 154 
7i*'sa>ertw i*n <* o 


sioioob pi-m- ph & aa a m pa 

Mor 97 104-1 05 106-03 WWiS + 61 147 JDS 

Jun97iawn m-v iomo + 01 toe 

Em. sates *2^00 Tub's, sales sum 

Tub's open Ira 171255 oil m 

S«BJtePltl-|to*2W«flB»Pa _ 
Ata-97 100-21 168-10 106-17 371 Jl* 

Jun 97 166-01 107-25 107-30 1IJ18 

Sea 77 707-75 ISO 

Esi soles NA Tup's- sites 106390 
Turt«p«»l» 331717 UP 3095 

re pa-namt— s metenriwpai 
Mor 97 111-11 110-29 111-09 — 04 473J44 
Jun 97 1)1-40 110-13 W-2S - 04 26456 
Sep 97 116-15 110-02 110-11 - 0* 6322 

Dec 97. 109-29 - 04 675 

E&Rfes NA Tie's, sides 461.657 
Tub's open M 503459 to 17342 


SSr^S fOUO + 610 224237 
jSSo I0U4 106*0 10040 +610 6034 
fisLsotec T . 

Pier, open loL- 

+10 400474 
+ 10 IJ40 
♦ 30 362S3 
+ 30 36974 
+20 30,955 

+70 34420 

NUT97 14018 14448 14888 +122 36^1 

Jtm 97 14390 1-4700 ISn + H UD 

Sep 97 14730 +122 UE7 

Dec 97 14690 +122 7 

Esr. sates NA Tie's, tates 7.991 
Tub's open W 39JS0 pH 1011 
Mor 97 J« 

Junf? jsx 

Sec 97 JOB 
Dec 97 J400 

Est.sato NA Tub's, soles 6436 
Tie's open M S4JU7 up MO 

136000 moto,1 
Mtr97 4328 
Jun 97 4155 

Sep 97 ACC 

Dec 97 .. . 

Esc sites NA Tie's. S0to 22M 
Tue'sepetrt 76,904 up 3246 
lUmBlon yen. S pot 100 yen .. _ 

Mir 97 JHB64B JB8585 B06O4 +JJ 7M41 
JmW JJ06744 JBI704 J»4B +11 IN 
Sep 97 008865 +11 354 

Est.sales NA Tie's. sates 20802 
Tuv'sooreilnl 72,957 up 2147 

i2S4Utrana.SPvbOTC _ _ — _ 

After 97 TJ53 7791 J339 +23 51.930 

JOT 97 7417 7374 7*09 +» 1723 

Sep 97 7482 +24 2JM 

Ed.stes NA Tup's, sates 14730 
Tup's open M S&47I up 1441 
DMmmon^e/mgd ^ 2775 

Mfl97 94.92 9490 9491 Uodu 04^ 

AprW 969 2 9491 9i.9t UnA V2 

JanST 9493 9450 9491 UmA 184934 
S*p97 9484 9480 9682 Unctv 1CL155 

OtcSH 942B 9664 9d64 UntA 7-17.736 

SS Its Sts KS 

•« » :ffl & 

940 +4B 3*412 

65.17 *W 



5278 5324 








5*6 7 

♦ 28 



+ 28 









9464 +4TO 
9439 + OJB 
941* + 082 
9371 +002 
93-67 + OB2 

9144 -002 94298 
9371 — OJB H7U11 
9280 UbOl 54906 
9270 —031 46545 
92.70 — 031 33.940 
9263 Uneb. 27,130 
0258 + 032 19,592 
9253 +033 1W25 

9246 uaa 7,7*9 

910 +ao3 

9273 ♦ 032 

*281 9230 + 031 



PWv.soto 256115 
0B 519 



*«97 tlO-06 10944 W9-29 * 0-08 MAWS 
Jun97 109-18 109-11 109-11 * 046 87 

EsLKteS 71792. Pm. tales; i 
Pm apes w.- i*tiJS ep r 

9473 9468 

9447 9441 

9577 9S.15 

94.94 MBS 

9438 9463 

N.T. N.T. 

NT. NT. 

NT. NT. 

NT. N.T. 

ENSOteK 144732 Pm. tales: 176932 

Pm. open kdj ? J9MU w 2446) 

MDI97 9377 93^3 

JUP97 9124 93.18 

S22 SS SS 

D«S7 9253 92J7 

Mem 9273 ms 

Jun 92M mi 

sepm 9180 9454 

dSso 9253 9VS 

Mor** 9240 ttP 

JMri9 92 j<1 92J7 

SBP99 9235 9231 

OkS? 9231 *228 

EN sates 59341 Pm. sates: OSZ7 
Prev. open lot; 40M02 uo 2255 


Juft 97 9487 9483 94W — 031 QT& 
sap 97 NO 9479 9480 -Ml 31^070 
Dec 97 9475 WJO 9471 +000 22327 
MS 96 9442 9458 9456 +WJ0 15J19S 
Jrn 98 9443 9438 9639 +403 11015 
Sea 98 9420 96.14 96.16 +0JQ 19492 
cS 98 9S84 9588 95.91 +003 
Mar 99 9548 9S42 9543 +03* HOT 
Jun 79 7537 7532 9535 +005 451* 
99 95JB7 9SJ07 9407 +008 Jt«l 
tec 99 9483 9480 9480 +QJM 9B1 
EsLeahime: 54JQ5. Ol» IdL: 244017 idf 



— 087 1BM4 

JOTT7 9+J07 JLW «U4 - Oiff 

item «436 9*22 9425 -0» 3M» 

(MS7 0150 9*3* M37 -Offl 21«+ 

UaTt 94JB 9*39 —081 13L644 

Juris 94« 9433 9*35 -083 1474 

EsL RteK 45387. 

Pbx open tot; 2*&5n te 33» 



qLBBfl - PtelK mar fa. 

Usw97 7444 7430 7455 +046 MJ14 

Mgn Law cue 0198 Opinl 

MOV 97 7685 7S75 7680 +056 

Jill 97 7785 7670 7690 +OS0 7340 

0017 7780 767+ 7690 +045 13» 

Dec 97 7780 76*5 HJM +039 9823 

MGT98 77.95 77*0 7754 +043 456 • 

Est. sacs NA Tie's, sues 4JB5 
Tile's ucnim »J*3 up m« 
*2800 onl- ceres per gal 
Fb697 7730 4IJD 7142 +280 34431 

Mar 97 070 44*5 OA2 -166 2380 

AOT97 4650 <3.95 <437 +131 9.940 

Mov 97 £J2S 4120 *337 +136 5819 

Jun 97 40JS 5930 6137 +131 *8B' 

Jlft 97 4088 5485 <032 +131 3479 

Aug 97 5930 930 6037 +131 1954 

Sep 97 980 930 6037 +131 1470 ■ 

0097 <080 985 6127 +131 I8S4 

Ngv 97 4825 40.10 6132 +131 1237 

Est. jcCs NA Tie's, trees 36464 
Toe’s cuen Ini 101.93 oft 93 

1+nODbL- Mors per UA. _ _• 

Feb 97 2612 2435 25.90 +029 <2338 

Mar 97 2&JD 2415 2530 + 038 6199* 

Apr 97 2*85 2337 2*75 +038 36324 

Mov 97 2410 2320 2610 +<L9 20293 

JW1 77 2325 2135 217J +079 32352 

Jul 97 7100 22J7 Zlfll +035 1SJ75 

Aug 97 2235 2180 2235 +0-55 11472 

Sep97 22J0 2135 2230 +0-71 14,111. 

Od77 2130 2185 2188 -0.13 9319 

Nov 97 2730 2075 77 JO +035 1373. 

Dec 97 2145 3030 2135 +0J0 23417. 

JOT 98 2035 2030 2075 +0.U T1J94 

DecOO 1985 1985 1985 +0.11 840. 

Est. sales NA Tie’s, sates B3J« 

Tie's epenlnr 375837 up 99113 
1M0B mtn bhi‘b 1 ser mm Mu 

Feb 97 1340 33X 1400 +207 25340- 

Mm 97 3.180 1850 ll« +144 Z7354 

Are 97 7.700 2JW IMS 4)03 14334 

May 97 2335 2378 2.420 +80 1134* 

JOT97 2325 2240 2325 +75 6290 

■W 97 2270 2230 2270 +40 7733 

Auo 97 22*3 2210 2J40 +45 7856 

Sesrto 2220 2)90 2210 ♦» *30$ 

oato 2220 2200 2220 -30 78*7 

Nov 97 2320 2299 2310 +20 X9» 

Dec 97 23*0 2320 2340 +30 7,194 

Estsotes NA Tup's, sites 38883 
Tie's open ire 159251 up 2838 

AJttoot- cp ib Mr DQI 

Feb 9/ 49.15 6480 4670 +134 35315 

Mar 97 6965 4665 49.10 +132 16732 

AW 97 71 jO 6670 7125 +1J7 1*97 

Mavto 71.10 4830 71.10 +1J7 5.183 

JunW 6670 S7 JO 4170 +087 *889 

Jutf? MS) 4430 66*0 *0.17 7335 

Est. sides NA Tub's, soles 27815 
Tup'S open W *5320 up 555 

gasoil are) 

U8. dreiare par metric Inn - tots at 100 ions 

Feb 97 31675 31150 31X50 -025 25,779 
Mar 97 20950 20*50 20675 -1 JD 12210 
Aj«97 20125 19750 198125 —185 8596 
Mur 97 19*25 19225 19280 —025 3861 
Jim 97 190M 10750 I86ZS —025 7353 
Jul 97 18&25 1B625 18625 -050 2526 
Aug 97 18880 1B550 10550 —050 1838 

SCOI97 1S725 1BS50 1B580 — 085 49Q 

Od97 18780 18*50 10*50 Undv. 1854 
Hoy 97 18*00 1S480 18*80 Uncft. -427 
D*C 97 18*25 18150 18X50 -025 2^66 
Est sales; 1*282. Open tot: *6010 off 120 

U A doom per barrel - tots of 1800 bonds 
Feb 97 2*10 2388 2X84 +038 3*059 

Mur 97 2X75 2238 2X65 +037 56058 

Ap-97 2X20 2225 22.94 +035 19,264 

May 97 2X70 2180 2237 +03* 12893- 
June 97 2178 2151 2159 +036 17892 
July 97 21.74 20.90 31 J1 *035 10867 

2080 2030 2189 +036 X701 

2037 2010 2071 +047 5571 

N.T. N.T. 2036 +838 3809 

N.T. NT. 2086 +038 2877 

Estates: 62451. Open tot:157.9S2 off 

Stock Indexes 



Mart? 77630 7*730 77X50 -470188,101 

Junto 78130 77650 77930 -490 6117 

Dec 97 11980 79135 79730 +1.15 04 

Bttatet NA Tub's, srees 79,101 
Tub's open M 198573 IB 2282 

Aug 97 
Sep 97 
Ocl 97 
Nov 97 

Mato JlAo *7760 *75X0 — 128 
Junto 41738 41738 41760 - 113 U74 
Septo N.T N.T <2038 - 128 1586 
ESLsreex 16170 Pttv.Ktet 16117 
Prev.openbrt: 6*552 up 6*4 
mooperlnitea point 

Jan 97 24265 22873 2391 0 - 158022,730 
Fab 97 24278 23955 23955-1650 <160 
Mor 9724338 239X0 2*018- 1580 16547 
Jun 97 23915 23638 236*8—1350 1J8* 
Sep 97 2*015 24015 23725-1580 6326 
Mar 98 24375 24195 24088— 1580 529S 
Sep9B NT. N.T. 23818-1580 660 
, E*f- vreume: 2*676 Open hfj 57JU up 
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PAGE 11 

Mexico to Repay Debt 
To U.S. Ahead of Time 

Country Will Also Settle IMF Loan 

Officials Deny Deal on European Bank 

By Alan Friedman 
and John Schmid 

International Herald Tribune 

By David E. Sanger 

New York Tunes Service 

• WASHINGTON — President Bill 
Clinton said Wednesday that Mexico 
has repaid all of the $12.5 billion lent by 
Washington to stave off a financial col- 
lapse that threatened to ripple around 
the globe two years ago, after Mexico's 
currency plunged in value in late 1994. 

The repayment of the loan, three 
years ahead of schedule, ended one of 
the riskiest overseas ventures of Mr. 
Clinton 's first term and released Mexico 
from tight economic controls imposed 
by Washington. 

(The Mexican government also an- 
nounced that it would pay in advance 
the remaining $1.5 billion of a $17.8 
billion loan from the International Mon- 
etary Fund, adding that the repayments 
would be made with the proceeds from 
international bond sales, news agencies 

“Two years ago, helping our friend 
and neighbor in a time of need was quite 
controversial," Mr. Clinton said. 
“Some said that we should not get in- 
volved, that the money would never be 
repaid, that Mexico should fend for it- 

solvency made possible by Mexico's 
own economic program and the Amer- 
ican bailout, he said. 

But Mr. Ortiz said Mexico continued 
to pay a political price for the crisis and 
for having to turn to Washington for 

"Obviously, the crisis took a toll in * 
terms of economic welfare, and in- 
comes are still down from their 1994 
level," he said. "Consumption has not 
completely recovered yet. But bad we 
not had die support of the international 
financial community and of the United 
States, the consequences would have 
been much worse.” 

Mexico's official unemployment rate 
dropped to 4.8 percent in November, its 
lowest level in 22 months. But the min- 
imum wage stands at about $2.50 a day, 
and average Mexicans will still have 
difficulty understanding the debt-retire- 
ment celebrations, said Rafael Fernan- 

dez, a professor at Mexico's Autonom- 
ous Technical Institute. “The left will 

self. They were wrong." 

In the end, Mr. Clinton said, the 
United States made a profit of more than 
half a billion dollars on the loans. 

In Mexico City, the news triggered a 
rally in the stock and bond markets, and 
President Ernesto Zedillo declared that 
the crisis that had caused raging in- 
flation and months of unemployment 
had ended. 

“Some predicted that our country 
would collapse, that the foreign aid 
would be unpayable and infringe our 
sovereignty and that in the short term 
we'd be in a worse crisis." Mr. Zedillo 

But the early retirement of the debt to 
the U.S. Treasury, Mr. Zedillo said, 
demonstrated “the coherence and re- 
sponsibility the Mexican people and 
government have shown in these tough 

• Mexico assembled the funds for this 
final $3_5 billion payment by selling 
bonds in Europe, Asian and American 
markets in recent months. Treasury Sec- 
retary Guillermo Ortiz said. 

•• The final $ 1 billion was derived from 
the sale, announced Jan. 3, of 10-year 
global bonds that yield 335 percentage 
points more than United States treasury 
securities, be added. 

“That’s a lot lower than we were 
paying a year ago," he said. The lower 
rales reflect the dramatic recovery of 
international confidence in Mexico's 

argue that in order lo pay off these debts 
so quickly. Zedillo has had to impose 
tough austerity, and those that are suf- 
fering are the poor," he said. 

Wire services reported earlier : 

The decision to repay the debt is 
positive for the economies of both Mex- 
ico and the United States, said William 
Sullivan, an economist at Dean Witter 
Reynolds Inc. in New York. 

‘ 'There’s obviously a significant im- 
provement in the economic backdrop 
for Mexico," he said. “Many of the 
excesses are behind them. There’s 
clearly a period on modest recovery 
under way. The worst is behind 

But economic and structural prob- 
lems remain, ranging from high levels 
of poverty to unemployment among the 
country's emerging middle class and 
high inflation, ana international in- 
vestors — whose moves to pull money 
out of Mexico helped spark the crisis — 
ate taking another look at what Mexico 
has accomplished over the past two 
years, Mr. Sullivan said. 

“This is another step to consolidate 
our economic recovery." President 
Ernesto Zedillo said at a ceremony in 
the presidential residency in Mexico. 
* 'It proves tirat we Mexicans are leaving 
behind the crisis." Mexican stocks rose 
on the news. 

The Mexican Bolsa index of the lead- 
ing stocks trading on the Mexican Stock 
Exchange closed 78.60 points higher, at 
3,709.96. The peso rose slightly, as the 
dollar fell to 7.7990 pesos from 7.8025 
pesos the day before. 

[Bloomberg. Bridge News) 

Senior European monetary officials poured cold 
water Wednesday on a claim by a Bank of France 
official — made separately by a German business 
magazine — that a deal had been made by France and 
Germany to guarantee that the first president of the 
future European central bank would be a French 

The claim was made this week by Paul Marc belli, 
a former union leader who sits on the monetary 
policy council of the Bank of France. 

In an interview with Investir, a French magazine, 
Mr. Marchelli was quoted as saying that Bonn and 
Paris had an unwritten agreement that in exchange 
for die future European central bank being based in 
Frankfurt, Germany would support a French national 
to be the bank's first chief. A German business 
magazine. Wirtschaftswoche, also makes the claim 
in an issue that appears Thursday but gives no source 
for the assertion. 

While it is widely rumored that Jean -Claude 
Trichet, governor of the Bank of France, harbors 
ambitions for the job. the man tipped for the post is 
Wim Duisenberg. currently governor of the central 
bank of the Netherlands. The choice is important 
because whoever leads the bank will become 
Europe’s most influential monetary official, charged 
with establishing policy as Europe embarks on its 
single currency. 

When Mr. Duisenberg, 6 1 , was named last year to 
take over in July 1997 as bead of the European 
Monetary Institute, foe forerunner of foe new central 
bank, officials throughout Europe said this — as well 
as his highly regarded record leading Dutch interest- 
rate and currency policy — had made him foe natural 
front-runner for foe job of central bank chief. The 
bank is slated to come into existence after foe single 
currency is launched Id 1999. 

Economists and monetary officials in Europe said 

In Brussels, a senior EU monetary official said. “tt 
is 99 percent certain that Mr. Duisenberg wilt be the 
first European central bank president. 

The rfficial added that “it would be extremely 
difficult to find another personality who commands 
as much support among central s ° ' 

enunerts." W. Duisenberg’s fluent Gerauu* to- 
gether with his long track record as a cons^anvc 
central tanker, had won him foe enthusiastic backing 
of Bonn, officials said. . . 

Another senior European official, who is neuher 
French nor German, told foe International Herald 
Tribune on Wednesday that foe claim Jp Mr. 

Marchelli of a secret accord was “not true. 

Speaking on condition that he not be named, tne 
official said Mr. Duisenberg had received assurances 
from 14 EU prime ministers that, in taking foe job ai 
the European Monetary Institute in July, he would be 
in a prime position to be named to serve all or part of 
foe eight-year term as European central bank chiet. 

In Bonn, a spokesman for the Gentian government 
/Wiin<»H to comment on Mr. Marchelli s statement. 

calling it a rumor. 

But monetary sources in Frankfurt expressed dis- 

Wim Duisenberg, Dutch central bank chief. 

the reports of a deal between Bonn and Fans had 
heightened fears tbar France was eager to have a 
greater influence on future European monetary policy 
and its new currency, the euro. That in mm aroused 
fears of political meddling that could signal difficulties 
on foe road to monetary union, even after 1999. 

At a European Union summit meeting a month ago 
in Dublin, President Jacques Chirac of France served 
notice that Mr. Duisenberg was not automatically 
entitled to foe post 

belief in a secret compromise. 

“I cannot imagine that such an agreement exists, 
said one official in Frankfort, who also asked not to 
be named. ^ . 

At the Bank of France, an aide to Mr. Tncbet said 
Wednesday that Mr. Marchelli 's remarks had been 
made in a ‘‘personal capacity’* and said the bank did 
not wish to comment on foe issue. 

What is without doubt, however, is foal foe fracas 
underscores the many tensions between France and 
Germany as both nations struggle to meet the con- 
ditions for monetary union laid out in foe Maastricht 

France has repeatedly sought to assert itself as a 
counterweight to German economic power but in 
doing so has frequently caused resentment among 

See VOW, Page IS 

Sky-High Stakes in the Duel for Hughes Aircraft 

By John Mintz 

Washington Post Service 

WASHINGTON — The last huge 
deal in the current wave of mergers in 
the U.S. defense industry is expected 
this week, when General Motors Corp. 
is scheduled to decide which of two 
increasingly desperate bidders will be 
allowed to buy foe automaker’s Hughes 
Aircraft division for about $10 billion. 

Raytheon Co. appears to have the edge 
over Northrop Grammas Corp. because 
of foe special nature. of foe deal. For tax 
reasons, GM insists that it largely consist 
of a stock swap, meaning GM and 
Hughes shareholders would become ma- 
jor stockholders in the acquiring com- 
pany. Industry analysts say Raytheon’s 
stock and its prospers for working with 
Hughes are stronger than Northrop ’s. 

4 Social Capital 9 Pays Off for CEOs 

GM’s financial advisers received fi- 
nal bids from Raytheon and Northrop 
Grumman last week and negotiated de- 
tails with the two over the weekend. The 
automaker's board of directors is ex- 
pected to vote Thursday on the deaL 

Northrop Grumman has placed bids 
that beat out Raytheon's in dollar terms 
to fry to counter the widespread im- 
pression that Northrop’s stock has less 
promising prospects than Raytheon's, 
industry executives said. 

The Hughes deal once again^will 
scramble the U.S. defense industry. The 
victor will become one of die world's 
two top contractors in the field of de- 
fense electronics, along with Lockheed 
Martin Corp. The loser will become 
more marginalized as a subcontractor 
providing parts to foe handful of prime 
contractors holding power in the in- 
dustry: Lockheed Martin. Boeing Co. 
and Hughes’s future owner. 

Northrop Grumman — itself formed 
by large mergers in recent years — has 
sweetened its Hughes bid in recent days 
because its prospects could become 

dimmer if it loses, industry officials 
said. Work on Northrop Grumman’s 
key military program, the B-2 bomber, 
will fade out in a few years, and spe- 
cialists say it has not made the case that 

it has a strategy for industry leadership 
if it loses foe straggle for Hughes. 

defense electronics — missiles, com- 
munications, radar, air-traffic control 
and training simulati on — that are ex- 
pected to thrive. 

Northrop Grumman is strong in mil- 
itary electronics, especially since its ac- 

" Northrop Grumman will face some 
tough questions if they don't get 
Hughes," said Lockheed Martin's 
chairman and chief executive, Norman 
Augustine. “My guess is Rayfoeon-wilL 
wind up with Hughes;” he saifo because;- 
GMmay foink'R^ythebn^S sf5ct? pro?-: ' 
pects are brighter. 

Mr. Augustine's comments echo 

quistion of Westinghouse's defense 
electronics division last year. But Ray- 

those made by many otter industry of- 
ficials but also reflect a history of bit- 

ficials but also reflect a history of bit- 
terness between him and the chief ex- 
ecutive of Northrop Grumman, Kent 
Kresa. The two say they have recon- 
ciled, but they butted heads in 1994 
when Mr. Kresa outbid Mr. Augustine 
to buy Grumman Corp. 

The battle for Hughes would not be so 
emotional if the states were not so high. 
The company specializes in areas of 

electronics division last year. But Ray- 
theon has an even more powerful elec- 
tronics operation, after its 1 995 purchase 
of highly classified E-Systems Inc. 

* Cgteqt iy«fcjHSnpnan. 

Kotforop Wed*° 
nes ESty it wouJcTBSse'f&r 'plants and 
transfer work to other locations, result- , 
ing in a net reduction of 755 jobs and a 

S charge of $90 million in foe 
Quarter of 1996, AFX News re- 
ported from Los Angeles. 

“We regret that these actions will 
result in foe loss of jobs," said Kent 
Kresa, chairman, president and chief 
executive officer. ’‘But they are oec- 
essaty if we are to meet the affordability - 
demands of our customers and win new > 

- M 

■ ■ . - .■> •***& 


• i » 

> • if*: 

V " WASHINGTON — Social scientists have spent 
^ / decades trying to discover why some Amer- 
y ican corporate chief executives make more 
T money than others. Three university research- 
ers say they now have a surprising answer, snob appeal. 

Their complex analysis of foe records of 61 Fortune 500 
companies, controlling the data for company size, CEO 
tenure and education, and other factors, shows that if the 
CEO has a higher social status than the chairman of foe 
board’s compensation committee, he is likely to make 20 
percent more than a CEO with less status than his com- 
pensation-committee chairman. 

The research by scholars at Duke University. Stanford 
University and foe University of Illinois is foe latest of a 
number of studies attempting to solve the mysteries of 
corporate life through examination of something called 
“soda) capital" — foe power of social status unrelated to 
grit and energy and size of paycheck. 

It is an old-fashioned notion in some ways. American 
business executives act and speak as if no one cared where 
they play golf or where they went to school, just how much 
they add to revenue. But the scholars examining foe data say 
that some indicators of what used to be called "good 
breeding" still have influence. 

Executive-compensation specialists cautioned that the 
study covered relatively few companies and assumed. 

By Jay Mathews 

Washington Post Service 

snobbery was still a lively presence in American board- 
rooms and may have had an impact. 

“Social capital is incredibly important in the corporate 
world," said Maura Belliveau, a professor at Duke's Fuqua 
School of Business and a co-author of foe study, published 
in the December/January issue of the Academy of Man- 
agement Journal. 

In foe study. Ms. Belliveau, Charles Reilly 3d of Stanford 
and James Wade of Illinois analyzed data from 1985 on 
CEOs’ base salaries. They based their assessments of the 
status of CEOs and their compensation -committee chair- 
men on how many boards and clubs they belonged to and 

7tose securities have not been re gi stered under the Securities Act of 1933 and may not be ottered or sold in the United States except 
in accordance with the resale restrictions appttcable thereto. These securities having bean previously 
sold, this announcement appears as a matter of record only 

U.S. $300,000,000 

where they went to college. 

As part of foe study, they assigned two status points to 

those who had been educated at Princeton, Yale or Harvard, 
one point to those who went to Columbia, Cornell. Dart- 
mouth. Johns Hopkins, Massachusetts Institute of Tech- 
nology, the University of Pennsylvania, Stanford or Wil- 
liams and zero for any other college or university. 

The study borrowed the college ratings from work done 
two other researchers, Michael Useern and Jerome 

III 111 

among other things, that high status was conferred by 
attending one of only 11 colleges. But they conceded that 

Karabel. Mr. FCarabeL a sociologist at foe University of 
California at Berkeley, said their list bad been based on a 
study of schools favored by upper-class Americans in 1940 
and reflected social status, not academic status. 

Tbeir findings, they said, could be useful to stockholders, 
especially the suggestion that appointing compensation- 
committee chairmen with higher social status, who would 
be 1 ‘better-equipped than others to resist CEO influence and 
curb CEO influence attempts," may be “a good way to 
foster accountability." 

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PAGE 10 




After a Tkree-Day Pursuit, the Shuttle and Mir Meet 

By Warren E. Leary 


OUWJN-.TIkU^. space 
stifle At lant is has caught 
and docked With the Russian 
Mir space station after a 

! across the sky. 

„ h tX* W 01 ® COnm »nder, Captain Mi- 
chael Baker of the UA Nw^used 
controls at the rear deck of Ai- 
jMfts to slowly position the shuttle for 
toe linkup, as other astronauts, includ- 
28 Colander Brent Jett and Dr. John 
Gnmsfclf assisted by monitoring cam- 
eras and laser renge-findeis. 

Afier a series of delicate close-in 

. The spacecraft was orbiting 
miles. (385 kilometers) above 

Moments after contact, he looked up 
at Mir and noted: “We see someone in 
the window wito his thumb up.” 

About two hours after the docking, 
the Mfr astronauts waited in toe docking 
module as toe Atlantis crew opened its 
connecting hatch and the two ships were 
joined as one giant unit. Both crews then 
went into the Mir. 

station since September, is to swap 
places with a colleague. Dr. Jenny Lin- 
enger, a physician scheduled for a f our- 
and-a-half-month stay on Mir. 

Atlantis and Mir, which have docked 

four tim es in the last year and a hall are 
to remain joined in orbit for five days of 
joint research and the transfer of thou- 
sands of pounds of supplies. 

The shuttle is carrying in its cargo bay 
l pressurized module. Space hab, that is 


^ » ^zng adapter on 

hfir, about a second longeTthan 

Spaceflight Center on Sunday, Atlantis 
and its crew of six astronauts had toe 
role of a hound chasing a fox called Mir 
around toe skies at five miles per 

John Blaha, an American astronaut 
who has been living on toe Russian 

filled with food, scientific equipment 
and other supplies for the Russian craft 
Atlantis is delivering 3,600 pounds of 
supplies and 1 ,400 pounds of fresh wa- 
ter to Mir. In addition, the shuttle is to 
bring back about a ton of scientific 
samples, equipment and other material 
from toe Russian craft 
Much of the activity aboard Atlantis 

earlier on Tuesday focused on testing a 
revolutionary piece of exercise equip- 
ment destined for the planned inter- 
national space station. The astronauts 
assembled, tested and took apart a jit- 
terless treadmill called TVIS. which in 
space-talk stands for the Treadmill Vi- 
bration Isolation and Stabilization Sys- 

Vigorous exercise is considered es- 
sential for astronauts in space to coun- 
teract the negative effects of weight- 
lessness and the lack of physical 
activity, including the loss of muscle 
tone and bone mass. 

However, using exercise equipment 

can send vibrations throughout a space- 
delicate micro- 

craft which can disrupt i 
gravity experiments. The new device 
uses gyroscopes and a system of springs 

and tethers to isolate it from the rest of 
toe spacecraft. 

It took Dr. Linen ger and two fellow 
astronauts, Marsha Ivins and Dr. Peter 
Wisoff, longer than expected to pur the 
device together in Atlantis's cramped 
middeck area. Because of time con- 
straints, three astronauts had to abbre- 
viate planned 30-minutc runs on toe 
treadmill, but officials said they were 
able to get enough information to eval- 
uate the device. 

Anticipating toe orbital workout, 
Mission Control told toe crew that was 
why it chose to awaken them to toe 
sounds of the Doobie Brothers' “It 
Keeps You RunninV' Ms. Ivins 
replied, “The TVIS assembly is keep- 
ing us running/* 

Before toe orbital rendezvous be- 

tween the American and Rus- 
sian craft, toe NASA administrat- 
or, Daniel Goldin, called Mr. Blaha 
on Mir on Tuesday to congratulate toe 
54-year-old astronaut and retired Aii. 
Force colonel on working so well with 
his two Russian counterparts. 

He replied, “It is incredible thai once 
two great superpowers who were en- 
emies with nuclear missiles aimed ai 
each other are now holding hands." 

When Mr. Goldin asked what be, 
could bring Mr. Blaha as a special trear 
when Atlantis returns to Earth next 
Wednesday, toe astronaut, who has been 
married for 30 years, said: “I really have 
not missed anything up here other than 
one thing: I've missed my wife. I didn’t 
realize how much this separation would- 
sort of hit me that way with her. " 

Edge of a Black Hole 

By Kathy Sawyer 

PfoAingttw Po# Service 

T ORONTO — Astronomers re- 
port they have found the first 
direct evidence of toe existence 
of an “event horizon,** one of 
■ tte most bizarre concepts m phys ics and 
j a defining feature of a black hole. 

An event horizon is, in effect, toe rim 
of the black hole — a sharply tfefinal 
edge into which anything can fell and 
; from which nothing, inctnifing light, nan 
- ever escape. Onoe Saving fallen through 
this one-way portal, matter or energy is 
forever lost to the known universe. 
Nob<^ knows for sore, of course, but 
theorists speculate Hwtf objects and en- 
; ergy that fafl into a black hole re-emerge 
elsewhere in toe u n iver se , or perhaps m 
other universes. 

In this case, a team led by Ramesh 
Narayan of toe Harvard-Snrithsonian 
Center for Astrophysics in Cambridge, 
Massachusetts, found gas at temper- 
atures of over a trillion degrees — die 
hottest temperatures known in today’s 
universe — disappearing down a Made 

“The black hole candidate, .wmw to 
be swaflowmgnearfy a hundred times as 
much energy as it radiates, ami toe only 
way tins can happen is if the star is a 
.blade bole," Stud Dt Narayan, who 
described toe findings at a meeting of 
the American Astronomical Society. 
.“Tins is the most direct evidence sci- 
entists havo had that black hales- are 

The finding s, astxbnomere said, add 
considerable weight to toe growing 
body of evidence s up po rtin g toe cxr 

istence of black holes, which axe dense, 
collapsed objects whose gravity is so 
strong that nothing — not even light — 
can escape. 

, Astronomers had toyed with the no- 
tion of black holes in earlier centuries, 
bat it was first brought to ] 

gravity through the concept of curved 
r ‘ spacetime. It works something like 
a bowling ball dropped into a giant 
hammock- If a large enough mass is 
squeezed him a small tmougfa diameter, 
toe ‘'hammock" of space-time closes 
around the object, forever shutting it off 
from the rest of toe universe. 

Scientists have long resisted accept- 
ing black holes as anything more than a 
mathematical curiosity. In recent years, 
however, new instruments such as the 
Hubble space telescope have produced a 
series of persuasive findings that black 
holes do exist Even some Farmer skep- 
tics said that probably 95 percent of 
experts now accept the notion. 



a two-star system, a black hole 
swallows everything; no X-rays escape. 


Plentiful X-ray emissions indicate 
energy being reflected off neutron star. 

Global Weather: Some Surprises 

By William K. Stevens 

New York Tima Service 

The team 's discoveries bring the total 
of black hole detections to 1 1 . They 

I N feet, in a separate report, an 
international team led by Douglas 
Ricbstone, of the University of 
Michigan, described the discovery 
of time new black holes as the initial 
fruits of the first black hole census, an 
ongoing search of nearby galaxies. 
Their findings, they said, add signif- 
icantly to the accumulating evidence 
that black holes are plentiful and im- 
portant players in tire evolution of toe 
cosmos, strewn across time and distance 
in^rich variety of sizes and types, from 
Earth’s home gidaxy to the rar reaches 
of the known universe. . . 

used the Hubble and ground-based tele- 
scope in Hawaii to measure the sudden 
acceleration of passing stars and ma- 
terial as they are flung, like marbles 
whipping around the top of a funnel and 
then out again, by the immense grav- 
itational force of black holes. 

The three holes range in mass from 
the equivalent of 50 million to 500 mil- 
lion suns (some other black holes have 
been estimated in the billions of suns). 
Two are located in galaxies in the con- 
stellation Leo and a third in Virgo. All 
are within 50 million light-years of 

“We believe a massive black hole 
exists at the canter of nearly every galaxy 
in the universe.’’ Dr. Richstone said. The 
team analyzed satellite X-ray data on nine 
different two-star systems of die same 
type — known as X-ray nova — in which 
matter is flowing from a relatively or- 
dinary star onto a nearby dense object 
Four were identified as probable black 
boles, and five were believed to contain 
neutron . stars r- the densest objects 
known except for black holes. 



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GISeu, York TimesfEdited by Will Shorts. 

Solution to Puzzle of Jan. 15 

t ‘Smoke* 

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negotiated an 
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EW YORK — The world’s 
climate system served up 
some big regional surprises 
in 1996, even as this de- 
cade's familiar string of warm years 
continued globally, climatologists have 

found as they tally their annual dam 

On the regional level, record precip- 
itation soaked the Northeastern United 
States and Pacific Northwest, making last 
year the seventh wettest in mare than a 
century for the contiguous 48 states, de- 
spite a protracted drought in the South- 

And as not only Americans but also 
Canadians and Europeans can attest 
large expanses of then continents were 
unusually chilly for much of the year, 
reversing a three-decade pattern of 
wanning in those areas. 

For the Earth as a whole, though, 
1996 ranked among the 10 warmest 
years since worldwide records of air 
temperature at toe Earth's surface were 
first kept in the mid- 1 9to century, Amer- 
ican and British scientists say, although 
it was not quite as warm as toe peak 
annual temperature recorded in 1995. 

While experts on climate are far from 
a complete understanding of the world’s 
weather machine, they believe they can 
account for some of last year’s changes. 
They say, for instance, that the cooling 
of North America and Europe was 
caused by natural shifts in atmospheric 
circulation that dictate the large-scale 
movement of hot and cold air. 

Even with the continental coolings, 
however, a report issued last week by 
the NASA Goddard Institute for Space 
Studies in New York ranked last year as 
the fiftb-warmest ever, just shy of toe 
1995 peak of slightly more than 58 
degrees Fahrenheit A second report, by 
the British Meteorological Office aim 
the University of East Anglia, placed it 

eighth on the basis of preliminary data, 
also just short of the 1 995 record. De- 
spite the drop, scientists said, the 1990s 
remain toe warmest decade on record, 
with the 1980s second. 

While many scientists agree with that 
assessment, not all do. The rise over the 
last two decades is too small to be sig- 
nificant, especially since there are many 
gaps in the surface data, said Dr. Richard 
5. Lindzen. an atmospheric scientist at 
the Massachusetts Institute of Techno- 

The surface records show that toe 
Earth has warmed by about 1 degree 
Fahrenheit (five-ninths of a degree Cen- 
tigrade) in the last century, and that the 
wanning has accelerated in toe last two 
decades. Mainstream climatologists say 
toe warming has probably been caused, 
at least in part, by emissions of heat- 
trapping waste industrial gases like car- 
bon dioxide, and they estimate that the 
surface will warm by about another 3.5 
degrees over toe next century if emis- 
sions are not reduced. By comparison, 
the world is 5 to 9 degrees wanner now 
than in the depths of toe last ice age. 

expect the warming to be 
smooth and continuous. 
“One can get cooler years or 
even cooler decades owing to natural 
variation,” said David Parker, a climate 
analyst at the British Meteorological 

Temperature measurements taken 
from balloons above toe Earth also 
showed a slight global temperature drop 
lastyear. said Dr. James K. Angell of the 
National Oceanic and Atmospheric Ad- 
ministration. So did measurements of 

the surface, generally parallel toe surface. 
readings. On balance, however, they? 
show a cooling over the satellites' 18- 
year record. But when influences on elim- 
inate like volcanic eruptions and the oc- 
casional warming of Pacific waterai 
known as El Nino are filtered out, said Dr.; 
Christy, the satellite data reveal a warm- 
ing rate of 14 one-hundredths of a degree i 
a decade. This compares with about 30; 
one-hundredths for the surface data by 
the British Meteorological Office. 

While there probably has been a sig-_ 
ni ficam rise in global temperature over 
the last century. Dr. Lindzen said, all the. 
data taken together show that “there; 
hasn't been a profound warming.” 

Global warming aside, scientists 
have identified a number of natural 1 
factors affecting last year's unusual, 
weather. One is a naturally occurring, 
semiperiodic reversal of atmospheric; 
pressure patterns and wind direction ini 
the North Atlantic that is believed re-; 
sponsible for the flip-flop in continental, 
temperatures, especially in Europe. This ; 
phenomenon, called the North Atlantic 
Oscillation, apparently has made. 
Europe and North America relatively,- 
warm and Greenland cold for the last- 
three decades. Now toe pattern has re-.- 
versed, and Europe especially is feeling 
the effects: the New Year (nought the 
continent’ s worst freeze in more than 1 0j 
years, while Greenland luxuriated in- 

springlike warmth. 

global temperature taken from satel- 
lites, said Dr. John 

John R. Christy of the 
University of Alabama. 

The satellite data, which give better 
global coverage but reflect temperatures 
throughout the atmosphere rather than at 

st does toe rest of the decade have, 
in store? ■ • 

Scientists cannot go much beyond 
informed speculation, but Dr. James E.; 
Hansen, the director of toe Goddard j 
Institute, offers at least two possibilities. 
One is that the North Atlantic Oscil-^ 
lation will lock into.its new pattern fora 
few years, producing “a tendency fori 
continued cooling in Europe and North- 
America.” Another is that both cons'; 
tinental and global temperatures will,’ 
rise again. 


Sexy, Sleek Gucci Loosens Up 

By Suzy Menkes 

International Herald Tribune 

ILAN — No vis- 
ible buttons. No 
fancy details. No 
blaring status 
symbols. Just a pearl-gray 
suit with a streamlined sil- 
houette that flowed from wide 
lapels through soft pants. It 
was Gucci's feng shui for 
fashion: purify, simplify and 
keep only what counts. 

Designer Tom Ford, whose 
taut, sexy, 1970s silhouette 
has defined male cool, moved 
fast forward in Gucci's fall 
collection. The (Mice skinny 

pants had loosened up — to 
the extent that flares flopped 

over the signature square- 
toed boots. The jackets swept 
across the chest, always with 
the buttons concealed in a fly 
front. Only open shirt cuffs, a 
sweater artfully pouched at 
one hip or a slim belt dis- 
turbed the sleek surface. 

“It was about a silhouette 
change — that is why I took 
all the details off,” said Ford, 
whose military epaulettes, 
top-stitching and trademark 
belts have nourished fash- 
ion's copyists. 


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But Gucci had not lost an 
ounce of sex appeal by adding 
inches of fabric. It was a smart 
show in every sense: modern, 
forward-looking, dean in its 
opening cloud-gray colors, 
rich in its textures, luxurious 
in its simplicity. And al- 
though it was a fairly dra- 
matic change to a new, looser 
shape, there were sly refer- 
ences to Gucci’s hippie past 
in a madcap patch w oik pants, 
tie-dye velvets and velvet 
neckties to die for. They were 
worn with rich paisley-pat- 
tern silk shins — just one 
example of simple items that 
oozed quality and luxury. 

With his short, sharp velvet 
coats and his cobweb-fine 
sweaters. Ford defined what 
is modem in menswear: min- 
imalist shapes with no ex- 
traneous details but built-in 
enrichment through texture, 
color and pattern. You want 
all that con brio? Try a classic 
shin in hot-pink silk with 
chocolate-brown velvet pants 
embossed with Gucci's sig- 
nature G ’s. The ever-hip Ford 
said after his show that he is 
now moving from Paris to 
swinging-again London. 

Romeo Gigli was first in 
with the sirokeable velvet suit, 
toe rich Renaissance colors 
and the narrow-shouldered, 
slim-trousered suit Hey. he 
owns that fashion territory. Or 
at least he did. when The look 
seemed subversive and re- 
volutionary in contrast to 
power suits. Now every 
menswear collection serves up 
velvet tailoring, but it was nice 
to see Gigli's again — the 
short velvet coats and skinny 
pants in succulent mixes of 
color like lime green and mal- 
lard blue, ruby red and grass 

Textured effects were new, 
from toe furrowed velvet 
pants to shadowy patterns 
like s unli ght cast through 
stained glass. But where Gigli 
might have played only with 
his artistic colors and the sen- 
sual surfaces, he piled on the 
details: braid outlining lapels 
and pockets of a raspberry 
jacket; a pleat opening down 
the backbone of an orange 
coat or twin folds on a Nor- 

Gucci’s paisley-pattern shirt with velvet tie. 

Cymacftta Moore ' 

folk jacket; plaid velvet here, 
club checks there, with even a 
different pattern for the brief, 
curving vest of a three-piece 
suit. The ensemble of the 
show was indigestible, but in- 
dividual pieces fine. 

Some collections define 
what is out. Since Mos- 
chino’s show chased after 
trends, it inevitably hit some 
misses — like techno plas- 
ticized coats that had their 
brief fashion moment in the 
early 1990s. Or urban graffiti 
(think a hrick-waU pattern on 
a jacket and scribbles in se- 
quins). Or ski-jackets 
(smothered with photo- 
prints). Or those wretched 
hippies (another comeback 
for psychedelic daisies and 
hobo hat). On target were 

tactile pants in mock pony or,! 
moleskin, the inevitable vel-* 
vet, and jersey used for supple"! 
cardigan jackets. 

The irony is that classic ; 
now looks hip and sophis- ! 
ticaled fabrics seem much, 
cooler than downtown woriew 
wear — providing that toe 
proportions of toe clothes and.' 
the attitude are modem. 

For Trussardi. classic is*, 
just — well — classic; toe!" 
elegant long coat with broad-" 
shoulders and lapels: the !. 
country suit in basket-weave.'; 
tweed; the moleskin pants- 
with gossamer-fine sweater 
or ribbed cardigan. Like-, 
many Italian houses, it relies, 
on the quality of fabric and ! 
finish, rather than challen-!i 
ging menswear’s status quo. “ 

/f*y***£ ; '- 

■ • 




Why NATO Expansion Stirs Fear of a New ‘Yalta’ 

_ pAKIS — Washington sees 

I r NATO enlargement as a 
J ~m •problem in U.S.-Russian re- 

/1/f lations. It worries abour the 

I I fj. affect on Russian internal pol- 
j - i ^cs and reform. In Europe, 

rm-m NATO enlargement makes 
1 m --People think abour Yalta. 

\ J f i ' Stalin. Churchill and Ro- 
J osevelt’s division of Europe 

ihto spheres of influence, 
while meeting at the Black 
LOISea resort of Yalta in Feb- 
s : niaiy 1945, put “Yalta” into 

v • the polemical vocabulary of 

the Cold War, with symbolic 

T power that exists today. 

r • WAI 1 The symbolism has rested 
r Clintonoa a distorted understanding 
t has repof what actually happened at 
\ WasmrYalta. But symbolism fre- 
t lapse dquently makes history into 
I the glolsome thing other than what it 

* currenc really was. and NATO ex- 
t The pa ns ion is loaded with sym- 
t years a holism. 

: the risl When the Yalta conference 
> Clinton took place, the Soviet Army 
( from ti had already overrun Bulgaria, 

, by Was Romania. Poland, Hungary, a 
[The part of Czechoslovakia and 
I nounce much of Germany. Winston 
i the ren Churchill’s ambition was to 
i billion limit Soviet influence, and in 
i etary F particular to get leaders of Fo- 
. would J land’s London-based anti- 
i interna) Communist government in ex- 
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. and nei 

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“Tbs “ ' 



By Milford Wolpoff and Rachel Caspari. 
462 pages. $26. Simon & Schuster. 

IN Reviewed by Marvin Harris 

VITHO were the first humans and where 

r r VV and when did they originate? These 
* ^ questions have always been hotly debated 

By William P faff 

counter the influence of the 
Pofeh Communists already in- 
stalled by the Russian army. 

Franklin Roosevelt was 
more disposed to accommo- 
date Stalin, but even had this 
not been true, neither he nor 
Churchill would have had 
popular support in their own 
countries for confronting 
Russia over the fate of East- 
ern Europe. Russia was in 
power there, and was to re- 
main in power for the next 
four decades. Nonetheless the 
myth of a Western sellout to 
Russia at Yalta was bom, and 
endured, and endures today. 

To draw a new line across 
Europe today, between new 
NATO members and those 
left out of NATO expansion 
leven temporarily), looks to 
those in die second group like 
another “Yalta.” Worse, it 
seems an entirely invented 
and unnecessary Yalta, 
cooked up in Washington and 
Bonn, pressed upon Russia 
even though Russia has given 
no sign of wishing to redivide 
Europe. It seems perversely 
to invite the Russians to do 
just what the West does not 
want them to do, which is to 
attempt to re-establish their 

influence in the countries left 
out of die new NATO. 

Those who will be die first 
into the new NATO — Po- 
land, the Czech Republic. 
Hungary, at a minimum — are 
those who are already secure. 

Those left out — the Baltic 
states, Romania. Bulgaria. 
Ukraine — are those in po- 

Wkat's needed is 
a major 

renegotiation of 



feudally difficult situations, 
and leaving them out auto- 
matically worsens their con- 

Germany is a driving force 
in NATO expansion simply 
because Germans want to stop 
being die eastern frontier of 
the West The Germans want 
NATO states with NATO 
guarantees on their eastern 
bonier. The United States has 
acted under electoral pres- 
sures inside the United States, 
and because the American 

government rightly sees 
NATO as the major agency of 
U.S. influence in Europe, and 
perhaps beyond. 

Washington and Bonn in- 
sist that they are not redraft- 
ing Yalta, and dial NATO ex- 
pansion is not anti-Russi- 
an. Washington speaks of 
NATO's evolving into a re- 
gional peacemaking or secu- 
rity agency, with a role out- 
side Europe. It wants Russian 
cooperation with NATO on 
tasks of common interest, as 
in Bosnian peacekeeping 

Germany’s foreign minis- 
ter, Klaus Kinkel. has pro- 
posed a new consultative 
group of 17 “equal partners'’ 
— the existing 16 nations of 
NATO plus Russia. He wants 
all the European political and 
security institutions woven 
together NATO, plus the 
European Union, the Organ- 
ization for Security and Co- 
operation in Europe, the 
Western European Union 
("Working Together to Build 
Europe's New Security 
Framework," Opinion, Dec. 

Bed well-intentioned as 
this is. it cannot obscure the 
fact that all the former mem- 
bers of the Warsaw Pact, and 
die Baltic republics, want to 
belong to NATO because 
d ley are afraid that in the fu- 
ture there might be pressure 
from Russia to reincorporate 
them into a Russian sphere of 

This is a perfectly reason- 
able concern. Any responsi- 
ble political leader in mis re- 
gion must take into account 
die possibility dial today’s 
turbulent Russian democracy, 
all but totally engrossed in its 
internal problems, might be- 
come something different to- 

Similarly, any responsible 
Russian leader is necessarily 
concerned over political in- 
stabilities on Russia's fron- 
tiers. Every Russian knows 
that the mortal threats to the 
country have in the past all 
come from the West 

The elements in the situ- 
ation are simple. The coun- 
tries formerly dominated by 
Russia want, and deserve, re- 
liable guarantees of their in- 
dependence. Russia needs, 
and deserves, assurance of its 
own security, and predictable 
and oonhostile relations with 



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l paleontologists (not to mention ranks 
of creationists and fundamentalists). But in 
recent decades, with the development of 
genetics and techniques for identifying die 
code elements on an Individual’s chro- 
mosomes, die enigma of human origins, 
including die origin and age of the races, 
has generated unprecedented levels of 
scholarly and public interest 
^ “Race ana Human Evolution” offers 
a welcome opportunity to catch up with 
die fast -moving controversies that sur- 
round current attempts to understand the 
origins of our species. Its senior author, 
Milford Wolpoff, is a professor of phys- 
ical anthropology at the University of 
Michigan and long one of the most ac- 
tive figures in the study of human fossil 
remains. The co-author, who is also 
Wolpoff s wife, provides a narrative ac- 
count of various adventures and mis- 
adventures that befell them as they 
rushed about all over Africa arid Eurasia 
trying to examine the latest fossil finds. 
But despite its intermittent forays into 
the lighter side of paleoanthropology, 
this is a book that needs to be taken 
seriously and read with care. 

.Roughly, two major camps have 
formed. The first adheres to the “Single 
Origin. Out of Africa Theory.” ft posits 
that the split between the most human- 
like apes (the australopithecines) and the 
most apelike humans (Homo erectus) 
took place in Africa about 2 million 
years ago. Thereafter; H. erectus col- 
onized the rest of the Old World, leaving 
behind many populations that under- 
went separate evolutionary change. 
None of these colonists, however, foun- 
ded lineages that contributed genes to 

our own species, H. sapiens. I ns te a d, the 
transition from H. erectus to modern-day 
R sapiens took place sometime 200,000 
to 125.000 years ago and entirely in 

These African “modems” then 
spread to other parts of the Old World, 
replacing the various regionally evolved 
descendant species of H. erectus (the 
Neanderthals, who evolved in the Le- 
vant and Western Europe, would be one 
such regional species). 

The main genetic evidence for this 
scenario is that people of modem Af- 
rican descent display the greatest 
amount of variation m certain genes. It is 
argued that the amount of such variation 
is proportional to the time available to 
accumulate mutations. Hence, Africans 
must have been the earliest populations 
to achieve modem sapiens status. 

Wolpoff is himself die most prom- 
inent advocate of the second and op- 
posing camp, which goes by various 
names indicating that the transition to 
our species took place not only in Africa 
but throughout much of the Old World. 
Wolpoff calls it “Midtiregional Evo- 
lution.” According to this point of view, 
H. erectus was a single highly variable 
species whose descendants formed re- 
gional races, traces of which remain in 
modern regional populations. (The as- 
sociation between incisor teeth that have 
a shovel-like shape and East Asian pop- 
ulations is one of the prime examples). 
Despite these tendencies toward spe~ 
cianon. the rates at which genes have 
flowed between human populations 
have always overpowered isolating bar- 
riers. Biological features that charac- 
terize particular regions are in a constant 
state of flux. They change and disappear 
and new ones arise. 

Scientists have frequently used the 
image of a candelabra to portray the 
multi-origin approach, a practice to 
which Wolpoff and Caspari strongly ob- 
ject Unlike a candelabra Math its single 
common base and its separate parallel 
holders, they say. the multiregional the- 
ory is best pictured as a complex trellis 

whose slats crisscross in all directions. 
In the authors' words: “We don’t think 
you can And a single, unique origin for 
modem human races.” 

Wolpoff and Caspari devote several 
chapters of their book to the history of 
human paleontology in an effort to com- 
bat the longstanding association be- 
tween multi-origin models and racist 
viewpoints, hi the 19th century, (he 
multi-origin viewpoint was known as 
polygenism (as opposed to monogen- 
ism); it was used to deny the common 
humanity of contemporary races and to 
justify slavery. 

In the 20th century, anthropologist 
Carleton Coon formulated a secular 
polygenic (multi-origin) scenario in 
which die existing races originated deep 
in the past and maintained their sep- 
arateness as they evolved independently 
into the modern races. 

Coon’s version of the multi-origin 
scenario had strong racist implications: 
Not only did the races evolve separately 
but they evolved at different rates, with 
Africans crossing the Rubicon of mod- 
ernity last, thereby making them the 
most retarded of human populations. 
Some of Wolpoff s critics have attempt- 
ed to tar his version of the multi-origin 
theory with the brush of Coon’s ra- 

This is a grave injustice because 
Wolpoff s multiregional theory denies 
that the various regional populations of 
R sapiens ever ceased to exchange 
genes. Wolpoff s multiregionalism op- 
poses the idea that the races as we know 
them today existed before the evolution 
of the first modern H. sapiens or that they 
evolved separately and in parallel and at 
different rates. Multiregionalism is not 
the theory of the parallel evolution of the 
human races; as Wolpoff and Caspari 
argue, “nothing could be farther from 
the truth.” 

Marvin Harris, the author of " Our 
Kind: Who We Are. Where We Came 
From . and Where We Are Going," wrote 
this for The Washington Post. 


By Alan Truscott 

H AVE you ever woo a 
watch m a bridge game? 
One who did was Jake Wink- 
man, the shrewd professional 
hero of four bridge mysteries 
Dbn Von Eisner, who died in 
rfilo, Hawaii, at 87. The episode 
occurred in the last Walkman 
book. “Cruise Bridge,” avail- 
aide firm Baron-Barclay 

clarer took the dub ace and 

played the spade ki n g. East won 

with foe ace and played a high 
dub. which South tufted with 
the spade queen. Trumps were 
drawn, and foe heart queen was 

West won with the king, 
leaving this position: 


* — 

o ja 







(telephone 800 274-2221). 

’ Winkman was West, defend- 
ing four spades doubled, and 
would have prevailed if he had 
led foe bean king and shifted to 
hE singleton dub. But he led the 
dob immediately, and a del- 
icate position arose after the de- 


* — 

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The declarer was a Mid- 
western tycoon named West- 
borg, with great confidence in 
his game. At this point, be 
Stripped an expensive watch 
from his wrist and placed it on 
the table. “I know every card 
in your hand. Wink.” he an- 
nounced. “Set me and the 
watch is yours.” 

The problem was to avoid 
two diamond losers. West- 
borg had correctly calcu- 
lated that a diamond shift 
would make his life easy, 
and if West led the heart ace 
he would ruff and lead the 
diamond jack. 

That was true as for as it 
went, but Winkman led a 
small heart, sol the ace, giv- 
ing dummy the lead when it 

would do the declarer no 
good. And he had won him- 
self a watch. 


♦ K7 
9 J87 

♦ A978S 





♦ A 

4QJ10 6S43 

O A J 108 


Bom sales were vulnerable. Tbs Wd- 

West North East South 

19 Pass 2* 4* 

DbL Pass Pass Pass 

West ted the dob eight. 

its neighbors and with the 
NATO powers. 

Surely the answer lies in a 
major renegotiation of Euro- 
pean security in which Russia, 
the existing NATO powers, 
and the non-NATO states for- 
mally guarantee existing fron- 
tiers against any change that 
has not been peacefully ne- 
gotiated and condoned by in- 
ternational consensus. This 
guarantee, furthermore, 
should engage the NATO al- 
liance as it exists today. 

The actual prospect is of a 
NATO expansion stripped of 
its security content by West- 
ern congressional or parlia- 
mentary unwillingness to ex- 
tend Article 5 guarantiees 
beyond NATO’s present 
membership, ft is dangerous 
to pretend that this is not so. 
And that would leave even die 
countries newly brought into 
NATO worse off dim they 
were before. 

Redividing Europe, after 
the collapse of the Soviet Uni- 
on and foe Warsaw Pact finally 
reunited it will produce results 
opposite to those wanted. 
Madeleine Albright, bam in 
Gtecboslovalria, is surely too 
clever not to see that 

International Herald Tribune. 

6 Lew Angeles Times Syndicate. 

What Would Really Be Cool? 
Totally Uncool Cigarettes 

By Tibor Kalman 

N EW YORK — Smoking is cool. Air Camels (gutsy America) or American Spirit 

Jordans are cooL (natural America). . .. 

The products are essentially identical, 

brand identity is foe only distinction. The 
competitive advantage is brand name, not 
product attributes (this is because of over- 
developed product testing, but thatfi an- 

Anything with the Nike Swoosh on it is 

Smashing Pumpkins, die band, is cooL 
Absolut vodka ads are coo). Mariboros 
are cool. 

Kool cigarettes are cool (and other story). . , 

mentholated). So one way to reduce a product s oe- 

Young people have anointed scores of suability might be to reduce the coomess 
brands, objects and media as the accessor- of the brand. With cigarettes, the man 

- identity is most crucial m the pack design. 


identity - . . - 

The signals which club you belong 
to. It’s your badge. 

There is a lot of talk of liminng or even 
But the allure 

ies that will construct their unique and _ . „ _ 

cool identities. banning cigarette advertising. But t he all ure 

important aspect of cool, is mostly in the package- Short of banning 

i • _ ... _ l r i; - «... ....M MTtainlv mant tft 1113 X 6 

Smoking is an AU2UVUOIU Vi tuvi, IO UJV*WJJ *** m n mm n f— P . ~ f ~ 

and flic cigarette pack is a critical fashion cigarettes, we’d certainly warn to maKe 

them less alluring to the young. 

It might work to allow the cigarettes but 


I'm a designer, r ve worked all my life to 
make different products (including ciga- 
rettes) cooL Now I'm thinking about how 
to make smoking uncooL 

The brand is a mark of a group that you 
belong to. Microsoft and Apple are actually 
competing clubs (gangs?) to winch people, 
especially young people, pledge identities. 

You’re either a Coke person or a Pepsi 
person. You wear either Nike or Reebok. 
You smoke Marlboro (mythic America), 

remove tire brand romance — - the club 
fn«ri gnia — and make the purchase of ci- 
garettes as exciting as the purchase of (gen- 
eric) aspirin. Any dorky cool that foese 
plain packs had would quickly wear off. 

1 volunteer to do the design. 

The writer, a designer in New York City, 
contributed Ms comment to The New York 


On the ‘Letter 5 to Kohl 

Regarding "An Open Letter to Hel- 
mut KohT (Advertisement, Jan. 9): 

As an American living and working in 
Germany, I felt saddened at the ignor- 
ance of my compatriots who equated 
modem German democracy with the 
Nazi regime. In a country where the 
Hitler salute will get you arrested, 
heightened awareness regarding a group 
some consider dangerous to susceptible 
individuals is a far cry from Nazi per- 

1 was ashamed at the audacity of a 
cluster of showbiz personalities to lec- 
ture Chancellor Helmut Kohl on demo- 
cracy and despotism. How would Amer- 
icans react if a group of prominent 
Germans lectured President Bill Clinton 
in an open letter on morality in his 
public and private life? 

One fact I found out later was no 
surprise: One of the signatories of the 
advertisement, and the person who paid 
for h, turns out to be the entertainment 
industry lawyer Bertram Helds. So 
maybe it’s not really ignorance or 
misplaced idealism but die Big Buck 
that is at issue: These people are afraid 
that the European (not just -Gennan) 
boycott of Tom Cruise’s films may take 
a toll on profits. 

The open-letter ad is particularly in- 
sulting to Jews who actually suffered 
through the Holocaust Comparing the 
scrutiny of Scientology — which is un- 
der investigation not just in Germany 
but in France and other European coun- 
tries — with the persecution of the 
Jews totally dilutes the horrors of the 
Holocaust and those American Jews 
who signed the ad would do well to 
reflect on the injustice they have done to 
fellow Jews who actnally experienced 
Nazi Germany. 

A good friend of mine, a school prin- 
cipal and history teacher, a real “Amer- 
ica fan” who has spent a good deal of his 
professional life contrasting Hitler's 
despotism with today’s German demo- 
cracy, felt a deep sense of personal hurt 
at the open letter to Chancellor KohL I 
advised him not to take it that seriously 
— ignorance in some, the profit motive 
mothers have simply blended to produce 
a frivolous letter that (he German chan- 
cellor shouldn’t waste his time reading. 


Bochnm, Germany. 

We are deeply disturbed that well- 
known American cultural figures, in 
their effort to support foe Church of 
Scientology in its conflict with the Ger- 
man government, have bought into the 
erroneous thesis that Germany today is 
acting toward Scientologists in foe same 
way that the Nazis acted toward the 
Jews. Not only is foe comparison his- 

torically inaccurate, it is an affront to die 
memory of the 6 million Jews who were 
murdered during foe Holocaust. 

There may be real issues of tolerance 
and pluralism that Germany must deal 
with. However, no matter what com- 
plaints one may have, likening the 
policies of the democratically elected 
government of modern Germany 
with foe Nan regime before and 
during World War II is ludicrous. Com- 
parison to foe Holocaust has no place 
in any reasonable discourse on this 


New York. 

The writer is national director of the 
Anti-Defamation League. 

Bravo! This warning to Helmut Kohl 
is right on the button — almost. If Ger- 
many bad been as vigilant aboat Hitler in 
foe 1930s as it is about Scientology 
today, we might never have suffered 
Nazism in foe first place. 

All mind-bending is evil, whatever 
the name. 


Aries, France. 

11 Sung and Ceausescu spring easily to 
mind . And, perhaps, L. Ron Hubbard. 


Chene-Bougeries, Switzerland. 

I have read foe writings of L. Ron 
Hubbard. At best they contain as much 
religious philosophy as die satires of 
Juvenal, and seem intended for retarded 
a dult s 

That people of repute can be involved 
in such a declaration as die letter to 
Helmut Kohl shows tire continuing de- 
generation of human ethical values. 

Versailles, France. 

I have no particular interest in cither 
Germany or the Scientologists, but I am 
still fuming over dial letter. I think you 
owe the German government and 
people, as well as your readers, an apo- 
logy for running iL 

Kanagawa, Japan. 

I am commenting on the open-letter 
advertisement and its echo in official 
Germany rather than on behalf of foe 
Scientologists, who do not mean any- 
thing to me.. . , w,...,. . 

•- ft wds with dismay and consternation 0 --' 1 ana -wo rried ab out certain devdop- 
fhar t read the open letter asserting t3haf ,r ®*^ s ® CtXAiaoy- that seem, to be no; 
German followersof the Church of Sci- longer in ftfoadh^ 

rales. Among other tangs. I feel that 

entology, that group for foe psycholo- 
gically disturbed and intellectually con- 
fused, are being pursued in a manner 
comparable to the persecution of foe 
Jews in the 1930s. Such is complete 
nonsense, documenting a high degree of 
regrettable ignorance about contempor- 
ary Germany on foe part of those who 
signed the infamous dung. 

When my friends and relatives visit us 
here in Berlin, I always include in my 
tour a stop at a Jewish cemetery. As we 
walk among the graves of the prominent 
and “common” German Jews buried 
there, we often pause and reflect on foe 
overwhelming feet that there are no de- 
scendants to tend these crumbling 
graves nor are any descendants buried in 
the family plots. 

To even suggest a comparison be- 
tween the Germans’ problems in dealing 
with the followers of L. Ron Hubbard 
and foe Nazis' persecution and then 
physical extermination of the Jews is to 
dfemean in a deplorable fashion our col- 
lective historical consciousness of the 
Holocaust and foe private grief of myself 
and my friends and relatives. 



ft is comforting indeed to know that 
Chancellor Kohl is so omniscient dial 
he does not need to read a letter is order 
to recognize it as rubbish. 

Such mortals are rare in our time. 
Only Lenin, Stalin, Chairman Mao, Kim 

xenophobia might tint the allegedly 
spotless record of us Germans, which 
has been applauded by ourselves as well 
as by our allies for tbeiast 40 years. 

Be ft the growth of the Federal Re- 
>Iic whh the absorption of the former 
Germany; be it that die Kohl ad- 
ministration has become almost auto- 
cratic due to its long years in office; be it 
that Germany’s assumed leadership of 
Eu rope has not so much angered Its allies 
as inflated Germans’ own self-esteem, or 
be it simply the present malfunctioning 
of the economy — whatever foe case, 
one cannot avoid die' impression that 
after long years of blossoming in calm 
weather, democracy in Germany is be- 
g uin m g to suffer as meteorological con- 
ditions deteriorate. And in creeps in- 

This might explain the German gov- 
ernment’s hysterical reaction to the 
activities of Scientology as well as to 
foe American, show business figures’ 


St Laurent des Aibres, France. 

for publication 

Letters intended 

should be addressed "Letters to the Ed- 
itor” and contain the writer’s signature, 
name and full address. Letters should be 
brief and are subject to editing. We can- 
not be responsible far the return of un- 
solicited manuscripts. 


People moke decisions every day. Urey need the most reliable 
source of information available. 

In France, they read Les Echos, France's leading newspaper. 

Les Echos is now accessible via the net, 'offering preferential 
access to the Ports Stock Exchange.. .. # ‘ 

PAGE 13 . 

S 'JS£) 


? — — 

^ Lufthansa to Contest 

yj Regulator’s Warning 

: > °n Domestic Fares 


Paris Seeks a Deal 

Defense Firms Are Asked to Cut Prices 

C< m V^to OirSti#F r ^n sfla ^ 

FRANKFURT - — Lufthansa AG 
said Wednesday it would challenge 

11 ^ received from tie 
Ger ™ cartel office, which has ac- 

h^f^? rline ? f 1 abusing its dom- 
mant market position on Sights be- 
tween Frankfurt and Berlin by 
charging high fanes. J 

Lufthansa has one month to 
spwid, after which the cartel office 
wU decide whether to order 
““fthansa to cut its fares, Elke 
***?*• a spokeswoman for the cartel 
office, said. 

“If we order them to lower their 
™s, she said, “they can appeal to 

me superior court, and I’m sure they 
will. 3 

Lufthansa said it would seek a 
court ruling on the warning as 
quickly as possible. The airline said it 

had lost money for years on its Frank- 
furt-Beriin service, as the fares had 
^ not covered the cost of the sen dee . 
“Lufthansa considers the argu- 
ments the Federal Cartel Office 1 is 
advancing as legally untenable,” 
the company said. 

The office based its warning on 
lower prices offered by Lufthansa 
for slightly longer flights on routes 
where there was competition, Ms. 
Zeise said. 

For example, a round-trip busi- 
ness-class ticket between Berlin and 
Munich costs about 720 Deutsche 
marks ($452), while a round-trip 
business-class ticket on die shorter 
Bedin-Frankfim route costs 840' 
DM. But Deutsche BA, in which 
British Airways PLC holds a 49 per- 
cent stake, offers substantially lower 
fares on the Beriin-Frankfint route. 

Lufthansa said its fare could not 
represent an abuse of its dominant 
market position, because it had 
failed to covex its costs on the 

“Companies cannot be forced to 
set prices which make break-even or 
profit-yielding production pos- 
sible/’ it said. “The fact that an- 
other competitor has for years flown 
along its domestic German routes at 
a loss underlines that the routes can- 
not be served in a commercially 
viable way. ” 

The cartel office wants Lufthansa 
to set prices on the Berim-Frankfuri 
route at about 20 DM more than for 
Berim-Munich, Ms. Zeise said, al- 
lowing for die higher Frankfurt air- 
port costs. 

- Shares in the G erman national 
airline closed at 21.70 DM, up 
0.69. i Bloomberg , Reuters) 

■ EU Questions ELM’S Plan 

The European Commission 
threatened to fine KLM Royal Dutch 
Airlines and its U.S. partner, North- 
west Airlines, for felling to provide 
the commission with details of their 
planned alliance, according to com- 
mission sources quotedin an 
France-Presse report from Brussels. 

But the sources said tte procedure 
dial could lead to fines had been 

to supply fee information quickly. 
The commission is also examining 
feeimplicatious for competition of a 
proposed link-up among Scandina- 
vian Airimes System, Lufthansa and 
United Airlines ' and one between 
S wissair and Delta. Air lines. 

■ O mvO e^bfOmSt^fnxBDdfBaha 

PARIS — France's military- 
procurement agency is pressing 
defense contractors, including 
Dassault Aviation SA and Thom- 
son-CSF , to cur their prices in ex- 
change for a promise of orders, 
Thomson-CSF said Wednesday. 

"We are taking part in dis- 
cussions with them, Veronique 
Trivero, a spokeswoman for the 
defense-electronics ' company, 
said. 44 A cutting of prices is pos- 
sible if tbe state is willing topiace 
orders feat will stretch over sev- 
eral yt&rs.” 

Dassault Aviation, meanwhile, 
said it was close to an agreement 
on the purchase of 48 Rafale fight- 
er aircraft by tbe French govern- 
ment over a period of five years. 

“We are on the point of closing 
the deal,” the company said. 

Dassault said the accord could be 
sealed at a meeting that was going 
an fete Wednesday between 
Dassault’s, chairman. Serge 
Dassault, and France’s armaments 
minister, Jean- Yves Hehner. 

Government sources said the 
contract was the first of a new type 
of order aimed at cutting prices by 
around 10 percent while provid- 
ing contractors with a more secure 
production ontiook. 

Industry sources said Dassault 
was eager to close the deal as soon 
as posable to increase the valu- 
ation of tbe company before it was 
merged wife Aerospatiale, the 
state-owned aircraft maker. 

The privatization commission is 
expected to set a value on Dassault 
in the next few weeks. 

The spokeswoman for Thom- 
son, however, declined to confirm 
the Rafale sale. Thomson-CSF 
makes fee electronics systems and 

radar for the jet, which is sched- 
uled to begin service in 2002. 

The Rafale has a price of 300 
million francs ($56 million), more 
than the $43 million asked for 
McDonnell Douglas Corp.'s 
F/A018E-F fighter, which is due 
to come into service in the middle 
of fee next decade. 

Thomson-CSF makes about 30 
percent of the content of the Ra- 
fale. Maira, a subsidiary of 
Lagardere Group, makes missiles 
used on the Rafale. 

A representative of the militaiy- 
proeuxement agency also declined 
to confirm fee sale. She said Mr. 
Hehner would be meeting with con- 
tractors to discuss price cuts that 
would hdp the military meet its goal 
of cutting spending 30 percent 
In addition, the government's 
spokesman, Alain Lamassoure, 
said that “all our major military 
prog ra ms are being renegotiated.” 
Dassault's shares closed at 
1,308 francs, up 3. The stock has 
risen 60 percent since February 
1995, when fee government an- 
nounced a plan to restructure 
France’s defense industry, begin- 
ning with a merger of Dassauh and 
Aerospatiale. That merger is ex- 
pected to take place within a year. 

When the Rafale fighter jet pro- 
gram was launched in the late 
1980s, fee French navy and air 
force envisioned buying 320 
planes. The first were to be de- 
livered to the navy in 1998, but tight 
military budgets have forced the 
army sod navy to defer orders. 

A Dassault representative said 
the Reach Navy currently had 1 1 
Rafales on order, wife tbe first 
scheduled for delivery in 2002. 
The army has two Rafales on or- 
der. (Bloomberg. AFX) 

^Germany’s 1996 Deficit Overshot Budget Target 


BONN — The Finance Ministry 
said Wednesday the federal deficit 
rose to 78.3 billion Deutsche marks 
($4935 billion) in 1996, 18.4biffian 
DM more than had been planned in 
the budget 

Tax revenue fell to 338.6 billion 
DM from a planned 351.2 trillion 
DM, while spending rose to 455.6 
billion DM from a budgeted 4513 
billion DM, the ministry said. 

The figures weren6tasmjMise,as 
Finance Minis ter Tbeo WaigeJ had 
^de fia't would be 

'‘This did not come as a surprise 

at all,” said Gerhard Grebe, chief 
economist at Bank Julius Baer AG. 
"If was. clear already from the 
. middle of last year feat the deficit 
would surpass its target” 

; The ministry also said the 1996 
tmtaL deficit for federal, state and 
municipal government was 3.9 per- 
cent of gross domestic product con- 
firming figures published last week. 

Germany — and other countries 
wishing to join the European single 
currency in 1999 — must cot its 
deficit to. 3 percent in ,1997. . . . 

The Finance Ministry attributed 
' fe e ltigU e r tfcfiu r u r a t ax- sh o rtfall-* 

jmdsfag^TecbiKJimcgnf^Qi/n < 

"Even though economic activity 
rebounded before the start of fee 
winter, economic growth, at 1.4 per- 
cent was significantly lower than 
forecast in fee fall of 1995.” fee min- 
istry said. "Tbe employment situ- 
ation, especially, developed much 
differently than was expec ted. ” 

Last week, the Federal Labor Of- 
fice said unemployment reached a 
postwar high of 4.15 million in 
December, or 10.8 percent of the 
work force. On Wednesday, Eco- 
nomics Minister Guepter Rexrodt 
srid average' ur^mpfoyroeot could 

.»• ftl5G r ~Wfe8nesday, the Federal 

Statistics Office in Wiesbaden said 
German inflation eased in 1996 to 
13 percent from 1.8 percent in 
1 995. This was the lowest rate since 
the office began compiling statistics 
for a unified Gennany in 1991. the 
office said. 

A government tax commission, 
meanwhile, has proposed lowering 
Germany's maximum income tax 
rate to 39 percent from 53 percent, a 
financial newspapers reported. 

Germany’s political parties are 
. debating details of a planned tax 
' reform. The government cormnis- 
«-sion is-to presea tits own proposals 
next week. (Bloomberg. AFP. AP)~ 

Cable-TV Sale 
An ‘Option 5 
For Telekom, 
Report Says 

Ctmqdtdb, thv&uffFnn, Dupmr** 

BRUSSELS — Deutsche Tele- 
kom AG is considering whether to 
sell its cable-television business to 
comply with European Union anti- 
monopoly regulations, company 
sources said Wednesday. 

The sources were reacting to a 
report in Capital, a magazine based 
in Hamburg, that fee EU would re- 
quire Deutsche Telekom to either 
sell its cable-TV activities or spin 
them off into a separate company. 

"People are reflecting on what 
fee options are,” one source said, 
adding that “this business is an im- 
portant and significant asset, and if 
we sell it we can get a lot of money 
because competitors win draw on its 

But a Deutsche Telekom spokes- 
man, Hans Ehnert, said the company 
had no plans to sell the cable net- 
work, Germany's largest, in re- 
sponse to EU pressure or for any 
other reason. On fee contrary, he 
said, Deutsche Telekom wants to 
use the network as a basis for ex- 
panded multimedia services. 

Mr. Ehnert also said Deutsche 
Telekom did not expect to have to sell 
tbe network because it did not have a 
monopoly in the sector. "There’s 
heavy competition.” he said. 

Deutsche Telekom’s network has 
more than 16 million subscribers. 
VEB A AG's Vebacom GmbH unit, 
the second-largest cable provider, 
has about 1.6 million subscribers. 

EU regulators are concerned fear 
a dominant telecommunications op- 
erator such as Deutsche Telekom 
would be in too powerful a position 
when European telecommunica- 
tions markets are fully opened to 
competition starting Jan. 1 , 1998. 

But the European Commission 
said that, contrary to the report, it 
was not on tire verge of forcing 
Deutsche Telekom to sell ail or part 
of its cable network. 

A study by an independent con- 
sulting firm that was the basis for the 
report marked the first stage of tbe 
commission's review of unks be- 
tween European telecommunica- 
tions and cable-television networks 
and made no policy recommenda- 
tions, the commission said. 

Deutsche Telekom is reviewing 
strategy for its cable-TV network, 
partly through meetings with Ger- 
man politicians to discuss options 
and to clarify whether these options 
would require legislative changes, 
the sources said. 

- * (Bloomberg. AFX) 

Franfcfeft . London ~ . ; :: 'Paris ;; ;' ‘ ‘ ■ v“ 

DAX . . CAC^O :;r.:v 

2950 4500 - — ’ 2500 

2850 A/ 4340 2390 j-i. 

27H — jr / — m -j m 'hS~- 

2650 -jP* ‘ 4020 -jApl* - 2m~ " 

2550^V 3860 /t* -¥ ' 2060-/- ” 

aSO'A ’s o n T>T' 37 ^ , a"s~oITd'3^ m i950 'a s ‘o N‘ , rKF 

1996 1997 ' 1996 1997 1996 1997 

5g/- - -•] 

1996 1997 

Exchange Index “ . 

Amsterdam • 6QE • - 
Bn3Sseis ' • ■ • 

fraratfurfr ... PAX-.'; I... ' 

1 ODpGRhnpR-, Stack . 

Wednesday PTOv. 

: «BLS7 V - 65m 

'2J988-45 ' g.fej&BS 

London ' FfSEtoL • 4^9*. 4 T *fl&a* .*&■ 

IStedrtd T C" ; s -034f 

Mganp 1 ' *hb& : ' ■ ■y-^jsrW 

P®fe - . ' •••'/ [.CfiC-40 ■ ■■ '\Z2SJ3SS " ' -03& 

srocjtfic^ ,sxi$\ v s^si&ss 2,62756 -044 

Vfaada ADC' "■ • 4,16333 -vtjue 

■ZMkii "" WrT: ' aiff5H3S*'2^gUi A 4Ai- 

Source: Tefekurs imenuuonai Hoaid Tribune 

Very briefly: 

• France’s current-account surplus in October was a larger- 
than -expected 1338 billion francs ($2.5 billion), compared 
with 14.15 billion francs in September. A record year for 
tourism and solid export growth have put France on track for 
a record full -year surplus of more than 100 billion francs; tbe 
1995 figure was 843 billion francs. 

• France's National Assembly passed legislation that would 
give about 14 million private-sector workers fee option of 
setting up private pension accounts. The bill was voted on by 
only 47 of the assembly's 577 members, with 34 votes for and 
13 against The Senate will debate the bill Jan. 30. 

• British unemployment fell to a six-year low of 1.88 million in 
December, and the jobless rate slipped to 6.7 percent from 6.9 
percent in November. The seasonally adjusted drop of 45,100 
in the jobless total was larger than analysts had expected. 

• Orange PLC, a British mobile-phone company, is joining 

Deutsche Telekom AG, the Dutch bank A BN- AMRO and 
Enertel, a group of Dutch utilities, to bid for a third mobile- 
phone license in fee Netherlands. Bloomberg. Hewer* 

Grenfell Suspends Manager 

Agence France-Presse 

LONDON — Deutsche Morgan Grenfell AG suspended a 
top fund manager who allegedly tried to persuade about 20 
colleagues to leave with her and go to work for a rival 
company, sources close ro fee bank said Wednesday. 

Tbe move marks another embarrassment for Deutsche Mor- 
gan Grenfell, whose fund-management subsidiary, Morgan 
Grenfell Asset Management, was involved in a scandal last year 
over unauthorized actions by a fund manager, Peter Young. 

The company said Nicola Horlick. who is one of Britain's 
most powerful fund managers, was planning to move to the 
Dutch bank ABN -AMRO, which has been expanding its 
presence in London. 

“An investigation is taking place over a possible breach of 
her employment contract.” said a spokesman for Morgan 
Grenfell, which is owned by Deutsche Bank AG. 

Ms. Hortick, 35, is head of Morgan Grenfell's pension fund 
business, which manages an estimated £18 billion ($30 billion). 

The Trib Index 

Closing pness. 

Jen. 1. 1 992= ICO. 




year to (Mb 
% cftange 

World Index 









-12.09 , 






N. America 





S. America 

industrial Indent* 





Capita/ goods 

























flaw Materials 















The toemmional Herald Tnbune WarU Stock ImsaxO neks the US. dollar values c# 
280 Intamabonoey in wwnhte atocte bamSS counaiea. For more tntarmeOon, a free 
booUot Is mratette by writing tone Trib Mox.197 Avenue Cherieo d» OauOo. 

22S?T NetWy Codex. France. Complied bv Bloomberg News. 



News Corp. Venture 

ina Web Site 


Rupert Murdoch 
another foothold in China’s 
media raaiket Wednesday when a 
vratoebetw^h isworichvidb^ 
£{bhshing concern. News 

state " nm People's 
pauy launched a ate on foe in- 
*met s World Wide Web 
: r The deal with China Daily was 
NewsCcHp, ’sfest ftHay into China's 
“^cjromc-publishing industry. 

- TteOunaByteWebatewiilsup- 

Pty jnformation-tedhnology news 
and data in Chinese to the growing 
5*nnber of Chinese users of the 
- worldwide computer network, said 
executives of the joint venture. 
Which is called PDN Xinren Infb£ 
tpa&on Technology Co. 

The on-line service is the first 
product t° come from Mr. Mur- 
doch s $5.4 million, 20- year dea l 
with (he flagship Co mmunis t Party 
Newspaper. When it was signed in 

June 1 995, the venture was seen as a 

key step in Mr. Murdoch's attempts 
to penetrate China’s news market. 

The venture is investing $2 j 5 mfl- 
lion in ChinaByte, and its executives 
said the site would earn revenue 
mainly through advertising. 

Bruce Dover, Xinren’s general 
manager, said the site aimed to put 
Chinese users of the Internet on tf on 
an equal footing with their Western 
counterparts.’’ He said ChinaByte in- 

®nd software licensed from the Amer- 
ccwaptner-mafiaiane oroducer 
Ziff-Davis Pu blishing Co, whSfais 
o'™* by Softbank Cotp. of Japan. 
Users of die site, located aihrtp://, will be able to 
download about 900 free software 

®es in China and technology news 

„ 1 reviews and ratings. 
j software made available will 
oe carefully vetted to make sure it 
does not offend Chinese sensibil- 
ities, said Adam Power, managing 
director of Ziff-Davis Publishing 

* 'You wouidn ’t see anything that 
is morally unacceptable on our 
sites,” Mir. Power said. ; 

Mr. Dover said the Web site was 
expected to show an operating profit 
after one or two years. The home 
page that advertises ChinaByte ha s 
attracted 5,-000 viewers daily, be 
said. ’ (Reuters. Bloomberg) 

■ STAR Comes to Middle East 

STAR TV, a subsidiary of News 
Corp., said it would launch a six- 
channel satellite television service 
for subscribers in the Middle East, 
Agence France-Presse reported 
from Hong Kong. 

The service, which includes the 
channels STAR Plus International, 
STAR Movies, STAR Sports, NBC, 
CNBC and Fox Kids, will cost about 
$20 a month. Sky News, Channel V 
International and Viva Cinema will 
be added in April, STAR said. 

U.S. Funds Check Out China 

Shanghai Impresses Public-Sector Investors 

By Seth Faison 

Hew Tori Tunes Service 

SHANGHAI — Fora bunch of money managers with 
$234 billion to invest, China can lode awfully tempting. 

Shanghai is alive with entrepreneurial dynamism, 
and almost any visitor will be struck by the sheer 
abundance of building there are more than 22,000 
construction sites hare — a visible symbol of the 
nation's locomotive-like economic growth. 

A troupe of American pension-fund managers, in- 
cluding the head of the huge California Public Em- 

to look for places to pmk some of their cash. By the end 
of the day, they were pretty taken with die place, 
though they professed to have no illusions about the 
challenges even the sawiest investors faced in China. 

"Rarely have I been as excited as I was today,” said 
Thomas Flanigan, who runs the California State Teach- 
ers Retirement System, which manages $65 billion. 
' ‘This is where (he growth is; this is where the future is. 
Tve beat in the investment arena 25 years, and I’ve 
never seen the kind of growth Shanghai has.” 

It is high time, Mr. Flanigan and other fund man- 
agers said, to allocate a greater share of assets to Asia 

The' California fto^^Amenca’s largest pension 
fund, with $105 billion m assets. It has $25 billion 
invested outside the United States, mostly in Europe. 
Of the $7.7 billion it has invested in Asia, $5 billion is 
in Japan. 

The fund is well-known in the United States and 
Europe for using its financial muscle to pressure 
boards of directors into malting companies more 
responsive to shareholders, as well as for investing in 
what it considers socially responsible companies. 

Last month, the fund said it was working with the 

Asian Development Bank to set up a $500 million 
private investment fond for Asia. 

"China is a place we feel we really have to be,” said 
William Crist, president of the California fund. 

But it can be difficult for responsible investors to 
be here. China's public sector offers relatively few 
places to park their cash, and financial reporting is 
often unreliable at Chinese companies. 

China’s stock markets, though they have come 
alive in recent months, are still composed of compa- 
nies thar are opaque in how they parcel out profits, 
and the markets are small by American standards. 

"The B shares are still so illiquid,” said Patricia 
Small, treasurer of the board of regents of the Uni- 
versity of California, referring to the doliar-denora- 
inated shares available to non-Chinese investors. 
“When you have a large public fond, you need li- 
quidity.'’ Matt Fong, California’s state treasurer and 
head of the group of two dozen public-sector money 
managers making the 12-day trip through Asia, said the 
solution in China might be private equity deals. Even 
then, relying on a partner to find direct investments in 
small and medium-sized companies is a challenge. 

Mr. Crist said the California fund made its first direct 
investment in China last year, agreeing to sink $100 
million into a partnership with a Taiwan-based in- 
vestment company called China Development Corp. to 
look for cash-hungry enterprises in southern China. But 
so for, he said, only $1 million had actually been placed 
in a local company, because it was more difficult than 
expected to find financially responsible takers. 

That reality, however, aid not seem to dampen the 
enthusiasm of the other pension-fund managers. 

"We don’t want to wait for the listed markets to 
provide the kind of assurances we need; we want to get 
in now." saidRich Rose, head of the San Diego County 
Employees Retirement Association. 

Investor’s Asia 

Nikkei 225 

10 ® 0l A"S r O , N D J '. ^"a’S'oVo'j \ 17000^5 CfN to O' 

1996 1997 1996 1997 1996 1997 

• " index ‘ . WedneSfey Prev. % •' 

Hong Kong . /-Hang Seng 13,766.55 1&29&87 43$*; 

Singapore ' 

. Sirens Tirrtea 




Sydney. ;• " 

AliQrtSnsiias ! ■ 







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807.67 . 


Seoul • 

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Stock -MaricBtlndBjf 7,16546 



ManN* •, 

;pSE • • 



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Source: Telekws 

lotcnunataii Herald Tnhunc 

Very briefly: 

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Hong Kong Property Sale Bolsters Stock Prices 

Bloomberg News 
HONG KONG — A prop- 
erty-development company 
controlled by foe Philippine 
investor Lucio Tan paid al- 
most 20 percent more Wed- 
nesday than analysts had pre- 
dicted for two pieces of land 
in Hong Kong, bolstering ex- 
pectations that rising property 

prices will lift the territory’s 
corporate profits. 

Hong Kong’s benchmark 
Hang Seng index rose to a re- 
cord after Mr. Tan’s Eton Prop- 
erties Ltd. pud 488 million 
Hoag Kong dollars ($63.1 mil- 
lion) far two rites at foe gov- 
ernment’s first land auction of 
foe year. Analysts had predicted 

the plots would fetch a total of 
about 405 million dollars. 

“We think it’s a good time 
to expand aggressively into 
property development,” said 
Alan Kwan, Eton's chief ex- 
ecutive. The higher-ihan-ex- 
pected price drew new atten- 
tion to a wave of property 
speculation that already had 

mme*»*r* ■■■■■. 
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Rates on the Internet 

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prompted the Real Estate De- 
velopment Association to un- 
veil self-regulatory measures. 

The Hang Seng index rose 
472.78 points, or about 3.6 
percent, to 13,766.65. Because 
seven out of 10 Hong Kong 
companies invest in or devel- 
op property, real estate is die 
key to most corporate profits. 

Luxury home prices, which 
rose 40 percent in 1996, are 
likely to go up by 15 percent 
this year, analysts say. 

■ Government Steps In 

The Hong Kong government 
announced a series of measures 
to slow speculation in the boom- 
ing property market, Agence 
Fraoce-Presse reported. 

Dominic Wong, secretary 
for the housing department, 
said foe government bad 
reached an agreement with 
the Hong Kong Real Estate 
Developers Association, 
whose members would cany 
out the measures. 

The steps include limiting 
corporate acquirers of fin- 
ished property to buying only 
foe last 1 5 percent of a batch of 
properties put on the market 

• Australia & New Zealand Banking Group Ltd.'s growth 
in loans and fee income offset tighter interest margins in its 
first quarter, leaving its profit forecast unchanged, the bank 
reported; it did not release figures. 

• Australian stocks rose to records, led by banking shares, 
amid optimism over falling interest rales, lire All Ordinaries 
index rose 18.80 points, to a new high of 2,438.20. 

■ The Bank of Thailand will double the width of the range in 
which the baht fluctuates against the dollar, to 8 satangs (03 
U.S. cents), but it said the new currency band would not be 
implemented right away. 

• Samsung Electronics Co. is being sued along with 15 other 
companies by a U.S. facsimile-machine maker, Automated 
Business, which alleges patent infringement, a South Korean 
association reported. 

• The Sea- Me- We 3 cable network moved closer to linking 
the Pacific Rim. Southeast Asia, the Middle East and Europe 
when 80 telecommunications companies signed an agreement 
in Singapore on investment in the $1 3 billion project. 

• All Corp., a non bank financial institution burdened by bad 
loans, will be liquidated by the end of March, a Japanese 
financial daily reported. 

• The Philippines forecast economic growth of 7.8 percent 

for 1 997. Reuters . AFP. Bloomberg 

VOW: Aides Deny Bank Deal 

Continued from Page II 

other EU members. Germany and France have traditionally 
bees at odds over the degree of political independence of foe 
European central bank. 

Germany wants a nonpolitical euro that is as strong as the 
Deutsche mark, in effect transferring to Europe the economic 
advantages Germany has gained through a stable and hard 

Many French politicians, however, including Mr. 
MarcheUi. seek a political voice in monetary affairs. Some 
economists worry that french politicians are eager to call for 
rapid interest-rate reductions as a way to fight unemployment 
and soften foe currency to promote exports. Both views are 
anathema to the Bundesbank. 

“It will be one of the difficulties in a currency union,’’ a 
German monetary official said, “that some members will not 
get used to the idea of giving up their sovereignty.” 




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World Roundup 

Dm C3nBB/XcdlcTi 

WHAT’S NEW — Newcastle’s 
new manager, Kenny Dalglish, 
attending practice Wednesday. 

Cowboys Off Hook 

The former stripper who accused 
Michael Irvin and Erik Williams of 
the Dallas Cowboys and a third 
man of sexually assaulting her two 
weeks ago. was at large Wednesday 
on a warrant charging her with fil- 
ing a false police report 

Nina Shahravan. the 23-year-old 
woman who made the accusation, 
was charged Tuesday with filing a 
false criminal complaint The 
charge is a misdemeanor, which 
carries a maximum penalty of six 
months in jail and a $2,000 fine. 

In a statement the Dallas police 
said their investigation into the case 
had been concluded. (NYT) 

Investigation of Graf 

tbwbs International tennis of- 
ficials are investigating allegations 
that Steffi Graf took appearance fees 
at tournaments — a banned practice 
dial can result in players being sus- 
pended for three months. The public 
prosecutors involved in die tax trial 
of Grafs father, Peter, said Wed- 
nesday that the Women's Tennis 
Association had contacted their of- 
fice for details of the alleged pay- 
ments. >'<:tuers) 

• A Spanish tennis pro ‘gnacio 

Tniyol, has been given 1 one-year 
suspension from the ATP Tour 
aftertesting positive foran anabolic 
steroid and a stimulant Truyol. 
ranked No. 127. said the drugs were 
prescribed by a Spanish physician 
to treat a back injury. (AP) 

Giants Name New Coach 

football Jim Fassel. 47, the 
Arizona Cardinals’ offensive co- 
ordinator, was named Wednesday 
as coach of the New York Giants. 
He succeeds Dan Reeves and re- 
turns to the team where he served as 
an assistant for Ray Handley in 
1991-1992. (AP) 

For the Record: 

• Arnold Palmer, 67. is expected 

to remain hospitalized for several 
days as he recovers from surgery 
for prostate cancer that was sched- 
uled Wednesday (AP) 

• Eddie Mathews, 65, a Hall of 
• Famer for the Milwaukee Braves, 

has been hospitalized in Encinitas, 
California, as be recovers from a 
boating accident in the Cayman Is- 
lands in December. (AP) 

The Swinging Success 
Of Coach Leadbetter 

Stars (and Others) Covet His Savvy 

By Ian Thomsen 

International Herald Tribune 

A l -F-TTHR came from Bill Clinton 
not long ago. “He wrote just be- 
fore the election," David Lead- 
better was saying from his office in Or- 
lando. Florida, on the opening weekend 
of the American golf season. “He said 
when things calmed down a bit he was 
hoping we could get together." 

Leadbetter is a golf teacher. You 
might think that such a man would be 
consumed by grips and dubhead speed 
and being square at address. Leadbetter 
is thus consumed but in a slightly more 
dynamic way. Last Thursday, when all 
of England was seeking answers for 
why Kevin Keegan had resigned as 
manager at Newcastle, Keegan's agent 
was on the phone to Leadbetter trying to 
arrange golf lessons. Earlier this winter 
a new client came to see him. The 
helicopter landed outside Leadbe tier's 
office, out stepped Greg Norman. 

Ask Leadbetter if it’s true that a 
golfer's swing embodies his personality, 
and he talks about Sylvester Stallone. 

“His swing is aggressive," Lead- 
better said. “He tries to overpower il 
I’ ve said to him, 'You tried to hit that 
one hard. Sly,’ and he’ll look up and say. 
‘Absolutely.’ " 

Leadbetter is the Armani of golf 
coaches. The world’s most fashionable 
players — Norman, Nick Faldo, Nick 
Price. Ernie Els. Bernhard Langer. Seve 
Ballesteros — seek his advice regularly. 

Recently, Leadbetter signed a five- 
year contract to promote Callaway golf 
clubs, and he agreed to cooperate on a 
David Leadbetter clothing line with the 
American company Joseph A. Bank. 
The clothing announcement is amazing. 
Leadbetter is a golf coach after all. His 
most glamorous pose is a hands-on- 
knees crouch. 

* ‘They wanted to develop a golf line, 
and I work with a lot of top people." 
Leadbetter said. “They don’t require 
me to go out and shoot 68 every day to 
keep my name out there. A player can 
have an ofF year and people can forget 
him. With me there’s more continuity. 
One of ray players is probably going to 
play well. I’m always in Golf Digest or 
on the Golf Channel: I’m always going 
to be in the public eye a little bit’ ’ 

Ar 44, his empire of golf instruction 
includes 15 David Leadbetter Golf 
Academies around the world- For three 
years he has been running a boarding 
school in Sarasota. Florida, for 40 po- 
tential professionals — teenagers who 
attend normal classes in the morning and 
practice golf for the rest of the day. Then 
there are the two-day golf retreats and 
the corporate outings where be performs 
the miracle of curing a weekend am- 
ateur’s slice or hook within minutes. 

“I prefer to spend at least a half-day 
with a player to give him a blueprint for 
bis swing," Leadbetter said, but there is 
only so much time. Altogether he tries to 
correct about 2,000 swings annually. 

As a young struggling Englishman on 
the European and South African tours, 
Leadbetter never gave the total com- 
mitment that he expects today from his 
top players. In 1982, he became a full- 
time teacher at a golf resort near Or- 
lando. He started working with Denis 
Watson of Zimbabwe, whom Leadbet- 
ter had met while growing up in die 
former Rhodesia. By 1984, Watson was 
surging to win three American tour- 

naments, more than $400,000 and 
second place in the Player of the Year 
voting. Nick Price, another friend from 
Zimbabwe, developed under Lead bet- 
ter’s instruction to win three major 
championships in the early 1990s. 

The player who made the teacher 
famous was Nick Faldo, who in 1985 
asked Leadbetter to help rebuild his 
swing. Faldo, already England’s top 
player despite his reputation for failing 
under pressure, all but disappeared for 
two years while he and Leadbetter took 
things apart and reassembled them. 

“Jn the beginning my name was mud, 
especially in Britain," Leadbetter re- 
called. “Who was I to screw up their 
No. 1 player? When he started winning 
it was, ’Wow.’ ’’ 

Leadbetter was known disparagingly 
on the Tour as “Faldo’s shadow." 

“It used to be that only novice play- 
ers would get lessons.” Leadbetter said. 
“The Tour players would mostly talk 
amongst themselves, work on little 
things. ’’ When Faldo began his run in 
1987 of major championships — today 
he has won three British Opens and 
three U.S. Masters — he created a new 
industry for golf coaching with Lead- 
better in the middle of it When Lead- 
better joined the International Manage- 
ment Group, the coach became an 
industry himself. 

A LINGERING criticism of Faldo 
is that he is too technical because 
of Leadbetter’ s influence, too 
much of a perfectionist. “Nick is so 
technical because be wants to be feel 
oriented," Leadbetter said. “He’s one of 
the few players who really works the ball 
A lot of players are really one-dimen- 
sional, they hit it the same way every 
time, but Nick is hitting draws, he's hit- 
ting fades — be has the innate ability to 
really turn off the technical aspect and 
really work on feel. He's able to as- 
similate a situation and make it non- 
technical " 

“A lot of the people who criticize me 
for being too technical haven't seen me 
actually teach," he added. "The thing I 
pride myself on is being versatile. Ernie 
Els, for example, is very feel oriented. 
We’re never working on more than one 
thing. I’ve always said that teaching is 
25 percent knowledge and 75 percent 
communication. I could have a. very 
detailed technical thought, but if I 
presented it that way to Ernie he would 
never get it" 

Golfers see their sport as an isolated 
competition between themselves and 
tbe course. Imagine the absurdity of 
Marcello Lippi trying to coach Juventus 
and AC Milan simultaneously; in tennis 
it happens occasionally that top players 
will share a coach, though no one feels 
comfortable about it In golf, however, 
no one was flustered by the news last 
October that Norman was signing with 
the teacher who had helped engineer his 
catastrophe, an 11 -stroke-turnaround 
loss in the final round of the U.S. Mas- 
ters last year to Faldo. 

“It is a little ironic,’' Leadbetter said. 
“He is talented, no doubt He can hit 
some shots that nobody else can hit He 
has been a dominant player for a decade, 
but he doesn't show it in the majors. 
Obviously he puts himself under a lot of 
pressure in tbe majors and then when 
things start to go wrong it becomes. ‘Oh 
no, here we go again.’ Maybe something 
like this will really change his attitude.'’ 


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Ite WiutiT IHivtoeM. Uedw. CCZA 1U8 


UrftanV.trnct tract f-Pn-nr 

Michael Chang during his second-round victory over Richey Reneberg on Wednesday in Melbourne- 

13 Aces Propel Moya to 3d Round 

By Robin Finn 

New York Times Service 

MELBOURNE — If Boris Becker, 
the dethroned Australian Open cham- 
pion. had ventured out to Court 3, a 
substadium far too tiny for him to 
worry about performing on, he would 
have seen a double nemesis in action 
Wednesday morning. 

Pitted against each other were Car- 
los Moya of Spain, the youngster who 
ambushed Becker in the first round 
Monday, and Patrick McEnroe, the 
spoiler who debunked Becker in the 
first round here in 1995. 

Becker, of course, would not have 
rooted for either one. but the crowd of 
3,000 was clearly in the pocket of the 
telegenic 20-year-old Spaniard, whose 
long hair, headband and fluid passing 
shots are reminiscent of two stars from 
a bygone era, Guillermo VOas and 
Bjorn Borg. 

On Wednesday, the 25th-ranked 
Moya, still abashed by the instant 
celebrity he attained by ousting the 
incumbent dismissed the 229tb- 
ranked McEnroe, 3-6, 6-0, 6-3, 6-1. 

Moya fired 13 aces, a talent he 
traced to being the tallest member of a 
Spanish contingent that has lately de- 
voted itself to mastering the hard- 
court technique. He later disagreed 
with Becker's much-publicized accu- 
sation that the balls at this Grand Slam 
are inferior at best and. at worst part 
of an international conspiracy to 

hobble tbe power players of this 

“I don’t know why they are com- 
plaining — Becker. I don’t know, but 
maybe it was because ofhis loss, no?” 
said Moya, who also defeated Becker 
indoors at Paris, where the balls were 
hard, fast and above suspicion, last 

Moya said he had needed to unplug 
his hotel telephone after deposing 
Becker on Monday. 

Lately, Moya has been feeling quite 
at home in Australia, where he has 
immediately been adopted by the 

“I’m the first to be surprised at how 
the crowd, they want me,” he said. 
“I'm so far from home, but I feel like 

Another Grand Slam upset artist 
who could not be much more obscure 
is 488th -ranked Karsten Braasch of 
Germany, whose game proved too 
much for 12th-seeded Magnus Gusr- 
afsson of Sweden. The 29-year-old 
Braasch, the unconventional player- 
whose habit of smoking dunrig 
changeoyers prompted a rule against 
it surprised Gustafsson with a 3-6. 7- 
6 (8-6), 6-4, 64 comeback. 

Sidelined last year by back surgery 
and then, during hisrecupenration, by a 
car accident Braasch earned just 
$26,000 last year. He watched his 
ranking plummet and came to Mel- 
bourne, where he had not won on four 
previous visits, on a gamble. But he 

survived the qualifying rounds and, 
helped along Wednesday by Gust- 
afsson’s indifferent attitude. Braasch 
popped out 35 aces and delivered him- 
self to the third round. 

The runner-up last year, Michael 
Chang, who could face Moya in the 
semifinals, continued to advance 
without yielding a set His second- 
round conquest was 31si-ranked 
Richey Reneberg. who bowed out by 

6- 3, 7-5, 6-1. 

In women’s play Wednesday, top- 
ranked Steffi Graf extricated herself 
from a 5-2 first-set deficit saved three 
set point?, and quickly recovered to 
defeat Larisa Nefland of Latvia, 7-5. 

Conchita Martinez of Spain, the 
No. 3 seed, defeated Adriana Gersi of. 
the Czech Republic, 6-2, 7-6 (8-6). 

Unseeded Mary Pierce, whose one 
and only Grand Slam breakthrough 
happened here in 1995, kept herself on 
track and celebrated her 22d birthday 
with a 6-2, 6-2 victory over 93d- 
ranked Natalia Medvedeva. 

In other matches with seeded play- 
ers, Thomas Enqvist (No. 7), defeated 
Richard Fromberg, 6-4, 64, 7-5; An- 
drei Medvedev beat Michael Stich 
(15). 4-6. 6-1, fr-2, 4-6. 9-7; Lindsay 
Davenport (7) beat Flora Ferfeiti , 6-2, . 

7- 5; Amanda Coetzer (12) won 
against Jana Kandarr, 6-2, 7-6 (74), 
and Sabine Appelmqns (16) beat Arm 
Grossman of the United States, 64, 6- 



NHL Stammmqs 












S9 147 
















Net* Jersey 














Tampa Bay 







N.Y. lskutdere 

13 21 





mnriHEAST omsim 


















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San Jose 














Las Angeles 







□Oka 1 0 6—1 

Pmsfamsn 1 1 1—3 

First Parted: P-Somtstrom 9 (Necked 
Jotmssan) Z D-Kleu i f t t nd y k 14 (Sydor, 
Verbeek) (pp). Second matt: P-Jagr 39 
l Fronds, Oaussan) Third Period: P-Jagr4D 
(Lemeux. Raids! State W goat: D- 71-9- 
11—31. P- 7-10*10—37. GuBec D-titw. P- 

Bosom • 1 1—3 

Hewjefsey 1 2 1—4 

nil Parted! NJ^HoA 8 (Andreychuk, 
Niedennayer) Second Pen* NJ.-Rowon 
» (Guerin) 1 New Jersey. McKay 5 (Haflk, 

Daneykd) A, B-Ooleo 14 (Tocchel stompeW 
(pp). IBM Period: B-OMtate 11 ( Kennedy, 
Beddoes) t> NJ.-MocLean 15 (Rotskm) 
(enj. Shots aa goat B- 6-12-5—21. NJ.-13-7- 
13—32. GotfteK B-ToOoSl NJ.-Brodawr. 
Montreal 1 1 0-2 

PUodetefcki 2 6 1-3 

First Period: P-LeOalr 27, Z P-. DiW* 5 

(Coffey, NMnaa) 3, M-erunet 7 (Munuy< 

Tudcer) Second Period: NV-Sawge 16 
(CUBmore) (pp). TUrd PirtKfc P-Ccflsy 5 
(HawMOhuk, BrindAmouf) Shots an goat: M- 
545-18, P- 17-6-10-35. Godhc M- 
JoblonskL P-HexMl 

Los Angeles S 1 2 0-3 

Detroit 2 16 6-3 

(LopofaHe. Eriksson) Second Period: UL- 
Khristleti 13 (TsyptakaO 4 D-Sbanahan 25 
(Larionov, Kaztav) (pp). TUrd Period: LA.- 
Fenaro U (Bandied 4 Los Angeles. Stems 
8 (LapedeA Boucher) Overtime: None. 
Shots M god: LA^ 10-1 0-9-1— 29. D- W-14- 
2—31. GeaBes: 1_A.~Rset. D-Osgood. 
Horida 2 110-4 

Vocoder 112 6-4 

Bnri Period: F-Nlederroaver 7 (Lindsay, 
Maflonhy) Z V-Tklamen 8 (Joseph. Bure) 
(pp). 3, F-Svema 7 (Carkner) Seceed Period: 
V-smga- 11 (Waiter) 5, F-Nen*tJVSky 2 
(SknidtexQ ThM Period: V-Snnger 12 
(penally mat) 7, F-Swdda B (Sheppard 
Gcrrpeakw) & V-, MogITov 18 (Gaurinafi) 
OverifcneE None. PenoWes— None. Stats on 
goat: F- 7-9-12-0—28. V- 7-13-12-2-34. 
(Settees: F-FHzpaMcfc, VanWeshrouck. V- 


Satdne Appehnons 06), Btegiumrdtf. Ann 
Grossman, U-S. 6*4, 6-1: NanotM Zvereva 
Beforas. de£ wntiidProtab Germany, 7-6(7- 
5), 6-3; Kknberty Ptv U&< dot. Al Sugtyam 
Japon.6-a4-6.6-2; Krislle Boogert, (letber- 
londs, del RRa Grandts ttafo 6-1 7-5. 

Maty Pferoe, Franc* def. Natafla 
Medvedeva, Ukraine, 6-2. 6-% Mari tea 
Koctta Germany, dot. Annabel EBoreed, 
AusfRteQ, ML -4-4 64/ Uadsay Davenport 





In Sports every Monday 
starting next week 



(7). ILSl. deC Ron PerWtV Holy, 6-2 7-S 
Steffi Grai (1), Gerowiy* def. Larisa Nefland, 
LaMa, 7-& 6-2. 

loos GanodwtegoL Argentina det Qgl 
Fernanda, US. 7-6 <7-3J; Rftn KtraftL 
Japan, def Brando 5chuS* -McCarthy (10), 
Netherioodsr 0-4, 6-1, 6-V Tamartne Tana- 
suganv Thafland, deL Jane Taytoiv Aushnfla 

6- 4 6-2 Asa Cortssoa Sweden, def. PatrWa 
Hy-Boukfc Canada. 2-6. 6-2 6-0. 

ConchBo Martha (3). Spain, del Adriana 
Gent, Cm* RspuMc 6-2 7-6 0-6); Maria 
Luba Serna, Spate, del Undsay Lee, U4- 7-& 

7- 6 (7-2); Amanda Cooher (12), South Africa, 
dal Jana Kondon. Germany, 6-2 7-6 (7-4). 

an sumles, Meow) hound 
Cotlos Moya Spate, del. Polrtcfc McEnroe, 
U^. 26, ML 6-3, 6-1; Todd Woodhridge, 
AusJraOa dot Stephans Station, Franc*. ML 

6- 2 7-6 (7-5); Betnd KartMcher, Germany, 
def. Iltomas Johansson, Sweden, 6-2 6-2.7- 
6 OSU Michael Chatg GO, U.S* del Richey 
ReneOag, US. 6-2 7-5. 6-1. 

Koistan Braasch, Germany, def Magnus 
Gustotesort (12), Sweden, 3-6. 7-6(8-®, 6-46- 
4 M <tevm Washington. Ui, def. Saigb 
Saigslan, Armenta, 6-1# 64 MS Denote van 
Sctappingen. NettKriands.det Eynl Ran, Is- 
iael 6-1 6-2, 6-2; GtajertSthaflor, Austria, def. 
Ales Consda. Spain, *6, 6-2 6-14-4. 6A 
McroIo Bos (9), Cttea del Mfchoel Jayas 
U& 62 64 6-2; Thomas Enqrist (7), Swe- 
den, def. RIdianf Fromberg, Austnteq, 6464 

7- S Tin Henman, Britts del Gttefaume 
Raws, Fronee, 6-2 62 &-« Feflx Mantlfla- 
(14). Spakv det Femaida Meflgerd, BmH 6 
264 61. 

Sargf Bruguera, Spain, def Magnus Lnts- 
san, Sweden, 42 6264, 7-6 (7-0); Airnad 
Boetsdv Fronee. def Lionet How, Franca 6 
4 64 61; Jonas Bjorfcman- Swedwv det. 
Marc Gaeflner, Germany, 64 34 64 61; 
Andrei Medvedev, Ukraine, def. Michael 
Sfldi (15). Germany, 44 61, 62 44 9-7. 


LoadtagWandbigo tor th»19B7 Ryder Cup 
to be ployed Sept 28-29 at VkUurwno In 
Sotogrande. SpohL 


l. Tam Lehman 582J102 2 Doris Uiw 111 
6hon487Jma Soott Hoeh 400002 Be. TTger 
Woods 400JXKL 7. Mark OMeato 352000, 8, 
Fred Couples 2*7 SOI 9. Slew stricter 
34250210. Kenny Pcny 31 1S52 

1. Coin Montgomerie, Soottwid 287,696 2. 
Thome* Bjorn, Damafc 1 89 .366, 2 CastanB- 
no Rocea, Italy 170.997. 4 Darren Ctarkr. 
Northern Ireland 162413, 5. Per-UMk Jo. 
tanssaa Sweden IdOOSfi. 6 . Miguef Angel 
Marita Spain 137^61,7. Joan van do Velde. 
Ranee 1021422 Paul Bnadhunt, England 
95,1669. Sam Tenaoc&Sateond 6B04& )£L 
Miguel Angel Jtoenet Spain 85,19a 









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New Jersey 























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Oiariotto - 
















































San Antonio 















Muanc Dromon 


LA. Lotos 










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Golden State 












Grideo State 



29 31 — 106 




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w-,- auHiii a* apn-HUH m- 

1 2 32 B: F« 617 66 22 Wtetoms 9-163-4 21, 
Wesley 612 3-4 21. netauMb— Golden Stab 
41 (Spencer 7), Boston 55 (Writer 13). 
Assftts-Griden Stele 23 (Armstrong 7) 
Boston 27 (Wesley 10). 

Mtooesote 22 24 25 22— K 

Aflmrid 23 23 24 23- K 

Mi GugHrite 5-8 12-16 22 Gomel! 9-154 
22f A: Smith 1619 6726 Lde0ner61567j 
Retaands— Minnesota 49 (Ga^tette “ 
Aitonte 46 (Laettner 8). Assists— Minw 
20 (Moihury 8), Altantn 9 (BtaytocXA). 

He* York - 24 19 21 22— » 

Itewlta 30 33 24 19-10 

M.Yj Crilds 616(H) 19, Ewteg 6956 13 
Houston 612 61 11 Stories 5-15 2-2 11 H 
Boridey 9->7 9-10 29, O raster 7-77 M 19 
Rotowdi— New York 36 (Ewing 73, HouriS 
50 (Boridey 12). Asstoh-riew York V 
(CfiBds 5], Houston 26 (Dreder 9) J- 
nashimgmi 90 18 ao 29—19 

«»50 23 34 30 21-1* 

W: Webber 1622 6333, Striddond 6144 
a C Jordan 14-27 11*11 39. Plppen 9-21 V. 
25. aebfd o -Wa s h i n gton 4P (Webber in 

Chtogo 48 (Rodmon IB) 

*“***»— WtoWngtai 22 (Webber, SMcMom 
7), OBcogo 23 (ftppen 8). 

Oeam 22 23 22 24-l« 

24 M 34 28-171 
D:l_e& 14-271-1.33. D-Bto 615 4-5 24 
P: KJoteison 9-21 7-7 25, GetaUos 9-T6 
!□. Retaands — Denver 50 (EJoimson IS) 
Phoerux 51 (Meyer D). Assists— oema T 
LtecXsonig, Phoenix 27 OUohnsoa 16V 
D **ron 22 10 14 32—Bi 

Port tend 31 2D 17 28-9! 

D: MHb 610 2-2 24, KW 621 610 2ft P 
Wder 6)4 63 22, Seboris 5-13 *■ 
l6J »b aa nte ->Oriron 42 OffiMO), Potltata 
63 (Sobonte 138. Assiste— Detroit 19 (HB S3 
Poritood 25 (Aodanon 12). 

«*ww«r 27 19 19 16-41 

LA. Inters 21 28 18 24-41 

V: Pnte- 9-20 65 23, Abdur^bdUm 619 9 
1 1 19 ! UAj CTHeol 9-18616 24. Van Bel 6JJ 
1-2 17. Rebounds—' Vkmcouyer 55 (Reeve; 

“ < 0, W Knight 12) 
A»Ws— Vancouver 17 (AMhony 7L La 


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CfltSste J, TtatmeO 



The Associated Press 
Hoc we are again. It’s 

- — — — j —u uuuup 

Bulls are on a record-setting 
victory pace. 

Tbe Bulls improved their 


The home teams were vfc- 
torious hr all eight NBA 

- AOIHA 0 ntnn.J T * I • _ 

e to 32-4 

g™® in November. 
Berkley's spurt led Houston, 
to a 20-point halftime lead. 

Chicago’s latest victory 
came courtesy of another 
memorable perf ormance by 


Michael Jordan. Thistmie,he 
shookoff a score neck to score 
■ 8 of bis 39 points id the final 
two minutes. 

“I didn’t have a feel for 
what I'd be able to do at the 
end when I had some shots,’’- 
said Jordan, in obvious pain 
after the game. “Mjrnecfc is 

“I got. fouled m the hea d, 
and it jerked my neck and 
pulled that muscle/’ 

Scocrie Pippen scored 23 
points, hitting three of his six 
3-pointers in the fourth 
quarter, and Dennis Rodman ., 
had 18 rebounds to reach 
10,000 for his career. 

Chris Webber scored 33 
points for the Bullets, includ- 
ing a basket with eight 
secondsleft that sliced Qrica- 

f o's lead to 106rl04. But 
ora Kufcoc was left alone for 
a lay-up that sealed the vic- 
tory before Webber made a 3~ 
pointer at the final buzzer. 

ftoekats 108, Knacks 86 
Charles Barkley scored 24 
first-half points against 
Qiaries Oakley, die player 
who body-slammed bom to 
the coart in an exhilxtian 


Atlanta woo its 14th straight 
home game and drew a crowd 
of more than 14.000 for the 
fifth time in sax games. Steve 
Smith led Atlanta with 26 
points, and Christian Laettncr 
added 22 against hie former 

iMkmn 81 , Grtzzffcm 81 

Robert Hony spaded Los 
Angeles in his fiat game with 
I ns, ne w team, getting 11 
points, seven rebounds, two 
assists, three steals and two 
blocked shots in 26 minutes. 

TWI Btanrc a* PMm.86 

Arvidas Sabonis, who sat out 
the team’s practice Monday 
with a sere back, had 1 6 points, 
13 rebounds and four blocked 
shots, and Isaiah Rider scored 

22 points to lead six Portland 
players mdohbfe figures. 

Khiwiea!, Paean «8 Mitch 
Richmond sowed 7 of his 37 
points in overtime ami. con- 
tained Reggie Miller cm the 
defensive end. He had 13 of 
Sacramento's final 19 points, 
and triggered a comeback by 
scori ng 17 of Sacramento’s 35 
third-quarter points. 

tuns US, Nuggata 86 Kevin 
Johnson seored25 points and 
recorded his 6,000th career 
assist Cedric Ceballos added 

23 points and rookie center . 
Loren Meyer had season 
highs of 18 points and 11 re- 

Cattles 118, J h H hw 108 

Rick Fox scored 23 points, 
and Eric Williams added 21. 
both made key baskets down 
the stretch for Boston. Joe 
Smith scored 33 points, and 
Latrell Sprewell 32 for the 

t.-:* •*><</ ♦. *. .*v 



. ' ' Raj ^TubU'binr-'liniim 

Tbe Devils’ Randy McKay, right, using his hockey stick to slow down the Brains 1 center, Clayton Beddoes. 

Record Start by Penguin Rookie Goalie 

The Associated Press 

Patrick Lalime’s career is off to an 
unbeatable start Pittsburgh's rookie 
goalie unproved his record to 12-0-2 
when the Penguins defeated Dallas, 3-1 , 
matching the best start by a National 
Hockey League rookie goal tender since 
the 1967 expansion. 

- Lalime, who became a starter after 
Ken Wregget and Tom Barrasso were 
injured, stopped 30 shots Tuesday night 
to equal the 1 4-game unbeaten streaks of 
Montreal 's KenDiyden (12-0-2 in 1970- 
71) asdBoston’sRoss Brooks (11-0-3 in 
1972^73) at tite start of their careers. 

' Like T -alrmtt, Pittsburgh kept a long 
unbeaten streak going. Jaromir Jagr 
scared his league-leading 39th and 40th 

goals as the Penguins stretched their 
streak to 12 games (10-0-2). 

Davits 4, Brain* 2 In East Rutherford, 
Brian Rolston and Randy McKay scored 
in a 1:19 span of tbe second period as 
host New Jersey ended a season-high 
four-game winless streak. Bobby Hohk 
also scored for the Devils, who opened a 
3-0 lead early in the second period and 
then held on to band the Bruins then- 
third straight loss. John MacLean's last- 
minute, empty-net goal clinched the vic- 
tory and gave goalie Marlin Brodeurhis 
100th career victory. 

Ffyws 3, Cant fc m 2 In Philade lphia, 
Paul Coffey retained after missing five 
games wbb a concussion and soared the 
game- winner with 45 seconds left. Cof- 

fey, injured in a collision with teammate 
Eric Lmdros on Dec. 31. beat Montreal's 
goalie, Pat Jablonski, with a shot from 
just inside the point. Ron Hextali made 16 
saves in his 200fe victory for the Flyers. 

Kings 3, Rod Wings 3 Ray Ferraro and 

Kevin Stevens scored third-period goals 
to lead a Los Angeles rally for a tie at 
Detroit, extending the Red Wings' un- 
beaten streak to four games (3-0-1 ). 

Rut h s — 4, Canucks 4 In Vancouver, 
Alex Mogilny's goal at 8:43 of the third 
period gave the Canucks a tie with Flor- 
ida. Mike SUlinger scored twice for Van- 
couver, including a penalty shot that tied 
it 3-3 at 5:06 of the third period. Robert 
Svehla’s second goal of me game gave 
the Panthers a 4-3 lead. 

Parcells 9 Tough Defense Could Leave Pack in Shock 

By Gerald Bskenazi 

New York Times Service 

- : Tk TO matter what fee odds say, 

|\l the New England Patriots 

-L v have a powerful precedent 

on their side as they prepare for 
Super Bowl XXXI — the defensive 
1 1. innovations put togetfrsr by B ill Bar- 

ft Alt cells and his staff. ' . 

That, in mrh;t^Wnat&'1&£ 
m , higb-s«mrw <jri«ai Bay Packws 
rijy ; will be in rbr fee surprise of ifeeir 
iJ— season. 

w In 14 playoff games starting with 

r .. the 1984 New York Giants, no team 
„ ... facing an outfit coached byParceHs 
has ever scored more than three 
touchdowns, and only two of diem 
.. - ■ , even managed that many. On five 

~ occasions, the oppositionwas held 

. ; ~ -1 to six or fewer prams. 

‘ Whether it is Giant Blue or Patriot 
Blue, Parcells and his two key as- 
~ sistasts ■ — Bill Belichick arm A1 
j. ;V Groh — usually know how to shut 
*’ the other team down when the post- 
• season begins. 

- . “it’s not what your record is; it’s 

bow you’re playing now,”Parcell£ 

' has said every day of the current 

playoffs to just about anyone who 
will listen. His playeis have been all 
ears. In their last two games against 
two of fee National Fbatball 
League’s more potent offenses, fee 
. Steekas and Jaguars, the Patriots 
have yielded a grand total of three 
field goals. 

/‘What people overtook. is that 
there were three defensive 
v 06 Qrtifrfta 6 ft onth^Gtes 
- and aow ofl fee Patriots.”, 
the former Giants lineback- 
er Hany Carson said Tues- ^ 
day, referring to — who ft 
else? — Parcells, Grab and 
fee cerebral Belidrick- . 

Carson was a key figure in the 
Grants’ 1987 Super Bowl victory — 
die team’s' first In drat game, die 
Giants gave up 10 points m the first 
quarter to John Elway and the Bron- 
cos but then shut them down until 
die final moments of the game. 

Parcells always keeps m mind his 
team’s November and December 
schedule and uses those games to 
revise defensive formulas that may 
have worked imperfectly in the first 
partof the season. 

The changes he makes cany over 

to die postseason. In the last 11 

none o^h^teams have given up 
more than two touchdowns. 

This Patriots squad seems to be 
following the same pattern. Since 
being Mown out at home by the 
Broncos, 34-8, in mid-November, 
the Patriots have allowed the op- 
- position just 73 points m 
Seven games. Not only that, 
they have not allowed a 
touchdown, in 10 quarters, 
including fee two playoff 

Parcells, Belichick and 
Groh (who joined up with 
Parcells for fee Giants' 1990 Super 
Bowl season) have called the shots, 
and the players have done die rest 
Behchick was Parcells’ defensive 
coordinator during the Giants’ big 
years and rejoined him this season as 
assistant bead .coach after five sear- 
sons as the Cleveland Browns’ head 
man. Groh has been the Patriots' 
defensive coordinator since Rucells 
took over in 1993. 

Interestingly, the one time Par- 
cells did not have Behchick with 
him in a playoff game, he lost Be- 

lichick was on the other sideline 
coaching die Browns, who beat die 
Patriots, 20-13, in a wild-card game 
in 1994. 

The Patriots* defense held the 
Steelers’ top runner, Jerome Bettis, 
to a mere 43 yards in their 28-3 
victory two Sundays ago and re- 
peated that same low number last 
Sunday against the equally burly 
Natrane Means of the Jaguars. 

“'The Patriots blitzed more than 
we thought they would.” the Jag- 
uars’ quarterback, Mark Brunell, 
admitted after his team was held 
without a touchdown last Sunday. 
“They brought a lot of different 
looks. It was a matter of seeing it, 
adjusting to it We started to handle 
it better, but then they backed off 
and went into a two-deep zone. We 
were unable to adjust to it” 

Different looks. Carson recalled 
the National Conference champion- 
ship game between fee Giants and 
Redskins in 1986. Belichick de- 
signed new jobs for Carson and his 
fellow linebacker Pepper Johnson to 
deal with Washington’s bread-and- 
butter counter run. 

“Bill got the inside linebackers to 

go into a three-point stance, but only 
to knock fee offensive linemen off 
snide so they couldn't block,” Car- 
son said. “The Redskins never ad- 
justed.” No, indeed. The Giants 
won, 17-0. 

Four years later, in Super Bowl 
XXV, the Giants had to confront fee 
high-intensity, no-huddle offense of 
fee Buffalo Bills. Belichick had his 
staff members put together a one- 
hour, real-time tape of the Bills. 

He discovered that a key to their 
offense was not that they dashed into 
formation and snapped the ball, but 
that they quickly lined up — and then 
waited. Most offenses get set and 
hike die ball in five or six seconds. 
Jim Kelly would bring the Bills to the 
line, then make the defense wait nine 
or 10 seconds in their stance, 
muscles tensed and getting tired until 
he finally called for the ball. The 
Giants practiced for those moments 
and held fee Bills in check. 

Unlike those Giants, the Patriots 
have no widely acclaimed defensive 
stars. Five Patriots are going to fee 
Pro Bowl, all from the offense. But 
none of tirat will matter if die Patriot 
defense keeps doing its job. 



Gambling Ads 
Anger NCAA 

Press Warned on Credentials 

By Iver Peterson 

New York Times Service 

NEW YORK — Chris Chirimbe’s advertisement said. 
“I know how bad you feel and I know how desperately 
you need some big winners.” Scott Thompson’s offered 
“three days of guaranteed free winners.” while Sal 
Conti’s boasted, “Winners — you need them, we've got 
them — Free! Free! Free! ” 

What these advertisements from gambling experts prom- 
ised in last Friday’s USA Today was the best guess on the 
winners of coming college sports events. And the National 
Collegiate Athletic Association wants them stopped. 

In a letter to USA Today and to an undisclosed number of 
other newspapers, the governing body of intercollegiate 
sports has threatened to deny press access to the college 
basketball championships in March unless they agree to 
drop advertisements that mention college sports, as nearly 
all of them do. Some newspapers have agreed, according to 
the NCAA 

But USA Today, the country’s second largest daily, wife 
a circulation of 1.3 million, said Tuesday that while it did 
not condone college sports gambling, it would not allow 
the NCAA to tell it what advertisements it could print. 

“Let’s face it, a newspaper can’t be in the position of 
having a third party tell them what they can and can’t 
run.” said David Mazzarella. editor of USA Today. 
“That doesn't mean a newspaper should not be on guard 
against misleading. ads, but feat is not a decision for 
anyone on fee outside or it would never stop — you would 
have one company blackmailing a newspaper if it ran an 
ad for a competitor.” 

Editors at a few other newspapers said that they had 
been pressured by the college sports governing body over 
gambling advertisements in fee past but that fee issue had 
been resolved, typically when the newspaper agreed to 
forbid the use of fee letters ‘NCAA* or fee names of 
colleges in gambling advertisements. 

A review of advertisements in USA Today, The Daily 
News in New York, The Times-Picayune in New Orleans 
and fee Chicago Sun-Times showed plenty of references to 
“college” games. 

Adrienne Rhodes, a spokeswoman for The Daily News, 
said fee newspaper had a policy against running gambling 
advertisements that referred to coUege games. Tire contest 
sets up an unusual legal situation, lawyers said, but not one 
that necessarily favors USA Today. 

The Fust Amendment protects a newspaper’s right to 
print what it knows, said Vincent Blasi of Columbia Law 
School, but it does not guarantee a right to learn more, by 
sending its reporters to attend a game with press cre- 
dentials. for example. 

So, an NCAA denial of press credentials would not stop 
a newspaper from buying tickets for its reporters and having 
them cover the game from the stands, but the reporters 
would be barred from locker rooms, where important 
interviews are conducted, and from some news confer- 
ences. said David Cawood, an executive vice president of 
the NCAA 

The issue arose in December when the NCAA’s Men’s 
Basketball Committee, which manages the Final Four 
competition, wrote to USA Today ana other newspapers 
noting its policy against gambling advertisements and 
asserting that fee newspapers would not be certified ‘ ‘for 
working press credentials for fee 1997 National Col- 
legiate Basketball Championship” unless they stopped 
“publishing advertisements feat are designed to encour- 
age gambling on college sports.” 

Yankees’ New Pitcher Breaks Hand 

The Associated Press 

SAN DIEGO — David 
Wells, signed as a free agent 
to sotidify the New York 
Yankees’ injury-plagued 
starting rotation, could miss 
the start of spring training 
after breaking his pitching 
hand in a weekend brawl. 

Wells, 33, who agreed to a 
$13.5 million, three-year con- 
tract wife the Yankees last 

month, could face felony as- 
sault charges alter being in- 
volved in tbe brawl early 
Sunday that left two other men 
injured, the police said. But no 
arrests have been made. 

Wells's agent said the left- 
hander would be out for six 
weeks because of tbe injury. 

Wells was 11-14 wife a 
5.14 ERA last year for Bal- 





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PAGE 20 


Spinning Spokesman 

id Griffin, a recent grad- 
uate of Georgetown Uni- 
versity. came to see me about 
getting a job in the new Clin- 
ton aahiiiustration. 

“I want to be a spokesman 
for a member of Congress or 
the president 
of the United 
Slates," David 

"That's a 
lofty ambition.” 

1 told him. 

"I know how 
to tie." 

“You're not 
required ro lie. 

The trick to being a spokes- 
man is to twist the truth 
badlv that nobody can 



tell what's up or what's 
down. You also have to say 
everything with a straight 

"I can do that," David 

“O.K.. Let's suppose that 
Newt Gingrich took money to 
teach a course on Henry V1H 
and spent it instead on polit- 
ical campaigning tor speaker 
of the House. Such action 
couJd violate the ethics rules. 
How would you handle 

“I'd say that it’s the 
biggest political smear the 
Democrats have pulled in this 
country's history." 

"No. you wouldn’t. You'd 
that Gingrich's lawyer 


$1 Million for Jazz 

Ti:e As\.vhited Prew 

Corporation for Public 
Broadcasting announced a S I 
million grant to the movie- 
maker Ken Bums for a 12- 
hour documentary on the his- 
tory of jazz. to be aired in 
2000. Bums is best known for 
two documentaries. “The 
Civil War” and “Baseball.'' 

O.K.'d ihe deal, and the 
speaker is in the process of 
firing him.” 


“It's always a good idea to 
fire your lawyer when you get 
into* a jam in Washington. 
Now here's a toughie if you 
ever hope to land a job in the 
White House: 

“Diane Sawyer, the crack 
TV correspondent, wanders 
up to the second floor of the 
white House with a hidden 
camera and discovers an en- 
tire family of Tibetan cash- 
mere shepherds in the Lin- 
coln bedroom cooking Iamb 
stew over an open fire. 

“When Diane asks what 
are they doing there, the lead- 
er of the group tells her that 
they have donated 250 tons of 
cashmere sweaters to the 
president's legal defense 

“As spokesman, bow 
would you handle this situ- 
ation at the next press con- 


David responded, “First 
we would say it was a mis- 
understanding and return the 
sweaters to the shepherds. 
Then we would declare that 
from now on anyone permit- 
ted by the Democratic Na- 
tional Committee to sleep in 
the Lincoln Bedroom would 
have to be a citizen of the 
United States or its equival- 
ent. Then we'd issue a state- 
ment that the president would 
form a commission to find out 
who has been renting out bed- 
rooms in the White House to 
large party contributors.’’ 

‘ 'what if the press wants to 
see where the cashmere 

David said. “1'U promise a 
full FBI investigation into 
why Diane Sawyer was on the 
second floor of the White 


' *■ l* 1 '! 


A Chinese Painter’s Triumph 

Chen Yifei Is Feted Both in East and West 

By Edward Cody 

Washingtim Post Service 

S HANGHAI — Adolescent fans 
crowd around him. begging for 
autographs as if he were a rock star. 
Newspapers local, regional and in- 
ternational write admiring articles. 
The prestigious Shanghai Museum 

P resents a 60-piece exhibition of 
is art called “The Homecoming 
of Chen Yifei. 1 ' 

“Sometimes 1 don't believe I 
can do this well.” said a bemused 
Chen as be looked over his si- 
multaneously serene and assertive 
portrait of a flute-playing woman, 
painted in New York in 1987. 

But he has, and the show in the 
spectacular new Shanghai facility 
proves how far he has come since 
his youth under the stifling em- 
brace of communism in this city, 
where he attended its art academy 
and made his debut with posters 
glorifying Mao Zedong. 

With residences here and in New 
York and a contract with Marl- 
borough Fine Art in London. Chen, 
a sleek 50 with chic round glasses 
under arched eyebrows, has be- 
come arguably the most successful 
contemporary Chinese painter, a 
trans-Pacific phenomenon who de- 
clares his work neither purely 
Western nor purely Chinese but 
purely his own. His paintings have 
risen steadily over the past decade 
in price and renown, drawing hun- 
dreds of thousands of dollars in the 
Llnited States. Europe, Taiwan, 
Hong Kong and. more recently, his 
own People's Republic of China. 

A Chinese securities firm re- 
cently bought “Wind of the Moun- 
tain Village.” Chen’s 1994 work 
showing Tibetans bundled in heavy 
fur coats against the Himalayan 
cold, for $344,000. believed to be 
the highest price ever paid at auc- 
tion here for a modem Chinese 

The taahiiigioa PoM 

Chen in his Shanghai studio. 


“For the future, definitely this 
will be the biggest market for 

Chinese art,” he said at the year- 
old Shanghai Museum, smiling at 
the prospect. “No doubt about that, 
because Chinese are getting so 

Although cultural controls have 
remained in force under China's 
ill-defined and still developing 
market socialism. Shanghai au- 
thorities have vowed to make their 
city a world-class cultural center — 
a place where artists like Chen can 
feel at home again. The Chen ex- 
hibit, which opened Dec. 22 and is 
to move next week to Beijing, was 
organized by the museum’s cur- 
ators. along with Marlborough, as 
part of that vocation. 

“Culture constitutes a major 
part of Shanghai's long-term de- 
velopment blueprint, so that the 
city will become a metropolis dis- 
tinguished not only for its industry, 
commerce and finance, but also for 
its culture," Chen Zhili, deputy 
secretary of the Shanghai Com- 
munist Party municipal committee, 
told the official China Daily. 

Under this more relaxed regime, 
Chen has also thrown himself into 
filmmaking, producing a docu- 

mentary on the Jewish emigrants 
who fled persecution during tile 
1 930s and ended up in a welcoming 
Shanghai. At one point they 
numbered up to 30,000. 

His next focus, Chen said, is the 
golden youth of Shanghai, the stu- 
dents and stockbrokers who dance 
the night away in discos and seem 
to profit from the nascent freedoms 
of a changing China. 

“They look so happy, but how 
do they think?" he wondered. 
“What do they want to do?" What 
Chen always wanted to do was 
paint, but what he painted was 
colored by the times. 

His 1972 work "The Yellow 
River," depicting a proud Chinese 
soldier overlooking the famous 
river, was rigorously PC even for 
those times. But it was rejected for 
exhibition by Chinese culture com- 
missars who thought the water 
seemed too gray for a river that 
was. after all, named "Yellow." 

Another painting produced then, 

• ■’n.a ci.. ” .i. n 

The Red Flag, ’ ’ also was rejected 

because Red Guard critics said sol- 
diers shown charging heroically in- 
to battle were too grim and their 
uniforms too dirty. 

Against that background Chen 
painted his milestone 1979 work, 
“Thinking of History From My 
Space." The large canvas shows 
Chen, standing pensively with his 
back to the viewer as he surveys a 
sepia-toned tableau of jumbled im- 
ages from C hina ’s chaotic and of- 
ten violent history. 

Against that background, Chen 
decided to leave for the United 
States. An American art critic im- 
pressed by "Thinking of History 
From My Space" joined with a 
Hong Kong watchmaker to get him 
a visa and a sponsorship. 

The move to New York in 1980 
opened his art to a new world, and a 
new world to his art. But Chen — 
perhaps mindful commissars are 
still around, if more flexible — 
now describes his departure as ful- 

mm cEssaagE 
s^**iHS** m 

a«. Yi&yMufixBMigh Knr Alt 

Chen’s 1996 “Beauty With Fan”: Western influences. 

fillmeot of a longstanding desire to 

view European paintings. 

“I left China because I wanted to 

seethe Old Masters in the original,’* 
he said. "And then my career got 
started, so that is the story of thaL” 

The real story was more com- 
plicated. It included miserable 
poverty for a time. It included the 
humiliation of being a known artist 
in China and an unknown striver in 
New York. But after working in a 
painting restoration shop for a year, 
Chen was taken on contract by the 
Hammer Gallery. Shows, sales and 
recognition followed. 

The paintings he executed in 
New York displayed an intriguing 

mix of Western technique and 
Chinese sensibilities. Western wo- 
men playing musical instruments 
were placed in a dark, formless 
background that gave them a mys- 
tical air. Conversely, Chinese wo- 
men in traditional dress were de- 
picted with Western flourishes. 

“It does not matter whether 
Chen, chooses a Chinese or West- 
ern model, or whether he paints a 
Chinese or Western landscape." 
wrote Wang Qi. vice president of 
the Chinese Artists' Association; 
“the result is that his portraits and 
his landscapes are all international 
in character while retaining a 
Chinese flavor." 

.. ;:<5* 

,..rt *• 










Messages on Candy Valentine Hearts Get Hip 

By Donna St. George 

AVu- York Timet Scniee 

N EW YORK — This is the time of 
year when words of love are 
stamped upon small hearts of pastel- 
colored candy. “Be Mine." "Kiss Me." 
“Cupcake."’ They are sweet standards 
of old-time romance, of an era of gentle 
wooing and watchful manners. 

But this year, love is being nudged 
into the 1990s. Look for hearts that say 
"Awesome.” “Page Me." and “E- 
Mail Me.” Even “I Don't Think So” 
Iread as a Jerry Seinfeld kind of reton). 

“We wanted to add a little spice." 
said Walter J. Marshall, a vice president 
and words mi th of romance at New Eng- 
land Confectionery Co., better known as 
Necco. which makes 80 percent of the 
message-bearing hearts that are sold for 
Valentine's Day. 

At its candy-making headquarters in 
Cambridge. Massachusetts, in a sprawl- 
ing 70-year-old plant filled with the sug- 
ary smells of fresh confection. Marshall 
is the resident Cupid — and a rather 
unlikely arbiter of amorous offerings. 

He is 62. a balding man with bright, 
hazel eyes who has been married for 40 
years tthe same number of years he has 
been in the candy business). He wears 
starched white shins and a white lab- 
oratory coat with his name in script on 
the right side. 

It is Marshall's job to decide which 
new sayings should be printed on the 
candy hearts, and which should be re- 
tired. Some people might suppose this a 
weighty responsibility. After all. these 
red- lettered words — to be sold on 8 
billion Necco hearts this year — are pan 
of Americana and central to many a 
young, budding romance. 

But Marshall waves it all off with the 
toss of a hand. “This is fun," he said. 
“This is not brain surgery." 

Marshall's methods are as old-fash- 
ioned as his demeanor. Inspiration can 
come by random suggestion. A customer 
might send a letter, a plant worker offer 
an idea. 

“I hear something, I come across 
something and I write it down," Mar- 
shall said recently. “I talk to other 

"I got 'Awesome' from my grand- 
children," he went on. "When they talk, 
it's ’awesome' this, ‘awesome’ that. All 
the kids are saying that now." 

In this same casual way, “I Don’t 
Think So," “Hello" and "Excuse Me" 
made the cut for 1997. Marshall heard 
them in conversation, again and again. 
Someone told him one saying was a 
favorite on the “Seinfeld" show. 

Voila. New hearts. 

But with 125 sayings in all, the six 
new ODes Marshall is using this year 
represent but a small change in the lex- 
icon of love. The company is promoting 
the additions as a reflection of “the 
technology and hip skepticism of the late 

‘I got ‘"Awesome” from 
my grandchildren. When 
they talk, it’s “awesome” 
this, “awesome” that. 5 

'90s.” On store shelves, the hearts are 
packaged in boxes and bags labeled 
Sweethearts. Sweet Talk or Tiny Con- 
versation Hearts. 

Marshall is the first to admit that a 
message like “I Don’t Think So" is not 
likely to light the way for new love. But 
he added, “There’s enough gushy ones 
in there to satisfy anyone." 

Besides writing new words of love. 
Marshall must shelve old ones. 

Retired this year are “Buzz Off," 
"Stop," “Try Me.” “Bad Boy," "Hot 
Stuff" and "Say Yes.” 

Necco, a 150-year-old company 
known best for its colorful rolls of candy 
wafers, introduced its candy hearts in 
1902, and much of their sweet con- 
versation — "My Man," "Be Mine,” 
“Be Good" — has not changed since 
the early years. A child of 50 years ago 
who bestowed a hopeful “Be True" on a 
schoolyard crush could probably find 
the same message today. 

"Word that the company is thinking 
of modernizing its candy conversations 
and eliminating such favorites as ‘Dig 

Me,' ‘Crazy’ and ‘Wild One’ has sent a 
chill through the Valentine’s Day fest- 
ivities.” the editorial said. “What will 
be next — ‘Hot Stuff,' 'Neat’ and ‘Hug 

But Necco made its big move in 1 996 
anyway, creating the very popular "Fax 
Me" candy. It was, yes, Marshall’s 

"I thought last year’s ‘Fax Me’ was 
cute as all heck," said Domenic M. 
Antonellis, the president of Necco. 
"That one piece brought us untold num- 
bers of calls" from radio stations and 
cable and television shows. 

Heartened by the media interest. Mar- 
shall took the high-tech idea a few steps 
further with “Page Me" and “E-Mail 

"Why not?" he asked. 

Necco hearts have not always borne 
messages of high romance. Old stan- 
dards include "Good-Bye," “Cool," 
and “Cha-Cha.” The company will also 
do special orders, sometimes for cus- 
tomers interested in only the vaguest 
notions of love. 

One beneficiary was former President 
George Bush, whose Republican sup- 
porters ordered up messages like "Bush 
Now," "Bush '88" and "Bush No. 1" 
on almost 800,000 hearts the year Bush 
won the White House. "Our story is, ‘He 
didn't do it in '92 — that’s why he 
lost," ” Marshall said with a chuckle. 

Though he scoffs at the idea that he is 
a writer — and points out that pandering 
Valentine's Day messages amounts to 
about 2 percent of his job responsibilities 
— Marshall pays attention to language 
as he never has before. He even keeps a 
list of whai he rails "slanguage." 

"High postage," he offered as an 
example. “You know what that is? 
That's a conceited female." 

Not a good bet for any heart of the 
future, he said. 

His toughest call so far has been a 
decision on the phrase "Safe Sex." 

This is a delicate topic. He lowers his 
voice. "We don't want to be the one who 
says we condone sex," he confided. 
Young children buy the candy, he said. 

"It would be like writing ‘Clean 
Needles,' " he said. 

out of the news columns, 
Princess Diana was at the 
center of a political storm in 
Britain over her call during a 
visit to Angola for a world- 
wide ban cm anti-personnel 
landmines. One minister was 
reported to have said Diana 
was ill-advised to speak on a 
politically sensitive issue and 
appeared to be at odds with 
government policy. A prom- 
inent Conservative, Peter 
Viggers, who sits on Parlia- 
ment’s Defense Committee, 
said: “The parallel of nuclear 
weapons comes to mind. The 
other parallel that comes to 
my mind is Brigitte Bardot 
and cats. It doesn’t actually 
add much to the sum of human 
knowledge." The Conserva- 
tives want an international ban 
on mines, and Labour wants 
an immediate unilateral ban 
and destruction of Britain’s 
stockpile of mines. 


The fashion gadfly Mr. 
Blackwell has released his 
37th annual list of the worst- 
dressed women, and for 
the second year in a row 
a man figures on it, with the 
cross dressing basketball 
player Dennis Rodman win- 
ning top honors. Last year, 
the radio shock jock. 
Howard Stern, who also has 
a fondness for women's 
clothes, made the list Of 
Rodman, Mr. Blackwell said, 
“In fishnet and feathers, he's 
a unisex wreck.” The zest of 
the top 10: 2. Glenn Close; 3. 
Lisa Kudrow; 4. Helen 
Hunt; 5. Goldie Hawn and 
Diane Keaton tied; 6. Sarah 
Ferguson, Duchess of York; 
7. Elizabeth Shue; 8. Drew 
Barrymore; 9. Claire 
Danes; 10. Lori Petty. 

The 1997 Polar Music 
Prize has been awarded to the 
American rock star Bruce 

Springsteen and the Swedish 
choir leader Eric Ericson, 
Sweden’s Royal Academy of 
Music announced. 


Jean-Kerre Angremy, a 
diplomat, high-ranking civil 
servant and author of more 
than 50 books, has been 
named to take over France's 
new national library. Better 
known by his pen name, 
Pierre- Jean Remy, he takes 
over from Jean Favier, who 
has retired. The new library, 
with four tall towers, opened 
last month. 


India’s most eligible young 

woman, Priyanka Gandhi, 
is in tile news prior to her 

already married the scion of 
the Nehru-Gandhi political 
dynasty. Gandhi, 26, who 
boasts three former prime 
ministers in her father, grand- 
mother and great-grandfath- 
er, was scheduled to appear in 
a New Delhi court to answer 
charges that she had married 
Vicharapu Ramkrishna 
Gowd in 1991. Sources close 
to the family said she would 
not appear personally in 
court Earlier, an incensed 
family issued a statement: 
“These allegations made 
in the court are absolutely 

without any basis and bave 
been made with malicious in- 
tent.” News reports on Wed- 
nesday said GowcL 41, a vil- 
lager from southern India, 
who was jailed for five 
months in 1982 for molesting 
a doctor, had made similar 
claims before. 

' □ 

President Vaclav Havel's 
actress wife Dagmar, 43, is 
quitting the theater next 
month. Her intention to stop 
acting was expected. “I will 
now play a different role, 
even more difficult because it 
cannot be rehearsed," she 
said. “I’ll try to play it the 
best way I ran.” 


Hillary Clinton has 
chosen the New York cou- 
turier Oscar de fa Renta to 
create her wardrobe for the 
Jan. 20 presidential inaugur- 
ation. the designer’s office 
said. Tipper Gore, wife of 
the vice jpresi dent, picked an- 
other New York designer, 
Jennifer George, for her in- 
augural duds, including a> 
floor-length opera coat of 
garnet velvet arid black satin! 
embroidered with gold stars 
and the names at the 50 
American states. 


Johnny Hally day, 

France’s beloved 5 3 -year- 
old, motorcycle-riding rock 
star, has denied a report that 
he wants to become an Amer- 
ican. An article in USA 
Today quoted Hallyd ay as 
saying the French were 
“rude” and he wanted to 
“become an American ciK, 
izen.” But HaDyday, who^ 
recent Las Vegas concert; 
drew 6,000 Cans from France 
but few Americans, denied 
any desire to chop his French; 
citizenship. “I never said it,”, 
be told the dail y France- 

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