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The World’s Daily Newspaper 


R London, Tuesday, Joly 1, 1997 


In a Former Colony, the Dawn Is Red 


Big Change 
Is Coming 
- To Whom 
And How? 


Nostalgia, Patriotism 
And Tough New Laws 
As Britain Ends Its Rule 

■r?'-- ft 
vi t ; 

; By Nicholas D. Kristof 

■ New York Tmes-Servke 

. HONG KONG — As dawn rises for 
the first time over red Chinese: flags 
officially fluttering here in a capitalist 
breeze, the most fascinating question is 
not how China will change Hong Kong 
but how Hong Kong will change China 
— and the world. . 

At stake is the fate of not just (he 6 
million people who live here, but more 
importantly the 1.2 billion neighbors 
next door in China, plus the 20 million 
who live in Taiwan and the hundreds of 


millions more who live elsewhere in the 
neighborhood. To an enormous extent, 
many of the critical issues of the 21st 
century will depend in part on bow 
events unfold in this peculiar crossroads 
of scones and dim sum. 

Whether the United States and China 
are headed for partnership or conflict, 
whether Taiwan will eventually become 
independent or return to China's em- 
brace, whether China will grow strong 
and democratic or. collapse in chaos — 
all these will be determined in part by 
what happens in Hong Kong. 

The central question is whether Hong 
Kong ^amounts to . a colossal Trojan 
horse: a prize so glorious that China’s 
Communist Party cannot leave it out- 
side the gates, but which, once inside, 
will destroy those in power. - 
Looking at the way Hong Kong and 
China have influenced each other over 
the last dozen years, one could easily 
conclude that the hand-wringing over 
Hong Kong's future is misplaced. No 
L one has ever made money betting 
^against Hong Kong, though lots have 
girded, and perhaps it is the Chinese Com- 
5 "munis I Party leaders who should 
tremble about whether their style of life 
and leadership can long survive. 

“I- think the democratic struggle of 
people here in Hong Kong for freedom 
and human rights will influence 
China," roused Han Dongfaog, a 
Chinese labor leader who was im- 
prisoned and tortured in Beijing and is 
now in exile in Hong Kong. “The Hong 
Kong handover will push the system in 
China and make the change go forward 

Mr. Has and others suggest that many 
mainland Chinese will be annoyed and 
frustrated that their follow Chinese cit- 
izens in Hong Kong have (he right to. 
criticize the party, to demonstrate, to 
foam independent unions, while they 
themselves have none of these rights. 
Mr. Han, for his part, thinks this gap will ] 
sow discontent throughout China. 

"Chinese workers will think that ] 
‘one country, two systems’ means ‘one i 
country, two classes.of citizens,’ ” Mr. i 
Han said. “I think this will have a big 
impact." i 

The notion that tiny Hong .Kong j 
could reshape China is conceivable only 
because Hong Kong arguably always- < 

See STAKES, Page 6 

By Edward A. Gargan 

New- York Times Service 

HONG KONG — China resumed 
sovereignty over Hong Kong a moment 
after midnight Tuesday, sovereignty 
wrested from a decrepit Qing dynasty 
156 years ago by a Britain intent on 
selling opium to the Chinese. 

To the brassy martial chords of 
China's national anthem, Lhe March of 
the Volunteers, China's flag, a red ban- 
ner with five gold stars, was raised 
solemnly, along with die new flag of 
Hong Kong, a stylized white bauhinia 
flower on a field of red. Just seconds 
before, as God Save the Queen swelled 
in the exhibition hall, British soldiers 
lowered the Union Jack for the last time 
in Hong Kong. 

“This is both a festival for the 
Chinese nation and a victory for the 
universal cause of peace and justice," 
declared Resident Jiang Zemin. “The 
return of Hong Kong to the motherland 

kiwhiMi MnAitu/linir* 1 Kranr^l'n^ 

A soldier of the People's Liberation Army raising the Chinese flag Tuesday, signaling the end of British rule. 

New Rulers Will Put Business First 

demonstrators that democracy would 
return to Hong Kong. 

British rule ended in a ceremony aus- 
tere and precise, a ceremony whose 
details exhausted the negotiating skills 
of both sides. On a simple dais inside a 
just completed convention center, two 
pairs of flagpoles, one flying the Union 
Jack and the British Hong Kong flag, the 
other bare, stood before chairs for Res- 
ident Jiang's party and those accom- 
panying Prince Charles. 

Prince Charles spoke briefly. “The 
United Kingdom," he declared, "has 
been proud and privileged to have had 
responsibility for the people of Hong 
Kong, to have provided a framework of 
opportunity in which Hong Kong has so 
conspicuously succeeded and to have 
been part of the success which the 
people of Hong Kong have made of 
their opportunities." 

“God Save the Queen" was played 
by a band of Scots Guards in tall. 

See HONG KONG, Page 6 

Tung’s Model Seems 
To Be Singapore 

By. Keith B. Ricbbuig 

Washington Past Service 

HONG KONG — The new Chinese 
leadership that took over this most af- 
fluent of Chinese societies on Tuesday 
is a results-oriented group — more con- 
servative, for wealthier and less partisan 
than much of the local population — 
and it is likely to bring a business- 
oriented approach to urban problem- 
solving while playing down any need 
for accelerating Hong Kong’s demo- 
cratic development ' 

At the head of the new leadership 
team is Hong Kong's first chief ex- 
ecutive. Tung Chee-hwa, a shipping ty- 
coon bom in Shanghai. He has outlined 
a vision for Hong Kong that closely 
resembles the island city-state of Singa- 
pore — a place where political debate is 
muled, wberp government is author- 
itarian and paternalistic but efficient, 
and where people's lives are improved 
through good schools and affordable 

Mr. Tong, 60, has surrounded himself 
with a coterie of mostly young, 40- 
something advisers— his “kitchen cab- 
inet" — drawn largely from the cor- 
porate and financial world and with 
little or no experience in Hong Kong’s 
past political debates. This group, un- 
abashedly pro-China, professes faith in 
market forces. 

But many of them talk ambitiously of 
making Hong Kong’s traditional lais- 
sez-faire government far more activist. 
They talk, too, of retooling the local 
economy along high-tech lines and po- 

See LEADERS, Page 8 

MUkt FUtVThr AwKntoJ Prc*. 

Chris Batten, the former governor, with Prince Charles after delivering 
his farewell speech Monday to a gathering at Tamar, the Royal Navy base. 

Night of celebration and fear for the 
future. • China ignores Albright’s 
plea for a top dissident. Page 6. 
Joy in Beijing •Troops pour in on a 
‘sacred mission.* Page 7. 

after going through a century of vi- 
cissitudes indicates that from now on, 
the Hong Kong compatriots have be- 
come true masters of this Chinese land 
and that Hong Kong has now entered a 
new era of development." 

Shortly afterward, Tung Chee-hwa, a 
60-year-old shipping tycoon, was sworn 
in as Hong Kong's first chief executive 
under Chinese rule. For Hong Kong's 
people, though, the languages pronoun- 
cing their fate were those of alien 
powers, English spoken by the British 
and the Mandarin dialect of northern 
China by Mr. Jiang. 

As the pendulum of history swung 
over Hong Kong, change swept with 
suddenness through the territory. For 
the first time in this century, a free 
people and a thriving capitalist econ- 
omy has been subsumed by a com- 
munist power. Its elected legislature 
was disbanded and a broad range of civil 
liberties were suddenly subject to sharp 
restrictions under laws that had been 
passed by a Beijing-appointed body that 
has been meeting for months across the 

Change came in small ways, too. 
Across Hong Kong, police officers, fire 
fighters and all the uniformed services 
unpinned their colonial insignia and re- 
placed them with the new symbols of 
Hong Kong. The British coat of amis 
was removed from the main govern- 
ment building at midnight and the royal 
emblem pried from the Rolls Royce that 
used to feny the British governor 

Against the surge of patriotic sen- 
timent, and wisps of nostalgia for the 
departed British, there were protests 
from pro-democracy figures who had 
been expelled from the legislature with 
the advent of Chinese rule. 

From the balcony of the Legislative 
Council building, Martin Lee, the leader 
of the pro-democracy forces in the dis- 
banded elected body, told thousands of 

Protesters Test 
China’s Pledge 
On Freedoms 
With Marches 

By Velisarios Kattoulas 

International Herald Tnhune 

HONG KONG — Defying Beijing 
even as it celebrated its resumption of 
sovereignty over Hong Kong, the demo- 
cratic activist Martin Lee, vowing to 
remain the “voice of Hong Kong," 
called on the new rulers to scrap the 
Beijing-appointed legislature. 

In a half-dozen protests, nearly 1,000 
demonstrators marched through the 
rain-soaked streets of Hong Kong. 

The demonstrations marked the first 
test of whether China's authoritarian 
leaders would stick to agreements with 
Britain to preserve Hong Kong's 
freedoms for the next 50 years. Such 
demonstrations have triggered violent 
government crackdowns in mainland 
China in the past 

Under new Hong Kong law, demon- 
strations require advance approval, but 
the police have said they only expect to 
enforce “the old laws" in the early 
hours of Tuesday. 

A dozen members of the April 5th 
Action Group, a small radical anti- 
Beijing group, scuffled with the police 
and pro-China activists as they marched 
toward the venue where Hong Kong's 
formal handover took place at midnight. 
A separate radical group also protested 
outside the conference center where the 
handover took place. 

A group of 10 Taiwanese legislators 
accused China of using the historic 
handover to speed up reunification with 

See PROTESTS, Page 6 

Socialist Opposition Wins in Albania 

The Dollar 

' 1 :,&y StepheifKinzer 

Yurt TimejSfrvice 

ISTANBUL — Mesa! Yilmaz was 
named page minister do Monday after 
fonning V government that he said 
would put a' definitive end to the awn- 
tiy ’s yeatfoog experiment with Islamic 

. Mr. Yifinazpreseatedalist of cabinet 
ministers to President Suleyman De* 

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mirel, who approved 4 1 , and later moved 
into foe prime minister’s office to begin 
his first day of work. 

"Our government will meticulously 
guard the basic principles, of the re- 
public,” Mr/ Yilmaz said after taking 
over. “It will be a government that 
.raises the profile of civilian, democratic 
’ and freedmvloving values.” 

The new government must be con- 
firmed by Parliament, but that appeared 
to be little more than a formality since 
Mr. Yilmaz has won the support of a 
broad range of party leaders. Parliament 
is expected to vote within two weeks. 
His government will probably ~~ : ' 

itaiy commandos, who applied heavy 
pressure to force the Islamic leader Nec- 
mettiri Erbakan from the prime minister's 
job in June. The military charged that Mr. 
Eifrakan was undermining secular de- 

la the. 10 days of consultations that 
led to Monday’s announcement, Mr. 
Yilmarinet with leaders of all the major 

See TURKEY, Page 8 






Monday 8 4.P.M. 
- 5.8802 

Monday dost 












President Sali Berisha acknowl- 
edged defeat Monday in legislative 
elections, and he made a vow to ac- 
cept the results and work to 
strengthen democracy in the troubled 
country. He gave no immediate in- 
dication of preparation to resign. But 
the head of the victorious Socialists 
demanded an early resignation. Al- 
bania has been tom by rioting, hunger 
and gun battles for several months 
since a financial investment scam that 
took tbe life savings of tens of thou- 
sands of people throughout the long- 
isolated Balkan nation. Page 5. 

A Clue in Space Accident 

The Russian Supply Craft Whs Overloaded 

U.S. Arrests Russians in Weapon Sales 


Mars Mission Nears Touchdmen 


Pornographic ? The Tut Drum ? 

Books- — Page 4. 

Crossword ....... — Page J4. 

Opinion - Pages 10-11. 

Sports Pages 22-23. 

The 1HT on-line http;//mv' 

MIAMI (Reuters) — U,S. Customs 
agents in Miami have arrested two 
suspected Russian mobsters on 
charges related ro foe sale of nuclear 
weapons and missiles, a spokesman 
for foe Customs Office said Monday. 

He said the Customs officers had 
been negotiating with the suspects 
since 1995 and that the. charges in- 
volved' nuclear weapons, surface-to- 
air missiles and shoulder-launched 

By David Hoffman 

Washington Past Service 

MOSCOW — The unmanned cargo 
ship that rammed the Mir space station 
last week was overloaded, a possible 
factor leading to the accident curing a 
docking maneuver, according to an In- 
terfax report Monday and a Western 

But a top Russian space flight of- 
ficial Viktor Blagov, said he believed 
tbe excess weight was not responsible 
for the accident, foe worst ever aboard 
foe 1 1 -year-old Mir. 

The Progress M-34 cargo vessel was 
being moved into position for a practice 
docking last Wednesday when it sud- 
denly accelerated toward foe Mir, punc- 
tured-foe research module and hit a solar 

The accident rendered inoperative foe 
Spektr research module, as well us 
draining foe Mir of 30 percent to 40 
percent of its electrical power, which 
came from batteries in foe Spektr. 

During foe clocking, mission control 
officials have said foe Progress ap- 
proached the Mir at five times foe nor- 
mal speed. 

The reason why the cargo ship went 
out of control is being investigated both 
by a Russian committee of experts and 
by foe U.S. National Aeronautics and 
Space Administration, and no official 
statements have been made about the 
possible cause of foe accident. 

An American astronaut, Michael 
FoaJe, and two Russian cosmonauts are 
aboard the Mir. the world's longest- 
flying inhabited space station. 

The cargo ship was being manipu- 
lated at foe time by foe Mir commander, 
Vasili Tsibliyev. who was using a re- 
latively new, manual system to bring the 
Progress closer to the docking poinL 

The new system gave him a televised 
view to guide the cargo vessel toward 
Mir. He has said he could nor brake foe 
cargo vessel when it lurched toward foe 

The new manual docking system is 
designed to replace an automated radio 
docking system foal has been in use for 
15 years. 

More than 40 Progress and Progress- 
M freighters have delivered more than 
100 tons of food, fuel and supplies to 



First. Trip on Planet’s Surface / Seeking Ike Nature el Life 

Robot to Roll for Rocks on Mars 

P ASADENA, California — Brian 
Cooper has been rehearsing for an out- 
ing on Mars. The young scientist of foe 
National Aeronautics and Space Ad- 
ministration is the designated driver of a robot 
rover that could be the first ever to roll on die 
surface of the red planet and go exploring. 

By week, if all goes weLL, he mil be in 
a darkened control room at NASA's Jet 
Propulsion Laboratory here wearing his 3-D 
goggles, looking at stereo images of the Mar- 
tian landscape. He will be sending commands 
across 1 19 million miles (191 million kilo- 
meters) to a free-range robot that resembles a 
large roller skate, sending it across the rust- 
colored alien dust in search of interesting 

But first, it has to land. 

On Friday, NASA’s Pathfinder spacecraft, 
with the rover on board, is to demonstrate an 
innovative approach to invading a planet After 
a 309-mill ion-mile trip and a fiery entry into 
the upper atmosphere of Mars at about 1 P.M. 
eastern daylight time, screaming in at 16.600 
miles an hour. Pathfinder is to release a large, 
billowing parachute to slow its descent, then 
jettison its protective beat shield. A giant co- 
coon of industrial-strength air bags is to inflate 
just eight seconds before impact to envelop the 
craft and cushion its impact. 

At an altitude of about 1 00 feet (30 meters), 
braking rockets are to fire and slow the craft 
almost to a halt. It will then free-fall until it hits 
the ground at no more than 55 miles ah hour. At 
impact, engineers expect the spacecraft — 
resembling a beach ball — to bounce for 
several minutes, possibly as high as a 1 0-sloiy 
building, before it comes to rest. 

“This is a new way of landing a spacecraft 
on a planet," said Brian Muiriiead. the 
Pathfinder flight system manager at the Jet 
Propulsion Laboratory. “Ir’s the fust time a 
U.S. mission will use air bags to absorb the 
shock of landing.*’ 

Assuming the craft survives this “demon- 

By Kathy Sawyer 

Washington Post Service 

station " its first job is to deflate the air bags 
and open up, its landing petals unfolding like a 

Then there will be an agonizing wait of 
nearly three hours for controllers back on Earth 
until the sun rises over the lauding site, an 
ancient flood channel known as Ares Vallis. 
After switching from battery to solar power, 
the spacecraft will use its low-gain antenna to 
transmit critical data on its state. 

That signal should arrive at Earth just after 5 
P.M. eastern daylight time. (The travel time for 
the transmission will be just over 10 

By that time, Mr. Muirhead said, “we’ll 
have the critical data that we need to determine 
whether we have a basically healthy spacecraft 

Z _ .Mwwwaraw*** 1 * 1*2 AAArl Annriifinn rtT U/Kpfhw WP 'll 

month, transmitting data on the Martian tem- 
perature, atmospheric pressure and winds.. 

Mr. Cooper says he has faith in the rover. He 
has been working with other Rocky robots in a 
mock-up of Mars called the Sandbox. He is 
learning, he said, “the nuances of how to talk 
Rocky's language.** 

T HE Pathfinder mission is not intended 
to settle the question of whether there 
is life on Mars. But the scientists ex- 
pect it to provide the first in-depth 
portrait of the diversity of Martian rocks over a 
large area. The site was selected because it is 
relatively safe for landing and, scientists be- 
lieve, contains a wide variety of rocks washed 
into it during an ancient catastrophic flood. 

Launched Dec. 4, the $267.5 million Path- 
finder mission — along with the Mars Global 
Surveyor craft now en route to Mars — marks 
the beginning of what planetary scientists hope 
is a new era m Mars exploration. 

Pathfinder’s findings should help engineers 

in reasonably good condition or whether we’ll 
need to start thinking about contingency op- 

erations. Frankly, we'll be very surprised if 

everything goes just right." 

An onboard camera known as the IMP (Im- 
ager for Mars Pathfinder) is to send back 
periodic images of the spacecraft and nearby 
terrain, with the first images arriving on Earth 
about 7: 1 3 P.M. 

Sometime during the first three days, de- 
pending on circumstances, the flight team will 
transmit commands for the lander to unfurl 
ramps for the rover. 

If conditions look safe, the team will com- 


\ • /\ 

■ \ ft \ / % 

: \T 

Tin- Vmhingfun ISM < 

mand the rover, whose nickname is Rocky, to 
“stand ud" and proceed down one of the 

“stand up" and proceed down one of the 
ramps, equipped with a tool kit of miniature 
instruments that can study the composition of 
rocks, take close-up snapshots and send all that 
information back to Earth. 

“Starting with the lander camera stereo 
images," Mr. Cooper said, “we’ll use special 
goggles to view the terrain in three dimensions 
and look for safe paths to travel along in order 
for the rover to reach specific rocks and regions 

every two years if Congress and the White 
House provide funding. 

The Global Surveyor, which will arrive at 
Mars in September, is designed to study the 
planet from orbit and recoup much of the 
research capacity lost when the Mars Observer 
failed in 1993 as it approached its destination. 

With the recent drama aboard the Russian 
Mir space station to remind the world of the 
risk and complexity of human space flight, 
officials noted that it would be decades — at 
least — before people tty to land on Mars. 

But exploring the Martian surface has be- 
come a critical concern of planetary explor- 
ation since a team made global headlines last 

The Pathfinder spacecraft, upper right, irith the raver aboard, trill land on S’ 
Mars in an innovative, bouncing approach, using a parachute and air bags. 

to conducr science and technology experi- 
ments. Once the path is decided, we will drive 
the rover using a set of software instructions 
that will be uplinked to the rover each day." 

August with the claim, since hotly disputed, 
that Allan Hills 94001, one of several Martian 

The rover's explorations are scheduled to go 
on for a week. The lander will operate for a 

that Allan Hills 94001, one of several Martian 
meteorites found on Earth, contains compel- 
ling evidence that primitive organisms might 
have lived on Mars billions of years ago. 

At the heart of the Mars rock controversy is 
whether the first known alien life has been 
discovered. And that is increasingly inter- 

twined with scientists' wider struggle to un- 
derstand die fundamental nature oflife — on 
Earth or wherever it may exist — and how it 
can originate out of lifeless matter. 

Ares Vallis, the landing site, is a basin where 
waters once flowed out of a heavily cratered 
terrain “that dates back to early Martian his- 
tory, s imilar in. ago to the meteorite," said 
Matthew Gokunbek, Pathfinder project sci- 
entist “By .examining rocks in this region. 
Pathfinder should tell scientists about the early 
environment on Mars, which is imp ortant in 
evaluating the possibility that life could have 
begun there." 

The Mars rock controversy has helped shift 
the search for extraterrestrial life into the sci- 
entific mainstream. And it has made at least 

one thing alarmingly dear according to lead- 
ing combatants on all sides: Using current 
techniques, scientists might not recognize a 
Martian microbe. 

The debate has served as “a wake-up call to 
the scientific community," said David McKay 

of NASA’s Johnson Space Center in Houston 
and the leader of the team that reported on the ! 
microbe evidence in the Martian rock. 

‘'We talk abour this great grab-bag potpourri 
of rocks we want to collect,” said Laurie 
Leshin, a University of California at Los , 
Angeles geochemist who has been studying 
Martian meteorites since 1989 and is a critic of 
the McKay team's claims. “But we’ve never 
seen them. We’ve never had mobility on the ! 
Martian surface before." 

Levy Threatens 
To Leave the 
Israeli Cabinet 


! JERUSALEM — Foreign Minister 
Pavid Levy said Monday that he would 
decide soon whether to resign in protest 
at Prime Minister Benjamin Netan- 
yahu’s way of running the govem- 

. “I am considering my actions and 
weighing if there is truly a possibility 
' that these things will be rectified, that 
the government will be able to operate, 
that it will stick to the peace process," 
he said at a news conference. “After 
considering ail these things in the com- 
ing days I will decide on my next moves, 
on my continuing membership in the 

- In a scathing attack on the prime 
minister, Mr. Levy, 58, said that Middle 
jEast peacemaking was stuck and social 
issues had gone, unresolved because of 
■poor governance. 

He complained he had not been con- 

2 Belgian Solidiers Acquitted 
Of Torturing a Somali Boy 

M.tuh'in Kahana/Af-mr ft n rr-l*iw 

Foreign Minister Levy at his news conference in Jerusalem on Monday. 

suited either about Mr. Netanyahu’s 
plans to reshuffle die government last 
week or about a secret meeting that a 
cabinet minister, Ariel Sharon, had with 
Mahmoud Abbas, a Palestinian official 
close to the Palestinian Authority chief, 
Yasser ArafaL 

Chirac Sees Arafat in Paris 

President Jacques Chirac of France 
met Mr. Arafat on Monday and warned 
that deadlock in the Middle East peace 

process could lead to guerrilla violence, 
Reuters reported from Paris. 

The Associated Press 

BRUSSELS — Two paratroopers, 
accused of torturing a Somali boy by 
stretching him over an open fire in 1993 
during a United Nations peacekeeping 
mission were acquitted Monday by a 
military court 

The court found that Claude Baert 
and Kurt Coelus did not engage in tor- 
ture but in a playful game meant .to 
discourage .the child from stealing. The 
two privates also were cleared of 
charges of assault and battery and of 
threatening behavior. 

“The court considered there was no 
evidence that the attack was meant to 
hurt the child," the prosecutor, Luc 
Walleyn, said to reporters. He said die 
court considered that they had engaged 
in “a form of playing without vio- 

The prosecution had sought a month- 
long jail term for both soldiers, who 
were among the United Nations peace- 
keepers from 21 countries sent to 

Somalia in “Operation Restore Hope." 

The 1993-1995 mission was intended 
to protect and feed Somalis caught in the 
anarchy of civil war. Bnt the mission has 
prompted reports that sane peacekeep- 
ers brutalized the civilians they were 
sent to help. 

The verdict Monday raised questions 
about how successful prosecutors might 
be in securing guilty verdicts in other 
cases involving Belgian peacekeepers 
accused of misconduct 

In the coming months, the military 
court is scheduled to hear charges that a 
paratrooper force-fed a Somali boy park 
and saltwater until he vomited and that 
another boy, accused of stealing, was 
kept in a closed metal container for two 
days, where he died. 

In another case, a Belgian soldier is 
accused of urinating in the face of a 

Mr. Baert has since left the armed 
forces; Mr. Coelus has been transferred 
to tiie Belgian Navy. 


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BA Ground Staff Votes to Strike 


Forecast tor Wednesday through Friday, as provided by AccuWeathar. 

LONDON (AFP) — British Airways ground staff voted to 
strike Monday, raising the threat of two-pronged industrial 
action this summer that could cripple the carrier's services, 
union leaders announced. 

The 9,000 British Airways ground staff voted by 2 to 1 in 
favor of the strike, in protest at the airline’s plans to sell off its 
catering division, the Transport and General Workers’ Union 

Last week, British Airways in-flight attendants belonging 
to the British Airline Stewards and Stewardesses Association 
voted overwhelmingly to strike over pay. The Transport and 
General Workers Union is expected to decide this week on 
coordinated action for the ground staff and cabin crews, to take 
the form of 24- or 48-hour strikes or other forms of dis- 

Copenhagen 27/80 

OoM Dal Sal 24/73 

OaM Dal Sal 24/73 

DuHn 13/56 

Wnbugh IMS 

Romm 24/75 

RranMun 2 We 

Austria Set to Lift Border Controls 

bamM 3VB8 

now sans 

Las Patau 24/79 

UtMn 19*8 

London 17*2 

MkM zneo 

UWbrea 19*8 

Man 24/79 

VIENNA! Reuters) — Austria is ready to lift its border 
controls and join the Schengen group of seven European 
Union countries by the end of this year. Interior Minister Karl 
Schloegl said Monday. 

“We are definitely ready for Schengen,” he said. “A delay 
until the year 2000 is out of the question.' ’ 

As soon as France ratified the treaty, Austria would im- 
plement the agreement in November or December, he said. 

But border controls with Germany will be lifted only step by 
step, not immediately, Mr. Schloegl said, adding that this was 
likely to continue until the end of 1998. Gemiany has re- 
peatedly voiced concern about Austria's ability to police its 
outer borders with Eastern Europe. 

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North America 
Warn and humid from the 
Mttwsut to the East Coast: 

gusty thunderstorms In the 
Midwest Wednesday will 

Midwest Wednesday will 
exit the East Coast Pndey. 
Cooler, drier weather will 
foUaw on the heels of the 
storms. Hot and dry from 
the Southwest to the 
southern Plains. Turning 

asnw In the NortwesL 


Very warm end dry from 
Ukraine to Belarus and 
western Russia, but strong 
thunderstorms w* end th8 

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end cool weather with 

end cool weather with 
ahowem end stooder rains 
wIB continue across Eng- 
land, France and Germany 
through Friday. Cool In 
Spain, but warm and dry In 

Western and northern 
China will be hot and dry 
through Friday, but gusty 
thunderstorms will rumble 
across northeastern China. 
Very warm In Bel] mg wttti 
the chance lar thunder- 
storms, while Tokyo wffl be 
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damage to roads during a beat wave, press reports said 
Monday. Daytime temperatures have been exceeding 30 
degrees centigrade (86 degrees Fahrenheit), The PAP news 
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trucks weighing more than 12 tons. 1 

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79 Oscar- Winner Stirs Oklahoma Tempest 

By Lois Romano 

\ Washington Post Service 

• TULSA, Oklahoma — For Bob An- 
'derson, it was nothing short of divine 
; providence that he was listening to a 
■Christian radio station when the talk- 
Ishow host began a lengthy diatribe 
.‘against the Oscar-winning German film 
•' “The Tin Drum.’ ' 

i "He said it could be judged por- 
; nographic, ” said Mr. Anderson, director 
•of Oklahomans for Children and Fam- 
- lilies, "and that’s all I needed to hear." 
=5 Within 72 hours. Mr. Anderson, 67, 
managed to get Oklahoma City Law. 

; enforcement authorities and a judge to 
; agree that the 1979 anti-Nazi film con- 
■sidered high art for nearly two decades 
| violated state obscenity laws and was in 
;fact contraband 

I The result was a bizarre police raid on 
I video stores and private homes last 

Aid Programs 
Aim to Help 
Poor Get Work 

By Jason Deparle 

i Nr* 1 York Times Service 

j WASHINGTON — The 62-year-old 
■U.S. welfare system, condemned last 

S ' by federal law, will formally die 
lay. giving rise to a decentralized 
•system or programs that can be sum- 
Imarized in a word: work. 

; States are demanding that recipients 
•find work, faster, keep it longer and 
.'perforin it as a condition of aid. Re- 
cipients who break the ride* are facing 
'penalties of unprecedented’ severity. 

But the hard edge also has a softer 
■side. Operating on the assumption that 
I work requires support many states are 
; investing in work-relared services. 

,yt - Near-record increases for child care 
head the list but states are also spending 
jHore on transportation, job placement 
•and programs mat let working recipients 
Ikeep more of their benefits even while 
learning paychecks. 

! The result is a system that is evolving 
jfrom a national safety net into a series of 
•stale trampolines. These are considered 
Ito be better equipped to lift the needy 
| into the job market, but much less cer- 
■tain to catch them — or their children — 
.'during the inevitable slips and falls. 

; The interesting development is what 
•has not taken place. Critics of a state- 
! driven system have worried about a 
;"race to the bottom," in which scrapped 
1 stare, governments cut eligibility and 
.‘benefits to drive the poor away. While 
■that remains a concern should the econ- 

' A Some' people predicted ' it’d Be a 
|disaster," $aid Donna Shalala, the sec- 
retary of health and human services. 
'"Bat I see governors taking the extra 
•money thgrve been given and using at 
I least some of it to provide resources to 
jbetopeopte work.' ; 

r ■ The new system witi provide states 
1 >ithabout $2 bdliombore this year than 
‘ . ;tfiey otherwise would have had, accord- 
to a rough estimate by the House 
;Ways and Means Committee. The rea- 
•son is that Washington now sends the 
Estates fixed payments based on the wel- 
fare population of .earlier years, even 
though the rolls azephunmeting. 

The government is also giving states 
an additional $600 million this year for 
.child care. Added together, the new 
federal money represents an increase of 
about 16 percent, or an additional $650 
for every family in the program. 

week, which has created a run on the 
critically acclaimed film and setoff a 
continuing furor and media frenzy that 
even has the state judge distancing him- 
self from the episode. 

“It was just an advisory opinion,'’ 
explained the besieged Oklahoma 
County district judge, Richard Free- 
man. who said the police asked him to 
confirm that a scene of a young boy 
engaging in oral sex with a teenage girl 
violated the state's obscenity statute. 
Set in wartime Germany, the story is an 
allegorical tale of a young boy named 
Oskar who — faced with Nazi horrors 
— literally refuses to grow up. 

“There is no force of law behind it," 
Judge Freeman added. "I wasn’t out to 
set any precedents here.” 

But last week, plainclothes police of- 
ficers acted on Judge Freeman s opinion 
and seized copies of the movie from six 
Oklahoma City video- rental outlets, and 

went so far as to knock on the doors of at 
least two Blockbuster customers to con- 
fiscate their copies. 

One of the customers happened to be 
an American Civil Liberties Union of- 
ficial who rented the film because he had 
heard that Mr. Anderson’s group — a 
conservative organization that targets 
pornography — had the film in its sights, 
Michael Cornfield, director of devel- 
opment for the state chapter of the Amer- 
ican Civil Liberties Union, said Block- 
buster gave his name to three police 
officers, who showed up at his home and 
asked for the film. Mr. Camfield gave it 
to them and immediately filed a com- 
plaint with the civil-rights organization. 

Since then, said Joann Bell, executive 
director of the American Civil Liberties 
Union of Oklahoma, the organization 
has been inundated with messages of 
support from around the United States 
and calls from reporters from Germany. 

Over the weekend, “The Tin Drum's’ 
director, Volker SchJoodorff , weighed in 
with a humorous statement faxed to the 
Tulsa World. He suggested that the po- 
lice might also want to round up the 
Gunter Grass novel, from which the film 
was adapted, “in all public libraries as 
well as in all private homes worldwide. A 
few million copies, I guess." 

While legal experts agree chat the 
film conk! violate state pornography 
statues, they also say the parties acted 

Lawyers and officials for the civil 
rights group have met to discuss their 
options, including filing suit on grounds 
that the police and video store may have 
violated the federally protected privacy 
rights of the store’s patrons. In addition, 
there is a question of whether a U.S. 
Supreme Court Fust Amendment de- 
cision — which says that artistic merit 
should be considered when defining ob- 

\>>fc t’nrM l'«iiin— 

David Beiutent playing Oskar, the main character of “The Tin Drum.*’ ; 

scenity — could affect the interpretation 
of state law. 

“No one disputes that child porno- 
graphy is evil, but we cannot turn our 
cultural decisions over to people who 



' • v> 4 ; 3 r f . i 

" ■> 

■f. ■*. 

Vi* Gm'lWThe Awociacd Pm 

END OF A BAN — Cubans outside the Roman Catholic cathedral in 
Havana cheering Cardinal Jaime Ortega at the first open-air Mass 
allowed in Cuba in 36 years. Pope John Paul II is to visit Cuba in 1998. 

_ __ remain covered on the pad at Cape 

Away From Canaveral, Florida. He said the 

STrr ' weather was not expected to improve 

Politics much until Thursday. (AP) 

Away From 

• T w6 bedple^ i»' risti'aM A\*oiMn, 
were killed and 12 people wert: 'ini' 
juretf during an 1 outing of :a of' 

mountaineering Stddentk * M ' 
versify Of Alaska in Anchorage. The 
students were descending a snowfield 
in the Chugach Mountains when they ' 
slid on a 60-degree slope into a field 
1,000 feet (300 meters) below. The 
accident occurred Sunday on Ptar- 
migan Peak, 16 miles (25 kilometers) 
southeast of Anchorage. ( AP) 

•NASA has only a 10 percent 
chance of launching the space 
shuttle Columbia on Tuesday after- 
noon, according to weathermen for 
the National Aeronautics and Space 
Administration. They said the launch- 
ing could be held up by thunder- 
storms. A shuttle weatherman said 
Monday that weather conditions 
could be severe on Tuesday and 
Wednesday, requiring Columbia to 

• » : 7-yeaf-old : bbj riding in a’cir 
with bis fathfcr, was shot and lolled. 
ajpparOTtJjr in a dhxte-'by shooting ont^ 
sSde V^fim-food- restaurant iif South- 
east Washington: The police said the 
gunman appeared to be firing directly 
at the car Sunday that carried Dennis 
Ashton Jr. But they said it was unclear 
whom he intended to shoot. (WP) 

• A diverse group of people took 

part in the 27th annual gay pride 
parade in San Francisco. The par- 
ticipants included grandmothers in 
sweat clothes, male cheerleaders in 
drag and politicians in suits. “One 
Community, Many Faces" was the 
theme on Sunday as about 500,000 
people marched down Market Street 
and lined the parade route, laughing, 
dancing and distributing condoms to 
celebrate their sexuality. There were 
similar festivities on Fifth Avenue in 
New York. (AP) 

In a Folksy Visit to Iowa, 
Gore Acts Like Candidate 

By Richard L. Berke 

• Nc*- York Times Service 

DES MOINES, Iowa — When Sen- 
ator A1 Gore ran in the Democratic 
presidential primaries in 1988, he never 
found his footing in this crucial early 
battleground. So he dismantled his flag- 
ging campaign here and condemned the 
early caucuses in “the small state of 
Iowa" as "madness.’ * 

But this weekend. Vice President AI 
Gore left no doubt of his political 

“I love Iowa," he assured voters. 
Recalling the 1989 film “Field of 
Dreams," Mr. Gore told the audience in 
the rural community of Prairie City. “Is 
this heaven? To which Kevin Costner 
replies, ‘No. it’s Iowa.’ ” 

And to fit in, Mr. Gore changed his 
outfit at least three times in one day — 
from the standard blue suit and red tie to 
open casual shirt and khakis and back 
again — depending on the audience. 

Despite his protestations about it be- 
ing “way too early.’’ Mr. Gore is run- 
ning for president. And be is running 
hard. As Mr. Gene’s 16-vehicle motor- 
cade snaked around this stale Saturday, 
the route looked like a road map of 
Democratic constituencies vital to com- 
batants in the caucuses here in the year 
2000 : unions, farmers, environmental- 
ists and Democratic organizers. He 
traded his White House-issue limousine 
for a Chevrolet Suburban sport vehicle. 

This was Mr. Gore’s first trip to Iowa 
since last year’s election, and his ag- 
gressive — and early — courtship un- 
derscores bow, unlike in 1988, the vice 
president views this state as crucial to 
his presidential ambitions. Mr. Gore's 
advisers also said they were preparing 
for a relentless competition with Rep- 
resentative Dick Gephardt of Missouri, 
the House minority leader, who is 
already mobilizing his operation in the 
state, and who won the caucuses here in 
1988. Mr. Gore placed dead last, with 
less titan 1 percent V, 

It did not matter that Mr. Gore has not 
overtly announced his run for president 
His carefully orchestrated appearances 
here, replete with American flags and 
picturesque backdrops for the cameras, 
had more the feel and content of partisan 
campaign events than White House 
courtesy visits. 

Sounding less buttoned-down than 
when he is in the capital. Mr. Gore 
liberally addressed audiences as 
“y’alL" And he referred repeatedly to 

the fruits of his administration's eco- 
nomic policies as helping ro bring about 
Iowa's “astonishing 3.3 percent unem- 
ployment rate.” 

At stop after stop, Mr. Gore buttered 
up one of his traveling companions. 
Representative Leonard Boswell of 
Iowa, telling audiences that the fresh- 
man was "fantastic’’ and “wonderful" 
— and off to one of the swiftest starts of 
any congressman in history. It was not 
that Mr. Gore was rewarding an old 
friend. That is the problem: Mr. Boswell 
is a longtime ally of Mr. Gephardt, and 
Mr. Gore wants to win him over. 

Mr. Boswell insisted that it was too 
soon to take sides. Reminded of his 
prediction that Mr. Gephardt could take 
the state, Mr. Boswell replied, “He's 
won here before." 

Not easily discouraged, Mr. Gore 
plunged into campaign overdrive Sat- 
urday. careful not to skip any important 
constituent groups: 

In Johnston, at the headquarters of 
Pioneer Hi-Bred, an agriculture research 
company, Mr. Gore trudged through 
com and soybean fields. He scored 
points with farmers by mentioning that 
as vice president he broke a tie in the 
Senate to preserve ethanol subsidies. 

In Praine City, at the dedication of the 
Neal Smith Prairie Learning Center at a 
wildlife refuge, Mr. Gore looked on 
with a smile as Mr. Smith, a former 
congressman, proclaimed him “a world 
leader in environmental affairs. ’ ’ 

And in Indianola. at a Democratic 
field training conference at Simpson 
College, Mr. Gore delivered a stump 
speech worthy of a candidate in the Tina) 
throes of a campaign. After thanking the 
audience for re-electing him and Pres- 
ident Bill Clinton, saying it was “really 
important, " the vice president implored 
the workers to look toward 1998 and 
beyond: “Fight and organize and re- 
gister people to vote! “ 

Mr. Gore was not defensive when 
asked at the taping of a public television 
program about the uproar over his fund- 
raising activities in the 1996 campaign. 

He got off one good quip when he 
recalled his fleeting campaign here in 
1988 to the audience at the state con- 
vention of the American Federation of 
Stale, County and Municipal Employ- 
ees in Des Moines: “It’s no secret that I 
ran for president in 1988, although it 
seemed like one at the time." 

Not this time around. Mr. Gore’s 
worst kept secret is his presidential cam- 
paign in Iowa. 

i would put a fig leaf in front of a 
Michelangelo statue," said Michael 
Salem, an attorney for the Oklahoma 
civil-rights group. Furthermore, Mr. 
Salem said, “it is a violation of federal 
Jaw to acquire the records of a customer 
at a video siore without a court order or 
a search warrant." 

Mr. Salem is referring to the 1988 
Video Privacy Protection Act, which pro- 
hibits anyone from obtaining or divul- 
ging information about customers with- 
out their explicit written permission. 

Jonathan Baskin, senior vice pres- 
ident for corporate communications at 
Blockbuster, said the video giant was 
investigating what happened at a par- 
ticular Oklahoma City store, one of 
6,000 across the United States. 

“It is a company policy never to give 
out names." said Mr. Baskin, who did 
not dispute that employees turned over 
the identities of the customers. “We take 
this very seriously. This is not only a legal 
issue for us — it’s a moral issue. The 
employees know the policy. We don't 
know yet what went on in the store." 

A Tulsa district attorney. Bill La- 
Fortune — alarmed by the situation in 
Oklahoma City — said he tried to rent a 
copy of die movie last Friday to make 
his own determination if it violated state 
pornography laws. He was told that the 
one copy owned by the public library 
had been checked out only eight times in 
the last 1 2 years — but now there was a 
waiting list of 10 people for iL He also 
could not locate a copy at any video 
store in the city, so he sent an inves- 
tigator to the district attorney's office in 
Oklahoma City — which, of course, had 
plenty of confiscated copies on hand. 

Mr. LaFortune, who has asked an 
assistant to view the film, said that if the 
video does depict a child under 18 in an 
explicit act. it could violate state law. 
But he said he would not be doing any 
roundups anytime soon. 

“We’re going to proceed very cau- 
tiously." the district attorney said, not- 
ing that he would have to consider Su- 
preme Court precedent on what 
constitutes art versus obscenity before 
taking any action. 

At issue, he said, are two landmark 
opinions: a 1973 ruling that said ob- 
scenity could be legally . defined as 
something that appealed to prurient in- 
terest in sex, and lacked ‘ ‘serious literary, 
artistic, political or scientific value." and 
a 1982 case that set a tighter standard for 
defining obscenity when it involved chil- 
dren engaged in sexual acts in films. 

Bob Anderson, meanwhile, feels a 
great sense of satisfaction. He said it all 
started when the religious broadcaster 
took up the cause of a Pennsylvania 
college student who was offended when 
a professor ask$d the class to view and 
critique the movie. As a volunteer for 
the nonprofit Oklahoma City-based 
group, Mr. Anderson said he spent 
much of his time aggressively pursuing 
what he viewed as sexually explicit ma- 
terials — particularly on die Internet. \ 
"Any child could have checked it out 
of the library," he said of the film. “Wb 
owe our children more protection than 
that." -• 


Setback for Campaign Reform 

WASHINGTON — The prospects for any campaign 
spending legislation have suffered another blow as House 

Republican leaders have persuaded their freshmen to stop 
cooperating with Democrats on a bill to prohibit “soft" 
• money, which is raised outside of federal limits on 
; amounts and sources of funds. 

: The leaders — inchidiiig Representatives Tom DeLay 
of Texas, the majority whip; John Linder of Georgia. 
_ chairman of the. National Republican Congressional 
Committee, and Bill Paxon of New York — said their 
.' party, would be hurt by curbing soft money unless political 
; efforts by unions^ere also curbed. 

Representative Bill Thomas of California, chairman of 
' ■ the House Oversight Committee, said he was disap- 
pointed. Mr. Thomas said he had hoped to use the 
freshman initiative as a* starting point to bring an in- 
r^i®Hehtil campaign MU to the House floor. (NYT) 


Senator Connie Mack of Florida, chairman of the 
Senate Republican Conference, on the compromise on the 
tax bill: “It was the first time in a long time that there was 
_ an effort to be truly bipartisan. Things were rejected in the 
past simply because they were offered by Republicans or 
Democrats. This is just not occurring here. People see an 
°PP9nwuiy to gel something done." (WP) 

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Russia to Offer Japan 
‘Concrete’ Kurils Plan 

Suspect in Beheading )' 4 

Tied to Other Attacks $ ? reSI e 

Agence France-Prase 

HONG KONG — Foreign Minister 
Yevgeni Primakov of Russia told For- 
eign Minister Yukihiko Ikeda of Japan 
on Monday that Moscow would offer 
concrete plans for jointly developing the 
disputed Kuril Islands. Japanese offi- 
cials said in Hong Kong. 

A Japanese Foreign Ministry spokes- 
man said die offer was made during 
talks between the two ministers ahead of 
ceremonies marking Hong Kong’s tran- 
sition at midnight Monday from British 
to Chinese rule. 

Mr. Primakov reiterat^^raria’s plan 
to develop the islands off the Japanese 
island of Hokkaido through joint eco- 
nomic activities. 

But Mr. Ikeda replied that Japan 
"cannot accept" such plans as they 
assume Russian sovereignty as a pre- 
condition for joint development activ- 

The Russian foreign minister replied 
that Moscow would develop “concrete 
proposals" for developing the disputed 
area, the spokesman said in Hong 

Known as the Northern Territories in 
Japan, the islands were occupied by 
Soviet troops in the closing days of 
World WarTL 

Failure to resolve the territorial dis- 
pute has prevented the two countries 
from signing a peace treaty. 

The spokesman said the two min- 
isters also discussed a proposal to set up 
a Japanese representative office in 
Yuzhno-Sakhalinsk, die main city on 
the Russian island of Sakhalin north of 

In addition, the two sides agreed to 

take steps to prevent recurrences of in- 
cidents such as one last week in which 
Russian vessels fired warning shots at. 
four Japanese fishing boats in Russian 
waters near the disputed islands. 

“The shooting last week is an in- 
cident that could under mine frte atmo- 
sphere of the bilateral dialogue,” Mr. 
licerfa was quoted by doe spokesman as 
having said. 

Mr. Primakov, speaking with NTV 
television in Moscow, said that the two 
sides had agreed "to make further pro- 
gress toward improving relations" by 
building on the rapprochement 
achieved at the Summit of the Eight in 
Denver two weeks ago. 

On the economic front, Mr. Primakov 
continued, "this means Japan should be 
making huge investments" in Sakhalin 
oil and gas projects "along with joint 
economic activities on- the Kuril Is- 

In one project, companies plan to 
develop offshore, reserves of 2.2 billion 

barrels of oil and 15 trillion cubic feet of 
gas. In the second, reserves are esti- 
mated at 1 billion barrels of oil and 13 
trillion cubic feet of gas. 

A Russian Foreign Ministry official, 
meanwhile, confirmed Chat President 

Boris Yeltsin would talk later this year 
with Prime Minister Ryu taro Hashuno- 
to of Japan, die Itar-Tass news agency 

In Denver, Mr. Hasbimoto proposed 
a meeting with Mr. Yeltsin in the Far 
East or Siberia for an informal weekend 
of talks “without neckties." 

Prime Minis ter Viktor Chernomyrdin 
of Russia will also pay his first official 
visit to Japan later this year, die ministry 
official said. 


By Sheryl WuDtnm 

New Ybri Times Service 



Ig gjgs** & 

S5 V3*m I 


TOKYO — As people throughout 
Japan pondered fire shocking news that 
a 14-year-old boy had been arrested for 
the slaying and beheading of an even 
younger boy, reports have linked the 
teenager to two previous attacks against 

Japanese news organizations report- 
ed Sunday, apparently on the basis of a 
confidential police briefing, that the ar- 
rested te enag er had confessed to at- 
tacking two girls, age 9 and 10, earlier 
this year. 

The 10-year-old died of stab wounds 
in the head, and die other girl was se- 
riously wounded. 

The police said Saturday that the sus- 
pect, who has not been identified be- 
cause of bis age, had confessed to the 
trilling last month of 1 1-year-old Jun 

Jim's bead was cut off and left early 
one morning on the front gate of a junior 
high school in the most gruesome slay- 
ing in Japan in memory. 

The 14-year-old suspect, a ninth 
grade student, was arrested Saturday 
and is being interrogated by the police. 

The authorities have said little about 
him., other than that Jun was a neighbor 
of his in Kobe, where the attacks oc- 

The killings of Jun and of the 10- 

gloomy.” ■ > • : . \:.;v 

Newspapers quoted ppUce sources ag »v- 
saying that they questioned fi* boy bern ; 
cause he was United, to file ihutilaoofls - -. 
and killings of cars and pigepns m th£», - , 
area. ‘ \ •’ ■ ■ 

He had assaulted a friend for telling 
other schoolmates about the cals, and 
the police thought there imgfrt be . 
connection to the aback on Juiti' , - s 

v.- - 

a.. -,is>!V4 

-I*#,; : 

Japanese Soothe 
Cnina on U.S. Poet 

HONG KONG — Japan has 
promised China that it will be more 

year-old girl, Ayaka Yamashita, finned 
concerns fiat me moral fabric of the 

United States, the Chinese Foreign ' Jt - 
Ministry said Monday . ; 

Foreign Minister Qian Qichen of * [T 
China and the Japanese foreign " 
minister, Yolrihiko Ikeda, talked in ’ - 
Hong Kong, where they are attend- ' " 
ing the ceremony marking the Brit- 
ish colony’s handover to China. 

Washington and Tokyo agreed to • 
widen potential military coopora- 7 
tion — a sensitive issue for China ■ 
because it suffered hugely under the '■ 
Japanese military occupation ofthe 
1930s and 1940s. (Reuters) 1 ’• 


ln* uI : -■ • 

F^.V* ..N-" - 


iw re ' a, ;-Ti 

Children being escorted to school Monday in Kobe, Japan, where a 14- 
year-old boy was arrested Saturday for the murder of another youth. 

2 North Korean Officials Defect to South 

Bombing Kills 8 
On Bus in Pakistan 


SEOUL — A North Korean energy 
official has defected to South Korea 
along with his wife, daughter and a 
colleague. Foreign Ministry officials in 
Seoul said Monday. 

The defectors were identified as Min 
Mon Sik, 48, an official at North 
Korea 1 s coal industry ministry, his wife, 
his 15-year-old daughter and Lee Song 
Ho, a translator at the ministry. 

Mr. Min and Mr. Lee were working 
on a joint energy venture in a country in 
the Commonwealth of Independent 
States when they sought defection to the 
South, another Foreign Ministry official 

No details woe given about when 

and how file defections lode place. 
North Korea has been suffering from 

an acute energy shortage, which has 
forced more than 70 percent the coun- 
try’s factories to stay idle, according to 
Seoul officials. 

Seoul government officials said fiat 
40 to 50 North Koreans bad defected 
annually since 1994. 

About 50 North Korean defectors 
have arrived in the South so fir this year, 
according to intelligence officials. 

■ North Approves Exhumations 

North Korea said Monday that start- 
ing in July it would conduct exhuma- 

tions of remains of U.S. soldiers missing 
in action dining die 1950-53 Korean 
War in a joint effort with the United 
States, Reuters reported from Tokyo. 

Pyongyang’s official Korean Central 
News Agency said bilateral talks on the 
exhumations took place in New York 
from June 25 to 27 based on an agree- 
ment reached in May. 

The three rounds of exhumations 
would take place in Unsan County of 
North Phyongan Province in July, 
September and October, the agency said 
in the report, which was monitored in 

There are 8, 1 00 U.S. troops still listed 
as missing in the Korean War. 


LAHORE, Pakistan — Eight 
people were killed and 21 were 
wounded when a bomb tore 
through a bus near the city of 
Sialkot in Punjab Province on Mon- 

concems fiat (he moral fabric of the 
young is beginning to fray. 

Prune Minister Ryutaro Hashimoto 
said Sunday that it was "disgusting” to 
hear that the arrested boy is about the 
same age as his grandchildren. 

"I cannot fmawords to describe it," 
he told reporters. 

The crimes are regarded as partic- 
ularly shocking and sensational because 
of the way the killer taunted the police 
and threatened in a note to kill more 
people to take revenge on the “com- 
pulsory education system." 

"This is just the beginning of tile 
game." he wrote in a note that was 
staffed in Jan’s mouth. 

Manila Destroys 
Spratly Structures 


i"" 1 V f. s.-r. 

■1 bus**- - : 


t^f.r -■ 

Mr N J-' • ... 

uite'T- 1 :' . 
Wsrc.'f*' •• 

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day, the police said. 
The police said ni 



By Gabriel Garcia Marquez. Translated 
by Edith Grossman. 291 pages. $25. 
Alfred A. Knopf. 

Reviewed by Michiko Kakutani 

Politicians, businessmen, journalists Garcia Marquez’s native country. In- 

C ONSIDER the place described in 
Gabriel Garcia Marquez’s harrow- 

Gabriel Garcia Marquez’s harrow- 
ing new book. It’s a country in thrall to 
drug dealers and terrorists, a country 
where four presidential candidates have 
been brutally killed. 

and ordinary freeloaders, Garcia Mar- 
quez observes, all made the pilgrimage 
to tiie estate where the drug lord “kept a 
zoo with giraffes and hippos brought 
over from Africa, and where the en- 
trance displayed, as if it were a national 
monument, the small plane used to ex- 
port die first shipment of cocaine.” 
Though such descriptions sound as if 
they belong in one of Garcia Marquez’s 

rarcia Mar- deed, the reader is reminded by this book 
pilgrimage that the magical realism employed by 
oid “kept a Garcia Marquez and other Latin Amex- 
os brought ican novelists is in part a narrative 
me the en- strategy for grappling with a social real- 
5 a national ity so hallucinatory, so irrational that it 
used to ex- defies ordinary naturalistic description, 
aine.” One gradually picks up an under- 

sound as if standing of recent Columbian history 
Marquez’s through osmosis, even as one is pi uuged. 

The police said nine passengers 
were being treated at the A llama 
Iqbal Hospital in SaiflroL 
The explosion went off at 6:15 
A.M. on a bus traveling to Sialkot 
from Lakhanal, near the Indian bor- 
der. Many of die passengers were 
day laborers, doctors said. 

There was no immediate claim of 
responsibility for the blast and no 
ward on its motive. 

The police had detained about 
500 Sunni and Shiite Muslim mil- 
itants in Punjab Province on Sunday 
as part of efforts to quell a wave of 
sectarian unrest, officials in Lahore 
said. More than 400 people were 
released after questioning and 92 
were detained for further investi- 
gation. they said. 

"Stupid police, stop me if you can,” 
the note said. “It’s great fun for me to 

The Japanese Education minister. 

The Punjab provincial govern- 
ed: ordered the crackdown fol- 

fintastical novels, they actually come in medias res, into the frightening series 

from “News of a Kidnapping," his new 

One of its cities is known as the most nonfiction book. The volume chronicles 

dangerous in the world: There are some the 1990 
20 murders a day in its streets, and a by the pc 
massacre every four days. Within and thee 
tnonths, nearly 500 police officers have surrenda 
been killed, thanks to a bounty offered torious P 
by a narcotics kingpin. While that drug ' “New: 

the 1990 kidnapping of nine journalists 
by the powerful Medellin cocaine cartel 
and the events that eventually led to the 

of events that began in the summer of 
1990, a mere three weeks after President 
Cesar Gaviria took office. Fearful of 
being sent to the United States to stand 
trial, Escobar and his followers, the so- , 

ment ordered the crackdown fol- 
lowing a spate of killings among 
rival religious groups. On Sunday, 
gunmen killed at least five people, 
four of them in amosque, in Lahore. 
A Shiite lawyer was wounded in the 
southern Punjab town of Dera 
Ghazi Khan on Monday. 

The Japanese Education minister, 
T akas hi Kosugi, issued a statement Sat- 
urday, suggesting that he will examine 
what teachers, family and local com- 
munities can do about such incidents. 

Many Japanese have been particu- 
larly horrified because the boy who was 
arrested seems to have come from an 
ordinary middle-class background, ac- 
cording to news reports. 

He is apparently the oldest of three 

There has been no comment from his 
fimijy.; Jun’s parents put a note on their 
door, which was staked out by reporters, 
saying they did not wish to say anything 
about the arrest 

Jun was apparently a classmate of one 
of the suspect's younger brothers, and 
they occasionally played together, the 
Japanese newspaper Sankei Shimbun 

MANILA — The Philippines has 
com down new structures fiat it 
asserted China had built near the 
disputed Spratly Islands, military 
officials said Monday. 

The officials said Defense Sec- 
retary Renato de Villa told the cab- 
inet that the military had removed 
concrete slabs and cylindrical 

The structures were found on a 
rocky outcrop called Sabina Shoal. 
120 kilometers <75 miles) west of 
the southwestern Philippine island 
of Palawan.. 

The Spradys are a cluster of is- 
lands, reefs and atolls in the South 
China Sea that are believed to sit 
atop hnge oil reserves. They are 
also clamed by Brunei, Malaysia, 
Taiwan and Vietnam. ( Reuters ) 

;>i pjiiwT« 
• If’.uT' 
pi.!* for *■ 

i-iitc ^ 


Lebanese Acfftt 

Police Disperse 
Protesters in India 

The newspaper described the arrested 
boy as a physically small and “cheer- 
ful” boy who had recently turned ‘ 'a bit 

See our 

Badness Message Center 
every Wednesday 

NEW DELHI r—Thepplice used . 
water camion Monday to disperse 
about 400 Muslim demonstrators „ 
who were protesting the arrest of a 
Shiite leader who has led a cam- ^ 
paign in Lucknow to end a 20-year j 
ban on a religious procession. 

The demonstration followed file , 
arrest Sunday of Maulana Kalbe 
Jawwad in Lucknow, where the au- ‘ 
thorities fanned an annual proces- , 
sion in 1977 after about 15 people 
were killed in clashes between ‘ 
Shiite and Sunni Muslims. 

The police have been deployed 
across Lucknow, capital or Uttar T 
Pradesh Province, to enforce a 
curfew. ( Reuters ) ’ 

BEKi.: 1 ' 

'TV> <i r ■ • 
il'.*.:.- -r ■■ 

in thr "■ ’■ 
i;uTi;\i. !•■ 
•n r :•••••■ 

l*'- :ri : 
.krte- :: 

surrender of the cartel’s leader, the no- called “Extraditables.” had begun to 

torious Pablo Escobar. 

“News of a Kidnapping” not only 

lord has a reputation as a ruthless killer provides a fascinating anatomy of ’'one 
who has blown up cars, shopping centers episode in the biblical holocaust that has 

and a jetliner, he is regarded by some as been consuming Colombia for more 

si Irinri nf PnKin Un/vi rwrtAnmArl hie thnn TAimmw t9 

a kind of Robin Hood, renowned for his 
charitable work among the poor. 

pressure the Colombian government in- 
to meeting their demands. 

"The traffickers — terrified by the 
long, worldwide reach of the United 
States — realized that die safest place for 



than 20 years," but also offers the reader them was Colombia," writes Garcia 

tie adored, gtafled, toved and 1 
throughout ths world, non and tower. 

Sacred Head 0 i Jesus, pray tar us. 
Sato Jute, wtor d rtrades, prey to 

new insights -into the surreal history of 


By Robert Byrne 

Black after 16 dc be ( 16...b6 17 Bc4 Kh8 

Marquez, “and they went underground, 
fugitives inside their own country. The 
great irony was that their only alternative 
was to place themselves under the pro- 
tection of tire state to save their own 
skins. And so they attempted — by per- 
suasion and by force — to obtain that 

ik. Sato Jude, helper o 1 the 
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18Nd5Nd5 19 Bd5 yields White a clear protection by eugaging in indiscrimin- 

Henri h^SB^ribunc 

Aston Cof 

19 Peal Road, 
let +44 
Far +44 

rate Trustees 
ugln, We of tore 
1624 62GS81 
1624 625126 

T HE Sl Petersburg Grandmasters 
Tournament was a homecoming for 
illustrious alumni. Only those who grew 
up in the city were invited to enter the 
round-robin event of a dozen grand- 
masters. Of the three who shared first 
place, Viktor Korchnoi has been a Swiss 

advantage with superior piece place- 
ment and a- nice passed c6 pawn) l7Na4, 
which will soon recover the sacrifice 
with pressure on the c file. 

With 21 Qc5,the invasion of the black 
position began. Korchnoi carried it 

masters Of the three who shared first through with great verve. eminent and press, the Extraditables 

place, Viktor Korchnoi has been a Swiss After 23 Nf7, Svidler avoided 23.~Kh7 began kidnapping journalists, including 
otizen for many years, Vateri Saloy has 24 Bb4 NdS 25 Btt Ne3 26 Bg7 Kg7 27 Dfena Tmb^“miblisher of the new! 
been residing in Spain while retaining Ne5 Nfl 2$ Kfl, which gives White a magazine Hoy porHoyand daughter of 
his Russian citizenship, and Alexander decisive one-pawn advantage. In this former President Julio Cesar Turbav Av- 
Khalrfman Uvea inStPeiersburg, after a line,24..JRe825Nd6Nd526NeSNb427 ala; Francisco Santos, news editor of 
sojourn in Germany. The each tallied 7- Rc7 also wins material for White. nntnmhuTs h«sf-e*>riim n^onnor pi 

4 m a salute to the place — it was then 

ate, merciless terrorism and, at the same 
tune, by offering to surrender to the 
authorities and bring home and invest 
their capital in Colombia, on the sole 
condition that they not be extradited.” 
In an attempt to pressure the gov-* 
eminent and press, the Extraditables 
began kidnapping journalists, including 
Diana Torbay, publisher of the news 

former President Julio Cesar Turbay Ay- 
25 Nd6Nd5 26 NeSNb4 27 aia; Francisco Santos, news editor of 

Colombia's best-selling newspaper. El 

Leningrad — where they received their pressure with 24 Bb3I, letting Svidler 

^ jhe Tiempo, and Manija Pachon, a former 

KSRTITK WlfTl 94 Rh3l Uttino Ciniflor ..i i 1 i .. 

excellent training. take a p 

Korchnoi, at 66 the dean of the roster, time top 
won the best-played -game prize for his 25 Rc7. 
•effort against Peter Svidler, winner of Korol 
several recent Russian championships. Kf7 29 
One could not tell from the winner's advantaj 
sharp, dynamic, deeply calculated play warded i 
that he was old enough to be his op- when 2< 
pon cot’s father and then some. with 29. 

In the Classical Variation of file attack w 
King's Indian Defense. 7...Nbd7 does After 
not challenge the white center as 7_JVc6 game in 
does, but it also does not permit 8 d5 with Kf7 31 J 
a gain of tempo. It is thus calmer and Be7 Be7 
does not generate such sharp counter- would w 
attacks as its alternative. 

After 9 Qc2, Black cannot improve t 

his position except by 9- J^g4 10 Bg5 fo White 

11 Bd2 c6, preparing for ,jE5. White’s Korchnoi 
plan is to lure this advance .early, when it l 44 

cannot be backed up by 'an attack and 2 c4 
could loosen the black position. * 

After 12 d5l, it might have been best 5 ^ 

for Svidler to block die queenside and 6 no 

center with I2...c5, even though he 7 m 
would have to pay attention to Kerch- \ 
noi’s possible attack with a3 and b4. 

Korchnoi’s IS cSl was the bright lac- n 
deal point of his strategy to break 12 ds 
through on the queenside ahead of the 13 N«5 

cake a piece with 24..JU7 to give him 
time to penetrate to the seventh rank with 
25 Rc7. 

Korchnoi's 27 Rfcl threatened 28 Bf7 

television producer and wife of the 
politician Alberto Villamizar. 

Garcia Marquez shows us the bonds 
some of file hostages developed with 
their guards: hapless young men, fearful 

ay at jas rwapape. Uw state of you 
aiHjpfcn or about adoring a absop- 
tion. piease cal the MMng rtuntwr 
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Kf7 29 Be7 30 Rc8 with the decisive 

iipjn Tet Parts (Oi) 

- faring prattams? SOS 
e ki Engfeh. 3 ojo - 
6 (01) 4/ 23 80 80 

advantage of a rook for a bishop. Svidler 
warded that off with 27.~a5 28 Ba3 b5, 
when 29 Bf7? would let Black escape 
with 29...b4! But Kwchnoi renewed his 
attack with 29 Bc5. 

After 29..JBa6, Korchnoi decided the 
game in Capablanca style with 30 Bf7 
Kf7 31 h5! Svidler saw that 3L_gh 32 
Be7 Be7 33 R1 c6 b4 34 Rh6 Kg7 35 Re6 
would win easily, and he gave up. 


expected black mating attack. Seizing a 
pawn with 15... dc would prove weak for 









1 <M 


16 Nd5 


2 c4 

' go 

IT Bc4 


3 Nc3 


18 BOS 



IS h4 


5 Be2 


20 Rad 


6 Nt3 


21 Qc5 


7 0-0 


22 Qe7 


8 Be* 


23 Nf7 


9 Qc2 


24 Bb3 


10 Bg5 


25 Rc7 


11 Bd2 


26 Bb4 


12 dS 


27 Rfcl 


13 Ng5 


28 Bta 


14 13 


29 Bc5 


15 C5 


30 Bf7 

31 U5 



the incongruities of the hostages' cap- 
tivity; they were housed in rented rooms, 
in the middle of busy city neighbor- 
hoods, only yards from freedom and 
ordinary life. 

At the same time, Garcia Marquez 
traces the strenuous efforts of family 
members to win the hostages’ release. 
As he tells it, Villamizar ‘s role was by 
far the most dramatic: In addition to 
working tirelessly for his wife’s release, 
he also played a crucial role in nego- 
tiations leading to Escobar’s surrender j 
in 1991 in re torn for lenient punishment. 
(In 1992, be escaped from hi$ luxurious 
prison; in 1993, he died in a gunfight 
with security forces in Medellin.) 

While the language in “News of a 
Kidnapping” is reportorial, even flat, a 
far cry indeed from the luxariantproseof 
file author’s novels, the narrative pos- 
sesses all the drama and emotional res- 
onance of Garcia Marquez's most 
powerful fiction. 

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PAGE 5*j 

Opposition Wins Albania Vote 

President Accepts Poll and Stresses Democracy 

Cimfiird inr\rSM@Fn*i DtqxnrVs 

TIRANA — President Sali Ber- 
isha of Albania conceded Monday 
drat his Democratic Party had lost its 
governing majority in the legislative 
elections held Sunday. 

Mr. Berisha promised that he 
would respect the outcome. 

‘No official results were available 
on Monday. But the opposition So- 
u ■yalists had already proclaimed 
* themselves the clear victors. 

•The elections, carried out in an 

S verished country tom by an* 
and armed disorders for sev- 
eral months, were marred by sporad- 
ic violence and at least one death. 

In a television address, President 
Berisha promised drat, although the 
elections had taken place “in a very 
abnormal" situation, “I will accept 
the result and I will respect all the 
declarations I have made." 

Thai would most likely mean that 
he will resign as president, as he 
promised in March when he called 
the elections in an effort to end 
anarchy throughout the Balkan na- 

. But Mr. Berisha stopped short 
Monday of announcing that he 
would resign. 

'' ' But the Socialist Party leader. Fa- 
tes Nano, called on Mr. Berisha to 
resign immediately. 

. Mr. Nano, whose party heads the 
three-party opposition coalition, 
said the Socialists had taken 63 of a 
possible I IS seats in the first round. 
The second round of voting will be 
held next Sunday to complete the 
process of choosing new members 
of Parliament 

President Berisha cold television 
viewers that his party, while in op- 
position, would work to "consol- 
idate democracy, its values and its 

"The vote and the verdict of the 
people will be respected, as I will 
• keep my promises," he added, in 
; what was interpreted as a broad hint 
; that he would honor his pre-election 
vow to step down if tbe vote went 
against him. 

Sources close to the presidency, 
while insisting that he would honor 
his pledge, said Mr. Berisha would 
wait for the official results before 
making a further announcement 
He has refused in the past to con- 
sider forming a coalition with the 

The results of the voting were 
recognized by a Council of Europe 
group of observers sent to monitor 
the voce. 

In a joint statement, the group 
said tbe vote "can be the basis of a 
democratic stable democratic sys- 
tem which all Albanians want and 

Catherine Lalumiere, head of the 
500 election observers dispatched 
by tbe Organization for Security and 
Cooperation in Europe, said in a 
preliminary assessment on Monday 
that "the elections can be con- 
sidered as adequate and acceptable 
at this stage." 

“Voters were generally able to 
cast their ballots without fear or 
intimidation, although there are re- 
ports of some serious problems with 
the counting process in a few 
zones," she said in a statement 
In general, she added, tbe elec- 
toral commissions appeared to have 
been "correct and nonpartisan" in 
supervising the voting. 

Mr. Nano said at his press con- 
ference. “Nobody in Albania today 
need feel like die loser.' ' 

He paid tribute to die “civilized 
silence" of tbe defeated Democratic 
Party and its supporters, and said he 

i hoped that the "civilized silence 
would also be respected by certain 
armed elements including the Pres- 
idential Guard.” 

Preliminary results issued earlier 
Monday by the Centra] Election 
Commission gave a majority of 
seats to the opposition. 

The deputy bead of tbe commis- 
sion, Fatos KJosi, said that the three- 
party coalition, led by the Socialist 
Party, had taken 14 of a possible 19 
seats in Tirana, the capital. 

Late Sunday, after a day of brisk 
voting maned by a series of small 
but violent incidents, Mr. Nano said 
die coalition had woe about two- 
thirds of the seats in 140-seat Na- 
tional Assembly. 

The defeat spells the end of five 
years of increasingly autocratic rule 
by Mr. Berisha and his party, which 
was seriously undermined in March 
when Albanians took to the streets 
over tbe collapse of bogus get-rich- 
quick investment schemes. 

The armed rebellion that fol- 
lowed took large sections of the 
country out of government control 
and led to weeks of chaotic violence 
and banditry in which, it is esti- 
mated, 1,600 people died. 

Sunday's voting was generally 
calm despite the slaying of one elec- 
toral official and problems with vot- 
ing in some areas. 

With the south still in open re- 
bellion against Mr. Berisha and 
much of the rest of tbe country 
plagued by widespread lawlessness 
in the weeks preceding the vote, the 
wisdom of holding the election at all 
had been questioned. 

But tbe presence of the foreign 
observers, guarded by members of 
an Italian-led multinational peace- 
keeping force, appeared to have lim- . 
ited the more blatant forms of vote . 

Hack* ftiamVrhc A-M«ci*ed 

Fatos Nano, the Albanian opposition leader, announcing Mon- 
day in Tirana that the Socialists bad won a clear majority. 

fraud that opponents claim gave Mr. ballot boxes by party operatives — 
Berisha ’s Democrats 95 of partia- were evident, 
ment’s 1 15 seats in May 1 996. Still, officials and observers from 

Many Albanians date the coun- opposition parties openly ques- 
tty’s deepening crisis to that elec- tioned some ballot procedures, es- 
tion. pec tolly the absence of the names of 

None of that election's more ob- their supporters from die certified 
vjons forms of intimidation — rang- voting lists, 
ing from the high visibility of secret In another defelopraent. an Italian 

policemen ana the bullying of soldier was badly wounded in shoot- 
Democratic Party election officials ing in the Adriatic port of Vlore on 
at polling stations to the seizing of Monday. (AFP. AP. WP) 

Prodi Trial Decision Delayed 

ROME A iudge postponed a decision Monday on 

whether to put Prime Minister Romano Prodi of Italy on 
trial, giving a panel of experts more time to examine 

financial aspects of the case- „ 

Mr. Prodi faces allegations of abuse of office and 
conflict of Interest over his role in the ^nooverejal 
privatization of the Cirio food company ui 
was chairman of flU, the giant state industrial holding 

^A^panel of accounting, commercial law and man- 
agement experts was appointed by the judge, Edoardo 

Landi. in March to look into the case. 

They were supposed to present their findings Monday 
but court officials said they had asked for an extension. 
Mr. Landi gave the panel until Oct. 3 to file its report. His 
trial decision Is expected Nov. 25. • f Reuters) 

British Admit Atomic Dumping 

LONDON — Radioactive waste from private British 
companies was dumped in the Irish Sea in the 1 950s, the 
British government confirmed Monday. 

The dumping of tow-fo- intermediate- Icvt?} contam- 
inated waste — from laboratories, luminous paint and 
clock dials — took place in the Beaufort Dyke, a deep 
depression in the sea floor off Scotland. 

A spokesman for the government's Scottish Office, 
confirming a report in The Guardian newspaper, said that 
the levels. of radioactive material were so low they could 
not be measured. f^Pj 

Bosnian Serb President Is Held 

BELGRADE — The Bosnian Serb president, BiJjana 
Plavsic, was detained overnight by government oppo- 
nents trying io sabotage her crackdown on high-level 
corruption. Bosnian Serb sources said Monday. 

The sources, who spoke on condition of anonymity, | 
said that Mrs. Plavsic nad been held by the police near 
Bijeljina in the northeast of the Serb. Republic entity in 

She was allowed to leave Monday morning by car for 
ber office in Banja Luka under the protection of NATO 

The sources said that hard-liners opposed to Mrs. 
Plavsic appeared to be trying to oust her after the failure of 
her attempt last weekend to dismiss the interior minister, 
Dragan Kijac. ( Reuters i 

' German Mystery Unresolved 

Lebanese Acquitted in Fire Fatal to 10 Foreigners 

By William Drozdiak 

Washington Post Service 

. BERLIN — In a verdict that deepens the 
mystery surrounding one of the most deadly 
attacks against foreigners in Germany, a court 
in the port city of Luebeck on Monday ac- 
quitted a Lebanese refugee of igniting the fire 
in on asylum-seekers home that killed 10 
people and injured 38 others. 

' Presiding Judge Rolf Wdcken dismissed all 
charges against Safwan Eid, a civil war 
refugee who had lived in tbe hostel with bis 
family for six years, after prosecutors ac- 
knowledged they had no firm evidence to back 
up earlier claims that Mr. Eid started the blaze 
io avenge a quarrel with another resident. 

The fire bombing that destroyed the ram- 
bling four-story house in January 1996 
triggered fears of a fresh wave of neo-Nazi 
■ attacks just when German authorities believed 
they had quelled the surge in xenophobia that 
followed Germany’s unification in 1990. 

. \ More than 30 foreigners were killed and 
t hundreds of others injured in a spate of arson 
cases and other attacks against the homes of 
refugees and asylum seekers. Tire number of 
incidents dropped after the adoption of a new 
law in 1 993 restricting the influx of foreigners 
seeking shelter in Germany. 

When three neo-Nazi youths from Eastern 
Germany whose hair bore burn marks were 
detained the morning of the blaze, commen- 
tators at home and abroad bemoaned the 
failure of German authorities to put a halt to 
acts of violence by mainly disaffected and 
unemployed skinhead youths. 

But the youths were released when the 
police accepted their alibi that they were 
trying to set a dog on fire at a site well 
removed from the asylum house. When Mr. 
Eid was subsequently arraigned amid reports 
of a bitter argument among the residents on 
the night of the blaze, conservative politicians 
seized on his arrest to complain about Ger- 
many being unfairly victimized by charges of 
neo-Nazi-inspired violence. 

During his seven months in custody, Mr. 
Eid always protested that he was not guilty. 
Prosecutors based their case on three words 
he allegedly told a first aid worker as he was 

rescued during the fire: “It was us." 

But Mr. E id insisted that what he really said 
was: "It was than — they set the stairs on 
fire, " as he repeated what his father told him 
about neo-Nazi youths spotted in the vicinity 
of the house. 

Mr. Eid’s lawyers argued that police did 
not properly investigate the detained youths, 
who were caught driving a stolen car and were 
known to be members of a far-right skinhead 
•-group '(Kft far 'ftorir Luebeck; which is just 
across the old dividing line between East and 
West Germany. • 

Even though Chancellor Helmut- Kohl in- 
sists his homeland must never become an 
immigration country, Germany has evolved 
into one of the most ethnically diverse states in 
Europe. Foreigners now make up nearly 9 
percent of Germany's population, more than 
twice the level of Western Europe as a whole. 

State governments are now trying to ac- 
celerate the repatriation of many foreigners. 
In the wake of the arson attack in Luebeck, 
many of the asylum-seekers, who came from 
Zaire, Togo, Syria and Lebanon, were moved 
to new apartments by order of the town's 
mayor, Michael Bouteiller. 

But after giving testimony in the Eid case, 
they now face imminent deportation under 
strict new laws that require asylum seekers to 
be sent back home when there is no longer any 
compelling reason for them to stay in Ger- 

Although the number of attacks against 
foreigners has receded from the high mark of 
nearly 2,300 incidents in 1992, Germany still 
confronts a serious problem in the re-edu- 
cation of many alienated youths in eastern 
regions who were never correctly taught 
about the Nazi legacy under their former 
Communist rulers. 

But xenophobic altitudes also persist among 
young people in Western Germany as well, 
especially in the north, where joblessness af- 
fects as much as a quarter of young adults and 
skinhead activities are particularly strong. 

Luebeck has acquired a reputation in recent 
years as a haven for rightist extremists fol- 
lowing two firebombings of the local syn- 
agogue, the first examples of such anti-Semit- 
ic violence in Germany since tbe Nazi era. 

French Mayor 
Goes on Trial 


France — Catherine Megret, 
the far-right National Front 
mayor of Vitro lies in south- 
ern France, went on trial 
Monday, accused of advoc- 
ating racism in a newspaper 

- „ ; Three anti-racism associ- ! 

■ ■' aiions and more than 700 
private citizens have pressed 
charges against Mrs. Megret, 
alleging she incited racial dis- 
crimination and defamation 
in the interview with the Ger- 
man daily Berliner Zeitung, 
ip which she trailed immi- 
grants “colonialists.” 

; Friends and foes of the Na- 
tional Front demonstrated out- 
side tlx; Aix-en-Provence 
cjourt as she arrived, accom- 
panied by her husband Bruno 
Megret, the anti-immigrant 
party's No. 2, and the mayor 
of Toulon, Jean-Marie Le 
Chevallier, a Front member. 

! Mrs. Megret captured a 
fourth French town for the 
ljront in a municipal by-elec- 
tion last February after her 
Husband was disqualified 
from running because he ex- 
ceeded the legal ceiling on 
campaign expenses. 



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HANDOVER IN HONG KONG / Pomp, Revelry and Torrential Rain 

A Night of Celebration 
And Fear for the Future 

Residents, and Others, Toast Transfer 
With Champagne, Beer and Some Tears 


HONG KONG— Hong Kong pony 

Chan, said he had prepared a menu of 
abalone, sharks' fin soup, crispy filed 

goers Monday threw themselves into the chicken and birds’ nest soup, 
ni gh t of their lives, a rain-soaked world “Most of our tables are booked, he 
away from the somber for mali ty of of- said. “Everyone is herefrom couples to 
ficial ceremonies handing the territory whole families.” 

back to China. 

Alan Ford, a 46- year-old construction 

From higb-society balls to techno worker nursing a pint of John Smith’s 
raves, revelers brushed aside toirentiaj beer at the Old China Hand, said, ‘ T am 
rain and thick humidity to commemorate going to finish this and then go to my 
the dying moments of British colonial bed.” 

In the early evening, deafening roars 
of approval greeted the fireworks dis- 
play over Victoria Harbor by the con- 
vention center where the territory was 
handed over to China in a midnight 

Tens of thousands crowded 8 or 12 
people deep under umbrellas and the 
shelter of pedestrian paths, crying 
“ Wah ," the Cantonese expression of 
surprise, in ever louder waves with each 

One couple, 25-year-old Andy Woo 
and 24-year-old Money Chan, said the 

Mr. Fond said he had fears for the 
future of his Chinese co-workers who 
had fled the mainland for Hong Kong. 
“One of them told me today the sky was 
crying for' Hong Kong,” he said, re- 
ferring the day's persistent rainfall. 

The normally frantic, money-go- 
round of life in the city of commerce was 
slowed to a crawl by the five-day holiday 
surrounding the handover. 

Some prayed in temples for a peaceful 
return to Chinese rule. Others crowded 
outside the British governor’s residence 
to snap photos. 

The British Union Jack came down at 

In Britain, Indifference 
To Loss of the Colony 

Tennis, Not Imperial Nostalgia, Rules the Day 

- — - — opoa their colonial past with pnde.. 

By Warren Hoge After Monday, what remains of the 

. New Yerkiimes Service empire on which the sun never set and in 

LONDON — At borne, the British which more than aquarter of theworid s 
greeted the turnover of their last major population resKtef a a ^cnon i of 
colony Monday with relative indiffer- small, scattered Bn^ dependenci(» 
ence, finding stronger reasons for ex- like Bermuda, the Falkl and Jslan 
pressions of national pride in the current Gibraltar, SL Helena and Caribbean un- 
success of their tennis players at lands like Anguilla, the Caymans, and 
Wimbledon and their national rugby the Turks and Caicos, 
team in South Africa than in any overt. Tbe Daily Telegraph 
nostalgia for their imperial past lish was now the language or commerce. 

What commemorating of the event law, science, diplomacy and rarijamfia-- 
there was involved people witha direct tary democracy and provided 
interest in Hong Kong, residents in the swer, “Because men who set Off wonj 
C hinato wns of cities like London and our islands conquered the world. - 

success of their tennis players at 
Wimbledon and their national rugby 
toum in South Africa than in any overt, 
nostalgia for their imperial past 

Birmingham and brokers and business- Of these voyagers, the paper said, 
men whose livelihood depends on es- “Whatever their motives, the con- 
tabli&faJng good relations with the new sequences benefited manJond. 
governors of Asia’s leading financial The Chinese Embassy marl 
center: transition with a low-key recep 

“We are celebrating an opportunity. British politicians, businessmen i 
not holding a wake,” said James tural figures and the banging i 

The Chinese Embassy marked the 
transition with a low-key reception for 
British politicians, businessmen and cul- 
tural figures and the banging of cere-. 

B u chanan-J ardine, a stockbroker at monial gongs outside the bail ding at the 
N.CU. Investments and the son of Sir moment of the handover. A silent vigil 
John Buchanan-Jardine, the last family was held on tbe street by protesters call-, 
owner of the giant Hong Kong trading in g for an end to Chinese rule over 
company, Jarmne Matheson. Tibet 

He was heading to a gathering of 

fireworks were better than those for the governor’s residence, flags went op 
Chinese Lunar New Year. Still they welcoming China, and workers removed 

Chinese Lunar New Year. Still they 
were equivocal about the handover. the insignia of Chinese dragon and Brit- 
“It is neither good nor bad, bull think ish crowned lion from government 
Hong Kong will still have an important buildings and crated them up for ship- 
role to play economically," Mr. Woo ment to Britain, 
said. Clocks occasionally flashed cm TV 

Meanwhile, inside the plush Regent screens, ticking off fne last hours and 

Meanwhile, inside me plush Regent 
Hotel, guests at the “One Country, Two 
Parties” event watched the spectacle in 

seconds of a transition that began in 
1984, when Britain agreed to hand the 

air-conditioned comfort to the sounds of colony back to China, 
a five-piece band. With a flourish of British 

* ‘This is really wild, * ’ said Katie Mur- drizzle of rain that slowly 
ray-Hayden as the band shuck up “Put- blue wool suit, an exham 
ting on the Ritz." Governor Chris Patten wat 

‘ Tm going to drink champagne and I honor-guard maneuvers ant 
am going to party," said Miss Murray- bye to staff members of ( 

President Jiang Zemin of China, left being greeted Monday by Tung Chee- 
hwa, the next chief executive of Hong Kong, as he arrived at the airport 

PROTESTS. Call to Scrap Legislature 

2f>0Q members ana guests of the Hong 
Kong Society at Sandown Park, a 
racetrack south of London where the 
annual Hong Kong Day derby is held. 
The most recent Foreign Office stock- 
market valuation of the more than 1,000 
British companies operating in the 
former colony exceeded $115 billion. 

While in Hong Kong the Black' 4 
Watch's bagpipes skirled and onlookers' 
became teary at the piping of “The Last 
Post” and the singing of “Rule Brit*, 
annia" and “Jerusalem,” for London- 
ers, it was business as usual. _ - 
The sense of empire ended some time 
ago for Britons, and the lowering of th$ 
Union Jack over tbe country's last major. 

and Mr. Buchanan-Jardine said British colony carried little substantive meaning 
entrepreneurs and brokers were keenly for Britain or its role in the world. 

■ _ m . _ . » J ± ? I _ fc AT* Man .nft-.ll av«i 4 ■»« n Annnla aIiiYvc 

With a flourish of British pomp and a Continued from Page 1 
drizzle of rain that slowly soaked his 

blue wool suit, an exhausted-looking Taiwan, which Beijing considers a rene- 
Govemor Chris Patten watched police gade province. 

Marchers of the April 5th Action 

interested in increasing business with 
China through its new Special Admin- 
istrative Region of Hong Kong, that sup- 

Group, chanted, “Down with Li Peng, plies 60 percent of all external invest- 

t: c : m. tu™. 

down with Jiang Zemin," referring to 
China's prime minister and presidenL 

ment in China. They watched the 
dramatic proceedings on a 100-foot (31- 

“It may still exist in a couple of clubs 
in Fall Mali," an official at tbe Foreign 
Office said recently, “but few most Bri- 
tons the empire is no longer a reality.” 

honor-guard maneuvers and bid good- And a lone protester tried to confront One of tbe protesters carried a banner meter) television screen set up in the 
bye to staff members of Government the Chinese president. Jiang Zemin, out- blaming Mr. Li for the Tiananmen in- infield and then (fined to the music of a 


Hayden, a 27 -year-old wine dealer. “I House, his home for the past five years, side his hotel with the photograph of a cideots. 

am going to stay here all night because it 
is pouring down outside." 

Standing outside Oscar’s bar and res- 
taurant, one group of Britons was clearly 
impressed by the festivities. 

“It's the business," said Lawrence 
Peters, a surveyor visiting from London. 
“ I have asked for a transfer here; it really 
is superb.” 

Brian Yim, 38, working for an in- 

HSs wife. Lavender, and their three friend killed in the crackdown of pn>- “Down with Li Peng, the butcher of long was based in Hong Kong. 

infield ana men aroea to toe music or a r jryi_ o 

band from the Brigade of G urkhas that C<flCt7l£ r 6 TOr tr flOTTli * 

i i -.J ™ w 

daughters stood under umbrellas, their democracy activists near Tiananmen Jane 4,” the banner said. 

. r _■ i _ . _ «■ . ^ _ i i j n * i nnn a P.. 

every facial tic a seeming effort to hold Squa 
back tears. Mr. Patten, too, bit his upper Mi 
lip and swallowed hard as a band played man. 

e in 1989. 

Lee, die Democratic Party chair- 

The Alliance in Support of Patriotic 
Democratic Movement in China, which 

Another mammoth screen was set up 
in London's Chinatown, in the city’s 
Soho district. Hundreds of people 

temational trading bouse, was at a table managing without them. 

“God Save the Queen.” onto the balcony of the Legislative 

There seemed little public rancor to- Council despite warnings from the in- 
ward the British. Most Hong Kong coming government that they would not 
people say it is high time the British left, be permitted to do so. 
since Hcmg Kong is perfectly capable of Once there, Mr. Lee called for mare 

Once there, Mr. Lee called for mare our flesh and blood to defend Hoi 
democracy and tile scrapping of the Kong's democracy and freedom,” sa 

with 12 of his family at the Peking Food But they don’t conceal their gratitude Beijing-appointed legislature. Hong 
American Restaurant in Wanchai’s to Britain for providing a haven of law, Kong's elected legislature was replaced 

'flesh and blood." “We want to let the younger generation 

* ‘We will build a new Great Wall with know why Hong Kong is being banded 
r flesh and blood to defend Hong back and why it was taken in the first 
mg's democracy and freedom,” said place,” said K.H. Wu, a former civil 
eto Wah, chairman of the alliance. servant in the colony who is the secretary 

American Restaurant in Wanchai’s to Britain for providing a haven of law, 
Lockari Road. order and economic opportunity on the 

“I just got the famil y together for a southern coast of an often turbulent 
meal, nothing too special,” he said. “It China. 

is a good thing and you can understand "For the Chinese race, the departure 

Szeto Wah, chairman of the alliance. servant in the colony who is the secretary 

The alliance hoisted up a huge portrait of the Chinatown Chinese Association. 

Continued from Page 1 


has been more important as an idea than 
as a place. For many decades, it has 
served as an example of prosperity and a 
model of economic and political laissez? 
faire, a catalyst for troubling reflec- 

“How was it that foreigners, the Eng- 
lishmen, could do so much as they had 
done with the barren rock of Hong Kong 
within 70 or 80 years, while in 4,000 

order and economic opportunity on the after midnig ht hy a I ggislainr e appointed of the “Goddess of Democracy” and Tbe BBC was giving continual at- years China had no place like Hong 

“The mine of democracy has been 
ignited in Hong Kong, ’ ’ he said. “ItwilJ 

brandished placards that read, “End to 
one-party dictatorship.” 

In 'a separate protest, half a dozen 

living under or ruled over by another of tbe British and the return of Hong not be snuffed out because the flame of Taiwan politicians wearing “Say No to 
country for a long time, at least there is Kong is a happy event,” said Albert Yn, democracy is burning in the heart of China’ ’ T-shirts, accused China of using 

now some symbol that we are under oar a businessman in the crowd outside Gov- 

own country. 

eminent House. "But it’s a normal day 

everybody in Hcmg Kong. We call on 
Chinese leaders to give us democracy. 

the changeover to push reunification 

tention to the ceremonies, beginning at 9 Kong,” Dr. Sun \ 
AJVL and ending after midnight. The modem China, asl 
actual handover occurred at 5 P.M. Lon- meat speech in Hoi 
don time. Hong Kong's ir 

The tabloid newspapers treated the has never been grea 
story with jocular humor, referring to years. In many way 

Diners crowded around tables at the for Hong Kong citizens. We are just We will fight all the way. We will con- stand. Thafs 
Fook Lam Moon Restaurant in Johnston small potatoes, following the flow of tinue to be your voice. We will continue China'," said 

with Taiwan. “We want to express our it as the greatest Chinese home de- 

Kong,” Dr. Sun Yat-sen, a founder of 
modem China, asked in a commence- 
ment speech in Hong Kong in 1923.- v 
Hong Kong's influence over China 
has never been greater than in the last 20 
years. In many ways it was the example 
of Hong Kong's success that helped 

That’s ‘One Taiwan; One livery in history, while the more inspire China to launch the “second 

i - j v ? a- i*. rr_; : - - 1.. ’ » * i mo 

Road, Wanchai, where the manager, Nin 

(AFP. AFP) to be tiie voice of Hong Kong.” 

city council member. 

Liao Bin-liang, a Taipei 

serious newspapers published columns 
and editorials urging Britons to look 

HONGKONG: China Takes the Reins 

Continued from Page 1 

bearskin hats and the Union Jack was 
brought down. 

line of representatives of each of the 
territory's services, from the Correction- 
al Services Department to the Auxiliary 
Medical Services, all in white dress uni- 

After a five second pause, time for the forms. 

British cymbals to stop vibrating, tire 
Chinese national anthem was played and 

Then, as a single bugle 
Post, a thin drizzle brushed 

ayed Last 


0 300 


^ TV 

Beijing yi 



the Chinese flag raised alongside the and tbe Union Jack slipped down tbe 


new flag of Hong Kong. 

Hong Kong had returned to China. 

The symbolic end of British rule 
began Monday afternoon, at 4:30 when 
the doors of Government House, tbe 
home for British governors since 1855, 

of the 

flagpole. The police band struck up Mr. 
Patten's favorite song, the mournful 
“Highland Cathedral,” and with the fol- 
ded flag on a royal blue pillow, be 
stepped into a 1961 Rolls Royce. 
Slowly, the long black ear flying tbe 



ONG/ \ 
r China 

and Hong Kong's 28th resident governor's ensign from the hood circled 



Lavender, and their three daughters three times, a ritual performed by all 

walked down the steps. 

Drawn up at attention in the sweeping 
circular drive was the police band in 
snow white tunics with mirror-polished 
silver buttons. In a blue suit, the bags 

previous governors, a Chinese ritual say- 
ing “We shall return." 

As Mr. Patten's car pulled from the 
gates of Government House, gates that 
still bore the Queen's seal “ERH," 


fctaffr/irgL >- 

-Victoria Harbor 


.• .. I (Portugal) 

'■A'-'1 1 To be mi 

under his eyes heavier than usual, ms crowds of Haig Kongers and tourists 

now gray-white hair a bit disheveled, 
Mr. Patten mounted a small stepped 

waved and cheered, clapped and cried. A 
small contingent of police in their brown 
summer uniforms swung the iron gates 

To be returned 
to China's control 
Dec. 20. 1999 


South China Sea 

The band broke into the first stanza of closed for tbe last time, ending 1 22 years ernor, a short piece of oratory that re- 

mained as robustly defiant as any he has 

The drizzle turned to showers and then given, a declaration of his own prin- 
to a downpour that washed the harbor ciples as governor and a public challenge 

God Save the Queen and Mr. Patten of British residence. mained as robustly defiant as any he has 

lowered his bead, swallowing heavily in The drizzle turned to showers and then given, a declaration of his own prin- 
a surge of emotion, emotion that would to a downpour that washed the harbor ciples as governor and a public challenge 
shake the governor through die day. front in sheets of monsoon borne rains, to much of Mr. Tung's own philosophy 
Eight officers from the Royal Police Still, the British farewell ceremony began of governance. 

Training School bearing ceremonial sharply at 6: 15 as a sky of crumpled gray “Our own nation's contribution here 
World War I Lee Enfield 303 rifles wool melded into hues of gold and rose, was to provide the scaffolding that en- 

amf democratic accountability." 

“Hong Kong's values are decent val- 

thrown by the British for 4,000 guests, 
including the Chinese foreign minis ter, 

ished columns revolution" that since 1978 has trans^ 
ritons to look formed the most populous nation on 
________ Earth. 

Tiny Hong Kong furnishes 58 percent 
of the foreign investment in China, but 
more important, by its very existence 
and success it undermined the legitim,- 
* acy of China's old economic system and * 

ideology. In a nation that under Maoism » 
wafi a ro 01 ** monolith, Hong Kong sud- 
denJy emerged as an another wellspring 
of legitimacy and an alternative arbiter 

* of fashion and relevancy. • 

■ Tbe image of the Communist Party is 

J of earnest old men sitting in Mao jackets 

i holding self-criticism sessions; the im- 

* age of Hong Kong is of young people, all 

» suk and linen, speaking on cellular tele.- 

J phones as they drive off to dates. Jt is no 

" ■ wonder that the Communist Party is in 

! trouble. 

« Now many people expect tftar Hong 

und »• Kong will continue to reshape China, but 

1 from within. 

! While the impact of Hong Kong, and 

; of time, may well be corrosive to tra- 

ditionai Communist Party ideology and 

MBes ~- , ' dictatorship, it could help stimulate a - 
5 revitalization of the party and of China 


--»■ ■■ — ■■■ ' “It is quite possible that out of this 

The New YoA Times process will emerge not a weaker 
Chinese state but a stronger Chinese 
4,000 guests, state, a state that is strengthened by 
sign minister, having a greater sense of legitimacy, led 

ues,” he continued, “they are universal Qian Qichen, the man who has spear- by people who are more cosmopolitan 
values. They are the values of the future beaded Beijing's arrangements for Hong ana more responsive to the yearnings of 

Training School bearir 
World War I Lee Enfi 

303 rifles 

much of Mr. Tung's own philosophy in Asia, as elsewhere, a future in which 
governance. the happiest and the richest commu- 

“Our own nation's contribution here nities, and the most confident and the 


Over Scottish salmon, sniffed chicken 
breast and a red fruit pudding with rasp- 

was to provide the scaffolding that en- most stable, too, will be those that best berry sauce, Hong Kong's wealthiest and 

through a sharply choreo- Two dragon dance teams rose and fell abled the people of Hong Kong to as- combine political liberty and economic most powerful people, British and 
flipping of rifles, abrupt turns across a tarmac ground that once was the cend.” he asserted. “The rule of law. freedom as we do today.” - Chinese alike, ate their last meal under a 

and slow -step marching in a salute to the main British naval base here. 

last governor. Stepping from the dais, With rain pelting down on him, Mr. 

Clean and light-handed government. 
The values of a free society. The be- 

in Hong Kong's new convention cen- 
ter, a curving, sculpted-roofed edifice 

and more responsive to the yearnings of 
their people,* noted Michel Okscnberg; 
an Asia expert at Stanford University, 
“The Communist Party is an instir 
tution that in my opinion does need 
revitalization," Professor Oksenberg 
said. “But in a curious way, the at£ 

tten then slowly walked down a Patten delivered his final speech as gov- ginnings of representative government jotting into the harbor, a banquet was leaders to set foot in colonial Hong 

British flag. Neither President Jiang nor sorption of Hong Kong could help re- 

Prime Minister Li Peng, the first Chinese 

Chinese Ignore Albright’s Plea for Leading Dissident 

Kong, attended the banquet 
With an hour of sovereign 

CnrfUrd trr Omr Stiff Fivi DtspaKim 

HONG KONG — Secretary of State 
Madeleine Albright pressed her Chinese 
counterpart on Monday to release the 
dissident Wei Jingsheng before a 
Chinese- American summit meeting that 
is being discussed for October. 

But during a one-hour meetings, the 
Chinese foreign minister, Qian Qichen, 

was being discussed for October. Several days 
Human-rights groups have reported ment announced 

i, the State Depan- 
it China had assured 

Mrs. Albright met Monday raomir 
aboard the royal yacht Britannia wii 

With an hour of sovereignty left, the 
British foreign minister, Robin Cook — 
relaxed, hands in his pockets — waited 
at the entrance of the convention center, 
Mr. Tung, at his side, for the arrival of 
President Jiang. An honor guard of 

vitalize it It could also prompt its de- 
cay. " 

Still, not everyone thinks that Hong 
Kong will have much impact on China’s 
political system, in pan because thfe 
Chinese leadership is so adamant about 
stopping the buds of political pluralism 
before they flower. 

“Hong Kong will change China,” 

that Mr. Wei, 47, serving a 14-year sen- Washington it was taking no further Foreign Secretary Robin Cook of Bri- 
tence for advocating reforms, was punitive action against its best-known tain, who thanked the American envoy 
severely injured by other prisoners hop- dissident after Mrs. Albright voiced con- for her support, 
ing to get reduced sentences fa- attack- cero via the U^. Embassy in Beijing and With the Britannia as an impressive 

mg him. 

Mrs. Albright, 

the fringes of the Hong 

Mr. Qian on The department reported then that the 
takeover Chinese Foreign Ministry had respond- 

sought information. 

remained unresponsive to Washington ceremony, said tbe United States con- ed with an account of an altercation morrow must look like the Hong Kong 

backdrop, Mrs. Albright expressed hope Later. The Chinese president was helped 
that Hong Kong's new leadership will from the car and shook hands with Mr. 
understand that “the Hong Kong of to- Qichen and Mr. Cook. Mr. Patten then 

took his hand and said simply, “Wel- 

Black Watch In white jackets and kilts said Robin Munro, the head of the Hong 
stood at attention. Kong office of Human Rights Watch! 

Mr. Jiang's black, bulletproof Mer- “I'm sure we’ll see more venality and 
cedes, carrying both Hong Kong and appetite for money-making. But I doubt 
Chinese license plates, arrived moments mat this means more democracy and! 
Later. The Chinese president was helped liberalism. 

from the car and shook hands with Mr. “My biggest anxiety is that I believe 

on the human-rights issue, which U.S. turned to have concerns about Mr. Wei between Mr. Wei and a 
officials say is central to an otherwise despite an earlier explanation from saying Mr. Wei had bee 
improving bilateral relationship. Beijing, Mr. Boms told reporters. prison authorities but n 

“She made the point, he took them on She ‘ ‘specifically raised the issue of was being taken against 1 

board but I can’t say that he gave any Wei and said our concerns about his Mr. Qian did not get in 

commitment,” the State Department condition remain despite the explanation the case, Mr. Boros said. 

1 » U. ..U 7 X I A II L. 

between Mr. Wei and another inmate, 
saying Mr. Wei had been criticized by 
prison authorities but no other action 

that China will probably change some of 
_ . . the assumptions of political science in 

of today — and that is a Hong Kong that come to Hong Kong. the West,” Mr. Munro added. The the- 

is free, a Hong Kong in which personal In the first minutes of Chinese rule, ory that economic liberalization leads to 
freedoms exist and will not be squeezed Mr. Lee, the democracy leader, climbed political pluralism may be valid in much 
out" to the colonnaded balcony of the Le- of the world, Mr. Munro said, but per- 

Looking at the broader picture, the gislative Council building with fellow haps not in Asia. 

British official said there was more con- lawmakers who have been evicted from Developments in Hong Kong will 
fidence in Hong Kong’s future than any- their seats. shape relations between fhina and the 

one could have predicted five years “We know," he told a crowd below, West, particularly with'tfae United States 
ago. “that, without a democratically consti- and Britain. 

“We are in a city in which the stock luted government and legislature, there Human rights in Hong Kong are 

She ‘ ‘specifically raised the issue of was being taken against him- 
Wei and said our concerns about his Mr. Qian did not get into details about 

spokesman, Nicholas Bums, said of die from China,” he said. 

Albright-Qian conversation. “We would like him to be well 

Nevertheless, Mrs. Albright reaf- treated, in fact, we would like yon to 

firmed the U.S. intention to hold a sum- release him," he quoted Mrs. Albngbt as meetings.” 

Mrs. Albright stressed the need to 
ensure that U.S.-China summits “must 
be concrete, well prepared, meaningful 

mil between President Bill Clinton and saying. 

President Jiang Zemin in Washington 
later this year, Mr. Bums said. 

Later, in an interview with CNN, Mrs. 
Albright said that although a specific 
date had not been set, die summit 

The secretary of state also made the “mark a new page in U.S.-China re- 
case for China to release its other polit- lations after the difficulties of the last 
ical prisoners and to sign fee United several years,” when ties were in a 

t said that although a specific Nations covenant on political and civil 
id not been set, fee summit rights, Mr, Bums said. 

In this way, she said, they would exchange is rising, property prices are 
“mark a new page in U.S.-China re- rising, investment is leaping upwards and 
lations after the difficulties of the last perhaps most important of all, there are 
several years,” when ties were in a more people coming to Hong Kong to 
downward spiral and few meetings were stay than are leaving Hong Kong,” he 
held. said. (Reuters, AP ) 

British official said there was more con- 
fidence in Hong Kong’s future than any- 
one could have predicted five years 

“We are in a city in which the stock 

exchange is rising, property prices are is no way for our people to be ensured already emerging as another focal point 
rising, investment is 1 taping upwards and that good Jaws will be passed to protect for China-American relations, and any 

r W^ nrw wiaM ltwaArtafit rtf *iTV fhftm QrO rftAiP ff 1C im ffomAAfeAi! ItimH rtf 1 1 

haps doc in Asia. 

Developments in Hong Kong will 
shape relations between China and fee 
West, particularly with' the United States 
and Britain. 

Human rights in Hong Kong are 
already emerging as another focal point 

theft freedoms. If there is no democracy, 
there is no rule of law. We want Hong 
Kong and China to advance together and 

not step back-together.” 

kind of crackdown in the tenitory could 
trigger a serious downward spiral in 
relations between Washington and 

a Vi-W 


3 iff ft? 

jj jj fgg 

*p\ t \ 



HANDOVER lli HONG K OHO / How Much Dissent , and at What Price for the Dissenters? 

What Now for Territory’s Mr. Democracy? 

jj>. By Keith B. Richburg 

. itaftiniytH Post Service 

' > HONG KONG — Martin Lee was 
' only 1 1 years old when Mao Zedong’s 
eowriilas crossed the Yangtze River, 
‘ I; Signaling China’s fell to the Comrau- 

• ijisti Mr. Lee’s father, Li Yin-wo, had 
bfcen a two-star general in the Nation- 

c ilist Army and. as a follower of Chiang 
v I Kai-shek, could have easily followed 
f the defeated generalissimo to refuge in 
Taiwan in 1949. 

s Instead. Mr. Li beaded south, to Hong 

o- •' Years later, he explained to his son 
. tie reason for his move. The Nationalist 

laid, and he did not want to spend the 
• ^ rest of his life serving a corrupt regime. 

: ' And he knew that his children would 
receive a better education and more 

• opportunities under the British colonial 
system in Hong Kong than they would 
ft Taiwan: 

‘ But if Mr. Li had tired of the Na- 
tionalists, that did not mean he was 
enthusiastic about the Communist 
Party . He spent years in Hong Kong 
Changing apartments to avoid Commu- 
nist recruiters sent by Prime Minister 
: Zhou Enlai. Before be died on Feb. 4, 

1 Mr! Li imparted a credo to Martin Lee: 

Taiwan Gives 
Mixed Review 
To Handover 

The Associated Press 

TAIPEI — The Nationalist Chinese 
government welcomed the end of Brit- 
ish rale in Hong Kong on Monday but 
jf fu,nj'i .expressed concerns about future 
111 • freedoms and rule of law in the territory 
. under Beijing’s control. 

1 •'**■ 1 The government is “pleased to see 
Hong Kong finally returned to the hands 
' . — - Of the Chinese people,” a spokesman, 
- David Lee, said at a news conference on 
r -- Ac eve of Hong Kong’s handover of 

• sovereignty. 

• - But he questioned China's commit- 
ment to allow Hong Kong a high degree 
of autonomy, and said that Beijing 

' ' - Would stifle the territory's development 
And democratic institutions if it was too 
■ {forbearing. 

• ? The spokesman expressed hopes that 

— feeijing would “fully respect the mint 

- of the institutions that has allowed Hong 

- Kong ftS’deVetopi-and carfyodt r 

: fee totter Hong Kong beruled by the 

- ffeaptedf Hong Kong.* V 

. ^Tfen^ KIbiig^'tranab'od'’ is 'beftg 

- Hdsdy wufched frere' because China 

- Wants to use the same * ‘one-country, 

•- - two-systems” concept to reunite wife 

. . Taiwan, which it claims as a renegade 
province. Hong Kong is also the main 
■ - conduit for Taiwan’s booming trade 
frith and investment in China. 

J Mr. Lee said that Taiwan's prime 
.: nrimster, Lien Chan, was “extremely 

:-jl interested'' in visiting Hong Kong after 
. ' fee handover. A visit would help ad- 

Don’t trust the Communists. Mr. Li was democracy we won from the British is Democratic Patty to a majority of all 
a Chinese classical scholar whose per- going to be swept away when we be- popularly contested seats. 
sonaJ code of discipline was so strict that come pail of China again?” He also has won fame around the 

his children woo not allowed to handle 
money, for fear it carried germs. 

And Martin Lee — successful law- 
yer, human rights campaigner and 
chairman of the territory's most popular 
political party — has inherited much of 
his father's self-control, high sense of 
principle and belief in die righteousness 
of his cause. 

That sense of righteousness is stand- 
ing up for Hong Kong’s freedom has 
convinced his critics here that Mr. Lee 
has what they call a * ‘martyr complex. *’ 
They say . that Mr. Lee wants nothing 
more than a confrontation with Hong 
Kong’s new Chinese rulers. 

Mr. Lee has inherited something else 
from his father a sound distrust of the 
communist system across the border. 

“Most of us chose to come to Hoag 
Kong to escape communist oppres- 
sion.’ 1 he has said. “Some came across 
shark-infested waters. “They came to 
Hong Kong as a result of free choice, 
leaving our own country, coming to a 
British colony with ail the leuible things 
associated with colonial rule. 

“Why are we paying such a high 
price to be Chinese again?” he asked. 
*‘Wby is it that the modest degree of 

A banister trained by the British, Mr. 
Lee' is passionate about the need for 
Hong Kong's British-style legal system 
to be preserved and for protections and 
guarantees to be made explicit, not left 
to the whims of the colony’s new mas- 
ters. He served on the committee that 
drafted the Basic Law, the mini-con- 
stitution that sets ontthe terms of Hong 
Kong's untested autonomy formula. He 
knows the text almost by heart and finds 
fault with portions. 

He is particularly concerned about 
the omnibus Article 23, which says that 
the Chinese government for Hong Kong 
may pass laws “to prohibit any act of 
treason, secession, sedition, subversion 
against the central people’s govern- 
ment, or theft of state secrets.” 

Another clause, defining the powers 
of die new judiciary, says local courts 
will have no jurisdiction over “acts of 
state, such as defense and foreign af- 
fairs.” Mr. Lee sees both of those 
phrases as too vague and as potentially 
open to abuse. 

His outspokenness has made Mr. Lee 
one of the most popular politicians here, 
one who consistently won his legislative 
district by wide margins and led his 

world. Mr. Lee has received numerous 
awards and be has become a regular 
voice for democracy on overseas tele- 
vision and radio programs. He scored a 
political coop in April when he was gran- 
ted a meeting with President Bill Clinton 
at the White House — much to the an- 
noyance of Hong Kong’s new leaders. 

There are other politicians in favor of 
democracy here, and not all of them are 
members of Mr. Lee’s Democratic Party. 
But he has managed to retain his standing 
as the most prominent voice of the demo- 
cratic opposition and as a particular bane 
to the leadership in Beijing. 

A senior official of China's Foreign 
Ministry has labeled Mr. Lee a member 
of a “reactionary group” because of his 
past position as a deputy chairman of the 
Alliance in Support of the Patriotic 
Democratic Movement in China. It or- 
ganized annual candlelight vigils to 
commemorate the 1 989 massacre of stu- 
dents who were demonstrating for de- 
mocracy in Tiananmen Square in 

What China and the incoming Hong 
Kong government can do about Mr. 
Lee, however, remains problematic. His 
celebrity, even Mr. Lee concedes, af- 

Thc Amcianl 1‘ir-w 

Mr. Lee during a meeting with 
Madeleine Albright on Monday. 

fords him a degree of protection: He is 
highly unlikely to be jailed. 

Rather thfih face a direct attack, Mr. 
Lee could become subject to a kind of 
economic squeeze: the loss of client 
referrals to his law firm, for example, or 
a financially devastating series of law- 

He said he knew the risks of con- 
tinuing to speak out and offending 
China. But they are risks he is willing to 
take. “We will continue to speak the 
truth,” he said. “We will continue to be 
the voice of Hong Kong.” 

One Pact Signer 
Not Invited to Party. 

Wu.rhingtun Post Service 

HONG KONG — One of China’s 
key negotiators and the man who signed 
the treaty returning the British colony” 
Hong Kong to Chinese sovereignty was 
haired from attending the ceremonies 
Monday and Tuesday. 

The official, Zhao Ziyang, was then 
China ’s prime minister and he sat beside 
Prime Minister Margaret Thatcher in 
the Great Hall of the People on Dec. 1 9," 
1984, to sign the Joint Declaration that- 
ensured the handover of Hong Kong. 

At that time, Mr. Zhao’s mentoF,- 
China’s paramount leader, Deng Xiaop-' 
ing, stood by applauding the deal that he 
himself had' set in motion in talks with’ 
Mrs. Thatcher. 

But four-and-a-half years later, Mr. 
Zhao was ousted during the student-led 
demonstrations in Beijing's Tiananmen 
Square that rocked the government and 
ended in a massacre of protestors June 4. 
1989. by Chinese troops. Mr. Zhao was 
blamed for encouraging the protests and 
stripped of his party and government 

Eight years after his ouster, Mr. Zhao 
apparently still worries his successor, 
Jiang Zemin, president and Communist 
Party general secretary. Today, Mr. 
Zhao spends most of his time under a 
loose form of house arrest. 

An Outpouring of Joy 
Surges Through Beijing 

Crowd in Tiananmen Square Erupts in Cheers 

CouftM hv Onr Stuff Frtm [fafkOthn 

BEIJING — Chirm roared its approv- 
al at the moment of Hong Kong’s return 
to the mainland Tuesday, as 100.000 
people in Tiananmen Square here let 
loose a monumental cheer at the stroke 
of midnight 

Their eyes fixed on five giant tele- 
vision screens that carried live images 
of the official ceremony in Hong Kong, 
the crowds counted out the final 10 
seconds of British rule in the territory 
before erupting with joy. 

hand, or piled onto bicycles or pedicabs 
to make their way to Tiananmen Square 
where the bright lights and scaffolding 
were in place for Monday's celebra- 

It was easily the largest spontaneous 
gathering around the square since 1989. 
when a million or more students and 
workers gathered during the peak of the 
pro-democracy demonstrations that 
ended in a violent crackdown on June 4. 

The sudden throng of citizens seemed 
to surprise and overwhelm the thou- 

Their cheers were only drowned out sands of uniformed police officers who 
by a deafening barrage or fireworks that were maintaining rigid security restric- 
Jasted five minutes and lit up the night tions in the capital. For weeks, the city 

A handful of marchers in Taipei calling for reunification between Taiwan and China on the eve of the Hong 
Kong handover. On Saturday, 70,000 people demonstrated to assert Taiwan's independence from China. 

vsflftd G&h^TaiwanrieSvbat-'Mriliec. 
would accept no specific preconditions 
from Beijing. Mr.-Lee said- 
: 'Taiwaaa -s representative- at the baht£' 
over ceremonies is KooCheu-fu, a busi- 
ness leader and chairman of the semi- 
official body set up to negotiate with 
China. It is hoped mat his presence will 
help renew Qnnese-Taiwaoese con- 
tacts, which have been frozen since 
President Lee Teng-hui of Taiwan vis- 
ited the United States in 1995. 

Taiwan is exempting Hong Kong res- 
idents from the stringent restrictions 
placed on contacts with China, and a 

Taiwanese official' said Sunday ^thar 
Hong- Kong was -welcome to Open a 
trade and travel office-in Taipei. 

“Bot-Wtiliam U, bead of Hong Kong 
affairs far the cabinet's Mainland Af- 
fairs Council, wanted that China would 
have more leverage over Taiwan after 
recovering Hong Kong. 

Mr. Lee said that Hong Kong -Taiwan 
relations were an “important index” of 
the state of ties between Taiwan and 
China, and that non-interference by 
Beijing would be a positive sign of 
reconciliation between the two. 

But the spokesman reaffirmed the 

government's opposition to using - the- 
Hong: Kong model- to . reunify with 
Taiwan. He called on Beijing to “prag- 
matically modify its unrealistic designs 
and policies regarding Taiwan.” 

Taiwan’s Nationaliks fled the Com- 
munist takeover of the mainland in 
1949, and only recently dropped then- 
claim to represent China internation- 

Officials have been deliberately am- 
biguous about recognizing Beijing’s 
jurisdiction over Hong Kong, saying 
only that they are happy the territory 
will be ran by Chinese. 

Chinese Troops Pour In on Their Sacred Mission’ 

-* CtmpUn) C*r Surf F fra Ooparjtn 

li LOK MA CHAU. Hong Kong — - 
About 500 troops from toe People’s 
Liberation ' Army streamed across the 
border into Hong Kong on Monday, just 
hours ahead of the British colony’s China. 

,l At 9 P.M., a convoy rolled into the 
ratal New Territories in the noth. The 
tibops, many armed with automatic 
rifles, crossed the border seated in buses 
or standing in open trucks. 

* The eatly deployment of 509 troops 
had bear agreed on with Britain in ad- 
vance of die formal handover; an ad- 
ditional 4,000 troops were to arrive 
boors later by land, sea and air. 

~ Despite Beijing’s reassurances, many 
people said the most striking moment of 
me transfer of Hoag Kong would be the 
arrival of the People’s Liberation Army, 
frhich crashed dissenters in Tiananmen 
Square in 1989. 

- American and British officials have 
ctomplamed that some of the faces in 
me second wave wifi drive through urb- 
an areas ;of the reriitory in armored 
ytefckles. _ 

Hong Kong ’s new goyemment says 
that there is nothing to fear, and that the 
poops will bead directly to their bar- 
|cb, where they will be under strict 
discipline. • ; 

President Jiang Zemin of China is- 
sued a statement Monday telling the 
troops, that their mission “is sacred” 
and “the responsibility is great” - 

The statement read to the departing 
troops in Shenzhen city on the border 
with Hong Kong, ordered them to re- 
spect the territory’s laws, its people and 
its way of life. 

The departing British commander. 
Major General Bryan Dutton, has said 
the Chinese Army appears determined 
to overcome the stigma of its actions in 
Tiananmen Square by performing well 

Beijing sees the troop movements as 
a symbol of Chinese sovereignty over 
Hong Kong. 

But the soldiers could also be used to. 
pat down rims or. as Britain's were 
before them, help during natural dis- 
asters,. if requested to do so by Hong 
Kong’s new leader. 

Under British rule. Hong Kong’s 
governor was commander- in-chief. But 
under the Chinese, the olt&nate power 
over die garrison will rest with Beijing. 
Some fear it could use the troops to 
enforce itswiHon feeterritory. 

Beginning in April. Britain allowed 
196 unarmw Chinese soldiers to enter 
Hong Kong ahead of the change of flags 
to prepare for the garrison s arrival. 

They have kept a low profile. 

Ever since Captain Edward Belcher, 
a British naval officer, landed on Hong 
Kong in 1841, hoisted the Union Jack 
and toasted die queen, British troops 
have been involved in Hong Kong life. 

The force of 10,000 navy, air force 
and army personnel helped build roads, 
organized charity runs and won praise 
for flying helicopters that picked up 
sailors in distress, often in dangerous 

China has not said how many soldiers 
it plans to station here, but it has said 
their number will not exceed Britain’s 
level of 10,000 navy, air force and army 

Some people are neivous all the 

“I can’t accept the way the PLA will 
enter Hong Kong.” said Lea Yip, 25, a 
social worker in Statue Square, the busi- 
ness district 

“They will come in too fast, too 
many at a time,” she added. “They 
don’t understand Hong Kong people are 
afraid of the PLA.” 

A businessman, Kwan Kim-man, 42. 
said he, too, was worried. “There's no 
need for them to be so high-profile,’ ’ he 
said, adding that since fee Tiananmen 
crackdown, “Their image among Hong 
Kong people has been swept away.” 

The troops received a rousing send- 
off in Huang Gang on fee Chinese side 
of fee border, with twirling lion dancers 
and children banging drams and waving 
red ribbons. 

The Hong Kong side of the border, in 
a restricted area, had a large banner 
saying “Warmly Welcome People’s 
Uberation Army,” but no crowds or 

But farther into Hong Kong there was 
a festive mood. Fireworks could be seen 
and villagers had prepared a variety of 
celebrations. People lined the roads in 
some places hoping ro catch a glimpse 
of the Chinese soldiers. 

And banners and posters lined fee 
roads cheering Hong Kong’s pending 
reunification wife fee mainland. 
Flowers, signs and colorful ribbons also 
dotted the roads that fee soldiers passed 
on fee way to barracks. 

A villager near the Sek Kong military 
base said: “People have been celeb- 
rating for two days. Everybody is throw- 
ing free dinners in fee villages.” 

Many of fee 4,700 Chinese troops in 
Hong Kong after fee handover are ex- 
pected to be stationed at Sek Kong, a 
major military and air force base used 
by fee British ganison during colonial 
rule. ( Reuters. A P) 

lasted five minutes and lit up rhe night 

As soon as the display ended, silence 
descended on the 45 hectare ( 100-acre) 
concourse as people turned once again 
to the television screens to listen to the 
speech of President Jiang Zemin. 

■ The^silencfe ' was* brokdv onfy by 
snatches bf enthusiastic applause as Mr. 

• Jiang hailed an event that would “go 
down in-the'ahnaJs of history as a day 
that merits eternal memory.” 

A song-and-dance extravaganza 
broadcast live on national television il- 
luminated the skies above Tiananmen 
Square with laser lights, red lanterns and 
fireworks. A lavish stage show mixed 
traditional Chinese opera wife folk 
songs, pop singers and go-go dancers in 
silver hot pants. 

Banners, lights, flowers and legions 
of scarlet Chinese flags adorned the 
capital in anticipation of the midnight 
transfer of power. Children and adults 
clasped small Hong Kong and Chinese 
flags sold by sidewalk vendors. 

The government-run newspaper 
China Dally declared the event a “wa- 
tershed day for history books.” 

* ‘The return of Hong Kong realizes a 
long-cherished dream of all people of 
Chinese origin,” it said. “We share 
with the world the happiness of the 
grand family reunion.” 

China’s Communist rulers have 
claimed Hong Kong's return to Chinese 
rule after 156 years as a British colony 
as their greatest accomplishment since 
they took power in 1949. 

“It is only under the leadership of the 
Communist Party of China that fee cen- 
tury-old dream has materialized,” fee 
party newspaper People’s Daily said in 
a front-page commentary Monday. 
“The CPC is the force at the core for 
reunifying the motherland and invig- 
orating fee Chinese nation.” 

Determined to ensure a smooth 
takeover, the authorities in Beijing 
urged people to stay home and watch the 
festivities in Tiananmen Square on tele- 
vision. (AFP. AP) 

■ A Celebration of Their Own 

Patrick E. Tyler of The New York 
Times reported earlier: 

In an enormous display of patriotic 
exuberance, hundreds of thousands of 
people, most of them local residents, 
flooded into the streets of the Chinese ■ 
capital Sunday night, walking hand in 

government has been issuing warnings 
to residents to stay off fee streets during 
the two-day celebration feat began. 
Monday. But Beijingers seem to have an 
instinct about fee boundaries of police 
tolerance, and Sunday night they had 
their way: - ■ j 

A sweltering summer heat wave and 
pent-up desire to join in the national 
celebration impelled a significant por- 
tion of fee city’s residents to flee their 
stifling, alleyway houses and apartment 
buildings and head for the broad plain of 
Tiananmen to have a look. 

* ‘The ordinary people will nor be able 
to participate in fee big show on Tianan- 
men Square tomorrow night." said Guq 
Qilin, a 30-year-old shop owner, as she 
pedaled carefully through fee dense 
crowd in front of fee Great Hall of fee 
People under the watchful eye of the 
police cordon lining the square. 
“People are just so happy about Hong 
Kong’s return to fee motherland feat 
they just came out tonight. It is a spon- 
taneous thing. The police have nothing 
to wony about, but of course they seem 
a Little nervous.” 

A young aircraft mechanic who 
would only give his name as Mr. Ma, 
said: “We are patriotic Chinese and so 
we came tonight. He, his wife and 7- 
year-old son were having their photo 
taken in front of fee clock when a police 
car screeched to a halt and an officer 
hoisted his own son onto fee hood for a 
portrait with his wife. 

A senior police officer stationed at a 
mobile command post near fee giant 
portrait of Mao that hangs from fee Gate 
of Heavenly Peace, said the crowds 
peaked around 8 P.M., when some- 
where between 500,000 and one million 
people were in the square or on the 
major thoroughfares approaching it. 

“People came to see fee lights and to 
have their picture taken,” fee officer 
said.' “Most are families and we def- 
initely are not having any problems, 
except wife traffic.” 

Instead of trying to block the masses 
who swarmed into fee city’s bike lanes, 
the police allowed them to virtually take 
over a four-mile stretch of the Avenue 
of Eternal Peace that bisects fee center 
of Beijing. 

Shortly after 6 P.M., all eight lanes of 
fee boulevard were jammed wife walk- 
ers and bicyclers for fee next three 

Comprehensive yet concise, informed yet impartial, the affairs of the world unfold on the pages of the Worlds Daily Newspaper 

r! J 


Yeltsin’s Daughter Gets 
A Post in the Spotlight 

Backer of Liberals Becomes His Adviser 

By Daniel Williams 

Washington Post Service 

MOSCOW— President Boris Yeltsin 
designated his daughter, Tatyana Dy- 
achenko, already considered a behind- 
the-scenes political force, to be an of- 
ficial adviser, a government spokesman 
announced Monday. 

The spokesman said she would tend to 
Mr. Yeltsin's public image. 

But observers in Moscow regarded it 
more likely that she will cany on her 
previous informal rote as an advocate to 
Mr. Yeltsin for political and economic 

has been one of Yeltsin’s pledges,” said 
Sergei Markov, a scholar at the Carnegie 
Endowment research center in Mos- 


Mr. Markov pointed out one difficulty 
that President Yeltsin might have had in 
reaching such a decision, made a year 
after his re-election. 

In die 1980s, Mr. Yeltsin chided his 
rival, Mikhail Gorbachev, head of the 
Soviet Communist Party, for letting his 
wife, Raisa, influence him. 

“Yeltsin has to swallow his words 
now that he has named his daughter to a 
position,” Mr. Markov said.- 
The daughter is a university-educated 

factions sbe favors in his government. 

She has played court lobbyist for more mathematician and computer program- 
than a year on behalf of liberal economic mer who once held a job calculating 
reform backed by Anatoli Chubais, both missile trajectories. 

before and after the 1996 presidential 

Sbe told reporters at the Kremlin on 
Monday that sne would continue to back 
the economic team beaded by Mr. 
Chubais. That ream is currently con- 
centrating nationwide on collecting 
taxes from Russia's large and powerful 

“I like this team very much," she 

Mrs. Dyachenko, 37, remarked that 
she was following the example of the 

daughter of President Jacques Chirac of 
France, who is adviser to ner father. 

Later, during an interview on tele- 
vision, Mrs. Dyachenko defended the 
appointment, which some people are 
likely to regard as nepotism, a problem 
in Russia over the years. 

“I understand full well that the pres- 
ident appointed me as adviser not be- 
cause I am so smart and talented," she 
said “But this is more comfortable for 
the president. That’s what I think. 

"And I think he has the right to this: 
To recruit a person with whom it is 
comfortable for him to work." 

Observers said the decision to give the 
daughter an official position at least 
overcame a controversy over her being a 
force behind the scenes. 

Russia has a sometimes unhappy his- 
tory in both czarist times and during the 
Soviet era of influence on rulers by 
shadowy family members. 

‘‘This is a move for openness, which 

In the months leading up to the pivotal 
elections last year, Mrs. Dyachenko 
moved gradually into the limelight, 
urged on by liberals in order to break 
through a wall of hard-liners who were 
surrounding Mr. Yeltsin and some felt, 
harming his election chances. 

She helped nurse her father during his 
recovery from heart surgery, gaining ac- 
cess to him when few others could and 
further cementing a role of political con- 

Russian newspapers said she per- 
suaded Mr. Yeltsin to appoint Mr. 
Chubais as his chief of staff and later to 
jettison the then-security adviser, Al- 
exander Lebed who had become a pop- 
ular figure in the government by ending 
the war in Chechnya and for his tough 
anti-corruption stand 

Mr. Lebed said Mrs. Dyachenko per- 
suaded Mr. Yeltsin to oust him, at Mr. 
Chubais's behest. 

"There isn’t a woman who can’t be 
swayed," be said with a touch of sex- 


FINAL VOYAGE FOR COUSTEAU — The coffin of the French undersea explorer and environmentalist 
Jacques- Yves Cousteau being carried into Notre Dame Cathedral in Paris on Monday for a funeral mass. 

Clinton Seeks 
Tax Accord 


Without Veto 

How CoB£ 
Into ? 

By Brian Knowlton 

Imernationu! Heruld Tribune 

Election Fever Is Seizing Mexico City 

WASHINGTON - President Bil^j; 
Clinton said Monday that the tax plan&.- t ;j 
approved by Congress did not 
enough to help wage earners or to im-^ J 
prove educational opportunities, but that , j 
he hoped to be able to woik out dSf : j^ 
ferences with Republicans without re~£. ‘ 
sorting to his veto power. . * "VI 

"America's families deserve -a laj^,- ■! 
cut, and they deserve one that reflects; J i 
their values,” Mr. Clinton said. ^ { 

He advanced a plan that he said act.j! j 
dressed inequities in the tax cut bfiQs^ T ■ 
approved by the two chambers. HisC-. . 
ideas, backed by the potential if not fot^, \ 
threat of a veto, are sure to cany weighty ; 
as House and Senate negotiators meet,' = 
next weak to reconcile differences. ■ 

Mr. Clinton’s plan, like both con - 3 * 
gressionai versions, is intended to givey 
Americans their first substantial tax cuts j# 

1 DO 1 mliila kcinmnH IWIopqI ■ 1 

i nit-ri ._ os « r , s |c\ai 




*rr l 
juriM the 

HiiW r£ ;“ r *C v . : -T_* J-’i2>cd 

since 1981, while bringing the federal .{ 
budget into balance by 2002. All .three^ 

* ■ 

r Tr-lriwN ^' 5 ^ 1 

* w i ■ .-I crrtmen* 
i \»; v 

r.c -.'ur’-iwipat 

By Sam Dillon 

New York Times Service 

MEXICO CITY — Hundreds of thou- 
sands of Mexico City residents poured 
into the central plaza during the weekend 
for mass demonstrations called by each 
of the three main political parties, bring- 
ing the city’s first mayoral campaign of 
modern times to a tumultuous climax 
before Sunday's balloting. 

Cuauhtemoc Cardenas Solorzano, the 
leftist candidate who has a broad lead in 

Published reports also implicated Mr. 
Yeltsin's daughter in the dismissal of 

opinion polls, used his last major speech 

Mr. Yeltsin's bodyguard, Alexander 
Korzhakov, who has since sharply crit- 
icized Mr. Yeltsin and his daughter. 

Mrs. Dyachenko, who is married and 
has two children, told the television in- 
terviewer Monday that her access and 
familiarity with her father could help her 
£&t across the point of view of her polit- 
ical allies. 

the campaign on Saturday to. con- 
gratulate President Ernesto Zedillo for 
working to set the stage for fair elec- 

But he also warned that his backers 
would defend their votes if there was 
anything like the electoral fraud that 
many of his supporters believe robbed 
Mr. Cardenas of victory in the first of his 
two presidential campaigns, in 1988. 

“We’ve made the decision that our 

vores will count,” Mr. Cardenas told the 
throngs who overwhelmed the Zocalo 
plaza and spilled down side streets in the 
colonial city center that the Spanish con- 
quistadores built on the ruins of the 
Aztec capital. ‘‘We’U make our votes 
count, ana we'll not take one step back in 
defending them.” 

Estimates by newspapers and public 
officials of the size of the crowd that 
cheered Mr. Cardenas* speech ranged 
from 90,000 to 150,000. 

The size and enthusiasm of all three of 
the weekend's massed assemblages sug- 
gested the intensity of the civic fervor 
washing over Mexico in advance of the 
nationwide balloting scheduled for July 
6 . Voters will elect not only the Mexico 
City mayor but also a new 500-member 
Congress, one-quarter of the 128-mem- 
ber Senate and six out of 31 state gov- 

Electoral reforms enacted last year 
have created die conditions for what may 
be the fairest balloting yet in a country 

LEADERS: Hong Kong’s New Riders Will Put Business First 

Continued from Page 1 

develop, you had -to letthemaiket tpke 

sitioning the territory to take on -new 
regional competitors. 

Mr. Tung, in speeches and interviews, 
has said that Hong Kong has become too 
politicized in recent years and that he 
wants to lower the political noise level. 
He has said that freedom and liberty 
must be balanced against social order 
and stability, and that the territory must 
develop true democracy, but slowly. 

His advisers are of a similar view; to 
them, democracy seems, a secondary 
concern to efficiency and results. 

“In recent years, as a resalt of polit- 
ical developments, you have seen to 
some extent the polarization of Hong 
Kong.’ ' said Raymond Chien, 45, a busi- 
nessman who was an adviser to the Brit- 
ish governor and is also a member of Mr. 
Tung's council of advisers. 

“Lf you have a sense thar we’re all in 
this together, there’s nothing wrong with 
democracy," Mr. Chien said. “If you 
have adversarial democracy, like you 
have in the West, then it might be too 
high a price to pay." 

While many of these new Tung aides 
benefited under the old British system — 
some. like Mr. Chien, held appointed 
posts in the colonial administration — 
they are more attuned to China and its 
vast potential than the Hong Kong elite 
of old, whose orientation and way of 
thinking, like their titles of nobility, 
came from London. The new breed 
faults the departed colonial government 
for allowing long-standing social prob- 
lems to remain unresolved, and they say 
they are committed' to a more inter- 
ventionist government rale. 

To handle the thorny question of 
housing — its affordability and supply 
here in the world's most expensive hous- 
ing market — Mr. Tung has tapped a 
property surveyor, Leung Chun-ying, 
known as C. Y. Leung. The savvy and 
wealthy Mr. Leung, 42, owner of a prop- 
erty concern, is one of nine deputy chair- 
men of the group of Chinese officials 
and Hong Kong advisers laying the 
groundwork for the transition. 

“It’s a long-term project," Mr. Leung 
said recently. “I'm looking at existing 
conditions and collecting ail views and 
then will look at how Hong Kong should 
be in 20 or 30 years. 

lop, you 

over. One of the things I would like to 

see is for the schools to have a lot more- 

Another of the key “livelihood” is- 
sues that will command much of the new 
government’s attention is welfare 
spending and care for the elderly. There 
have been growing demands recently 
that the government — flush with a 
projected $7.8 billion surplus and more 
than $22 billion in cash reserves — 
increase its monthly $266 public as- 
sistance payments to (he poor and el- 
derly. To deal with the issue, Mr. Tung 
has named Tam Yiu-chung, 47, a veteran 
trade unionist and deputy chairman of 
Hong Kong's largest pro-China political 
party, as his chief adviser on welfare 

Mr. Tam often has been described as 
the loae populist voice on a team of 
businessmen and technocrats. 

"Maybe you might say they represent 
the business class,” Mr. Taro said of his 
colleagues in the inner circle. "But ac- 

cording to my experience, their standing 

is not so clear. We have consideration 
for all of Hong Kong. Not just part of 
Hong Kong. And not just the business 

"I represent the workers, the trade 
unions," Mr. Tam said. “I also try my 
best to lobby ray colleagues about the 
workers' point of view, their situation.” 

Some members of Mr. Tung’s cabinet 
chafe at the notion that theirs is an elitist 
group out of touch with Hong Kong. 

“No one bothered to criticize 150 years"; 
of past executive councils,' * said a Tung 
adviser, Nellie Fong, an accountant with 
Arthur Andersen & Co. and pro-China 
figure with close links to Beijing. 

But the apparently conservative, pro- 
business bent of Mr. Tung and his inner 
circle worries some of Hong Kong’s 
traditional pro-China stalwarts, who 
have roots in the populist, left-wing un- 
ion and student movements of the 1 960s 
and ’70s. 

"If we find that he is biased toward 
business, that he is biased toward the 
more conservative elements of our com- 
munity, we will be among those who 
stand up to him and say no," said Tsang 
Yok-tsing, a member of the appointed 
legislature and chairman of the terri- 
tory's largest pro-China political party. 

Two older, familiar faces round out 
Mr. Tung’s inner circle — the retired 
chief justice Sir Yang Ti-liang, 67, and a 
former adviser to the colonial govern- 
ment, Sir Tung Sze-yuen, who is almost 

Mr. Tsang said some observers might 
have a tnisimpression that Mr. Tung is 
simply following edicts from Beijing or 
acting against his own instincts. 

“I think he has the full trust of the 
Chinese government,” Mr. Tsang said. 

"If sometimes Mr. Tung seems to be 
toeing Beijing's line," Mr. Tsang added, 
"maybe it's because he has a mind-set 
veiy similar to the Chinese leaders in 
Beijing rather than feeling compelled to 
carry out orders” from Beijing. 

Germany Loses 
Round Over Web 

- ■ New York Tmes-Service - 

BERLIN — In a setback forGeaP 
man prosecutors trying to block 
what they consider to be dangerous 
material on the Internet, a judge 
dismissed criminal charges Monday 
against a political activist who had 
provided an electronic link on her 
"home page’ ' to prohibited articles 
about the derailing of trains. 

The decision, the first of its type 
in Germany, was a victory for An- 
gela Marquardt, a university student 
who had ignored police demands to 
stop providing a link on her Web 
site to the leftist magazine RadikaL 

But because the ruling was based 
on inconsistencies in the prosecu- 
tors’ case, attorneys for both sides 
said the legal and political battle 
over restricting material on the In- 
ternet is far from over. 

Ms. Marquardt, a leftist activist, 
ran afoul of the authorities last year 
when she provided a link to Radikal, 
which had published an article 
about techniques for derailing trains 
and making bombs. 

The Federal Criminal Office in 
Germany has demanded that all In- 
ternet access providers block access 
to the Radikal site in the Nether- 

Prosecutors did not say if they 
would appeal the Berlin court's de- 

known for its pioneering techniques of 
electoral thievery. 

Under the new conditions, opinion 
polls suggest, there may be the weakest 
showing to date by the governing In- 
stitutional Revolutionary Party, or PRI, 
whose successive presidents have ruled 
for 68 years, always with absolute and 
compliant congressional majorities. 

On Saturday evening, hours after the 
sea of Cardenas backers had drained 
from the Zocalo, a vast new crowd of 
activists from the conservative National 
Action Party trudged down the city cen- 
ter's cobbled streets, and ag ain the plaza 
was filled. 

"What we’ re seeing is the death of the 
political system dominated by the PRI,' ’ 
Felipe Calderon Hinojosa, the National 
Action president, told the crowd, which 
endured a light evening shower. “We’re 
going to bury it on July 6 ." 

On Sunday, in a third rally, tens of 
thousands of governing-party activists 
flooded the Zocalo once again. They 
heard Alfredo Del Mazo, a former state 
of Mexico governor who is the party’s 
mayoral candidate, argue that this year's 
campaign had re invigorated the gov- 
erning party through fresh contact with 
its grass-roots supporters." • 

"We’re guided by anew spirit of self- 

versions call for net tax savings overfwe £ > 
yerasof about $85 billion.: 

Mr. Clinton said Monday that his ap*y ’. 
proach would help the middie class and^, ; 
the working poor pay the costs of higher^ J 
education, and help ensure health carej ■ 
for poor children. At the same time, h©j . 
said his plan would “honor our com-*, ■ 
micment to bipartisanship” by includ- ‘ 
ing, but modifying, the long-sought Re-., 
publican goals of lowering the. capita^ 
gains and estate taxes. 

Democrats had complained that the- 
plans passed by the Republican-con-- 
trolled Congress unfair!/ favored the* 
wealthy. Republicans insist that middle-*" ^ 

canine r Ni— 

500 ^. ^ TrarviE-M t 1 ' *n 

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Foes Using 

class taxpayers would also benefit 
Mr. Clinton cm Monday criticized 


parts of the recently passed tax bills. _ 
“They do an inadequate job of open-/ 
ing the doora to college.” he said. "They 
direct far too little relief to the middle^ 
class. They include time bomb tax cuts 
that threaten to explode the deficit" r. 
But die bills “contain many good,; 
elements," be added ; 

Asked about a veto, he replied: “£> 
don’t want to start talking about veto 
now. I want to craft an agreement con- -t ; 
sis tent with the budget agreement” that; 
can "be passed with a bipartisan ma-/. ] 
jority of both sides.” /i 

The Senate bill passed last week wifo£ 

29 of 45 Democrats joining 51 Repub- " 
licans. The House bill passed earlier on 

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that takes its strength from daffy contact 
with the people." 

Although the weekend rallies cli- 
maxed Mexico City’s mayoral and con- 
gressional campaigns, all three mayoral 
and many congressional candidates 
across the nation of 94 million people 
have announced plans to continue their 
electioneering through Wednesday. 
Campaigning is forbidden during the 
three days before the voting, as is the 
publication of opinion polls during the 
week preceding the vote. 

The results of the final opinion poll of 
the campaign, by the Mexico City news- 
paper Reforma, were published last Fri- 
day. Mr. Cardenas was preferred by 39 
percent of those surveyed, Mr. Del Mazo 
by 16 percent and the National Action 
candidate, Carlos Castillo Peraza, by 15 

Nineteen percent were undecided, and 
the rest were for the candidates of small 

The Reforma survey indicated that 37 
percent of potential voters intended to 
vote for governing-party congressional 
candidates, a decline of nearly five per- 
centage points in 10 days. Thirty percent 
of those surveyed said they would vote 
for National Action candidates, and 26 
percent for the congressional candidates 
of Mr. Cardenas’s Party of the Demo- 
cratic Revolution. 


Mr. Clinton had said after the votes irT 
the two chambers that he was "frankly-j 
quite optimistic.” His comments Mon- I 
day, however, made it clear that he ex- { 
peels a solution chat will take greater 
account of White House priorities. , 
The White House Said that under his > 
plan, 67 percent of the $85 billion tax cut \ 
would go to families in the middle 60 
percent income brackets. All three plans 
offer about $135 billion in tax cuts over r 
five years, along with $50 billion in | 
revenue- raising proposals. t 

Mr. Clinton's proposal Monday [ 
sought to expand or protea provisions j 
for college scholarships and tax breaks j- 
for taxpayers with children. J 

On education, Mr. Clinton slightly 1 
modified a proposed $35 billion schol- ! 
arship pragma for college students and | 
said he would convert a proposed tax : 
deduction for tuition into a tax credit in | 
the junior and senior years. \ 

He would extend the credits for tax- j 
payers with children to cover a larger 1 
pool of children. To help low-income [ 
workers, it would be partially refundable j.~ 
against payroll taxes. | 

He said that revenue from a 20-cent-a- f 
pack increase in the federal cigarette tax, ! 
included in the Senate bill, should be 1 
earmarked for health insurance forchii- * 
dren not now covered and other youth [ 
and public health initiatives. ' 

Palestinian E 
By PI A) Fora 

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TURKEY: His Secular Cabinet Approved, Yilmas Takes Power Vowing to End Experiment With Islamic Ride 

Continued from Page 1 

the pro- Islamic policies that 
Mr. Erbakan and his Welfare Party fol- 
lowed over the last year as divisive and 

"Welfare is responsible for the ten- 
sion that has spread across this coun- 
try,” Mr. Yffmaz said. “It is time for this 
party to move into opposition.” 

The departing government bad stirred 
domestic conflict and raised internation- 
al concern by making overtures to Libya 
and Iran, advocating greater emphasis on 

Although Mr. Yilmaz’s ascendance 
means that Turkey will now have a fully 
secular government, it does not put a 
permanent end to Islamic prospects here. 
Leaders of the Welfare Party said they 
were continuing to gain strength, and 
predicted that in the next election the 
party would win far more than the 2 ] 
percent of the vote it took in 1995. 

It is not clear when the election will 
take place. Some leading members of the 
incoming coalition want it soon, while 
others want to wait a year or more. 

In secular political circles Monday, 
there was widespread relief that a new 

ers or their supporters. The enthusiasm, 
however, was tempered by doubts about 
Mr. Yilmaz, who is not considered to be 

the dynamic figure some believe is nec- 
ary to control 

“It’s not how Hong Kong people are Islamic education and naming religious government had finally been formed 
used to looking at issues, * ’ he added. “It conservatives to government posts. without the participation of Islamic lead- 

rithou t the participation of Islamic lead- 

essary to contront the rise of Islamic 
political power. He has a reputation as 
phlegmatic and cautious rather than ima- 
ginative or inspirational. 

Mr. Yilmaz, 50, began his rise to 
power in the 1980s under the patronage 
of Tuigut OzaL, then the prime minister. 
He held several posts under Mr. Ozal, and 
during the late 1980s was the youngest 
foreign minister in Europe. In that post he 
took strongly pro-Western stands. 

He served as prime minister in 1991 
and again in 1995, but both of his gov- 

ernments collapsed after just a few 

The government he unveiled Monday 
is a coalition among his center-right 
Motherland Party and two smaller 
parties. A leader of each of those parties 
became deputy prime minister. 

One is another former prime minister, 
Bulent Ecevit, a veteran of three decades 
in Turkish politics who heads the Demo- 
cratic Left Party and is best known 
abroad for having ordered Turkey's 
1974 invasion of Cyprus. The other is 
Ismet Sezgin, another veteran who rep- 
resents the centrist Democratic Turkey 
Party. He will also serve as defense 

saddens me to see how over the last 15 
years, since 1982, whenever questions 

Cargo Ship That Rammed the Spaee Station During a Docking Whs Overloaded 

The new government will also have to 
grapple with complex questions of over- 
hauling the territory’s education system, 
including building more schools, adopt- 
ing a new language policy, improving 
students’ technological skills and ac- 
commodating the thousands of mainland 
children expected to flood into Hong 
Kong to join their parents. 

Mr. Tung has tapped a Chase Man- 
hattan Bank managing director, Antony 
Leung, chairman of a commission on 
university funding, to be his adviser on 
education policy. 

"I see that we should have a clear 
direction of what education should be - 
like long-term,” Mr. Leung said re- 
cently at his Chase Manhattan office 
overlooking the bustling Victoria Har- 
bor. “I am a true believer in the market 
economy. Very early in my career, 1 was 
convinced if you wanted economies to 

Continued from Page 1 

Mir over the last 1 1 years. 

Another is to be launched this Sat- 
urday from the Baikonur Space Center in 
Kazakhstan to take critical repair ma- 
terials to the Mir. 

The freighters are unmann ed. After 
use, the Progress M-34 was loaded with 
garbage and will be sent out of orbit to 
burn up on re-entry into foe atmo- 

Interfax, quoting a source in Moscow, 
reported that during the practice docking 
edure, the crew "neglected" the 

was heavier than usual," Interfax said. 

A Western source in Moscow said that 
the Progress was heavily loaded but ad- 
ded that the crew of the Mir was fully 
aware of the extra weight. 

Russian officials have said that the 
Progress is a seven-ton vessel. The Mir, 
a hodge-podge of six modules hooked 
together, now weighs about 100 tons. 

In the past, weights have been care- 
fully measured aboard Russian space 
vessels. Cosmonauts have been forced to 
lose a single pound in order to fly. 

It is not know why the Progress was 
heavily loaded, but since the vessel was 

ict that the Progress ship was "over- to bum up in the atmosphere, the weight 
loaded by 900 kilograms, or nearly one may not have been viewed as impor- 



Interfax quoted the source as saying 
that “this resulted in an accident” 
“Russian cosmonaut Vasili Tsibliyev 
found it difficult to handle a craft that 

The Western source said that even if 
the crew knew of the extra weight, it 
might have had a bearing on foe ac- 

But Mr. Blagov, deputy chief of 
flights, disagreed. 

“It’s not yet an established fact, it’s 
one of the possibilities,” he said of foe 
overweigh L “My personal opinion is 
that if this were the case it would have 
led to some overuse of fuel equal to the 
parentage of overload. Progress weighs 
seven tons. Even if it were half a ton 
overloaded, that’s just 8 percent. Ac- 
cording to that, some consumption of foe 
fuel would have been increased," 

He said foe Progress, which has its 
own thrusters, would have been alloc- 
ated more foel if foe weight were so 
great. "No, it could not have led to this" 
accident, he said. 

Mr. Blagov said that foe Russian com- 
mission was still studying foe facts and 
that "we have not found foe cause yet, 
we are not ready to answer.” 

"In my opinion,” he said, “it is pre- 

mature to name foe cause. ” 

Russian officials have said they were 
studying telemetry data from the Pro- 
gress M-34 in recent days to try to un- 
derstand better what caused foe accident 
The ship is to be ditched in the ocean 

Meanwhile, special cables and spare 
parts were being readied for the launch 
of foe new Progress vessel. It will rake 
two days to reach the Mir. The two 
Russian crew members are to install a 
specially modified hatch with cables 
running through it in foe passageway to 
foe airless Spektr. They must carry out 
foe operation wearing bulky pressurized 
space suits, for which they arc beginnine 
to train. e 

M r :_ F of Ie not participate, but will 

This three-party coalition will be sup- 
ported, but not joined in the cabinet, by 
foe Republican People’s Party,, Mr. 
Ecevit’ s rival on foe left. 

When Mr. Erbakan submitted his" h 
resignation June 18, he said be expected , 
his coalition partner, Tansu Ciller, to be i 1 
named prime minister in his place. That • 
would have allowed the pro-IslamicJ j 
government to remain in power, with U 
only a reshuffle at foe top. \ 

President Demire l, however, refused ( 
to name Mrs. Ciller. She may turn out to i -.! 
be the biggest loser in the carrent tran- i" r - 
s i tion, in part because Mr. Yilmaz has in j 
the past supported efforts to strip her of i 
her parliamentary immunity so the Su-4 ? 
preme Court can investigate corruption .1 Jj 
charges against her. - r f '. J 

Mrs. Ciller reacted angrily to the pres— , J 
tdept’s refusal to name her, cahmg 
disgraceful to democracy” andy“ 
&reat blow to future generations. ’’ j 1 - 
Although Mr. Yilmaz’s sui 
forming a government means L, 
key has overcome its immediate 
many commentators and poKtician^ei 
said the country still faces serious ~“’ 1 
i cal problems. They believe that i 
problems are not addressed, pro-I 
sentiment may continue to'grow.J 
One of Turkey’s greatest piril 
is our lack of statesmen,” Karnrani,. 

3 Parliament from foe Moth 

erland Party said. “In the past Wes 
w e i° P r ^ uce diem, but not any 
e aon t have decisive ot-inspirt . 
leaders to whom we can turn at tfifScu 


Mr k.,.!w 

i.-* j| L j: . ;: k.. 

a.ufoor;:' :ook 
^ e-: Hank ani Gaza 

J :ccoru a :rh 1 st; 

Jta i'-.iesti-iar. Audi 

r Oittvrrv melt 

^•nnev" t, with the tea 
,T *mander in Ga 
leader. Ys 
^ 'bat of: i .ers invc 
,rs * 3 «n a mil.un cot 

ffgeria Seem 

kill 20 Extra 

— At ieas 

h err , ms * er * killed u 

J wurny force* east a 

t Muncfcv 

f°rce>. whoa 

?"ci.H ,Uira ' seize 

eluding assault rifles i 
,n,: paper said. 

,hJX J f i ! yEI ' Wi,Bn s“ 

7 Mamie militants 
^untv forces in Saida 


June ^ Ufil >‘ b 
amhi,.L other peop 


i , a, nbiKh 

■transjw,:^ Su ^PCCted 
L n * Medical sot 


ca .P sule attached to 

Asked if he thought Mr. Yilmaz* _ 
now rise to Fill that role. Mb : 1 oa 

Mir, in case the "procedure goesawivand He is to leader of fflyparifr 

they have to return to Earth. y ° not be appropriate for me 

comment on that. 





l Seeks W Describes 
cord How Congo 
ongresi Ways Inquiry 
it Veto In* 0 Massacres 

= — —5 — By John Pomfret. 

Knowlton Washm^hm Post Service 

tirahl Tr-brr - - 

— a KINSHASA, Congo — A planned 
'-f PresKli.t ; - ^United' Nations investigation into al- 
ly that the u legations that troops loyal to the newly 
ness did nor ( ■ installed president, Laurent Kabila. 

-earners ■„ ir * jnassacred hundreds or thousands of 
JportUOJUe- :. IJl Hutu refugees dozing their victorious 
le to wosl conquest is being delayed by Mr. Kab- 

biicans wi; jja's government, according to the UN 
ower. and other officials, 

dies descrv-- a ( Despite personal assurances from 
re one thu? ■■ Mr. Kabila to both Bill Richardson, the 

‘linron said. ' " chief U.S. delegate to the United Na- 
ian that he .j ,, nons, and Secretary-General Kofi An- 
n the tax „ tl . \' t : pan, Mrl Kabila’s government has re- 

*0 channel ^ fused ter allow the investigation to 
potential ;j , r " proceed, officials familiar with the in- 
line to c.irn , quiryszdd. Indeed, since arriving in Kin- 
e negotiator , 'f shasaon June 20, a UN team of forensic 
•ledilfereiKi. scientists and other experts has met with 

in, lik? bfir. „ government officials only three times, 
hi intended .. . The United Nations said Monday that 

rc\ f- '• t ' 
’ At - •» -1 

,TL- ’■■»«»« . •- .-y*. ■ 

*' -tr. 

dal ON investigator. Roberto Garre ton, 
a Chilean lawyer who reported evidence 
of mass killings of Rwandan refugees in 
Congo in May. The government has also 
demanded that the investigation be ex- 
panded to include events in this region 
stilting m March 1993, not September 
1996, as. mandated by the UN Com- 
mission on Human Rights. 

If the United Nations were to bow to 
such demands, it would be allowing the 
subject of an investigation to set the 

* ■ «rvr„. - ^ t 

, -v •• y- ' ~o 

• / ti. ' - — —V / 

* • * „• „ * - - * '• 

• - - - , . ' •. *. .. •>- /Jf, .A wi- 

• ■ • * / • .* T- v * xk " } 'i %'•:-- 

/ ’ .• '* . - V * y .. «ft' " *' . V */ • l'f*» ^ •* ** 


■9 r r • <■ < 

.- y • ^L. . • JN**| 

*-* iii 

«;■ *** ' 
•• -j. ■ 

" y S* *' 

RaoaT MotVThe AmodBled Picw 

ON THE MARCH IN KHARTOUM — A battalion of commandos parading Monday in Khartoum to 
mark the eighth anniversary of die military coup that led to the present government’s coining to power. 

terms of that investigation and decide 
who will carry it oat, which would not 
bode well for either its objectivity or its 
thoroughness. In addition, the S3 mem- 
bers of the Commission on Human 
Rights would have to reconvene and 
vote unanimously to modify the res- 
olution it jpassed on April 15 ordering 
the investigation, a process that could 
take weeks or months. 

The recalcitrance of Mr. Kabila’s 
government will make it impossible for 
the investigation to begin July 7, the 
date agreed upon by Mr. Kabila and Mr. 
Richardson m their meeting on June 7 in 
Lubumbashi, in southern Congo. Mr. 
Kabila also promised Mr. Annan that 
the inquiry wonld be expedited when he 
met the UN chief in Harare, Zimbabwe, 
at a meeting of the Organization of 

African Unity on June 3. Congolese 
human-rights officials and West Euro- 
pean diplomats said Monday night that 
the investigation was a critical first step 
for Mr. Kabila’s new government on the 
road to international recognition. 

Mr. Kabila was lauded for toppling 
the corrupt government of Plesrdem 
Mobutu Sese Seko. Bat the massacres 
said to have been carried out by his 
troops against Hutu refugees from 
neighboring Rwanda, and a series of 
recent roundups and disappearances 
here in the capital have raised questions 
about his coannilment to human rights 
and democratization. 

Both the European Union and the 
United States have conditioned aid for 
this impoverished country on the suc- 
cess of the UN inquiry. 

Foes Using Mercenaries, Brazzaville Rebels Assert 

* The Associated Press 

’BR AZZA V ILLE, Congo Republic 
— Mortar shells bombarded die capital 
Monday as die rebel militia accused die 
government of using foreign mercen- 
aries in the escalating civil war. 

The fighting was centered on the air- 
port and on central Brazzaville, as it has 
for the last several days. The airport is 
crucial to bringing in supplies and pos- 
sible reinforcements. 

People remained holed up in their 
homes for a fourth week, since fighting 
between troops of President Pascal Lis- 
souba and a former dictator, General 
Denis Sassou-Nguesso, broke out on 

iSa&re Ivfroba.'a spokesman 'for Gen-' 

eral Sassou-Nguesso, said that Mr. Lis- 
souba intended to “ internationalize” 
foe crisis by using Liberian, Serbian and 
Angolan mercenaries to fight alongside 
his troops. 

Mr. Mvoba said some 200 mercen- 
aries had arrived in foe port city of 
Pointe-Noire, 500 kilometers south of 
foe capital, Brazzaville, armed with four 
combat helicopters. 

“If foe international community re- 
mains indifferent, this crisis will em- 
brace all of Central Africa — for we, 
too, have friends,” Mr. Mvoba 

Mr. Lissonba surprised observers 
Monday when he left foe embattled cap- 
ital to attend Independence Dav cel- 

ebrations in Kinshasa, foe capital of foe 
newly nam ed Democratic Republic of 
Congo. He was expected to attend cel- 
ebrations commemorating the former 
Zaire’s independence from Belgium 37 
years ago. 

The war erupted when Mr. Lissouba 
sent troops to disarm General Sassou- 
Nguesso militia, saying he wanted to 
avoid any disruption of foe presidential 
elections that were scheduled for July 
27. General Sassou-Nguesso claimed 
the president picked a fight so he would 
have an excuse to delay foe vote. 

Mr. Lissouba has called for a three- 
month extension of his mandate, now 
scheduled .to expire at foe. end of Au- 
gust. • 

“This investigation is critical to foe 
establishment of a new start in our new 
country,” said Floribert Chebeya, pres- 
ident of the Voice of foe Voiceless for 
Human Rights, a leading Congolese 
nongovernmental organization. “It is 
necessary to have a reckoning. It is 
important to establish foe truth. Mas- 
sacres have been carried oat in this re- 
gion with impunity for years and it must 
stop. We can’t establish a state of law on 
foe basis of impunity and blood. That 
would be a dangerous foundation.” 

Mr. Chebeya said the UN mam 
briefed him Monday on foe progress of 
foe inquiry. Based on foe meeting, he 
accused the government of ‘‘playing a 

He added: "The days pass, and foe 
government places conditions on foe 
investigation. They want to bore us to 
death so foe investigation never hap- 
pens, so people will forget.” 

The United Nations tried once before 
to cany out this investigation. On May 
3, a team of UN investigators arrived in 
Kigali, foe Rwandan capital but was 
blocked from traveling to Congo, 
formerly known as Zaire, by Mr. Kab- 
ila’s fences, who were just two weeks 
away from capturing Kinshasa and oust- 
ing Marshal Mobutu. 

Mr. Chebeya said the reported mas- 
sacres and a recent series of disappear- 
ances and arrests in Kinshasa illustrated 
serious human-rights problems in Mr. 
Kabila’s government He said that on 
Saturday, an official fr o m bis organi- 
zation, William Kalume, was arrested as 
he tried to visit some of foe men who 
recently have been plucked from foe 
streets of foe capital and taken into 

U.S. Moving to Train 
African Peace Troops 

By Thomas W. Lippman 

Washington Post Service 

WASHINGTON — Teams of Green 
Beret soldiers from Fort Bragg, North 
Carolina, are to head for Uganda and 
Senegal next month to begin training 
battalion-size units in international 

The two-month tours of duty are 
billed as the first concrete step in the 
Clinton administration's long effort to 
set up an all-Africa military force cap- 
able of responding to recurrent up- 

Seven African nations have desig- 
nated eight battalions to take part in the 
project to enhance the training, equip- 
ment and ability to work together of 
African troops deployed on peacekeep- 
ingor humanitarian missions. 

The idea for the force has been brew- 
ing in Washington for two years. It was 
modified and somewhat scaled down 
after foe previous secretary of state, 
Warren Christopher, briefed African 
leaders on it during a tour in October. 

But just as foe first field work is sec to 
begin, foe planned force has run into 
strong opposition. 

Senator Mitch McConnell, Repub- 
lican of Kentucky, chairman of the Ap- 
propriations subcommittee that controls 
foreign-aid spending, has cut all $15 
milli on the administration was seeking 
for fiscal 1998. He called foe proposed 
force an unnecessary duplication of ef- 
forts already under way by Britain, 
Fiance and the Africans themselves. 

Other Republican senators have sim- 
ilar views, staff aides said. 

The House version of foe 1998 for- 
eign aid bill however, includes foe 
training money. Some officials said 
they hoped to enlist senior military of- 
ficers to help persuade Senator Mc- 
Connell and his allies to restore foe 

According to officials and briefing 
papers distributed by the Stale Depart- 
ment, foe training of the Ugandans and 
Senegalese would be followed by sim- 
ilar work in Tunisia, Ethiopia, Mali and 
Malawi later this year and in Ghana next 

Areas of training are to include West- 
ern-style peacekeeping doctrine such as 
relations with noncombatants, min e de- 
tection, water purification and commu- 

The objective is "to work with Af- 
rican states to create effective, rapidly 
deployable peacekeeping onits (8 to 10 
battalions) that can operate under foe 
auspices of foe United Nations, foe Or- 
ganization of African Unity or as a free- 
standing, 'multinational force in foe 

event of a humanitarian crisis or tra- 
ditional peacekeeping operations," ac- 
cording to an internal briefing paper. A' 
battalion has 500 to 800 soldiers. 

The idea had its genesis in U.S. con- _ 
cem that the tiny central African nation 
of Burundi was teetering on the edge of 
the same kind of tribal slaughter that ~ 
erupted in 1994 in neighboring . 
Rwanda. * 

"We didn't want to be in the situation ^ 
we were in there, where it was a choice } 
between nothing getting done and doing 1 
it ourselves," an official said. 

Since the idea was first presented by , 
the Pentagon to a meeting in February ' 
1996, concern over Burundi has dimin- 
ished while major crises have erupted in ' 
other African countries, including the j 
former Zaire, the Central African Re- ; 
public and Sierra Leone. '■ 

Those outbreaks of violence, some of 
which generated huge flows of ' 
refugees, have reinforced foe Clinton ' 
administration’s desire to upgrade Af- * 
rican military capabilities, officials •' 

The aim is to have African units ready 
for quick deployment to crisis zones, 
compatibly equipped and capable of ‘ 
working together. 

As originally presented by officials 
last fall, the primary purpose of foe 
African force would be to stabilize con- 
flict zones so that humanitarian aid 
could be provided to civilians. Such 
deployments might require the use of 

In discussions, some officials put 
more stress on a traditional peace role, 
in which foe fighting has stopped and ' 
the intervention force then polices the ' 

"This is a training initiative; it is not ' 
an operational initiative,” a State De- 
partment official said. “We will en- ' 
nance training for work in a contested ' 
environment but we're not equipping ■ 
for that.'* 

Once trained, foe African units would 
stay in their own countries and “mind 
their own business” until called to take ' 
part in an operation, an official said. 

During Mr. Christopher’s African ' 
trip and in following consultations, Af- # 
rican leaders said they wanted more ' 
authority to decide where a force should 
be deployed and what it should do. 

Lea by President Nelson Mandela of 
South Africa, foe Africans made it clear 
that they did not want just to be bodies 
that could be moved here and there by , 
outsiders — especially Americans. 

One result is that the American plan is ' 
still somewhat murky about how the • 
Africans would be given decision-mak- 
ing authority. 


ByPLOForce Dies 

: GAZA CTTY — A Palestinian man 
, beaten unconscious by security forces of foe 
Palestine Liberation Organization on June 
- 23 died Monday in a hospital according to 
.doctors and a human rights group. 

groups began fighting die military-backed 
regime in Algiers in 1992. (AFP) 

5 Colombian Soldiers 
Die in Rebel Ambush 

BOGOTA — Leftist rebel units am- 
bushed a military patrol killing five sol- 

A statement by foe Palestinian Center for diere and wounding 17. 

Hunan Rights said that Nasser Rad wan The attadc Sunday was the first large-scale 

.died Monday afternoon as a result of fighting between foe leftist Revolutionary 
woundasuffered from the assault in June by AraoedFbrces of Colombia and government 

[ members of Force 17 of foe PLO. '■ forces since the insurgents freed 70 soldiers 
Mr. Radwan, 28, was the 13th Palestinian after months of captivity two weeks ago. 

-to die after being arrested since foe Pal- Many Colombians hoped foe release of 
i estmian Authority took charge of parts of the soldiers might lead to peace talks. 

. the WcstBankandGaza Strip in 1994 under The insurgents carried out foe assault 
'a peace accord with Israel signed foe pre- nearfoe village of Ties F .sq ni na s in Caqueta 
ribas year. state. Television footage showed military 

The Palestinian Authority has detained planes dropping bombs during the attack in 
'10 pofipe officers, including a colonel in *h e jungle region. There was no word on 
-wnnection with the beating, a senior PLO casualties among the rebels, 
police commander in Gaza said. He said the The Revolutionary Armed Forces of 

Palestinian leader, Yasser Arafat, had Colombia is the country’s oldest and largest 
ordered that officers involved in the incident rebel group. At war since foe 1960s, it says 

■ be tried in a military court. 


zt is fighting tor the j 
they are bandits wit 

or. The military says 
no ideology and are 

Algeria Security Forces ^viiymvoivedmdmgtnfficidng. iap> 
Kul 20 Extremists Ethiopia Tells Envoys 

ALGIERS — At least 20.armed Islamic To StO!Y 0Ut of Britain 
extremists were killed in foe past few days ■ ~ _ 

by security forces east and southeast of foe ADDIS ABABA, Ethiopia — Ethiopia’s 

Algerian capital foe daily Aufoeatique re- government has ordered its diplomats not to . 

. ported Monday. 

travel to Britain because they must undergo 

V Security forces, who are saD operating in security searches, a newspaper reported 
'.foe regions of Khemis el Khechna, Meftah Monday. . 

. and Bouira, have seized many weapons. The instructions were issued in a letter 
including assault rifles and machine guns, dated June 4 from Prime Minister Metes 
r the paper said Zenawi’s office after Britain turned down a 

i- IhedaiJyElWaian said Sunday that more request that Ethiopian officials traveling on 
than 20 Islamic rnnitantt bad been kilted by diplomatic passports be exempt from the 
security forces in Saida, southwest of Al- searches, the independent weekly Reporter 


; The security forces' began the operation “Ethiopian officials holding diplomatic 
hag 24 after foe driver ofan ambulance, a passports have thus been prohibited from 
^iiuEseand two ofo» people were killed in an traveling to Britain rather than face foe 
suspected extremists while humiliating procedure off being searched at 
medied goods, El Waian said. British airports,”. foe JettN- said. 

1 60,000 penpte have died in the A Foreign Ministry official in Addis 

than 60,000 people have died in the A For eign M inistry offi< 

conflict since armed ' Islamic Ababa confirmed the report. 

i i-»r:i < 1 ! l\n 


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PAGE 10 






Sributtc Does the Hong Kong Goose Need Democracy 


* Only 

Confront Iraq as One 

I Six years after the Gulf War, Saddam 

Hussein remains determined to man- 
ufacture chemical and biological 
Weapons and the means to deliver them. 
The United States must rally a wavering 
UN Security Council to make sure that 
the Iraqi dictator does not succeed. 

J Mr. Saddam still has not resigned 
himself to the consequences of his dis- 
astrous 1990 invasion of Kuwait. That 

aggression led to Iraq’s swift defeat by France's support came at the cost of 
an American -led mili tary coalition and watering down and postponing the pro- 

file enactment of strict UN disarm- 
ament requirements. 

Baghdad has never fully complied 
with those strictures. Encouraged by 
signs of division among the Gulf War 
allies and the five permanent members 
of the Security Council, Iraq has 

stepped up its defiance. 

Three nines last month it interfered 
with helicopters taking UN inspectors 
over suspicious sites, endangering the 

inspectors’ lives. 

On three other occasions, it kept 
inspectors waiting outside the facilities 
long enough for potentially comprom- 
ising material to be spirited away by 
Iraqi agents. 

The Security Council responded 
with a resolution demanding that Iraq 
immediately cease its belligerent be- 
havior. But in a regrettable though 
unavoidable compromise, the threat of 
new sanctions was postponed for at 
least four months. 

Three Security Council members, 
Russia, China and France, have been 
increasingly reluctant to insist that 
Baghdad fulfill its arms control ob- 
ligations. France hopes for an early 
resumption of the once profitable com- 
merce between the two countries. Rus- 

Safety in Space 

The Soviet space program always 
seemed to be the exception that proved 
the rule of shoddy Communist produc- 
tion. From Sputnik to Mir, the Soviets 
accomplished wonders in space. But 
now one may legitimately ask whether 
the exploding-television syndrome has 
infected the space program, too — and 
whether American astronauts’ lives are 
in danger as a result. An unmanned 
space cargo vessel collided with the 
space station Mir, causing a potentially 
catastrophic pressure leak. The crew of 
two Russians and one American man- 
aged to isolate the damaged module and 
put themselves out of immediate 
danger. But the damage, still being eval- 
uated, is significant; the prospect for 
repair uncertain, and even if the Mir’s 
power can be folly restored, it’s unclear 
whether the American astronaut, Mi- 
chael FoaJe, will be able to cany out 
many of his planned experiments. 

Space travel is risky, as those who 
run America’s space programs also can 
testily with sorrow. Mr. Foale and his 
traveling companions can escape on an 
attached Soyuz vessel, so in mis case 
their Lives were not in danger, officials 
say. And there is no denying that U.S.- 
Russian cooperation in space has 
provided benefits for both sides: Amer- 
icans have gained experience in train- 
ing, supporting and carrying out long- 
term space habitation that will prove 
valuable for the space station program. 

But it's also indisputable that Rus- 

sia's financ ial woes are raising ques- 
tions about its usefulness as a space 
partner. It’s late on its promised con- 
tributions to the space station program. 
And the collision was only the latest — 
though clearly the most serious — in a 
string of Mir mishaps. Mr. Foale’s pre- 
decessor on board, Jerry Lineoger, 
twice had to prepare to abandon ship — 
including once when an oxygen canister 
burst into flames, producing smoke that 
blocked the escape route to the Soyuz. 

The Clinton adminis tration’s over- 
all goal of cooperation with Russia is 
sound. The biggest country in die 
world is and will remain an important 
factor in world politics, and die West 
should integrate it and welcome it 
rather than take advantage of it during 
its current troubles. Even a certain 
amount of pretense to salve Russians' 
pride is justified toward this goal, as 
when the G-7 leading industrial na- 
tions welcomed Russia into their club 
though it really can't afford the dues. 

But politics and pretense have no 
place when astronauts’ lives are at risk. 
The House recently passed legislation, 
sponsored by Representative F. James 
Sensenbrenner Jr., chairman o'" ’’e sci- 
ence committee, that woul> [uire 
NASA’s chief to certify the N. ,safe 

or safer than U.S. spacecraft Defore 
launching anyone for another long- 
term stay. That would seem a rea- 
sonable and timely requirement. 


Global Warming 

There was no way that President BUI 
Clinton could satisfy everyone in his 
address last week to the United Nations 
on climate change, and he did not. By 
embracing the scientific community’s 
assessment that global warming is a real 
threat with potentially appalling con- 
sequences, he annoyed powerful indus- 
tries which have bran challenging that 
science because they will bear many of 
the costs of dealing with foe problem. 
By refusing to embrace a specific 
timetable for reducing foe greenhouse 
gases that help cause global wanning, 
be disappointed many environmental- 
ists who had hoped for a less ambiguous 
commitment and faster action. 

But none of that should have been 
surprising. What was surprising was 
the impressive challenge Mr. Clinton 
set for himself. The UN session was 
merely the first in a series of inter- 
national meetings that will culminate 
in Kyoto, Japan, in December,' when 
both industrialized and developing na- 
tions are expected to sign a treaty bind- 
ing them to adetaUed plan of action. In 
the interim, Mr. Clinton says he will try 
to educate the American people aboat 
foe nature of the problem and give 
them some straight talk about the costs 

they will bear and the sacrifices they 
will have to make. Without such a 
campaign, he implied, he cannot pos- 
sibly sell Congress on a program that 
would impose real costs on individuals 
and on major producers and users of 
fossil fuels like the big utilities, foe oil 
companies and the automobile and pet- 
rochemical industries. 

This will be a huge task, and foe most 
important question, now and after 
Kyoto, is whether Mr. Clinton is up to 
it. He must first educate a country that is 
in foe midst of an energy binge to the 
idea foal it will have to break its ad- 
diction to the fossil fuels foat cause 
greenhouse gases and, meanwhile, in- 
vest heavily in new technologies. He 
must then sell those same ideas to a 
Congress that is already complaining 
that the more modest measures he an- 
nounced last week to attack ground- 
level smog and soot are too expensive. 

Mr. Clinton has other tricky tasks 
that extend beyond America’s borders. 
He and his negotiators must join with 
the industrialized nations on a plan to 
spread foe costs fairly among nations, 
as well as on a scheme to bring the 
developing countries into the effort. 






KATHARINE P. D ARROW, Vice Chairman 

RICHARD McCLEAN, Publisher A Chief Executive 
MICHAEL GETLER, Executive Editor 

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W ASHINGTON — For months 
leading up to Monday’s transfer 

sia would like to see Iraq free to sell 
more oil so that it can repay its sub- 
stantial debts to Moscow. China dis- 
likes the whole idea of sanctions, ar- 
guing foar what countries do on their 
own territory should not be subjected to 
international scrutiny or punishment. 

The compromise resolution was 
passed only after strenuous diplomatic 
efforts by foe Clinton administration. 

W leading up to Monday’s transfer 
of sovereignty from Britain to China, 
Hong Kong executives and the Amer- 
icans they do business with have been 
trooping through Washington urging us 
all to relax. We in Hong Kong aren’t 

By Fred Hiatt 

posite wav? China’s leaders remain, as accepting any money from outside). 

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worried about Beijing taking control, 
they kept telling us; why are you Amer- 
icans so uptight about it? 

Never mind for now that most of 
those wealthy executives managed to 
secure U.S., British or Canadian pass- 
ports as escape hatches before under- 
taking their pro-Chinese proselytizing. 
Never mind that Martin Lee and his 
fellow popularly elected democrats 
were simultaneously warning that China 
already was pruning Hong Kong's liber- 
ties, even before taking control. 

“Don’t pay so much attention to 
Martin,” the business executives 
would tell us. “He’s so negative.” 

And foe evidence they cited was 
indisputable. Hong Kong’s stock mar- 
ket was rising. The value of Hong Kong 
property was soaring. Nobody was 
jumping ship; business confidence was 
at an all-time high. If foe markets wer- 
en't worrying, why should we? 

Hong Kong's reversion to China after 
1 SO years of British rale is many things: 
a moment of pride for China, the end of 

posed sanctions. Russia's support re- 
quired President Bill Clinton's per- 
sonal intervention with Boris Yeltsin at 
foe Denver summit meeting. China 
dropped its earlier threat to veto the 
resolution after suggestions foat such a 
move would antagonize Congress only 
days before a crucial House vote on 
Beijing's trade status. Such timely co- 
incidences cannot be counted on the 
next time Iraq provokes a crisis. 

Rolf Ekeus, foe UN inspection chief 
who warned of Baghdad's continuing 
chemical and biological weapons ef- 
forts, will step down on Tuesday after 
six years of persistent and effective 
sleuthing. Mr. Saddam is doubtless 
already preparing to test foe mettle of 
Richard Butler, foe Australian diplo- 
mat who will succeed Mr. Ekeus. 

Mr. Butler, a forceful negotiator and 
a passionate arms control advocate, has 
a deserved reputation for toughness. 
But to succeed in his new assignment, 
be will also need foe consistent backing 
of a united Security Council. Main- 
taining that unity will be difficult for 
Washington. With the threat of chem- 
ical and biological weapons involved, 
foe cost of failure could be great. 


empire for foe queen (forge tting Gibral- 
tar and a few islands here and there), a 

tar and a few islands here and there), a 
crucible of U.S.-China relations. But it 
may also prove to be a historic lab- 
oratory test of one of foe key theories 
underlying U.S. foreign policy, that free 
trade and free markets are inextricably 
linked, over time, with civil liberties, 
democracy and the rale of law. 

Certainly, this is the theory behind 
official optimism about China’s 
takeover. Hong Kong is a fabulous 
money-making machine, foe argument 

goes, and China’s leaders are too smart 
to kill the goose that keeps laying golden 
eggs. Since Hong Kong's prosperity 
depends on all kinds of freedoms that 
don’t exist in China — foe free flow of 
information, a free judiciary, an im- 
partial civil service and more — Beijing 
won’t mess with those freedoms. 

Respecting Hong Kong's “auto- 
nomy, freedoms and way of life” will 
be in China’s interest. White House 
national security adviser Sandy Berger 
says, “because a dynamic, prosperous 
and free Hong Kong will continue to 
drive growth and progress in China.” 
And just as democracy promotes 
growth, so “free and fair trade pro- 
motes democracy ” — so says the U.S.- 
China Education Foundation, which is 
sponsored by Boeing, GE, GM, IBM, 
Motorola and foe American Interna- 
tional Group insurance firm. 

Is it so? Certainly, global commer- 
cial success requires an. openness to foe 
world that works a gains t totalitarian- 
ism. The ferment of private enterprise 
both promotes and depends on a degree 
of personal freedom. China itself is far 
more open today than 20 years ago. and 
economic reform is a key reason. 

Yet foe connections aren’t all that 
certain. Indonesia has enjoyed tremen- 
dous economic growth, yet corruption is 
rampant — forget about an impartial 
civil service there. And of course China 
itself remains autocratic, intolerant of 
any dissent, brutally repressive of labor 
rights and free association — yet foreign 
investors keep clamoring for access. 

What does this mean for foe Hong 
Kong experiment — a transfer’ of a free 
society to Communist control, after so 
many countries have moved the op- 

the sinologist Kenneth Lieberthal says, 
“profoundly statist and authoritarian” 
in mentality. In contrast to Britain's 
“cultural" sensitivity “to foe letter of 
the law," Mr. Lieberthal says deli- 
cately, “Beijing focuses more on final 
outcomes rather than on foe niceties 
along the way.” 

What “final outcome” do China’s 
leaders want for — and from — Hong 
Kong? Maybe they want foe “growth 
and progress” Mr. Berger speaks of; 
they certainly don't want the democ- 

Executives expect civil 
rights to he curtailed, 
but they don't think 
doing business will 
become more difficult 

racy that Boeing and GE claim to be 
promoting. Above all, they want a con- 
tinuation of their own rale, and they 
view Hong Kong as a dangerous source 
of potential subversion. 

That is why China already has 
moved to abolish Hong Kong's elected 
legislature, establish controls over 
political groups and demonstrations, 
send in troops and make clear foat 
“freedom of foe press” no longer will 
extend to criticism of China's leaders, 
its brutal occupation of Tibet or any- 
thing else too sensitive. In foe coming 
year. China is likely to further trim 
civil liberties and to construct an elec- 
tion law foat marginalizes Martin 
Lee and his democrats (in part by al- 
lowing the Chinese Communists to 
flood their allies with political con- 
tributions while barring Mr. Lee from 

Similarly, the way Hong Kong does .] 
business will. change as the press cen- • 
sors itself or is censored, foe judiciary ; 
comes under Beijing’s control and > 
China’s powerful and often corrupt ■ 
clans jockey for influence. “Levels of i 
corruption in business and government ; 
have already started rising," Mr. 
Lieberthal notes, “reflecting the ethics 
of increasingly active mainland 
Chinese business people -and .wide- 
spread expectations about the ftrfure.” i 
The changes have come gradhSJly, 
and they are likely to proceed thesune » 
way. Will they affect Hong Kong’s * 
economic value? . ; £ r ■> 

In foe long term — five yea&and 
beyond, say — the changes may re&ice ’< 
Hong Kong’s attractiveness as a place 
to do business. Even China may have a =j 
harder time attracting investment if it j 
can’t establish clear rales. . * 

But that is far from the proven rule i 
U.S. businesses would have us believe. 
And in the short term, frenetic Hong \ 
Kong is almost certain to find ways to 
keep on making money. J 

Perhaps the most telling evidence 
comes in a recent Far Eastern Economic 
Review poll of Hong Kong business 
executives. The magazine found foat • 
87.5 percent of them believe China will 
curtail civil rights after the takeover — 
but only 20.8 percent say that doing • 
business will become more difficult 
When they tell us to relax, in other 
words, they aren’t sayingdemocracy in ■ 
Hong Kong is safe. .They Ye ' Saying ' 

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democracy in Hong Kong dqesn'fmat- ; 
ter; foe goose will keep on laying np ■ 

matter whaL Whether that’s soremains 
to be seen, but as we watch China' 
establish its control, we should at least 
be clear about our terms. 

The Washington Post. 

The Moral and Strategic Imperatives of NATO Enlargement 

ramina hard on April 22, 

YY raining hard on April 22, 

Hundreds of guests sat in a 
soggy tent on the South Lawn of 
the White House, waiting for 
the president to begin a cere- 
mony marking foe opening of 
the Holocaust Museum. 

The dramatic weather rein- 
forced a moment foat was filled 
not only with moral imperative, 
but also with strategic possi- 
bility. For it marked foe origin 
of the American policy to ex- 
pand NATO. 

Inside the White House, the 

By Zbigniew Braeziiifiki and Anthony Lake 

president was meeting invited 
foreign leaders, many from 
Central and Eastern Europe. 
Repeatedly, foe president heard 
from men such as Vaclav Havel 
of the Czech Republic and Lech 
Walesa of Poland foat NATO 
must be expanded. 

The Soviet Union had only 
recently collapsed. Its former 
members in foe “gray zone” 
between Germany and Russia 
were naturally uncertain. Could 
they look to the West in con- 
fidence, or must they the 

East in fear? Would NATO 
define itself in foe familiar pat- 
terns of foe past or reinvigorate 
itself in ways relevant to a new 

The president was deeply im- 
pressed. In subsequent weeks, 
as the issue was discussed with 
his advisers, his inclination 
turned to conviction. And so, at 
NATO s umm it meetings from 
January 1994 to May 1997, he 
led foe alliance on the path to- 
ward expansion, a journey that 
is likely to lead foe alliance to 
extend membership invitations 
to foe Czech Republic, Poland 
and Hungary next week at its 
meeting in Madrid. 

This is not a policy de- 
veloped in 1996 for partisan 
purposes, as some assert. It is a 
course pursued since late 1993. 
Indeed, foe Partnership for 
Peace, created in early 1994, 
was explicitly portrayed from 
the start as a potential path to 
NATO membership. 

NATO expansion is a cre- 
ative response to three strategic 

challenges: to enhance the re- 
lationship between the United 
States and the enlarging demo- 
cratic Europe; to engage foe still 
evolving, post- imperial Russia 
in a cooperative relationship 
with that Europe, and to rein- 
force the habits of democracy 
and foe practices of peace in 
Central Europe. 

As to the first challenge, foe 
Euro-Atlantic alliance, which 
proved its worth in foe Cold War. 
is also proving its worth today. 
Only NATO could act effective- 
ly in Bosnia, for example. But 
the alliance must continue to 
evolve so that it can take on new 
missions in ia larger and undi- 
vided Europe. Our NATO allies 
also support expansion as a nec- 
essary step for keeping the trans- 
Atlantic link strong. 

As for foe second challenge, 
developing a relationship with a 
democratizing Russia, an ex- 
panded alliance provides a 
hedge against the unlikely but 
real possibility that Russia will 
revert to past behavior. It must 

U.S. Should Quit Bossing Its Friends 

By Anneke van Dok-van Weele 

The writer is the Netherlands’ minister for foreign trade. 

T HE HAGUE — Over foe 
past 50 years foe United 

States and Europe have estab- 
lished a political and economic 
partnership unique in -history. 
Trans-Atlantic trade and invest- 
ment have brought immense 
benefits to both continents. 

Recently, however, we in 
Europe have begun to worry 
about America's commitment 
ro foe trans-Atlantic relation- 
ship. What has gone wrong? 

The shortest way to put it may 
well be just one word: Cuba. 
U.S. policy, aimed at removing 
Fidel Castro and establishing a 
democracy in Cuba, has been an 
embarrassing failure for de- 
cades. Political and economic 
sanctions have not made the Cu- 
ban people rise up against Mr. 
Castro; they have instead 
provided him a perfect excuse 
For denying his people freedom. 

The irony is foat the private 
sector could easily have 
achieved what foe CIA and Cu- 
ban exiles have failed to do. Not 
a single dictator in foe world has 
survived foe emergence of a 
middle class. If trade and in- 
vestment had been encouraged 

legislation is unacceptable to 
European and other democra- 
cies. Instead of letting the sov- 
ereign parliaments of its allies 
write rules for their own cit- 
izens and companies, foe U.S. 
Congress is trying to impose its 
own failed policies by force. 

The European Union tried to 
solve its differences with foe 
United States through consulta- 
tions. When these proved fruit- 
less, Europe had no option but 
to turn to the World Trade Or- 
ganization. The United States 
then told us that Cuba was a 
matter of foreign policy that 
should not be dealt with in the 

Why is bringing 
Cuba to heel more 
important than 
good relations 
with Europe? 

instead _ of stymied, we might 
well have a free and relatively 
prosperous Cuba today. 

This is a tragedy for foe Cu- 
ban people — and a humiliation 
for foe American people, who 
allow their leaders to let Fidel 
Castro hold the United States 
hostage. Jesse Helms and his 
colleagues have turned out to be 
Mr. Castro’s staunchest allies. 

A greater tragedy is looming, 
however. Instead of resolving 
the problem through trade and 
investment, the United States in- 

stead has begun to pressure its 
friends and allies into emulating 
its failed Cuba policy through the 
adoption of tire Helms-Bunon 
Act. which provides for sanc- 
tions against non-U.S. compa- 
nies that do business with Cuba. 

Making matters worse, foe 
U.S. Congress has also adopted 
foe d 'Amato bill covering in- 
vestments by non-U.S. compa- 
nies in Libya and Iran. 

This type of extraterritorial 

WTO. This does not make 
sense: If foe United States uses 
trade policy measures to 
achieve foreign policy objec- 
tives, it can hardly be surprising 
that parties affected by those 
measures appeal to the WTO. 

Aware of foe inherent weak- 
ness of its case, the United States 
tells os it will invoke the “na- 
tional security clause,” trying to 
make us believe that Cuba is a 
threat to U.S. national security. 

Invoking this clause would 
gravely undermine the WTO, 
which represents foe first suc- 
cessful attempt to build a global 
economic system in which or- 
derly and effective dispute set- 
tlement replaces protracted, 
costly trade wars.'This should be 
■ of concern to the United States, 
since it has been a prime mover 
in foe estabJishmem of foe WTO 
and benefits greatly from it 

For example, eight years of 
intense U.S. pressure on foe 
European Union to allow U.S. 
beef treated with natural hor- 
mones onto the EU market 
failed miserably. Only one year 
of dispute-settlement proceed- 

ings at foe WTO will soon either 
force the EU to (grudgingly) 
allow U.S. beef onto European 
markets or compensate U.S. 
farmers to foe tune of hundreds 
of millions of dollars per year. 

The World Trade Organiza- 
tion is even more valuable to foe 
United States if one takes into 
account the liberalization of the 
global telecommunications and 
information technology markets 
achieved at foe WTO ministeri- 
al conference last year. This lib- 
eralization will bring billions of 
dollars of business opportuni- 
ties for U.S. companies. 

Yet another potential benefit 
for foe United Stales is China’s 
future membership in the WTO. 
Having China join a rules- based 
global trading system will 
greatly facilitate its smooth 
merger into foe world economy, 
avoiding trade wars, retaliation, 
counterretnliation and so on. 

In spite of all this, Congress 
seems to have deliberately em- 
barked on a collision course. 
And worse is to come: Congress 
is also undermining yet another 
excellent example of U.S. eco- 
nomic and political leadership, 
the Multilateral Agreement on 

Two years ago, foe U.S. ad- 
ministration led foe way in try- 
ing to establish an international 
agreement on rales covering in- 
vestment within the Organiza- 
tion for Economic Cooperation 
and Development This is an 
ambitious attempt to provide a 

also contribute to the goal of 
preventing, foat from happen- 
ing. Integrating Russia Into the 
evolving European security 
structure advances that goal. 
Hence foe recent agreement to 
create a joint NATO-Russia se- 
curity council. 

Critics say this council will 
give Russia too much of a voice, 
but a careful reading of the 
agreement between NATO and 
Russia makes it evident thar the 
cries of alarm are exaggerated. 
Russia does gain a perch in the 
alliance's antechambers, but it 
is not seated within foe North 
Atlantic Council, NATO’s 
chief policy-making organ. 

The new Russian-NATO 
council provides for regular as 
well as special consultations re- 
garding security matters of mu- 
tual concern. 

However, it is simply not cor- 
rect to assert that alliance mem- 
bers, in times of crisis, would 
first have to have their security 
concerns addressed within foe 
joint council. The agreement 
makes it clear foat NATO 
would first formulate its own 
position before consultations 
with Russia. 

Nor should foe emphasis on 
regular consultations cause 
alarm. An aggressive Russia 
would simply render the 
NATO-Russia council impo- 
tent because foe required con- 
sensus for agreed action would 
then be lacking. An uncooper- 
ative Russia would only deprive 
itself of this valuable consulta- 
tion mechanism. 

Expansion will place foe al- 
liance, and the United States, at 
foe center of a wider regional 
security system to which Russia 
is related. This is good for the 
future of Europe — thus good 
for us Americans. 

As for foe third challenge, we 
have already seen tangible ways 
in which the prospect of mem- 
bership has encouraged democ- 
racy and security cooperation 
among the Central European 
states of the former Soviet 

Almost everywhere, a demo- 
cratic center has taken hold, 
with reinforced civilian control 
of the military. A half dozen 
disputes on border and ethnic 
issues have been settled. And 
the contributions of troops and 
other support to foe peacekeep- 
ing operation in Bosnia by Po- 

land, foe Czech Republic, Hun- JLf 
eary and others have directly* 

gary and others have directly fi 
helped NATO’s work there. • j -fj 
This does not mean that there j ■' « 
are no future concerns. It must be J 

made clear, for example,-foat our | 

allies and the new members wijl 
bear their full share of foe costs . 
of expansion. Two additional is- r W 
sues must also be addressed. _j jj 
First there is the potential M 
problem during the interim perP" j 
od between foe naming of new | 
candidates and the time of theii_ n 
formal acceptance in about two .. d 
years. In that time, Russia will* ^ 
be engaged with NATO through Jj 

foe joint council, but foe can- ' A 
didate members wiU remain in a T> ^ 
no-man’s land, anxious ; about % 
the ability of Russia thus to af- 
feet their fate in the alliance. ■"-* ? 
A solution: admit the candFt ‘ 



date members, in foe meantime,*’ r . 

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Expansion will a '••] X i.l 
place the alliance, v . . , 

and the U.S . , at the ^ j - '• 

center of a security 

system to which .= ■•.-.r’rojJu 

Russia is related, ■; : : X y ' H 

into foe North Atlantic Council- 
as “observers" or “attendees. ’-’r* 
Second, NATO must reiter- 
ate in Madrid its commitment tcC 
remain open to any democratic^ 
European state that meets then 
objective criteria for member-iq 
ship. As part of a bargain with:? 
members that are seeking ad-* 
mission for Romania and SIovhc 
enia now — a position opposed^ 
by the United States — foeb 
Madrid summit meeting might; 

‘ an- 

tj;h • 

r--d- i..*r 
Price- T;... 
* u fr ,m. 

■-Tii iu 

1 • . 

also state that decisions regard-ai H 

ing further membership wiLl beu 

made by the lime the first groups 
of new members ascends to fulh« 
membership by mid- 1 999. 

In brief, the enlargement ofc 
NATO creates a larger and 
more stable architecture oft; 
peace in Europe and widens thefc 
scope of the American-Euro^ 
pean security connection. 

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the tun 
-tccied st 

Mr Brzczinski was national 
security adviser to President : n 
Jimmy Carter; Mr. Lake ivm na^» 
tional security adviser to Pres ^ 
idetu BUI Clinton from 1993 tc 

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IN OUR PAGES: 100. 75 AND 50 YEARS AGO,j . 

1897; Greek Dignity puign to prevent foe operation . 

‘-ar -!>n of Hon 
' In !i: f inicmatic 
‘Monai legislature 
’.p|e b> a prope 
1 he world wi 
- whether this ha| 

level playing field for invest- 
ments worldwide. Substantial 

menls worldwide. Substantial 
progress has been made, but the 
negotiations are now threatened 

S I U.S. attempts to incorporate 
elms Burton-type provisions 

Helms Burton-type provisions 
into the agreement. Again, sub- 
stantial American economic 
and political interests appear to 
be being summarily sacrificed. 

For what? Must we conclude 
that at a time when communism 
is receding, bringing Cuba to 
heel is more important to foe 
United States than good relations 
with the European Union and the 
rest of its allies? One cannot help 
but wonder about the priorities in 
Congress and the apparent lack 
of leadership of foe Clinton ad- 
ministration on this issue. 

VffiNNA — Telegrams re- 
ceived today [June 30] from 
Constantinople slate that foe 
conference of Ambassadors has 
unanimously refused to enter- 
tain any proposals from Turkey 
which contain any demand bc- 
y°nd a simple rectification of 
the frontier. Prince Mavrocord- 
ato foe former Greek Minister 
to Turkey, had declared that the 
self-respeci of the Greek nation 
would not permit of a European 
control of its finances on the 
lines of those of Egypt. It 
wo “!J- however, consent to a 
modified form of control. 

puign to prevent foe operation i 
of the Anglo-Irish treaty and tonjfl 
maintain the ideal of foe Rev«t'. 
public had been directed duringK • 
the last three months. ■ urn ‘ 

1947: Whales’ Life 

- v V J ,r »h r /. r t rm *d as pra 
jn / l '■* 7 ' Governor 

term) flu/ W.r ,, limi 

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wH - |s . Hui „ n ^ ded em 

urn"- W-^JJtoahase 

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>d?- . , n n ° foreat to C 

1922: Irish Sieve Ends 

International Herald Tribune 

DUBLIN - - The unconditional 
surrender of about one hundred 

and fifty irregulars in foe Four 
Court*, at |u Ur ,/clock foi.s a f. 

troom’ 1 * . h^'innaicd Hit- Irish 
troop.s sixty -hour siege of fo e 

stronghold, from a cam 

WASHINGTON — Dr. Ray- ^ 
mond Gilmore, government ex--; j 
pert on the love-life of whales^ . ( 
has issued his eagerly awkitesE "i 
report. His verdict: ■ Some. 
whales have a lot Somfchavpl v 
none. it all depends. Sfperrt* 
whales are polygamous. Bflt thd^ 
baleen lakes only one wife.anMP ' 
^ey go south for the j' 

Whalers can’t make - 

money catching foe sperm 1 ?/* 
whales, so they must also*etcB^ M 
home the more valuable baleoffiL ■ 
whales. It wouldn’t take lonj/J-V 
pr. Gilmore thinks, for foisspe 3 *. . 
cies to become extinct if it itsnVj >. 
protected. That’s why he'd likfeo 
to see the continuation .of an. , 
agreement on a sort of whale / . 
reservation in the Antarctic- 

: CUr «Mn ,,r t K mreai toe 

l h L - li h !: L ear50f Biilis 

a threat under ( 

l- J, n j ru. 

v n V • >n t , • n f s e- American 

n More Snc 

■ Writer leade ^ ^ 

>fex c ^: Dav,d K.p.u.*, 

A ^.Lij. IVe officer of foe 

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N EW YORK — Marie 
McCumbers and her hus- 
band. Rickey, have played by 
the so-called rules for years. 

Titty live in Frametown, a 
little hole-in-the-wall be- 
. tween Clarksburg and Char- 
leston in West Virginia. Mrs. 
' McCumbers is a secretary-re- 
ceptionist for an organization 
that supplies food to soup kit- 
chens. Mr. McCumbers is a 
greenhouse worker. Their 
comhined income this year 
•Jjjtfilf be a shade over S20.000. 

• Tbe McCumbers have two 
cfiUdren: Beckie, 10, and 
John, B. Not surprisingly, 
money is always in short sup- 
■ ply. Every expenditure is 
harshly scrutinized. 
‘‘Vacation?” said Mrs. 

• McCumbers. “Oh, we go to 
my morn's for vacation. She 
lives in Akron. That's about a 
four-hour drive.” 

The trip is made in the fam- 
ily's 1987 Blazer, which the 
McCumbers bought second- 
hand. ‘Tm still paying on 
if,” Mrs. McCumbers said. 
Luxuries? Entertainment? 
-We don't have any frills 
whatsoever. We don't go out 
id «u. We don't go to the 
-•^niovies. We don't take our 
*kids bowling.” 

By Bob Herbert 

“It's boring,” said John 

His mother laughed. “Our 
entertainment is to go to Sut- 
ton Dam. That’s a state park. 
Doesc ’t cost anything. " 

The family lives in a three- 
bedroom, one-story home. 
Meeting the mortgage is a 
struggle. There is no financial 
cushion. Any unanticipated 
expense is a crisis. Each year 
at tax rime, the refund is used 
for something important. 

“It goes toward my prop- 
erty taxes and homeowner's 
insurance.” Mrs. McCum- 
bers said. ' *Or the kids' dental 
work or doctor visits. We 
can’t afford medical insur- 
ance for the kids. 

“J have to make sure they 
deduct enough from each 
paycheck, otherwise we’d 
have to pay at the end of the 
year," she added. “J make 
sure they have me down as 
single with no dependents.” 

When politicians talk 
about tax cuts to help working 
families with children, you 
would t hink they had families 
like the McCumbers in mind. 
You would certainly think 
they were talking about chil- 

dren like Beckie and John 
McCumbers if they came up 
with a plan to provide tax 
credits wonh $500 per child. 

But if you thought that, you 
would be wrong. The Mc- 
Cumbers are among several 
million working and tax-pay- 
ing families that will get noth- 
ing from the ballyhooed child 
tax credit passed by the House 
and Senate last week. They 
are ineligible because their in- 
comes are not high enough. 

To exclude the McCum- 
bers and millions of other 
working-class families from a 
child tax credit plan while 
giving the credit to well-to- 
do families, some with an- 
nual incomes higher than 
$100,000, is absurd. 

The legislation passed last 
week would deny the tax cred- 
it to families that account for 
more than 25 million children. 
Thai is 40 percent of all the 
children in the United States. 

The proponents of this un- 
fairness argue that families 
like the McCumbers benefit 
from the earned- income tax 
credit and already pay very 
low federal income taxes, 
which is true. But the families 


Watching Hong Kong 

Helping the Middle East 

ift ir 
* ttlif 
? ..V • 

r fill 
!• '• 

Re i 

June 24 ). ... 

Mr. Freeman suggests that in 1 989 * ‘Beijing 
and London solemnly agreed that, within a 
yearof the July 1 transfer, Hong Kong's people 
would for the first time elect their Legislative 
Council. " This is completely wrong. The Brit- 
" ish and Chinese governments agreed in the 

1984 Joint Declaration that the legislature 
would be “constituted by elections.'’ 

The first indirect elections were held in 

1985 and a proportion of directly elected seats 
was introduced in 1991. In 1 990, China adopt- 

ils own Basic Law for Hong Kong, which 
set out a timetable and broad framework for the 
democratic development of Hong Kong’s leg- 
islature, with the ultimate aim of universal 
suffrage. China itself envisaged lhat the first 
step of that timetable would be the introduction 
of a wholly elected legislature that would 
transit the change of sovereignty in 1997. 

So, far from jumping the gun. Governor 
Chris Patten was following a well-established 
part) when in 1992 he set out detailed pro- 
posals for how the 1995 election should take 
place. Those proposals were designed to en- 
sure an open and fair election. No one has 
seriously suggested that the 1 995 election was 
anything but open and fair. People turned out 
in record numbers to vote, and those can- 
didates advocating the further democrati- 
zation of Hong Kong secured the clear ma- 
, joriry of directly elected seats. Moreover, 
independent legal experts, giving evidence to 
the British Parliament in 1 994. all agreed that 
the Patten proposals were consistent with the 
terms of the Joint Declaration, the Basic Law 
and other prior understandings with China. 

. It was a matter of profound regret to both 
die British and Hong Kong governments that 
the freely and fairly elected legislature would 
be dismantled by China and replaced by a 
provisional legislature selected by about 400 
of China’s friends. 

It is the clear wish of Hong Kong and its 
many friends in the international community 
that die provisional legislature be replaced as 
soon as possible by a properly and openly 
elected body. The world will be watching 
closely to see whether this happens. 


Hong Kong. 

Regarding “For Israel. Ballots Against 
Bullets ’’ ( Opinion . May 29) by Amos Oz: 

The writer is expressing what I have felt 
since the assassination of Yitzhak Rabin. 
Murderers are seen as heroes by parts of | 
Israeli society, thus encouraging people to 
solve problems by the use of force. 

This development must be stopped. Ballots 
have no chance if a state allows the preaching 
of hate and murder. 

When I was a child and a teenager. I 
was told that Germany could flourish only at 
rhe expense of its neighbors and by elim- 
inating the influence of its “enemies,” the 
Jews, within Germany. I am deeply ashamed 
by what happened as a result of this philo- 

The contra^/ is true: Every nation will 
profit from good conditions in its neighbor- 
hood. Neither Germany’s economic miracle 
nor reunification would have been possible in 
hateful surroundings. We Germans worked 
hard, but we also needed partners for the 
exchange of goods and ideas. 

Cannot more people like Amos Oz be found 
to promote such thinkine in the Middle 

Miilheim-an-der-Ruhr. Germany. 

Military Interference in Turkey 

Regarding "Too Afraid of Islam" (Edit- 
orial, June 20): 

The editorial was a timely, although 
tame, expression of concern for the way the 
Turkish army and political establishment 
have arbitrarily ousted from power an Is- 
lamic-orien ted* political party that is com- 
mitted to the democratic process and enjoys 
the support of more than one-fifth of the 

Military interference in the name of sec- 
ularism is as undemocratic as the arbitrary 
actions undertaken by previous regimes. 

Democracy means respect for the will of | 
the people, the rule of law and the supremacy 
of the Parliament. The acquiescence of West- 
ern governments and media in the Turkish 
military’s brutal intervention deserves to be 
vigorously condemned. 


Islamabad. Pakistan. 

The writer served as press secretary to Making Tobacco P!ay 
former Hong Kong Governor Chris Patten. . 

“Cai/iiifi T Ink 

China’s Communist leaders say tough new 
« Restrictions are needed to ensure that Hong 
Kong is not ntmed into a base for subversion. 
Hong Knag's public rallies and protest 
rnajt hes posed no threat to China’s national 
s fcuriiy in all the years of British control. Why 
should they be a threat under Chinese rale? 


Haleiwa, Hawaii. 

1 am a Oiinese- American who visits Hong 
jwwg once or twice a year. The article “China 
’Mats an Even More Successful Hong 
Kong” (Opinion, June 16) caught my eye. I 
wish there were more leaders as statesmanlike 
•Mie writer, David K. P. Li, the chairman and 
chief executive officer of the Bank of East 
Asia Ltd. 

;Without resorting to emotional appeal, he is 
no * afraid to use such expressions as “the 
^ “himaie loss of face'* (should China fail io 
■ Hip Hong Kong as well as Britain did). All in 
^ the arguments he presented and (he ob- 
servations he made form a cogent piece of 
insight into the intricate situation of Hong 


Lnngmeaduw, Massachusetts. 

Regarding “ Sullen Tobacco Farmers: 
Somebody's Blowing Smoke" (June 24): 
American tobacco growers have a valid 
point. Why should they be castigated, and 
eventually penalized, because an adult vol- 
untarily buys a pack of cigarettes? 

We have' not heard of a deal (similar to the 
$360 billion one just concluded) between 
liquor manufacturers and representatives of 
the hundreds of thousands of people who 
suffer and die from alcoholism. Nor have we 
gleaned any information regarding imminent 
negotiations between U.S. meat processors 
and health authorities. 

Could it be that the states and health au- 
thorities undertook an ability-io-serve (debt) 
analysis of the industries that could be deemed 
liable for health-care outlays and concluded 
that the cash-flow prospects of the cigarette 
makers were far superior? 


Letters intended for publication should he 
addressed “ Letters to the Editor" and contain 
the writer's signature, name and full address. 
Leuers should he brief and are subject to edit- 
ing. We cannot he responsible for the return of 
unsolicited manuscripts. 

also pay payroll taxes and 
have a substantial net tax li- 
ability at the end of the year. 
The Center on Budget and 
Policy Priorities noted that 
families with incomes below 
$30,000 will owe $644 billion 
in federal taxes in the period 
1996-2000. Ninety percent of 
that liability will come from 
payroll taxes, not the federal 
income tax. If anyone needs 
tax relief, those families do. 

Three years ago Newt Gin- 
grich 's Contract With Amer- 
ica promised to apply the 
child tax credit against any 
net tax liability. Under the 
contract, even the employer's 
share of payroll taxes was 
considered part of a family’s 
tax liability. But die Repub- 
licans have broken that prom- 
ise. Now families like the Mc- 
Cumbers are completely 
frozen out, not even eligible 
for a partial credit. 

In previous Republican- 
sponsored proposals, the 
child credit was to be applied 
before the earoed-income tax 
credit was taken into account. 
That protected a few million 
more families than the current 
legislation. But there is only 
so much money available for 
tax cuts, and the Republicans 
tightened the requirements 
over the past few weeks. 

The squeezing out of low- 
and moderate-income families 
from participation in the tax 
cuts was necessary to protect 
the big cuts in capital gams and 
other taxes that will primarily 
benefit upper-income Amer- 
icans. That’s how the govern- 
ment works now, all benefits 
skewed to the top. The triumph 
of the well-to-do continues. 

The New York Times. 

Thirty Years Later , the Geezergate Follies: 
6 Dirty Old Man 9 Starr Just Never Gives Up 

W ASHINGTON — The Washing- 
ton Post, Saturday June 28, 


PROBE, by Bob Woodward 
FBI agents and prosecutors working 
for independent counsel Kenneth W. 
Starr's Whitewater investigation have 
questioned gerontologists and phar- 
macists about any knowledge they 
might have of whether former Pres- 
ident Bill Clinton has switched from 
Fibercon to Metamucil. according to 
sources close to the investigation. 

Agents have also questioned a num- 
ber of elderly women whose names 

By Maureen Dowd 


have been mentioned in connection 
with Clinton since he moved to a condo 
on the 16th hole at the Tiger Woods 
Golf Retirement Villas and Racial 
Healing Center in Oxnard, California, 
the sources said, to see if the ex-pres- 
ident had confided in them about chan- 
ging brands. 

Sidney BlumenthaJ, a spokesman/ 
taster for Clinton, said last night he had 
no immediate comment on the 8 1 -year- 
old former president's level of fiber 
intake. Clinton’s former wife, Hillary 
Rodham Clinton Rodham, chairman of 
the board of RJR Nabisco Disney and 
president emeritus of the Chicago 
Commodities Exchange, said she “no 
longer had to worry about what Bill 
Clinton put in his stomach. But I wish 
him well.” 

Susan McDougal, who has been 
manacled to Starr’s desk for several 
years now, reiterated that she would 
“never rat out my honeybear Bill for 
getting me that illegal loan.” 

The nature of the questioning by 

Stair's office marks yet another sharp 
departure from previous labyrinthine 
avenues of inquiry in his 33-year-old 
investigation. He started out with an 
incomprehensible land deal from 1 978 
and widened his scope to include 
everything incomprehensible Clinton 
had ever done. Then he widened his 
scope to include everything incompre- 
hensible Clinton might have done, in- 
cluding whether he had used a $25,000 
"sex slush fund” from James Mc- 
Dougal 's S&L to buy little black (ed- 
dies and big bottles of Soave Bolia for 
girlfriends. He also looked into Clinton 
connections to Area 51 and Roswell, 
the Bay of Pigs, the Trilateral Com- 
mission and the Iran-contra affair. 

After Clinton left the White House 
and accepted a job as dean of the Pep- 
perdine Law School, Starr's probe 
grew much wider. He adopted the max- 
im “Follow the honeys," looking into 
all contacts Dean Clinton had with his 
female srudents. Excited to be doing 
his sexual sleuthing in real time, Starr 
would sometimes escort the young 
ladies to their appointments with the 
dean. At night, the independent coun- 
sel would break into the dean's beach- 
front office with tweezers and a mag- 
nifying glass to search for evidence. 

Earlier this year, when Chelsea Clin- 
ton Cuomo became the youngest Su- 
preme Court justice in history, appoin- 
ted by President Joseph Kennedy. 
Starr, who was mentioned as a Su- 
preme Court contender back in the era 
when people did not think he was just a 
dirty old man. responded by widening 
the probe yet again. 

His office tracked down the grand- 

children of eighr Arkansas state troop- 
ers, now deceased, to see if they had 
beard anything their granddads might 
have said about anything any women 
who knew Clinton might have said 
about anything Clinton might have said 
about anything at all. 

Siarr now runs ihe second- largest 
division in government, after the Bu- 
reau of Government Reinvention. 
which grew like Topsy during Pres- 
ident Gore’s terms. The reclusive Starr 
emerged for a few moments to speak to 

Paula Jones recanted 
28 years ago and said 
she thought Clinton had 
‘‘sexy hair / 

CNN correspondent Wolf Biilzer Jr. 
His hair scraggly. his fingernails curl- 
ing a la Howard Hughes. Starr shook 
his fist at critics who say his probe has 
become a creepy obsession. He was 
unmoved. 2S years ago. when Paula 
Jones recanted' and said she thought 
Clinton had “sexy hair.” 

He said that, given the ex-presi- 
dent’s age, he would no longer in- 
vestigate whether Clinton was cavort- 
ing with a lot of women. He will only 
look into whether Clinton still thinks 
about cavorting with a lot of women. 

Starr said he would not be satisfied 
until he got the deathbed confessions of 
Bruce Lindsey and Webster Hubbell, 
but conceded that might take a while, 
since both remain in robust health and 
share a condo at the retirement home 
with Clinton and Blumenthal. 

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TUESDAY, JULY 1, 1997 
PAGE 14 

Milan Arrives 
At a Cultural 

The Season Takes On 
An International Flavor 

LOn tote 

to Let 

Clinton , , 
Regulate Itsefj 

By Suzy Menkes 

Imenuaitmal Herald Tribune 

M ILAN — Like lemon grass perfuming pasta, 
the Italian collections are taking on an in- 
ternational flavor. Instead of a mens wear cal- 
endar dominated by bravura Milanese design- 
ers, this season Jil Sander from Germany, Jean Paul 
Gaultier from Paris and John Bartlett from New York have 
all converged on Milan. 

• Since Gianni Versace, who usually opens the spring- 
summer season, showed last week in Florence, Milan now 
seems less Italian and more a fashion cultural crossroads — 
although everything is based on the fine fabrics and man- 
ufacturing power of Italy. 

Sander’s show Monday took a stride forward in the 
international arena. Although known for modernist tail- 
oring, she opened with sportswear — classics like wind- 
breakers and Short riding coats given a twist with super- 
hght modem materials. The story was in the precise pro- 
portions of flat-front pants to plain sweaters, in the quality 


of glove-soft leather jackets and in the details like shirt 
collars, buttonholes and the Velcro-fasiened shoes. 

“It’s sophisticated sportswear done in a cool way/’ 
Sander said.' She had also given a sportiness to summer 
tailoring, which included lightly structured suits in mat, dry 
fabrics Eke treated cotton and slithery effects in viscose. The 
cut of the jackets was soft at the shoulders, bur with more 
shape than last season's boxy silhouette. From the apparently 
simple sweaters in cream, gray or navy, through the soft- 
draped jackets in twisted cotton, the clothes deserved to be 
touched and studied rather than seen just on the runway. 

There is now a divide between designers whose work is 
introverted — based on the exactness of detail and the 
subtle drape of cloth — and die extroverts. Gianfranco 
Ferre is for showmanship, and his desert-beige collection 
— with sand on the illuminated runway — was to fashion 
what “The English Patient’ ’ was to movies: an epic. 

Out came an army of models in their North African- 
inspired clothes — soft white suits, sand-pale djellaba 
sweaters. Bedouin-stripe knits — all larger than life but 
magnificently luxurious of their kind. The bronze torsos of 
muscled models rippled through ribbed knits or were thrust 
into soft ginger suede shirts. 

“Africa to me is savage and free,” said Ferre after taking 
his bow Withm odels wearing billowing silk caftans in 

shades of brown: His great escape took sportswear to new 
to belong in this fashion world. 


another Man 


horizons that did not seem to belong 

Dolce & Gabbana has a strong signature style, but when it 
opened the Milanese shows on Sunday with an embarrassing 

hnmOAo tm TovmnaPA rtiAn « z® 

homage to Japanese style, it was a toe-curling moment for 
ionak. The idea must have looked quite fun: 

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fashion professi_ 

Take elements of title i980s from punk (mpjaHic a 
.the inside legs and rib cage) through Co mine des ( 
asymmetry and crumpled, destroyed fabrics. 

But whereas Domenico Dolce and Stefano Gabbana 
might have stirred these ingredients into their body-con- 
scious macho style, instead they were served up raw: bias- 
knitted sweaters dragging across the torso above pants so 
big and baggy that the cuff swallowed the shoes. The show 
certainly brought back one aspect of the 1980s: the fashion 
victim. Individual items, like gauzy sweaters and white 
shirts, were fine. And just a few slim- line suits and powerful 
pimento-red suede sportswear showed a tantalizing 
glimpse of Dolce & Gabbana ’s sleek, modern style. 

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Wolfgang Ley, president of Escada. and clockwise from top left: sleek pin-striped jumpsuit : long-line transparent 
mesh dress : masculine-feminine suit with hadit e and Mouse, and Paulina Porizkova in couture hall gown 

From top: Dolce & Gabbana' s bias-knit sweater 
and baggy pants; Jil Sander's cotton canvas suit 
with white shirt and Velcro-fastened shoes, and 
Sander's super-light cotton windbreaker. 

C ERRUTI’S collection seemed a bit floppy for a 
man who looks to the house for tailoring. But the 
fashion story was in its ambiguity, as a shit 
became a jacket (and vice versa) and deliberate 
mismatches of color and fabric played on tone and texture. 

Krizia’s new designer took the house back to its roots in 
knitwear. .The Englishman Tom Bailey, who formerly 
worked with Yves Saint Laurent, showed against a trans- 
parent scrim and daylight to emphasize the sweet, pale 
sugared-almond colors and die light-as-a-feather clothes. 
They included gauzy layered sweaters, pallid suits, sleeves 
with light-to-dark shading and a witty sweater printed with 
what looked like the ribs that are so visible in the new 
season's blow-away clothes. 

Keeping Th em Happy at Escada 

After 20 Years, Can 350.000 Loyal Fans Be Wrong? 

By Suzy Menkes 

inUTnarionjl llcrji.l Tribune 



i The Hatfields or 
the McCoys 
a Trip to Mecca 
B Quench 

14 Any one ol three 
English rivers 

is "Summertime." 
e.g .in "Porgy 
and Bess" 
is Jazzman's cue 

17 Woolen wear 
30 Bizarre 
it Small ball 

The Finance 
Merchants Group 

Offshore Commercial Banks 
Bahamas. Tel: 13421 394-7080 
Fax. i242i 394-7082 

23 Makes certain 
35 Long, long time 
38 Toyota model 
28 Govt agent 
32 Fortify, as a 

37 Brit's reply in 
aa Spot In a 


41 Cowboys' 

42 Said again 

43 Not new 

44 Scold 
48 Court 
4i Riddles 
sa Names 

58 A lot Of 
Shakespeare's - 

59 Ambassador's 


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84 Touches lightly, 
as wftha hanky 
. «a Soccer shoe 
gs Ending with 
cable or candy 
67 Command to 

40 Polygraph 

11 Westernmost 

12 Canal to (he 

13 Raison d' 

i« Debussy's "La 

19 Rider's "Stopr 

23 "What's this, 

24 "Star Trek" 

37 Kind of lab dish 
28 Matt ingredient 
as Catcher's . 

30 Suit to 

ai Taped 

32 Very light brown 

33 Conductance ' 

34 'Venerable" . 
English writer - 


1 Drink served 


2 Hawaiian feasts 

3 Aides-de-camp: 

4 India’s first P.M. 



a Sheet music 

t Goes kaput 
B Quartz variety 
•Oft-televised • 

35 Passed with- ' 
flying colors. 

38 Bout outcome, 
in brief 

37"— Sera, 

as Give up 

40 Begin bidding 

44 Baskin- (bobbins 

45 Show off on the. 

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Solution to Puzzle of June 30 

46 Isle of— 
48 Diagrams 

80 French 
. Revolution 
figure Jean Paul 
■i Microscopic 

92 Giving a little Kp 

83 Electrical tetters 

84 Sen. Gramm 

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58 WBer whale 
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M UN ICH — In 1 998, Escada 
will celebrate 20 years in 
fashion. Over the weekend, 
it sent out the anniversary 
collection for next spring and summer 
— colorful, upbeat clothes that were 
relatively pure and simple. 

The water cascading down the back- 
drop in the vast show arena near Munich 
was symbolic of a fresh spirit from a 
house that was once a byword for flash 
and glitz. A new purity and fluidity was 
the message of the long-line cardigan 
jackets, executive pinstripes, gauzv 
knits and colors that might be neutral or 
metallic rather than jusr jewel bright. 

Everyone haui an image ol' Escada as 
bright colors, big buttons and for their 
grandmothers," said the design direc- 
tor. Brian Rennie, explaining his urge to 
appeal to a new generation. “This show 
is not a return to the 1 9S0s. but to the 
values that we have stood for — im- 
peccable fabrics, great tailoring and 
things to make the customers happy." 

There are 350.000 dedicated *' Es- 
cada women" — loyal followers of 
each season — and they are the people 
whom the anniversary year will fete, 
according to Wolfgang Ley, the com- 
pany’s president and co-founder. 

“I have seen jubilees and anniversar- 
ies where everything is done for the 
company — 1 think we should honor our 
loyal customers," says Ley. He called 
the show audience of 1 .500 buyers and 
suppliers "a get-together of our inter- 
national family" and his hourlong ad- 
dress included a slide show of new 
stores in Florence. London and Taipei 
and a wands for leading salespersons. 

F IRST up on stage was Elaine 
Cohen of the New York flagship 
store with an annual 1996 *s:des 
figure of $4. 1 million; next Ann 
Wang of Los Angeles with $3.6 million. 
Even in a period when a booming econ- 
omy is beginning to arouse sluggish fash- 
ion sales, these figures are awesome. 

What is the secret that has turned the 
Escada group imo a company with 1.4 
billion Deutsche marks ($810 million) 
in consolidated net sales in two decades 
— and one based genuinely on clothing. 

rather than on ancillary products? 

"It sounds so easy — you give all 
women what they want and what they 
need, with value and quality." Ley said. 
"Twenty years ago I was a manufac- 
turer. 1 adopted the attitude of a retailer 
and ihe eyes of a consumer. This is the 
difference: The consumer conics first." 

Rennie played to the clients in the 450- 
outfit show. They like jackets, so jackets 
came in abundance, from the pin-striped 
pantsuits (illuminated with fancy men’s 
vests I. through gleaming leather coats 
anil bright blazers. Lacy cardigan tops 
worn with shantung pants looked fresh 
and so did sheer lops, used sensibly with 
lagoon-blue swimsuits. Bright yellow 
punlsuits ( think matching high heels ) and 
bold animal prints gave the collection an 
assertive femininity in the tradition of the 
late Margaretha Ley, the company's 
founding spirit and the woman who. Ley 
says, taught him everything. 

The couture part of the collection was 
strong but relatively quiet, with ns lacy 
dresses and white silk- pantsuits cut on 
slender lines. There was just a smat- 
tering of ball dresses, including a dra- 
matic bronze gown worn by (lie modcl- 
tumed-actress Paulina Porizkova. the 
face of the new fragrance. Only the 
"occasion" dressing tread fancy suit 
and hai for mother of the bride) seemed 
stuck in an older groove. 

The success of Ihe expanding couture 
line i worth i 8 million DM in sales) was 
shown by photographs of Eseada- 
dressed celebrities from Princess Diana 
through the Chinese actress Gong Li. 
Jerrv Hall and Queen Sofia of Spain. 

\ et Escada remains a lashion conun- 
drum. For here is a house with a definite 
style — extrovert and energetic — but 
no artistic soul. 

Rennie, an English designer trained 
at London’s Royal College of Art. has 
been with the company near I It) years 
and has a design team of 1 9 m his , 
They might have given an id..nt»i\ to 
Escada b\ absorbing into; I Hen ions 

the rich heritage ol the town 's 
spires, ocher buildings and decorated 
facade*. There ought to be a rkli source 
ol inspiration in die Bavarian yiimer- 
bread hou>e:.. rococo palaces Ccidant 
forests and even die lolkloric I vr.»L -. n 
costumes. Or even in Escada \ Munich 
boutique, which has a liiM,„-k luc.nleul 

cavorting cherubs, although it is airv 
and luxuriously modem inside. 

Instead of a creative signature, Es- ! 
cada design is an echo site, with a faint ■ 
resonance of Gucci in the pinstripes. : 
Hermes in the leather. Versace in a slip 
dress and so on across fashion’s world- 
wide designer web. The clothes are high ’ 
tashion digested and made palatable for 
a no-nonsense consumer. Or as Ley puts 
it: “ We try and translate creativity into a 
modem, salable product. " 

The American designer Todd Old- 
ham was brought in as a consultant two ' 
years ago. He sat front row in funky 
madras pants, but he admits that “it’s 
hard to describe exactly what I do ! 
here," among "a cast of thousands." 

Rennie says that the Escada collection 
is meant to be a client pleaser, although he * 

always tries to "push them forward.” 

"I am proud that every single outfit . 
on the runway, except for one ball dress. . 
is for sale," he said. "I like to push the • 
boundaries, but it’s all about making J 
money. I still send every new designer ” 
out to the boutiques so that they see what 
the customer wants." 


T HE international designer 

shows seem increasingly di- 
vorced from the reality of wom- 
en s lives. 'but Escada takes the 
opposite approach. For the Escada Sport 
collection (a separate. 80 million DM 
division started two years ago), the _ 
design team defined aspects of a modem' 
woman a nonworking life and divided 
the collection into free rime, weekend 
and active wear. The clothes are made in 
an expansive choice of colors, sizes and 

• J" stores - l°yal clients are cher- 
ished like airline frequent fliers, and even 
passing customers are offered a drink, a 
p ace to sit — and in the Munich store a 
flower-strewn terrace. A high-spending 
inuture customer might be offered a 
home visit to select clothes in privacy. 

.. n w h\ shouldn’t shoppers have such 
Mpeciations 0 f buying 

und h , C „n women 5* “» b “y 

fc c ro 

a : 

,,_,i , — <uc iuw pusy 

and mo sawy i 0 accept kiss-off fines 
like not in vour six*’" rtr “nomr ■ *>*%’-* 

not m your size" or "navy isn’tin 

II s jeason j us t for the service they 
f *' L ,n •nvir customers, Escada deserve 

w»mS l ! wrc,a ! succcss - And 350,000 
wnrm.n bear witness to that. 




PAGE 15 

U.S. Rejects 


*0n Internet 

i Clinton to Let Business 
} Regulate Itself On-Line 

By Rajiv Chandrasekaran 

Washington Post Service 

*3 WASHINGTON — A/tera two-year 
5 study, tbe administration has decided 
aot to call For new taxes or regulations 
on business conducted over the Internet 
and instead will largely allow the 
private sector to determine how it will 
operate in cyberspace. 

The stance, detailed in a report to be 
released Tuesday by President Bill Clin- 
ton, is a departure from the federal gov- 
. eminent's practice of closely regulating 
* other electronic networks, such as tele- 
phones, television and radio. 

Administration officials and technol- 
ogy industry leaders contend that new 
laws and taxes could stymie tbe de- 
velopment of electronic commerce. If 
left loosely regulated, industry analysts 
say. Internet trade in the United States 
could reach $200 billion by 2000. 

“For this potential to be realized 
fully, governments must adopt a non- 
rcgulaiory, marker-oriented approach, ’ ’ 
the report’s final draft says. 

Industry executives who have seen 
draft versions of the report commended 
the -administration’s approach, saying 
that businesses, wary of the Internet, 
need the incentive of regulatory free- 
_ dom to embrace electronic commerce. 
™ Consumers, too, have been cautious 
about making purchases on-line. 

The report also highlights a shift in 
the administration’s policy toward adult 
material on the Internet in the aftermath 
of the Supreme Court's rejection last 
week of a federal law forbidding the 
transmission of ‘'indecent” material to 
minors over computer networks. 

Although the administration had sup- 
ported the law, it is now asking the 
industry to police itself through a ratings 
system and advocating the use of soft- 
ware dial allows parents to block chil- 
dren's access to objectionable Internet 

The report, in many ways, is intended 
to international agenda for the 

U.S. Economy Shows 
Signs of a New Surge 

Manufacturing Data for June Rise 

AIRING OF A SCANDAL — Juergen Schneider, right, arriving Monday for trial in Frankfurt on charges the 
real-estate tycoon defrauded banks of 300 million Deutsche marks ($174.1 miflion). He said the h*nic< bore some 
responsibility. With him were his lawyer. Franz SaJditt, left, and a co-defendant, Kari-Heinrich Kuepferie. 

French Jobless Rolls Increase by 1.1% 

See WEB, Page 20 

C.trfAledin Oar Stiff Firm Oupathn 

PARIS — The government said 
Monday that the number of unemployed 
workers jumped 1.1 percent in May, 
reversing three months of declines, as 
French companies remained reluctant io 
hire amid sluggish economic growth. 

The number of jobless rose by 32,400, 
to 3,1 1 3,500, in a reminder to the new 
government of the uphill task it faces in 
fulfilling its campaign pledge to cut 
unemployment But the jobless rate was 
unchanged at 12.5 percent 

The rise was the biggest monthly 
increase since October 1993, the Labor 
Ministry said. Over the past year, tbe 
number of job-seekers has risen 2.3 

Fiance’s high unemployment rate 
was a key reason why the center-right 
coalition lost a general election June 1 to 
Lionel Jospin’s Socialist-led alliance. 
The new prime minister has pledged to 
create 700,000 jobs, a promise that 
economists say will be hard to keep. 

Members of his party criticized Mr. 
Jospin this weekend for failing to stop 
tbe French automaker Renault S A from 
closing a plant in Vilvoorde, Belgium. 

“This unemployment figure," said 
Eric Chaney of Morgan Stanley & Co., 
“unveiled when the closure of a Renault 
factory in Belgium was confirmed, is 
likely to have political implications. 
The Communists are going to exert 
strong pressure on the government to 
accelerate its jobs program.” 

Before the election, Mr. Jospin said 
he would oppose the closure. However, 
the government’s need to reduce the 
budget deficit to 3 percent of gross 
domestic product — the limit to qualify 
for the European single currency — 
means it cannot easily afford to bail out 
companies. ( Bloomberg. Reuters) 

■ Finnish Growth Rate Soars 

Finland’s GDP grew 8 percent rate in 
April compared with the year-earlier 
period and increased 0.5 percent from 

March as agriculture and forestry activ- 
ity soared, Bloomberg News reported 
from Helsinki 

Although the economy was expand- 
ing faster than expected, analysts said 
they were not concerned that the strong 
growth would fuel inflation because the 
unemployment rate remained high. 

“The figure was high because of spe- 
cial effects, such as differences in work- 
ing days and low comparative figures 
from last year,” said Kirsi Hokka, an 
economist at HandeLs banken in Hel- 
sinki. “High unemployment helps keep 
inflation at moderate levels.!* 

This year, April had 2 more working 
days than last year. Figures were not 
adjusted for the difference. 

Growth and inflation figures are 
closely watched in Europe because most 
central banks are mandated to raise in- 
terest rates if growth threatens to fuel . 
inflation. In FuilancL tbe central- bank 
focuses both on inflation and maintain- -y 
ing a stable currency. .. 

CetfoM biOwShffFmm Dbpmriuv 

WASHINGTON — The U.S. econ- 
omy displayed signs of a return to strong 
growth Monday as reports showed that 
manufacturing surged in June and that 
sales of new single- family homes staged 
a s tro nge r- than -expected rebound in 

A manufacturing index compiled by 
the Purchasing Management Associ- 
ation of Chicago jumped to 61.5 in June 
from 56.8 in May, while die New York 
purchasing managers' index rose to 
64.9 from 50.S a month earlier. . 

. Commerce Department figures 
showed that sales on new single-fam- 

homes advanced 7.1 percent in May 
after falling a revised 8.1 percent in 

Bonds and blue-chip stocks fell on 
the news, as investors worried that the 
Federal Reserve Board might need to 
raise interest rates to guard against in- 
■flation if the economy continues to re- 
bound. . 

“These numbers are fairly jarring,” 
said Peter Kretzmer of NationsBank 
Cojp. “They're strong across tbe 

. The Fed’s Open Market Committee, 
which determines monetary policy, 
meets Tuesday and Wednesday. 

A separate report from tbe Commerce 
Department, however, provided some 
evidence that growth was still moderate 
and that inflation was not yet a threat. 

Consumer spending and personal in- 
come both rose 0.3 percent in May, in 
line with most analysts’ expectations. 
Personal consumption had risen just 0. 1 
percent in April, its slowest advance 
since last September. 

Analysts said they thought spending 
had decelerated to about a 2 percent 
annual rate during die April-June 
quarter, less than half the 5.6 percent 
rate of the first three months. But in tbe 
months ahead, they said, the highest 
levels of consumer confidence in three 
decades and low unemployment could 
provide more growth. 

Consumer spending represents about 
two-thirds of U.S. economic activity. 

•.-in ,-anfeffbrt io prevent tbe economy 
frbhrowcx&eatingand to extend the ex- 
ponfSony- tbe ;Fed> tightened credit in 

Match for the first time in more than two 
years, bumping up a key short-term rate 
by a quarter percentage point, to 5_5 

Since then, die economy has slowed 
sharply, to an annualized pace of be- 
tween 1.5 percent and 2.0 percent in the 
second quarter from a sizzling 5.9 per- 
cent rate in the first The first-quarter 
rate was the fastest clip in more than 
nine years. 

“The slowdown has come quicker 
and more abruptly than many people 
had expected,” said Joel Prakken, 
chairman of Macroeconomic Advisers. 
“It has kind of frozen everybody.” 
Monday's reports sent bond prices 
lower, lifting the yield on the bench- 
mark 30-year bond to 6.78 percent from 
6.74 percent on Friday. (Page 16) 
“History would suggest that this 
strong growth and low inflation is 
something that can’t last forever,” said 
Gary Thayer of A. G. Edwards & Sons 
Inc. “There is still the risk that the 
economy stays strong, which means it’ll 
be harder to keep inflation restrained.” 
The Chicago purchasing managers 
report, considered by many a harbinger • 
of a national report scheduled to be 
released Tuesday, showed that while 
Midwestern manufacturers continued to 
pump out goods, prices had fallen. The 
national report is also expected to por- 
tray growth in factory activity, though 
perhaps at a slower pace than the Chica- 
go and New York indexes. 

In the home-sales report, the level of 
new sales climbed to a seasonally ad- 
justed annual pace of 825,000 in May. 
'That may translate into increased pur- 
chases of appliances and other big-tick- 
et goods, Mr. Kretzmer said. 

Moreover, the supply of homes for 
sale nationwide — a key gauge of con- 
sumer demand — decreased by 1.8 per- 
cent in May to an annualized rate of 
280,000. tire lowest since July J993. 
The inventory of vacant homes also fell 
to a 4.1 -month supply, the lowest since 
July 1971. A supply exceeding six or 
seven months suggests that real-estate 
markets are saturated. 

Lower prices and mortgage rates at- 
tracted buyers. The average price of a 
new home fell 7.1 percent to $166,900 
in May, (Bloomberg. AP. Reuters) 


Thinking Ahead /Commentary 

Europe Should Drop Its ‘Third Way’ 

By Reginald Dale 

/inermoimul Herald Tribune 

WASHINGTON — A debate among Western leaders 
about the future of capitalism ought to advance tire cause of 
international understanding. But the childish exchanges 
between Americans and Europeans over whose economic 
model is superior at the economic summit meeting in 
Denver in June have had exactly the opposite effect 
By bragging clumsily about U.S. economic successes to 
bis Group of Seven partners. President Bill Clinton simply 
entrenched many Europeans in their resistance to the free- 
markei “ Anglo-Saxon model”, and heightened their de- 
termination to find fault with the American way of life. 

The result has been to spur on those, like the new Labour 
government in Britain, who are ped- 
dling a different kind of potent medi- 
cine — a so-called Third Way, which 
would supposedly avoid the worst fail- 
ings of both the U.S. and. the European 
systems. Such talk is both dangerous 
and misleading. The risk is that it will lull Europeans into the 
erroneous belief that there is an easy exit from their current 
problems of slow growth and sky-high unemployment 
That is precisely the illusion to which President Jacques 
Chirac of France fell victim when he too indulged in Third 
Way rhetoric after his election two years ago. and then 
watched helplessly as unemployment soared. 

Europeans have ‘been vainly seeking a Third Way — 
initially between capitalism and communism — since the 
1920s. The demise of communism has now further nar- 
rowed the available choice of economic models. 

The idea that Western countries are ax a crossroads from 
which Route One leads to the United States, Route Two to 
Continental Europe and Route Three to a lotus land of full 
employment and social solidarity simply does not fit the 

It is true that with the end of the Cold War, differences 
between America ’s individualistic capitalism and Europe’s 

more collectivist variety have emerged with greater clarity. 
But there are not just two monolithic models, one on either 
side of the Atlantic. 

In Europe there are still big differences between the free- 
trading North and the traditionally protectionist, more 
authoritarian South. Although northern Italy is the richest 
part of Europe, the country as a whole, by one measure, now 
has more of its economy under state control than Russia 
Even in the United Stales, attitudes to capitalism are 
different in,- say, Texas and Massachusetts, and America is 
not as exaggeratedly laissez-faire as Europeans often sup- 
pose. People are not just left to die on the street or refused 
emergency medical care. An attempt to abolish rent con- 
trols in New York City has met with howls of protest. 
Europe, on the other hand, is more flexible and varied 
than man y Americans i-hinlc. U.S. 
companies respond to market fences 
by expanding or reducing their work- 
forces; European companies keep tbe 
same number of workers but have 
them work longer or shorter hours. 
Most Europeans know they have to modernize their 
economies, but they are doing it at different speeds. Britain, 
the Netherlands and Ireland, for instance, are in tbe fore- 
front, followed by Spain and Portugal. Germany is strug- 
gling to change, while France, under its new Socialist-led 
government, is heading backward. 

There is no mystery about what Europe must do if it wants 
to create more jobs. Rather than dream about a meaningless 
Third Way. it must deregulate its labor markets, reduce tbe 
high cost of social benefits, make both hiring and firing 
easier and encourage entrepreneurial initiative to flourish. 

There can be no escaping die conclusion that this means 
becoming more like America. It will be much easier, 
however, if Europeans understand that they can learn from 
the United States without having to adopt the whole Amer- 
ican system lock, stock and bane!. Unfortunately, that was 
not tire message from the economic summit meeting in 


There is no easy exit 
from economic problems. 

We’re not just on the map. 
We’re all over it 

It’s not only our vast worldwide 
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side at all times. 

It’s our total commitment to saving 
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From the time we opened our 
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Credit Lyonnais has earned an 
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Banking based on dialogue and 
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The founder of Credit Lyonnais. 
Henrf Germain, expressed it most 
succinctly when he created the 
bank’s motto: 



June 30 UbicMJbor Rates 

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June 30 

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Sauras Reuters, Lloyds Bank. 


Other Dollar Values 

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CMKtenBA 1.73M 12358 12320 

Sources- IMG Boot fWtoHtoi todaumr Bat* (SmssetsL 

■ . . *4»T «tdor 5Mu r 

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Commerzbank Ostfif Lrmau. 


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PAGE 16 



I f -t.,-. ,-. ... 

I investor’s America 

Domos Drops Cuban Phone Stake Stocks Xread Water 

Mexican Firm Hit by Sanctions and Financial Problems The Nasdaq con^xsae in 

■ v i» mmm t xrrxTt T7 fltf* L, -SfL 

By Larry Rohter 

New York Times Service 

MIAMI — Hamstrung by tl.S- eco- 
nomic sanctions and its own financial 

problems, Gmpo Domos, the Mexican 
conglomerate mot had beat die largest 
foreign investor in Cuba, has relin- 
quished its stake in the Caban tele- 
phone company and withdrawn from 
the island. 

For die last three years, foe tele- 
communications company based in 
Monterrey has been minority partner in 
a $750 million joint venture with the 
Cuban government in that country's 
telephone monopoly. But Cuba's 
phone system once was owned by U.S. 
interests, which became an issue last 
year after die U.S. Congress acted to 
intensify die 35-year -old economic 
embargo against Cuba. 

The legislation, enacted after Cuban 
warplanes shot down a pair of U.S.- 
registered civilian light planes over in- 
ternational waters, requires foreign 
companies to report to Washington any 
property they have in Cuba drat was 
confiscated man American owners by 
the government of Fidel Castro. Those 
companies can then be sued in U.S- 
courts for compensation. 

Last summer, Domos was one of 
three companies identified by the Clin- 
ton administration as violating the 
measure, known as the Helms-Burton 
Act, after its two principal sponsors. As 
a result, top Domos executives, share- 
holders ana family members have been 
denied U.S. visas. 

Cuban exile groups here, as well as 
some U.S. officials, are citing Domos ’s 



Very briefly; 

• Canada said a Worid Trade Organization appeals board 

1 I 1 1 J _ il. «•>>» «n o^itinne nf 

had upheld a ruling against its taxes on domestic editions of 
such U.S. magazines as Sports Illustrated. The board also 

ruled for Washin g ton in rejecting fanadian postal subsidies 
for domestic publications, reversing the original finding. 

• JP Foodservice Inc. is buying Rykoff-Sexton Inc. for 
a boat$ 1.4 billion in stock and debt to create the second-largest 
U.S. food distributor. Rykoff shareholders are to receive 0.84 
JP Foodservice shares for each of their shares. 

• AT&T Corp. will cut basic long-distance rates for con- 
sumers by 5 percent during foe day and evening and 15 percent 
at night and on weekends. The reductions, to take effect July 
15, are for customers not already enrolled in a calling plan. 

• General Motors Corp. and United Auto Workers ne- 
gotiators resumed talks aimed at ending a two-month-old 
strike at a Pontiac, Michigan, pickup truck plant 

• Bay Networks Inc. said it will make its equipment com- 
patible with U.S. Robotics Corp.’s 56K technology, giving 
the modem maker an important ally in the battle for the high- 

withdrawal as proof that Helms-Bur- 
ton is an effective tool in weakening 
Mr. Castro and the Cuban economy. 
But analysts say that Domos’s decision 
was made for reasons that are far more 
diverse and complicated. 

Officials at foe Ministry of Foreign 
Investment and Economic Coopera- 
tion in Havana did not respond to tele- 
phone inquiries. Domos executives did 
not return telephone calls seeking com- 
ment The Domos action was first re- 
ported Friday in The Miami Herald. 

Both Mexico and Canada, partners 
of the United States in foe North Amer- 
ican Free Trade Agreement, have 
severely criticized Hebna-Buiton, de- 
scribing foe law as a restraint on trade 

U.S Executives Warn 
Against Sanctions 

Bloomberg News 

WASHINGTON — The United 
States should be cautious in imposing 
trade sanctions on other nations, a 
White House report said Monday. 

The report by President Bill Clin- 
ton’s Export Council, which includes 
top executives of major U.S. compa- 
nies, said trade sanctions imposed by 
Washington could end up harming 
U.S. corporations. 

The report estimated that bade sanc- 
tions cost U.S. corporations between 
$15 'billion and $19 billion in 1995, 
along with 200,000 to 250,000 jobs. It 
did not estimate how many jobs were 
preserved by tariffs on foreign goods. 

and investment that violates the agree- 
ment and other international treaties. 
European allies of foe United States 
have also attacked foe measure and 
threatened to file a formal complaint 
with the Worid Trade Organization. 

The Domos deal was announced 
amid great ceremony in Havana in 
1994 in the presence of both Mr. Castro 
and Carlos Salinas de Gortari, then foe 
president of Mexico. At foe time, the 
agreement was seen as opening the 
' way to future Mexican involvement in 
refurbishing and expanding various 
Cuban industries. 

But the Mexican peso collapsed later 
that year, plunging the investment into 
jeopardy. A weak peso made it in- 
creasingly difficult for Domos to ob- 
tain foe dollars it needed to fulfill its 
obligations under foe agreement, and it 
missed several deadlines. Cuban gov- 
ernment officials said. 

Worried that p lans to modernize the 
moribund Cuban tel epho ne system, ex- 
propriated from the ITT Corp. in 1960, 
were in danger, Havana began looking 
for other foreign investors. The Italian 
company Societa Finanziaria Telefon- 
ica eventually came in as a partner, and 
has given every’ indication it intends to 
remain in Cuba. 

U.S. o fficia ls and industry execu- 
tives said ITT, which has $130 million 
in outstanding Cuban Haims and 
STET have been talking intermittently 
for several months about an agreement 
to compensate foe U.S. company for its 
confiscated holdings. In the ory, s uch 
an accord would exempt STET ex- 
ecutives from Helms-Burton’s most 
damaging provisions. 

Ciwar3rd tnOarSlgFrrm Dtsparko 

NEW YORK — Stocks 
finish ed mixed Monday as 
signs of robust economic 
growth sent bond yields high- 
er, undenmnfog prospects for 
rising corporate earnings. 

Bank stocks fell, while 

lile investors do not ex- 

pect foe Federal Reserve 
Board to raise interest rates at 

The Nasdaq composite in- r 
dex, winch is ; . heavily ’ i. 
weighted . with Concert-: 
shares, rose 332 ^ io ts442.07. ■’ 
Some traders 'sSd. .foey:^' 
were awaiting foejcfe repOTt V 
for June, which the ■ 
partment will releas^ Thurs^ - 

will provide further c&esas tgw 
whether the central b&k wm& 



Board to raise interest rates at 
a two-day policy meeting 
starting Tuesday, many ana- 
lysts predicted that lending 
rates wonld be pushed higher 
by year's end. 

“It’s aquestron of when the 
Fed bumps rates, not wheth- 
er,” said Joseph Dqyle of 
1 838 Investment Advisors. 

The Dow Jones industrial 
average finished down 14.93 
points, at 7,672.79, but the 
number of advancing issues 
outn umb ered foe number of 
declining ones by a S-to-4 ra- 

J.P. Morgan shares fell 2 to 
10436. The investment firm, 
which is the found most heav- 
ily-weighted stock in foe 
Dow industrials, is in talks to 
buy a minority stake in Amer- 
ican Century Investment, foe 
mutual fond company said. 

The Standard & Poor’s 
500-stock index fell 20.10 
points, to 885.20. Compaq 
helped foe index pare an early 
loss. Stock in the computer 
maker rose 1 to 99% after it 


unveiled a pair of PCs priced 
below $1,000. 

‘—A i. \ 

indeed raise rates thisyear tq_.~ . 
cool foe economy aod Jteeq^ . 
inflation in check. •: .- 

Bank shares retieatedas the/: . - 
yield on foe bendunaik 30^ : . 
year Treasury bond climbed to" ' 
6.78 percent from 6.74 petj.. ’ 

16 to 65 7/16. after it raid \ 
would acquire Montgomery J 
Securities for $1 2. billion- ^ 
AT&T shares fell % to 3C! ” 
15/16, and SBC Conmuuu> s . 
cations stock . rose PA to SI 1 * . 
11/16, after reports that raep* 
ger talks between the two : 
telephone companies, had- ' 
fallen apart amid government , 
opposition. SBC said it would -i 
press ahead with plans to of- 
fer long-distance service in " 
foe seven states where - jt 
provides local service. 

Insurance companies, 

which are big buyers otfixed- 
income securities with foe 
money they take in from 
premiums, dropped as bonds 
lagged. ; 

(Bloomberg, AFX) 


us* J 

I . itfjtf* 1 "* 
^ Rev 


Dollar Climbs to a 3-Year High Against the Deutsche Mark 

Canoed t& or otiptsda The dollar rose as high as 1.7464 rift within Germany's governing co- lift from figures Monday that showed Monday mornin g highlighted the 

NEW YORK — The dollar rose DM, its highest since Feb. 14, alition on whether to loosen that the number of unemployed French strength of consumption, and the 
to a three-year high Monday against 1994. In New York, it was at requirement widened this weekend, rose 1.1 percent in May. Traders said possibility of inflationary risks, and 

Weekend Box Office 

foe Deutsche mark amid signs that 
the planned single European cur- 
rency may prove weak. 

The Associated Press 

LOS ANGELES — “Face/Off” dominated foe U.S. box 
office over the weekend, with a gross of $22.7 million. 
Following are foe Top 10 moneymakers, based on Friday's 
ticket sales and estimated sales for Saturday and Sunday. 

rency may prove weak. The dollar pared some of its gains France forecast that its 1997 def- 

Expectations that France and in early New York trading, hurt by a icit-to-GDP ratio would exceed the 

Germany wifi not meet, certain decline in U.S. stocks and bonds, m. — . ■■ ■m. ■ 

budget requirements for entry into traders said. FOREIGN EXCHANGE 

economic and monetary union are The dollar’s gains against the yen 

France forecast that its 1997 def- ion, or a soft euro from foe outset UK. interest rates could take place 
t-to-GDP ratio would exceed foe The pound, meanwhile, rose to earlier than previously expected. ’ ’ 

another five-year high against the New consumer credit amounted 

FOREIGN EXCHANGE mark on expectation of an increase to £1.10 billion, compared with 

i if . _ - a i i • 

in British lending rates. 

£806 billion in April, well above 

feeding the concern, as is discord in was limited by Japanese exporters 3 percent limit and analysis are pre- In late New York trading, the analysts’ forecasts. 

1. F«WOff 

2. Hercules 

3. Batman & Robin 

X M? Best Fftanift Mfetkflna 

5. Can Air 

6. Lost Worid: Jurassic ParK 

7. Spaed £ Crabs Control 
-BJJarUar .. 

. 8. Austin Rowan 
10. Wee's GoM 

(Warner BmsJ 
(TridarPkjum) . 
(TauctBtjne Pictures) 

rnwriMcuto rf*o 


(Orion PkJtmsJ 

02.7 muon 
’ $637,000 

Germany over easing some of the selling dollars for yen to bring end- dieting it will be difficult for Ger- pound rose to 2.9043 DM from Traders were awaiting foe present- { 

•vMTlnHMwatitn *n«#I /vF rTlrtn nrrtfifC Fl/VmO Tk.l TIC VMnntr t/\ mBAt M/aiaawAPMAaati T OftTO A JaIIa* Z* mmm A. l I 

requirements, analysts said. of-monfo profits home. The U.S. many to meet that requirement 2.8928. Against the dollar, it rose to ation of foe Labour government’s 

” , u ., 1 c I iten c a * i ecu i i m.j , < - , 

“Voices out of Europe,” said currency was at 1 14.655 yen, down ^ 

John Bovenizer, head of foreign ex- from 114J45 yen Friday. have pledged to proceed with mon- The dollar rose to 5.8802 French the market would take note primarily [ 

change at Norddeutsche Landes- In Europe, countries hoping to etary union as planned, missing def- francs from 5.8678 and to 1.4615 of measures (xmeeming households j 

Since politicians in both countries S l .6657 from $1 .6634. 

budget on Wednesday. Analysts said 

bank, “belabor foe weakening of foe qualify for monetary union have to icit targets could mean a weaker Swiss francs from 1 .4546. 

euro. So the pressure seems tofreiw-=~bring -their budget -deficits topper-. ...single currency. 

to get clues on the Bank ofEngland ’s 

Deutsche mark weakening.’ 

cent of gross domestic product A .- TheLkS. currency aisoreceiyed a. money supply figures released 

- British . 'Consumer credit and next-decisions on monetary policy— . 

(Bloombergs AF P, Feutersfc 

. ' 'i •" 




Monday 4 p jn. Close 

Th» top 3® nwa-oettre Oareo, 
up to Ida chnn on Wtf 9iroet 
The AssocatKl Press 

Low urns Pipe 

StiM ugh lowUuwj Owe 





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Most Actives 

June 30, 1997 

High Low Latest Oige Optm 

Dow Jones 

MU 7713JD 7727 JO 7(12-18 7878(7 -9JS 
Tna 27344S 273471 WM mill -M32 

US 225J0 niin 224(5 12479 *1.19 
Caap 2371J0 Z3744J 234L07 23aT20 -4£3 


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Standard & Poors 

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— 63X30 631.74 

— I97J6 19130 

— 101 JS 10041 

— 88730 88546 

— 86198 861 .84 

PtvlMot i 












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41200 36V» 

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374S3 33HA 
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64HM 65* 


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JUJ 77 71® 7175 7X2 -030 4.323 

High Los Latest Cftgc OpM 



Sep 97 129JB 129.14 139J2 — 0.16 304.901 

Sep 97 7(30 7E50 7(40 -0.90 17J70 Dec 97 9810 9738 97^2 —0.16 2J14 

Vsnl) 8tU» 7850 79.00 -050 5JB 9746 9746 9732 -0.56 0 

High Low.- Latest Otge OpM 
Sep 98 • 9446 943 a 9435 UndL 2&SQ2 
Dec 98 9446 9441 9440 UndL 11.787 - 

Etf.sate* <0179. Pll*. «*»: <7X79 ' 

Pm.opaiklL. 331442 up 1541 

3ISI3 3SV, 
30604 65tft 

34V. 35V, 
39* 394* 
74* 74 

Wl 2p* 
an% me. 
34V» 3»> 
9M 99 J* 
90» 904V 


SJWOu minimum- cent* pwBushei 
Jul97 248V, 2® 7® -Hk 42407 

Sep 97 239 ZSVfc 218 -14. 57.662 

Oec97 239 733V, 23T-. -2* 741.397 

Morn 746V, J47 246 -2% 2X287 

MavfB 253 747V; Z51U -IV; 2J2D 

Ail 98 7S6 290V, 756 -7 6^70 

Sep 98 252 'ft 248 Vi 250 -11* 228 

Esf. soles NA Ws. soles 95,997 
Fri'saoenir# 278,147 up 2399 

JB196 5103 81J0 8230 -103 2J72 EsL solos: 91,975 . 

Ess. sales NA« 1968 
Wsooenint 32J» i» 230 

GOLD (NCM90 ESI sate* 130534. Prav. sties: 121888 

loo troy ■».- aon^speraora*. Ptev. open Irt.: 24X500 up 881 

Jut 97 £430 —060 3 

Aug 97 £670 334(0 335J0 -060106314 1TAUAN GOVERNMENT BOND (1JFFE3 

Open [*_■ 207495 up 1951. 

DM2SOOOO • ptlgf laa pd 
Sep 97 101.99 MM3 10149 -034 25(445 
Dec 97 101410 10056 100JB -033 9,055 

Estsates; 130534. Prav. sates: 121888 
Pie*, open M.: 26X500 up 851 



SUDa ito.- om mr fa. 

Ail 97 7380 7155 7370 -005 

Oct 97 7(60 7680 7(42 -(LM 

Dec 97 77J9 716.75 77.0 -0J8 

Mar 98 7BJ0 77.95 7035 —0.18 

Moy9B 78.90 7888 7830 -0.M 

EsLsdos NA Fri's. sates 1140 
FrTs open fell 66. W up 1523 



191 UK UH I 
993 1W im | 

131 3 m 

333 3115 30Vi 3 

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318 3 in 

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krtnwas 590JJ SB274 SftM +UJI9 

Tramp. 41(5} ST® AUJS -ITS 

2K74 23ttS3 2BLM +241 

ftafc* <2(116 <21-08 421JJ0 <13 

87790 145ft 148*1 141 'ft 
728U 6BVV «5 OA 
66+56 45H 44V* '444Vi 

51924 14 13 |4 


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41 317 39te 3Pa 38V» 
19* 21* 2Tn 

11M6 1 1614 11 TV* 
379. 3 6tu 37VI 

7 73** fa* 71V. 
0 50M 49** SW. 


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171ft, WBi 1(>*S. 
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m 15W 15 15*S* 

m 2B* 

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.... ft 
§5 J* 

7690 2ZV, 

S5 % 

432 25 

162 27V* 

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714 7U +fa 
» 6 — M, 

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414 49b —4* 

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jss gs 3 

27V. 771* _ 


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m n* 

Cteapojfc 140.57 143234 144206 +191 

SST* ® UBS m 

sssr 3 m M 


100 tons- doMan per ten 

All 97 26230 251 JE 25830 -430 l(<95 

Aug 97 74100 23330 22520 -i70 22473 

Sep 97 moo 316.10 71140 —9 JO lots 

OtJ97 2D93U 30190 20530 -1000 12.956 

Dec 97 21000 20030 20060 —10.00 S.761 

Jan 96 202X0 19780 197X0 —10X0 3242 

ESI. sales NA Pri'vsoves 33336 
FrTs open Inr 104JU off SOO 

Sep 97 TUVt fTL 200 mSlloii ■ ptsollOOpd 

Od97 3J8J0 33733 337 JO — 0J0 B340 Sep97 134.10 123X5 134JO — C.08 

Dec 97 3*1.10 339 JO JMJO -080 29.739 K.T. 10(45 -0X8 

Feb 98 SBM —0 90 9.08* E« sates: 42881. Pie*, sates: 61326 

Apr 96 34L70 -0X0 *.700 Pte+.optei 98X18 up 1295. 

)*J0 W . » -J* 8-W EURODOLLARS (CMER) 

349X 0 _—X.9Q 746 II matovpte afiog pa. 


4UB0 pal. cams per gal 

Jul 97 54X0 5130 • 5L7D +037 

Esi.sctes NA Fn'S-Srtes SJU 
FrTs open ir* 199^89 up 10651 

18 T ^ 

— IK 
1BV* +U, 

ft. ^ 

snt 3»4 +ii 
is m -vu 

a 22*ft* +y» 

a-ft + ? 




128 9>Vu 

n n« 

398 314 

1144 MV* 
Ml i 

2S 26H 

a s% 
a ft 

170 5* 

145 16*4 

rni m fvt 

211% 71% TuJ 
3Vh 3H — Vu 
1U4 IWu — VS. 

ft ft =5; 

2644 36W — Wj 
644 6*9i. +Uu 

S5l lit 

TV*, T> -K 

a » 

16 V? 1<» — Ift, 

rn 15 
1TO 544 
33S3 SU 
344 TVu 
7487 4)4 

6 Vi MV, _v» 
SU 594 —44 
1144 UK +44 

727 Wu U U —VS, 

396 4 394 3*U, —4}, 

an 1944 U94 19 Vi +4S. 

30*4 22% 2044 22 *44 

WJ 1SU 1794 1894 + 44 

133 7*44, 744 794 —Vu 

110 794S, 77 7844 +W 

VOt 129, \Ttu 1344 — M 

452 6U Vfu <V4 

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If |?;5 

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m 144 IU 1V4 -jJS 

ifi S ft & 2* 

» IVi fa 14 *’»u 

S S5 K K t2S{ 

4M 744 744 7U 

611 « M A +V6 


a ft as Ti 

.*^ « «4 « +244 

SUM 619J5 SUM +2X4 

Dow Jones Bond 

20 Bonds 
10 IndusMata 

10820 103.10 

100-24 10036 

105X0 105-3* 

M** Im Lnt Qif. 
J9ASI 87«4 8BI4 b -V* 
<94 5A» <44 +>V« 

8fa A 4* -VS, 
uu uu live +*■ 

tv. Wb |V4 +V4 

k RR $ 

*t» 3*4 *14 +*» 

IA 71* IA +94 

40X00 b»- own per to 

All 97 22J0 21X5 21J9 -0X1 HUM 

Aug 97 223 71X3 21.95 — 0*4 26X06 

Sep 97 2235 21.75 210 -AS* 13X63 

00 97 22.« 71X3 32.13 -0X4 11919 

Dec 97 2175 71X6 22JD -0J9 37X10 

Am 98 22J0 21® 22X1 -430 1729 

Est. soles HA RfLlOtes 32.908 
FrPs op*i inr 108,723 off }<7| 

wi eonnc mo m-a nirmn J*". X." — IW V'JW 

SKW 91*5 9169 93X0 -0X5*34X12 

All 97 11190 11220 113X5 +BA5 8J26 £HS 

AX97 «J1 #1 19 9*30 -401 36X23 

Aug 97 9*18 9*15 94.16 -0X1 11.154 

SBP97 9*15 M.M 9111 -0X2 577X53 

Dec97 9195 9189 9190 -0X6*34,542 

ASg'97 iiwo iirn iits ;oS taS ™ «« «* 

Seo 97 T127D 11060 IU 1« +UB 97.110 _ ” T* 5 ? -CM 70X951 

5*97 11270 IUL6C 11115 *130 22.183 £2 ££ TS 

0(397 110JD 11Q35 41835 *030 13H ’H! ICWtO 

Ann 97 500 53X0 0X5 +038 

Sep 97 5*70 5 (20 SUB ■‘■033 

0071 a« 56.95 5530 +UB 

Nov 97 55*0 55.85 S6X0 *033 

Dec 97 yjO 5«0 SU5 +141 

Jon 98 57.60 57.10 5730 +0.U 

Feb 98 57X5 57.10 5735 + 0.18 

Mor98 56-90 5(40 56*0 +&M 

Esl sales NA KTs-sties <1X39 
PrTsopenW 149X11 off 45*5 

0077 11 W0 11025 11035 -030 1355 ^ ^ ^ ™ 

Nov 97 109JS 109X0 10935 +035 1.205 ZS - * 'SIS 

Dec 97 10870 IB7J0 10855 +a« 6.778 SJjS 

Ain 98 106X5 10(70 106X5 +0K0 6*9 ^ na nn Inn? 2"2 m 

Feb 98 405X5 10515 10565 +8X0 5*0 g£L2. 

Mar 98 NM-95 1MJ0 10*95 -0« MD m2 

SXOO bu minimum- mn per bushel 
AH 97 797 758 771 -14 17 JOT 

Aug 97 739V, 711 7184* —21V. 32720 

Sep 97 <55 646 64* -30 HJX75 

Nov 97 <25 4I7V, 417V, —3a 407*3 

JteifB 631 42146 621V* -X 10.188 

Est. sates NA Fn’s. soles 52A*3 
RAouenW 138X36 off 57*1 

Es. sates na Fri’s. sates njjo 
Fri’sapsnM 49,179 U> 83 

ArnOO 9338 9330 9323 -0X5 *6X46 
fer.soles NA Fri's. sates 31X333 
FtfsopenW 3X30 Jl 3 gp 7507 

Bfimsw POUND (CMBl) 

1X00 bbL- aauaspw at*. 

Aug 97 19 JO 19X0 1977 +031 

Sep 97 T9J2 19X0 19X2 +076 

OCJ97 19JS 1978 19.90 +026 

Nov 97 1936 19.75 19.93 +022 

Dec 97 20X0 1979 »35 +038 

Troding Activity 



m sss 

■Bj Si 

New Law* 

Market Sates 

1552 223* 

1732 17*9 

2219 1755 

SHE 5738 

U3 345 

To n 


MOD bu mMVnum- canfa p«r bushel 
A* 97 327 317fa 323%. -2 9X10 

S«P 97 336A 329 332V. -3 K 38X6* 

Dec 97 3*91* 3*3 3*5V* -» 29X« 

Mtr 98 356 350 35ZH —4 (HI 

EO.sotet NA Fri’s. solas *0X38 
FWsopenrnt 85*161 UP OS 

S^^2Lperbwv« ”12“ V™?* 3 **™ 

A* 97 469X0 45000 46000 -7X0 9X28 

77 47(50 463J0 *6480 -770 <7X59 T.6U6 IXCT XM6 

Dec 97 48100 <7000 <7170 -7X0 13X40 Rac” 1 - 6574 

Jon 98 473X0 -7X0 18 wm 1X514 

Mar 9| 4885} 478X0 478X0 -7X0 8.953 .<«A Rll sate 7.1S3 

May 98 4B5X0 *82X0 482X8 -7.B0 2X38 . ™ '<***"* 5«*4 o» SM 

teliw 2SSS %% TOJB ’’S CA«A>«*»»»tLAR(CMHU 

S SaJwa Pr-C iSr'-eijwi 485 1*L00E dafprs. Sow can.* 

FrrsSm JB* 0,753 Sep 97 7307 7772 7276 

Hisopeniftt 88X71 On 1284 n«r97 7TJTI Tim Tin 

19.99 19X5 197S +01* 

.sates na Fri's. sates 76X49 . 

FTfsaowW 397*M5 ug <096 


SO bay ei.»acAersper «wb. 

100X00 dofeprs. S per CBn. * 

S4P97 7307 7772 7276 

Dec97 73*0 7308 7313 
Mor 98 7344 

». sates NA FrTs. sates SX8Q 

NU00 mm Mu's, s per mm btu. 

AU9 97 2.1 SI 1125 Z139 

S«P 97 2.148 1135 1136 
Dd97 1160 non U56 
Nov 97 1281 2770 1281 

Dec 97 1415 2X05 2X11 

Jon 98 2XH 2X40 2X51 
SW. soles NA Fri's. K*s 26X46 
FtTsopen W 193X10 up 202 

WX14 w 



Jul 97 419X0 410.00 *15X0 + 3X0 2,940 WsopenW 41X39 tp 307 

Oct 97 476X0 *06X0 *12X0 +6X0 11X53 catwuu l . — . — 

A«I9B 410X0 406T0 407X0 -(30 1.722 

ea.seun na Fri^soies 4X56 s 

WiflPWlnr 15X44 ON 290 -SS -SS 

Ufa Ufa +fa 
MM Ufa +4* 
MV, 14fa —fa 
SVu Jfa +fa 

ft ft .3 
ft V* ^ 
ft k 

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47*24 557X8 

23X9 28.13 

541X8 548X8 

1 * 

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*0.000 fas., cents per lb. 

Aug 97 65.00 64.15 64.45 *3,160 

0397 46X2 67X5 67X7 +015 74X96 

Dsc97 71X5 7022 70X5 + 0X7 13X80 

Fte)98 7140 7TXS 7107 +(52 (8*7 

Aw 98 7(5) 73X5 7+JQ +052 (037 

An 98 7tt» 49X5 TUMI +065 1,593 

£3. sties 15X5 * Fri's. sales 9X73 
Fri's open W 93.132 up 313 

• 1 2&0D0 mates. S per marti 

S4P97 5792 57 S6 5765 

Dec 97 5820 5504 5804 

Proteus Wr98 5BjO 5643 5843 

» sete Privates 31711 
Fri's OPsilrO 72.796 up 13*11 

Owe Prmtous J* 43 


DoBbts per metnc Ian RrrsooesiW 72,796 up 134 

S pa**" 1 " 15*5X0 15*6X0 

Forward 1590X0 ISflXO 1547.00 134800 Kw ^Sv5^ ‘tens “ 

gr^gftsssr^Mi ^ S 

Reword 2*21X0 2*22X0 2*09 no 7*1000 2??™. ... -90» 


42X00 oat. cents par gal **1. 

Jul 97 S3 l7D 57X0 SB. 12 *031 8X30^-; 

AllO 97 S825 5750 5BJ2 +IL53 . 36XD“J- 

SCP 97 S7J0 56X5 5750 + 056 10.74*^’- 

OC797 5(45 SS3Q MAS +058 7,035 — 

NOV 97 S5.91 S550 S51 +057 2XM,a 

Dec 97 55 SS 55.70 5555 +055 i574**-' 

Jon 98 5SJ0 5530 5520 +0X0 3,707 

F8t>» 56J0 *8X0 1.117-3!* 

Etf.saies NA sates 33,956 ~i h 

Fri'soosninf 79X96 Off 13» 

Sep 97 X860 X822 


UX Man par metric ten .lotee6 100 tan _! 

2*21X0 242ZOO 3*09X0 2*10® ^ 

614b 615b 612X0 613X0 Frf ‘ 50pw ' irt 51 AO up 637 

All 97 166X0 165.00 16525 +1X0 17,791^ 

Ayg97 767-M 1 «X5 !4eXD +1XS I5.97E’ 
S«97 168X0 167.75 167JS +1X5 (02&2r 

Per Amt Rec Pay Caapisir 

Per Amt Rec Pny 

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381 19U1, 
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*86 *qfa 

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1037 Ufa 
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low 10*6 
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i Si i $ 

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32fa zn*-|ifa, 
17M llfa +Ffa, 
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Morft 9443 

Etf.sates NA Fri's. sates 1© 
FrTs open Irr 7^13 off 3 


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Mor98 I3UD 13400 13(50 +150 

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1 lion An - cents par B>. 

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Estates 15,718 WLWtt 3LG1 
Frrsaoenlnr 1BJ16 off inn 

DJ«H«5 .05X9 M -18 1^88 

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PAGE 17 


Modifying Purchase 

By Torn Buerkle 

Jaenaiiotud Herald Tribune 

BRUSSELS — Boeing Co. for- 
mally proposed modifications of its 
planned acquisition of McDonnell 
Douglas Corp. on Monday in an 
jrfempt to win approval for the $14 
^jjiioa consolidation from Europe's 
adtitrnst regulator. 

The, proposed modifications — 
wftcb sources said included a de- 
letion of Boeing’s status as exclus- 
ive aircraft sappherin 20 -year con- 
tracts with three major U.S. airlines 
and an offer by the company to give 
new details of its U.S. government 
aid — were submitted to the Euro- 
pean Commission before a deadline 
of midnight Monday, according to 
company executives. 

Toe submission was made a day 
before the U.S. Federal Trade Com- 
mission was expected to signal its 
approval of the acquisition. But of- 

'Bonn to Raise 
'$1.4 Billion 


‘ BONN — Tire Transportation 
Ministry said Monday die gov- 
enmeut would receive as much 
is 24 billion Deutsche marks 
($1 38 billion) this year when its 
35.7 percent stake in Lufthansa 
AG was sold to the public. 

Bonn transferred the shares 
in the airline to Kreditanstalt 
flier Wiederaufbau, the state 
development agency, last year 
and received 2.1 billion DM 
l- that was budgeted in 1996. The 
agency expects to get about 43 
jjbillion DM for the shares. The 
difference of 2.4 billion DM 
will go to Bonn and be 
budgeted in 1997. 

‘ The ministry gave more de- 
jails about the expected sale 
after issuing a statement about 
changes to German law that 
take effect Tuesday and which 
ensure that a majority of 
Lufthansa remains in the hands 
pf Germans. 

Bonn is expected to float the 
shares in the autumn. 

ficials at the EU executive body had 
insisted that a U.S. ruling would not 
affect its antitrust review. 

They said that the commission 
was determined to wring conces- 
sions to prevent the consolidation 
from giving Boeing an unfair ad- 
vantage against Airbus Industrie, 
the European consortium that is 
Boeing's chief rival. 

Boeing made "constructive pro- 
posals** that the three 

main concerns voiced by Karel van 
Miert, the EU’s competition com- 
missioner, said - Jim Frank, who 
handles European public affaire for 
the aerospace company. Those in- 
volve the combined company's 
market share, the exclusive supplier 
contracts and the spillover of de- 
fease subsidies into the commercial 
aircraft business. 

But in a sign that Boeing was 
stopping short of meeting some of 
Mr. van Miert’s demands, Mr. Frank 
indicated that negotiations with the 
EU merger task force were likely to 
continue until the end of July, when 
the commission must give its verdict 
on the deal. 

A key factor that will require fur- 
ther talks is the issue of government 
subsidies. A chief cohceni raised by 
Mr. van Miert is the prospect that the 
acquisition will allow Boeing to un- 
derwrite its commercial aircraft 
business by tapping- government 
subsidies in McDonnell Douglas’s 
huge defense business.. 

According to officials with know- 
ledge of the case, who declined to be 
identified, Boeing is prepared to 
provide European authorities with 
details of tbe research and devel- 
opment funds it receives from the 
U.S. defense and transportation de- 
partments and die National Aero- 
nautics and Space A dminis tration, ; 
on condition that Airbus gives sim- 
ilar information about its govern- 
ment aid. 

Until now, a 1992 trans-Atlantic 
agreement on aircraft subsidies has 
only involved the exchange of ' 
budget information between gov- 
ernment officials in Washington and 
Brussels. . 

U.S. and EU trade negotiators are 1 
due to discuss the agreement at a > 
meeting In Washington next week, > 
following recent accusations by i 
ministers from the four Airbus i 
countries — Britain, France, Ger- i 
many and Spain — that Washington i 
was exceeding its limits on aid. 

Euro Institute Gets New Chief 

Duisenberg lows ’99 Start for the Common Currency 

By John Schmid 

' . International Herald Tribune 

FRANKFURT — Wim Duisenberg, the Dutch 
central bank governor, ceremonially took over the 
presidency of the European Monetary Institute on 
Monday and ushered in what many expect to be a 
new, meat prominent role for foe institution in tbe 
creation of Europe's common currency. 

In his first formal speech in his new role, Mr. 

could threaten the January 1999° introduction^ foe 
euro and displayed a loyal sense of optimism that 
Europe can unify behind a single currency and the 
common central bank, of which the institute is a 

"As far as we are concerned, monetary union can 
start on Jan. 1, 1999,” Mr. Duisenberg said. 

Analysts doubt it will be so simple. With 18 
months to go until monetary union. Mr. Duisenberg, 
who is widely expected to become the first president 
of the future central bank, must establish credibility 
for foe euro ata time when many investors doubt that 
either France or Germany can meet tbe European 
Union’s budget benchmarks. 

Tbe institute will play a pivotal role in the po- 
litically sensitive decision early next year to select 

the nations that would participate in foe introduction 
of the euro. 

"We cannot afford to let EMU fail,” Prime Min- 
ister Wim Kok of the Netherlands said at Mr. Duis- 
enberg 's installation, referring to European Monetary 
Union. "It would be jralitically and economically 
unwise to depan from the original plans." 

Also Monday, Chancellor Helmut Kohl of Ger- 
many moved to muffle critics at home who call for a 
delay in monetary union, fearing that (he euro would 
be a weak substitute for the Deutsche mark.. 

Tbe German leader, in Berlin, said he had no 
doubts the euro would come on time. And Mr. Kohl 
accommodated tbe latest demands of tbe Bavarian 
premier, Edmund Stoiber, a prominent skeptic about 
the euro: he promised to uphold tbe rule that nations 
participating in foe euro could have a budget deficit 
of no larger than 3 percent of gross domestic 

Another skeptic, Herbert Hax, said it would be 
better to delay European Monetary Union than to 
soften the qualification criteria. Bonn is in a “fore- 
seeable dilemma," since it has taken a position on 
both foe criteria and the starting date, "one of which 
now has to be violated to get out of the tight spot," 
said Mr. Hax, chairman of Mr. Kohl’s council of 
economic advisers. 

SGS-Thomson Creates Cheap Chip 

Bloomberg News 

PARIS — SGS-Thomson Micro- 
electronics NV said Monday that it 
bad developed a new micropro- 
cessor foal combines all personal 1 
computer functions on a single chip 
at a price less than half that of sim- 
ilar chips available now. 

The chip, known as ST PC Con- 
sumer, is targeted particularly at 
such applications as educational 
computers, in-flight entertainment 
systems and televisions with PC 

functions. It will cost less than $40, 
compared with more than $80 for a 
set of microchips offering the same 
functions now, the company said. 
Production is expected to begin in 
foe fourth quarter. 

"It’s potentially very significant," 
said Nimrod Schwarzmami, an ana- 
lyst at HSBC James Capel in Lon- 
don. "It's very difficult to speculate 
about volumes, because tint depends 
upon market acceptance. But it's po- 
tentially a veiy large market." 

Start t S *■*«» 

. . i-. | 

g^5£.“jEKMj mmLzmzsgsmt 

Source: Tetokurs 

luernuum) HcnUTribsae 

SGS-Thomson shares rose 3 
francs to 464 ($79.41). 

SGS-Thomson has flourished in 
recent years by focusing on higher- 
margin semiconductor markets for 
products like smart cards, digital 
set-top boxes for cable and satellite 
television, and other consumer elec- 
tronics, staying clear of the more 
cut-throat market for computer 
chips that is dominated by Intel 
Corp. of the United States, the 
world’s top semiconductor maker. 

Very briefly; . 

• Scottish & Newcastle PLC, Britain's largest brewer, said 
annual profit before tax and exceptional items for the year 
ended April 27 rose 21 percent, to £374 million ($621.6 
million), reflecting a surge in food sales and improved mar- 
gins on its key beer brands in foe second half. 

•Unilever Group, the Anglo-Dutch consumer-goods maker, 
sold its John West Foods Ltd. canned tuna and fish business to 
H. J. Heinz Co. for an undisclosed sum. 

• Sidanko. the Russian oil concern, plans to issue a con- 
vertible bond this year and American depositary receipts early 
next year. 

• Russia's central bank is working on a corporate bond 
program to be launched in foe autumn, said Andrei Kozlov, the 
bank’s deputy chairman. 

• S Air Group AG, which owns the airline and railway caterer 

Gate Gourmet, is buying European Rail Catering of Britain 
for an undisclosed sum. Reuters. Bloomberg 

Lonrho and JCI Call Off Merger Talks Guess i °g Gam e at F,at 


PLC and JCI Ltd. of South Africa 
called off talks about a $3 billion 
merger amid disagreements over 
ownership, management and fi- 
nancing. out Jd said it had been 
approached to discuss other possible 
transactions involving Lonrho. 

Analysts speculated the compa- 

nies might try to combine their coal 
businesses. Lonrho owns an effec- 
tive 60 percent stake in Duiker Min- 
ing Ltd., roughly the game size as 
JCI ’5 coal unit, Tavistock Collier- 
ies, which Jd is preparing to list. 

One industry source said Jd’s 
Tavistock coal unit could be swapped 
for Lonrho's 33.6-percent stake in 
Ashanti Goldfields Co. of Ghana, 

one of the Africa’s most successful 

Analysts said the swap could 
open the way for Jd to enter into a 
deal with Anglo American Corp. of 
South Africa, in which Jd could 
swap the Ashanti stake for Anglo’s 
stake in Lonrho, which the Euro- 
pean Union has told it to reduce. 

(Bloomberg. Reuters) 

OmyrMbtOtr Staff From KtfWItttat 

TURIN — The question of who will succeed Cesare 
Romiti as the Fiat chairman will not be resolved until next 
year, Gianni Agnelli, honorary chairman of Italy's in- 
dustrial giant, said Monday, although he himself already 
knows the answer. 

"I know, but I’m not telling you." he said. 

While Mr. Agnelli declined to name his candidate, 
analysts say he may turn to Paolo Fresco, a senior 
executive of General Electric Co. of foe United States 
who is cunently a Hat board member. (Reuters. IHT) 


Ktgh Law Omu Pmr. 

Mgli • Low Ctae Pnre. 

Hlgfe LOW dett 

1-nie Trib Index " W— 





UW EngiMva 1&5D 18.K) 1120 18.10 p. - 

Monday, Jum 30 ™ ™ Madrid i-t— mu 

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Tetakars ' ■ Drositnef Sank 61*0 (KUO 6038 61JH ■ ■ - • Aortal 27830 27600 27010 27560 

UM. i. - - Fmmbk 363 360 360 361 , ACE5A 2C10 1900 2000 1975 

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PAGE 20 



Merrill Fires 

— i 



3 More Japan Firms Linked to Payoffs 

es Filed 

tV Stiff Fit 

SINGAPORE — Merrill Lynch & 
Co. said Monday it had fired’ one of 
its lop private-banking stockbrokers 
and filed fraud charges against him 
in Singapore and Hong Kong. 

Kevin Wallace, an American, 
was dismissed May 15. and Merrill 
Lynch said it had filed for an in* 
junction to prevent him from selling 
any property or assets. 

Singapore media reported Sun- 
day that Mr. Wallace had left Singa- 
pore along with his wife, but his 
three children remained behind wirh 
a maid. 

A company spokesman. Robert 
Grieves, said Merrill Lynch thought 
Mr. Wallace had gone to Hong 
Kong but could not confirm that. 

Another spokesman would not 
comment on reports that the fraud 
could cost Merrill Lynch as much as 
$30 million. 

In its claim. Merrill Lynch al- 
leged that Mr. Wallace had engaged 
in unauthorized trading by misrep- 
resenting or falsifying the clients' 
signatures. He was fired from his 
Singapore post as a private-client 
financial consultant on May 15. 
Merrill Lynch filed civil charges 
against Mr. Wallace in Singapore 
and Hong Kong on Friday, as well as 
a criminal complaint in Singapore. 

Mr. Wallace, one of (he firm s top 
producers of commission revenue, 
worked for wealthy clients around 
the region, many of them ethnic- 
Chinese Indonesians. Merrill Lynch 
i> one of the largest private bankers 
in the securities industry. 

f'AP. BUtomhergl 

Bloomberg MtH ) 

TOKYO — Three Japanese 
brokerages paid off the same man 
who has been arrested on charges 
of blackmailing Nomura Securities 
Co., the man's brother said Mon- 
day. according to a lawyer rep- 
resenting the two. 

The brother said Daiwa Secu- 
rities Co., Nikko Securities Co. and 
Yamaichi Securities Co. funnelcd 
money through illegal accounts 
held in other people's names to 
Ryuichi Koike, according to the 
lawyer, who spoke on condition he 
not be identified. 

The lawyer said Mr. Koike's 
brother. Ybshinori, who has also 
been arrested in the Nomura scan- 
dal. told him Monday that the other 
brokerages were involved. 

Officials for the three broker- 
ages declined to comment on the 
accusation. Spokesmen for the 
Tokyo Public Prosecutors Office 
and the Securities and Exchange 
Surveillance Commission, the Jap- 

anese brokerage industry watch- 
dog. also refused to comment. 

Nomura, Japan's largest broker- 
age. is being investigated by pros- 
ecutors on charges of paying more 
than $400,000 to Ryuichi Koike to 
remain silent in 1995 when 
Nomura reinstated to the board the 
president and chairman, both of 
whom had earlier resigned in dis- 

Mr. Koike has said he is a 
sokaiya, a person who extorts 
money from companies by threat- 
ening to disrupt shareholders meet- 
ings or otherwise expose corporate 
misdeeds. Payoffs to sokaiya have 
been illegal since 1983. but many 
companies have found it hard to 
halt the practice. 

Meanwhile, Tokyo prosecutors 
indicted four former directors of 
Dai-Ichi Kangyo Bank Ltd., saying 
they paid off Mr. Koike by lending 
him o.S billion yen ($77 .6 million) 
from 1994 until last year. 

Four other bank executives were 

charged in the case last week. 

A former president and chair- 
man of the bank, Kuniji Miyazaki, 
committed suicide Sunday after 
prosecutors questioned him about 
the loans. 

Mr. Koike is said to have used 
some of the money the bank lent 
him to buy - 300,000 shares id 
Nomura, where, as a large share- 
holder, he had access to top man- 

In the wake of the investigation, 
both Dai-Ichi Kangyo and Nomura 
are continuing to lose customers. 
Sony Corp. said Monday that it 
would not do new business with 
either- indefinitely. Both bad sold 
bonds for Sony. 

Analysts said the loss of busi- 
ness could force both of the compa- 
nies to post a loss for the year 
ending March. 

All the news sent brokerage 
shares into a tailspin. They were 
the worst-performing group on the 
first section of the Tokyo Stock 

Exchange, falling 2 percent. Nikko 
tumbled 49 yen to 705, Daiwa re- 
treated 45 yen to 904 and Yamaichi 
dropped 10 yen to 341. But 
Nomura rose IQyen to 1,580, prob- 
ably, analysts said, because its 
competitors are now sharing the 
heat of the scandal. 

“What we’re talking about is 
Japan’s three largest securities 
companies taught seemingly red- 
handed, now with a confession, 
breaking the law in a vray open and 
defiant fashion," said David 
Threadgold, financial analyst for 
BZW Securities (Japan) Ltd. in re- 

2 ports about Daiwa. 
Nomura. “That is 

to ret 

;o and Nomura, 
clearly not good for the market-” 
Yoshinori Koike said that 
Daiwa, Nikko and Yamaichi all 
bad made discretionary- trades on 
his brother’s behalf, the lawyer 
said. Ryuichi Koike himself did not 
make such as admission, the law- 
yer added, contradicting earlier 
press reports that he had. 

Investor’s Asia 

Japan PC Firms Gear Up to Gain Market Share 


TOKYO — Japanese personal 
computer manufacturers said Mon- 
day rhat they would increase pro- 
duction in an effort to grab a larger 
share of the booming worldwide 

Toshiba Corp. and NEC Corp.. 
already big market players, said they 
would seek to raise sales, and 
Fujitsu Ltd. and Sony Corp. said 
they would make a big push to gain 
market share. 

The global personal computer 
market is expected to grow by 18 
percent, to 83 million units, in the 

year ending March, said Mami Indo, 
an analyst at Daiwa Institute of Re- 
search Ltd., while the Japanese mar- 
ket should see year-on-year growth 
of 25 percent, to 9 million units. 

Toshiba was the only Japanese 
computer company in the top five 
for worldwide sales in the first 
quarter of fhis calendar year, with 
less than 5 percent of the market. 
The leader. Compaq Computer 
Corp- of the United States, had ll.i 
percent of the market. 

NEC said it would invest an ad- 
ditional $285 million in Packard Bell- 
NEC, bringing its investment in the 


to $1.04 billion. 

Sony, known for its audiovisual 
products but not for computers, said 
its overseas strategy would center 
on making computers that can be 
combined easily with its other con- 
sumer electronics. 

“We plan to produce PCs for 
home use," a spokesman said. “Our 
aim is to make computers that can be 
easily connected to other electronic 
equipment, such as digital movies 
and still cameras." 

Toshiba, the world's top seller of 
portable computers, said it would 
increase its output to 4 million emits 

in the year that ends March 31, up 
nearly 50 percent from the previous 
year, with the additional supply of 
motherboards coming from a new 
plant in die Philippines. 

NEC, which dominates the Jap- 
anese personal computer market 
with a 40 percent share, said it 
would raise domestic production by 
about 15 percent, to more than 4 
million units. 

Fujitsu, with about 25 percent of 
the Japanese personal computer 
market, said u would increase 
worldwide output by 35 percent, to 
3.8 million units. 

1997 " 

, ^ 

Source: Tetekurs [luemaiiind HcniUTnTiutt 

Very briefly: 

• Sara Lee Corp. acquired Nutri-Metrics International, an 
Australian manufacturer and direct retailer of skin-care and 
beauty products, for an undisclosed amount. 

• South Korea’s benchmark stock index fell 0.94 percent, to 
745.40, after the bankruptcies of two companies Saturday raised 
fears that other companies might be on the verge of collapse. 

• Japan Development Bank, a state-owned financial in- 
stitution, may be disbanded in 1999 as part of Japan's ad- 
ministrative reforms, officials said. 

■ Singapore Airlines Ltd. said it would sign a joint-venture 
agreement Tuesday but declined to give further details, citing 
Stock Exchange of Singapore regulations. 

• Thailand will shut down no more finance companies be- 
yond die 16 it closed last week, the Finance Ministry said, 
adding that the rest of industry is sound. 

• New Zealand's gross domestic product fell a greater- than - 

expected 0.5 percent in the quarter ended March, the first drop 
in growth in almost five years. Bloomberg. afx, afp 






Athenee Palace Bucharest Hilton, October 29-30, 1997 

Romania is increasingly attracting the attention of the international investment 
community. To assess future investment potential and to highlight the reforms 
Romania is putting in place in a bid to position itself as one of the more exciting 
investment opportunities in the world, the International Herald Tribune will convene 
a major investment summit in Bucharest on October 29-30, 1997. 

President Emil Constantinescu will give the opening keynote address of the Romania 
Investment Summit. He will also host a special dinner for speakers, delegates and 
guests on the evening of October 29 at Cotroceni Palace. 

The fact that President Constantinescu has agreed to support this summit as an 
integral part of the Romanian government’s efforts to attract foreign investment 
is a measure of the importance of the summit. 

GM Plans Push in Philippines f 

Carmaker to Import 2 Models to Lift Sales in Region \ 

Bloomberg Nevus 

MANILA — General Motors Coip. said 
Mouday it would return to the Philippines 
after an 11 -year absence as pan of a (hive to 
tap the Asia-Pacific market 

The world's largest carmaker plans to im- 
port its Vecm and Omega vehicles, the top- 
selling brands of its European subsidiaiy. 
Adam Opel AG. GM will import the two 
models, in four-door sedan and station-wagon 
styles, from Germany. 

“There is no doubt that the positive eco- 
nomic environment in the Philippines and the 
projected growth in the industry- offer ex- 
cellent opportunities for new entries into this 
market," said Tom Anliker, president and 
general manager for General Motors Auto- 
mobiles Philippines. 

Higher incomes, spawned by accelerating 
economic growth, and easier access to credit 
are expected to fuel growth in the Philippine 
auto market. 

The Philippines’ auto market is about one- 
quarter the size of Thailand’s, where GM is 
building a $750 million factory. Filipinos 
bought 90,000 passenger cars in 1996, oot of a 
total of 162,095 vehicles sold. GM forecasts 
vehicle sales of about 400.000 units a year by 

“If General Motors wants to remain the 
No. 1 automaker into the next century," said 
John Smith, GM’s chairman, chief executive 
and president, “it had better emerge as a 
strong, active presence in Asia." 

The automaker withdrew from the Phil- 
ippines in 1986 amid political uncertainty and 

an economic recession. GM said it chose to re- 
enter with the Opel brand because of its good 
reception in Japan, where the market is con- 
sidered very competitive. 

The company said it expected total vehicle 
sales in tee Asia-Pacific region to increase to 
19 .5 million units by 2006 from 13.3 million 
units. GM forecast Opel sales of 75,000 units 
in tee Asia-Pacific region last year would 
triple to more than 200.000 units by tee end of 
the decade. 

Meanwhile. Volkswagen AG, Europe's 
largest carmaker, said it would expand its 
sales network in Asia and tee South Pacific to 
sustain what it forecast would be a 1 3 percent 
increase in sales this year. 

Robert Buechelhofer. VW's management- 
board member for sales and marketing, said 
he expected deliveries of VW cars in the 
region to reach just under 380,000 cars from 
334.884 in 1996. 

San Miguel Cuts Prices 

BliHjmberg News 

MANILA — San Miguel Coip. cut its beer 
prices Monday by as much as 14 percent to 
increase sales, a move analysts said might delay 
an improvement in earnings for another year. 

Analysts said the price cut was acknowl- 
edgment that San Miguel's 1 0.5 percent price 
increase in March had ceded a larger market 
share to the rival Asia Brewery Inc. 

San Miguel’s B shares fell 3 pesos, to 69.50 

WEB: Let the Internet Regulate Itself, JJ.S. Says 

Summit Sponsors 


Corporate Sponsors 


Continued from Page 15 

Internet The document ad- 
vocates that other govern- 
ments adopt a similar ap- 
proach toward taxes and 
content regulations in an ef- 
fort ro make electronic trans- 
actions across national bor- 
ders as seamless as those teat 
occur now across state lines. 

The administration this 
summer is expected to peti- 
tion the World Trade Orga- 
nization to classify tee Inter- 
net as a tariff-free zone for the 
sale of electronic goods and 
services, such as software that 
urchased on-line. 

ns, particu- 
larly on content regulations. 


If yoD.are interested- in investing in Romai^tbe 
Investment Summit wOl give yoavalaabfe 

.. ' Brenda Erdmaaa 

International Herald Tribune CtmferoireOffice, 63 l 4 >rig Acre , '? 

T& (44-171) 420 0307 F»:.(44^ 

“ .itc: 

will probably be ignored by 
several countries, such as 
China and Singapore, which 
limit Intranet transmissions 
across their borders. 

The administration’s pos- 
ition on new domestic Inter- 
net taxes does not mean tee 

network will turn into a tax- 
free environment Sales taxes 
levied by states would still 
apply to goods purchased 
over the Internet 

But the adnunistration's 
position may set the stage for 
a battle with state and local 
officials, some of whom have 
advocated special taxes on In- 
ternet access and transactions 
over tee network. 

Some of those govern- 
ments contend that tee new 
taxes on Internet commerce 
are necessary to offset Losses 
in some types of sales and 
excise taxes as more trans- 
actions are handled electron- 

After unveiling tee report 
Tuesday. Mr. Clinton will set 
up a commission, to be led by 
Vice President AJ Gore, that 
will oversee putting the doc- 
ument’s recommendations in 
place, officials said. 

The new policy was 
praised by several industry 

•nil-: wottt.u's imi.i inkwspafkk 


Societe d'lnvestissemem a Capita) Variable 
Kansaltis House - Place de I'Eloile 
B.P. 2174. H021 Luxembourg 
RC No B 27223 
(in liquidation) 

Pursuant to a decision of the Extraordinary General Meeting of 
Shareholders held on June 13, 1997, the liquidation of Fidelity 
Global Selection Fund Sicay (the "Company") has been closed. 

Liquidation proceeds not collected by the shareholders wilt be trans- 
ferred to the Coisse tics Consignations to be held for (he benefit of 
the persons entitled thereto. -* 

The records of the Company are deposited at the registered office 
of the Company for a period of 5 years. 

The Liquidator 


leaders who have seen draft 
versions of tee report. "It’s 
great," said Esther Dyson, 
president of EDventure Hold- 
ings, a New York consulting 
firm. “The government 
should leave the Internet to 
manage itself." 

Despite the support for in- 
dustry self-regulation, the ad- 
ministration plans io take an 
active role in two areas: chil- 
dren's privacy rights on the 
Internet and tee export of 
data- sc rambling technol- 


The report calls for giving 
companies and advocacy 
groups a chance to devise 
ways to control tee collection 
of information such as names, 
addresses and telephone 
numbers from children. If the 
industry does not act, the re- 
port says, tee government 
should take action. 

The report urges continued 
government controls on the 
export of software with 
strong encryption, or infor- 
mation scrambling, technol- 
ogy. Law enforcement and 
national security officials 
have argued that the wide 
spread use of powerful en- 
cryption technologies could 
cripple their efforts to gather 
evidence against criminals. 

That position, which has 
been clear in the report’s ini- 
tial drafts, has drawn crit- 
icism from industry groups, 
which want the export rules 

‘ ‘The no-new-taxes and 
regulation pledge are music 
to the industry’s ears," said 
Diane Smiroldo, a spokes- 
woman for the Business Soft- 
ware Alliance, a Washington- 
based trade group. “But the 
way the report treats encryp- 
tion poses serious problems 


■_ * 


:*r ; 




3 - 

PAGE 22 


World Roundup 

Norman Conquest 

golf Greg Norman birdied the 
last three holes to win the $1.5 
million Sl Jude Classic in Mem- 
. phis, Tennessee. 

Norman edged Dudley Hart by 
one stroke with a 30-foot putt on 
.No. 18 on Sunday. 

* The tournament was plagued by 
rain delays. Norman played the last 
. 15 holes of his third round Sunday 
morning. After an hour's rest, he 
shot a 5-under 66 final round to 
.finish at 16-under 268, a stroke 
-ahead of Hat. 

• Graham Marsh gained the first 
. major title of his 28-year career 
Sunday, winning the U.S. Senior 
' -Open at Olympia Fields, Illinois. 
He beat John Bland of South Africa 
by one stroke when Bland bogeyed 
the final hole. Marsh shot an even- 
par 280 total for 72 holes to earn 
$232,000, the biggest payday of his 
career. (API 

Tyson Couldn’t Win, 
So He Copped Out 

By Tim Kawakami 

Los Angela Tunes 

LAS VEGAS — Mike Tyson turned 
3 1 on Monday, and he has never seemed 
older, sadder, less relevant or more dis- 
qualified from greatness. 

No. he won't vanish into the mist 
after Saturday's biting defeat, a third- 
round disqualification loss to Evander 

antithesis of the man who beat him, 
Holyfield, who has spent his whole life 
finding ways to stand up and face 
whatever was in front of him.’* 

At his best, in his early 20s, Tyson 
simply showed up and devastated op- 
ponents unprepared or unwilling to deal 
with his awesome hand speed — Michael 
Spinks, Tyrell Biggs, Trevor Berbidc 
As he moved into the 1990s with 

round disqualification toss to nvanuer ns ne movcu uuu me iswb wild 

Holyfield. He'll still be around to brawl confusion in his personal and business 

and bite and perhaps bay at the mi 
that is where his mood takes him. 

bay at the moon if 

' •V' 

.v ^ ♦:<.! 

Greg Norman celebrating his 
,18th-bole birdie *nd vic+nw. 

’ .beat Linfora Chrisiu- m a t jiU-me- 
ter race in Sheffield, England, col- 
lecting the winner-take-all prize of 
$82,500. Bailey, the 100-merer 
. Olympic champion ran 15.01 
seconds into a headwind. Christie, 
’ .the 1992 Olympic champion, fin- 
ished third, behind another Briton, 
v . Ian Mackie on Sunday. . (APi 

But, 11 years since becoming the 
youngest heavyweight champion, his 
days as boxing’s most intriguing, some- 
times mosL devastating, always most 
menacing man are over, culminating, 
fittingly, not with an exchange of 
punches but a timely gnashing of his 
teeth. And a surrender. 

Tyson will fight for relatively bi» 
money, he will do interviews, he wifi 
still be surrounded by the hyenas he 
calls friends. But the mystique and mys- 
tery is gone. He has proven beyond 
doubt what he is, and what he always 
will be: An immature, insecure basket 
case, for whom the rules of boxing and 
decency hold no bounds. 

In the biggest fight of his life, Mike 
Tyson capitulated in the ring. Histor- 
ically significant fighters aren’t sup- 
posed to yield, even in defeat. 

Tyson, whose past is littered with 
easy victories over scared fighters, sub- 
mitted with a show of farce, moments 
after referee Mills Lane told him that if 
he bit Holyfield again he would halt the 
bout. “He wanted a way out." said Don 
Turner, the trainer for Evander Holy- 
field, whose right ear will forever miss a 
chunk after the biting incident. “And 
Tyson found it 

Ail this only justifies the most telling 
charges against Tyson by some who 
know him best: that he is a street thug 
• “as pu:. • • 
machine, a tien. j- • chool - ; ;iv a ho 
- ■ •ver fought a fie : 
him b 

“Tyson planner i::.*," • ^ 

Atlas, who worked with Tyson when he 
was a teenager and who went on record 
late last week predicting that Tyson 
would lose by disqualification. 

“I knew it would happen because 
Holyfield is just too much man for this 
guy. This guy all his life has found ways 
to get out It's the opposite of the tough 
guy he pretends to be. And it’s the 

lives, he got flattened by Buster Douglas 
— the only talented big man he ever 
faced, since he never fought Riddick 
Bowe, Lennox Lewis or George Fore- 
man — and struggled with Razor Rud- 

In his post-jail career, Tyson took 
advantage of the weakness of the cur- 
rent crop of heavyweights — Frank 
Bruno? Buster Mathis Jr.? — while 
Holyfield went to war with Bowe for the 
third time. 

Pointedly, Tyson only took the first 
Holyfield fight last November because 
he thought Holyfield was done. Bnt after 
that 1 1 th-round knockout, and two more 
rounds Saturday night, Tyson knew be 
could not stand np to Holyfield. 

“2 thought it was interesting that 
when he should’ve been throwing 
punches, he chose to bite Evander,” 
said Jim Thomas, Holyfield’ s lawyer, 
who was one of the 30 or so people 
caught in die ring melee after the fight 
when Tyson charged toward Holyfield. 

“And then when there’s 25 people in 
the ring holding him back, that’s when 
he wants to start throwing punches.” 

Remember that Tyson came out for 
the third round without his mouthpiece, 
Thomas said, and consider the circum- 
stances of the bites. “Mike Tyson had to 
get out of it somehow,” Thomas said. 
“And there was only one way without 
being knocked out Tyson fought the 
first two rounds with his mouthpiece in 
“ lace, and he Lost both rounds on all the 
judges’ cards. In the third round, he 
'•?'»» out without his mouthpiece. 

• e tty interes:ir._ 

■ Boxing Commission to Meet 

A Nevada boxing commission is 
scheduled to meet Tuesday to consider 
suspending Tyson from boxing and fin- 
ing him. The Associated Press reported 
from Las Vegas. The maximum fine 
allowed under Nevada state law is 10 
percent of the muse. In this case, that 
would be $3 milli on. 

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Sandrine Testud reaching for the ball Monday during her three-set victory over Monica Seles. 

Contenders Reclaim Centre Court 




By Ian Thomsen 

International Herald Tribune 

on Seles, her private box in the stands 
was empty. This for die teenager who 
used to giggle and talk as quickly as a 
drunk pianist's fingers. On Monday, the 
23-year-old Seles spoke slowly and said 
more with fewer words. Someone asked 
whether she saw herself as a person with 
two lives — the first separated from the 
second by a knife. 

“I just think it’s a transition,” she 
said. “Five years from now may be 

was empty. 

WIMBLEDON, England — Pete 
Sampras, Boris Becker, Yevgeni Kavel- 
nikov, even Jana Novotna — the con- 
tenders moved back into the Wimbledon 
foreground Monday as if rec laiming a 
house that had been rented out for a 
week. They were a little disappointed 
with what they found. 

“I’ve never seen Centre Court so 
cbopped up," Sampras said of his first 
match on Centre Court this year, in a 
tou rnam ent thus far dominated by the 
weather and two British men. “In the 


different. I just always try to be in die 
present, and .hopefully try to do some 

Surgery Will Sideline Holyfield 

middle, of the court there was ijo„. things .that can help foe the ftijure." 
grass!" w On Small Court No. 3, Seles won the 

Headlines on Mike Tyson's brief 
, .bout with Evander Holyfield: 

“A Bad Bite for Boxing' The 
„ News & Observer of Raleigh. 

. “Bite of the Century!’ ' — Ari- 
I zona Republic. 

“Tyson's Tasteless Tactics: Bite 
t blight" — Record of Hackensack. 

“Did Tyson Bite Off More Than 
i He Can Chew?" — Salt Lake 
, .Tribune. 

! "Tyson Bites the Dust, Hoiy- 
Tield” — Huntsville (Alabama) 

„ “A Two-Bit Bout: Holyfield 
t ^VVins’’ — Kansas City Star. 

“World Chomp” — The Sun 

"Sucker Munch” — The Sun. 
“Biting Back: Evander Has Pub- 
lic’s Ear” N.Y. Daily News 
"Toss Tyson Out on Ear" — 

; N.Y. Daily News. 

I * “Tyson’s Behavior Hard to 
• 'Swallow" — Providence Joiimal- 
! Bulletin. 

; “Dracula' ' — New York Post 

-l "Champ Chewing Over Legal 
; Options” — New York Post. 

•Z “Now Ear This: Rematch is Pos- 
sible" — New York Post. 

I- “Pay Per Chew” — PhU- 
■ jidelphia Daily News. 

■ “Tyson Scars Face of Boxing” 
— The Guardian (London). 

By Sally Squires 

Washington Post Service 

The damage caused when Mike 
Tyson bit a chunk of skin and cartilage 
out of Evander Holyfield ’s right ear will 
sideline the heavyweight boxing cham- 
pion for about six weeks and then prob- 
ably will require reconstructive surgery 
that will keep him out several more 
months, accoroing to the plastic surgeon 
who treated Holyfield. 

In a telephone interview, a Las Vegas 
plastic surgeon, Julio Garcia, said he 
spent 45 minutes Sarurday night closing 
Holyfield's ear with about 15 stitches, 
which he called “a pretty straightfor- 
ward” procedure. 

Holyfield was treated in the operating ' 
am at Valley Hospital undo: local 

room at Valley Hospital undo: local 
anesthesia, and received intravenous 
antibiotics to prevent infection and a 
prescription for oral antibiotics to take 
when he goes home to Atlanta. 

Reconstructive surgery involving a 
cartilage graft from Holyfield's intact 
left ear will need to be done to finish 
repairing the one -inch -by -one -half- inch 
piece that Tyson ripped from Holy- 
field's right ear. “It was a fairly sig- 
nificant bite,” Garci3 said. 

An employee of the MGM Grand 
Hotel found some of Holyfield’s skin in 
the ring and rushed it to the hospital on 
ice. “But by the time it came in, it was 

not viable,” Garcia said. “And they 
couldn’tfind the cartilage, so rather than 
taking die chance of the skin not closing, 
we just stitched it up.” 

Professional bouts won't be possible 
for about two to three months, Garcia 
said, because of the danger of further 
damage to the wound. If Holyfield opts 
for reconstructive surgery, it will be 
another month or two after that surgery 
before he can return to the ring. 

Holyfield has been vaccinated 
against hepatitis B, a viral infection that 
attacks the liver, but doctors still tested 
his blood to be sure that he was pro- 
tected against die virus and found that 
he indeed was. “The biggest worry is 
infection,” Garcia said. 

Human saliva contains a wide variety 
of potentially dangerous bacteria and 
viruses that can cause long-term, chron- 
ic illness and could complicate Holy- 
field’s recovery. 

The risk of contracting something 
such as HIV, the virus that causes AIDS, 
from a human bite is infinitesimal, ac- 
cording to the U.S. Center for Disease 
Prevention and Control in Atlanta. 
There is no evidence that Tyson has 
tested positive for HIV or for any other 
blood- tome disease. 

Both Tyson and Holyfield would 
have been tested for AIDS before Sat- 
urday night’s fight in accordance with 
Nevada state boxing laws. 


“I must say that die Centre Court is 
really badly damaged,” added No. 3 
Jana Novotna, who reached the fourth 
round to find that she was even closer to 
her first Grand Slam title because of an 
upset to the No. 2 seed, Monica Seles. 

On another gloomy, cold day, Seles 
was beaten by the outrageous score of 0- 
6, 6-4, 8-6, by the world No. 23, 
Sandrine Testud of France. Seles was 
nothing like the lS-year-old girl who 
lost the Wimbledon final to Steffi Graf 
five years ago. At that tournament her 
opponents complained about her grunts 
during play, looking to distract or annoy 
her, tot no one mikes any such com- 
plaints anymore. 

She seems neither as confident nor as 
dedicated — but then who would be, with 
her lather sick with cancer, her comeback 
to the game adrift On People’s Sunday, 
when Centre Court was filled with 
13,000 strangers, most of them cheering 

first seven games, and in the final set she 
held a 5-2 lead, in the ninth game, the 
umpire overruled a call to give Testud 
an advantage of love-30. “I shouldn’t 
have let it bother me that much,” Seles 
said of die umpire's decision. It set 
Testud on a run of six games from the 
last seven, defeating Seles's only match 
point along the way. 

Testud 's coach is also her boyfriend 
In the last two years she has taken off as 
much weight as Seles has put on. 

Wfaai was her secret? “Love,” said 

Each of the 16 surviving ladies is 
seeking her first Wimbledon title. None 
have come closer to it than Novotna, 
who was five points away from up- 
setting Steffi Graf in 1993. Now 28, 
Novotna must win before the next gen- 
eration drives her away. 

“For the moment it is like in the 
middle of a change,” Novotna said after 

her 6-4, 6-2 victory over Gala Leon Gar 
da. “Hopefully by die time the oldei^ 
generation has retired die young ones 
will be good and they will develop 4 
personality.” . < 

In the meantime, Novotna senses hex 
advantage. “Just from looking around 
to see what players eat,” she said, “mid 
how they take care of themselves, t 
don't think they’re doing it in a pro{ 
fessional way.” • ; 

No. 1 Sampras and No. 8 Becker havq 
reached the round of 16 withm 
set The American champion' 
with a 6-1, 6-2, 6-2 victory over Byron 
Black of Zimbabwe,, while ‘Becko:.bear 
M[aric P^tchgy of Britain^ 6-3, 6-3, J6r2j 
Sampras land Becker are tc| 

meet in a sensational quarterfinal, though 
Becker must first have 'an' interesting 
fourth-rounder against No. '9 Marcelcf 
Rios, the Chilean clay-courier. * 

“I strongly disagree that it’s a young 
mao's championship,” said Becker, 29J, 
who is seeking his first Wimbledoo tido * 
since 1989. “You need to be veiy, very 4 
patient Your nerves have to be excellent' J 
Obviously, you need to know bow to! £■ 
play on a grass court” $$9 

No. 3 Kafelnikov hadadifficult thirds 3* 
round match against Jason Stoltenberg ■ 
of Australia, but overcame him by 6-3( 

7-6 (7-4), 4-6, 6-3. No. 1 3 Andrei Med- 
vedev was upset by Nicolas Kiefer o£ 
Germany 6-4, 6-2, 6-7 (2-7), 6-4. ; 

The dark horse in the top half of the! 
draw is No. 12 Patrick Rafter, who’ 
reached the' French Open semifinal in 

5- -vr-ctf 
i ••• . —ism 

; ■; : r. ':«a 

! . . .rJiet 1 

. ’T 

• :•> 
-his ft 

■’ rf; 

spite of his serve- and-volley game* 
Rafter beat Cbristophe Van Garsse of 

Rafter beat Cbristophe Van Garsse of 
Belgium by 7-5, 6-4, 4-6, 6-3. 




Major League Standings 







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A. Marita f7L KYoung (7). 

Houston 000 1M 030-10 II 3 

Russia 93, France 80 
Greece 72 Lithuania 66 
Russia 87. Israel U9 1 

STANOMCSe Greece 4 vktories Russia 4; 
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Yugoslavia 8a Gennay 73 
Italy 62 Spain 40 

World Cup 

El Salvador 1, United Stales 1 
STUHMMQS: Mexico lT poinfcu Cosfo RF 

ca 7; United States 6; BSdvador&QmodaS 
Jamaica S. . ■ ■ ‘ 

Poland 77, Croatia 76 
Italy 67, Germany 62 


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Brazil 1 Bofivia 1 . . . 




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Odessa 092 100 000-6 11 2 

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Alvarez, Kathner (AL It Hernandez (9J and 
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Patricia Hy-BouWs. Canada, dot Mafr- 
dalena GrzytMwska. Poland, 6A 4-1; Yayuk' 
BasukL Indonesia, def. Naofar JC^muta, 
Japan, 6-3, 6-1 Mary Joe Fernanda CIT^ 
U^det-Tomartne Tanasugam ThaBand,6- 

Maria Alejandro 'Verria Venezuela thS. 
Magdalena Maleeva Bulgaria iH 7-5? Sore 
drine Testud, France, def. Monks Seles (ffi 
U JL 0-4, 6-4 8-4; Derdsd Chladkova Czecj 
Republic, del. Rodta Zxvbokovu. StovoMa 6, 

7 C3-7), 6-1 8-6. 

Jana Novotna (3), Czech RepabBc def. 
Gala Leon Garda Sort. 64. 6-1 May 
Pierce (9L Franca drri. Mogul Serna Spala 
6-4 6-3; Arantxa Sanchez Vtoato (8L Spoirt 

def.narendoLabaLAi9aifina6-1.6-2. ,u 
NoThoJre Tnuziat Franat, def. J irditti Wte- 1 
ner, Austria 3-6, 6-1 6-2. 

.v- 1 „ _ — 

rr* ^ oenynnr U Minn.yiy 

^^LWdtoOj.Pj.namn). l.G^^aArSSSSpdm.ov- 
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Prince (8). w— Astacia 4-7. L-DnJadis«v 1 f, 94, \ f *"* EWngtea 

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SL Loras 102 010 810 001-6 11 0 "»"»■ Mtt; m Dovia Love. U5. 517; T9. 

THIRD ROUND , . - ~ 

Todd Woodbridge, Awtrafio, de£ Ataeei^ 
der Radulesea Getmrny, 6-4. 64, 64; 
Patrick Rafter (12). AmtroBa def. Cfarishspbg 
Van Garsse, Bdgfimt. 7-5,64, 4-^ 6A Boris 
Becker (®, Germany, def. Mazk .Pefetieyi 

Britala 6-3, 6-16-2. .'•••■ J 

Pete Sampras (f), US, def. Byaw Blade 
Ombabwa 6-1, 6-Z 6-2, Petr Kpnto HAJj 
Czech RepubTrc def. Alar ffBrieaU^ 64 
44,6-3,6-7 n-7),64rMOKelo Rtet9) f CMl6 
def. John VOn LratDm,NeAeriondSrM(7-4), 
646-7 (5-7). 64L 

Nicotax Kiefer, Gemwny, def. Airdfd Metf 
vedev (13). Ukralna 6-4, 6-2, 6-7 0-3). 64! 
Yevgeny KafefidtMr 0), Russia defc Jason 
Staltentaerg, Ausdrafia 60,7-6 (7-41,46,6^, 


Qrrcirwfi im 001 010 (m-5 13 0 
(12 InningsJAaBarKa Foasas (7). T. 
JJMathowB (8), Frascafare (10). Ectareley 
(12) and Difeftcc. Lampkin nil; Morgan. 
Belinda (5), RanGnger (7), Snow (HU, 
Carrasco 02) and J. Oliver. W-Fnscatare, 
3-2. L-Cmrasca 1-1 Sv— Eckenfey (16). 

Ji^ln Uonart U.S.5J)a,-30. VTjay SingH Pift 



pousm eap nHAi 

HRs-M. Laufa Lankford 06). Dayton (6). Lo 0 1 ° Warezawo 7 . GKS Katowice 0 

Ctadnnoti. Tautransee (61. JOOvar (4). 


European championship 


Turkey 81. Intral 71 


Tampa Bay3,La8AngekB3 
Kansas CJty 4, Cotortsto 3 
San Jose 1 Danas 1 

STANDtHOS: Ea»tan> CoMeranoe: D C 
29 . polm» Now England 22; Tampa Bay 2Jt 
17; NY-NJ 13, Western &nte- 

f* te ; Kansas City as, coioroda 22 Dallas la 

Son Joh 14; Los Angeles 10. 


BALTIMORE— Added OP Genmtaw Berroo • 

lo2S-rnan raster. OpUandl OF DovtDsBuCCI J* J 1 
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CHICMO-Opfioned Brunt Brawn te Iowa ; 
AA. Reaffled rhp Marc nsdafta from 

los AMCELEs-Rearifed OF TfriW Hoi- I 
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pitts burch— pm inf Joe Rondo an IS- 
day tfeofaJerJ fijt. Recalled INF Lou Coaler 

hom Calgary of IfiePa. 

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Brazil Survives Bolivian Barrage 

OmpHedHf Or 5*6 Fiu* Jteporfa* 

LA-PAZ — Brazil wot the Copa 
‘America the hard way, surviving a 
Igecond-half bombardment and then 
gearing twice in the last 15 minutes to 
teat the host Bolivia, 3- i , in the final. 
p .The Brazilian striker Ronaldo had 
■Jookedone of the players least likely to 
‘score until the 79th minute Sunday 
[jiigbl, when he put Brazil ahead, 2-1. Ze 
k iRoboto then scored in injury time to 
*jvc Brazil its fifth Copa America title 
V i(rt to first on foreign soiL 
, .The . two goals came after Brazil, 
d'snjgglmg to cope with playing at 3400 
1 Spiels (12.000 feet) above sea level, 
fiatiJeen run ragged in the second half. 
XCB^mundo, standing in for the injured 
Jba^rio, gave Brazil a lead in the 37th 
rattle, but the world champions were 
ropes from the moment that Taf- 
&t§freli vrf his La Paz nightmare, 
►^■horrendous misjudgment by tbe 
fesril goalkeeper near halftime allowed 
fi-fong-range shot by Erwin Sanchez to 
hoasce into the goal for Bolivia’s equai- 
Sje^ Four years ago, Taffarel scored an 
$wg goal as Bolivia handed Brazil its 
fist arid only defeat in a World Cup 


: ^ Brazil was the shadow ofthe team that 
jHd won their its five previous games at 
sea level in Santa Cruz. Ax times in the 
Second half, the Bolivians appeared to 
. juvc an extra two or three players. 

Tt Bolivia, sensing Taffarel ’s uneasi- 
ness, took a series of shots from outside 
die penalty area. 

r Brazil was saved by the crossbar 
[twice.' Several other shots flew narrowly 
wide, with the beleaguered goalkeeper 
[uncertain whether to leave them or not 

But Taffarel made a superb save on the 
hour, parrying a powerful, close-range 
drive by Julio Cesar Baldivieso. 

A Bolivia goal seemed only a matter 
of time after the break until Ronaldo 

World Soccik 

latched on to a long through ball by 
Denilson and scored with a powerful 
drive from just outside the penalty area. 

• FIFA, world soccer’s governing 
body, said Monday that it would decide 
if Ronaldo was free to move from Bar- 
cetooa to Intemazionalc Milan. 

FIFA received an official request from 
Inter to investigate the transfer, along 
with 40 pages of documentation, on 
Monday, supporting its claim to the 
world player of the year, who paid $274 
million to free himself from his contract 
with Barcelona. 

•Barcelona confirmed Monday that 
Louis van Gaal, die former Ajax Am- 
sterdam boss, would replace Bobby 
Robson as coach. Robson is expected to 
become general manager. 

WORLD CUP Tbe United States tied, 1- 
1, against El Salvador in San Salvador in 
a match that featured a heavy police 
presence but none of the spectator vi- 
olence feared by die authorities. 

After a feeble, scoreless first half , the 
Americans took a 1-0 lead in die 52d 
minute on a volley by Roy Lassiter, but 
a defensive, lapse let Raul Diaz Arce 
score with a mis kicked shot 10 minutes 

Wheo a line drive by Lassiter de- 
flected off the crossbar in the 90th 
min ute, the United States hnH a gain 
collected a result on tbe road that was, in 

the words of Coach Steve Sampson, 
acceptable but not desirable. 

At the midway point of World Cup 
qualifying, the Americans (1-1-3) con- 
tinue to slouch toward France in 1998 
with enough talent to get there, but 
without a killer instinct, a set lineup or 
the poise and maturity to beat a weaker 
team on the road. 

Three of the six teams from the North 
American, Central American and Carib- 
bean region will advance to the 1998 
World Cup next June in France. 

"We’ve clearly shown we’re in the 
top three of the group,” stud Sampson, 
whose team now sits behind Mexico (3- 
0-2) and Costa Rica (2-2-1). "If we win 
three of the next five, that puts us in the 
World Cup.” 

The atmosphere at Cuscatian Stadi- 
um was festive instead of -menacing; 
feared disruptive behavior by the crowd 
never materialized as approximately 
100 national policemen in riot gear 
circled the field and 1.400 policemen 
lined the aisles of the stadium. 

After an assistant referee was hit in 
the head with a bottle in the El Salvador- 
Mexico game, the U4. ambassador to El 
Salvador. Anne Patterson, recommen- 
ded that embassy personnel not attend 
Sunday’s match-But except for a few 
mangoes and bags of water tossed a John 
Harkes during comer kicks, the crowd 
was enthusiastic but well-behaved. 

"We were very well-treated here,” 
Sampson said. “Maybe the ambassador 
might want to reconsider her statement. 
These people are a soccer-loving coun- 
try. I think drey demonstrated it a gain 
today in a very friendly environment” 
(NYT, Reuters ) 

Blue Jays 
Wrap Up 
A Sweep 
Of Orioles 

- .... 

. \ , S' ok 

■ y.::' %;-> 

■ Ph, •><*., 

... .T v- v 


Child’s Play Warped by Adult Goals 

New York Tines Service 

W HEN MY 7-year-oJd son re- Vantage Point I Harviy Araton 

jeered the opportunity re- 

cently to try out for his age defendants, who were convicted in is rewarded by Converse with a new 

New York Times Service 

W HEN MY 7-year-oJd son re- 
jected tbe opportunity re- 
cently to try out for his age 

S ’s town travel soccer team, I 
myself not wanting to take no 
for an answer, and creating more 
. subtle ways to rephrase tbe question. 

"I don’t want to,” he’d say, leaving 
roe in a quiet sulk until one night, he 
asked if he could continue to play in 
‘ the less-glamorous town league with 
-his friends. When I told him. “Of 
course,” he pumped his fist and cried 
but; “Yesf "I was jolted to reality and 

The game, fra- him, is obviously 
about playing in the pork with kids he 
knows. It is not about status and priv- 
; ilege, which it only becomes when 
adults ascribe achievement in sports 
that is disproportionate to everything 
; else. When today’s rabidity becomes 
; tomorrow’s laxity, then, " as Bernard 
; Lefkowttz Mghtenmgly details iohis 
/new book, **Our Guys,” (University 
of California Press), 3 is time to hide 
' the - women and less athletically in- 
■ dined children at first sight of the 
newly fanned Jock E&e. 

This book chronicles a most tragic 
extreme, the 1989 rape case in Glen 
Ridge, New Jersey, in which a 17- 
’ year-old girl classified as “educable 
mentally retarded” was sexually as- 
saulted by a gang of popular high 
- school athletes in a small, upscale sub- 
urb that-as far bade as 1941 was de- 
scribed in a Yale University study as 
putting "too great an emphasis on 
• producing winning at the ex- 
’ pease of social values.” 

The book's release comes as four 

The Angels’ Gary Disarcina sliding to break up a double play, upending 
tbe Mariners’ Joey Cora as Alex Rodriguez jumped out of the way. 

Estes Wins 7th Straight 
As Giants Down Rockies 

defendants, who were convicted in 
March 1993, finall y face sentencing 
on Monday. Lefkowitz, a Columbia 
Journalism School instructor who nur- 
tured his book through years of legal 
delays that caused the original pub- 
lisher to drop tbe project, said, A If I 
thought Glen Ridge was unique, an 
aberration, then I wouldn’t have done 
the book.” 

But he knew, as we should know, 
that the warped values that produced a 
heinous crime and many more ad- 
olescent victims of harassments, doc- 
umented by Lefkowitz, exist every- 
where. The Logical extensions of Glen 
Ridge High School are the University 
of Nebraska football program and the 
Dallas Cowboys. “Our Guys” grow 
op to be America’s terons. I’ve been 
wondering lately -if the genesis of die 
aberrant behavior by so "many team 
sport athletes, particularly related to 
women, could in some Cases be 
something so seemingly simple as a 
father nudging a 7-y ear-old toward 
town-wide recognition. 

I N first-grade soccer tins year, I 
watched collections of future stars 
beat up on teams that would play 
entire fall and spring schedules with- 
out so much as scoring a goal. Who 
benefits from these displays of might, 
besides the junior Peles’s coaches, 
who arranged for extra showdowns 
with fellow juggernauts instead of just 
balancing teams from top and bot- 

In a society where Dennis Rodman 

is rewarded by Converse with a new 
marketing campaign after assaulting a 
photographer and cursing Mormons, 
decency and common sense are indeed 
upside down. But local obsessions are 
only partly related to scholarships and 
shoe deals. As Lefkowitz reported, 
most of tbe Glen Ridge athletes would 
have been relegated to nerd land had 
they crossed the borders into neigh- 
boring Montclair and Bloomfield, 
towns with large black and blue-collar 
populations. Yet, from the time they 
could run faster and hit harder in their 
own «™il pond, they were indulged to 
the point where tbe trashing of a house 
at an unsupervised party brought no 
farm of punishment. Not from parents , 
educators or coaches. 

“Our Guys” is more about child- 
rearing in America than it . is about 
sports. About bow celebrity Creates - 
power, and in the community creates 
die social equivalent of a military 
coup. Woe to those who try to resist 

‘*1 went to the high school gradu- 
ation in 1989,” Lefkowitz said. 

“And when the one kid — Charlie 
Figueroa, one of three blacks in the 
school — who actually admitted to his 
teachers that he’d heard about the rape 
walked across the stage to get his 
diploma, you could hear the calls: 
‘Snitch, snitch, snitch!’ ” 

In Lefkowitz ’s opinion, the kid 
should have had a statue erected to him 
in front of the school The sad truth is: 
Monuments and trophy cases are bail! 
faster for jocks who score than for 
champions of virtue. 

The Associated Press 

Shawn Estes won his seventh con- 
secutive decision as San Francisco beat 
Colorado, its closest pursuer in the Na- 
tional League West, 7-4. 

Estes (11-2) shut out Colorado until 
Larry Walker's run -scoring single in the 
seventh inning Sunday. It was another 
strong outing by the left-hander, 

NL Roundup 

who has built a solid case for an All-Star 
berth in his first full season in the majors. 
Estes struck out seven and left with the 
bases loaded and no outs in the seventh. 

Walker, who hit a home run in the 
ninth off Doug Henry, went 2-for-} and 
leads tiie majors in batting at .410. Bany 
Bonds hit : his 19th home ran for the 
visiting Giants, and jeffKenr and Da- 
mon Berryhill also connected for solo 
homers for San Francisco. 

Bravos 6, PtiiKas 5 Keith Lockhart, 
pinch-hitring, socked a grand slam as 
Atlanta rallied from a five-run deficit to 
complete a four-game sweep at Turner 
Held. The Braves have won five in a 
row, and have won nine straight series 
against Philadelphia. 

The Phillies' starter, Scott Ruffcom. 
was pull ed after 5 VS innings even though 
he bad not allowed a hit and held a 5-0 
lead. But he had walked four, hit two 
batters and thrown two wild pitches. 

Ron B lazier relieved in the sixth, 
Mark Lem ke hit a run-scoring single 
and Lockhart connected for the first 
slam of his career, tying it at 5. Fred 
Me Griff tripled home tbe go-ahead run 
in the seventh. 

Cart&nals fi, Reds 5 St. Louis blew 
four leads, but won in Cincinnati on Ron 
Gant’s run-scoring single in the 12th. 

There were two rain delays in the 
game, which lasted 6 hours 20 minutes 
and finished with rain falling and about 
200 fans left. 

nets 10, Pirates 8 John Olenid 
bomered twice, and Todd Hundley. 
Butch Huskey and Matt Franco also hit 
home runs as New York overcame a 6- 1 
deficit at Three Rivers Stadium. 

John Franco, who blew two save 
chances last week against Pittsburgh, 
earned his 342d save, moving him past 
Rollie Fingers into fourth place on the 
career list. Man Franco hit a two-run 
homer, giving him six straight hits as a 

Dodgers lO, Padres 4 Pedro Astacio. 
0-7 in his previous 1 0 starts, pitched Los its first victory in 1 1 games 
against San Diego. The Padres had won 
their previous eight ai Dodger Stadium. 
Eric Kanos drove in four runs as As- 
tacio (4-7) improved to a 4-0 lifetime 
mark against the Padres. 

Astros 10, Cubs 8 Tommy Greene, 
making his first start since Sept. 16. 
1995, struck out seven in 4 l A innings as 
Houston won at Wrigley Reid. 

Greene also hit a double as the Astros 
took a 7-0 lead. But he tired on the 
mound and left after allowing four runs 
and six hits. Greene missed last season 
because of back and shoulder injuries. 

(brims 5, Expos 3 Moises Alou, who 
left Montreal in the off-season to sign 
with the Marlins, hit a two-run triple that 
highlighted a four-run first inning at 

The Associated Press 

The squeeze is on the Baltimore On-; 
oles at the top of the American League 
East ! 

Joe Carter’s sacrifice fly broke an 
eighth-inning tie Sunday as the Toronto 
Blue Jays beat the Orioles, 3-2, to com-! 
plete their first four-game sweep in Bal-; 

Baltimore’s lead in the division, 9 Vi 
games on June 5, is down to 516 games 
over the second-place New York Yan-. 
kees. ! 

Geronimo Berroa, making his debut 
with Baltimore after being obtained in a 
trade with Oakland, went 0-fbr-5 with 

AL Roundup 

three strikeouts. The Orioles* new des- 
ignated hitter stranded six runners, mak- 
ing the final out on a fly ball to the 
warning track in center with a runner on 

“It's only one ugly day. I’ll be 
O.K.,” said Berroa, who arrived in Bal- 
timore at 2 AM. ”1 don't have too many 
games like that in my life.” 

Marimrs3,Ang*ls2JoseCruzJr. hit a 
solo homer off Rich DeLucia with two 
outs in the ninth at the Kingdome. and 
Ken Griffey went 1 -for-4 in his first 
outfield stan since straining a hamstring 
Inst Wednesday. 

Randy Johnson, in his first stan since 
striking out 19 against Oakland, struck 
out seven in eight-plus innings. He al- 
lowed two runs — none earned — on 
five hits and five walks. 

Anaheim loaded the bases with no outs 
in the ninth and the score 2-all, but Bobby 
Ayala pitched his way out of trouble. 

Athletics 7, Rangers 5 Mark McG- 
wire hit his 29th homer to tie Griffey for 
the major-league lead, and John Wette- 
land blew a save for the third time in 
four tries, allowing run-scoring hits to 
Dave Magadan and Mark Bellhorn in 
the bottom of the eighth. 

Yankees 1 1, Indians 10 Tino Martinez 
bailed out New York's bullpen with a 
run-scoring single in the eighth, break- 
ing a 10- 10 tie created when Cleveland 
scored three runs in the top of tbe in- 

Martinez, who hit a three-run homer 
in the first inning, has 1 1 hits in his last 
20 at-bats and six homers in his last six; 
games. Manny Ramirez drove in four 
nms and Matt Williams hit his ihircf 
homer in two days for the Indians. ; 

White Sox 6, Twins 4 Wilson Alvarez] 
won his fourth straight start as visiting] 
Chicago won for the 10th time in 12] 
games. All four Minnesota runs were 1 
unearned because of fielding errors by! 
Frank Thomas at first base and Chris; 
Snopek at third. 

Mike Cameron robbed Roberto Kellyi 
of a potential game-tying homer in the; 
eighth with a leaping catch above th& 
center-field fence. \ 

Rod Sox a, Tigors 6 Darren Bragg, in] 
an 0-for- 1 5 slump, doubled to break a 6-i 
6 tie in the seventh at Fenway Park, andj 
Mike Stanley added a run-scoring single] 
later in the inning as Boston beat De-‘ 
troiL I 

Brewers 3, Royals 2 Jeff Husoh’s tWO-J 
out single scored the go-ahead ran as! 
visiting Milwaukee rallied for two runs] 
in the ninth. ! 






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Appears «ety Ws&esday' 
in The InlcrmarLiH- 
Tb advrrtiw*rt>ntart Judith King 
in our New York oflkr 
TH.: (1-212) 7523890 
Fax: (1-212) 755 8785 
or jour ircarrsS IHT office 

or rrpttWttsaKe. : V 



our Caterers a rousing 

. ' s — -1 CHEER.' 







Kl ! 



Best-Dressed, Man 

Industrial Bilbao Looks to a Designer Future 

reason that I am con- 

sidered one of the best- 
dressed men in Washington is 
that 1 have my shirts made in 
Sri Lanka, my 
suits cut in Po- 
land, my shoes 
designed in 
China and my 
ties sewn in 

This is not 
my doing — it’s 
what my de- Buchwald 
panmeat store 
sells, and whatever country it 
chooses to import my clothes 
from I have to go along with. 

- Unlike most people who 
just walk into a store and say, 
“Give me a button-down 
shirt from Sri Lanka," I like 
to think dial the person mak- 
ing my shirts knows he works 
forme and takes great care in 
what he is doing, because 
once I buy it, I might wear it to 
die White House, the Senate 

Dining Room or on the 
“Larry King" show. 

By Alan Riding 

New Yori Times Service 

B ILBAO, Spain — Just months 
from its inauguration, with one 

Westminster Abbey 
To Charge Entry Fee 

I imagine the dialogue with 
my shirtmaker in his home 
where he and his wife both 

His wife says, “Will you 
take the garbage out, dear*?" 

“Not now. I am working 
on Buchwald ’s shirt and be 
needs it by Thursday because 
he’s going to a party for Don 
Imus at the White House.” 

“How do you know 

“I heard it from the 
BLoomingdale's shirt buyer. 
He said that Buchwald is a 
fashion plate, and everyone at 
the Clintons' will look to see 
if he is wearing a button- 
down shirt or a winged col- 

“What are you going to 

“I’m going to give him a 
winged collar but insert* two 
buttons in a cellophane bag in 
case he wants to go the other 


LONDON — Westminster 
Abbey will start charging an 
entry fee of £4 ($6.40) in Au- 
gust to relieve overcrowding. 

Church officials feel they 
need to deter the crowds to 
retain die sanctity of the 900- 
year-old abbey — the site of 
the coronation of every Eng- 
lish monarch since 1066. 
“The authorities have long 
charged for entrance to the 
abbey’s Royal Chapels. But 
the decision to charge at the 
main door, initially for a trial 
period in August, comes after 
Canterbury Cathedral last 
week announced it would ex- 
tend charging to- Sundays to 
reduce ‘disruptive and dan- 
gerous overcrowding,' ” the 
Observer newspaper said. 

“Are you giving him 
French cuffs or regular?” 
“I’m giving ban French 
because I just heard that he 
bought a new set of cuff links 
made in Thailand.” 

“I hope that the shirt fits 

“I can't miss. I got his 
measurements from our cous- 
in in Singapore who made 
Buchwald’s last shirt which he 
purchased from JCPenney.” 
“You’re the best. I wish I 
could put your name on the 
pocket of every shirt you 
make so the whole world 
would know that you had 
made it" 

’‘That would be brag- 

D from its inauguration, with one 
work of art in place, several interior 
walls unfinished and the entrance 
plaza slippery with mud, the spec- 
tacular new Guggenheim Bilbao Mu- 
seum designed by Frank Gehry is still 
something of a work-in-progress. 

Yet already, it seems, the $ 100 mil- 
lion building has won the hearts of 
many inhabitants of this industrial 
port city in Spain's northern Basque 

It was not always so. At first, many 
local taxpayers balked at the idea of 
their money being spent on what was 
called a “pharaonic” project Local 
artists argued that the money should go 
to, well, local artists; opposition politi- 
cians said the money could be better 
used for schools and hospitals; news- 
papers warned that local culture would 
be controlled by an “imperialist” 

American foundation that was being 
paid a huge sum for the privilege. 

• Further, this grimy city had no tra- 
dition of devotion to the arts. Thanks The Guggenheim 
to nearby iron-ore deposits, it became 
the center of Spam's steel industry in the late 1 9th century. A 
busy port and new shipyards added to its prosperity, which in 
turn spawned profitable banking and insurance sectors. For 
Btibaoans, hard work and moneymaking have always taken 
precedence over beauty and style. 

When the Guggenheim project was brought up for debate, 
however, the Basque government had more than culture in 
mind. It argued that after a grim 1 5 years in which the closing 
of steel plants, shipyards and port facilities had swollen 
unemployment, the museum would serve as both motor and 
symbol of economic revival and urban renewal. 

It also appealed to Basque nationalist pride, promising 
that a world-class museum showing the best of the Solomon 
R. Guggenheim Foundation's collection and drawing per- 
haps 500,000 visitors a year would put the city on the map. 

Today, Biibaoans seem persuaded. Even the unorthodox 
terms of the 75-year agreement creating the museum are no 
longer much of an issue. The Basques agreed to cover the 
$100 million construction cost, to create a $50 million ac- 

rnld Rmmtfljfrr twTiv fcATim* 

Bilbao Museum, designed by Frank Gehry, rising along the Nervion River. 

g uisition fund, to pay a one-time $20 million fee to the 
iueaeoheim and to subsidize the museum's $12 million 


pino .” 

think so.” 

Lauren doesn't 

Guggenheim and to subsidize the museum's $12 million 
annual budget. In exchange, the Guggenheim would manage 
the institution, rotate parts of its own permanent collection 
through it and organize temporary shows. 

Perhaps even more surprising, given the unconventional 
appearance of Gehry a s multifaceted stone, glass and ti- 
tanium-covered museum, many residents already appear 

genuinely fond of what one businesswoman affectionately 
called “the beast” now poised on the banks of the Nervion 
River against a backdrop of traditional 19th-century build- 
ings. Not long ago Bilbao was trapped in the past; now it is 
reaching for a designer future. 

In that, it is emulating Barcelona and Seville. Using the 
occasions of the Summer Olympics in Barcelona ana the 
universal exhibition in Seville, both in 1992, these cities 
spent heavily on new highways, bridges and cultural in- 
stitutions, many of them designed by top international 
architects. At the time, Bilbao felt left out; now it is rushing 
to catch up. 

Two new bridges over the Nervion have just opened, one 
of them an ultramodern suspension bridge for pedestrians 
designed by the Spanish architect Santiago Calatrava, who is 
also building a new city airport. A subway system designed 
by Sir Norman Foster of Britain opened IS months ago and 
has already relieved traffic. A low-lying river bank known as 
Abandoibarra. long occupied by factories, warehouses and a 
railroad depot, is being redeveloped by the Argentine-bom 
architect Cesar PellL 

Even before its official opening in early October, 
however, it is the museum that has captured the city's 
imagination. Standing at the eastern end of Abandoibaira, 
facing the river on one side and the city on the other, it 

Two rectangular gallery wings are 
covered, in Spanish limestone, bul a 
third, its titanium exterior, giving it a 
shimmering silver look, stretches no 

\ iessthan43bfeet(130meters)beside 

the river. ‘ 

^ The 257,000-square-foot (23^00- 
square-meter) museum is entered 
through a lobby that leads cp a dra- 
matic 165-foot-high atrium, one and a 
half times the height of the rotunda of 
Frank Lloyd Wright’s . Guggenheim .. 
Museum in New York. Glass-covered : 
elevators and staircases, cling to its : 
wails, while balconies on the second 
and third floors lead tothe mere tra- ' 
ditional spaces. To one. side the 
atrium, the long barrel-roofed gallery 
known as “The Boat" opens op like 
the mouth of a huge w hale. Aud it is' 
there that the museum's first artwork. 
“Snake” by Richard Sena, has been 

The museum will open with "The 
Guggenheim Museums and the Art of 
This Century,’ ’ a 300-piece overview 
of 20th-century art from Cubism to 
new media art Most pieces will come . 
Rm/1>nrrt<rTh<- >n> Mfclunn from the Guggenheim's collection, - 
the Nervion River, but Bilbao has also acquired paint- . 

ings by Willem de Kooning. Mark ~ 
Rothko and Clyfford Still and has commissioned new works 
by Francesco Clemente, Anselm Kiefer and Jenny Holzer as 
well as Serra. 

Not likely on show, though, will be the painting most 
wanted by the museum. In January, it submitted a request to 
the Reina Sofia Art Center in Madrid for the loan of 
“Guernica,” Picasso's landmark painting of the 1937 
bombing by Nazi aircraft of the small Basque town of 
Guernica, a few miles south of here. In May, the request was 
turned down on the ground that the painting was too fragile 
to travel, a decision that was promptly seen in the Basque 
region as politically motivated. A Spanish government com- 
mission, however, recommended last week that the painting 
be transferred to Bilbao. 

Thomas Krens. the director of the Guggenheim Foun- 
dation, showed a visitor a special gallery reserved for 
“Guernica” in the hope that the decision will be reversed. 

m s 

> — "“ir 

I r:l «! •••- 

“The painting has traveled to 35 institutions,” he said. “It is 
part of the history and blood of this region.” 

Still, eager to acquire a local identity, the museum has 
begun acquiring works by contemporary Spanish artists, 
although not without stirring controversy. For example, it 
has bought works by the country's two best known living 
artists, Antoni Tapies and Eduardo Chillida, but it has so far 
overlooked Jorge Oteiza. an outspoken critic of the Gug- 

resembles a vast free -form sculpture with a jumble of genheim Bilbao who was once the Basque region’s most 

titanium-clad cubes rising from its center. 

prominent sculptor. 

7-. : ac 



P ROLONGED rain has forced the can- 
cellation of a maior horse show claimed as 

X cellation of a major horse show planned as 
a tribute to Queen Elizabeth’s golden wed- 
ding anniversary. Two years of planning had 
gone into the Royal Pageant of the Horse, 
which was to have featured more than 1,000 
horses and 4,000 participants in Windsor 
Great Park, west of London, on July 5. But the 
organizers said heavy rainfall over the past 
month had turned the park into mud, making it 
unsafe to construct a large stage, seating 
tribunes and lighting towers for the show. 

this year,” said Johnny Grant, chairman of 
the Walk of Fame Committee. “We have 
young performers who have met the criteria 
and will continue to grow careerwise. We 
have current headliners and, of course, the 
legends." Celebrities in the film category 
who will receive a star also include Mike 
Nichols, Joe Pesd and Stuart Whitman. 

About 100 friends and family members who 

.*1 1 - 1 ■ W 

gathered at a memorial service in Malibu, 
California, to remember Brian Keith de- 

The crime film "Set It Off” set off an 
award spree at the Acapulco Black Film Fes- 
tival, including one for Queen Latifah as best 
actress and one for F. Gary Gray, the di- 
rector. “Once Upon a Time When We Were 
Colored” won the best film award, and Ossie 
Davis was named best actor for his role in 
“Get on the Bus." 

California, to remember Brian Keith de- 
scribed him as a “loving curmudgeon” not 
unlike his character in the "Family Affair” 
television show. Keith, who had been suffering 
from lung cancer and emphysema, died last 
week of a self-inflicted gunshot wound. John- 
nie Whitaker, who starred with Keith on 
"Family Affair," which ran from 1966 to 
197 1 , said he will recall Keith as “the great fun, 
loving curmudgeon that he always has been.” 

Bowles, in a “nonroyal” wedding. Diana's 
Kensington Palace office tersely dismissed a 
newspaper report that she had become un- 
officially engaged to Hasnat Khan, by say- 
ing, “The Princess of Wales has not become 
engaged to Dr. Hasnat Khan, officially or 
unofficially.’ ' Another newspaper. The Sun- 
day Times, said friends of Charles and Parker 
Bowles were preparing the ground for a 
“morganatic” marriage so they could live a 
“more honest and contented life together.” It 
said a growing group of influential Figures 
believed a morganatic marriage, which would 
allow Charles to remarry without conferring 
royal status on Parker Bowles, would give 
him emotional stability and guarantee a suc- 
cessful reign. Such a marriage would require 
legislation to amend a 1772 act of Parlia- 

writer lived just a few blocks from the eatery 
and frequently dined there, but it was a meal 
only oo paper that made the restaurant fa- 
mous; Sam Spade — Hammett’s alter ego — 
ate there in “The Maltese Falcon.” 

Wanted: movie extras eager to watch the 
rock star Meat Loaf chase a greased pig. The 
pay: free soft drinks. "We'd love it if we got as 
many as 1,000 people out there,” said Eliza- 
beth Schulze, coordinator for the made-for- 
TV movie “Everything That Rises,” directed 
by and starring Dennis Quaid. He'Ll be shoot- 
ing a mock rodeo and greased-pig contest at 
Park Count}- Fairgrounds in Livingston, 
Montana, next weekend and needs people to 
fill the grandstands for Meat Loaf’s scene. 

Some local residents have bigger roles 

Nicolas Cage, Bruce Willis, Kenny G and 
George Gershwin are among 16 entertainers 
who will receive stars on the Hollywood Walk 
of Fame next year. “It’s a wonderful mixture 

The office of Princess Dianu has denied 
that she had become engaged to a Pakistani 
heart surgeon, while speculation surfaced that 
Prince Charles might marry Camilla Parker 

ff Dashiell Hammett ever got a free meal 
at John’s Grill in San Francisco when he was 
a struggling writer in the 1920s, he's paid it 
back in spades. The restaurant has been de- 
clared a National Literary Landmark. The 
Friends of Libraries U.S.A. selected John’s 
because of its association with Hammett. The 

Britain’s newly elected Tory leader, Wil- 
liam Hague, is to many his former private 
secretary in a ceremonv at the House of Corn- 

secretary' in a ceremony at the House of Com- 
mons. the Conservative Party' announced 
Monday. Hague, 36, will wed Fffon Jenkins, 

i 1*54- 

Fnmk Au^cin/Thc Annum] Press 

AWARD OF MERIT — The actress Susan Sarandon 

29, on Dec. 19 in the chapel at the House of holding the CineMerit Award, which she received at 

Commons crypt. 

Filmfest Munich for her contributions to the movies. 

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