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The World’s Daily Newspaper 

London, Thursday, July 10, 1997 

No. 35,569 



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Fear in Cambodia: 
Freedom ‘Is Finished’ 

Rights Workers Report the Arrests 
Of Dozens of Opposition Officials 

By Seth Mydans 

New Yart Tuna Service 

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JPHNOM PENH — In the chaos of 
last weekend's fighting, soldiers at a 
military camp on the outskirts of the 
city took time out from battle to bum 
down the house of a neighbor with 
whom they had a land dispute. 

“Co and complain to tbe human 
rights groups,” they taunted the own- 
er, “because there’s no more human 
rights in Cambodia.” 

The story was told Wednesday by a 
Cambodian human rights worker" to 
illustrate his despair at what be saw as 

Washington stops short of cutting 
off aid to Phnom Penh. Page 4. 

the death of an ideal that had just 
begun to take root here after decades 
of war and suffering. 

“It is finished,” said the human 
rights worker. “Everywhere, people 
are losing their freedom. They cover 
their mouths when they speak be- 
: cause someone might hear them.” 

He added: ‘ 'Do not use my name. 
In Cambodia now if yoo use my name 
you will never see me any more. It is 
very easy to kill now, because there is 
no law.” 

At Phnom Penh ’s international air- 
jjort Wednesday, the jostling crowds 
of foreigners who boarded evacuation 
flights were sprinkled with some of 

the leading figures of the royalist 
party of the first prime minister. Noro- 
dom Ranariddh, who was ousted Sun- 
day in a coup by his coalition partner. 
Second Prime Minister Hun Sen. 

Among those who left were the 
prince’s son and his sister, Bopha 
Devi, one of tbe great court dancers of 
the past. She departed wiih a dozen 
members of the royal court. 

From around the country, there 
were reports of dozens of arrests of 
opposition officials, following the ex- 
ecution Tuesday of one of Prince 
Ranariddh’s top advisers. Ho Sok. 
Thirty opposition officials were ar- 
rested in Pray Veng Province, 13 in 
Battambang and 20 in Kompong 
Speu, according to a foreign human 
rights investigator. “We have no way 
of knowing what else is going on,” he 

There was an unconfirmed report 
that a second of the prince’s top of- 
ficials, Chau Sam bath, had been ar- 
rested and may also have died in 
custody. Other opposition officials 
and at least one Cambodian journalist 
in Phnom Penh said they had received 
calls or visits from security personnel. 
There were reports that judges had 
also been warned to obey the wishes 
of the government. 

[The United States said Wednesday 
that it was pulling about 40 diplomats 
and their dependents out of Cambod- 

See CAMBODIA, Page 4 

NATO Embraces Ukraine as Partner 

'•VrjfJ Kuw’-lpri t 

President Jacques Chirac of France answering a question Wednesday at tbe NATO meeting in Madrid. 


Again 9 Paris Plays the Odd Man Out 

Fellow Europeans Steer Clear of French Contrariness at Madrid Summit 

By John Vinocur 

International Herald Tribune 

Tyson Loses Boxing License and Is Fined 

Mike Tyson’s boxing license was re- 
voked by the Nevada State Athletic 
Commission on Wednesday, a punish- 
ment dial could amount to a lifetime 
ban, and he was fined a maximum of $3 
milli on for biting a chunk out of 
Evandcr Holyfield’s ear during, their 
heavyweight title fighL 
Tyson can apply for reinstatement in 
one year. But commission officials said 
he might never have a license to fight 

again. “Unless thecommissioo changes 
its mind, this would be a permanent 
revocation,” said Donald Haight, the 
panel’s legal adviser. 

The revocation effectively means that 
Tyson cannot box in the United States, 
since other states are bound to honor 
Nevada’s decision. And because he is 
on probation for a rape conviction, it is 
unlikely he would be allowed to leave 
the United States to fight Page 19. 

MADRID — NATO survives and 
grows because it is a success. Its sup- 
porters point this out. often apologet- 
ically these days, as if barely firing a 
shot for almost 50 years signaled some 
kind of fateful imperfection rather than 
a vast and unique utility. 

Tbe alliance stared down the Soviet 
Union, helped give Germany friends 
and a respected place in the world, 
stopped the war in Bosnia-Herzegovina 
and now offers a framework of stability 
for die first time to new and prospective 
members from Central and Eastern 

In this context, fighting NATO is 
fighting success. However honorable its 
disagreements, France has again cast 
itself as the member that w ill not see its 
own victory in that of its partners. At the 
summit meeting here that so much 
wanted to be regarded as a historical 
touchstone, Ffaire went home after 
saying the alliance would fall apart if it 

did not reorganize itself in a way many 
erf its allies say would weaken it rather 
than reinforce it 

In other circumstances, this could be 
another footnote in the 30-year history 
of France’s one-foot- in-one-foot-out re- 
lationship with the North Atlantic 
Treaty Organization. But the United 
Stales is making it clear that it regards a 
French return to NATO's integrated 


command structure as a key element in 
bringing more European control to the 
management of the Continent's security 

“The fact is that everything the 
United States wants to do in this area, 
and virtually all the Europeans too, 
doesn't work with France outside,” a 
diplomat said. 

.At_a news conference Wednesday, 
President Jacques Chirac pressed the 
contrarian stance, saying that France 
would not pay additional sums to help 
finance the entry of the three candidate 

countries and suggesting “that there a 
certain number of people” — clearly 
U.S. arms manufacturers — with a ves- 
ted interest in pursuing weapons sales in 
Eastern Europe. 

Both the United States and Britain 
have acknowledged that expansion will 
mean new costs for the alliance’s 

The summit meeting reflected an ap- 
parently near-atavistic need for France 
to cast itself as eternal counterpuncher 
to the United States on issues where it 
regards its identity as being smothered 
by the weight of the Americans. The 
French pressed for the alliance to take in 
five new members instead of the three 
sought by the Clinton administration 
and said it could not come back as a full 
military participant without substantial 
additional reforms — presumably the 
handing over by Washington to a Euro- 
pean of the NATO Southern Command, 
where the U.S. Sixth Fleet is based. 

A German source said it was apparent 

See ALLIES, Page 6 

The Un-Ron Brown: U.S. Commerce Chief Tones Down Hard Sell 

By David E. Sanger 

New York Times Service 

WASHINGTON — As commerce secretary, 
Ronald Brown was a master at using powerful 
political symbols. Jetting around the world prac- 
ticing what he called “commercial diplomacy,” 
be often traveled with an entourage of big-name 
chief executives and insisted that the U.S. Air 
Force play the role of chauffeur. 

“When that plane lands with ‘The United States 
of America' emblazoned on the side.” be said a 

few months before be died in a plane crash last year 
while on one of those missions , “and the com- 
merce secretary emerges with America’s top ex- 
ecutives, it sends a message that we mean busi- 

William Daley, the commerce secretary for the 
past five months, also knows something about 
symbolism. When he stepped off an airplane in 
South America a few weeks ago, he bad a lot fewer 
CEOs with him, and the woras on the side of the 
plane read “American Airlines.” 

Those contrasting approaches sum up the subtle 

changes in the Clinton administration’s approach 
to placing U.S. economic interests — particularly 
the promotion of commercial exports — at the 
center of the country’s foreign-policy agenda. 

Attuned to the controversies surrounding Mr. 
Brown's rich brew of business and politics, Mr. 
Daley has altered the tone of the Commerce De- 
partment's much-publicized trade missions, set- 
ting clear criteria for choosing the companies that 
participate. He is also placing far less emphasis 
than Mr. Brown did on rounding up billions of 
dollars of deals to sign along the way — many of 

which would often vanish after Mr. Brown's en- 
tourage moved on. 

But altering the style in which Washington 
promotes U.S. exports is only one example of how 
Mr. Daley and other officials have tried to redefine 
commercial diplomacy. Anticipating that the Re- 
publicans leading the congressional hearings on 
campaign financing that opened Tuesday will try 
to link the financing of the 1996 presidential cam- 
paign to the evolution of the administration’s trade 

See COMMERCE, Page 6 

New Council 
Will Broaden 
Ties With 27 
Other Nations 

International Herald Tribune 

MADRID — NATO and Ukraine es- 
tablished a partnership charter Wednes- 
day. involving the second largest of the 
former Soviet republics in a special con- 
sultative mechanism in the event it faces 
a crisis or external threat. 

NATO also pledged to support 
Ukraine’s sovereignty and frontiers on 
the second and last day of the alliance's 
summit meeting here. The agreement 
with Ukraine, which is not actively 
seeking to join the North Atlantic Treaty* 
Organization, seemed tailored 10 fit its 
geographical and historical circum- 
stances as a nation largely dominated by 

At (he same time, the alliance gave a 
formal start to the Euro-Atlantic Part- 
nership Council, which brings together 
28 countries into a body based in Brus- 
sels for discussion of defense and se- 
curity matters. The countries included 
Russia, former Soviet republics, and 
neutral countries such as Switzerland, 
as well as Slovenia and Romania, whose 
petition for membership was put off 
until 1999. 

In welcoming the establishment of 
his country's agreement with the al- 
liance, called die Charter on a Dis- 
tinctive Partnership Between NATO 
and Ukraine, President Leonid Kuchma 
acknowledged the special circum- 
stances created by Russia’s warning 
against NATO membership for former 
Soviet republics 

“We understand perfectly well the 
realities that we have on the European 
continent and these are the reasons for 
our cooperation with NATO,’’ Mr. 
Kuchma said. 

The charter provides that “NATO 
and Ukraine will develop a crisis con- 
sultative mechanism to consult together 
whenever Ukraine perceives a direct 
threat to its territorial integrity, political 
independence or security.” 

Under the agreement, Ukrainian of- 
ficials will meet at least twice a year 
with the North Atlantic Council, which 
sets NATO policy. Unlike NATO's 
agreement with Russia, signed in May, 
Ukraine will have no permanent del- 
egation at NATO headquarters. 

Russia’s arrangement included per- 
manent, active consultation — what 
President Bill Clinton has described as 
having a voice but not a veto in the 
affairs of the alliance. 

After inviting Poland, Hungary and 
the Czech Republic in 10 membership on 
Tuesday, the summit participants con- 
tinued to stress their will to erase the last 
traces of the East- West divisions built in 
to the Cold War. The Partnership Coun- 
cil will have its own permanent sec- 
retariat in Brussels with the purpose of 

See NATO, Page 6 

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Strike Ties Up Heathrow 

25,000 Stranded by British Airways WhUwut 


_ LONDON — A strike by flight at- 
tendants forced British Airways to can- 
cel half its flights' out of London on 
Wednesday, leaving more than 25,000 
passengers stranded. 

At Heathrow,' Europe’s busiest air- 
■ port, 135 flights of 196 flights were 
can celed, including 27 of the 50 sched- 
uled intercontinental flights, an airline 
spokesman said. 

BA said it expected to carry only 
14^000 passengers of 40,000 it usually 

fliesout 'erf Heathrow. 

AtGatwick, London’s second major 
airport, traffic was less disrupted. Nine 
out of 1 6- intercontinental flights were 
canceled, but domestic and European 
flights were .expected to take off as 
scheduled. ’ 

The ration expects to announce an- 
other three-day strike after the current 

72-hour stoppage ends Satnrday if the 
' two rides do not reach an agreement on 
the airline’s plans to cut cabin crew 

London’s stock market shrugged off 
worries about the strike and the com- 
pany’s shares rose on hopes that a 
settlement was within reach. But the 

airline said newspaper reports that a 
breakthrough could be made with the 
appointment of an independent arbiter 
were “inaccurate.” 

Members of die Transport and Gen- 
eral Workers’ Union began the 
walkout in tbe face of warnings by 
management that strikers would lose 
perquisites and face a lockout But the 
union pledged to stand firm. 

“Despite all the threats, I can repeat 
that the dispute is solid,” the general 

secretary. Bill Morris, said at the union’s 

conference in Brighton. He said die 
union remained prepared to negotiate. 
“We are committed to negotiating 

and we are ready to talk, but we are not 

going to be bnlne 

iiu/o , 

o ied,” Mr. Morris said. 

We will discuss our future relation- 
ship with BA, but we never ever aban- 
don our members in the face of in- 
dustrial dictatorship.*' 

British Airways bad hoped to save 
£42 million ($71 million) from changes 
in pay and conditions for cabin crews. 
A BA spokeswoman, Terri Urquart, 
said the airline was “very hopeful” of 
resolving the dispute, but a dd e d , '‘As 
yet, no sign of any movement’ ’ 

(Reuters, AFP) 

Tin Ck lenient A&ax Fnmre-Ptcre 

Passengers at London's Heathrow airport making the best of it Wednes- 
day as they were stranded on the first day of a British Airways strike. 

Calls From Clinton Aide 
Helped Huang Get Hired 

Fund-Raiser’s Former Boss Testifies to Panel 

CvtpUfdty Oar Sug Fran DuptBehn 

WASHINGTON — The Democratic 
Party’s former finance director testified 
Wednesday that two calls from Pres- 
ident Bill Clinton’s deputy chief of staff 
prompted the party to hire the fund- 
raiser now at the center of a campaign- 
spending Investigation. 

In Madrid, where he was attending a 
NATO summit meeting, Mr. Clinton ac- 
knowledged that he, too, may have put in 
a word for the fund-raiser. John H uang, 

Richard Sullivan, the opening wit- 
ness of the Senate Governmental Af- 
fairs Committee hearings, testified that 
he had had reservations about Mr. 
Huang’s lack of professional fund-rais- 
ing experience before going to work as 
the Democrats' chief mnd-raiser in tbe 
Asian-American community. 

’ 'He did not have any experience on a 
fulltime basis.” Mr. Sullivan said. 

Meanwhile, the chairman of the Sen- 
ate committee announced that Attorney 
General Janet Reno had told him she 
opposed granting immunity 10 Mr. 
Huang, who has offered to testify if 

granted immunity from prosecution for 
some areas of his testimony. 

The hearings, which may continue 
through the summer and into the fall, are 
giving Americans an unflifered look in- 
to a campaign financing system that 
raised hundreds of millions of dollars, 
some of it illegally. 

But it is far from clear whether the 
inquiry will find evidence of wrong- 
doing by the White House, undercut the 
president's current second-term pop- 
ularity and promote reform, or whether 
it will simply melt away in Washing- 
ton's summer heat and broad indiffer- 
ence outside the capital. 

Mr. Sullivan said he had insisted that 
Mr. Huang receive extensive training 
about the legalities of fund-raising be- 
fore he started as a Democratic vice- 
finance chairman, and that he had told 
Mr. Huang to “be careful on that 
front.” Bat he said he never had any 
concerns that Mr. Huang would raise 
illegal foreign money. 

See PROBE, Page 6 


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Hong Kong Council Orders Children Out 

Hong Kong's new appointed leg- 
islature voted Wednesday to deport 
hundreds of children who immigrated 
to the special administrative region ii- 

* 11 .. j* 

iwyers and human rights cam- 
paigners condemned the raw, espe- 
cially because it was made retroactive 
to July 1, the date Beijing resumed 

control Critics said it violated the Ba- 
sic Law, foe mimeonsti ration that gov- 
erns Hong Kong. 

During foe session, in which foe new 
body met for foe first time in foe co- 
lonial council chambers, vanquished 
former legislators looked on powerless 
from the public gallery and protesters 
outside played funeral music. Page 4. 


Are Hong Kong's Dolphins Doomed ? 



U.S. Economy h Ending the Deficit 


Page 10. 


Pages 18-19. 

| The IHT on-line | 

Rwanda Concedes 
It Led Zaire Rebellion 

Rwanda’s defense minister and vice 
president acknowledged foal his army 
had played tbe leading role in the drive 
to overthrow Mobutu Sese SekO. the 
dictator of Zaire. Paul Kagame said 
that Kigali had planned and directed 
the rebellion. Page 7. 

The Dollar 

NuhYqA Wednesday prowousdasa 

DM 1,7603 1.7611 

Pound 1.6668 1.688 







S&P 500 


change Wednesday • A P.M, previous dose 






6 Pinky 5 vs. Pollution / An Environmental Battle 

Hong Kong’s Dolphins Facing Extinction 

By Velisarios Kattoulas 

fntcrnuriuihjl Herald Tribune 

H ONG KONG — Pinky the 
dolphin is nearly every- 
where. On stamps, post- 
cards, T-shirts, carnival 
floats, giant neon signs and all kinds of 
other memorabilia celebrating Hong 
Kong's return to China. Pinky bobs, 
weaves and grins like a small child. 

The only place one might struggle 
to And Pinky, as schoolchildren here 
call the pink dolphins found in the 
waters west of Hong Kong, is in the 
dolphins' natural habitat. There, toxic 
industrial waste, untreated human ex- 
crement filled with disease-causing 
bacteria, overfishing, passing jetfoils 
and construction have driven the pink 
dolphins to the brink of extinction. 

In the pasr decade, the population 
of pink dolphins has been almost 
halved — to just over 100 — and up to 
10 dolphins a year wash ashore dead 
around Hong Kong, environmental- 
ists say. 

Moreover, in the past two years, the 
washed-up carcasses have included 
those of all the foals known to have 
been bom, leaving the pink dolphin 
closer to extinction than China's giant 

When the government adopted the 
pink dolphin as an official mascot for 
the celebrations to mark the end of 
more than a century of British rule, 
environmentalists were both bemused 
and a little optimistic. 

Bemused, because to save the dol- 
phins the government would need to 
take into account for the first time the 
environmental impact of the un- 
checked development that has made 
Hong Kong rich. Optimistic, because 
the government might at last have 
taken the dolphins' steady demise to 
heart and joined the battle to save 

But many environmentalists say 
the government was only interested in 
using the caricature of a grinning dol- 
phin to bolster the tumour at its hand- 
over celebrations, 

“It's ironic they chose it as a mas- 
cot, because the dolphins are dying," 
said Bill Leverett. founder of Hong 
Kong Dolphrawatch, a company that 
organizes dolphin-spotting tours to 
help raise awareness about their 
plight. "But then, I guess everything 
jsoying in Hong Kong except maybe 
the cockroaches." 

In the past half-century, Hong 
Kong has transformed itself into one 
of the world's richest cities. At the 
same time, it has an unenviable en- 
vironmental record. Air and noise 
pollution are dire and getting worse, 
although it is the chronic water pol- 
lution that has hit the pink dolphins 

Despite its wealth, Hong Kong’s 

treatment facilities for both human 
and industrial waste are on a par with 
some of the poorest nations in Africa. 
In theory, solid human waste is broken 
up at primitive Altering plants before 
being pumped, untreated for disease- 
carrying bacteria, into surrounding 
waters. But sightings of raw human 
sewage in the sea are not uncommon. 

Industrial sludge Ailed with pois- 
onous chemicals is chopped into pits 
dug into the sea bed ana covered with 
a layer of clean mud to stop the chem- 
icals from seeping into the food chain. 
But there is disagreement about 
whether this works and about the 
amount of toxic waste that escapes 
into the sea. 

The waters around Hong Kong 
have also been sullied by pollutants 
tossed into the Pearl River as it winds 
its way through southern China on its 
way to the sea, northwest of Hong 
Kong. Although the fertilizer DDT, 
which weakens the immune system of 
humans and other mammals such as 
dolphins, has been banned in China 
since 1980. environmentalists still 
And traces of it in water samples taken 
from the Pearl River estuary. 

* ‘Given the level of development in 
Hong Kong and the level of affluence 
in it. there is no excuse for the low 
priority given to the environment," 
Anne Dingwall, Greenpeace Interna- 
tional's top official in Hong Kong, 
said. "If I was the administration, I 
would be ashamed." 

In its own defense, the government 
insists the situation is less grave than 
environmentalists contend, and says 
it has increased spending dramatical- 
ly in the past half-decade to protect 
the environment Either way, all but 
the bravest bathers deserted the once 
pristine beaches to the west of Hong 
Kong a decade ago. 

By contrast, the pink dolphins, 
thought to be a subspecies of the 
Chinese White dolphin found only in 
Hong Kong and Xiamen, in mainland 
China, stayed because they had no 
choice. They are estuary dolphins that 
prefer brackish waters like those west 
of Hong Kong where river and sea 
water mix at the mouth of the Pearl 
River. They cannot live in fresh water 
or in the open salt-water sea, like most 
other species of dolphin. 

The first written record of the pink 
dolphin dates to the 16th century. But 
few people in Hong Kong had heard 
of them before the late 1970s, when 
the government first proposed build- 
ing a second airport west of urban 
Hong Kong on Lantau island, the 
southern perimeter for the dolphins’ 
year-round habitat. 

Studies on the dolphins conducted 
since then have produced conflicting 
results. Some have found that water 
pollution has contributed directly to 
their demise by weakening their im- 

In a decade, the population of pink dolphins in Hong 
Kong’s waters has been nearly halved, to just over 100. 

mune systems and making them more 
susceptible to illness. 

Noise from passing jetfoils, which 
race from Hong Kong to Macau and 
back every 15 minutes, and from the 
construction of the new airport have 
also hurt the dolphins, some studies 
say. They contend that the noise 
drowns out the high-frequency sounds 
that dolphins use to communicate 
with one another and to find food. 

Over-flshing may have hurt the 
dolphins by depleting their food sup- 
plies. Some have also become trapped 
in fishing nets and ended up on sale in 
Ash markets, hanging upside down 
from hooks skewered through their 
flippers, environmentalists say. 

But other studies using different 
research techniques have found that 
the decline in dolphin numbers is not 
directly attributable to any of these 


N ANY case, the main goal for 
environmentalists is to save the 
dolphins before they disappear al- 
together, rendering the cause-and-ef- 
fect debate academic. 

Four years ago, a pink dolphin 

sanctuary was established in the heart 
of their habitat. But it is too small to 
save the species, and jetfoils and fish- 
ermen continue to cut through the area 
despite restrictions, environmental- 
ists say. 

To raise awareness of the dolphins' 
plight, environmentalists have also 
courted the local media. Nowadays, 
whenever a dolphin carcass washes 
up on the shore, its image is splashed 
across television screens and news- 
papers, increasing pressure on the 
government to clamp down on in- 
dustries that threaten the dolphins. 

But few environmentalists expect 
the new government of Tung Chee- 
hwa to save the dolphins. 

"We have an unelected legislature 
almost completely representing the 
interests of big business,” said Gavin 
Coates, an environmentalist, cartoon- 
ist and author who illustrated and 
wrote "Pinky the Dolphin," a book 
for children. 

"It is hard to see the government 
being more sympathetic to the plight 
of the dolphins,* ’ he said. "I doubt the 
government would curtail develop- 
ment interests to save the dolphins." 

Moi Keeps Foes at Bayi 

Kenya Opposition Seems Disorganized ! 

Britain Reinforces Ulster Garrison 



BELFAST — Five hun- 
dred more British troops are 
being sent to Northern Ireland 
to help fight a tideof violence, 
security officials said Wed- 

They said the troops would 
be used to combat terrorism 
and join 18,000 British sol- 

diers already in the province. 
An army spokesman said the 
additional hoops would ar- 
rive within 48 hours. 

In London, meanwhile. 
Prime Minister Tony Blair 
pledged not to give np the 
search for peace in Northern 
Ireland, which was still reel- 
ing from nights of riots, and 

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he came out in support of his 
beleaguered Northern Ireland 

‘‘I am not going to give 
up," Mr. Blair said in Par- 
liament *‘I am going to 
cany on searching for a solu- 
tion and 1 believe if there 
were true good will on all 
sides and a little bit of give 
and take and understanding 
a solution could be found." 

Mr. Blair supported North- 
ern Ireland Secretary Marjorie 
(Mol Mowlam in her attempts 
to avert conflict saying she 
had negotiated in good faith 
and praising her for her * ‘cour- 
age and determination.” 

Ms. Mowlam has been crit- 
icized by Irish nationalists for 
allowing a Protestant Orange 
Order parade to march Sun- 
day. The march ignited nights 
of rioting by Catholics. 

Sabena 5 s Latest: 
Brussels - Toulouse 

TOULOUSE, France (AFP) — 
The Belgian airline Sabena says it 
will offer twice-daily, round-trip 
flights between Toulouse and Brus- 
sels beginning in September. The 
airline said the move was part of its 
plan to create a truly European net- 
work of flights. Sabena already 
flies to Lyon, Bordeaux and Nice. 

Most national museums in 
France will remain open on July 
14, the French holiday known as 
Bastille Day, except those that are 
traditionally closed Mondays, the 
government said. (AFP) 

A British man was gored in the 
forearm Wednesday during the 
third day of the running of the bulls 
at the San Terrain festival in 
Pamplona, Spain. Derek White, 
28, suffered a minor wound. (AP) 

By James C. McKinley Jr. 

New York Times Service 

NAIROBI — By violently crashing 
pro-democracy demonstrations across 
Kenya on Monday, President Daniel 
arap Moi has gambled that opposition 
leaders seeking to rewrite the nation's 
constitution do not have enough popular 
support to weather a brutal police cam- 
paign against them. 

He is also wagering that the Western 
powers will not abandon him just be- 
cause his police tear-gassed and clubbed 
hundreds of protesters demonstrating 
peacefully to dilute the powers of the 
presidency and increase civil liberties. 

Mr. Moi's calculation appears based 
on the notion that the opposition is too 


disorganized and splintered along eth- 
nic lines to present a viable alternative 
to his government, even if its human- 
rights record is less than perfect 

He is probably right on both counts, 
political experts and diplomats said 

On Monday, nine people were killed 
in clashes at rallies across the nation in 
the worst political violence since 1991. 
when a series of similar protests Anally 
persuaded Mr. Moi to end the one-party 
state and allow multiparty elections. 

The police hardly needed to scatter 
the protesters with such force. After 
weeks of dire official warnings to cit- 
izens not to attend the rallies, the or- 
ganizers did not draw the huge crowds 
they had hoped for. Most of die rallies 
planned in 56 towns attracted less than a 
thousand demonstrators. 

Abroad, the response to the mayhem 
was muted Several Western diplomats 
issued statements Tuesday deploring 
the violence on both sides and urging 
the government to talk to the opposition 
about its demands. 

In Washington, Nicholas Burns, the 
State Department spokesman, said the 
violence was inspired by Kenya's "fail- 
ure to take the essential concrete steps to 
create a free and fair electoral climate." 

But no country made mention of 
more palpable pressure, like cutting off 
Kenya's lifeline of low-interest loans 
from the International Monetary Fund 
One reason is a fear of taking sides in the 
elections that Mr. Moi must call before 
the end of the year. Mr. Moi says he is 
willing to appoint a commission to con- 
sider amending the constitution, but not 
until after the voting. 

The streets of Nairobi and other 
towns returned to normal during the 
day, but as darkness fell Tuesday night, 
students clashed with the police near the 
Nairobi University campus and gunfire 
was heard. 

For most of the day, however, busi- 
nesses reopened and the roads were full 
of traffic, despite the heavy presence of 
paramilitary police. Many workers re- 
turning to their jobs Tuesday said that 
while they supported the protesters, 
they were weaiy of the looting and 
violence attending the demonstrations. 

“It does worry us,” said Joseph 
Kwasi, 43, a shop clerk. “We have 
children at home, and we have to worry 
about them. The protesters are fighting 
for their rights, and this is what most 
Kenyans need, but the problem is, once 
the violence starts there is no boundary. 
Anybody can be faurL" 

Opposition politicians and human 
rights advocates vowed Tuesday to step 
up their campaign of civil disobedience 
after a period of mourning for those 
killed. Police officials, however, said 
that it was unlikely that demonstrators 
would turn out in large numbers. 

One problem for the opposition is that 

the violence has alarmed many middle^ 

up protests 
months, the demonstrators .i— 
ranks swelled by college students flnggy ;ji 
about high tuition costs — have tamed: 
quickly to looting and s toningrx>Ms^ ^ 
“A lot of people in -the middtee^ssK| 
are getting, I think, disillusioned- wfefaX? 
the fact that none of .this rioianbc’tf ' 
achieving any of its objectives, 

Anthony Nzuya, a businessman L — 
the capital. “The way to get th^ens^ti 
forms on the table is not through 
violence." •:> • 

Mr. Moi has skillfully exploited jfUse.1-'/ 
fears, repeatedly portraying the-oppor.' 
sition leaders as bent on sowing anarchy >.3 
and violence. Thus he has - 
sidestepped the fact tbat poIteeia%/^ 
been brutal. 

In addition, there are some cractjjji;- 
within the coalition of churches,, ^.v- 
man-rights groups and opposition pax^. r 
leaders who are pushing for refonnsi- : 
While the clergy and rights advocates!} 
are trying to roll back repressive- laws:!, 
limiting civil liberties, the oppositions \ 
politicians want to change • dectoi^I; } 
rules in the constitution mat 
hard for them to win. • , . ., **• 

For instance, one proposed amer^UQ 
meat would require a presidential can- - 
didate to get a simple majority, affhee 
run-off election. 

Mir. Moi, who comes from' a 

group, got about 38 percent of, th^ - • / ] 
popular vote in 1996. He won- anl^ ; • 
because most of the Luo and. Kflcnyu .V ; 
were split along ethnic tines amon^/';: 
three candidates. 

Mr. Moi has other eirormousadvanU. .i 
ages the coalition wants to' ehd. Htj . : 
controls the official radio ahdtelew..;.; 
sion. The electoral commissitin, which 
registers voters, is stacked with! his 
pom lees. Security laws left from 
British colonial era give him sweq _ _ 
powers to detain political enemies &nd 
break up public meetings and- protests. r;’y ; 

Many Reported Hurt ] . j 
As Riot Police Qose r 

University of Nairobi 

Compiled brO&Suff From Dbptarhes ~ \ . 

• NAIROBI — Police surrounded - a : V 
university campus and used tear gssjav> 
prevent students from marching dowu-J 
town Wednesday to demand democratic 
reforms and mount those killed in earli-I : J 
er riots. Hours later, the authorities . . 
closed the University of Nairobi. . 

Witnesses said scores of studimts woe ; * 
wounded at the main campus as' heavily . * 
armed riot police moved in to enforce the 
closure, breaking down doors, looting %■ . 
and vandalizing student rooms. 

Students carrying books and suit- 
cases sniffed with their belongings • . 
funneled out of dormitories and : 
classrooms between flanks of riot police 
armed with AK-47s and clubs. • 

Vice Chancellor Francis Gichaga 
said the move was caused by the risii 
tensions on the main campus, a 
point for reform demands in Kenya. 

The students had planned to march 
a mortuary where they said some col-- - • 
leagues lay dead after being shot by--‘ 
police during reform rallies Monday! ' 
When students attempted to leave the r 
campus, which is next to a police sta- ■■ 
tion, riot police beat them back. . *K - 
Mr. Gichaga said one student died of - 
head injuries and another in a hit-and- 
run accident Monday. Five students and . 
a staff member were hospitalized with 
injuries, he said. (AP, Reuters y 

The Zu^uifpt 
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Forecast for Friday through Sunday, as provided by Accu Weather. 


North America Europe Asia 

Sunny and nice in me Sunny and warm in Scan- Hot and dry with sunshna 
Northeast through the dlnavta through the week- across much of northern 
weekend. Cool, damp end. but cloudy, damp and China to Seijtog. Drenching 
weather win a Rod much of coot across much of east- ram will continue across 
the Maritime Provinces ol ern Europe, including southeastern China luat 
Canada. Hot and dry with a Moscow. Coaler weather north ot Hong Kong to 
good deal ol sunshine from win return to London and Shanghai. A few thunder- 
the Southwest to the Mid- the British Isles Friday storms wifl affect Seoul Fn- 
wesu but heavy thunder- through Sunday, but very day through Sunday, with 
storms will traverse the warm weather will continue past a tew showers n can- 
northern Rockies and the In southern Spain and tral Japan, including 
southern Italy Tokyo 


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at Bay 


has alarmed many ^ , 
ns who might orh^ 
■Each time 
protests ia the 
demonstrators . 

i by college student* ■ 
uoon costs — have h. n ®! 
ptmg and stonirjo 1*** 

PSPttate mSSK, 

1 think, disillus.oned d 
none of this vioul 

>y of ns objectives " lc ’> 

W a businessman ^ ^1 

- T^way to get 

table is not through 



Economy Quietly Cuts Deficit as Politicians Bicker 


. Chandler 
and Eric Pianin 

Washington Post Service 

way i»jB 

1 ‘‘Ifi.'a 

as skillfully explo 1[e ,j jh 
edly portray in a the ■ • 
i as bent on so w i ns an - 1 ^ 
e. Thus he hi Kb ‘ 
tbe fact that polic/'j^ 

n, there are some a , . 
ttahtion of churd *, k 
roups and opposition n.~ 
are pushing f or ref. 5?' 
^ and rights adv^? 
rollback repress! v^j^' 

1 liberties, the r.npj? 
vant to change Sjf 
constitution that „ u { fj 
a to win. * L 

lCe ' ? ne Proposed 
require a presidcim.,| ( J : 
a simple major ii\ „ r . ' ‘ 
ion. ' 11 - 

who comes from a jrn , ; 
.SO! about 38 percent., 

: m i996. He £ 
it of the Luo and Kiku ■ 
J°og ethnic lines jrnor ; 
ites. - 

as other enormou , advam. 
alition wants i.t cn j ^ 
official radio and t. : -[ ex 
ictoral commissi. in. why 
srs, is stacked wnh his an. 
curily laws left u f , m J 
lial era give him >v, t cpu« 
:tain political enemies aru 
ilic meetings and proiesi . 


leported Hurt 
t Police Close 
sity of Nairobi 

TtfM ‘Mr sajp'Fr, 

[ — Police surr.iundd j 
impus and used ie.»r cus io 
ents from marching jnwn- 
sday to demand acni.xrauc 
mourn those killed mearli- 
mrs later, the juth.-mic- 
niversity of Nyir.'M 
said scores of «:u>knM»rit 
he main campu> hra-.ih 
ilice moved in to em> Tv c the 
ikin g down d«-*r*. I.tonrd 
ing student room- 
carrying book'- -<nd ••till- 
'd with their Moiieiitp 
ut of domuten;* and 
KJtween flanks ol n.-i pf'liw 
AK-47s and club* 
vncellor Franci- Oichaca 
-e was caused b> the mil? 
the main campus, j 
arm demands in Kent j. 
nts had planned if» march u- 
where they said ^ 
dead after berni! >bii b 
g reform raHic* NLinoa} 
nis attempted to fe:i« iw 
ich is next to a police ' l> 
ice beat Uiem b.iL-k 
iga said one studeni di™‘ ! 
i and another in a hii-an^ 
Monday. Five «iudenis-^ 
her were hospindu'^' 

-. WASHINGTON — As President 

Bill Clinton and Congress gear up thi^ 
-week for final negotiations to close a 
balanced budget deal, some fiscal ex- 
perts are warning that the strong U.S. 
economy threatens to erase the deficit 
before Washington can claim credit for 
eliminating iL 

- • In what could prove a public relations 
nightmare for Democrats and Repub- 
licans eager to boast about bringing 
Spending and revenue into line for the 
first time since 2969, the economy's 
sustained vigor has generated an un- 
expected stirge in tax receipts that could 
wipeout the deficit as early as next year 
without any change in federal 

1- Administration and congressional of- 
ficials mid Tuesday that ajumpig tax es 
flowing into the Treasury in June sug- 
gests that, in the fiscal year ending SepL 
30, the deficit — the annual difference 
between what the federal government 
spends and what it collects in revenue 
— - may foil to as low as $45 billion. 

That figure would have only a slight 
impact in slowing growth of die national 
debt — the federal government’s cu- 

mulative borrowings — which over ihe 
years has swollen to more than $5.4 

But it would be a sharp drop from the 
$67 billion deficit Mr. Clinton and the 
Congress had predicted for fiscal 1997 
in their May 1 budget agreement, and 
about a third die size of the SI 26 billion 
deficit the administration had forecast in 
February. It also would be less than a 
fifth of the deficit's S290 billion peak in 

Just two months ago, Mr. Clinton and 
the Republican leaders were congrat- 
ulating themselves on reaching what 
they billed as a historic agreement on 
the outlines of a tax and spending plan 
that would result in balancing the 
budget by 2002. 

But many economists now say that 
goal is already within shouting distance 
— and probably could be attained much 
faster if the politicians would only keep 
on bickering, thereby precluding the 
passage of tax and spending proposals 
that are expected to push up the annual 
deficits over the next several years. 

“I’m predicting a balanced budget by 
next year, but only if there's no budget 
deal," said Kun Karl, chief economist 
at WEFA Inc., a forecasting company in 
Pennsylvania. “One more year of grid- 
lock and we're home." 

Bill Dudley, chief economist at the 
Wall Street investment bank Goldman 
Sachs & Co., said that with incomes 
rising and more investors paying taxes 
on their gains from the sale of soaring 
stocks. Treasury revenue is likely to 
continue rising. “That could bring us 
pretty dam close. ' ’ he said. 

Budget negotiators view the Treas- 
ury's windfall as a mixed blessing. The 
extra revenue means a balanced budget 
could be achieved with fewer painful 
spending reductions and more popular 
tax cuts. But negotiators also worry that 
the recent flurry of good news could 
breed complacency just as the two-year 
struggle over tax and spending priorities 
has reached its most delicate phase. 

One sign of that concern: Republican 
leaders in Congress have urged the Clin- 
ton administration to postpone the re- 
lease of a regular midyear report by the 
Office of Management and Budget at 
the White House. 

“We would probably prefer to com- 
plete this work under the current es- 
timates and get it done," the House 
majority leader, Richard Armey, Re- 
publican of Texas, said Tuesday. 

The White House seems happy to 
oblige. Lawrence Haas, spokesman of 
the Office of Management and Budget, 
said it made no sense to allocate re- 

sources “to complete a report that we 
believe could be out of date within three 

Such reserve from an administration 
that is usually eager to trumpet good 
economic news has prompted critics of 
the budget negotiations to cry foul. “If 
we did nothing," said Representative 
Edward Marfcey, Democrat of Mas- 
sachusetts, “die budget would balance 

But many economists dispute the no- 
tion that Washington can coast to a 
balanced budget without further legis- 
lative effort. 

“There is a set of circumstances that 
could produce a zero deficit in 1998 or 
1999,” said a former Congressional 
Budget Office director, Robert Reis- 
chauer. "But that's like planning to 
draw four aces." 

Sung Won Sohn, chief eco: -must at 
Norwesi Carp, in Minneapob 'diets 
there will be annual budget dt jus “in 
the $75 billion range" throughout the 
rest of the century in die absence of 
policy changes and warns that a re- 
cession could send deficits shooting 
back upro$150bilht . 

“The business eye ■ hasn't been re- 
pealed," be said. “We should not make 
the mistake of assuming today's good 
times will continue into eternity." 




’ Token Love: New Yorkers 
Cling to ‘Thing of Beauty 9 

New Yorkers just can't seem to 
, break the habit. Despite the introduc- 
; don three years ago of a seemingly 
‘ . reasonable new system of payment for 
. bos and subway rides known as the 
|_. Metrocaid, they have refused to give 
. up on that cultural currency, that sym- 
bol of simplicity known as the token. 

Only in recent weeks have more 
than one -fifth of riders begun to use the 
computerized card. And this, largely 
because it now cah be used for free 
transfers between bus and subway, 
something the token — a small bronze- 
colored coin with a pentagonal cutout 
in the center — cannot. 

The Metropolitan Transportation 
Authority, which has spent $700 mil- 
lion developing and marketing the 
)-' Metrocaid, may be waging an uphill 
battle, but it has the weapons. 

In Janusy, it plans to begin offering 
volume discounts, 1 1 rides for the 
- price of 10, for Metrocaid users only. 

The transit authority reckons that 
raw calculations of value for money 
will then outweigh New Yorkers’ love 
affair with the token, which it hopes to 

But New Yorkers love their tokens, 
which over the years have become a 
form of underground currency, left as 
lunch-counter tips or dropped in pan- 
handlers' tin cups. 

The token's greatness lies in its sim- 
plicity. said Joseph Rappaport, 
spokesman for the Straphangers Cam- 
paign, a transit watchdog group. 

' “The token is a thing of beauty,’ ’ he 
said, “not only because it's a symbol 
of the city, but also because it’s pretty 
much worked since it was introduced 
in 1953. 

' ‘There's not all that many things that 
you can say that about in New York." 

Short Takes 

The U.S. Army has slashed beer 
rations for the 37.000 American 
noops in South Korea, and U.S. brew- 
ers are stewing. 

The object of the cut is to fighi black 
market resales, a widespread practice. 
GIs have long been able to buy 30 
cases a month at their base PXs, for a 
mere $12 a case. That is being cut to 
eight a month — still more than a six- 
pack every day. 

But brewers say the policy is costing 
them millions of dollars, and they fear 
it may be extended beyond South 

Politicians are joining the fray. “I 
don’t like to see our troops over there 
not able to buy American beer that’s 
important to morale,” said Represen- 
tative Herbert Bateman, a Virginia Re- 

One army private in South Korea 
told The New York Times that morale 
required at least a 12-pack a day. 

After instant tests for pregnancy, 
the HIV virus and more, a new test 
will allow quick and easy determi- 
nation of paternity. 

By dialing 1-800-DNA-TYPE, the 
curious can order a test requiring only 
swab swipes from the mouths of father 
and child Samples are mailed to a 
company in Houston that analyzes 
them and sends back results within a 
week. A match means a 99.9 percent 
certainty that a man is the biological 

With courts increasingly demand- 

ing that fathers pay for their children’s 
upbringing and welfare departments 
under new pressure from government 
to establish paternity and make fathers 
support their biological children, the 
tests appear to have a ready market. In 
some urban areas, out-of-wedlock 
births now exceed 60 percent of the 

For the fifth straight year, Amer- 
ican cities report they are enjoying 
improved fiscal health, according to a 
survey by the National League of Cit- 
ies. Even cities hard-pressed not so 
long ago, like Detroit and Cleveland, 
are reporting mini-booms in residen- 
tial construction in their centers. In ail, 
56 percent of cities said they were 
increasing their capital spending, and 
36 percent were increasing their work 

The shape of a newfy opened mu- 
seum on the Strip in Las Vegas says 
it all. The Coca-Cola Co. has just 
opened the new 100-foot-tall building 
— shaped Uke a glass Coca-Cola 
bottle. The museum features exhibits 
on the company's history and a foun- 
tain. incorporating 1,000 Coca-Cola 
bottles, that pulses to music. 

Brian Knowlton 

What Did Jones See? 

WASHINGTON — After more 
fhnn three years. President Bill Clin- 
ton's lawyers in the Paula Jones Corb- 
in case are finally asking the question 
that has perplexed observers since the 
beginning: What ' ’distinguishing 
characteristics" does she claim to 
have seen on the president's body? 

in a set of interrogatories sent to 
Ms. Jones last week, the Clinton legal 
team requested a copy of an affidavit 
she signed describing the physical 
traits she said she noticed when Mr. 
Clinton, then governor of Arkansas, 
allegedly exposed himself to her in a 
Little Rock hotel room. (WP) 

i.r**p UiIm4s*IV ntid IVr# 

George Tenet of the CIA. 

CIA Hurdle Cleared 

WASHINGTON — The Justice 
Department has told several leading 
senators that it has concluded its in- 
quiry into die personal finances of 
George Tenet, clearing the way for him 
to be confirmed by the Senate as the 
next director of the CIA. 

The confirmation had been delayed 
while federal investigators examined 

the failure by Mr. Tenet to disclose 
ownership of hundreds of thousands 
of dollars wonh of stock and property 
that he said he only recently learned 
he had inherited from his father, 

Tuesday, the ranking Republican 
and Democratic members of the Sen- 
ate Intelligence Committee said they 
had been told by Seth Waxxnan. the 
acting deputy attorney general, that the 
department would not seek the ap- 
pointment of an independent counsel 
to investigate Mr. Tenet's finances. 

The decision effectively closes the 
case against Mr. Tenet, who was 
nominated to be CIA director in 
March after the former national se- 
curity adviser Anthony Lake with- 
drew his nomination. (NYT) 

Kennedy Probe Ends 

BOSTON — The authorities have 
halted an investigation into allega- 
tions that Michael Kennedy, a son of 
the late Senator Robert Kennedy, had 
sex with his children's baby-sitter 
when she was under age. 

The Norfolk County district attor- 
ney, Jeffrey Locke, said at a news 
conference Tuesday that he had ended 
the statutory-rape investigation, at 
least for now, largely because the 
baby-sitter, now a 19-year-old stu- 
dent in Boston, had refused to aid in 
the inquiry. The investigation began 
in April after The Boston Globe re- 
ported that Mr. Kennedy, 39, had an 
affair with the baby sitter, possibly 
beginning when she was 14. Mr. 
Kennedy has noi commenred on the 
allegations. (NYT) 

Quote /Unquote 

Senator Max Cleland, Democrat of 
Georgia, at the Senate campaign 
funding hearings, quoting in part the 
comedian W.C. Fields: “It is time to 
take the bull by the tail and face the 
situation. There are ‘For Sale* signs 
on both ends of Pennsylvania Av- 
enue.” (NYT) 

Away From 

• A bride of 12 hours, Susan Laatz 

Mangan of Indiana was climbin • (he 
stairs to her honeymoon suite nen 
the 24-year-old collapsed into f - 
husband's arms and died, possibly A 
a heart attack. f API 

• The head of the nation's largest 
black church denomination. Henry 
Lyons of the National Baptist Con- 
vention USA, is embroiled in alle- 

gations of adultery after the arrest of 
his wife this week for setting fire to a 
Florida mansion jointly owned by her 
husband and another woman. ( WP) 

• Many of the benefits available to 
married people in Hawaii are being 
offered to gay couples, siblings and 
roommates under a law enacted to 
head off homosexual marriages. (API 

• A man accused of sparking a Cali- 

fornia brush fire with illegal fire- 
works has been charged with murder 
in the death of a helicopter pilot who 
died fighting the blaze. (AP) 

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U.S. Avoids Halting Cambodia Aid 

Washington Works With Allies to Step Up Pressure on Hun Sen 

By Steven Erlanger 

Rev fori Times Service 

WASHINGTON — After hesitating 
a day, the United States has condemned 
Cambodia's second prime minis ter. 
Hun Sen. for using force to oust a rival 
from government, but it stopped short of 
cutting off $42 million in aid to the 

A rut* Fdimrs/Rraim 

Hun Sen and guard in Phnom Penh. 

Instead, die United States is working 
with Asian allies to coordinarejjressure 
on Mr. Hon Sen to remove his troops 
from the streets and peacefully resolve 
' the crisis with his opponents. 

As the major power behind the 1991 
Paris accords that ended decades of war 
in Cambodia, the United States is in a 
critical position to help develop a con- 
sensus that could prevent further blood- 

But no one country holds a lever 
powerful enough to budge Mr. Hon Sen, 
officials say, and a joint response, which 
may yet include cutting off aid, would 
be more effective. 

“Ourposidon is that the overthrow of 
a duly constituted democratic govern- 
ment by military means is unacceptable, 
and we made that point strongly to the 
Cambodian ambassador here and at the 
United Nations,” a senior American 
official said, “We want- to send a mes- 
sage to Hun Sen that we don't accept the 
legitimacy of what he's done and don't 
want to see another dictatorship emerge 
in Cambodia under the fig leaf of a 

Mr. Hun Sea’s forces have begun 
arresting political opponents, and at 
least one has been killed. 

The first prime minister. Prince Noro- 
dom Ranariddh, left Cambodia for 
France on Friday, before two days of 
fighting that led to Mr. Hun Sen claim- 

ing full power. The two men had been 
sharing power uneasily since a 1993 
election tun by the UN. 

After saying little about the situation 
in Cambodia on Monday, the Stale De- 
partment spokesman, Nicholas Bums, 
on Tuesday expressed “strong oppo- 
sition to the use of force to change the 
results of the 1993 election and the use 
of force by the forces of Hun Sen to 
effectively rupture the Paris accords of 

But Mr. Bums refused to call the 
events in Cambodia a “coup,” appar- 
ently because U.S. law requires the im- 
mediate suspension of aid if an elected 
government is overthrown. 

While defending the right of Prince 
Ranariddh’s party to operate freely in 
Cambodia, other American officials 
said it would be unrealistic to require his 
return to office, given the antipathy be- 
tween the two meo. 

One official also said Prince Ranar- 
iddh had been '‘playing with fixe” in the 
days before he left Cambodia by trying 
to secure the political and military sup- 
port of the Khmer Rouge, his old allies, 
against Mr. Hun Sen. 

Some factions of the Khmer Rouge, 
which governed Cambodia in a time of 
mass starvation, brutality and execu- 
tions in the mid- and late 1970s, have 
been trying to negotiate a return to the 
country's political life. 

Ou Nr^terj/Tlw * 

Singaporean troops conducting a security check at Phnom Penh airport before eva c u atin g their countrymen. 

For now, American officials said, 
they are not ready to suspend aid to 
Cambodia, as Japan has effectively 
done. Instead, Washington is working 
on a coordinated response with the 
members of the Association of South- 
east Asian Nations, the UN Security 
Council and the co-signers of the 1991 

Paris accords — Japan, India, Canada 
and Laos. On Thursday, ASEAN mem- 
bers are to consider delaying Cambod- 
ia’s entry into that group, which was to 
take place this month. 

After consulting with other countries 
Monday, the United States on Tuesday 
enunciated a set of principles on Cam- 

bodia: the use of force to overturn the 
1993 elections is unacceptable; all Cam- 
bodian political parties must be allowed 
to operate freely; Khmer Rouge leaders 
should play no political role; free and . 
fair elections should take place as sebed-i. 
tiled in 1998, and tbe principles of the 
1991 Paris accords must be upheld- 

CAMBODIA: Fear of a Widening Crackdown 


Continued from Page 1 

in, but would keep the mission 
there open, Reuters reported 
from Washington. 

[The State Department 
spokesman, Nicholas Bums, 
said the number of American 
diplomats in the country 
would be reduced to 20 from 
61 because of the “uncertain 
security situation.” He said 
from 1.000 to 1.300 other 
Americans in Cambodia were 
being urged to leave. 

[Mr. Bums said there were 
contingency plans for a mil- 
itary evacuation of Americans, 
but that it was hoped the dip- 
lomats and others could leave 
by civilian transport now that 
flights were being restored at 
Phnom Penh airport.] 

In a well-planned military 

action, Mr. Hun Sen made his 
final move last weekend in a 
sharpening feud with Prince 
Ranariddh while the prince 
was ou a visit to France. He 
declared the prince a traitor 
and said be would be put on 
trial if he returned home. 

The coup ended a bitter 
partnership that was put in 
place by a $2 billion effort in 
democracy-building by the 
United Nations. That effort 
included a democratic elec- 
tion. in 1993, and die insti- 
tution of a model constitution 
that embodied the ideals of 
freedom and human rights. 

About 90 percent of Cam- 
bodians voted in the election 
lite threats of violence, 
apart from a largely cor- 
rupt and ineffectual govern- 
ment. many Cambodians era- 

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niF. WRUrs nuu newsower 

braced with fervor the 
opportunity to build a free so- 
ciety. With foreign help, tbe 
country developed an ener- 
getic and often brave press 
corps, a growing cadre of 
young lawyers and an ex- 
panding number of organiza- 
tions dedicated to fostering 
h uman rights. 

“I foci like this country had 
a real chance,” said a West- 
erner who has spent the past 
four years helping to create 
democratic institutions in 

“People were starting to 
plan a little,” he said. “Cam- 
bodians hadn’t been able to 
plan ahead for 20 years. Now 
they have no confidence in 
the country, no confidence in 
the future. It's hard to ima- 
gine any scenario now in 
which you can restore 

The Cambodian human 
rights worker said he had 
already paid a visit to a local 
military commander and told 
him, “Please help me, and I 
will work with yon.” 

“He said, ‘No problem. If 
something happens, give me a 
call,* ” the h uman rights 
worker said, pulling from his 
pocket a slip of paper mi 
which he had written the com- 
mander's telephone number. 

But he said the sight of 
foreigners fleeing his country 
had brought back memories 
of 1973. when the Communist 
Khmer Rouge, under Pol Pot, 
seized control of the country 
and began a reign of terror. 

North Korean Praise for Kim II Sung 

TOKYO — In what it described as an “important broadcast,” 
North Korean radio Wednesday poured praise on its founding father, 
Kim D Sung, one day after the third anniversary of his death. 

The announcement of the broadcast had fueled speculation of a 
possible political upheaval in North Korea. 

Tbe centerpiece of the broadcasts was a resolution by the power 
groups in the Ownmnnist nation “exalting the great leader comrade 
Kim II Sung's revolutionary life and immortal exploits for all 
ages.” (Reuters) 

More Fighting in South Philippines 

ZAMBOANGA Philippines — More fighting erupted in the 
southern Philippines on Wednesday despite an order by President 
Fidel Ramos for tbe military to cease offensive activity to clear the 
way for cease-fire talks, an army spokesman said. . 

There were no immediate reports of casualties in the clashes, 
which broke out after 100 guerrillas of the Moro Islamic Liberation 
Front shelled an army command outpost in Maguindanao Province, 
said an aimy spokesman. Captain Salih Indanan. (Reuters) 

Australia Is Not Racist, Leader Says 

CANBERRA — Prime Minister John Howard, under fire over 
race issues in recent months, has called for an end to “unreasonable 
criticism” of Australia. 

“I think it is time we called an end to the self-flagellation, the 
introspection, die defensiveness and the willingness to accept un- 
founded criticism, unjustified criticism of the performance of the 
Australian nation,” Mr. Howard said at a Liberal Party dinner 
Tuesday night. (Reuters) 

Manila Puts Off Plan to Cut Traffic 

MANILA — Officials said Wednesday they will postpone a 
tough new plan to limit the number of cars on die roads of 
metropolitan Manila in the face of widespread opposition. 

The police chief superintendent, Florencio Fianza, announced tbe 
lexnent a day after saying the scheme would go into effect 


The proposal would ban private vehicles three days a week in 
Manila from 7 AM. to 7 PM. (A P) 

Hong Kong Legislature 
Votes to Deport Children 

By Keith Richburg 

Washington Post Service 

HONG KONG — Hong Kong's new 
appointed legislature, in its first formal 
sitting in the domed colonial council 
chambers, on Wednesday set about im- 
printing a new vision on society as pro- 
testers outside donned blade headbands 
and played funeral music. 

Vanquished former lawmakers looked 
on powerless from the public gallery. 

During a hectic day marked as much 
by the protests on the streets as the 
procedure in the chambers, (he Provi- 
sional Legislature — taunted by dem- 
onstrators as a “dictatorship” and a 
“tyranny of tycoons” — began the pro- 
cess of undoing laws passed by the last, 
elected chamber and tackling one of 
Hong Kong’s most pressing problems: 
illegal immigration from the mainland. 

The legislature voted to deport hun- 
dreds of children who immigrated here 
illegally from China to join their Hong 
Kong parents. A new law, approved 45. 
to 6, says children who maintain they 
have the right to live here must first 
obtain a government “certificate of ea* 
titlement,” and those who crossed the 
border without ode can be sent back. 

Ah estimated 66,000 children in China 
are believed to have the right to live here 
because at least one parent is a Hong 
Kong resident. Tbe new law most im- 
mediately affects 424 children who sur- 
rendered to the government after the July 
1 handover, saying their right to stay is 
guaranteed under tbe Basic Law, tbe 
mim-coostituticm governing Hang Kong. 

Lawyers and human rights activists 
quickly condemned the legislature’s acf 
non — and particularly the decision to 
make the new residency law retroactive 
to July 1, when Beijing took charge: 
Critics said the new legislature was set- fa- 
ting a dangerous precedent by passing 
laws and making mem retroactive. Say : 
ing that the law violated the right to 
abode guaranteed in die Basic Law, they 
predicted an immediate court challenge. 

Most of the legislators seemed un- 
fazed by the sometimes noisy public 

S o test outside. “I’m used to walking 
rough a crowd.” said Henry Tang, a 
leading industrialist here. “We are a free 
place. I’m very, very pleased to see them 
because it shows that the SAR gov- 
ernment doesn’t restrict free speech.” 

On July 1, Hong Kong became a special 
administrative region of China. 

“The Democrats can say what they 
like — they have freedom of speech,” 
said Elsie Tu, who lost her- bid for elec- 
tion in 1993 but was then appointed by 

China, to the .new panel 

The new legislature also agreed til 
review a series of social welfare laws 
passed in the twilight of the previous, 
democratically elected council. Those 
laws give more power to trade unions; 
expand worker rights, set out new en-' 
vironmental safeguards for Hong Kong'S; 
harbor and give me region's bill of righte 
precedence over all other legislation. -* 
Tbe government of Chief Executive . . 
Tung Chee-hwa had asked the council to -■ 
suspend all the new laws, but the leg-; 
islamre, after some debate, decided to pin: 
off the question of which laws to scrap.-: 

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As NATO Patrols, Karadzic Hides in Plain Sight 

By Chris Hedges 

New York Times Ser. ur 

«><l N»ulurv'|-| v 

ig their countrymen. 

of force to oven urn u,, 
is unacceptable: all rJ 

y. Khmer Rouge [ carfe 3 
> political role; tree Jn ,i 
>ouldtakep| a ,„,„. h ^ 
ind the principle 
ords musi be upheld 

PALE, Bosnia-Herzegovina — The 
pace of the dusty main street in this 
Bosnian Serb stronghold, where be* 
draggled women sit at small tables 
seUing cheap brandy and cartons of cig- 
arettes. quickens for a few seconds most 
mornings when a gleaming dark Mct- 
cedes whizzes through town, followed 
by armed men in Jeep Cherokees. 

Inside sits Radovan Karadzic, the 
Bosnian Serb leader who has been 
'Charged by a United Nations tribunal 
wi:b overseeing the worst atrocities in 
Europe since World War 11. 

As NATO leaders were meeting in 
Madrid to admit new members and dis- 
cuss how to resolve the thorny problem 
of his continued control of the Bosnian 
Serb enclave and his steadfast obstruc- 
tion of the Dayton agreement that ended 
Bosnia’s war. Mr. Karadzicwas parad- 
ing openly around his mountain strong- 
hold like a feudal lord. 

“He works most of the day out of the 
Famos factory at the edge of town," 
said a Bosnian Serb official, who asked 
not to be named. “He comes into town 
to see his wife at the Health Ministry or 
to visit government bouse. At night he is 

in his chalet on the hill meeting with 


It was not supposed to turn out like 

Under the Dayton accord. Mr. Karad- 
zic and the Bosnian Serb commander. 
General Raiko Mladic, who remains in 
.control of the army, were to be sent to 
face trial before the tribunal at The 
Hague. New leaders were to take power 
in internationally administered elec- 
tions. And Bosnia's Serbs. Croats and 
Muslims, now partitioned in three eth- 
nic enclaves, were supposed to set off on 
the road to peace. 

But. while the 31.000-strong North 
Atlantic Treaty Organization force here 
is willing to keep the peace by patrolling 
the partition lines, it has been unwilling 
to run the risk of getting embroiled in a 
manhunt for those, like Mr. Karadzic, 
who arc wanted for war crimes. 

“We tried this in Somalia.” said a 
senior U.S. commander, reflecting the 
prevailing view in the Pentagon, “and it 
didn't work. We don't want to get into a 
conflict with the Bosnian Serbs. It is not 
worth the risk to our troops. ** 

Once this became apparent to the 
Bosnian Serb hierarchy, which has a 
history of responding only to a credible 
threat of force, the lofty script set down 

in the Dayton accord went up in a tiny 
puff of .smoke, 

Mr. Karadzic, a psychiatrist with an 
unruly mop of while hair who considers 
himself an intellectual and a poet, has 
also shown a mercurial and brutal side. 

He is accused by the Hague tribunal 
of overseeing the forces that carried out 
the slaughter of thousands of unarmed 
civilians in Srebrenica in 1995. 

When NATO forces first landed in 
Bosnia in December 1995. Mr. Karad- 
zic and many of his supporters began to 
pack up and plan their escape. 

But the NATO forces, led by Admiral 
Leighton Smith of the United Slates, 
appeared in Pale mostly in the form of 
Italian troops with droopy black feath- 
ers hanging out of their cloth caps. 

NATO patrols often lilerally had to 
look the other way to avoid bumping 
into Mr. Karadzic and General Mladic. 

“There was a moment, right after the 
Dayton agreement, when Karadzic could 
have been seized with little risk to our 
troops." said a senior NATO command- 
er, “hut Admiral Smith let that moment 
slip through his hands, h was a terrible, 
terrible mistake and could have avoided 
many of the problems we face today.” 

The mood in Pale swiftly changed. 
Mr. Karadzic's ability to defy die West, 

as he had done during the war. again 
began to cam him grudging respect. 
Where respect was absent, fear, in the 
form of the police Mr. Karadzic controls 
and pays, took its place. 

Mr. Karadzic soon refused to step 
down as president, and exasperated in- 
ternational officials threatened to ex- 
clude the Serbs from the Bosnian elec- 
tions run by the Organization for 
Security and Cooperation in Europe. 

The elections were carried out in 
September with the participation of all 
sides after Western officials, including 
Assistant Secretary of Stale John Kom- 
blum. quietly passed on the message that 
if Mr. Karadzic disappeared from public 
view ho would be left alone. Western 
diplomats say. When Mr. Karadzic did 
resign, at this time last year. Western 
officials called it a great triumph. 

Mr. Karadzic still holds as much 
power here as the dc facto Bosnian Serb 
leader, so much in fact that he recently 
moved to oust the elected Bosnian Serb 
President. Biijuna Plavsic. 

His acolytes have faithfully obstruc- 
ted every "effort to unite the Serbian 
enclave with the rest of Bosnia. 

Muslim and Croat refugees have not 
returned to homes in die Serbian en- 
clave. The Serbs have blocked the for- 



Biljana Plavsic, the Bosnian Serb 
leader, greets supporters at a rally. 

maiion of a single central bank, failed to 
meet arms control limits and signed an 
economic and military cooperation 
agreement with Yugoslavia. All these 
moves violated the Dayton agreement. 

■ U.S. General Calls for Arrests 

The world community must find a way 
to arrest suspected war 'criminals or risk 
the peace in Bosnia. General John Shn- 
likashvili. chairman of the Joint Chiefs of 
Staff, said in The Hague on Wednesday, 
the Associated Press reported. 

Traffic in Prostitutes: Plight of Newcomers Troubles Italians 



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By Celestine Bohlen 

AW York. Times Service 

ROME — On summer afternoons, 
before the sun sinks behind the pine 
forests on Rome's western edge, a 
dozen or so young African women take 
up their places on either side of a remote 
commuter road, scanning the traffic for 
customers. Then, about 6 P.M., the shift 
changes. The African women leave, 
ceding their spots to transvestites from 
£outh America who stay until the sun 
sets, before moving to the safer glare of 
the city’s lights. 

\ On another commuter artery to the 
*■' south of Rome, two young women from 
Ghana sit perched on a metal traffic 
barrier until two cars pull up, offering 
each a ride. Farther down the road 
stands a 22-year-old Romanian in short 
shorts and a skimpy T-shirt who says 
she is gening ready to give- up pros- 
titution and go back home. 

” ‘Another three months, and then I quit.” 
said die Romanian, who came to Italy 16 
{norths ago. *T have put money aside, 
enough to buy a house ora store. I'm going 
to get married and then I’ll be OJC" 
t . In the last 10 years, street prostitution 
in Italy has undergone a sea change: once 
the last resort of desperate Italian wom- 
en, it is now a reflection of the shifting 

demographics of a country that used to 
see very few foreigners, except tourists. 

And although the volume of immi- 
gration to Italy is still lower than in 
many other European countries, foreign 
prostitutes are a visible reminder that 
this country, once an exporter of emig- 
rants. now has to make room for new- 
comers — including those who earn a 
living on the edges of society. 

“If you look, you don’t see any Itali- 
an prostitutes on the streets because of 
the laws of the market." said Angelo 
Bonnelli, president of a regional com- 
mission on criminality. ‘ ’There is strong 
competition, and foreign women charge 
lower prices. 

There is more to the issue of foreign 
prostitution than the displacement of 
Italian prostitutes, most of whom, with 
the exception of drug addicts, have re- 
treated to apartments and massage or 
sun-tanning parlors. Prostitution is not a 
crime in Italy, but aiding, abetting and 
exploiting prostitutes is, and according 
to recent statistics, such criminal activity 
is increasing. Of the 737 people charged 
with exploiting or abetting prostitution 
in Italy in 1994, up from 285 in 1990, 
one third were foreigners, most of them 
from Eastern Europe.And of the 2.594 
Albanians in Italian jails. 20 percent are 
being held on prostitution-related 

charges, according to official statistics. 

But to many, the most troubling de- 
velopment is the growing evidence that 
as many as 10 percent of the foreign 
prostitutes now working the streets and 
highways of Italy are bound to their jobs 
by fear and by financial obligations in- 
curred when they accepted offers of a 
train or plane ticket, a visa and work in 

Western Europe’s restricted job market. 

“Sometimes men promise them mar- 
riage or tell them they will find work for 
them." said Uvia Turco. Italy’s min- 
ister for social affairs. “But once the 
women arrive, their passport is taken 
from them. Sometimes the women want 
to come to Italy, bu r they can ’t find work 
so they become prostitutes, which is still 

lltriei J-#j«wuTj/JV Nr» Tim*. 

A prostitute working a Rome street. Many are from Albania and Nigeria. 

forced prostitution because it is tied to 
social ostracism." 

Ms. Turco is the prime mover behind 
a clause in the country’s latest immi- 
gration bill that would give illegal im- 
migrants working as prostitutes a 
chance to leave the business in return for 
a temporary residence permit. 

Other European countries are con- 
fronting a similar situation: according to 
one estimate, there may be as many as 
500.000 women throughout Western 
Europe working as prostitutes. Experts 
in various countries. Italy and the Neth- 
erlands among others, have estimated 
that 1 in 10 is a victim of trafficking, 
brought in from one of the dislocated 
economies of Eastern Europe, Africa or 
elsewhere and forced into prostitution. 

In Italy, where the number of street 
prostitutes is estimated at 25,000. most of 
the foreigners come from Eastern Europe 
and sub-Saharan Africa, with concen- 
trations in the region around Rome of 
women from Albania and Nigeria. 

A recent study of 50 foreign pros- 
titutes working in Italy by the Brussels- 
based International Organization for 
Migration found that the Albanians 
were usually recruited informally, 
through relatives or friends, whereas the 
Nigerians were the victims of 3 more 
organized operation. 

Flooding Ravages 
Czech Republic 

PRAGUE — Floods that had 
ravaged pans of the northeastern 
Czech Republic since Sunday 
spread Wednesday to cover a 
quarter of the country. 

Jiri Skalicky, minister for the en- 
vironment, announced at a cabinet 
meeting that estimates of damage to 
bridges, roads and railways had 
reached 10 billion koruny lS3I0 
million). I AFP) 

Germans Accept 
Scientology Ban 

BONN — A court ruled 
Wednesday that Chancellor 
Helmut Kohl’s Christian Demo- 
cratic Union had a right to exclude 
members of the Church of Scien- 
tology from the party. 

The court rejected a claim by 
three Scientologists that the Chris- 
tian Democrats had violated their 
right to freedom of religion by ex- 
cluding them. ( Reuters ) 

Who Owns Looted 
Art Treasures? 

AMSTERDAM — Amid linger- 
ing concern over unclaimed assets 
of Dutch victims of the Holocaust, 
the government will investigate 
whether thousands of artworks, 
once plundered by Nazis and now 
in state archix'es. belong to Jewish 

The investigation will focus on 
3,700 paintings, including works 
by Monet. Van Gogh, Rembrandt 
and Rubens, most of which were 
looted by Nazi soldiers during their 
World War D occupation of the 
Netherlands. tAPl 

Stasi Spy's Sentence 
Upheld in Germany 

BERLIN — The German Fed- 
eral Court of Justice on Wednesday 
upheld a 1996 conviction of Al- 
exander Schalck-Golodkowski. a 
former secret police colonel in East 
Berlin, found guilty of smuggling 
arms into the former Communist 
East Germany. 

Colonel Schalck had appealed 
against his conviction for import- 
ing firearms and night- vision 
devices valued at 8.5 million 
Deutsche marks ($5.5 million) dur- 
ing the Cold War. ( Reuters ) 


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EU Membership Seen as Vital to East’s Security 

By Peter S. Green 

liuemaiional Herald Tribune 

PRAGUE — The bear hug with which 
NATO has embraced Poland, Hungary 
and the Czech Republic may have ended 
the Cold War political division of 
Europe, but analysts say it has done only 
half die job of ensuring the security of 
Central and Eastern Europe. 

Only economic prosperity can truly 
secure the region's future, they say. But 
just as NATO is opening its doors to the 
region, there is concern that the Euro- 
pean Union is becoming reluctant to 
expand eastward. 

Without EU membership, said Kr- 
wstian Piatfcowski, senior analyst at the 
National Security Bureau in Poland, 
Central Europe will remain in a “gray 
zone” between Moscow and the Euro- 
Atlantic axis. 

“A country like Poland, with our his- 
tory, does not want to stay in a zone of 
potential instability,” be said. 

The EU's once ambitious plans to 
absorb up to 10 former Communist 
countries are bogged down as the Union 
wrestles with creating a single currency, 
reforming its internal workings and 

tackling low growth and high unem- 
ployment. Last month’s summit meeting 
in Amsterdam was supposed to open the 
door for eastward expansion, bnt it left 
Eastern leaders disappointed. 

The European Commission, the EU 
executive body, is scheduled to decide 
next week whether to open accession 
negotiations with Poland, Hungary, the 
Czech Republic, Slovenia and Estonia. 
But die Jack of EU internal reform means 
that any of die 15 member states could 
block expansion, particularly Spain. 
Portugal, Ireland and Greece, which 
would lose substantial funds to those 
poorer Easton members. 

Even an EU fund of 45 billion Ecus 
($50.7 billion) to aid expansion — 
which is to be announced in Strasbourg 
next week by the Commission president, 
Jacques Santer — could eventually be 
torpedoed by diem. 

The potential for delay worries many 
in the cast 

"Security has several dimensions — 
military, political but also economic se- 
curity,” said Jiri Pehe, senior analyst at 
Radio Free Europe in Prague. "These 
new market economies will not really be 
secure from die extensive tremors and 

turbulences of transition until they are 
fully integrated into die EU market.” 
“NATO and the EU are part of a single 
package, and the EU is the one thatibsters 
economic security,” Mr. Pehe saicL 
Economic crises have hit every one of 
the region's economies as they struggle 
with the difficult transition from central 
planning to free markets. The painful 
budget cuts and factory closings, and the 
resultant price rises and unemployment, 
fueled the resurgence of former com- 
munists and populists from the old 
Yugoslavia to Romania, Bulgaria and 
Slovakia who made lavish promises that 
only left their countries deeper in crisis. 

‘‘Economic decisions would be driv- 
en far less by ideological decisions than 
they are now,” Mr. Pehe said in support 
of EU membership, “because politi- 
cians would have to play on a very 
clearly defined playing field.” 

That view is echoed across the region 
by analysts who note a slowdown in EU 
efforts to promote Western expansion. 

NATO membership alone will not 
ensure Poland's security, said Mr. Pi- 
atkowksl, the Polish security official. 

“The major goal of oar region is not to 
rearm or to cope with a military threat. 

because that doesn't exist,” he said, “but 
to provide the country with all the con- 
ditions for rapid economic development. 
We perceive NATO membership as a first 
step and related to EU membership.” 
The EU recognizes that die East needs 
to join the club- The region's economies 
are small, and without membership in 
the world’s largest trading bloc they will 
be increasingly buffeted by the winds of 
international trade, analysts said. 

“It’s better to be at the table,” said a 
senior EU official. “In a world increas- 
ingly dominated by globalization, it's im- 
portant to have a say in the decisions.” 
Bat the EU line is that aspiring mem- 
bers should not worry if expansion is 
delayed a few years. 

“These countries are still in transi- 
tion, and the aim of the enlargement 
process is to be inclusive,” the official 
said. ‘ Tt’s not a question of whether they 
will join. In two, five or 10 years every- 
one will join.” 

Not everyone agrees with that laid- 
back assessment Jan Klacek, chief 
economist for the Czech National Bank, 
warns that each year of delay could cost 
the Czechs more than one percentage 
point of economic growth. 



NATO: Ukraine Is Embraced as a Partner 

Continued from Page 1 

heading off any threats to security. 

President Clinton, who was flying 
Thursday to Poland, and then on to Ro- 
mania to explain that “the door to this 
alliance and partnership to the West is 
open,” insisted at a press conference 
mat the costs of expansion would be 

When he was asked why relatively 
poor candidate countries with no clear 
external threat were going to have to buy 
new weapons to meet NATO standards, 
the president said they will not have to 
buy ‘ ‘the most expensive weapons to do 
everything in the world, but it does mean 
that if they're going to undertake the 
projected missions of NATO they ’re go- 
ing to have to be properly aimed.” 

“I think some people in the United 
States have grossly overestimated the 
costs of NATO expansion,” he con- 
tinued. “I do believe that the nations 
involved should pay most of the costs 

Secretary of Defense William Cohen 
estimated the costs to NATO on Tuesday 
as ranging from $27 billion to $35 billion 
over me next 13 years, with new mem- 
bers paying approximately one-third of 
the amount. The U.S. share, he said, 
would be from $150 million to $200 
million over the next 10 years. CuiTent 
European members, Mr. Cohen said, 
would take over one-third of the total 
expansion costs. 

The president did not directly reply to 
a question about a remark by President 
Jacques Chirac of France that his coun- 
try would not make extra contributions 
to NATO to fund the enlargement 

Rather, Mr. Clinton said, “there will 
be some infrastructure that will have to 
be built in the countries of members so 
that we can have what is called inter- 
operability. And I would expect that 
these costs would be modest for all coun- 
tries, but 1 would titink that the Euro- 
peans and the United States and C anada 
will have modest costs that we will bear. 
And I think that most of the costs will be 
borne by the member states. It was up to 
them to make a judgment." 


■ Clinton Backs Mrs. Plavsic 

President Clinton threw his weight 
behind the Bosnian Serb leader, Biljana 
Plavsic, on Wednesday while NATO’s 
top soldier in Europe warned hard-liners 
opposing her not to underestimate the 
alliance, Reuters reported from Madrid. 

‘ ‘We support Mrs. Plavsic in what she 
is trying to do, we oppose the uncon- 
stitutional efforts to usurp her author- 
ity,' ' he told reporters at the end of a two- 
day NATO summit meeting. 

During the meeting, called to invite 
former Communist nations to join the 
alliance, NATO tried to him up the heat 
on hardline Bosnian Serbs flouting the 
Dayton peace accords. 

But Mr. Clinton and other NATO 
leaders ducked questions on whether to 
act to detain indicted war c riminals , such 
as the framer Bosnian Serb leader. 
Radovan- Karadzic 

“We believe that Mr. Karadzic and all 
the other people accused of war crimes 
should be arrested and sent to trial,” Mr. 
Clinton said, but added it would be “in- 
appropriate” to comment on whether 
troops should be sent to seize them. 

M.IL IV r FniHT-nr 

Leaders at the NATO meeting gathering for a photo with Queen Sofia and King Juan Carlos, bottom right 

COMMERCE: The New Secretary, Daley, Is the Un-Ron Brown 

ALLIES: Paris Is Odd Man Out at Madrid 

Continued from Page 1 

that this was an impossible request 
which would both reward Fiance for 
having left the command structure dur- 
ing the de Gaulle era and create an 
untenably complicated situation for the 
United States in relation to the fleet’s 
deployment and its eventual use in the 
Middle East There were very few coun- 
tries within die alliance that saw this 
French condition as a reasonable one, he 

But President Chirac and the Socialist 
government of Prime Minister Lionel 
Jospin seem to believe that the approach 
wins support at home and some kind of 
admiration from its European partners. 

This time, though, the reaction ap- 
peared among Europeans to be one of 
irritation. At a moment when many of its 
partners wanted to see the summit meet- 
ing here as a victory over Europe's his- 
tory of war, France was essentially mo- 
tivated by a desire to show its discomfort 
with cooperation. 

Germany stayed away from anything 
suggestive of endorsement of the French 
positions, and Spain was much more 
keen on emphasizing its readiness to 
take its place in the integrated command 
than stressing the details still to be ironed 
out before its actual entry. 

El Mundo of Madrid, now one of the 
most influential newspapers in Spain, 
rated France, along with Russia, as the 
summit meeting’s big loser Wednesday. 
In Germany, the Sueddeutsche Zeitung 
wrote that France had behaved like 
Pavlov’s dog, learning nothing about the 
functioning of the allian ce since its de- 
parture from the military structure in 

In the same vein, the Frankfurter 
Allgemeine’s defense correspondent, 
Karl Feldmeyer, reported that the French 
ambassador to NATO had called the 
alliance a “sick” organization and de- 
scribed the French attempt to trade a 

return to the military for control of the 
Southern Command as “being under- 
stood by all the participants as basically 
having to do with strengthening of its 
own influence and the weakening of 

The determining element in setting 
France’s future policy on NATO — 
President Bill Clinton has said the 
United States has no intention of hand- 
ing away the Southern Command where 
die Sixth Fleet constitutes its greatest 
overseas asset — appears to be domestic 

Mr. Jospin came out against NATO 
reintegration as a matter of principle 
during the election campaign, and there 
seemed little likelihood that he would 
change his attitude at a time when he will 
want the support of the left to continue 
controls on deficit spending. 

But there are pressures within France 
as well for movement toward the al- 

Mr. Chirac’s plan for cutting die size 
of the French armed forces, ending con- 
scription and changing the military’s 
primary mission to one of a rapid-re- 
action force appears to make very much 
less sense if it is not firmly linked to the 
NATO command. 

The Americans want to encourage 
this perception. In trying to ease the 
French back into the command, they 
have the support of Germany, which is 
uncertain about the effect of France's 
plans on its own military planning but 
exceptionally pleased about Poland's 
candidacy for NATO membership. 

Mr. Chirac and Mr. Clinton were de- 
scribed Tuesday by American aides as 
having left one another after a brief talk 
agreeing to continue discussing France's 


As Mr. Chirac explained it, NATO's 
success could be very much improved 
on, with France seelting “a new part- 
nership, a real partnership” between 
Europeans and Americans. 

Joe Fitchett 


Impeccable sources, 
intelligent, behind the scenes 
and at the heart of issues. 

If you missed his reporting in the 
IHT, look for it on ow site on the 
World Wide Web: 

Continued from Page 1 

policy, Mr. Daley has preemptively 
downsized his department. 

Eleven days ago he announced layoffs 
of 40 political appointees, and wherever 
he travels these days, he repeats the 
mantra that ‘ * there is no roomfor politics 
in the Commerce Department.’ It is a 
strategy meant io ensure that should 
John Huang, the former Commerce De- 
partment official turned fund-raiser, end 
up testifying at the hearings under a 
grant of limited immunity from pros- 
ecution. the department could say that it 
had already carried out major reforms. 

But the ripple effects of Mr. Daley’s 
actions, in the minds of many inside and 
outside the Commerce Department, are 
wider than may have been intended. A 
White House that once sought headlines 
for promoting U.S. exports is these days 
often shying away from conspicuous 
displays of U.S. diplomatic power to win 
contracts abroad. 

Even the definition of commercial 
diplomacy, a phrase Mr. Brown’s aides 
settled upon because they thought the 
word “commercial” would keep the 
State Department from interfering, is 
undergoing a significant shift. In speech 
after speech. U.S. officials are putting 
less emphasis on describing export pro- 
motion and the creation of jobs in Amer- 
ica as the goal. 

Far more often, they talk about using 
economic initiatives — from low tariffs 
to trade accords to promoting invest- 
ments by American companies — as 
ways to promote peace and stability, 
from Africa to Northern Ireland. 

* ‘ Export promotion is still a big part of 
what we do around here,” Mr. Daley 
said in a recent interview. “But we are 
also trying to show that there is much 
more that we can accomplish around the 
world pulling economic levers.” 

Mr. Daley has received enormous 
praise within President Bill Clinton's 
administration for defusing a major trou- 
ble spot: On Capitol Hill, Republicans 
are no longer talking about dismantling 
the Commerce Department. 

“Bill has one of the most sound polit- 
ical antenna I’ve ever seen,” said Stuart 
Eizenstat, who left a top Commerce De- 
partment job recently to become un- 
dersecretary of state for economic af- 

So far, however, Mr. Daley has not 
laid out the kind of well -articulated trade 
agenda that characterized Mr. Clinton's 
first term, and some fear that the de- 
partment is losing the sense of mission it 
briefly had. 

In a recent article in Foreign Affairs 
magazine, Jeffrey Garten, the undersec- 
retary of commerce for international 
trade during most of Mr. Clinton’s first 
term, said the White House's enthusiasm 
for its old strategy waned after cam- 
paign-finance investigations “raised a 
host of questions about whether Amer- 
ica’s commercial diplomacy, particu- 
larly in Asia, was for sale.” 

Mr. Garten, now the dean of the Yale 
School of Management wrote that the 
administration had “lost its laser-like 
focus on (he importance of foreign mar- 
kets to the Untied States.” 

Mr. Garten’s deputy at the Commerce 
Department, David Rothkopf — now a 

senior official at Kissinger Associates, 
former Secretary of State Henry Kis- 
singer’s consulting firm — is even 
blunter. “In the way we once knew it, 
commercial diplomacy is nearly dead,” 
he said. A paper he wrote this year. “On 
the Short Life and Impending Decline of 
Commercial Diplomacy.” has been 
copied, recopied and endlessly argued 
about in his old department 

The White House maintains, 
however, that its focus on these issues is 

“Commercial diplomacy is not dead, 
because we can’t just walk off the 
field,” Mr. Daley insisted, sitting near a 

Sami IgaatTUe AaocMMd- 

Prime Minister Gyula Horn of Hungary, left, President Vadav Havel of 
Czech Republic and President Akksander Kwasniewski of Pofand 'm" 


Aide’s Calls Cited | 

' ' Continued from Page 1 ■ ■ ■'* : 

• ii 

Undo* questioning from the commit 1 ; 
tee’s ■ Republican counsel, Michael ... 
Madigan. Mr. Sullivan said he had been j ; 
concerned that the party’s top lawyeSr. 
instruct Mr. Huang about the law for* 
bidding foreign donations and had been/ ' 
assured that Mr. Huang received suefr 
instruction. - 

: ‘T was concerned that John knew the yji 
rule,” he said. . . .v ' 

More than half of the $3 million hr- 
donations the Democratic National 
Committee has returned from the 1996 : 
election, was raised by Mr. Huang. The * 
money has been returned because > 
concerns that the donations came 
illegal foreign or improper sources. 

' Mr. Sullivan said he had mterviewen 
Mr. Huang for a fund-raising job after; 
Marvin Rosen, then the finance chair- 
man of the Democratic National Com- ; 
mittee, told him of two calls he had 
received in late 1995 from the Whifft- 
HOuse deputy chief of staff, Harold 
Ickes. M : 

“My sense of it at the time was tht#. ^ 
Harold had called Marvin twice over a '?• 
period of a couple of weeks, and that jS 
when Marvin acted on it, ’’ Mr. Sullivan 

said. ' ' - : v 

His' questioning by Frol Thompson; 

the Tennessee Republican who is chimr- . .• 
man of the panel, was designed to es^ 
tablish that the White Housepressed fdr 
Mr. Huang to get a job with the Demo^ *- 
cratic Party. v ; 

The head of U.S. operations for tWfei 
Indonesian-based Lippo Group financial 
empire. Mr. Hoang was appointed bjf. 
President Clinton in 1994 to a be It;'* 
deputy assistant secretary at the Com* ' 

lirrmvnn 1 knipf— ni/Thr IVn 

William Daley at a Bonn meeting. 

photograph of his father, the late Richard 
Daley, the Legendary mayor and political 
power broker in Chicago (his older 
brother Richard Daley is Chicago's cur- 
rent mayor). 

“We have to conduct this kind of 
effort because it’s clear that Helmut 
Kohl and Jacques Chirac aren’t going to 
stop,” he said, invoking the leaders of 
two of America’s major political allies 
and economic competitors, Germany 
and France 

Nonetheless, some career officials 
within the Commerce Department say 
there is an absence of the electricity that 
was there in Mr. Clinton’s first term. 

Mr. Brown and Mr. Garten, for ex- 
ample, built a “war room” on the de- 
partment's fifth floor to coordinate the 
activities of U.S. agencies — from am- 
bassadors to the CIA to the president — 
in tracking major building projects 
around the world and making sure that 
U.S. businesses won their share. 

Mr. Daley eschews the economic war- 
fare analogies — “the term ‘war room’ 
always bugged me,” be said — although 
he insistedthat “we are probably being 
as aggressive as we used to be in our 
advocacy center.” 

His aides like to point instead to a new 
“compliance center,” set up by Mr. 
Eizenstat, who says he was “stunned to 
discover when I arrived at Commerce 
that we were so busy negotiating trade 
agreements that we never tracked 
whether countries were abiding by 
them.” But monitoring old trade ac- 
cords, Mr. Daley’s aides concede, does 
not make for flashy headlines. 

. “What you are seeing is a difference 
in style between me and Ron,”' Mr. 
Daley said. “But times are also dif- 
ferent The American economy is boom- 
ing. Some of the big projects around the 
world that we were so eager to get are 
slowing down a bit now.” 

Moreover, he said. “I’m not sure that 
American companies need as much gov- 
ernment help to get a foot in the door as 
they did a few years ago.” 

The stylistic differences are partic- 
ularly evident on trade missions. Mr. 
Brown made much of the pageantry of 
signing deals. One of his first big mis- 
sions was to China in 1994, and he 
repeatedly referred to it as having led to 
$6 billion in deals. But roost of those 
were “memorandums of understand- 
ing,” and many of the understandings 
quickly unraveled. 

Io fact, nearly three years after Mr. 
Brown’s mission, the Commerce De- 
partment says only $1.66 billion of those 
deals actually came to fruition, with an 
additional $3.2 billion officially de- 
scribed as still being “pursued” by 
American companies. 

By contrast, instead of taking along 
big-name chief executives on his South 
American trade mission, Mr. Daley 
traveled with lesser-known executives a 
few notches down the corporate ladder, 
selected according to a strict new set of 
criteria. Those rules limit participation 
to companies with a demonstrated in- 
terest in the region to be visited, and the 
final selection is made by a committee 
dominated by career officials. 

The new rules are intended to avoid 
one of the big questions that still linger 
oyer Mr. Brown despite his death: How 
did corporate executives, some of whom 
were big political donors, get aboard the 
secretary's plane? Mr. Brown’s method 
of selection remains a mystery. 

‘ ‘The list of participants on these trips 
just appeared from Brown's office,” a 
senior Commerce official said recently. 

Nonetheless, reams of documents on 
that issue made public over the past two 
years have yet to produce convincing 
evidence that any executives promised 
to make campaign donations in return 
for a seat on a mission. 

These days. Mr. Daley is constantly 
treading a fine line. He has steered clear 
of any criticism of Mr. Brown. But that 
criticism is implicit in many of the 
changes he has made. 

The political appointees laid off in- 
cluded several officials in the Secre- 
tary’s office. Mr. Daley has said he will 
shrink the total number of posts filled by 
political appointees throughout the de- 
partment by roughly 100, to about 250. 

If Mr. Daley has put out the political 
fires at Commerce, however, he and U.S 
Trade Representative Charlene Barshef- 
sky and Secretary of Stale Madeleine 
Albright are just beginning to define new 
goals for the nation’s foreign business 
and trade agenda. 

Six months into the second term 
however, many issues that fall under the 
umbrella ot commercial diplomacy are . 
still under debate within the White 
House. No one has ever resolved the 
question of how deeply the intelligence 
agencies should get involved in eco- 
nomic espionage, an argument that has 
raged for several years now 


Lukr FnoBa/^rnrr Ffncr-Phjnj 

Richard Sullivan being sworn in. V'f 

merce Department, where he had access! 
to intelligence information. s ; 

In 1996, Mr. Huang left the depart*; 
ment to become the Democratic Party’/ 
chief funds solicitor in the Asian- Amer- 
ican community, a job that ultimate^ 
landed him and the party in contrt ‘ 

In Madrid, Mr. Clinton offered- 
vague answer to questions . about, 

“I believe that John Huang at 
point when I saw him in 1995 expr 

an interest in going to work to help 

money for the Democratic Party ati& 
thinkl may have said to someone Jhatifc 
wanted to go to work at the DNC,” Mr 
C linton said. 

“I don’t remember who I said thatfo*- 
I wish I could tell you more. Most people , 
don t volunteer to help you raise rzn 
in this world.” 

Mr- Clinton called assertions 
China had tried to sway the 1996 
tions “a serious charge,” but said 
no conclusions should be drawn until 
FBIinvesti gation had ended. 

The Thompson inquiry opened Tui 
day with claims that China had tried 
direct substantial sums of money to 
fluence the 1 996 elections. 

*7, not know whether it is true 
nor. Mr. Clinton said at the news cc 
rerence in Madrid. “However, it is 
serious charge.” . 

Unsaid that the United States wc 
react “in an appropriate fashion” if 
allegations were found to be true by 
FBI probe. fAP. Reuters, IT, 

Se** our 

and Antiques 

cv, *ry Saturday 

^>^1 O' X&P 





Rwanda Admits It Led Drive to Topple Mobutu 

By John Pomfrei 

Washington Post Service 

j KIGALI, Rwanda — This nation’s 
i powerful defense minister has acknowt- 
jedged that Rwanda played a key role in 
’the overthrow of President Mobutu Scse 
6eko of what was then Zaire, saying that 
fiie Rwandan government planned and 
greeted the rebellion that toppled the 
longtime dictator and that Rwandan 
Jtwps and officers led the rebel forces. 

> C The minister, Paul Kagame, said in an 
,&nterview here that Rwandan forces par- 
'* Jicipated in the capture of at least tour 
j6ties — the Congolese capital. Kin- 
shasa; the southern copper-mining town 
jjfLubumbasbi; the key western cross- 
foads of Keoge, and the diamond center 
bf Kisangani, which fell March 15 in 

So K Ly^vDv ^ 

eotVadav Havel of £ 
*ki of Poland in Madi^ 


Zalls Cited 

iued from Page 1 

tioning from ihe conunn. 
lican counsel. Michael 
Sullivan said he had bea 
it the party's top hwy c 
-tnang about the law for- 
jn donations and had been 
'Ax. Huang received such 

cemed that John knevi iht 

half of the S3 million u> 
ie Democratic National . 
is returned from the jv%l r 
raised by Mr. Huang. The 
>een returned because of 
the donations came firm 
i or improper sources, 
in said he had miemewd 
ar a fund-raising job after 
n, then the finance chair 
democratic National Cons 
him of two call-, he hal 
ate 1995 from the White 
ry chief of staff. Harold 

3 of it at the time was that 
tailed Marvin tw ice over i 
ouple of weeks, and that vs 
l acted on it,' ' Mr. Sullivan 

oiling by Fred Thompson, 
e Republican who is chair- 
janel, was designed to es- 
le White House prevsedfor 

0 get a job with the Denro- 

of U.S. operation* for the 
,ased Lippo Group financial 
Huang was appomied by 

1 in ton in 1994 to a bei 
rant secretary at die Ccro- 

Bab SnogMpnoE FnocePKnr 

*‘Not many people thought Mobutu 
jms very weak,” Mr. Kagame said. 

what was considered the key bauie of 
the war. 

He said that Rwandan “mid-level 
commanders’* led rebel forces 
throughout the successful rebellion and 
that Rwanda provided training and arms 
feu- those forces even before the cam- 
paign to overthrow Marshal Mobutu 
began last October. 

Mr. Kagame, 40, a major general who 
commanded the 1994 takeover of 
Rwanda by a rebel army, offered what 
he said were “secrets of the war” in 
Zaire, including the first public account 
by a senior Rwandan official of that 
country's involvement 

Several other African countries, in- 
cluding Uganda, Angola, Burundi and 
Zambia, are also known to have sup- 
ported the rebel cause. But Mr. 
Kagame's account suggests that the 
war, which began in eastern Zaire near 
the borders of Rwanda and Uganda, was 
planned primarily by Rwanda, and that 
the plan to remove Marshal Mobutu 
originated in Kigali. • 

“There are not many people who 
thought that Mobutu was very weak," 
Mr. Raga me said with a smile. “They 
thought of Mobutu as a big monster who 
wouldn't be defeated, with his big hat 
and his big stick. They thought ‘little 
Rwanda* and ‘big Zaire.' Only when we 
started did they look at the map and see 
the possibilities." 

The Rwandans’ role in the rebellion 
has been controversial in Congo. The 
rebel leader Laurent Kabila, who pro- 
claimed himself president in May and 
changed the country's name back to 
Congo, has maintained that his forces 
were assembled from among the coun- 
try's many ethnic groups. 

But the large number of ethnic Tutsi 
in the rebels’ ranks — they account for a 
tiny percentage of Congo's population 

but dominate the government and 
armies of Rwanda and Burundi — have 
led Mr. Kabila's critics to contend that 
Congo is being ruled by a Rwandan 
occupation force. 

Mr. Kagame, a Tutsi, also responded 
to allegations that Tutsi officers of the 
Rwandan Army had ordered massacres 
of Rwandan Hutu refugees inside 

The Hutu refugees fled to Zaire in 
1994 after Mr. Kagame’s Tutsi-led 
army seized power in Rwanda and 
ended a campaign of massacres of Tutsi 
by Hntu troops and militias that killed at 
least 500,000 people. Rwandan officers 
interviewed inside Congo said the Tutsi 
were given a free hand by the Zairian 
rebels to attack the Rwandan Hutu — 
many of whom were former soldiers and 
militiamen who participated in 
Rwanda's 1994 genocide — in ex- 
change for backing the war against Mar- 
shal Mobutu. 

While not denying the possibility of 
individual atrocities, Mr. Kagame ac- 
cused UN officials who have leveled 
massacre charges against the Rwandan 
Army and the rebel forces of falla- 
ciously trying to equate their behavior 
with the genocide that Hutu extremists 
carried out in Rwanda. 

“It is my strong belief that the United 
Nations people arc trying to deflect the 
blame for failures of their own making 
onto us,” he said. “Their failure to act 
in eastern Zaire directly caused these 
problems, and when things blew up iu 
their faces, they blamed us.” 

Mr. Kagame, who bolds the titles of 
vice president and defense minister and 
is Rwanda's most powerful leader, said 
that months before war, he warned the 
United States that Rwanda would take 
military action against Marshal 
Mobutu ’ s regime and the refugee camps 

in eastern Zaire that were being used as 
bases by the Hutu fighters that Mr. 
Kagame had defeated As many as 1.1 
million Hutu were housed by late 1996 
in camps in eastern Zaire. 

Hutu militias used the camps as bases 
from which they attacked Rwanda, and 
Mr. Kagame said die Hum had been 
buying weapons and preparing a full- 
scale invasion of Rwanda. 

Mr. Kagame said be and other 
Rwandan officials attempted to per- 
suade the Unite! Nations and Western 
countries to demilitarize the refugee 
camps and separate the Hutu fighters 
from the real refugees. But, be said, 
“they were insensitive.” 

He added: “We told them clearly. 
Either you do something about the 
camps or you face die consequences.” 
while Mr. Kagame said he was un- 
aware of any American military support 
for the rebellion, he commended the 
United States for “taking the right de- 
cisions to let it proceed.” 

Mr. Kagame, who studied at the U.S. 
Army Command and General Staff Col- 
lege at Fort Leavenworth, Kansas, in 
1990. has directed military campaigns 
before. In the 1994 war in Rwanda, he 
led a rebel force of 8,000-predomin- 
antly Rwandan Tutsi exiles who had 
been given sanctuary and training in 
Uganda — against a 30,000-strong, 
Hutu-dominated army trained ana 
equipped by France and backed by tens 
or thousands of Hutu militiamen. Gen- 
eral George Joulwan of the U.S. Army, 
the supreme commander of NATO 
forces, described Mr. Kagame as “a 
visionary,” a perception shared by oth- 
er Western military officers. 

Mr. Kagame said the battle plan 
against the Hutu was simple. The first 
goal was to “dismantle die camps.” 
The second was to “destroy the struc- 

A Victim’s Father 
Lectures 4 Killers 
In South Africa 


CAPE TOWN — The father of an 
American student who was murdered 
in 1993 by a mob in a South African 
township sought Wednesday to give 
her killers a moral lesson, urging them 
to turn the other cheek to apartheid's 

At a hearing to plead for amnesty 
before Archbishop Desmond Tutu’s 
Truth and Reconciliation Commis- 
sion, Peter Biehl and his wife, 
Linda, addressed the four young 
black men who murdered their 
daughter, Amy. 

"They told their story to the chil- 
dren, they taught their vows to the 
children that — We shall never do to 
them what they did to us,” Mr. Biehl 
said to the commission, quoting a 
South African poem. 

He explained at a news conference 
later that he had addressed the quote 
directly to the four killers, trying to 
look diem in the eye. “I think we can 
all be instructed by that poem,” he 
said, adding, “I wanted them to hear 
those words.” 

One of the four is a mentally retarded 
man, who threw die final rocks at Miss 
Biehl as she lay dying in Guguletu 
township outside Cape Town. 

“I threw many stones at her head 
from a distance of approximately one 

Aubji ZunniuLv A£m"- Fnincf- IV i mt 

The Biehls on Wednesday. 

meter,” said Vusumzi Ntamo, who 
acknowledged being incapable of un- 
derstanding political theory. 

Mr. Ntamo and die three others are 
trying to be released from their 18- 
year jail terms on grounds that the 
killing was a political act aimed at 
bringing down the white govern- 

At the time of the murder, the 
apartheid regime was in the final 
stages of negotiating itself out of 

Mr. and Mrs. Biehl told the com- 
mission that his daughter had been a 
bright, active child who had come to 
South Africa as a Fulbright scholar to 
help black people deal with the hor- 
rors of apartheid. 

Mr. Biehl said he and his wife 
would not oppose the applications for 

ture” of the Hutu army and militias 
based in and around the camps either by 
bringing the fighters back to Rwanda 
and “dealing with them here or scat- 
tering them.” 

The third goal was broader toppling 

Marshal Mobutu. Mr. Kagame said that 
“it would have been more suitable” if 
Congolese rebels had done most of the 
fighting against Marshal Mobutu's 
troops, but it also would have beat 

Washington Quietly Tries to Mend Ties With Iran 

By Robin Wright 

Los Angeles Times 

: WASHINGTON — In its most se- 
rious attempt in a decade to engage Iran 
in dialogue, the U.S. government has 
quietly signaled through diplomatic 
channels that it seeks to improve the 
volatile relationship between Tehran 
and Washington. 

“We would like to end the estrange- 
ment,” a senior White House official 
said. “And we are now looking for ways 
to accomplish that goal” 

.. The United States wants to take ad- 
vantage of a political shift inside Iran, 
'symbolized by a presidential election 
upset in May in which a relative mod- 
erate won office, and to do so soon 
enough to prevent a potential confron- 
tation if the Mamie republic is even- 
tually tied to last year’s bombing of a 
military complex in Saudi Arabia that 
filled 19 U.S. Air Force members. 

Paradoxically, Saudi Arabia — 
which made the strongest case about 
fpn's role in the bombing — has been a 
central intamixliaiy in relaying the U.S. 
passage to Iran, the official said. A 
senior member of the Saadi Council of 
Ministers, Abdul Aziz Abdallah Kh- 
weater, outlined U.S. trams for eventual 


LBL-ina* . 

uffivan being sw orn 


See our 


* Forces Are \ Stalked 9 
I In Gulf, U.S. Says 

t . WASHINGTON — U.S. farces 
2 ' in tiie Gulf are being “stalked” fey 
!.' terrorists and — a year after 19 

* American airmen were killed in a 
^ truck bombing — another attack is 

Seely, a top general said Wednes- 
: day. 

* ' But Lieutenant General Anthony 
\ Zinm of the Marine Corps, Pres- 
' ident Bill Clinton ’s choice to be the 
» new military chief in the Gulf, said 

* tiie United Stales has taken steps to 
protect the troops adequately. 

: Tbe thousanrfr^ U.S. troOTS sta- 
tioned in Saudi Arabia and Kuwait 
r are under constant surveillance by 
individuals and groups believed to 
be linked to terrorists, General 
Zmni said. (AP) 

Israel Gets Cabinet 

“ JERUSALEM — Parliament on 
Wednesday approved Prime Min- 
ister Benjamin Netanyahu’s new 
cabinet appointments, ending three 
weeks of wrangling over jobs that 
|- had threatened the stability of the 
' government. .... 

Mr. Netanyahu said after the 52- 
|- to-46 vote in favor of his choices 
' for new finance and science min- 
isters that he felt the political crisis 

■' was b ehind him flnri that he COUld 

■ now foens on 
‘ negotiations with the 
Yaakov Neexnan has .the •fiwanwt 
' portfolio and Michael Eton the sci- 
ence one. ;• (AP) 

Riots in Managua 

MANAGUA — More than 100 
have been hurt in violent 
between students and riot 
lice outride Central American 
'Diversity, a government official 
said Tuesday. 

Deputy Interior Minister Miguel 
Campos . Mercenario, in. charge of 
domestic security, said 48 of. those 
injured in the clashes were police- 
men. He said an additional ly 
people, who were not students, 
were arrested and are being charged 
with disorderly conduct Most of 
the demonstrators were sympath- 
izers of die leftist. S an dimsta Na- 
tional liberation Froat. (AP) 


rapprochement during a visit to Tehran 
last week. 

The U.S. official declined to elab- 
orate on those terms. 

U.S. officials are looking to Iran for a 
major step away from its sponsorship of 
international terrorism, the official said. 
As an early signal of Iranian intent, 
Washington will watch President-elect 
Mohammed Khatami's cabinet appoint- 
ments, which are expected before he 
takes office Aug. 3. 

The United States is particularly in- 
terested in the ministries of intelligence 
and interior, the two posts that have 
been linked with promoting extremism. 
Intelligence Minister Ali Fall ahian has 
been linked in a German court to Ira- 
nian-backed plots to assassinate dissi- 
dents abroad. His departure is con- 
sidered essential to improved relations. 

“Iran has proven in recent years that 
it is capable of changing its behavior in 
ways we could deal with it,” the official 

For example, the official said, Iran 
“has a working relationship with the 
Russians despite strong ideological dif- 
ferences.” Iran and Russia have worked 
out a deal in which Iran does not meddle 
in the Muslim republics of the former 
Soviet Union, while Moscow helps re- 

While House 
Casts Doubt on 
Tobacco Deal 

By Pete 
ana John Schwartz 

Washington Pov Service 

House has rejected a critical element of 
the proposed $368 .5 billion settlement 
with the tobacco industry because it 
would impose broad new restrictions on 
federal authority to regulate nicotine in 
cigarettes, according to senior officials. 

in their first direct involvement to 
devise a settlement, advisers to President 
Bill Clinton plan to rewrite the proposal 
themselves after concluding that it sur- 
renders too much of the Food and Drag 
Administration’s ability to control the 
addictiveness of cigarettes. Such limits, 
they said, would roll back their campaign 
to assert jurisdiction over tobacco. 

“They’re unacceptable,” said an ad- 
ministration official who spoke on con- 
dition of anonymity. 1 ‘The way it’s writ- 
ten,' it actually slides back on what 
we’ve already won.” 

That conclusion did not come as a 
complete surprise, given the public re-, 
serrations Mr. Clinton had, expressed 
about tire Food and Drug Administra- 
tion's limits since the plan was unveiled 
last month. Bat it reflects a calculated 
gamble by Mr. Clinton that the political 
ptnmenmm is running his way and he 
can afford to risk reopening the del- 
icately balanced deal because tire in- 
dustry has little room to maneuver. 

According to aides, Mr. Clinton is 
willing h> walk away from the settle- 
ment if it cannot be amended. 

The proposed settlement would re- 
solve scores of lawsuits against the to- 
bacco industry by state governments and 
individual smokers seeking reimburse- 
ment for medical expenses caused by - 
smoking; An accord was reached after 
months of difficult negotiations between ■ 
industry representatives and a group of 
jenraal and trial lawyers, 

stock Iran's arsenal, depleted by 40 per- 
cent in its 1980-88 war with Iraq. 

If relations with the United States 
improved enough that the administra- 
tion ended its policy of economic iso- 
lation, Iran could, among other things, 
gain access to badly needed Western 
technology and equipment for its out- 

*We would like to end the 
estrangement. And we 
are now looking for ways 
to accomplish that goal.’ 

dated oil industry. 

But senior administration officials 
fear that before the new Iranian gov- 
ernment has a chance to respond to U.S. 
overtures, the Saudi bombing investi- 
gation could develop conclusive evi- 
dence pointing to Iranian involvement 

Mr. Khatami will need time to con- 
solidate his hold on power in a faction - 
riddled political environment before he 
can take any bold steps to improve re- 
lations with the United States. 

“We would love to see Iran take 
action that shows response to our con- 

cerns” the senior official said, adding 
that it should do something before mo- 
mentum takes over on Capitol Hill “or 
among other quarters that would make it 
difficult to argue the case for dealing 
with Iran again any time soon.” 

A possible source of such evidence is 
a Saudi dissident being held in the 
United States: Hani Abdel Rahim 
Sayegh, who may have been a driver 
and lookout in the attack, according to 
information provided the United States 
primarily by Saudi officials. 

Mr. Sayegh was deported last month 
from Canada to Washington and is 
scheduled to appear in court Thursday. 
It is uncertain whether he will stick to 
his original agreement with U.S. in- 
vestigators, m which he would provide 
information about the Saudi attack in 
exchange for being allowed to plead 
guilty to a lesser charge. 

The U.S. government first signaled 
its decision to push the issue of rap- 
prochement with Iran shortly after Mr. 
Khatami’s surprise landslide victory 
May 23, which Mr. Clinton called a 
“very interesting” development and “a 
reaffirmation of the democratic process 

Mr. Khw eater’s visit to Iran last week 
was intended to bolster relations be- 

AgrtLcr FiuwhaH 

Ukrainian-built tanks rolling though the central Iranian town of DoroudL 
Russia has agreed to rearm Tehran if it leaves former Soviet republics be. 

tween the Saudi Arabia and Iran, which 
have been tense since Iran's monarchy 
was ousted in 1979. Ties were severed 
by 1991. 

Mr. Khweater’s talks with senior Ira- 
nian officials included the current pres- 
ident, Hasbemi Rafsanjani, and were 
followed by the signing of several eco- 
nomic accords that effectively re-es- 
tablish trade ties. 

Both Saudi Arabia and Israel, two 
countries usually at opposite poles on 
regional tensions, have urged Wash- 

ington not to retaliate against Tehran if 
evidence proves that Iran had a direct 
hand in the attack at Khobar Towers, 
Americans familiar with the issue say.. 
Prime Minister Benjamin Netanyahu of 1 
Israel has made die case personally with 
the administration, they add. 

Although Israel considers Iran a ma- 
jor threat to instability in the region, 
Israeli officials oppose a U.S. military: 
response at least partly out of fear that 
their country could be the target of Ira- 
nian retaliation. 

Wins Bid 
For Chile 

By Anthony Faiola 

Washington Post Service 

AT SEA AGAIN — The U&S. Constitution, known as Old 
Ironsides, being towed into the Atlantic for the first time in 116 
years to prepare for the celebration of Its 200th anniversary. 

Yale Refuses Bequest for Gay Studies 

have to tr anslate it into legislation. 

At a White House meeting with a top 
presidential adviser last week, tobacco 
lawyers exhibited little appetite for 
more concessions, bnt they did not role 
them out . 

New York Tunes Service 
NEW YORK — Larry Kramer 
relishes a good fight. He helped 
found the Gay Mm s Health Crisis 
in 1981, only to split with it later 
when he found it too timid for his 
taste. Then he started the group Act 
Up to press politicians and phar- 
maceutical companies to respond 
more forcefully to AIDS. 

But recently, Mr. Kramer, 62, 
the writer who has the virus that 
causes acquired immune defi- 
ciency syndrome, seized on a way 
to get the last word in against his 

antagonists: He would bequeath 
Yale University, his alma mater, 
several million dollars to endow a 
permanent, tenured professorship 
in gay studies and possibly to build 
a gay student center. 

Yale will have none of it 
It has declined Mt. Kramer's of- 
fer, at least on his' terms, and in a 
letter from foe provost, Alison 
Richard, expressed foe hope that he 
would consider other ways of di- 
his generosity, “thereby 

other endeavors bene at Yale.” 

SANTIAGO — A million- 
aire American conservationist 
has won agreement from the 
Chilean government to help 
him establish a nature sanc- 
tuary on a vast stretch of 
pristine land he has sprat years 
acquiring in southern Chile. 

Douglas Tompkins, creat- 
or of the Esprit clothing em- 
pire. faced pressure from foe 
Chilean military and conser- 
vative business interests here 
who believed that his land 
holdings — which essentially 
cut this long, narrow country 
in half — were too vast and 
strategically important to be 
in the hands of a foreigner. 
They also accused him of at- 
tempting to stymie economic 

Bnt foe government after 
investigating the million- 
aire's motives, reached an 
agreement with Mr. Tomp- 
kins on Tuesday. He will turn 

over his land to a private trust 
and in return he will receive 
from President 
Frei for foe safe- 
guarding of the land from de- 
velopment interests. He will 
also obtain protection against 
pressure from conservatives 
who have been trying to 
thwart his plans. 

The aim now is to turn the 
land into a preserve that will 
become a showcase of the di- 
versity of Chile’s ecology. 

“The government finally 
recognized that Mr. Tomp- 
kins was only interested m 
creating a conservation area 
— and that he had no other 
motives,” said Sara Larrain, 
national coordinator of Ren- 
aca, a network of environ- 
mental groups here. 

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The Coup in Ca 

i t min 


The latest combat in Cambodia’s 
capital may seem like inexplicable in- 
“ ■ g equally tainted poin- 

t's noL It’s basically a 


coup d’fitat 

Camb odia’s tragic history leads 
some diplomats and others to consider 
hopeless the cause of democracy there. 
Certainly the Southeast Asian nation 
has had more than its share of seemingly 
mortal blows — above all the unspeak- 
able Khmer Rouge genocide. And none 
of Cambodia’s factions is untainted by 
the bloody past Yet few observers con- 
sidered democracy hopeless in 1993, 
when an astonishing 89 percent of 
voters went to the perils despite threats 
of violence and actual attacks. A United 
Nations- led transition was hailed as a 
model for democracy-budding. 

Almost from the start, though, those 
courageous voters did not get the in- 
ternational support they needed. Hun 
Sen, the Vietnamese-installed ruler 
from 1979 to 1993, and his Cambodian 
People’s Party unexpectedly lost the 
election, despite a campaign of intim- 
idation against other parties. Yet, again 
through coercion and threat of force, be 
was permitted to muscle into the gov- 
ernment as co-prime minister, essen- 
tially negating the election results. 

Since then, die United States and its 
allies have given Cambodia substantial 
amounts of aid. But they have not 
conditioned it on further democrati- 

zation, such as the establishment of 
independent courts, election commis- 
sions and other institutions. There was 
little protest when Mr. Hun Sen’s party 
began forcing independent voices out 
of the government, refusing to register 
new political parlies and otherwise 
moving to reimpose one-party rule. 

Last weekend military forces loyal to 
Mr. Hun Sen attacked and, at least in the 
capital, defeated forces loyal to die other 
prime minister, Prince Norodom Ranar- 
iddh, who has Bed to Paris. Now Mr. 
Hun Sen’s noops are said to be rounding 
up political enemies; at least one senior 
official from the losing side is reported 
to have been executed. In the coun- 
tryside, a civil war may be resuming. 

Chi Tuesday, U.S. officials properly 
condemned Mr. Hon Sen’s use of force, 
while still declining to label it a coup — 
because then die law would require a 
cutoff of aid. The international com- 
munity needs to do more. Before all 
hope is lost of getting Cambodian 
democratization back on track, the 
United States as well as Cambodia's 
neighbors in ASEAN should make 
clear that they will not recognize a 
government installed by coup d’fitat, 
that they will not keep giving aid to an 
illegitimate regime and dial they won’t 

an effort to pretty op the coup. Anything 
less is a disservice to those 89 percent 


Expansion’s Risks 

The grand declarations, rippling 
flags and bright sunshine in Madrid on 
Tuesday could not obscure die serious 
differences within NATO over how far 
and fast it should grow. Those di- 
visions may ultimately defeat the pur- 
pose of expansion, which President 
Bill Clinton heralded as the creation of 
a Europe that for die first time is un- 
divided, democratic and at peace. 

At American insistence, expansion 
will initially be limited to Poland, Hun- 
gary and the Czech Republic. That 
restricts membership to the most qual- 
ified countries and limits the cost of 
expansion, which may help make this 
dubious plan acceptable to the Senate. 
A two-thuds Senate majority is re- 
quired to approve die plan. 

Most of NATO’s 16 current members 
wished to add Romania and Slovenia as 
well. Weeks of negotiation were re- 
quired to finesse the problem. In the end, 
a NATO oommuniqufi made clear that 
additional members would be added in 
the future, and conspicuously noted that 
Romania and Slovenia were making 
progress toward admission. But no date 
for round two was set, and no explicit 
commitment was given to any country. 

While this compromise may be dip- 
lomatically elegant, it only delays a 
potentially enervating membership 
fight. France, having bowed to the 
American preference in Madrid, will 
no doubt insist on Romanian mem- 
bership next time the question comes 
up, most likely in 1999. 

Romania may have historic ties with 
France, but only last year did it shed the 
deadening regime that came to power 
after the fall of communism. Polit- 
ically. economically and militarily it is 
in no shape to join NATO. 

If Romania is offered membership in 
the next round, how can NATO justify 
denying acc&s to Estonia, Larina and 

Lithuania? They are at the moment at 
least as democratic as Romania and 
more vulnerable to any future Russian 
security threat, the unspoken reason for 
expanding NATO in the first place. Yet 
Washington remains wary about 
adding the Baltic countries because 
their admission is anathema to Russia. 

Altogether, 12 countries want to join 
NATO, including Albania, Slovakia 
and Bulgaria, which to varying degrees 
are still suffering from Communist 

At some point, die addition of new 
members will weaken the alliance by 
patting in question the security guar- 
antees that remain NATO’s core. 
Americans, for instance, admire the 
courage of Poles, Czechs and Hun- 
garians, who survived decades of So- 
viet rule. It is less clear whether most 
Americans see the defense of those 
countries as vital to American security. 
The case for placing an American nu- 
clear shield over Romania or Slovenia 
may be even harder to make. 

Wherever expansion stops, a new 
division in Europe will probably- de- 
velop. Draw the line at Poland, Hungary 
and the Czech Republic, and die rest of 
Eastern Europe will be left out Push it 
farther south, and Bulgaria may still 
remain outside. Move it east, and it hits 
the Russian bolder. From any such di- 
vision, economic and political isolation 
of those left outside is bound to grow. 

Absent the Cold War with its hard 
military boundaries, Europe has 
slowly been moving toward the state of 
unity and peace that Bill Clinton seeks. 
Russia, the giant in the East, is today 
more democratic and less threatening 
than at any time in its history. Ex- 
panding NATO now may well com- 
plicate. if not undermine, the trans- 
formation of Europe. 


U.S. Ambitions Outstri 

P ARIS — The Madrid NATO meet- 
ing left a fundamental question un- 
settled. What is the larger policy into 
which NATO expansion fits? 

Robert Hunter, the U.S. ambassador 
to NATO, has made the NATO case in 
the best terms possible. NATO 
provides a permanent framework for 
trans-Atlantic cooperation, and its ex- 
pansion, he says, avoids the renational- 
tzation of Western defense while re- 
inforcing Europe’s unification. 

Expansion is meant to provide se- 
curity to Central and Eastern Europe, 
and even to Russia. Fair enough. The 
intentions are benign. But what is the 
administration’s larger conception of 
America in the world? Various general 
statements of policy have been put for- 
ward, ranging from a sentimental neo- 
Wilsonianism. which sees the world’s 
eventual and harmonious coming-to- 
gether under American leadership, to 
severe prescriptions of global hege- 
mony, with “rogues” dealt with by 
U.S. arms. None really makes sense 
either in terms of political possibility or 
today's American domestic opinion. 

These ideas are also Eurocentric or 
Atlanticist at a time when American 
interests and opinions (and “history”) 
seem to be moving Asia- ward. In Asia 
they certainly don’t fit There is not 
going to be any harmonious melding of 
American, Chinese, Japanese and In- 
donesian interests and institutions under 
America’s leadership — or hegemony. 

By William Pfaff 

Ame rican policy discussion of Asia 
today emphasizes conflict — economic 
conflict, certainly, but also political con- 
flict and , according to some of the more 
excitable or irr esponsible commenta- 
tors, die prospect of war with Chin a, or 
China's civilization, or indeed, if im- 
precisely and implausibly, with a Chin a 
allied with “Islamic civilization.’’ 

As for die Middle East, there is no 
harmony there. Israel is already on the 
edge of war, or at least of an even worse 
form of civil struggle and repression 
Than now exists, in which the United 
States will be implicated, and for which 
Washington today seems to have no 
policy at all, only a deliberate abstention 
from policy — which makes absolutely 
no sense. Tbe United States is already 
the hegemonic power in die region, but 
it is incapable of using its power even to 
salvagers own interests. 

It comes as no surprise that the Clin- 
ton a dminis tration larks a clear general 
conception of policy and aims. It can be 
argued that apart from the Monroe 
Doctrine and what might be called the 
default mode of American policy, iso- 
lationism, tbe United States has had a 
general conception of foreign policy 
aims during only three periods of its 

The first was in the decades leading 
up to and immediately following the 

Spanish- American War of 1898, when 
the United States acquired an empire 
under the influence of the writings on 
sea power and commerce of Alfred 
Thayer Mahan. 

The second was after World War L 
when the United States promoted na- 
tional self-determination in Central and 
Fagtiara Europe and the creation of tbe 
League of Nations (which, of course, 
the Senate subsequently voted against 
joining). This exercise in Wilsonian 
idealism about world organization was 
renewed in 1944-45 when the United 
States created the United Nations. (The 

Senate, for its part, is again in the mood 

of its predecessor of 1919.) 

The third was containment of Russia, 
die policy articulated in 1947 by George 
Kerman, subsequently turned into an 
ideologized and heavily militarized 

inunism, disorder and “rogue states.” 
With respect to the latter two matters, 
this policy is to an extent still with us. 

A general conception of policy be- 
comes essential when the country un- 
dertakes a major change in its national 
commitments, including very serious 
do wnside risks. This is the case with 
NATO expansion. 

Moreover, there is a crucial political 
question. Is the United States govern- 
ment today capable of sustaining die 
policies to which this administration is 
committing it? Everyone already ac- 
knowledges that Senate ratification 

of NATO expansion is uncertan 
In June, Senator Joseph 
Democrat who favors expansion, note 
theless warned that Congress cannott 
expected to continue to suppprt.lX£ 
co mmitm ents to NATO and Biropenr 
less there is a much increased Eurcroea 
contribution to NATO costs (wfekai ft 
Europeans will certainly resist) antins 
less Europe takes over foe Bosttiaopfirf 
lem in June 1998, when the lunile 
Stales is set to leave the Tern* 
Yugoslavia. V "i.r 

•fiiis is consistent with die Gob 
gross's present reluctance fo payAmfet 
Jean obligations to the UN and othe 
in ternational agencies, and its p r e dSka; 
tion for attempting to legislate fcircig 
policy for other countries, as irrfli 
Hehns-Buiton case. . r - v \ 

Moreover, if the European Comnm 
sion condemns the Boemg-McDomjffl 
Douglas merger, which seetm tiS£f 5 
the congressional reactkm can be una 
gined. And while. Europe remains’; 


There is a contradiction in the God 
ton administration’s porition that ^f 
leaders refuse to admit. Its. ambition 
policies lack deep roots in CocgrfeS 
and popular np inmn. The threat tb it 
ambitions lies at home, not abroad: T» 
ignore this is hubris. : v 

International Herald Tribune. ' 

6 Las Angeles Tones Syndicate. 

Europe Can No Longer Be Europe Without America 

many Americans know 
die difference between Slo- 
venia and Slovakia? 

Here am I, a card-carrying 
foreign policy savant with a 
Weltanschauung for every oc- 
casion, and I keep mixing the 
two up. (Slovakia is backward 
and grumpy, its language like 
Polish; Slovenia is cheerfully 
enlightened, has a language 
like Serbo-Croatian and — 
[y because it provides a 
bridge &om the West to 
Hungary — is a candidate for 
membership in NATO next 
time around.) 

If even pundits paid to pon- 
tificate can't keep die two 
straight, why should readers 
break their heads over which 
one deserves entrance to the 
world’s safest club? 

That nativist question is at 
the heart of the argument to 
come after the decision Tues- 
day in Madrid to invite Hun- 
gary. Poland and the Czech 
Republic to begin entering 
NATO. Why, senators will 

By ‘William Safire 

ask, should America's military 
protection be extended over 
countries so foreign to oar 
shores and our concerns? 

The reasons should be laid 
out in a prime-time speech and 
press conference by President 
Bill Clinton. Unfortunately, he 
doesn't do foreign-policy fire- 
side chats, and his postelection 
promise to meetthe press corps 
monthly was soon roigotten in 
his fear of being asked em- 
barrassing domestic questions. 
That leaves the task of selling 
NATO enlargement to unre- 
constructed Cold Warriors. 

The essential reason for 
bringing the formerly captive 
nations of Eastern Europe into 
tbe successful European- 
American military alliance is 
to deter any future move into 
Europe by a resurgent Russia. 

But Russia is no longer a 
threat Who needs to insult 
nice guys in Moscow by in- 
viting their neighbors into our 
club? Indeed, if there is no 

Russian threat, why have a 
NATO at all? 

Answer Now is the strategic 
moment fo prevent such a threat 
from appearing. An ounce of 
easy expansion today is worth a 
ton of confrontation tomorrow. 
Russia is down but far from out; 
with its literate population and 
unlimited resources, now un- 
stultified by communism, it 
will regain superpower status 
soon, u its future leaders are 
tempted again to extend Rus- 
sia’s sphere westward, they 
will be deterred — as before — 
by NATO’s military pact 

But if, as we hope, our 
prudence proves unjustified 
and a democrat like Boris 
Nemtsov is elected fo lead 
Russia into the rule of law, then 
our children can expand the 
alliance to include Russia 
(against a possible Asian 
threat) or disband it entirely. 

A less spoken-about reason 
for bringing Eastern nations in 
from the cold has fo do with the 

nation that plunged the world 
info two wars in this century. 
“For many Europeans, NATO 
expansion and the American 
tote are directed against their 
fear of tbe Germans,” a frank 
German spokesman told John 
Vinocur of the International 
Herald Tribune (1HT, July 7). 
“I don’t want people to be 
afraid of us. Therefore, I want 
the Americans, and I want 
NATO enlarged.” 

Tuesday's historic act not 
only surrounds reunified Ger- 
many with Polish and French 
allies but further involves 
America in keeping peace. 
Europe has a habit of breeding 
wars, hot and cold, world and 
local, that require American 
participation to end. It may 
well happen again; the world is 
not gening larger. Does it cost 
America less in lives and trea- 
sure to stop European war be- 
fore it starts? 

Of course it does. Just as 
NATO deterred war in West- 
ern Europe for tbe last half- 
century, a NATO allying the 

United States and Canada wzti 
all European democratic na 
tions should work for tite nexa 
What some Rossophiles see a 
provocation is plain preven 
tion, and prevention pays. . / 

Does enlarging tbe NATC 
club get us Americans 'inti 
European affairs more deeply 
Yes. And we'll be denounced* 
“hegemonists” for om-nrach 
wanted presence. Charles di 
Gaulle may have said tha 
“France cannot be France with 
oat greatness,” but Europe cat 
no longer be Europe withou 
America — as evidenced by tin 
dithering of European and Uh 
leaders in the Balkans until flu 
United States exerted military 
muscle though NATO. 

President Clinton kept faiti 
with the Baltic nations by get- 
ting those vulnerable state: 
mentioned in Madrid's declar- 
ation as aspirants for member- 
ship in 1999, as other nation: 
pushed for Romania and Slo- 

(Or Slovakia. Whichever.) 

The New York Times 

Beijing and Taipei Appear Committed to a Collision Course 

Taxing Smokes 

The Senate included in its version of 
the tax bill a modest cigarette tax in- 
crease. The House has none. The ad- 
ministration this time around is rightly 
supporting the increase, having railed 
to support one on an earlier occasion. 

The higher tax will help discourage 
smoking, though it isn’t large enough to 
do as much of this as the tax writers 
could and should. And the Senate wants 
the proceeds used in part to reduce the 
number of children without health in- 
surance. likewise a laudable goaL The 
tax bill is frill of defects, but if it’s going 
to pass, it ought to be made as benign as 
possible. This is one way of doing so. 

Ironically, one of the arguments 
against the tax is that, if enacted, it will 
deprive the cigarette companies of in- 
come they might use to fumll the terms 
of the agreement they have reached 
with the state attorneys general who 
have sued them. The agreement would 
obligate them, among other tilings, to 
pay large sums of money by way of 
reparations for the damage their product 
continues to do. Some of tbe very 
people who are pushing the agreement. 

which would compel the companies and 
their customers to pay money in order to 
limit the companies’ future liabilities, 
don’t tike the tax — in part because it 
too would compel the companies and 
their customers fo pay money. 

to whose 

would be 
nance a 

objectives many of tnese same peop 
otherwise pretend to subscribe. We are 
into a kind of scholasticism in which 
it’s O.K. to do certain things so long 
as you’re careful to paste tbe right label 
on than. 

A cigarette tax increase is a good 
idea. If anything they ought to double 
this one and use all the proceeds for 
children’s health. Republicans are al- 
ways saying, with regard to invest- 
ment, that you shouldn’t tax behavior 
you want to encourage, only behavior 
you want to discourage. Why, except 
for some campaign contributions, is 
that not as true of smoking as of sav- 
ings and investment? 


H onolulu — The most 

contentious issue in Asia, 
which is the fate of Taiwan, 
promises to become even more 
dangerous as China intensifies 
its demands that the island na- 
tion submit to Beijing's gov- 
ernance while Taiwan’s leaders 
edge ever closer fo genuine in- 

After Hong Kong’s handover 
to Beijing on July 1, Chinese 
leaders lost no time in urging 
Taiwan to join tbe mainland. 

Less than 24 hours later. 
President Jiang Zemin told a 
crowd of 80,000 in Beijing: 
“The prospects for complete 
national reunification and all- 
around rejuvenation of the 
Chinese nation now stands 
promisingly in sight” He said 
Hong Kong would set an 
example for “the final solu- 
tion to the Taiwan question.” 


Jiang’s appeal was 
quickly rejected by President 
Lee Teng-hui in Taipei. He in- 
vited foreign journalists for tea 
on July 3 to tell them that 
Taiwan, a nation of 21.5 million 
people, exists “as a sovereign 
state” deserving international 
recognition. He applauded tbe 
departure of the British from 
their former colony but added, 
pointedly: “Taiwan is not Hong 

Behind this rhetorical dud 
stands a staik reality: Taiwan has 
become an independent nation in 
all but name. 

“We are entitled to the rights 
of a sovereign state,” said a 
Taiwanese position paper in 
May, “which includes partici- 
pation in all international orga- 
nizations and maintaining nor- 

By Richard Halloran 


The West Should Face It: 
Taiwan Is Part of China 

By Gregory Dark 


rmxHL ana !■ mow rat* rare tta ■nai nn n#v 



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blW.laenutivnal Herald TrOme. All rights reserved. ISSN: 0294JSQ52 

T OKYO — Current talk 
about an eventual show- 
down between the West and 
China could well be right — but 
not as a result of some wrong- 
doing by Beijing. It will be al- 
most entirely due to Western 
determination not to understand 
C hina. 

The flash point will probably 
be Taiwan. Beijing's show of 
force to discourage Taiwanese 
moves to independence during 
the Taiwan national elections 
last year met with widespread 
condemnation in the West. Ii 
also led the United States to 
send two aircraft carriers into 
the Taiwan StraiL 
Yet every Western nation 
recognizing Beijing, the United 
States included, has accepted 
Beijing's claim that Taiwan is 
part of China. In so doing they 
implicitly accepted Beijing's 
right to use force against 
Taiwan, and certainly to pre- 
vent moves to independence. 

If Western nations had re- 
served their position on (he use 
of force question when recog- 
nizing Beijing, things might be 
different. But they did not do 
thaL At the time of recognition, 
Beijing was insisting that while 
it hoped for peaceful reunifi- 
cation with Taiwan, it had the 
right in principle to use force. 
No one demurred. 

Most worrying is the way 
even moderate commentators 
who oppose hard-line, anti- 
Beijing policies, particularly on 
trade, take it for granted that the 
United States should use force 
to oppose any move against 

Part of the problem seems to 
be ignorance about Taiwan as a 
region of China. If Taiwan's 
people were ethnically different 
from the mainland Chinese, as 
the Chechens are from the Rus- 
sians, then some support for 
separatism would be possible 
(though the West, sticking to 
international law, refused that 
support for Chechnya). But al- 
most all Taiwanese are ethnic 

If the West really wants to 
prevent Beijing from using force 
against Taiwan, it should be do- 
ing much more to put tbe lid on 
any hopes for Taiwanese inde- 
pendence. Washington makes 
some halfhearted moves in that 
direction. But putting warships 
into the Taiwan Strait sends pre- 
cisely the opposite signal. 

The Chinese are not fools. 
The glaring illogicality of cur- 
rent Western policies is bound 
to spur a nationalist reaction. 

The writer, a former Australi- 
an diplomat, contributed this 
comment to the Herald Tribune. 

mal diplomatic relations with all 
other sovereign states.” 

Beijing, which considers 
Taiwan a breakaway province, 
adamantly refuses to acknowl- 
edge this claim. Washington, 
Tokyo and most other capitals 
deny Taiwan’s assertion to avoid 
antagonizing Beijing. And Res- 
ident Lee, who has said Taiwan 
is “an independent entity,'’ has 
stopped short of declaring in- 
dependence so as to avert an 
attack by Beijing and to preclude 
losing vital U.S. support 

The Clinton administration 
has been floundering on policy 
toward Taiwan and China, va- 
cillating between seeking ac- 
commodation with Beijing 
through favorable trade arrange- 
ments and defending Taiwan 
with aircraft carriers when it 
was threatened by Chinese mis- 
sile tests in March last year. 

Curiously, the most clear-cut 
American statement on Taiwan 
came from the speaker of the 
House, Newt Gingrich, during 
his trip to Asia in the spring: “It 
is important to be explicit with 
both the People’s Republic of 
China and Taiwan that should 
Beijing seek to reunify Taiwan 
with the mainland by force or 
intimidation, tbe United States 
will use all means necessary to 
prevent it The use of force or 
engaging in provocative actions 
by either side is unaccept- 

Beijing responded with furi- 
ous demands that the United 
States “speak with one voice” 
on China. The White House, 
however, did not repudiate the 
Republican speaker’s position, 
leading to speculation that it 
might even have encouraged 
Mr. Gingrich to deliver what 
appeared to be a carefully craf- 

site of sizable foreign invest- 
ment Taiwan is also a source of 
funds, as it holds the world’s 
third- largest foreign exchange 
reserves. The United States per- 
suaded Taipei to contribute $40 
million to the allies in the Gulf 
War. according to officials in 

Militarily, both Taiwan and 
China are modernizing their 

Over the long run. therefore, 
the emotions and chances for 
miscalculation that are the 
primary causes of war make the 
confrontation across the 
Taiwan Strait even more dan- 
gerous than the immediate con- 
flict between South and North 

For several years, Taiwan 
has been pushing away from the 
People’s Republic of C hina 
First Taipei stopped claiming to 
be the sole government of 
China; then it began referring to 
itself as the “Republic of China 
on Taiwan" (not the Republic 
of China), and later it began 
campaigning for a seat in the 
United Nations, the World 
Trade Organization and other 
international associations. 

Politically, Taiwan is a 
fledgling democracy; last year, 
it held the first direct election 
for a head of state in the several- 
thousand-year history of the 
Chinese-speaking peoples, with 

76 percent of the voters tumii 
out Just alter the Hong Kch 
handover, a poll showed thai 
large majority of Taiwane 
preferred independence or co 
turned separation from mai 
land Ch ina. 

Moreover, Taiwan's expan 
ins middle class is experience 
a degree of affluence that it do 
not want put at risk by joinii 
the mainland. Per capita incou 
is about $13,500 dollars a yes 
compared with $2,900 in mai 
land China. Almost eve 
home in Taiwan has haHmari 
of the middle class — coli 
television, refrigerator ; ai 
telephone. - ' 

Perhaps most important is 
swelling sense of ; idenli .1 
among the people of Taiwa 
including those whose familii 
fled the mainland with ti 
forces of Chiang Kai-shek afo 
their defeat by the Communis 
in 1949. In the poll taken i 
early July, more than half of d: 
respondents identified (hoi 
selves as Taiwanese, while on! 
a third said they thought s 
themselves as Chinese. . ' 

The writer, formerly wilhTh 
New York Times as a forvtjg 
correspondent in Asia and:, 
military correspondent i.'f 
Washington, contributed Tfa 
comment to the fntematibnt 
Herald Tribune. : Z". 


The sq 

strategic implications of 
the Taiwan question are sev- 
eral. The island sits astride the 
two northern entrances to the 
South China Sea through which 
passes one-quarter of the 
world's seaborne trade. A hos- 
tile power in Taiwan would 
have a stranglehold on Asia’s 
trade-driven economies, espe- 
cially if that power also con- 
trolled the South China Sea it- 
self. China has claimed it as a 
historic inland sea. 

Economically. Taiwan is a 
major trading partner with the 
United States, Japan and Euro- 
industrial nations, with 
billion worth of exports 
and imports last year, and is the 

1897: La Divine Sarah 

LONDON — The great Sarah, 
looking her very best — and her 
very best is indeed majestic, ever 

virile and ever fascinating 

reposed queenlike on a sofa, a 
book in hand. For Ae celebrated 
tragedienne is one of those to 
whom an hour unoccupied 

would mean an hour wasted. The 

peat impersonator of ft e 
“eternal feminine” intends to 
play Hamlet, not Ophelia. 
’Yes,” said Mme. Bernhardt, 
“the Prince of Wales wishes me 
to play Hamlet, or. rather, I ought 
to say his Royal Highness did me 
the honor to propose that I do so. 
l am delighted with my visit to 
London. J' adore les Anglais!" 

imous in this view. The cot Laps 
of the mark, in spite of & 
Reichsbank’s flooding of .til 
market with foreign currency i 
an effort to stabilise die ex 
changes, has been the primar; 
cause of the sinking of the. re 
serves below the level requiral 
for reparation paym ents . . f, 

1947: Disk Id entif ied' 

CHICAGO — The Army-Ai 
Fbrces whipped up^ a flui 

excitement with 

ment that one of the mysi 
“flying saucers" had, 
found in New Mexico — 
turned out to be part of an 
high-altitude weather ob 
tion device. Warrant ( 
iqcm, o- 1 • n Irving Newton, at Feat Wo 

Si nking Reserves Base, examined the flyinj 
He identified it without 

•ft can on as a high-a 

sounding device. Mr. N 
said that four of die devic 
released each day by every 
weather station in die pari* 

BERLIN — It is confirmed that 
Germany will not meet the re- 
paration payment due to the Al- 
lies. High officials belonging to 
parties of the Right are unan- 




Ppetite For East Bloc Women, 

A Dearth of Democracy 

®*P a asion is 

Senator Josenh 
favors ex^ i ® ,de ? i 

red that Con^ ^’ 1 ** 

J continue to 
as to NATO and §£? b j 
: a much increasedP^ ’*»■ 
i to NATO 


• akes over the IS*** 

*.1998 when 

set- to leave ^ 

• . *°niK, 

fS?®" eni with ,he 
toons to the k 

| By Swanee Hunt 


V IENNA — For millions of ership? At half strength and 
women in posi-Communisl solidly male. In a startling irony, 
Europe, the complexion of life bas ihe proportion of women in the 

„ MR. r 

«£AR~ J 

M0 ? 







How Libya’s Jews Met 
A Little-Noticed End 

evolved from rose-colored to raw. political system has plummeted 
The result is not simply hardship with the advent of democracy, 
dr gender inequity. The greatest In the rubber-stamp Commu- 
qosi is in regional stability. The hist Parliaments, women were 
new democracies need the eco- 

at least visible, their positions 

other countries a & '& 
non case. w it 

fer, if the European CW 
wrger, which teen^lS 
ssional reaction can 
d while Europe 

ant in foreign policv^^ e 
•* contradiction i n ih e r-i. 

ustratton's position tC 

tele deep roots in ConT 
» opinion. The ihrea^ 
lies at home, not abroad i 
i is hubris. I{ 

motional Herald T, 

« Angeles Tunes S\ n j lt Jlf 

[ tnerica 

foiled States and Canada ^ 
II European democratic a 
ons should work for the neu 
fljal some Russophita s«b 
cowocation is pLin pm* 
Ofli and prevention pats. 
Does enlarging the NATO 
job get us Americans he 
iuropean affairs more 
r es. And we’ll be denounced* 
‘begemonists” for our mmfr 
minted presence. Charles ifc-I 
iaulle may have said da 
'France cannot be France 
rat greatness.” but Europe a 
id longer be Europe uidm 
America — as evidenced b»fr 
inhering of European and IN 
eaders in the Balkans unulife 
.tailed States exerted miliar, 
noscle though NATO 
President 'Clinn-n kepiisd 
Vith the Baltic nunon* hat- 
ing those vulnerable w 
nentioned in Mjond's data- 
ition as aspirants for memta 
•hip in 1999. as ether tuna; 
austhed for Romania and ft 

(Or Slovaks Whichw. i 
T/ieNen l.-f 

domic energy, solid values, polit- guaranteed by quotas. Today, die 
real innovation and social cohe- pretense of representation has 
„-Mon that women bring to positions been replaced by exclusion, 
of leadership. From 1987* to 1994. the 

i Clearly, life under communism percentage of female representa- 
did not measure up to the claims tives in Parliaments dropped from 
of equal treatment for all 28 percent to 6 percent in Albania, 
domrades, but the ideal itself had from 34 percent to 4 percent 
^ome meaning. In the transition in Romania and from 21 percent 
to capitalism, along with new to il percent in Hungary, 
freedom has come rampant and Simultaneously, the percentage 
Blatant economic discrimination of women in top ministerial 
against women. posts plummeted. 

| In Russia^ women’s wages Against this gloomy backdrop. 

By David A. Harris 


5 THE 


noil? fT 

fftp?' Icrr&uj 



flipped from 70 percent of men’s a remarkably hopeful group of 

m - 

wages in 1989 to 40 percent in 
1995. Ukrainian women represent 
70 percent of the unemployed, 
and in Belarus professional wom- 
tjn search for a job three times 
I pager than their male counter- 

t Moreover, as crime has in- 
\ -qreased dramatically in the 
no-hoids-barred environment of 
Central and Eastern Europe, life 

300 female leaders from East and 
West arc convening in Vienna this 
week. They will lay out strategies 
to jump-start women’s economic 
recovery, to protect women's 
rights and to increase their polit- 
ical representation. Delegations 
from 19 post-Communist states 
will adopt country-specific 

Why this focus on women? 

T) Ml 


fpr women has become more First, because full democracy re- 
dangerous. Trafficking in women, quires the full participation of 


increasing exponentially, is 
leaving behind ravaged bodies 
dnd spirits. 

i Olga was a shipyard clerk in 
Poland, laid off during the eco- 
nomic downturn. She was waiting 

women. But so does a cohesive, 
integrated society. When women 
have a strong role, the society 
benefits as a whole. 

In my four years in Central 
Europe, no moment has been 

Cables when a recruiter signed her more moving than my meeting 
np to come to Germany, prom- with the women who survived the 

J . I ■ f .1 f* I * * I . 1 AAP 

King to double her income for the 
$ame work. At the border, she 
handed over her passport. Her es- 
cort then photographed her being 

Srebrenica massacre in July 1995. 
A year later, as refugees in the 
Bosnian town of Tuzla, they were 
planning a commemoration for 

£ped by his crony and threatened the 8,000 unarmed boys and men 
to send the pictures to her mother, killed by Bosnian Serb forces. 
With no passport and with over- After listening to hours of 
1 whelming shame, her life on the weeping and accounts of atroc- 

streets began. 

I Since the Iron Curtain was lif- 

jties. 1 asked these Muslim vic- 
tims if they could invite to the 

ted, the number of such incidents comme mo ration the Serb women 
has soared. By 1993, there were in nearby cities who were also 

4n estimated 8.000 Polish pros- 
ecutes in Frankfort alone. 

searching for missing brothers, 
sons, husbands and fathers. The 

I There is an ugly cohesion to women nodded, then added 
these scenarios. After all, why simply, “We are all mothers.” 

Should we expect women to be 
Cunning corporations within an 
economic system that treats wom- 
en as a commodity? 

If we’re smart, those are the 
voices we'll magnify. 

The writer is the U.S. ambas- 

Meanwhile, in the midst of sador to Austria. She contributed 
these economic and legal calam- this comment to the International 
Kies, where is the political lead- Herald Tribune. 

Wary of Free Trade 

Regan ting "Free Trade 
Doesn't Create More Jobs. It Cre- 
ates Reiter Jobs" (Opinion, July 
2) by James K. Glassman: 

lire title of Mr. daysman’s ar- 
ticle says it ail. This is wonderful 
if there is the same number of 
better jobs. But if there are fewer 
better jobs, this necessarily im- 
plies the disaster of unemploy- 
ment for some. 

Many remedies have been pro- 
posed for a situation in which the 
same amount of goods and ser- 
vices is produced with less work. 
These might involve reducing the 
workweek or other means of shar- 
ing fewer jobs. Or an increasingly 
automated and prosperous society 
might just agree to support non- 
working people. 

We seem, however, to be a long 
way from adopting any of these 
alternatives. Until that happens, it 
is natural for people to be sus- 
picious of increases in efficiency, 
and therefore also of free trade. 



Indians Stereotyped 

A recent American Topics 
column 1 “ Indians in California 
Search for Official Recognition." 
July 3 1 described Native Amer- 
icans’ search for a sense of in- 
tegrity and cultural identity. 

A headline on a baseball story 
three days earlier showed the ste- 
reotypes they must struggle 
against: “Indians Club 19 Hits in 
Scalping of Yanks’* (June 30 i. 



Munich Conference 

Regarding "Guilt and Emo- 
tion .. Not Strategy,’ Prompt En- 
largement" (Opinion. July 7) by 
Jim Hoagland: 

Mr. Hoagland said that Czech- 
oslovakia. Poland and Hungary 
were ‘ ‘wronged by the Europeans 
at Munich.” In fact, Czechoslo- 
vakia was the only country 
wronged in the Munich Confer- 
ence of 1938. 

Poland and Hungary were in- 
volved, not as victims but as fel- 

low claimants of Czech territory. 
Shortly after the Munich agree- 
ment, they were allowed by the 
Western powers to seize parrs of 
Czechoslovakia — the Teschen 
district was ceded to Poland and 
parts of Slovakia went ro Hun- 
gary. Poland, of course, was 
Hitler’s next victim, but Hungary 
was allied with Nazi Germany 
from 1941 to 1944. 


Neuilly-sur-Seine, France. 

Cigarettes and Children 

Surely too much has been made 
of the role of advertising in glam- 
orizing smoking for young 
people. Anyone who ever traveled 
in the former Soviet Union can 
recall having never seen a bill- 
board ad for cigarettes — or a 

If anything has been re- 
sponsible for making smoking 
seem glamorous to children, it 
is the fact that it is forbidden to 


Austin. Texas. 

N EW YORK — Thirty years 
ago this summer, the world 
was transfixed by the war raging 
between Israel and its Arab neigh- 
bors. But days after that, fighting 
erupted hundreds of miles away, 
beyond the gaze of the interna- 
tional news media, as another 
campaign was ruthlessly being 
waged: to drive an already di- 


minished Jewish community from 
its historic home in Libya. 

For Libya’s 4,000 Jews, the 
remnants of a community that had 
numbered nearly 40, 000, it was the 
third and final ppgrom since 1945 
and the end of a rich, complicated 
and little-heralded history. 

Jews lived continuously in 
Libya for more than two millen- 
nia. Settled in Cyrene — eastern 
Libya today — by the Egyptian 
ruler Ptolemy I in the third century 
B.C., they predated the Muslim 
conquest in 612 A.D. by more 
than 900 years. Over time, the 
community was augmented by 
Berbers who converted to Juda- 
ism. Jews fleeing the 15th- and 
16th-century Spanish and Por- 
tuguese inquisitions and. from the 
1 7ih century'. Jews resettling from 
Italy. By 191 1. the year Ottoman 
rule over Libya ended and Italian 
control began, the Jewish pop- 
ulation numbered 20,000. It 
nearly doubled by 1945. 

The end of World War II saw 
Libya under British rule. The vast 
majority of Libya’s Jews had sur- 
vived. despite die conscription of 
several thousand into forced labor 
camps under Italian Fascist con- 
trol and the deportation of a much 
smaller number to Nazi concen- 
tration camps. Until this point, it 
should be noted, Muslim-Jewish 
relations in Libya were cordial. 

Beg innin g in 1945, however, 
the Arab League’s -pan-Islamic 
and anti-Zionist propaganda 
fanned the flames of hatred in 
Libya, resulting in extended ri- 
oting against Jewish neighbors. 
The toll included 130 dead and 
nine synagogues destroyed. 

A second pogrom followed 
three years later, sparked by Liby- 
an nationalists eager for indepen- 
dence from the British. A quick 
British response and Jewish self- 
defense limited the damage. Still, 
15 Jews were killed and hundreds 
were left homeless. 

The new atmosphere of fear and 
insecurity on the one hand, coupled 
with the powerful attraction of the 
new state of Israel for this deeply 
religious community* on the other, 
led to the emigration of all but 
6.000 Jews by December 195 1 . the 
year Libya gained independence. 

Notwithstanding constitutional 
guarantees provided by the new 
Libyan nation, restrictions on 
Jews were gradually imposed. By 
1961, Jews could not voie, hold 
public office, serve in the army, 
get passports, purchase new prop- 
erty. acquire majority ownership 
in any new business or supervise 
their own communal affairs. Yet 
the Jews remained. 

Then, in June 1967, war broke 
out in the Middle East, inspired by- 
Nasser’s pan-Arab appeals, Liby- 
ans look to the streets and attacked 
the Jewish community. 

By the time calm was restored. 
18 Jews in Tripoli, the country’s 
capital, were dead. The toll might 
have risen had it noi been for the 
courage of Cesare Pasquinelli, 
Italy’s ambassador to Libya, who 
ordered all Italian diplomatic mis- 
sions in the country to extend their 
protection to the Jews. A few 
Muslims helped as well, including 
one who at great risk hid the teen- 
ager who was to become ray wife, 
along with her parents and seven 
siblings, for two weeks until they 
were able to leave the country. 

Within a matter of weeks, all the 
remaining lews of Libya fled 
abroad, urged to do so “tempor- 
arily" by the government. Each 
was’ permitted one suitcase and the 
equivalent of $50. Most headed for 
Israel; 2.000 went to Italy. 

To no one’s surprise, this tem- 
porary exodus became permanent. 
Colonel MoanunarGadhafi seized 
power in 1969 and the following 
year announced a series of laws to 
confiscate the assets of Libya's 
Jews, issuing bonds providing for 
“fair compensation” within 15 
years. But 1985 came and went 
with no compensation paid. 

And so, with only a few 
scattered international protests, 
scant press attention and silence 
from the United Nations, another 
once-thriving Jewish community 
in the Arab world came to an end 

The writer, executive director of 
the American Jewish Committee . 
contributed this conunem to the 
International Herald Tribune. 


;m of the voters n® 
l after the Hi® ^ 
:r. a poll 
lajontv of Ta** r 
d independence^ 
separation from ® 

to 3 - • 


lie class is exp®* 

. of affluence 

it put at risk byr- 


Cl T SOfldolhB*® 

5d wfth >: .w* 

mina. Aln»« 

, Taiwan ha>w^ 
middle cla» - 
>n. reingeoW 

tps most 
r -«nse of * 
the people 

i g those w-hL .' 

e mainland * 
f Chian c 

feat by titeJ-J^ 

i. In the 


s Taiwan^. . 

said d*> *?' 
ves as Chine*-*** # 
■ck Tim* * ;*’ 


In Praise of the Music of 

By Douglas R. Hofstadter. 632 pages. 

$30. Basic Books. 

Reviewed by Michael Dirda 
„ fc IGHTEEN years ago Douglas R. 

'V jp, Hofstadter brought out * 4 Godel, Es- 
ejer, Bach,” a razzle-dazzle study of 
pattern in music, art and mathematics 
composed with a whiz kid’s sass and the 
penial playfulness of a Lewis CarrolL 
Sibtitled “an eternal golden braid'.’,— 
ijpte the initials — “GodeL Escher, 
Bach” went on to become a modest 
Besi-sellex, win a Pulitzer Prize and, not 
least, develop a cult following: People 
didn’t just read the book; they meth- 
odically annotated its pages, tried to 
fathom the mathematical and musical 
examples, marveled at Hofttadter’s in- 
genuity (one dialogue between a tortoise 
and Achilles could be read backward 
and forward, making sense in either 
direction), and secretly or publicly en- 
vjed an intelligence at home with Chop- 

1 in etudes, Bongard problems, artificial 
intelligence research, number and rn^sic , 
theory, and assorted matters of episteni : ' 

Hofstadter might Have easily become 
a public intellectual, cognitive science’s 
answer to Cad Sagan, but instead he 
hunkered down at Indiana University 
(with a brief sojourn at the University of 
Michigan) and devoted himself to long- 
term research on artificial intelligence. 
0ver the. years his admirers had to be 
content with a volume on creativity. 
‘'‘The Mind’s I,” co- edited with Daniel 
C. Dennett, and a compilation of witty 
cjplumns from Scientific American, 

‘ ‘Metamagical Themas.” But now, just 
past 50, Douglas Hofstadter bas tri- 
umphantly returned with a companion 
volume to -his youthful masterwork, an 
inquiry into the nature of language and. t 

translation, an exhilarating blend of 
autobiography, analysis, wordplay, and 
elegy. "Le Ton Beau de Marot: In Praise 
of the Music of Language” isa source of 
myriad delights — and occasional, 
minor annoyances. 

At the heart of the book beats a short 
lyric written for a sick young girl by the 
French poet Clement Marot (c. 1500- 
c.1575). Titled “A Une Damoyselle 
Malade.” the poem consists of 28 lines, 
of three syllables each, in rhyming 
couplets. One might translate its be- 
ginning this way: “My sweet deary I 
send cheer — / All the best!/ Your 
forced rest/ Is like jailV So don’t ail/ 
Veiy long,/ Just get strong ...” Or, then 
again, one might apt for a more modem 
tone: “Hi Tootsy Get well!/ Hospital’s 
prison/ And prison’s helL Get well ...” 
Some readers might prefer a witty, avian 
approach: “Chickadee/ 1 decree/ A fine 
day./ Dart away/ From your cage/ And 
engage/ In brave flight/ So you might/ 
Flee the croup ...” These English 
versions — by Hofstadter, his mother, 
and his wife — are only three out of the 
dozens reprinted in this substantial 
volume, every one accompanied by a 
shrewd microanalysis of its linguistic 
successes and failures. In themselves 
these translations and commentaries ad- 
dress most of the practical problems of 
poetic re-creation and recreation. A col- 
lege course could be built around 

B UT translations alone don't make a 
book that’s fan to read. Most of “Le 
Ton Beau” consists of apparently ram- 
bling (but actually carefully planned) | 
essays on seemingly anyth mg that 
Douglas Hofstadter feels will illuminate 
the nature of language. He compares 
various English versions of Pushkin’s 
“Eugene Onegin,” Dante’s “Inferno” 
and a Basho haiku. He discusses the 
false dream of machine translation and 
the real possibility that computers may 

attain artificial intelligence. He de- 
scribes a variant of chess called cbesh 
and suggests a Gnostic-like theory for 
the individual soul’s survival after 
death. He imagines a grammar of jokes, 
analyzes the differing appeals of various 
typefaces, and mulls over the unac- 
knowledged connotations of the Ger- 
man word for nipple. Bruslwarze (breast 
wan). With surprising vehemence he 
attacks the common use of the word 
“guys” to include women. For a mo- 
ment he even wonders bow the word 
“jazzercise” might be rendered in Ara- 
maic. - • 

A few sections of “Le Ton Beau de 
Marot” may prove hard slogging, but in 
general the book is far more accessible 
than its famous predecessor. Hofsadter’s 
voice on the page is chatty, energetic and 
slangy: “Picture Holden Caulfield all 
grown up, now a university professor, 
writing a book about translation.” This 
strategy is a good one, for it compels 
Hofstadter to keep even the most ab- 
struse maners plain and jargon-free. In 
this same spirit, much is openly auto- 
biographical, often touchingly so. Hof- 
stadter’s wife, Carol, died suddenly a 
few years ago at a very young age. and so 
“Le Ton Beau de Marot’’ — Marot’s 
graced tone — slowly modulates into 
“Le Torabeau de Ma Rose” — the 
gravestone of my rose. It isn’t often that 
a major work of scholarship is also a love 

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


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By Alan Trascott 

A S a result of playoffs in 
Hyannis, Massachusetts, 
recently, two strong Amer- 
ican women's teams will be 
battling the rest of the world 
and each other in the World 
Championsips in Tunisia in 
October. One team — Mar- 
inesa Letizia. Lisa Berkowitz, 
Tobi Sokolow, Mildred 
Breed, Randy Montin ancHiU 
Meyers has plenty of na- 
tional experience bnt relat- 
ively little at world level. 
Meyers is (he only one in the 
group with a work! tide. 

In Hyannis, they defeated 
the team dial eventually 
claimed the second spot for 
Tunisia: Kathie Wei-Sender, 
Juanita Chambers, Lynn 
Beas.Beth Palmer and Kem 

Sanborn, all of whom have 
"won at least two world titles. 
On the diagramed deal San- 
born as West had to defend 
skillfully against three no- 
trump, which her partner had 
doubled imaginatively on the 
strength of her heart holding. 
The opening club lead was 

♦ K64 
' 9 A J 10 
0 — 

■ • +- 


♦ A?’" - ♦ 10 5 

V — - 9KQ6 

0 - O - 

*AQ8 *3 

won with the jack, and South 
led a low diamond. West won 
with the jack and could not 
afford to lead another club. 
Instead she shifted to a low 
spade, and dummy won with 
the queen. South ran her dia- 
monds, reaching the ending 
shown at left. 

The big question now was 
whether South would score a 
second club trick. South led 
the spade nine, and Sanborn 
carefully played the jack. 
South was now helpless. If 
she had played low from 

hearts, making 140, and San- 
born’s team gained 6 imps 
when they were in danger of 
losing 9. 

♦ KQ-64 
A J 10 8 7 2 
f 104 


* A J73 

A 10 5 2 
r ' K Q G 4 3 
+ 8 3 


♦ 9 

0 — 

♦ K JO 2 

dummy. West would have 
cashed the spade ace and 
played a fourth round. South 
won with the king and led 
another spade, but East pro- 
duced the ten and led a club to 
give the defense five tricks. 

In the replay North-South 
did well to stop in three 

•: Q J 6 *8 72 

+ AQK7S5 *93 

+ 88 

0 AK953 
* K J 10 2 

Neither side tos vulnerable. The bsJ- 

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West led Utc club ^evea. 


PAGE 10 



Sojourner Finds Surprising Mars-Earth Resemblance 

By Kathy Sawyer 

Washington Post Service 

Sojourner turns to another rock after analyzing “ Barnacle Bill. 

W ASHINGTON —The first 
chemical analysis of a 
rock on the Martian sur- 
face has produced surpris- 
ing evidence that the evolution of the 
Red Planet was much more like Earth ’s 
than researchers had suspected. 

The analysis by the Sojourner rover 
shows dial the rock, known as 
“Barnacle Bill,’' appears to be unex- 
pectedly Earth-like, containing about 
one-third quartz — a substance never 
before found in any extraterrestrial ob- 
ject Quartz requires repeated healing, 
melting and crystalizing by processes 
deep inside the planet, scientists said, 
processes more complex than those de- 
tected before on Mars. 

“It requires beat sources that last a 
long time,'* said Hairy McSween of the 
University of Tennessee during a brief- 
ing at NASA's Jet Propulsion Labo- 
ratory on the latest scientific informa- 
tion from Pathfinder mission. “So a 
much more complex geologic history is 
implied by the presence of quartz.” 
While the cooking-cooling cycle is 
fairly well understood on Earth, he said, 
“On Mars, we’re going to have to 
struggle with what these heat sources 
could be, I suppose.” Scientists bad as- 
sumed Earth to be unusual in its ability to 
manufacture quartz, Mr. McSween said 
Mars was already characterized as 

more Earth-like than any known world, 
but that still left vast differences be- 
tween the planets. One was the absence 
on Mars of the constant recycling of the 
surface that occurs on Earth — a kind of 
recurring face-lift accomplished by the 
movement of giant crustal plates. In this 
process, magma, or molten rock, is 
heated, melted and cooled, over and 
over, enabling some of the material to 
crystallize into quartz. 

The face of Mars, larking this re- 
paving process, is believed to show rem- 
nants of all its phases — from 4.5 billion 
years ago to the present. Scientists are 
not sure what land of interior processes 
are at work below tire Martian surface, 
so how it manages to make quartz is a 
fresh mystery. And yet, “it now appears 
that Mars, too, has a crust that can crys- 
tallize quartz,” McSween said. The key 
te understanding may be in the texture of 
the rock, which has not been imaged in 
much detail yet, be said. The quartz 
resembles that found in beach sand. 

The preliminary findings came from 
the rover Sojourner's 1 0-hour encounter 
with Barnacle Bill, conducted Sunday 
night using the Alpha Proton X-ray 
Spectrometer, a device that determines 
tiie composition of rocks by how sub- 
atomic particles bounce off of them. 

“I sure didn't expect this,” Mr. Mc- 
Sween said of the quartz finding . “This 
site really is a rock festival.” 

dozen or so meteorites found on Earth 
and classifie d as having traveled from 
Mars, scientists said. Until now, that 
assumption was based on comparisons 
with analyses of the Martian atmosphere 
by the 1970s Viking spacecraft 

Among that batch of Martian me- 
teorites is the one. named Allan Hills 
84001, in which scientists have repeated 
signs of possible ancient microbial lifc- 
If yon mixed Allan Hills 84001 wi& 
some granite, it could be a lot like this, ” 
Mr. McSween said, referring to 
Barnacle Bill. None of the meteorites 
ever found contain quartz, he said. 

Barnacle Bill, which may have been 
washed down from the ancient Martian 
hi ghlands , contains an estimated 58 per- 
cent silicates , which implies it is one- 
third quartz, according to an estimate by 
Rudolph Rieder of Germany’s Max 
Planck Institute for Chemistry, chief 
scientist for the rover's X-ray probe. 
The rock is also one- third feldspar (the 
most common mineral in Earth s crust) 
and one-third orthopyroxene, also com- 


evidence for the 

origins of tiie 

here are three components of 
this puzzle, scientists said. 
The teftro has the chemical 
analysis, and it has images of 
the rock. The missing link is the mineral 
stage in between the two. To find the 
mineral composition, the team used a 
conversion table that * ‘ converts . chem- 
istry to mineralogy," Mr. McSween 

said. The combination 
fo und in Barnacle Bill is-con- % 
sfctenr with andesite. Dr. 'Rieder/. 
said, a kind of volcanic rock namiex 
for the Andes Mountains where' iris; 
found. The scientists said tfyey bftd: 
sumed Barnacle Bill would he basafi^ 
more common kind of volcanic.' 
tha t makes up the sea fioqr ah^' ' 
volcanoes such as those intfaeHat . 
Isl ands Andesite is much richer bit 
than basalt. yy- 

Barnacle Bill “looks a httfe bif; 
Swiss cheese.’ * Mr. McSweeh&sud/ 
holes appear to be formed ^by- 
bubbles, which is typical in lava, - 
said. But they could be particles qj 
granite mixed with basalt and carrie 
downstream together and compacted ii 
to a rock. Or the ingredients (toqknbtv^ 
been mixed in the impact of an f 
on ancient Mars. In other words, 
it was not clear what kind of j 
formed the rock. 

Nicholas Thomas of tiie Max PI 
Institute for Aeronomy reported f ' 
Imager for Mare Pathfinder (IMP).* 
era was now being used as a telesco 
well as a general purpose camera; : 

He revealed the first image of the I 
moon Deimos 14,000 miles_(223(M)i 
iometers) overhead and said the. 
will eventually try to produceimages oj 
Earth twinkling in the Martian hea\ 

He said the dust that fills the atmosp 
apparently provides “spectacular 
sets,” as revealed by IMP. 

Diet Drug Users Are Cautioned About Risk of Heart-Valve Disease 


By David Brown 

Washington Post Service 

weight-loss drugs that are 
prescribed aboat 20 mil- 
lion times a year in the 
United States may cause a rare, severe 
form of heart-valve disease, a group of 
doctors has reported. 

Twenty-four women taking fen- 
fluramine and phenteimine, a combin- 
ation known commonly as ‘ ‘fen/phen,’ ' 
have developed symptoms, and five 
have required open-heart surgery to re- 
pair damage to one or more of their four 
heart valves, the physicians announced 
at a news conference at the Mayo Clinic, 
in Rochester, Minnesota. 

There is strong circ umstantial evi- 
dence, but not proof, that the two drugs 
are playing an active role in the de- 
velopment of the heart disease. The 
report is sufficiently worrisome that the 
Food and Drug Administration plans to 
contact thousands of doctors by mail to 
inform them of the possible problems 

from the two appetite suppressants and 
to ask them if they have seen cases of 
valve disease in people taking them. 

“This is a very unusual abnormality 
that is being detected,” said Michael 
Friedman, acting commissioner of the 
FDA. “This information is clearly im- 
portant enough that we want physicians 
and patients to be aware of it” 

The two critical questions now are 
whether there is a cause-and-effect re- 
lationship between the drugs and the 
disease, and if there is, how often this 
side effect of treatment occurs, he said. 

The drugs are available only by 
scription. There are no immediate pi 
to add warnings to the drugs ' labels or to 
withdraw them from the market. The 
last time the agency withdrew a drug 
was in 1992, when it stopped sales of an 
antibiotic that caused kidney failure in a 
small number of patients. 

“We have preserved all kinds of op- 
tions. It is premature to determine a 
course of action until we have gotten the 
necessary information,” he said. 

Wyetb-Ayerst Laboratories of Phil- 

adelphia, which sells fenfluramine under 
tiie trade name Pondimin, pointed out 
that the study could not rule out the 
possibility that there may be other causes 
of the women's heart problems. There- 
fore, the company said, it “is working 
with Mayo Clinic to develop a rigorous, 
prospective study which will provide 
clinical data to properly examine this 

Drugs to treat obesity are among the 
U.S. pharmaceutical industry's hottest 
growth sectors. Last year their sales 
increased 217 percent, the fifth-biggest 
rise of any category of drug, according 
to IMS America, the leading provider of 
sales and marketing data to the phar- 
maceutical industry. 

EITHER of the drugs im- 
plicated in the announce- 
ment is new. Phentermine 
was approved for sale in 
1959. and fenflu ramin e in 1973. In the 
past they were often used separately to 
curb appetite, but a study published in 
1984 .showed they could achieve the 

same weight-loss results, with fewer 
side effects, if they were used together at 
lower doses. 

Although they are neither approved for 
combination use nor labeled for use for 
more than a few months in a row, the two 
drugs today are mostly prescribed to- 
gether and often for long periods. (Many 
drugs, for many diseases, are similarly 
prescribed in an “off-label” way.) 

The announcement was made by phy- 
sicians from the Mayo Clinic and Mer- 
itCare Medical Center, a complex of 
hospitals in eastern North Dakota. Their 
report will appear in tiie New England 
Journal of Medicine at tiie end of August 
However, in the interest of public health, 
the journal agreed to let the researchers 
announce foe findings beforehand, 
something it does once a year or less. 

The announcement did not involve 
dexfenfluramine, an anti-obesity drug 
sold under foe name Redux. Approved 
for sale in April 1996, it is nearly four 
times more popular than foe fen/phen 
combination. Redux has been linked to 
foe rare development of an often fatal 

More Clues on Arresting the Spread of AIDS 

By Lawrence K. Altman 

New York Tunes Sen-ice 

EW YORK — When men 
are infected with HIV and 
another sexually transmitted 
disease, like gonorrhea, their 
semen contains about eight times as 
much AIDS vims as is found in semen 
of men who do not have dual infections, 
a new study has found. 

The findings indicate that control 
measures used in some countries to 
battle AIDS are worthwhile and suggest 
that widespread detection and treatment 
programs for sexually transmitted dis- 
eases could help prevent many ne*\ HIV 
infections, said foe study’s authors, 
from the University of North Carolina 
School of Medicine in Chapel Hill. 

The study was carried out in Malawi 
where an estimated 15 percent of sexu- 
ally active adults are infected with HIV, 
the virus that causes AIDS, chiefly from 
heterosexual intercourse. The study was 

reported in The Lancet, an international 
medical journal published in London. 

The findings are relevant for de- 
veloped countries, said Dr. Anthony S. 
Fauci, the director of tiie National In- 
stitute of Allergy and Infectious Dis- 
eases, which is one of a number of 
federal agencies that paid for the study 
along with the World Health Organi- 
zation. Family Health International con- 
ducted the study along with the Uni- 
versity of North Carolina researchers. 

“The study has important economic 
and public health implications,” Dr. 
Fauci said, “because if you can treat a 
sexually transmitted disease with a few 
doses of relatively inexpensive antibi- 
otics, you may prevent a number of HIV 
infections that would cost a lot more to 

For many years. Dr. King K. Holmes 
of the University of Washington, an 
international leader in sexually trans- 
mitted diseases, has urged that more 
attention be paid to such infections be- 

cause of their possible role in the spread 
of HIV infections. Many experts be- 
lieve that open sores, like those from 
herpes and syphilis, can make it easier 
to transmit HIV or become infected 
with it. 

Also, many experts say that in the 
absence of a vaccine against AIDS, 
health workers need to look more to 
indirect ways to prevent the transmis- 
sion of HTV. Among them are improved 
treatments for sexually transmitted dis- 
eases, the promotion of condom use, 
counseling about sexual behavior and 
more needle-exchange programs for in- 
travenous drug users. 

Scientists believe that cells infected 
by sexually transmitted diseases can 
produce natural substances known as 
cheraokines. One explanation for the 
increased risk of HIV infection or trans- 
mission is that cheraokines could ease 
the entry of HIV-infected cells into se- 
men and speed up the rate of viral rep- 
lication there. 



1 1tems often 

s4lsl in a series 
10 Release 
14 Ruin a bow 
is Conductor 

16 Dessert 

ir Big name In 

1BM.V.P. of Super 
Bowls I and l( 

30 Controversial 
baseball owner 
M Place to unwind 


Haidpfcfced apartnmts, Pate & suburbs. 
For rent, furnished 

Tel Paris: 433(0)1426835 60 
Fax Paris 433(0)1 4268 35 61 

53 Time of one's 

*4 Possess rve 
Latin pronoun 
as The buck slops 

36 Singer Zadora 
27 Swallow flat 

20 “Am only 

one . . .?’ 

31 Many an 
Olympic siding 
gold medalist 

32 Photo 

34 Beats 

37 Theme of this 

36 Erstwhile 
40 Part to grab 

«i Senator's claim 

43 a-porter 

44 1972 U.S. Open 
«a Football 

Hell -of- Farmer 
48 Australian 

si The Fighting 
Tigers, tor short 
sa Ule 

54 Broke bread 
85 Best Actress of 


sa Mafcofm-JamaJ 
Warner co-star 

SO Banks. 


•i Altaian leader 
before die 
Soviet invasion 
S 2 Russo ol 

03 Spotty Pontiac 
*4 Chap 
06 July 15, e.g. 

«e Bad lighting? 


1 Underground 
Railroad leader 

2 Tick off 

3 Reserves 

4 8eB sound 

s Sides In a 
classic balde 

• Rancher's 

7 Canyonlands 

a Approached 
boldly, with to" 

9 Too handle 

io Ambulance 


if Empanadas 

12 Devastated 

13 Muslim wear 

10 Part of many 
town names in 

21 Geneve's 

26 fn French it's 

30 Semifegendary 
Greek poet 
si Big name in 
33 A shot 
35 Word from 
se Head of a 

37 Gets rid of , as 
an old car 

38 Questioned 
30 When you can 

start to drive 
41 Hogan's 

43 Aristocracies 

4 S Treats 
40 Straight 
47 ‘Sleepless in 
40 Massachusetts 
Ave. bldg., in . 

•o Language of 
New Zealand 
52 The States 




W 1 


5P 1 







OiVew York Times/Edited by Will Shorts. 

Solution to Puzzle of July 9 

so Subject of 

57 Pioneering 
se Colony member 

stadia assn aaana 
tsmtata scamta tuanena 
□□an □□□□nancoa 
□nans oaaaa 
HQtiaoHnna anna 
anas aaaaaa 
□□□ aanaa taaaora 

Hdtaaa aaaaa ana 
□Sanaa aana 
□□as □□□□□□□□□ 
osaao anaaa 
□□□□□□□□as anaa 
□□□on □□□□ &aa 
onsao mcnaa 

An earlier epidemiology study from 
Tanzania suggested that treating other 
sexually transmitted diseases in people 
infected by HIV could cut the trans- 
mission of foe virus by 40 percent. 

Using laboratory techniques that were 
developed recently, a team of American. 
Malawi and Swiss scientists headed by 
Dr. Myron S. Cohen at the University of 
North Carolina showed that antibiotic 
treatment for other sexually transmitted 
diseases, particularly gonorrhea, in 
people with HIV greatly lowered foe 
amount of the ADDS virus in the semen 
of HIV-infected men in Malawi. 

“The more virus in semeo.” Dr. Co- 
hen said, “foe greater the chance for 
transmission to someone else. 

T HE study looked at 135 HTV- 
infected men. Of this group. 
86 suffered from pain on ur- 
ination because of inflamma- 
tion caused by other sexually transmit- 
ted diseases — including gonorrhea, 
syphilis and genital ulcers presumably 
caused by herpes simplex virus, 
chlamydia and trichomonas — and were 
treated for them. The remaining 49 
HIV-infected men did not have other 
sexually transmitted diseases but were 
treated for skin conditions. 

After a week of treatment, the amount 
of HTV dropped significantly in the se- 
men of men with other sexually trans- 
mitted diseases. After two weeks of 
treatment, the amount of HTV was sim- 
ilar to the levels seen in men who had 
been treated only for skin conditions. 

Dog’s Best Friend, 
Allergies and All 

New York Tunes Service 

EW YORK — When people 
discover that something in the 
bouse is making them sick. 

they get rid of it, right? Guess 

again. Not when that something is a dog 
or cat, a study of 341 adults in Van- 
couver, British Columbia, has reported. 

Each person studied by Dr. Stanley 
Coren, a professor of psychology at the 
University of British Columbia, had 
been found to be allergic to dogs or cats, 
and each bad been advised by a doctor to 
cease sharing living quarters with a pet. 
But barely one person in five complied 
with these instructions. 

And 122 of the people studied had 
been found to be allergic to pets long 
enough ago for the animal they had been 
living with at the time to have died. But 
70 percent had replaced the dead pet 
with a new dog or cat. 

Dr. Coren, in a letter in The British 
Medical Journal, said: “The emotional 
gain from the companionship associated 
with owning a pet is clearly sufficient to 
offset the physical discomfort caused by 
continued allergic reactions.” 

condition called primary pulmonary hy- 
pertension. especially when a person 
takes it for more than three months. 
Redux is chemically closely related to 
fenfluramine, the “fen” of the fen/phen 

The fen/phen combination sup- 
presses appetite by increasing foe hor- 
mone-like substance serotonin and, to a 
lesser extent, several other compounds 
that convey signals between nerve cells. 
The substances have myriad effects on 
other organs, as welL 

In the five people whose heart prob- 
lems were so severe they needed sur- 
gery, the diseased valves bore a shiny, 
fibrous coating that is characteristic of a 
condition called carcinoid syndrome, in 
which a tumor produces a flood of sero- 
tonin in foe bloodstream. 


Normally, however, people; with cart ■- 
cinoid have dramatic symptoms (sum 
as facial flushing, nausea and diarrhea) 
long before they develop the valve dis* 
ease. Those symptoms were lacking in V 
the patients described at the Ddwsconj ; 
ference, said Michael D. McGoon, 
Mayo Clinic cardiologist who is one i 
foe authors of foe forthcoming j< “ 

The Mayo and MeritCare, 
came to the attention of doctors j 

they developed symptoms of cor 

heart failure, or had heart murmurs, 
physical examination. The 
include short-windedness and, income., 
cases, swelling of the legs. va- 

Abtrannaily functioning valves were 
then seen on -ultrasound films of their 
hearts, called echocardiograms. . X p 


A Master 
Does Old 

By Suzy Menkes 

International Herald Tribune 

P ARIS — Ail Yves Saint 
Laurent's collections stand 
shoulder to shoulder against 
foe flood tide of nonsense in 
cun-ent couture. But even by his own 
elevated standards, the show the de- 
signer sent out Wednesday was ex- 
ceptional. Pure, harmonious and a 
symphony of restraint, jt created a 
moment of fashion grace. 

Referring to the past — from the 
1890s to the 19S0s — is endemic to 
this fall season. But Saint Laurent 
showed how his dreams of the dark, 
glowing world of Holbein and Rem- 
brandt could be translated into mod- 
ern life. The fur collars and rich colors 
never overwhelmed the clothes. 

“The 15th century, the Renais- 
sance — I love to look at those paint- 
ings.” said a slim-line Saint Laurent 

The Holbein hats — pouchy velvet 
berets with curling feathers — were 
the first signals of the theme. Saint 
Laurent introduced them with slender 
suits that were familiar, but always 
precisely proportioned and lyrically 
colored. There were glowing Old 
Master hues: ale-brown velvet 
dresses; black coats with lush sable 
collars; deep green for a pin-striped 
pantsuit; a purple satin stole lapping a 
crimson dress; foe jeweled velvet 

It was as though the painted colors 
and textures had seeped off the canvas 
and into clothes that were the distilled 
essence of Saint Laurent That meant 
evening dresses so effortless in their 
drapes and shaping that they seemed 
to pour like melted chocolate over the 
body, perhaps leaving shoulders bare 
or a side open. The historical touches 
were paint strokes: a jeweled band at 
the neckline or a simple black velvet 
dress with flowing trumpet sleeves. 

The model Katoucha, back on the 
runway after five years, said: “lam so 
happy that haute couture is still what 
it was and to know that true classics 
are eternal.” 

O SCAR de la Renta also had 
a fine moment at Balmain, 
where his collection was a 
model of light-handed lux- 
ury. The butterfly fluttering around 
the Grand Hotel ballroom symbolized 
the airiness of clothes that were sump- 
tuous in their fur trimmings and fancy 
laces, but oh-so-light. Ballerina- 
length tulle dresses were worked into 
airy cages, and sweeping coats, worn 
over narrow pants, were embroidered 
as if in Venetian glass. A flash of nude 
on a black dress like a transparent 
zipper was a winy touch. 

Yves Saint Laurent's long suit . 

Showing at fast pace, foe simple 
suits with skirts or pants were en- 
livened with trilbies, pompon hairdos 
and fur trimmed high-heel boots. An 
ovation greeted de la Renta wbo has J 
renewed his Balmain contract until 
the year 2000. 

Valentino fell into a trap you would 
never expect from such a savvy and 
refined designer. He went fra* hip cou- ■ 
ture. The result was a Star Trek 
through the 1980s, that included the 
model-turned-actress Cindy Craw-, 
ford looking like an iron-p umping 
Princess Leia of “Star Wars.” 

Why would Valentino, a master of' 
pretty, womanly clothes have tnlcert 
this route? Could it be inspired by the 
designer’s new muse, the beautifi^; 
elfin -faced Rosario of Saxe-Coburg, 
who had given her hair a chic mod- . 
emist chop? 

‘Oh, no, { don’t think it was me,” 
said the princess at the late- nigh t fete •• 
the designer threw at his French chat- 
eau. Who would want to take the - 

Who takes the responsibility for.\ 
making a pretty, nice collection lode ! 
so weird, with punky hair, feathered ■ 
quills, spiky necklaces, coat-hanger " 
shoulders, hold-your-breath belts and t- 
needle-heeled bootees? ’ 

What seems cool from Brilpack ’ 
designers looked unexpectedly hrash. - 
on Valentino’s ninway: the ultra-short ’ 
skirts with flight paths of sequins onl 
the hose, the openwork on leather ' 
pants the aggressive silhouette. 

Valentino's bid to be “modem”- 
distracted from fine things, like" 
dresses deftly scalloped at neck. and; r 
hem or cut in geometric layers of -i 

his best ^ ey showed * e designer at . 


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which is typicaf^ ^ i ■ 
U they cou!d P be 'J V( 
with baSi^- 

fnoath^ 1 “tod o*. 



THURSDAY, JULY 10, 1997 

PAGE 11 

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Continental and American Fight for Aerolineas 

By Anthony Faiola 

1 Vaxhutgion Peat Service 

WASHINGTON — American and 
Continental airlines are vying to buy 
part of the flag carrier of Argentina — 
with the winner expected to gain an 
edge in Latin America, one of the 
fastest-growing markets worldwide. 

People close to the negotiations said 
Continental Airlines Inc., with its part- 
ner Newbridge Latin America, is seek- 
ing to buy about 45 percent of Aer- 
olineas Argen tina?; , which is based in 
Buenos Aires. American Airlines Inc. 
is seeking to buy 10 percent of Aer- 
olineas outright, while associated in- 
vestors would purchase an additional 
35 percent or more. 

With its smaller investment, Amer- 
ican apparently hopes to avoid serious 
reviews by die U.S. Justice and Trans- 
portation departments, where it already 
is trying to win approval for an alliance 
with British Airways PLC. 

Pan-ownership would bring a U.S. 
airline an important marketing alliance 
with Aerolineas Argentinas, the 
second-largest carrier in South Amer- 
ica. American and Continental have 
hired powerful lobbyists to state their 
cases before the Aerolineas board and 
to Argentine officials. American, the 

favoriie to win the deal, even signed up 
the departing U.S. ambassador to Ar- 

The offers, the people close to the 
negotiations said, are near $300 mil- 
lion. plus significant reinvestments. 
Both American and Continental would 
provide Aerolineas with larger, more 
modem planes. The Aerolineas board, 
controlled by Iberia Airlines of Spain, 
is expected to decide the winner within 
the next two weeks. 

Aerolineas Argentinas, once a 
poorly managed, unprofitable govern- 
ment-owned dinosaur, is now con- 
sidered a wise strategic investment. 
The airline went private in 1990 mid, 
after a string of losses, began to mm 
around its operations. It controls 37 
percent of the airline traffic in South 
America and 31.7 percent of the traffic 
between Buenos Aires and the United 

Although it still maintains a heavy 
debt load of more than $600 million, 
the company broke even during the 
first quarter of 1997. This year the 
airlines is projecting a profit for the 
first time, said Manuel Moran, chair- 
man of Aerolineas Argentinas. 

The potential deal is another ex- 
ample of the continuing globalization 
in the airline business. Increasingly, 

U.S. carriers are forming alliances with 
foreign partners to better compete in the 
rapidly growing international market. 

American and British Airways are 
trying to form what would be the 
largest alliance to date. However, 
United Air Lines Inc. and Lufthansa 
AG; Northwest Airlines Inc. and 
KJLM; and Continental Airlines Inc., 
Air France and Alitalia have struck 
similar deals. But any agreement 
American or Continental con strike 
with Aerolineas carries with it a bonus: 
an alliance with Iberia, one of the five 
largest European carriers. 

“There's no doubt that the resulting 
alliance, would become a formidable 
global competitor," Mr. Moran said. 

The fight for dominance of the skies 
of Latin America dates to the time when 
Pan American World Airways began a 
shuttle service between southern Flor- 
ida and pre-Castro Havana. Among 
U.S. carriers. Eastern Airlines and Pan 
Am sparred for decades. But when the 
airlines went bankrupt in 1991, Amer- 
ican bought Eastern’s routes and 
United picked up Ran Ain’s. 

American became more aggressive, 
building a Latin American gateway at 

Miami International Airport “They’re 
)t of mone; 

making an awful lot of money down 
there, said John Pincavage, airline 

analyst for Dillon Reed & Co. in New 
York. “For them, having Aerolineas 
would make them a powerful leader." 

American operates the most flights 
to the region — more than 200 daily, 
mostly from Miami. Its Latin Amer- 
ican operations are the most profitable 
in its global network: The carrier made 
$30 million on its South American 
routes during its last quarter, while 
losing $1 million on flights to 

Given that Aerolineas controls 37 
percent of intra-South American 
travel, an agreement also would give 
American wider access to secondary 
cities across the continent 

But if Continental succeeds, it 
would become the third major U.S. 
competitor in Latin America, along 
with American and United. Not sur- 
prisingly, Continental argues that 
American should not be permitted to 
win the fight saying its market share to 
Buenos Aires would grow to 78 per- 
cent and its Latin American share 
would increase to about 60 percent. 

In Argentina, President Carlos Saul 
Menem said that regardless of who 
buys the stake, the government will 
continue to be a shareholder in die 
company and it would not lose its flag 
carrier status. 

Manila Vows to Defend 
Peso as Stocks Plummet 

Central Bank to Use All ‘Policy Weapons’ 

C. *TZ*M tm Cur buff F nun Oafkartm 

MANILA — The Philippines 
threatened Wednesday to raise interest 
rates even higher and buy more pesos to 
defend the currency from outsiders it 
said were deliberately seeking to un- 
dermine it, but the stock market plunged 
4.1 percent on fears of a devaluation. 

The Philippine central bank vowed to 
use all its “policy weapons" to protect 
the peso as trading reached $1 billion, 
the second-busiest day on record here. 
The central bank 's net sales of $ 1 billion 

from its currency reserves helped keep 
~ e peso at 26.4(3 to the dollar. 

The bank raised overnight borrowing 


rates Monday to 30 percent from 24 
percent to try to defend the currency. 

President Fidel Ramos blamed the 
pressure on the peso on outsiders seek- 
ing to undermine the currency and on a 
deliberate media attack. 

“The unusual behavior of the ex- 
change rates as well as the obvious at- 
tacks on the peso,' ' he said, “indicate that 
there could be a deliberate effort to un- 
dermine the peso from outside sources. 
We are also seeing a media disinform- 
ation campaign of some kind.” 

A group of high-ranking government 
officials and business leaders has re- 
commended that Mr. Ramos consider a 
“possible gradual depreciation” of the 
peso and an exchange-rate review. 

Gabriel Singson, governor of the 
Central Bank of the Philippines, said the 
country would maintain its exchange- 
rate policy and expressed confidence it 
could hold off speculators. 

He brushed aside concerns about the 
depletion of reserves and high interest 
rates aimed ar defending the peso, say- 
ing: “This is temporary. As the situation 
normalizes, we will bring it back to 

normal levels." The central bank chief 
did not say how long the Philippines 
could maintain this strategy. On May 
20. the country had SI 1.8 billion of 
international reserves, according to of- 
ficial data. 

Mr. Ramos, meanwhile, did not spe- 
cify who he believed was behind the 
alleged- media campaign. But he re- 
peated charges by the Trade Department 
that a foreign newspaper had “twisted 
statements" of officials regarding a 
possible peso devaluation. 

The Philippine Stock Exchange in- 
dex fell 109.46 points to 2 .589.20 — its 
lowest level since May 22. when the 
index hit 2.586.69 points — on concern 
about the level of reserves that could be 
needed to defend the currency. 

Foreign fund managers avoided the 
Philippine stock exchange on expec- 
tation of a depreciation of the peso, 
analysts said. 

Malaysia entered the fray, attempting 
to warn off speculators in the wake of 
the de facto devaluation of the Thai baht 
July 2. Bank Negara, the country’s cen- 
tral bank, wanted to restore confidence 
in the market and create an environment 
of stability and predictability for long- 
term investors, according ro Ahmad 
Mohd Don, the bank's governor. 

Andrew Johnstone, a Bangkok-based 
investment consultant with IMC Invest- 
ment, said there had been a growing 
collective risk inherent in Asian cur- 
rencies since the baht was floated. 

“While I do not suggest straight par- 
allels between Thailand, Philippines or 
Malaysia and Indonesia," he said, “the 
pressure is now in the market for re- 
gional ctuTencies to reconsider their 
coupling — however loose — to the 
dollar. ’ ’ ( AFP, Bloomberg ) 

France Plans New Outlays 
But Says Taxes Won’t Rise 

Canqaltdty Oar Sic# Fnm Dapiarha 

PARIS — Finance Minister Domi- 
nique Strauss-Kahn announced fresh 
spending for job creation and economic 
growth Wednesday and said taxes would 

not be raised to pay for the measures. 
Mr. Strauss-Kahn said new economic 

Bloomberg News 

\ BRASILIA — A group leal by Bell- 
South Corp. won the right Wednesday 

jto operate mobile-telephone services in 
jSao Paulo, heralding a new era of com- 

Atlanta-based BellSouth was one of 
serven groups that had bid for the job. 

‘•This is, without question, a land- 
mark award for us,” Charles Miller, 

BellSouth’s bid was nearly $1 billion 
higher than the second-highest bid of 

ion in Latin America's largest orb- 
telephone market 
■"WM BellSouth bid 2.65 billion reais 
' ($2.46 billion) for the concession, more 
titan four times the government-set min- 
imum price, $500 million more than 
analysts had forecast for the highest bid 
find almost $1 billion more than the 
next-highest bid. 

j “Obviously, BellSouth feels the de- 
jnand is there," said Patrick Jurczak, an 
analyst at ING Barings in New York, 
fit’s pure and simple economics." 

; BeUSoutb's group, which includes 
the media group O Estado de Sao Paulo; 
Drupo Safra, a Brazilian hanking and 
industrial concern, and Splice, a Brazili- 
an telecommunications equipment 
inaker, won the right to operate the Sao 
Paolo service for the next 15 years. 

president of BellSouth International, 
said in a statement “Sao Paulo is one of 

the most densely populated cities in the 
world with only 12 telephone lines per 
100 people. The growth potential for 
this market is simply staggering." 

Sao Paulo is the most sought-after 
market for mobile services in Brazil 
because of its large and wealthy pop- 
ulation. Metropolitan Sao Paulo has 
about 17 million people and a huge 
pent-up demand for both fixed-line and 
mobile telephones. 

For each of the 500,000 users of 
mobile telephones in the region there 
are at least three city residents waiting 
for a cellular telephone. The average 
wait for a new line from Telecomu- 
nicacoes de Sao Paulo SA. known as 
Telesp, the local state-controlled phone 
company, is about two years. 

1.63 billion reais submitted by a 
led by AT&T Cotp. France Telecom 
also was among the seven bidders for 
the license. 

BellSouth said that the BCP group 
would invest $500 million to install a 
digital mobile phone network in Sao 
Paulo based on TDMA technology. Ser- 
vice is expected to be ready within 12 

Canada’s Northern Telecom Ltd will 
be one of the principal equipment sup- 
pliers, a BellSouth spokesman said 

Brazil currently has 2.6 million mo- 
bile-phone users, as many as the rest of 
Latin America combined and the mar- 
ket could mushroom to 24 million sub- 
scribers by 2005, according to a report 
by Booz-Allen & Hamilton Inc. 

The Sao Paulo concession is one of 
10 that the government hopes to award 
before the end of the year to open 
Brazil’s telecommunications industry 

to widespread competition. The first 
concession was awarded last month to a 
group led by Telesystem International 
Wireless Inc. of Canada, which offered 
$316 million for the right to operate 
mobile-phone services in Brazil’s west- 
central region, which includes Brasilia, 

the country’s capital. 

The bid was 25.4 percent above the 

measures totaling 11.1 billion francs 
($1.87 billion) would be financed by 
savings or a transfer of funds from other 
programs. There will “not be a single 
franc of additional public deficit," he 

The finance minister also said that 
economic growth in the second half 
would be well above the first-half level 
and that France should end the year with 

minimum price. 

A third concession for the northeast- 
ern states of Bahia and Sergipe was also 
awarded Wed nesday to a group led by 
Italy’s SILT, or Societa Finanziaria 
Telefonica SpA, for 236 million reais, a 
2.6 percent premium over the minimum 
price of 230 million reais. 

BellSouth has operations in Argen- 
tina, Chile, Panama, Peru. Uruguay, 
Venezuela, Nicaragua and Ecuador. It is 
also entering the Colombian phone mar- 

BellSouth shares were trading ar 
$45.75, down 75‘cents, late Wednesday 
in New York. 

annual growth near the 2.3 percent fore- 

cast in its initial budget He said the 
government would therefore be able to 
prepare the 1998 budget on the basis of 
renewed economic growth. 

New measures to reduce the public 
deficit will be announced “very rap- 
idly” if deemed necessary by a national 
audit to be released July 21, he said. 

The previous French government's 
1997 income tax cuts were one area that 
would be reviewed, be added. 

Mr. Strauss-Kahn declined to com- 
ment on whether the aim of the ad- 
ditional measures would be to reduce 
the French public deficit to 3.0 percent 

of gross national product, the level set 
by the Maastricht T reaty for inclusion in 
Europe’s planned economic and mon- 
' etary union, 'or whether the goal was 
simply to have a deficit close to that 

“The aim, if the deficit is too large, 
will be to make it less lrnge,” he said. 
He said there was no incompatibility 
between measures to boost growth and 
the need to reduce the deficit. 

' ‘There is a narrow path between the 
election campaign of Lionel Jospin." 
France's prime minister, "and the eco- 
nomic realism necessary for European 
integration,” Mr. Strauss-Kahn said. 

The main item in the new spending 
measures is an increase in the school 
allowance paid to families on modest 
incomes at the start of the school year in 
September. This accounts for 6.5 billion 
francs of the total. 

A further 2 billion francs has been 
earmarked for the first stages of the gov- 
ernment's plan to create 700,000 jobs for 
young people over two years. 

Separately, figures released by the na- 
tional statistics institute showed that 
French consumer confidence jumped 
sharply in June after the Socialists' elec- 
tion victory, and the benchmark CAC-40 
stock index finished at a record 2,950.56 
points, up 20.75. (AFX, Reuters) 


Foreign Investors Stay Cool to Business Ventures in India 

By Miriam Jordan 

Special to the Herald 7Hbwie 

A ^ 

; NEW DELHI — Searing heat did not keep foreign ex- 
ecutives away from India during the past few summers. But 
judging from the vacancies at hotels in the capital, investors 
are not sweating it out this year. 

j “We’re at pre-reform levels," said Peter Fulton, general 
manager of the Hyatt Regency Hotel here, referring to the 
moves toward a free market that started to dismantle India’s 

socialist economy in 1991. At the normally bustling Hyatt, 
about 50 percent of the 518 rooms were filled last month, as 
against 74 percent in June 1996 and 80 percent in June 1995. 

Foreign institutional investors are pouring money into the 
Bombay Stock Exchange, pushing up the blue-chip index 
about 30 percent since April and helping it outperform other 
Asian markets this year. But foreign direct investment is not 
taking off. 

Finance Minis ter PaJaniappan Chidambaram has said that 
India needs $200 billion in power, ports and roads in the next 

five years, of which $50 billion is expected to come from 
abroad. India attracted a record $2 J billion in foreign direct 
investment last year, but that figure pales to the $40 billion in 
investments that China received. 

Still, India has crossed important investment hurdles. The 

$2.5 billion Enron Corp. power project, which had been 
delayed by cancellation ana ret 




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July 9 

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July 9 

Libid-Libor Rates 

ofr/fan ApmkJi 

Defer D-Morfc Franc Slatting Franc Van ECU 

lnWfl&l S*t-5N* 2%-3Vta IVa-W* 3W-3W 

3-nwnlh 2>V»- 3y* IPta- IT* 6<M»- 7W» 3*fc- Vt- V« 4Vi-4V» 

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Near York (M 

Sources? Reuters. LtorOs Bank. _ 

Rates oppScobk to Interbank deposits of SI mMiai ffiJntfnwn (of equivalent). 

Key Money Rates 

renegotiation, is back on track, 
and the reform agenda survived the transfer of power to a 
center-left coalition government last year. 

While the government has passed some investor-friendly 
measures, it has sent mixed signals with protectionist policies, 
and red tape continues to make doing business difficult 
“My view is that reality has set m,” said Scott Bayman, 
president and chief executive officer of GE India, a subsidiary 
of General Electric Co. of the United States and a major 
investor in India. Three years ago, GE projected that by 2000 
it would generate $2 billion in revenue here. Now, Mr. Bayman 
reckons that may not happen until 2005. 

The reality, according to many investors who are already 
here, is that India's economy will continue to grow around 7 
percent annually and that there is no danger of reversing moves 
toward a free market. But die pace of progress will be slower 
and the opportunity may be less than in Southeast Asia and 
China in the short term. 

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Sootok 0Hfea 

Inquiry Targets Soros 

Bloomberg News 

NEW YORK — French financial investigators have 
met in New York with two executives from die hedge 
fund run by the billionaire investor George Soros as pan 
of an insider-trading investigation in Eurotunnel SA 
shares, Soros Fund Management said Wednesday. 

The investigation involves a 47 percent drop in the 
Eurotunnel share price in the spring of 1994 before a $1.2 
billion sale of additional stock that Eurotunnel held to 
raise cash. 

In the new offering, Eurotunnel shares were priced at 
22.50 French francs ($3.80), less than half as ranch as the 
shares were trading for in January 1994. 


The Corum Gold Coin Watch. An 
authentic $20 U.S. gold piece, first min- 
ted more chan 100 years ago, is halved 
and an ultra-flat mechanical or quartz 
movement is cushioned inside. Heralded 
as one of the world's great timepieces, it 
is prized as an heirloom to be passed on 
from generation to generation. 

Maitres Artisans dHorlogerie 


For tafonrmJon write to Corum, 2301 La Chaux-dc-Foods, Switzerland. 


PAGE 12 



Investor’s America 

c r T 1 • t nf eu. J Slide by Blue Chips 
Spike Lee Ines for Mam Street Smother s Tech Rally 

By Stuart Elliott 

New York Times Service 

I f ^ 'vvwCiin • 

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■- !."••.-*• /- ~ V_ .» . •: .' * • J i-i- c*hV*« 

NEW YORK — Six months 
after the director Spike Lee joined 
forces with DDB Needham World- 
wide to open a joint-venture 
agency, their fledgling shop has 
accumulated a robust rosier of ac- 
counts with h illing s that (bey es- 
timate at $35 milli on. But Mr. Lee 
anA hU giant partner still confront 
challenges as they seek business 
from mainstream marketers. 

“We keep having these 
obstacles, these hurdles, we have 
to face and have to keep knocking 
them down,” Mr. Lee said as he 

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assessed the results so far of Spike 
DDB. which he beads as president 

E Yandex Holyfiekl boxing rematch 

and a campaign for Finish Line 
Inc., a retailer of athletic footwear 
and sportswear, that centers on an . 
et h n i cally diverse group of chil- 
dren playing touch football. 

The youngsters in the three Fin- 
ish Line commercials, which Mr. 
Lee directed and helped create, 
speak to one another in voices that 
are at once tough and affectionate. 
For all their intensity, they can still 
behave like, well, children; one 
play is interrupted when an ice- 
cream truck pulls up. 

“It looks like Main Street, 
America,” Mr. Lee said after 
screening rough cuts of the spots. 
“Lawns, trees, grass — you’d 
never know it was Brooklyn.” 

Group that handles blue-chip con- 
sumer brands such as Budweiser 
beer and McDonald’s fast food- 
The goal, according to Mr. Lee 
and Mark Robmsotu.the manag in g 
director of Spike DDB in New 

York, is to create product pitches 
aimed not only at blacks but more 
broadly at the younger, trend-set- 
ting. sports- and fashion-conscious 
consumers who compose what 
they rail the “urban market.” 

‘It’s very important you look 
at” the accounts and projects as-.’ 

Bloombem News 

NEW YORK —The main stock- 
market index fell more than Iw 
points Wednesday, as declines m 
Exxon Carp, and Wells Fargo & Co. . 
overshadowed a rally in computer, 
ehaixc c n ii rrafl Kv Motorola Inc. s. 

signed to and pending at Spike 
DDB, Mr. Lee said. Those include 
promoting the Motown Records 
unit of Philips Electronics NV. 
Pinnacle trading cards and the cov- 
erage of the 1997-98 National 

-. i. <’■> ,v« 1,4* r - 
- -. >. ~~ •’-ff-W*.-: 

Very briefly: 

DDB, which he beads as president never know it was Brooklyn.” 
and creative director. But the commercials were shot 

“No matter what you do or say, by Mr. Lee, a' Brooklyn native, in 
they say Spike DDB is just a black that New York borough, which has 
agency that has expertise in the also figured in films of his such as 
black market, * * he added “P’s just “Do the Right Thing.” 
a sham e, and it hurts us, bat we'll The unlikely setting for the Fin- 
just let the weak speak for itself.” ish Line commercials is emblem- 
That work includes a campy atic of what Mr. Lee wants to ac~ 
musical spot for the SET Pay per complish with Spike DDB. which 
View division of Showtime Net- is 51 percent owned by the director 
works, part of Viacom Inc., that and 49 percent owned by DDB 
promoted the recent Mike Tyson- Needham, the unit of Omnicom 

But the commercials were shot Hockey League season by the Fox 
by Mr. Lee, a' Brooklyn native, in Sports unit of News Coip. 

“It’s all about telling a story'” 
he said. “It's not specifically tar- 
geting Afocan- Americans. That's 
something we feel is very important 
for the positioning of the agency.” 
Other Hollywood directors 
work for Madison Avenue, but Mr. 
Lee is unusual in wanting his own 
agency. “I got tired of just being 
the hired gun,” he said. 

McDonald’s Reorganizes in U.S. 

CHICAGO (Combined Dispatches) — McDonald's Coip., 
faced with slow sales, announced sweeping changes Wednes- 
day in its U.S. management and said Edward Rensi, president 
and chief executive of McDonald's USA, was retiring. 

Michael Quinlan, c hairman and chief executive, said the 
reorganization would divide the company’s U.S. operations 
into five geographic divisions, each with a new president and 
management team. 

Jack Greenberg, who effectively took over day-to-day con- 
trol of the domestic operations late last year, will assume the 
title of chairman and chief executive of McDonald’s USA 

(Bloomberg, AP) 

Lawsuit Seeks to Pick a Man’s Brain 

Detroit Diesel Buys Outboard 

DETROIT (Bloomberg) — Detroit Diesel Corn, said 
ednesday it had agreed to buy Outboard Marine Coip., a 

Wednesday it had agreed to buy Outboard Marine Coip., a 
maker of gasoline engines for boats, for about $500 million, 
including debt 

Detroit Diesel, a maker of diesel engines, said it would pay 
$16 a share for all of Waukegan, IUinois-basetTOutboard 
Marine's outstanding shares and assume $180 million in debt. 
Detroit Diesel's major shareholder is a unit of closely held 
Penske Carp., a provider of transportation services. 

• Boeing Co. plans to offer to change some of its accounting 
practices to ease European concerns that U.S. defense con- 

tracts will give it an unfair edge in commercial plane pro- 
duction after its purchase of McDonnell Douglas Coip. 

• Donaldson, Lufkin & Jearette Inc. plans to sell its stake in 
mortgage loans and assets secured by 38 apartment properties 
in New York, New Jersey, Florida and Pennsylvania. 

• French officials asked Washington to postpone a round of 

aviation talks that was set to take place in Paris next week, a 
U.S. State Department official said. No reason for die delay 
yras given. (Bloomberg) 

The Associated Press 

McKINNEY, Texas — Evan 
Brown has a great idea, but it is in 
his head, and that is where he says it 
is going to stay — despite a lawsuit 
filed by his former boss that de- 
mands that he start talking. 

Actually, Mr. Brown would love 
to gab about his idea of converting 
old computer code into an easier-to- 
nse higher-level computer lan- 
guage, a brainstorm that could be 
worth milli ons of dollars. 

But he refuses to do it for DSC 
Communications , his former em- 
ployer. The company fired him in 
April after he clammed up. 

Mr. Brown says DSC has no right 
to the idea, because he developed it 
on his own time and never wrote it 
down and it has nothing to do with 
the telecommunications industry. 

DSC alleged in its suit thAt Mr. 
Brown signed an employment 
agreement dint gave the company 
ownership of all bis ideas, and the 
company asked the courts to order 
him to (Hit his thoughts in writing. 

“This really is an area that’s def- 
initely on the cutting edge when you 
think about a person being ordered 
into a room to tell what’s in their 

head,” said Mr. Brown's attorney, 
Richard Sayles, who says the em- 
ployment agreement is not legal. 

“That’s something that was just 
not done in the past,” he said. 

The lawsuit was filed April 24, 
and a jury trial was set for Nov. 3. 
Mr. Brown is under court order not 
to divulge the idea to anyone else 
until then. 

A federal judge last week ordered 
Mr. Brown to start singing to his 
former employers until the own- 
ership of the idea was determined, 
saying he would be paid $45 an hour 
for his time. Mr. Brown refused. 
The ruling is being appealed. 

Mr. Brown could become a 
wealthy man if he prevails. 

DSC says his automated trans- 
lation program “would be worth 
many millions of dollars because 
numerous other telecommunica- 
tions and technology companies are 
similarly struggling to translate or 
convert their old computer code.” 

The company last year offered to 
pay him a percentage of the money 
his idea could save the company, an 
amount estimated at around $2 mil- 
lion. Mr. Brown said the offer was 
not enough. 

“I think it's going to make some 
law in Texas,” said state Judge John 
Roach, who was hearing the case 
until he was disqualified because he 
owns DSC stock. 

“It’s something everybody is go- 
ing to have to deal with in the high- 
tech world we live in,” the judge 

shares spurred by Motorola Inc. s, 
unexpectedly strong earnings. 

The Dow Jones industrial aver- 
age. closed at 7,843.43, down 
119.88 points, after coming within. 
10 points of the 8 ,000- point level, 
earlier in the day. 

The 22 percent rally in the stock 
market this year has many investors 
worried that many companies' 
shares have overshot their earnings , 
potential, especially as the econ- 
omy slowed from its brisk pace in 
the first quarter. - . J * 

“Earnings momentum is decel- 
erating right now," said Louis Na- 
vellier, who said he expected the 
first quarter’s 14 percent growth in 
profits to slow to 9 percent in : the 
second quarter. “I don’t expect the. 
Dow and the S&P 500 to really 
falter that much, but I don’t expect 
them to hit 10,000 either." Since 
reaching a year-to-date low of 
6,391.69 on April 11, the Dow has 
risen more than 1,400 points. 

The Standard & Poor’s 500- 
stock index fell 11.21 points to 
close at 907.54, while the Nasdaq 
Composite Index, which is dom- 
inated by computer companies, rose 
1.50 points to 1,486.60. Declining 
stocks led advancers on the New'- 
York Stock Exchange by an 8-to-5 

Wells Fargo shares fell 18% to 
260%, leading other bank stocks 
lower, after the company warned 
that its second-quarter earnings 
would fall short of Wall Street ex- 
pectations. The California bank 

said it expected to earn -$2-53- 
share, below the $3.69 Forecas 
Wells Fargo cited unexpected cost 
related to its $14 billion acquiatio 
of First Interstate Bancorp. . 

While the problem is specific t 
Wells Fargo, other bonks feu as wel 
JJP. Morgan helped foef thedeefin 

in the Dow, falling 3V4 to 106. 
Union dropped l-)§ to 96%. . 

an investor was doing a Large assetj 
allocation shift, selling stocks and 


buying bonds by using futures an 
the S&P 500. That would help eix- 
plaiii some of die pressure on banks, 
which are heavily weighted m . foe 
index, traders said. - . 

. Exxon fell 1 11/16 to 61% on 
signs that crude-oil supplies 
moire than ample to meet demand 
this year. Chevron fell I 9/16^ to 
close at 74 3/16. ^ 

Motorola, one of the industry’s 
bellwethers, reported .second- 
quarter profit from operations of 62 
cents a share, beating foe . average 
estimate of 58 cents. Motorola rose 
3 9/16 to 86 1/16. Intel, foe world’s 
largest chipmaker, gained 3 3/16 .to 
152 13/16,. and Texas Thstnrments 

jumped 3% to 95 3/16. - j 

Advanced Micro Devices, which} 

on Tuesday repotted lower- than- 1 
expected second-quarter net in-i 
come of 7 cents a share, rose VA toj 
close at 39. 1 

Motorola predicted that 19971 
would bring a modest recovery for] 
the chip industry after last year’s 10* 
percent drop, although not as strong! 

as it initially expected. It said it now! ; 
expected growth of 6 percent to 8| 


Tokyo Surplus Squeezes Dollar J 

CompM by Ow Staff Finn Dapatt its 

NEW YORK — The dollar was 
lower agains t foe yen and the 
Deutsche mark late Wednesday, 
pressured by fears that Japan's bur- 
geoning current-account surplus 
could hurt the dollar against the yen. 

In 4 P.M. trading, foe dollar was 
at 1 12.750 yen, down from 1 12.925 
yen at foe close T uesday . It was also 
at 1.7603 Deutsche marks, down 
from 1.7611 DM, and at 1,4575 
Swiss francs, down from 1.4645 

But foe dollar rose to 5.9445 
French francs from 5.9397 francs. It 

also gained a gains t foe pound, ~ earlier. Some traders took foereporf 
which was at $1.6860, down from as a sign that foe surplus will coii;- 
$1.6880. Earlier in Europe, the tinue to grow for some time, eon-" 

pound was hit by profit-takin; 
anticipation of a Bank of Eng! 


monetary meeting Thursday. 
Traders widely expect foe centred 
bank to raise its base interest rate by 
0.25 to 0.50 percentage point 
The dollar tumbled against foe 

trary to what some Japanese- offi- 
cials have said. 

. “The numbers weren't too en- 
couraging,” said Lee Kassler,- chief- 
currency trader at Israel Discount 
Bank. “Japan has a history of say^ 
ing things will get better, but things: 
haven’t gotten better.” ■ 

Analysts also said recent disturb®! 
an ccs affecting the Thai and Phil^ 

■ j it 

yen in Asian trading after Japan said ippine currencies had made foe doK 

its current-account surplus rose 
154.9 percent in May from a year 

lar more attractive. " " / ■' V-’H 

(AFP, Bloomberg, Market 




iv.---, Mr- 

r wq>«9! 

Wednesday’s 4 PH. Close 

The top 300 most active sJme& 
up to the dosing on WaB Street 

Thd Associated Press. 

mb um mtf ay Indexes 

js n ■ & a D 0WJ05 

Most Actives 

July 9, 1997 

High Low Latest Chge OpM 

Wgh Low LrtW Chge OpM- 

Ugh low Latest am* 

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119. MU 
37 JM 
tjh ih 
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7M 7 
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Th IM 
17h 17 

M 3h 

£ Jt 

M M 
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l« Ih 

£ £ 

Dow Jones 

h* MM U. Imt O,. 

K 79BLS1 m\M men tscas 

232BJJ0 TM7A 9 28UJ3 7B17J15 -9-5} 

UM ZBM Z3X2I 229JW 22951 -7JB 
CMP 24SU6 245M.S2 TASBJ* 74185A -27 JS 

Th - 

Mh -h 

M *H 

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Industrials 1(W1 At 1071001081 M 

6S8JQ 651 J18 6S7M 
201J5 20078 201 255 
105-01 10423 10422 
9IIL76 71156 91825 
89724 89041 89724 










AT&T l 

9Mfl 87 
7M33 UH 
65377 40 
64761 llha 
62614 IBM 
59005 69*. 
55675 14 
54269 50 

51219 43V. 
48519 55h 
« B3 W. 
43*tt 3SW. 
4387B 36M 
41336 38V. 

Um M 
85V, 86 

43A* 43S 
37M 39 


119 line 

67M 68*. 
31V. 33 iv. 

48 48*. 
3SM 39V. 

S3*. 54 i. 
95V. 96V. 
33*. 13 V, 
3SH 35<6 
35V> 36V* 

Law Latest Chge OpM ORANGE JUKE (NCTM) 

— 153100 OB.- cent. OCrUx 

Grains -M w 7-sa ns 


1531000a.- oenl. 0*rU>. DM25fl3K»- pte ol 100 pd nOUStrUUS 

K « SS S8 =SS 19 

^ ^ HS WWW n.M 

5,000 bu rw«Tii*7v os**s ow bvrfiH Jqn98 8U0 7720 ULlO -Oj® tjn m ■ ' 

JU77 250 243 2«?M 17,934 Esi-soles HLA. Tue'ssdes 3,130 Prw. open ini. 297^74 off 7ffl 

Sep 77 2J7M, TX'h 237V. .Tv 0431 TS-sSnirB I1J12 up 165 10-YEAR FRENCH GOV. BONDS tMATIR 

Dec 97 238 23154 237’A *71*: 150.7/0 FFSJ03XKJ - ptsotlOOpcJ __ ; 

Jul 77 






Sep 77 




*V » 


Dec 77 




*7ft 150,970 







May 98 251 '4 



+ 6ft 


JU 98 




♦ 6ft 


Sep *9 






Julf7 7120 71.10 7\M -0Jl--:3i 

Oct 97 743T 73J0 . 74J4 *QM 

Itec97 TtH 74.1S 7435 +aW-W»di 

Mar 98 7S70 7S43 7528 +BJ7 7, mi 

Sep 97 130318 130.44 130.72 +024.211,746- yy” 7420 HJO ISM ,+ttOS -: raw 
Dec 97 9920 77.10 7728^034 3434 Estates NA Tub's. setes -HO* - 

Est. sates HA. Tub’s, sites B0J55 
Tue'sopcnint 276.067 up 1817 


160 mr oz.- Ojllcn pcrirovot 

Jul 97 31420 —3.05 

Max 98 9450 9G50 90.78 +034 

Estates: 141-513. 

Open hiL: 215.180 off 4,161 

0 Tuff's openW 70448 up . 40- 
HEATING 08. (NNSU "=■.*■ 

4Z3B0 eon eanmperpoi 


4fh -Vh 


3M M 
.lh -Vh 
Ih -V. 

S 3 

UVh 4. 

im -h 
17H -h 
3h +Vh 


SM -th 

n a 

le +S 
Ih -Ml 


Sf ™ »*» 5“ HI" 5 -” ffia 55 S^!Rr DtuH ®: SS SS 

STfflTV -K ’S IE S 5 S SS II -S S SS 'US SJfflS. § 5 ! S 

Aug 97 24180 21340 24380 -HUB 25205 gj” “J* I" Dec 97 5660 5520 wiw _Q» 15,125 

>0 97 223.90 71631 21320 *9 Kl T7J19I Peb98 32730 32320 33423) —130 7.178 ML wPeh. «A». FV« OTk» 33,777 . „ 1n ,.. n r jTS'rilWX 


IS ^ 

-135 S3* 


161683 154*5 
136245 38*5 
1D656 I 771* 
90477 36th 
80316 25 
62833 IBM 
62527 52*. 
61967 12U 

14MS9 14070 48459 
1204.00 llEfiO 1WJ6 
165075 1642-71 645.37 

1661.11 1667J7 
1941.17 19061 
96451 96447 

+'■49 UtoidCn 
-2{0 SonMlcs 


592S6 132** 
55406 37M 
5U37« 3V*t 
48920 130* 
46866 5BM 

WV» 52V. 
151 I52M 
45M 48*1 
73 76*. 
22h Mrt 
227. 22". 
17W 18*. 

51 51h 
I1V» 11M 


31M 311s 
39* 3Vh 
laws 129M 
Si 56*. 

Sep 97 22190 7143) 22320 -9J0 T7J19I Heova ■ H/JU "4JU 44.40 —cm ».i /» nm. 

OU97 20730 20000 20720 -7 70 11742 “JJ2 fSK Prw.apw ML: 110,131 off 748 -. 

Dec 77 I7BJ0 1 7200 17140 +68# 34£*6 K, - , ° 3Z8 - 7n ?? !° “** ’ 7 *fi* HJRODOUARS (CMBQ 

Jon 98 19470 I7I£8 19470 +490 4J05 „ . _ , ■"4° 7si si masonite of 100 pd. 

Est. Ides NA Tub's, sites 31475 y -nTSc & ^ eS , r j?’ W3 -MW 94J6 7425 MJ4 

Tue'snpenim 114371 off 385 TiWSOOaneit 217.766 UP 4545 Auu97 96.75 9426 94 23 

JdlW B.10 5410 5460 ^4LX "D*; 
F6b«0 5120 5630 5490 -UR- (M. 

si mPfion-prsoMflOpci. 

Jill 77 94J6 7125 74M 

«uno tov cents per t> 

2S4W0 ms.- onus per te. 

FebTO SUB 5430 5498 -UR 

Mor»8 54® 5S75 5W5 443* 

Apr 98 5440 5465 54S8 ■ 

Bt.tetM NA Tue-tMtes *5*. 
'J409 Tinrsopenlnt 147 JW up Wtt-.'-. 

Ana 97 942S 7436 74M 1BA09 Tub's Open M I47J04 \kT I3c" 

S»97 7136 9431 9433 *0J1 549.367 ” ‘ . 

Dec 97 9409 94.05 7407 -001-444062 LIGHT SWEET CRUDE (NMBU - 

Mor« 9406 9400 9402 + KOI 307437 lAWbUL-ctaitertperbU. 

a« -«R J* £$7 1S5 in 53? Sn +aor&529 ^ri9”^”-,7A0 EJM 

Awj? BJO 22.17 aw 24867 WW 1053) -UU J^4 Sep 98 9185 KL80 93X2 +001 ZI1J87 S6097 19-84 WA3 19 JO —436. a 115 

5S2 Zi! !*SS Is® K SfS Is?? i* Qecw nn nu 73.71 +ojh 149.9*7 od9? ».» wjn wjb- -ojo xjtt- 

err" nr«77 unm 101m UII tn _3ic l jec i«r.w “un itji iw — on 

££ WS, IfSS K iS5 Si® 1S1I0 ztre ilao Maw nn na n .70 *ojo 111203 nww i».9c im i?js- -aMsm 

I'™ Sc 9/ u M OOL5D IS J unW 9168 93J6 93J5 *401 90.563 Dec 97 19.96 19J3 19J7S -42i c3&- 

S". J,aB0 imnS wsn wm sS Sep99 7164 9141 93.62 +0® -tan 98 J9.9S I9JS 193 7 -4W 21J42 

Ed. soles na Tub's, sales 18.979 
Tue's epen hit ill, I® off 1513 

WM 10K» 99W 99« S °« w . ”j?. ** S® *** S£S IKS S3-^SS‘9SS 

MM -h 

MVh Jh 

5h -th 

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<M -h 

a rVh 

JM +n 

ih _ 


19*. 4 

m -i*h 

27U Jh 

17 -Ih 

T7M 17M 
9h Th 
17*5 17*. 
4*h 4 

Kh 7SV. 
» M 

IBM. 4h 
39H 41 

M*. 4A 
IM. -Ih 
II +h 

HU 10U 
IT. Bh 
7M. » 

12 11M 

n +h 
m *ii 
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llh IM 

16V* ISM 

5H 9t 
I h 

a* a 

M JV» 

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IM +41 

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5*. +*h 

2M ZM* 
19M in 
4H 416 
IH 2 
M M 
M h 
4 » 

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m in 
2 .1* 
2S 24. 
Wh m 
II 81 
I2H llh. 

a a* 

3?? J** 
16 IM 

fe fh 

2*Jh Ml 

n n 

tv. r 

Uh. +*. 


int +1. 

4*h 4. 

Ml -H 


6h +*. 

SW *W| 

HMh -Ih 

W * 

» *H 

2 41 


HU la. IM C 

6303 62966 631.02 -109 

- Dow Jones Bond 

20 Bonds 
10 industrials 

Tatar TWA 

Hoa Hwte. 

103J7 10378 SEST 0 * 

10 U1 101.12 RWOg 

106J3 10644 

VaL Mp 
J2Z76 T2H 
18514 12*1 
14313 M 
12633 6ft 
nw 7» 
8254 6ft 
7H1 29M. 

erne 3i*> 
6627 Ih. 
6616 111. 

Law Lap Cbe. 
90ftl 9Vfn .1=4, 
13H 13*. +V| 

8 h 

6*h 6U 4* 
6h. TV. 

6 4ft -ft 
29ft 29U -ft 

Ih. ih. 

117. ll*h +ra 

SOYBEANS K3K3T) EsI. sales NA 

M00 UuRitatnun- cents per butaiel Tue'sooenlnt A 

Jill 77 775 765 7® *31 3505 

Auo77 751 720 7® +26 33444 SLVER (NCMX) 

Sep 97 652 625ft 658% *22 12.741 ^«i^-€aWBerww«tt. 

Nov 77 609ft 591 607ft +13ft 69.176 * 

Morn 99 70 98.00 93« —1.90 (J16 

Ed. sales NA Tup’s K4e-, 14,997 
Tue'sooenlnt A.5M off 23 

Jul 97 43&50 424-50 43150 —I JO 257 /via- 9G 

Est sites na Tue's.sdns 9viiA7\ 
Tup’S Open W 2^79778 off 7295 

62J00 pounds, s per pound 
Sep 97 1.4856 1J782 1JB20 
Dec 97 1J7M 1J740 1J7S 

Jan 98 612 5» 611ft +14 13469 *!'SS EP. iotas NA Tub's. soles 7.900 

M»W 19JS 1975 1778' 

Apr 98 BUO W70 19 JT —023 4.988- 

MnyTB 3106 7/m* 

Esl. sales NA Tue's.saln 7MW . T i 

a i?3 Tic’s open bit 485,117 up 4525 . « 


Est. sales NA Tub's, sales 64774 
Tue'SOPenM 142^70 off 1475 

wheat icaon 

MOO ta minimum- earns per bustot 

Cte97 441® 43100 «U0 -1.60 14JB2 Tup's open ini t»JM 

Mar 98 444J0 441 J)0 44440 -810 «452 CANADIAN DOLLAR (CMER) 

MOV 98 4*830 —170 185B 108000 daltars, S per Cdn. Or 

JW 98 45500 45100 45100 -1® 2002 Sep 97 7320 .7383 7307 

Jul 97 130 317ft 325ft *9ft 3JNB Sep98 456JW 453A0 455.90 -1J0 692 Dec 97 7357 .7J5S 73*7 


lhh -H 
2*4h +lh 

Trading Activity 

Ses* 97 339 33<ft 33416 ♦ 9ft 41.028 Est. sales NA Wlldo 2X606 

a +1 

7ft 4h 

n ■* 

H -ft 

2ft -ft 

Jft -ft 

3W 4U 

IS. -ft 


Dee 97 3S2 339ft J« -9 3X327 

Mar 98 350ft 347 356ft +8V* 5J62 

Est. sates NA TuCs. sales 22770 
Tub's open bit 85L54* off 399 

Tue-sapenbit 79,053 up 1324 

Mar 98 7374 

Est ates na Tue's. soles 5J05 
Tic's open ml 43,168 up 310 

llh Ih 
& £ 

IM Hh 
ra ih 
I2hh CM 
H 9ft 
h ft 
Ih 9h 
16ft lffl 
H Sft 


« -h 

jjw -h 


\ % 


W* 261. 
lift II 
im 3 M 
l_ft 1ft 
lot UH 
in i7u 

IH +h 
24ft *Vk 
M * 
7 -ft 
6ft -ft 

1146 1609 Advanced 

1730 1U* Dndtaed 

S3 571 (Jnchmoea 

3431 3416 TaU bsuns 


2139 1676 

5484 5732 

149 291 

70 79 


Mtruv ttL.- donors oar rrnvai GSRMAN MARK (CMER) 

Jul 97 406.00 39800 39810 -7.90 936 lTSJMOmafts.sota-inarfi 

Oct 77 38800 37900 381 10 — 5A0 10453 Seo97 4716 4690 309 

Jm 98 380.00 37800 376.10 -54) 1466 Dec 97 4747 4729 4745 

ESI. sales NA Tues. soles 7.596 MwM 4781 4781 478t 

Tue'snpenim 1340* off 454 Est sales NA Tue's. sales 

3 10400 mni Btu*>. teernifi Mir ‘ 1- . 

AubW 8142 80B0 8180, -7 ■ 

Sep 97 8146 1090 1120 .. " . 21W i ' 

0077 11® mo XUf 289KL .gL‘, 

Nw 77 8288 IM 82® -i- ^ .11,541. 

. Dec 97 1415 8380 2495 -U5« 

f Jon 90 2465 8430 2.435 ' 15423 

| Fflbtt 1375 8445 2455 7" IMHL 

* Mm 98 1265 8230 82M m 

Apr 98 8135 8120 8130 

MW98 2475 8085 UBS ZAfflFi 

Est- Sales NA Tub’s, sates 49321 ■ Js 
Tue's open m 200,115 off 2W ..... £ 

Market Sales 

TH 6H 
12ft 12 
4 3ft 
HM Hft 


II -ft 

26ft -ft 
lift +* 
Wft *ft 

Uh -h 

1*4 -II 

27ft *h 

no iS NYSE 

I 1 & 

12 n tn ma&ms. 

594.04 64648 

29^3 31.90 

65140 63549 

6ft 6h -II 
ft ft -ft 

£ 5 

UH UH -h 
M Bh -ft 
22ft Ota -ft 

R » * 

H H 

14 1« «h 

Oh Oh 
3ft 42ft -H 

1ft Ift ft 
5ft 6 *H 
Th Hft ft 

“Jl ^ 
B % 

Ml 9BHi 

uh hh 

20ft IM 
IH Ift 
1ft llh 

hft us. 


12h *ft 
7ft ft 
Hft +N 



Per Amr Rec Pay Company 

Per Amt Rsc Pay 

IM lift lift 

n n m 
in mi im 
m w »• 

3Jft 3M Bft 
Hft ITU in 

Hft IS* 
Uh 2M 
10* 10ft 
Bft 2lh 
11H 11* 

® 11« 


h™ n 

3Jft 3M Bft 

W ? B 

»h 1 J& »h 
IH 1ft 1ft 
M « 

ft Hi ft 
2M 2 1 

UH 17ft 17ft 
H M M 
A M A 

A A 

7ft Ah 

ISft +11 

Ift +ft 

Wft -1 ft 
STft -ft 

lift -ft 

» ft 

IH +*i 

1ft +Ml 

Hft -ft 

W ft 

■ ft 

5ft +ft 

16 +ft 

2m -ft 


wh ft 

» *H 

lift -ft 

11* -ft 

lift c 

6ft ft 

Uft -ft 

im ■* 

SSft *» 


9jh *V» 

4H ft 

7ft -ft 

Wft -ft 

n* -* 

m <46 


PuBetSaand _ 468 7-21 8-15 


MSB Rod 2 far 1 spOL 
Patriot Am Hasp 2 lari sptt 

Emerald Rnd 

Greenfcrlsj Cos 
l-BHentmid Ind 
Insured Mun Inca 
InvGntMun Inca 

B-22 9-15 
7-22 8-11 
7-25 8-29 
7-17 7-31 


4DAB fas.- cents per h. 

Auu77 6XB5 





Od 97 67.B 





Dec 97 Jftffl 





Feb 98 7240 

71 JS 




Apr 98 7*30 





Junn 70.40 





Erf. sales 11784 Tuffs, sates 


Tub’s open M 


up ea 


90400 fas- ceres per ■». 

Aub77 ®42 

29 JO 




Sec 77 «US 





0097 RL65 





Nov 97 8230 





Jon 96 BJQ 





MV9B 82® 





Esr.sdes 1758 Tue's. sales *811 

Tuffs open Int 


UP 3S7 

Est. sales NA Tue's. scies 7.596 Mir 98 5781 5781 5781 

Tue'snpenim 134M off 456 Est sales na Tue's. sales 19,901 

Cteo Turtiwnlm 107J® up 5007 ‘ 


A^BlSTf HWIGratel i 1S 5J fWOrt *«"■ * “W 1 ™ ven 

Spot 1S*.£» 1541.00 153900 154000 ojJJjJ ^ yon 

Forward 156900 157000 1548.00 1569^0 WSS 

IM-EA08) GA50UNE (NNSR) ' 

42,000 sol. oencs oar pal .' 

Aup97 59.40 57 JO - 5M5- i-0J5 K628= 

Sep 97 58.60 57A5 57® — I® lXttg 

Qrt97 ax non uk nn 1 

2»?4 2»9^250J* Si- 50 *” NA Tw? 1 *- *mes I5L48I 

Tile's wen im 60,190 pit 11® 

Spol 633'4 634HJ J.’iS'x 636*: ‘ 

Foiwort a48JH 64980 &48V, mWv -W9 4871 4916 

' MR 4953 49S4 

4790 00 4790.00 6745® A7S5J» Sf" -7027 

Od77 56.45 55.90 5645 —041 XWg 

Now97 5680 SUO .5540 -0A6 2 4tf 

DGC97 SSM - 5655 5540 . -438 5,95r’ 

59JB0 ->«in ZJ5 55® 5540 -053 .4,140 

S,«n P* 55.90 £» 5 £» -043 . 1J6C 

rae Mre98 SL65 5065 5645 -038 341^ 

Est. coles NA Tue's. so*** 

TWsapenm JSJS7 op ISH . 

GASOIL (IPa • i-i 

„ U4.do6an per metric tan -lots all® tons • 
51,m Jul 97 I6i50 163.75 16240 -025- 7,984- 

IJRI Aug 97 165.25 162J0 163J5. -025 287AS. 

Ml Sep 97 16675 16650 U5M- -050 -7MU 

Spo* 54*500 5475.® 5470.00 54®JK) 

Fonwanl 55® OO 5530® 5525® 5530® 

Tue’s anen int 58110 up 544 

MOAOO Pesos. 1 BBT peso 

Ocl 97 1697S 16775 1*775 -075 7J47 

Nov 97 171® 169JW 169.25 —0.75 4J68. 

Dee 77 17850 1 7075 171175 -a 75 10235? 
Jan 78 173.00 17175 17! JO -073 SB5TC 
Feb 90 17823 17800 17175 -075 3405 

7-17 7-31 

B-* 800 


Arrow Mognofia b .10% 7-15 B-l 


BofACR, q .j* 7.21 8-i 


"A^TonnTr M jobs 7-17 7-31 

Bmmn Stuff RRy O .10 7.27 8-20 


CVS Corp 
Century Bncp 

O 76 8-25 9-15 
Q -11 7-23 B-l 
O -M B-l 8-15 
o m 9-2 9-16 
M J)I8 7-15 7-23 
M J m 7-B 7-15 
M J» 04) 0-0 

Eaton VnTr 

Manoged KIYld 
Mareh Supwmrkt 
New Am HI Inca 
Pf IncoFund 
Pt InooOppart 
Placer Dome 

sas§s, E ” w 


7-31 8-8 

9-12 9-39 

7-17 7-31 
7-18 8-1 

HOGS-UM (CMER) ^ ~ r ’" WlfftaM J4J07 olt 9B Ui. Witari' pir'tmmU-Eottot LOOO Inirfi* ""'Ti 

¥a99 lb ^« nW 5J»?‘ . ._ — — OJFFEl Aug 77 lfcJo ie.CS 1 a2I^*U6 

Mii B3.1S jam Financial pxwoo-pisorioopci Sep97 isas n.17 iSm'S-k 

And 97 mm 79M 0W5 +WJ I2a5tf 9 IICT nrv , c Sup 97 R2 92.71 92.7$ -Q03 m<c o/. Ocf 97 id w lojy injUL — fl Tfi 1190?^ 

CM 97 7420 73JJ5 74.10 t£L67 9,315 (CWB?I *9/ 5 92J5 137nn |>M HU* Zn If . 4 

Dec 97 7075 4977 7073 +072 4+556 |_T3? or SL 1 !? 01 *ff£P m Atar^E 9J51 91M 9145 —am 100227 Dec97 18.75 IRS* 1&67 —0.15 imftT w 

F«>M ♦A« l.»» Sm ,0 - 01 9248 9842 9Z43 -004 SSl Jonte 18J9 1AM IIW ^13 #7 

EsL sales W22 Tue's. «*W103B5 MJJ 55* Sopffl «2J1 9843 9844 -aer <1416 FoWB NT. NT l£S -ttlS 4512 

TUB’S open w 35456 Off 803 Mte 8 t>K« VI SI 9844 9J.4* -0.04 32^95 M«9B NT. NT. HU6 -0.15 8404- 

,w -°° Mi 98 .lias :iis« :ifss 

Htoh LP* CK* orer Oprni WS.S01- 7.1a 

lS!lU &J- solas: 17^0. Prw. sales : 1A779 

Pre*. open ML\ 74240 off 160 
BRENT OIL Cl PE) . . - 



VAdMtarapwiMTta-lB«oruiWlion7to 5; 
*>997 i£«a iron i8ja_^4M6.tto»; 

S597 1845 T8.17 18L31— 4L15 'SOJff&i 

7-17 7-31 
7-74 7-31 
7-24 7-31 

7- 24 7-31 

8- 22 9-22 

7-21 815 

9-2 10-1 
7-18 741 
7-21 81 

81 815 

7-17 7-31 

Esl soles 8722 Tue's. sate* 10365 

Tue’s open M 35.356 oil 602 

Dec 97 9474 

Marts U46 

Est. sates na. Tue's. sates m 
Tuesnpeneit «,773 up 1 54 

NT. NT 1868 -0.15 4512 

NT. NT. >646 -0.15 2404- 

POWC BELLES {CMERJ TuBsnpeninf 4,773 up 1 54 

7867 —805 717 ^TREASURY tOWTl 

Aun 97 7915 7L65 77® —1® 4J79 JW^wln-PNA 64thtat loopa 

R*W 7175 10.10 7U50 +0S 737 ISil * m W.W 

I s1 “tes. 3^74 Prev. sales: 134413 - 

Pier, open Int.- 563,153 up ,4770 Stock IndeXGfl 

Est sales 8577 Tue's. sates 2457 
Tue's open W MM off 212 

D-CJ106-B KteftS M +04 

ss &£ 8 

5«P COMP. INDEX (Olfl&ff) 

930 s Index ' ' 

dnffADhpnnMin Conation tenth: 
hi m o ntMrj o-guart e itp Mewtewwff 


SIOO^IOO prin- ptz. g. BnPsot 100 pel 


S®? 7 'J” 1 * 1682 Sep 97 93MB 7)550 9 1540 —3*00177 MB* 

c!3m E'K J 4 - 86 Unet ’- saa Dec97 mud 72740 7187D — uo 54495 

SCp 77 96 85 «aA4 96. B5 +0 l 01 2S5.M Mar 98 imA 

Mar9R wn 96 - 7B Unch - 764833 Est.sotas NA Tue^. sates 57,969 .-- jR 

jS m jS'S H"? Tue's open W 18U97 W 126 . >d 

m 4ft 4ft 

% « « 
Ift Ift llh 

H I J 

& f 

ft * 


lift Hh 


.* a 

4 H -ft 
an -ft 


90. ^ 


17 H 17 * im 

n m h 

M 6* 6M 

2i ni mh 

M » 5ft 

6h 6ft 64 

llh IIH Tift 

IM It 

Uft UH 

1% I 

lift lttt 
h ft 
IH 1ft 

II -ft 

IN +H 
lift ft 
17* -ft 
H -ft 

m -ft 

* iff $ 

ISH +ft 
h +ft 
Ift -H 

Stock Tables Explained 

?9y* s .P re . u ! lofl,dri - ye °riy Mqtis o nrf Ions inflect the prevtous 52 wtete plus the currenl 

day. Whereaspe or stock dhktonttamtwnfing to25 perraiff or mare 
te b em paid ^ pro tiigh-fcita ninge twdJvMend ore stxwm for 8 m new stocks only. Unless 
*«*** danntemenh based on the tatostdedomlon. 
a-^WMena ate extra Cs). b- annual nrte of uMdend plus stock dividend, c - nquktaana 
dMdte^ - PErntMA Wute - ailletL d - new yearty km. dd - toss in the last 1 2 mtrnlhs. 
a - tfleWand de tere d or POM in preceding 12 months, f - annual rate, tncreasad on last 
eeau'uqutvg .tftrtaemi [n Caned Ian tunttfcsu&iect to 15% ntKt-resktena>tox.l-dhiktend 

deaar^atier or stodc dhridend. | - itividend paid this ynaa txntttod, detotecL ar no 

oq * o n tffteend meeting, k - cBvWend declared or paM this year, on 

occumutoOve Issue tatni dhrtdends in arreare. in - annaol rote, reduced on last deciarntion. 

new teue ln,the post B weeks. The hlghJow range begins with the start at trading. 
_ - i i My jteovery. p - (natal dMdnndL atmuol rate unknown. P/E - price-earnings ratio, 
3^2I?? n i!!l£ U0 ^ | ftmdr'iff v 1de n d deciared^ or paid ^ in peMedlnfl^ 12^ months, ptosatock 
dwa^ s-tedt egg. pWdenfl begins wrih dote ot spa, tos-sotes-t-ateend potato 
«oc* In precedlnfl 12 months, estimated cash value on ex-dMdand or ex-dlsitl button date. 
p '?^. a ^^^ ^ T '' tm ^ >lfl ^9*-^6<mKntptCTorrec8NeBhlporbetr)gt«>fq«ii7ed 
umfcflhe Bankniplcy Act orsearttlos ussumedbysudi companies, wd - when dWrftiuted. 

* *!??i ww ~ with WDiiunia- k- q{-jjy(detid or ex-fights, kdto - cx-dWribuHon. 

XW-nmvxfl warnmts.y- ax4M(tend and sales in fulLyM- yieid.z- sales In fuL 



+ 16 








+ 17 




+ 16 

7! JOT 



+ 14 




+ 14 


Est. sates SJU3 Tue's. setes 6,110 
Tue's open mt MH. 73 * up 7 « 

iW-71 109-10 109-15 +n 3MJJ1 J“"» 7654 9655 UUi Hi ft “ 

Dec 97 K» -06 133-03 109-04 * U fc«3 Sf£tS S - - 3fl 5435 UnS. 155J14 CAC40£MAT1F) 

My 98 10871 1 I® 9610 96.10 Uneh. 104.176 FF200 par Wait 

^,“ 5 * JJA., Tue's sates 42 J 7 B **® rW 0587 ’SJ 7 .oai 94^77 i ut9 L 2,840 79&0 »S 80 + 15 J 3 X 

Tue's Open Inf 344 , «U UP 618 Efl. Mies: 97 . 9 S 9 Prev. solos 90439 2987 0 2,430 396013 + 1 SA 8 

US TREASURY BONnS Irarm Prev. open (nl : 1487,478 up j 3 a 2 2 »%S JJ 4 tS 29660 +T 5 L 0 20. 

4SJJ67 SS^S^iSi®" 7i 

FS.S!!2"2 J! 3 ^ "3-W - OS 27.967 Sn 25-S S*-? 7 W-S8-<L02 77457 

Mcr«IIMB 113-01 11868 +10 34® 

AmW 10-19 801 

Est-ate* ua Tub's. soles 2 S 0333 

COFFBBC tNCSE) Ea.sota* NA. Tue's. sues IS 

IwSTm* 1 97 A0 +5J8 537 Tuc ' 5 ™ "* 

177 AS +S® 11408 LIBOR l-MONTlf <CMER) 

15955 +450 5.111 UmdUon- ptsoMOOpct. 

Mar 98 15MB MR® I *2-7S MB -Jul 77 9433 94J2 «J7 

9 &S 0 —am 30410 FTSE too (UFFEJ 

Sep 98 »°W 05 per Index paM .-s 

5? 90 SS33 761? M J? Tom ?KS SS£2 «3SB -1* 4JJ90 ? 

Mar <N S £,3 ]&I 93 MorTB 49010 49030 476 JI -2.0- 

P- 1 ¥i90 9S - ,? H 342 Est soles; 11111 194 N V 

May 98 I 4 SL 50 M 5 JM 145 ® +175 177 4 ug «7 M 33 94 JJ 94 J 3 

Eif.ates 5 JR 6 Tue's. sates 4.973 5 ep 97 94 JI M 31 MJ 1 

tub's ooen int Xtu uo 447 

5 »w 94 J 1 M 31 MJ] 

sates NA Tue-S. solas 4®7 
Tue'seoenlru 49 AS 8 up 277 

SUGAR-WORLD H (NOSE) ~ _ .... 

MT% m tT M nST' 11.11 rOJB 72.717 LONG! silt OJFFE 1 tete ItM Xi! S±2? liS?, Moody'S . ^ 

jutefl H jo 11.20 IL2S +00* 47W9 C50.0M ■ ph j 3Jnds at IM pd ftp 90 94 9443 544. 2’®^ Reuters 1,900X0 1JTJ7 

Mwtt 11.15 Ilia 11.1S +0A4 7JM o 7 . n i® JJf-E “®'!2 EE;* ’f 79 !*72 74 74 tSS li2n P^. Fu,urw U8J0 

ESL SPtes 394rtt ^ 

19JH7 Open ,nl-2S7J08 up 8JB1. 


Erf. Wes: 12,112. Pre*. sales: 1SL429 
Prev. open Int,: 71.474 up 497 

Commodity indexes 2* 

am* PwTfcw'J 

s • . ** ; na'J 

r«T uP nm KS Im So* *y> n.t SF. *.3-ti SOI Bg 86 

Erf. sates 1A642 Tuffs, sates HL061 
WsSrenw 151 ait 183 

Esr tales: 51J03. Pnw. «Hm 9».S7ti 
p rc». open ftil ■ 156.931 oft 6513 

'■»« Kg x 

Erf. Htai. «2 181 Prev srfes s2 j, „ 

p "* •R-iim. 34*388 5>i4a 

u-j.r inures 148J0 14706/’ 

CR B . 23X91 afcgSl 


tit* \&P 


INC Group 












RopO Dutotl 




-■Wren KI eva 











r f * y °> 



Fr ankfurt 





22*01 lhw+ 



PAGE 13 




pected to earn * 1 

ow the $3^ 

SO cited unexpec ^: 
ts $1 4 biUionaZi^ 
*®stale Bancor? “"H 
¥ problem is Seri- : 
0 , other banks feU ?/ lc ® 

in helped fiiei iheW'j 

/.falling 3 V 4 io 

Rpedl%io 96 '/ 4 %Fl, K 

“aresaiditannSt * 

r was doing a lar£l cd ^ 
shift, selling Sl g k ^ l ; : 

i*3. stocks -{ 

To Create 
Big Bank 
In Russia 

French Companies Confront More Trouble 

Renault Wbrkers to Vote Rerny Cointreau Stock Skids 

cmtMififOrSvffFnmtDiipaaria dally wanted tosave only 400 jobsat 

UJSSELS — Renault SA's the Belgian plant, but at the meeting 
I Bcbdan cmolovees will vote with die Belgian unions it offered to 


fell 1 11/16 10 6, nj 

cmtie-nil c nn _i! ’* wi 

enteoil supplies '^ 
i ample to meet 
Chevron fell i uS? 04 . 

K one of the in-W.. 
re. reported 
Dfi, from operand 
ore, beating the av iL . 
&®, “"f ■ Moiorola^ 
?6 1/16. Intel. ihe u-rirljv 

■pm^r, gained? 3 / 1 ^ 

i, and Texas Instrument 
ft to 95 3 / 16 . ^ 

»d Micro Devices. whld : 
ay reponed lower-, C 

second-quarter nei m . 
cents a share, rose 

9. ’ ■ 

■la predicted that ivp 
ng a modest recovers f 1tf 

idustrv after last vear’s \\i 
■op, although not 'as siriHi. said it now 1 
growth of 6 percent t 0 8i 


Cemqtint by Oar SaffFnm DapaKha 

MOSCOW — Renaissance 
Capital Group, one of Russia’s 
largest securities films, said 
Wednesday it would merge 
with International Co. for Fi- 
nance & Investment, known in 
Russia as MFK, to create the 
country’s largest investment 

The new company, which 
will be called MFK -Renais- 
sance, will have $400 million 
equity capital* total assets of 52 
billion and a further 51 billion 
under management, the compa- 
nies said. 

**11118 has the possibility of 
becoming a bank of world 
stature,” said Boris Jordan, 
chief executive of Renaissance. 
Mr. Jordan will become pres- 
ident and chief executive of the 
new company. Vladimir Potan- 
in, president of MFK’s parent 
company, Uneximbank, will 
become chairman. Each side 
will own 50 percent. 

MFK and Renaissance con- 
trol a large stake of Novolipetsk 
Metallurgy Combine with 15 
percent and 9 percent of the 
stock respectively. 

The companies said that the 
combined bank would bid fora 
25 percent of RAO Svyazinvest 
— a holding company with 
stakes in Russian telecommu- 
nications companies — when 
the government seDs it later this 
month. (Reuters, Bloomberg) 

BRUSSELS — Renault SA’s 
3,100 Belgian employees will vote 
directly on the automaker's layoff 
plan July 17, after company nego- 
tiators and trade unions failed 
Wednesday to reach an agreement 
on the planned closure or he Vil- 
voordc plant near Brussels. 

During an all-night meeting with 
union representatives that ended 
Wednesday morning, Renault said it 
would preserve 600 jobs and offered 
severance pay packages ranging 
from 150,000 to 2 million Belgian 
francs ($4,135 to $55,140), more 
than the workers would get if the 
plant were declared bankrupt. 

A union official said Renault was 
threatening bankruptcy if the work- 
ers did not agree. 

The two sides reached a frame- 
work accord last Thursday, but de- 
tails remain to be worked out 
“We are dealing with unaccept- 

tially wanted to save only 400 jobs at 
the Belgian jplant, but at the meeting 
with the Belgian unions it offered to 

able blackmail by management, 
which has threatened to place the 

plant in receivership if its proposal 
is not accepted,” a trade union 
spokesman, Karel Gacoms, said. 

The main stumbling block con- 
cerns the size of payoffs and work 
guarantees at the site. Renault ini- 

help save 600. The company plans 
to close the plant before the end of 
this year but to continue to use the 
site for subcontracting work and for 
maintenance work on used cars. 

Renault, over the objection of the 
Belgian government, decided to 
close the plant and shift production 
to Spain and France to save money. 
Analysts estimate that the closure 
will save at least 800 million French 
francs ($136 million) a year and 
help the company break even this 
year. Renault, France’s No. 2 car- 
maker, lost 5.26 billion francs last 

If workers reject Renault’s offer 
and Renault decides to let its Bel- 
gian unit be declared bankrupt, em- 
ployees will be entitled to about 
one-third as much compensation as 
the company currently is offering. 

Shares of Renault rose 2.40 
French francs to close at 146.10 as 
investors in Paris favored shares of 
companies involved in restructuring 
operations. RenauU also plans to cut 
about 3,000 jobs in France this year 
out of a worldwide work force of 
141 ,000. (AFX. Bloomberg) 

CempikdbpOar Staff FmnDaparka 

PARIS — Remy Cointreau shares 
fell 12 percent to nearly a two-year 
low Wednesday after the maker of 
Rerny Martin cognac and Cointreau 
liqueur said a charge for currency 
losses dragged its profit down 70 
percent in die year ended March 31. 

The company said net profit was 
36 million francs ($6.1 million), 
down from 120 million francs the 

previous year. Analysts had expec- 
ted a 10 percent profit gain. 

Remy Cointreau lock charges of 
277 million francs to cover a re- 
organization and future currency 
losses. Despite a gain of 176 million 
francs from asset sales, the moves 
resulted in a net charge of 101 million 
francs, which surprised analysts. 

The loss came even though sales 
rose 5 percent, to 7.16 billion francs. 

Shares of Remy Cointreau fell 
1 8.40 francs to close at 1 30.50, their 
lowest since October 1995. With that 
decline, the shares are down 1 1 per- 
cent so far this year, while the bench- 
mark CAC-40 index has risen 27 


Remy Cointreau, which also sells 
the Piper Heidsieck and Krug 
brands of Champagne, faces grow- 
ing challenges in a highly compel- 

Metro Plans to Expand by Selling Hapag-Lloyd 

Bloomberg News 

COLOGNE — Metro AG said Wednesday it 
would sell its 15 percent stake in the shipping and 
travel company Hapag-Lloyd AG. valued at an 
estimated 405 million Deutsche marks ($230.8 
million), freeing resources for Europe’s largest 
retailer to expand abroad. 

But Metro’s shares fell after its chief ex- 
ecutive, Klaus Wiegandt, said investors might be 
overestimating the potential earnings gain from 

Metro, which owns department-store, super- 

market and home-improvement chains, would 
not comment on a possible buyer for its stake in 
Hapag-Lloyd. Freussag AG last month said it 
was bolding talks with some of Hapag-LIoyd’s 
largest shareholders, including Lu fthansa AG, 
about buying their stakes. 

Since its creation last year in a merger of the 
German units of Metro Group of Switzerland, 
Metro AG has moved to shed unprofitable busi- 
nesses. Sncb measures are expected to raise 
earnings by 140 milli on DM annually, the com- 
pany said. 

** Metro has convinced a lot of people who 
were skeptical at the beginning that me company 

ime traders took the repon 
that the surplus uilj ««. 
tow for some nine, con- 
vhat some Japanese offi. 

: said. 

lumbers weren’t too en 
said Lee Racier, chief 
trader at Israel Discount 
apan has a history of say- 
. will get bener. hut thine> 
otten better.” 
ts also said recent disturb 
ecting the Thru and Phil^ 
rrencies bad made the dok 

Bloomberg. Market \ : mi 


Wednesday^ July 9 

Prices in local cumndes. 



*ra muC 

in local cumndes. SAPpM 

n/etam Sduatoq 

High Uw Quo Prw. 

' ' ' Springer (A*® 

im A EX Mac 92137 Sundmdrar 

PmfwssfllM Tfayuen 

Mm M 
Alan Nobel 
Boon Go. 

Bats Wesson 

*91874 Tbrtiai 

4130 4230 030 41.40 vfvY 
>4730 14110 14140 >4430 
175 171 ID 17170 17230 vX™, 

278 27&20 27490 27530 

15670 15130 153 14830 ...... 

ia 37 jo 3830 37 jo Helsinki 

mm 97 99 97 

OordbdwPet 1U59 11050 

Forts Amnr 

LCtMl cw* <9* 



Wte.'- cedsoar a. _ 

7 TvQ 71.10 71 * -fO ■ 

77 -1433 73.70 ■’ -0“ I*-™ 

« 7tS5 7415 7:3j -0W 0* 

ft 7570 7543 75-K ?■? 

• ft 7450 7430 7 »3i *•* 

sales NA. Tue's.sdes 

s wen so TM® uc *3 

INC Group 

Oce Obrien 

nun mm ma * 

2 ftHS 2E-S HnWamWUI 23050 229 229 230 

„ M'S ^ 52J0 5220 5230 52 

— 2c2 « 77 .S 8 7010 7010 7050 

K Sra - 47 ft JfeiSaA ® 19*0 1930 19.40 

^ mm S MabnB 174 170 171 149 

r -JSS “ig B 4430 4500 44 45 

™ J “rS»n sisS'ii^ln iff* — I* 9 * T 4 B 5 D 139 TXLS 0 ‘ T 40 

HaUa A • m 430 41250 

“ jn.-* 1« Orion- Ylrtyroae 2DO50 198 198 199 

$2 Outahunpuir' 105 W 104 ms> 

-2 22 5*2 OPMKymmeoe 13230 129JB 132 127J6 

^30 ^ So SS Vote?™™ 9050 8930 8990 902D 

p 5830 57-80 5830 58.10 
334 331 J2S 337 33050 

5 BKpS Hong Kong 

105 10240 104J0 102 










Hlgfa LOW Close 






' BrtPettn 















11350 I12J0 11150 11270 









PlnauR- Print 




































14970 14520 1*6.10 


Aiks Copco A 


220 22170 





























Rh- Poulenc A 


255 25620 







Zff 250 

















32670 31970 












325 mw 32940 



292 29150 


1650 16*5 



















93B 940 




































365 25350 















STS 57S 


















287 JO 

280 28770 





















Mil 1485 














Scania B 





EMI Group 










Thomson CSF 



















Total B 





S-E Banter A 



















Stamda Fare 


320 32770 32250 












419 40170 41*50 396.70 

Ql^nirafc^ Q 

34870 33970 

349 33770 

49 *9 /8JJ) 48 

23050 229 229 2» 

5230 5220 5230 52 

7730 76.10 74.10 7430 
» 19-40 19.90 1930 
174 170 171 149 

4430 45*0 44 45 

140150 139 14LSD ' '140 

433-430 430 41230 

20030 198 198 199 

105 104 104 TKPJO 

Ge«IAa*M 9SM 

G6C 155 

GKN 931 

GftnoWlhfcnm 1337 
Granada Gp 775 

isr 1 "* s 

GroenObGp 43 

Gubness 630 

GVS 614 

Ites 5JI 

HSBCHkht 1833 

?i3i -DOS 14 

Ran* Dutch 

m ItffJO 209 206 

19620 19530 19530 19340 Wl.; — 

4730 4510 4730 6430 CjOwr^CHC 
19730 196 197 19120 O*unofc»fl 

11490 11450 11640 116 OCWnu*yd 

11130 W9-4D 10930 10930 OUnoUoM 
45030 44330 44930 44130 Otic Podflc 


3a gen. certs pc'ao* " 

,«7 53-0 5JJ0 £235 -6* 

9 SS 5233 o® ^2 §5 

JT 5<B> 5175 **■» 5S 

S S 3 S 3 , S 3 

.5 g5 S S* dS B 

■g |g SI SS ^ " 

Kdei VA. Tuo'6 soies 
.■saSnrt I47.BW up iW 


abOL-Ooaonperoot $J> 

1 97 N.76 I9JB 19J8 -Ji; jgh 

97 1934 W43 ,JjM “K 

W 19.90 J9J1 "5* 


4SOJSO 44330 44958 44130 Me 
11430 11230 II m 11330 
4630 4530 44.10 44.10 Hat 

8J0 MS &10 8.15 
3130 3070 3030 3130 
U75 1145 045 1345 
75M 7375 7475 7235 
2230 2140 21j60 2230 
4270 4130 4170 4130 
4778 4570 461® 4430 
4538 43 44 4570 

940 9.15 935 975 

la _ r« 

InjplTdbocca 372 

IQnaftiftEr 4.98 

Lnffirofce 245 

LwdSec 972 

tow Ztt 

Legal God ftp 437 

UtydsTSBGp 638 

UnxVMI/ 272 

Modes Spencer 579 

MEPC 579 

Moony Asset 1272 
NeMondGrid 2X7 


VX 251 26030 24830 HfWOUmgDw 1190 12BD 1370 U» 
HmaSengBk iiw i04«n nnua 

Abr Into Sec 238 220 238 244 

angkeicBkF 236 220 226 23H 

KWBTMBfc 3475 31J5D 3475 3175 

grfEvtor 4J0 402 404 40* 

■ 534 514 534 534 

5knCinBkF J24 112 124 117 

Tdeoonosia 37^ 3230 3730 3425 

TM Atones 030 54 42511 S7 

Thd Fdnn Bk F 134 HO 132 IK 

DldCaH IDS 98 IM 108 

IM Atones 
DU Can 

,97 ]930 1938 JMS 

.B7 tOO h fllfi 

:V7 ^ 

■98 ».« is 7^ 

rM M M }?>? ^ 3 

m a® 

93 20-lB 

InSes ola. Tue's. 


« 111 H i 

;97 2^ JW 

s a & || 

rjj in 2 ^ H 



Bombay WMro wa sRnGXfEk 

f PnemsiObUI SwfePncA 

BoUAUo 947 932 34175 93730 ffiSSuJ! 0 * 

HmntLewr 1396 1371 1379136650 WM*** 

HtadDdMbn 47450 45850 471 *5975 . 

WD»K 104 1B2 103 1(075 

ITC 561 544 5*9 JO 55675 JaKaTtU 

MdnnairTU 30*75 282JD 304JD 28050 

RsHmcBfaid 34575 36175 34350 362 

SferinBktadta 358 75275 35425 35*75 SlWa 

SMAidborty 2575 2375 2525 53.75 mmria 

TUnEngLom 458 433 456 430J5 SdSa*n 

“ W 104JB 105 10650 

8.30 no 8.15 870 

4*50 445D 45J0 45 

15.IO 1455 1455 15 

3040 297S 2975 3072 

., r 1738 1770 1740 1770 

HopnwD Mgs 473 4JB 453 440 

KSBCHdgs 247 , 242 243 243 

6550 6375 64 65 

2250 2220 2235 2235 
Johnson El Hdg 22.10 n -22 
KefiyPlTOi 1850 1870 1870 1870 

NevtiferafDHr 4580 USD 44 JO 45 

D~ no 2J8 2JB 3 

174 1.15 1.15 173 
8775 8575 8675 84 

SbvnTaiHdgs 485 463 448 483 

- - 750 7M 7M 775 

775 7-15 7 JO 770 

S9.5B &3B 4750 69 

3140 3050 MJ0 3030 
1758 1755 1735 1735 

IkSuHon El Hdg 22.10 

132 m Oriental Press 

IM lS SS?0ri«»al 

SHK Props 







-.350 362 Ann M| 872S 8500 8700 8475 

35*^=*5 Stoftoto aS Sw 2000 2025 

2575 2375 BkNmm im ISO 1575 1575 

456 43075 GodSg&ron 188H 9900 9900 10000 

Ipdocenwri 4300 3850 4375 3850 

“ hdiriood 5700 5450 5475 5650 

|Me 29*421 tadOBd 7875 7850 7875 7875 

S 297121 SampoomaHM ** g® 

... Semen Gmsft OW WM 5200 5^5 

E5 14000 TeMBMimBaxri 4275 4175 4175 4200 

BOrM Indue 2MUS 
PrariNB 349121 



%, 56 00 IU H S 

54.95 js S 

S fe g S 3 * 

m 566?. !9ri*7 

J 45S ’522 ^5SS Tewnmootoal 4275 4175 4175 4200 

7580 7400 7420 7440 
9800 9780 97M 9800 ■■ 

iwoa iw» moo iSo Johannesburg *1*522^2^ 

1990 19*5 1970 19*5 iiniliiiii 7iinj» 

700 7750. 7790 7770 AnMrigqmH Bfcs 3235 31 -*0 7140 3140 

363f,357S 3SB5 3S9S AMoAaCoal 272 272 • 273 273 

w mo im «oo SSSaAnUmp 2*9 ism tszss wm 

IS 8 S»« 

1 ^ ttS ^ M S? 14 S Its S3 

13800 13725 13725 I37» caSmBl 25.15 25 2SJ05 2 Sj05 

5040 mSS 4965 5 0 3 0 Q* Been 167 14625 147 147 

11275 10975 11050 10975 DrirtsdelQ 2935 29 3035 3025 

FsUWSk .36 37 37 

22500 2235J 22350 22373 Gencar 19JS 

15175 14925 14975 I512S GRA 96 

129500 123500 1Z7550 123SD0 Imperial Hdgs 6*25 

NaflPow SJt 

NTOWeit m 

Nest 7.12 

Norwich IMoa 327 

Orange 2JM 

P60 619 

Pe om w 7J15 


Premier Faro-'J 6W 

ProdenM 604 

RaMckGp 7.19 

Rankftoup 344 

RecUflCMni 9J6 

RcdVmd 2.92 

teedhdl 5J7 

RadnMIiAri 115 

RsatenHdgt 632 

Rnan 2J0 

RMC Group RUB 

RnltRavce 2J6 

RowIBkSa* 634 

RIZiW 10.11 

Rnaf&SuiAl 448 

Safeway 3J92 

Satasfawr 43)5 

SdUDdea 1740 

SoatHumatOt 693 

Scat Power 4JD 

Sncndoor Ul 

Seven Trad 8J4 

5iieg Tramp R 629 

Sfche TO 

SroHi Nephew 147 

SraBwaoe 11 JO 

SribsM 1J2 

Slbon Bee 440 

S tog ec o ra h 620 

Stand Chafer 9.74 

Total Lyle 654 

Torn 424 

Thames Wafer 7J2 

31 Group 605 

Tl Group 675 

Tonferw 2.90 

UeBeenr 17J5 

328 X53 

9.19 929 

1110 1116 
748 753 

610 &20 
253 2J5 

420 625 

605 616 

556 612 

5J7 679 
1854 1855 
8JH 886 
169 359 
670 690 

240 245 

698 9.16 

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420 625 

650 659 

157 %m 
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551 604 

1258 1252 
244 245 

£35 £35 

841 850 

687 694 

120 324 

202 2.03 

610 611 
685 687 

1.19 121 
740 IM 

651 652 

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685 7.11 

357 £42 

943 9JS 
283 286 

£71 554 

111 113 

553 £71 
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118 123 

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610 614 . 

278 280 

845 853 

416 626 

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153 156 

1151 1173 
770 771 

452 640 

641 653 

94fl 952 

652 456 

411 419 

742 745 

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1758 17.76 

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5 Paolo Torino 



22600 21950 21950 22050 
15125 13960 14100 14000 
10310 1BJ38 10250 10050 
5725 5600 SMB 5580 
5870 5765 5815 5795 


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205 207 205 
176 17750 17550 
IS 12950 125-50 
253 254 25150 
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To Our Readers 

Due to a technical problem 
at the source the Sao Paulo 
stock market was not avail- 


AJKMaortiSi 2196.10 
Pradoase 267978 

MX Mac <7272 
PnMoas: 676.17 


150 149 149 ISO 

Jto fete: 77179 
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228S 2185 2185 2175 
155 148 148 156 

9.W 980 980 980 

15 83 8160 BUS 

525 500 505 SK 

AM 170 580 4M 
20 248 241 249 

910 190 890 915 

6380 61 <280 OSS 

780 7 • 7 780 

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<75 667 

920 930 

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£05 880 
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428 43140 
800 789 

388 37780 
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418 599 

385 37680 
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30940 307 70 

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£10 484 

606 384 

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645 685 
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380 388 
274 287 

291- 281 

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1650 USD 
438 632 

£55 570 
605 605 

1370 USD 
1430 1650 
m £78 
1980 1940 
440 448 
1070 1070 
289 241 
7.15 775 
344 376 

370 348 
496 £10 

396 602 
1480 1540 
m 980 
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680 685 
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7 7 

2980 3040 
348 380 
271 276 

20 289 

188 1.11 
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434 440 

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Chaw Hm 8k 
Qdoa TungBk 
China Steel 





(ltd World Chin 

150 150 

115 11588 
7980 8080 

155 14650 
29 JQ 2970 
114 114 

68 «9 

116 11580 

65 66 

8380 8*80 
12280 12280 
127 122 

lJkJ* 128 
7080 70 


Kktei 226 19477.17 
Pitouc 19K3J* 



Bk Tokyo MItsu 


Stockholm sxMgmign 

10880 10680 10780 107 


mi raw Print 




1150 1130 
740 730 
3660 3600 
880 859 
479 660 
1110 1010 
2150 2D7D 
644 631 
2600 2540 
3110 3060 

2070 20*0 

nm 2010 

2530 2470 
737 711 
1*30 1300 
530 512 
MM 1360 

1150 11*0 

465 677 

1100 1100 
2120 2130 
<31 635 

258Q 2560 
3118 3080 
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1370 1400 

; 4ooo — - -ft-v m 

3800 J \ «0 

v’/ ^ 

irive industry as sales of its biggest 
product, cognac, decline in key mar- 
kets, especially Asia, analysts said. 

“Competition is really tough, and 
they’re not growing fast enough," 
said Denis Huruguen of ABN- 
AMRO Hoare Govett in Paris. 
“Everyone was expecting a re- 
bound after a 57 percent drop in 
fiscal 1996 earnings.’’ 

The currency losses stemmed 
from a decision this year to Jock in a 
dollar exchange rate of 5.40 francs; 
the U.S. currency has since risen 
above 5.90 francs. The locked-in rate 

■:4800- —rfr . 3000- 

* 4000 s 

®®'F MAM Jjf ^'F’H A' M J J ? ®®*F M A' M S T 
T987 . v 1997 1W7 

means that Remy, which makes 32 
percent of its sales in dollars, is not 

benefiting from the dollar’s gain, 
which normally would increase the 
number of francs h receives when 
converting its dollar sales. 

(Bloomberg. AFX) 

■ Program Costs Hurt France 2 

France 2, the biggest French pub- 
lic-television channel, had a net loss 
of 199.3 million francs in 1996, com- 
pared with a net profit of 60.7 million 
francs in 1995, Renters reported. 

The channel attributed the loss to 
the costs of a requirement that h co- 
produce an increased number of 
television films. 


, toaaoa.-y : 

StOCfcfriW Jgg 


Source: Tefskurs 


lacmailoiul HenU Tiftune 

Very briefly: 

were skeptical at me begmnmg that me company 
is committed to following through with its 
strategy,” said Peter Klarer, a fund manager at 
Victoria Kapitalanlagegesellschaft 

Metro shares have risen more than 70 percent 
since the beginning of the year. But the stock fell 
after Mr. Wiegandt said there had been ‘ ‘too much 
fantasy” involved in its rise this week after Metro 
said it was talking with SHV Holding NV about 
buying its European warehouse stores. Metro fell 
3.4 percent, or 7.40 DM, to close at 209. 

• British Aerospace PLC’s managing director, J.P. Western, 
told a French parliamentary panel that he expected BAe would 
combine , with the planned Aerospatial e-Dassault merged 
company and Daimler-Benz Aerospace AG of Germany as 
“the strict minim um to create a European company.” 

• Ispot International, the family-owned business of the British 
bus inessman l-akshmi Mittal, plans to raise $450 million by 
selling 16 percent of its shares on the New York and Amsterdam 
exchanges, sources said. 

• Deutsche Postbank AG said there was no longer enough 
time this year for the banking arm of the former Deutsche 
Bundespost to complete an initial public offering. 

• Deutsche Telekom AG ruled out layoffs in an agreement 
with the German postal workers union on cutting its work 
force by another 30,000, to 170,000, by 2000. 

• Volkswagen AG said strong demand had led it to hire the 
privately owned car-body maker Karmann GmbH to build 
about 50,000 Golf Variants by mid-1998. 

• Italian new-car registrations in June rose 51 percent from a 

year earlier, to 222,800, amid a program of incentives for 
trade-ins. Reuters, Bloomberg 

The Trib Index 

Jwi 1, 1992 = 100. L* 

Prices as af3M PM Now York 6ma 

World Index 179.72 

R ri glonel taMiM 

Asb/Pacific 128.61 

Europe 188.53 

N. America 207.35 

S. America 187.99 

MurtM Mona 
Capital goods 226.24 

Consumer goods 200.98 

Energy 198.68 

Finance 134.64 

^flsixjfoiiequs 179.53 

AamMaierials 195.71 

Change %changn year to data 

% change 

-0.03 -0.02 +20.50 

Energy . 198.68 -1.32 

Finance 134.64 -*0.25 

WscePansous 179.53 -0.48 

Aaw Materials' 195.71 +0.74 

s&muff - " T b orsr — 

Utilities 18 a 36 

"=03* 32339- 

+0.66 +27.81 

The international Herald Tribune Wand Stock Index G tracks the U.S. dollar values of 
2B0 internationally investabla stocks from 23 countries. For mom rrformatian, a free 
bookTatis avaJtobkiby wrtkig to The Trib tmtoKldl Avonua Charles do Oaufls, 

92521 Noufy Codex. Franco. Comptiod by Bloomberg Nows. 

Law Qua Piw. 




East Japan R? 
Fail Baik 
FuS Photo 



Honda Malar 





Japan Tobacco 

Kanari Elec 

Wrtn Brewey 
Koto Stool 

BTSOa 8200a 
2M0 2710 
5770a 5810a 
2*00 2*60 
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1500 1530 

445U *530 

1540 15® 
1130 1I4D 
1240 1260 
33® 3*0 

ISO 1570 
401 414 

6490 6540 

5Z7 530 

8910a 8960a 
3820 3&S0 
630 631 

2150 2160 

1560 1630 

5)4 518 

354 357 

687 691 

1160 1180 

Cdn Nat Res 

CdnOcdd Pet 





Donohue A 

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Cyocero 9030 

BfS" 0 " ^ 

Marubeni 50fl 

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Matsu Comm *350 

MatolEtactad 2270 

Motel BccWfc 1300 

MBaMM 1330 

MBsubtridOi 368 

MflwbWdS 647 

MIsufaisHEst 1*20 

MDsvbbhiHvy 878 

MBnMHMn 787 

MSnbfeMTr 1670 

Mite* ion 

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NTT Data 4390b 

Paper 700 

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Ricoh 15*0 

Rom 11S06 

Satora Bk 782 

Srariqn ■ 3900 

SaMBanlr iso 

Sanyo Elec *98 

Srann 8250 

SefcuRwy 5550 

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SuaAuno Qoc 1900 

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Sumk-Timt 1140 

Ttataha Phann 3190 

TteHtadwai 3280 

TDK 8*90 

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Intel BoA 1060 

Tokta Maine 1470 

Tokyo El Pwr 2310 

Tokyo Efectraa 5*50 

Tokyo Gas 

TappanPiM 1750 


8810 9000 

1980 M0 
406 419 

486 496 

20*0 2070 

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2230 22*0 

1280 12B0 

1280 1388 

361 365 


1600 1610 
967 872 

775 775 

1610 1620 
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1503 1520 

721 73* 

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27*5 27 ft 
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129ft 134*0 

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13.90 13J5 
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38JO 39*0 
33L65 33ft 
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3720 37ft 
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225 229 
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318 324 

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11700 11700 
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1500 1520 

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8309 B 250 

5450 5450 

1100 1110 

1153 1170 

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9670 9700 

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1730 1749 

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650 659 

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1710 1720 
814 818 

703 709 

3010 3010 
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3200 32*0 
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ATX totoe 109*0 ] 

103£20 1011 103830 1006 * 
51*50 507.10 515 512 J 0 < 

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1*45 1639 1 * 351627-501 

538 526 JO 539 521 JD 

1499.95 14761682.95 1673 

87650 868 87*70 ZJ 2 -. 

59190 581 590 5871 

2509 2380.10 2386 24561 

2655 2631 26*3 2635 1 



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FWdi Cti Pant 2.13 

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3J7 181 377 

7J2 7J5 7«’, 

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Daewoo Motor Co. of South Korea Is Hit by Strike 

Hud UmixtiPxuhcn 

Striking employees of Daewoo Motor Co. marching past rows of new cars Wednesday at a company plant at 
Bupyoog, Sou* Korea, as more than 10.000 Daewoo workers went on a one-day work stoppage. Union 
leaders said workers would start an indefinite strike next week unless management meets their pay demands. 

Trade Surplus Leap 
Follows Increase 

In Japan’s Exports 

CimfUlrdlh Ol» Stotf Fnm Duput, Ar, 

TOKYO — The surplus in Ja- 
pan's broadest measure of trade 
more than doubled in May because 
of surging exports of automobiles 
and computers and a drop in con- 
sumer spending at home, the gov- 
ernment reported Wednesday. 

they don’t, they have the challenge 
of what they do next.” 

Exports gained 20.2 percent to 
3,984.9 billion yen while imports 
edged up 5.8 percent to 3.057 billion 

Japan's current account surplus — 
hich m 



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Taiwan Stock Surge 
Raises Eyebrows 

Can Run to 7-Year High Be Sustained? 


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| TAIPEI — In March 1996. 

'■ ^Taiwan stock investors were fleeing 
as unar med ballistic missiles fired 
by China were splashing down into 
thrget zones just outside Taiwan's 
main ports. 

Rattled by eight months of 
Beijing's milita ry menacing, in- 
vestors plowed their funds into gold 
and dollars — and sank Taiwan's 
main stock index to below 4,700 
points as daily trading volume dwin- 
dled to 22 billion Taiwan dollars 
{$787 million). 

.• But what a difference a year can 
make. Taiwan’s benchmark stock 
index has about doubled since then, 
closing Wednesday at a seven-year 
ltfgh of 9,362.68. At the same time, 
duly trading has risen, nearly .10 
times, to 212.9 biliion dollars. ' 

__ But the rally that made Taiwan 
one of the world’s best-performing, 
stock markets faces some hurdles. 
The biggest is whether Taiwan 
companies — especially the elec- 
tronics makers that paced the rah — 
can deliver the profits many in- 
vestors are counting on. Some fund 
managers say they cannot. 

' “Taiwan is overheated,” said 

Taiwan stock-market investors ought 
to brace themselves for a correction. 

Those voicing concern include 
Taiwan's government. For the fifth 
time in the past month, officials 
warned this week that corporate 
profits may not live up to expec- 
tations. No doubt, Taiwan is having 
a great run. Its stock index has risen 
34 percent so far this year after a gain 
of 60 percent in 1996. About half of 
that gain came from technology 
companies, which as a group have 
surged 168 percent this year alone. 

Analysts say the stock rally re- 
mains broad and has shown few 
signs of the kind of * ‘bubble” build- 

July 9 dost: 

Source; Bloomberg 


up that preceded Taiwan's collapse 
in 1990, when the index fell 80 

.r jBaddon 7fc , a fund manager at 
^Tradenr’ ’” ^ ’* w *- ;1 

m. a 

itial Portfolio Managers Asia 
Ltd. in Hong Kong. ‘‘Thinking 
about earnings growth went out the 
window months ago. As value in- 
vestors. we won’t touch it” 

■'* Many others will, especially the' 
individual investors who account for 
about 80 percent of trading on 
Taiwan's stock exchange. But Mr. 
Ziia is one of a growing number of 
fiind managers and analysts who say 

percent from a peak of 12,495 in just 
eight months. 

Stocks, however, now trade about 
36 times their earnings per share, 
almost double their premium is 
months ago and the highest since 
1994. That is also doable the premi- 
um commanded by stocks in Hong 
Kong and Singapore. 

Taiwan stocks once reached head- 
ier heights. Back in 1989, stocks 
fetched almost 70 times their average 
earnings per share. The surge ended 
in 1990. when the index tumbled 
from its record high to 2,705 points. 
That slide, triggered by rising interest 
rates, gathered momentum as indi- 
viduals struggled to repay money 
they had borrowed to buy stocks. 

That history of swings in the 
Taiwan market is reason enough to 
be wary now, in the view of many. 

“I’d be more cautious in the short 
term,” said Peter Kurz, managing 
director of Merrill Lynch & Co. in 

Taipei. “Stocks rose too far too 

So far, the central bank has not 
followed through on its threat to 
raise interest rates as a way of cool- 
ing the market 

“The central bank is doing noth- 
ing much other than sending sig- 
nals,” said Allen Lai, an assistant 
vice president of W.I. Carr (Taiwan) 
Ltd. “More and more people are 
joining the party." 

But doing so is not cheap. Take 
Acer Inc., one of the world’s largest 
, makers of personal computers. At 92 
dollars, Acer's shares fetch about 
44.6 times its forecast 1997 earnings 
per share. 

Dell Computer Corp., by com- 
parison, can be purchased for less 
than 28 times its earnings in New 
York, and Compaq Computer Corp. 
fetches less than 20 times earnings. 

“The trouble with Taiwan is that 
there may be good companies, but 
you can find better value else- 
where,” Mr. Zia said. 

Still, Taiwan stocks have the 
economy in their favor. Consumer 
prices are rising ai 2.8 percent a 
year, the lowest pace in five years. 
That plus unemployment hovering 
near its highest rate in a decade gives 
the central bank little reason to raise 
rates to burst any stock-market 
bubble. (Bloomberg, Reuters) 

which measures trade in merchan- 
dise, services, tourism and invest- 
ments — leaped to 906.8 billion yen 
($8 billion) in May, up 1 54.9 percent 
from the same month last year. 

It was the second straight month- 
ly increase in the account, which 
jumped 92.7 percent in April com- 
pared to a year ago. The May figure 
was less than expected, but analysts 
said the surge will continue. 

“Japan is importing and imports 
are growing, but exports are grow- 
ing a lot faster,” said Mineko Sa- 
saki-Smith, senior economist at CS 
First Boston in Tokyo. 

Japan has been under pressure 
from other Group of Seven indus- 
trialized nations, and particularly 
the United States, to cut its huge 
surpluses in external trade and the 
current account. 

On Wednesday, the government 
snick to its line that the rising sur- 
plus was only a temporary phenom- 
enon and that Japan's economic re- 
covery would, as Washington has 
insisted, be based on domestic-led 
demand rather than exports. 

Finance Minister Hiroshi Mitsu- 
zuka said at a press conference that 
“a sharp rise of the surplus in the 
trade and services sector is unlikely, 
as we are trying to achieve domestic 
demand-led economic recovery.” 

Treasury Secretary Robert Rubin 
of the United States suggested 
Wednesday that it was too early to 
judge whether the Japanese were 
taking effective steps to prevent the 
surplus from growing to the point 
that it becomes a major irritant to its 
trading partners. 

Prime Minister Ryutaro Hashi- 
moto “ bas stated that the objectives 
are demand-led growth and the 
avoidance of sustained external sur- 
pluses,” Mr. Rubin said. “1 think 
that they have a plan they think will 
get them where they are going. If 

yen, leading to a 1 18.6 percent jump 
in the trade surplus year-on-year. 

A Finance Ministry official at- 
tributed the higher surplus in May to 
an increase in the consumption tax 
from 3 percent to 5 percent on April 
1, which cut consumer spending. 

“Since auto producers boosted 
their output ahead of the consump- 
tion tax hike, the reaction to that 
continues to be seen in May, in auto 
exports,” the official said. 

The dollar closed Wednesday at 
1 12.65 yen in Tokyo trading. It has 
fallen 11 percent against the Jap- 
anese currency since May 1. 

The stronger yen also pressured 
stock prices, sending the benchmark 
Nikkei 225 index down 0.79 percent 
to close at 19,697.17. 

(AP, AFP, Bloomberg) 

Investor’s Asia 


Hang Song ' 

Singapore - 
Straits Times 

Nikkei 225 

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Hong Kong' Hang Seng 

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Nikkei 225 

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Kuste Ulmpur Composite 







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Composite Index 





Stock Market !ndax 9,36Z-68 




PSE- • •• - 




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Source: Telekurs 

Inn-man-in.l H.*ruU! Tribune 

Very briefly: 

Sumitomo Fires 
2 Executives 
Who Sued It 

Bloomberg News 

TOKYO — Sumitomo Bank 
of California Corp. said Wed- 
nesday that it has dismissed two 
employees who had filed a law- 
suit accusing the bank of hit 
risky loans and avoiding 
mg money to minorities. 

‘ ‘They were making defama- 
tory statements about the com- 
pany,” said Kyle Tatsuraoto, a 
spokesman for the U.S. sub- 
sidiary of Sumitomo Bank Ltd. 
of Japan, one of the world's 
largest banks. 

Charles Walch and Bruce 
Lenox, two loan officers, sued 
the bank last month, charging 
that it destroyed evidence to 
cover up violations of U.S. 
banking laws. The bank has 
denied the charges. 

• Nomura Securities Co. and two of its former executives, 
Hideo Sakamaki and Nobutaka Fujikura, were indicted on 
additional charges for alleged payoffs to corporate racketeers, 
including 320 million yen ($2.8 million) in March 1995 to 
Ryuichi Koike, and 80 million yen to two other unidentified 
racketeers, NHK television reported. 

• South Korea's gross domestic product will grow 6.2 per- 
cent this year, according to the state-run Korea Development 
Institute, which raised its projection from 6 percent, citing 
stronger-than-expected exports. 

• North Korea’s economy shrank for the seventh year in a 
row in 1996, according to an estimate by the South's central 
bank. Bank of Korea, with gross domestic product dropping 
3.7 percent after a 4.6 percent decline in 1995. 

• Coles Myer LtcL’s chairman. Nobby Clark, who took up the 
post in October 1995 and is credited with steering the Aus- 
tralian retailer through a turbulent period of scandals and 
boardroom friction, retired and was replaced by Stan Wallis. 

• Japan's Ministry of Posts & Telecommunications said it 
would lift a ban next month on Internet-based phone services 
and scrap other restrictions in December to allow the bulk 
leasing of phone lines owned by international phone-service 
companies to new competitors. 

• Hong Kong’s financial secretary, Donald Tsang, said the 
government of the special administrative region was con- 
cerned that labor legislation, including provisions for col- 
lective bargaining, adopted in the last days of British rule, 
could threaten competitiveness and deter investors. 

• Car sales in the Philippines totaled 40.478 in the first half of 
1 997, a decline of 7.8 porcenr from a year ago. the Chamber of 
Automotive Manufacturers of the Philippines said, in pan 
because of delays in bank approvals of car loans. 

Bloomberg. Reuters, AFP. AP 

‘Red Chips’ Plummet 6.9 Percent in Hong Kong 

Bloomberg News 

HONG KONG — Chinese “red chips," 
the hottest stocks in Hong Kong, tumbled 
Wednesday amid talk that some of the 
companies are being investigated by the au- 
thorities on the mainland. 

The index of mainland-backed companies 
fell 6.9 percent, led by China Resources 
Enterprise Ltd The index has shed more than 
10 percent the past three days. 

“There are rumors that Chinese regulators 
are investigating some of the red chip compa- 
nies to see if they gave preferential treatment 
to some of their directors in allocating 
shares” from their initial public offerings, 
said Terry Cheung, senior marketing man- 
ager Yamaichi International (HK) Ltd 

A spokesman for the China Securities 
Regulatory Commission said he did not 
know of any investigation. 

“This whole episode is an illustration of 
how overheated Hong Kong’s market in 
China stocks has become — and bow closely 
aligned Hong Kong’s market is to China 
now,” said Graham Muirhead, a director of 
HSBC Asset Management Hong Kong Ltd. 
which owns 42 percent of its Asian stocks, 
outside Japan, in Hong Kong. 

In the past month stocks traded in Shang- 
hai and Shenzhen have plunged as regulators 
there cracked down on speculation by 
Chinese companies and investors. Since 
many of the same investors also have money 
in Hong Kong- traded stocks, they may be 

forced to sell to cover their losses in the 
domestic markers, Mr. Muirhead said 

■ Beijing Galls for Upbeat Coverage 

China's official Xinhua news agency sent 
an internal directive to leading securities firms 
and newspapers asking them to help prevent 
stocks from extending their declines, 
Bloomberg News reported from Beijing. 

The directive, in the form of a commen- 
tary, instructed analysts and newspaper re- 
porters to write positive articles about 
companies and the stock market, according 
to two traders who have seen it. They spoke 
on condition of anonymity. 

Xinhua officials could not immediately be 
reached for comment. 

71 L? 

News Corp. Sells Off Magazine Holding 

ii. *i 

CcmvUett by Omr Suff FwmDaparba 

SYDNEY — Rupert Murdoch’s 
• media and entertainment con- 
l.glomerate, News Corp.. said 
^Wednesday it would leave the 
"Australian magazine-publishing 
' field as part of its program to sell 
assets to finance expansion. 

News Corp. confirmed it had 
I" sold its 40 pentent holding in PMP 
P Communications Ltd., an Aus- 
. tralian magazine publisher, in 
_ 325 million Aus- 
dollars ($24L6 million). It 

I i did not say who had purchased the 

PMP publishes titles such as TV 
jrWeek .and 'New Idea, a women’s 
magazine. It recently said that its 
Itpretax earnings in the year that 
tended Jane 30 would be 15percent 

to 20 percent lower than the 62 
million dollars it earned in the pre- 
vious year. 

News Corp. is grappling with a 
softer advertising market and 
problems stemming from last 
year's acquisition of the compact- 
disk company Sboxnega. 

The sale of News Corp.’s in- 
terest in the Australian multimedia 
group brought the total raised in the 
company’s asset-sale program to 
$478 million since early June, more 
than half the $800 milli on target 
that Mr. Murdoch set in an an- 
nouncement to the financial com- 
munity in May. 

Mr. Murdoch’s aggressive ex- 
pansion over the past three years 
into U.S. movies, network tele- 
vision and satellite television has 

forced News Corp. to raise cash 
this year to soothe market and rat- 
ing-agency concerns about rising 
debt levels. 

News Corp. announced last 
week ibe sale of its 50 percent 
stake in Australian Newsprint 
Mills to New Zealand’s Fletcher 
Challenge Paper Ltd. for 293.5 
million dollars. 

Analysts said News Corp.’s sale 
of 101.6 million PMP shares at 
3.20 dollars each to institutional 
investors showed it was serious 
about selling poorly performing 
assets in low-growth media sec- 

News Corp. shares closed at 
6.53 dollars, down 0.01 , in Sydney 
trading. PMP shares closed 0.46 
lower at 3.19. (AP, Reuters) 

U.S. Banker Is Subject 
Of Singapore Inquiry 

Canymhii bf Oar Sjjff Finn DUpatrita 

SINGAPORE — Singapore’s white- 
collar-crime agency confirmed Wednes- 
day that it was investigating a criminal 
complaint against an American banker in 
connection with an alleged $30 million 
fraud case. 

Kevin Wallace, 46, formerly with Mer- 
rill Lynch International, was released on 
bail of more than 1 million Hong Kong 
dollars ($129,000) Tuesday, a day after he 
was arrested in the Chinese territory. Mr. 
Wallace was Merrill Lynch's top-grossing 
financial consultant in Singapore before he 
was fired in May. 

Merrill Lynch has filed a criminal com- 
plaint against him in Singapore, alleging 
that he engaged in unauthorized trading, 
misrepresenting or falsifying clients ' state- 
ments and forging clients' signatures. 

A spokeswoman for Singapore's Com- 
mercial Affairs Department declined to 
release further details. A Merrill Lynch 

spokesman said the company was cooper- 
police in their 
(AFP, Reuters ) 

aring with the Hong Kong 

*7 U 

^tNDIAs Foreign Investors Remain Wary Despite New DelhVs Economic Reforms 

f; Continued from Page 11 

■ That perception is reflected in the 
decline m U.S. trade missions to' India. 
Only thrce missions visited here last 
winter, compared with 12 missions 
during the previous two winters.' Vis- 
its by U.S. executives are also down, 
embassy officials in New Delhi said. 
r Unlike in the early 1990s, project 
proposals usually win approval from 
the Foreign Investment Promotional 
Board in a matter of days instead of 
months even years. But Japanese 
investors, newcomers to -India, .art) 
finding that their bureaucratic week 
sfrnply begin later. . .. 

_ TLast year, several montits into 
If Wnldmg a factory, the. zipper-maker 
YKKCoip. of Japan became em- 
bjofledin a court case filed against the 
government by the association of Idt 
gran zipper manufacturers, who ar- 
gued that then small-scale industry 
should be spared competition from a 

multinational giant. In another case, 
the Indian customs authority has ac- 
cused Sony India Ltd., a wholly 
owned subsidiary of Sony Co rp., of 
evading about $11 million in duties 
since 1995. Sony says that the Foreign 
Investment Promotional Board au- 
thorized it to import ready-to-as- 
semble color televisions at a special 
rate until the sets could be completely 
produced locally. 

Meanwhile, the multiparty coali- 
tion led by Prime Minister Inder Ku- 
mar Gujral has unveiled measures 
; that a boon to foreign 

* Last week, the government said it 
would give nine large state-owned 
companies financial autonomy, in- 
ducting the freedom to form joint 
ventures with foreign companies. 

• *In May, Parliament passed a 
budget that cut persona] and corporate 

•The government has opened 

coal-mining and highway construc- 
tion projects to private investors. 

•A telecommunications -regulat- 
ory board has been established to 
oversee cellular and basic telephone 
services nationwide. 

“There’s quiet, solid progress,” 
said Gurcharan Das, a consultant and 
former head of Procter & Gamble Co. 
in India, but added, “It’s reform by 
stealth.” If the government tries to 
pass bolder measures, its Communist 
coalition partners “will jump on 

That, say many, is the problem. Mr. 
Gujral must balance the wishes of 
reformist cabinet members, such as 
his finance minister, Mr. Chidam- 
baram, and Industry Minister Mura- 
soli Maran, with the demands of 
Communist members in the govern- 

"Even if there are two steps for- 
ward, it's the one step backward that 
investors remember,” said Akram 

Fahmi, chairman of the Indian nni t of 

Seagram Co. 

Such a step backward, investors 
say, would be a new broadcast law. 
which, if passed by Parliament, would 
require foreign satellite operators, 
many of whom already transmit their 
channels into India from neighboring 
countries, to establish local transmis- 
sion centers and give up majority 
stakes to Indian owners. 

An aviation policy approved earlier 
this year barred foreign airlines from 
investing in Indian carriers. The 
policy sounded the death knell for a 
proposed $670 million joint-venture 
airline between Singapore Airlines 
Ltd. and Tata group of India; the deal 
was also seen as a post-Enron Corp. 
bellwether of foreign investment. Mr. 
Gujral has since requested a review of 
the aviation policy. 

But Mr. Fahmi said the moves may 
be a bit late, * ‘The bad taste has already 
settled in the mouth of investors.’' 

Annual Reports 

Further to the two advertisements which appeared 
in the International Herald Tribune on June 26 and 
July 7, please send me the Annual Reports for the 
following companies or e-mail your requests to 
Annual-Report@iht. com 

1 □ Cogema 

2 □ Dexia 

5 □ Skanska 

6 □ SKF 

3 □ Lafarge 

4 □ Modo 

Name (Dr/Mr/Mrs/Ms) 

First name 


7 □ Statoil 

8 □ Union Bancaire Privee 




City — 

E-mail address: 



Mail or fax this coupon to: 
Monica Barron 
International Herald Tribune 
181 Avenue Charles de Gaulle 
92521 Neuilly Cedex, France. 
Fax: 33 (1)41 43 92 12. 

' .--T- X? 




_ Ora BaraorAgcncc Fpuk-Pih* 

The leader Joakim Haeggman 
lining up a putt Wednesday. 

Swede Grabs Lead 

GOLF Joakim Haeggman shot a 
course-record 8-under-par 63 
Wednesday to take the first-round 
lead at the Locli Lomond World 

Tom Lehman, who will defend 
his British Open title at Royal 
Troon next week, shot 65 and Colin 
Montgomerie, winner of the Irish 
Often last Sunday, made a 2-under- 
par 69. (Reuters) 

• John Daly, who was treated for 
alcoholism this spring, has pulled 
ont of the British Open, saying his 
“personal health” would not allow 
him to play. I AP) 

Driver’s Father Dies 

formula ONE Johann Berger, 
father of the Austrian Formula One 
driver Gerhard Berger, died early 
Wednesday after his private plane 
crashed in the Alpine region of Tir- 
ol, local police said. 

Berger, 62, flew into a wooded 
mountain in thick fog. (Reuters) 

Old Balkan Rivals Clash 

soccer Two of the dominant 
teams from the old Yugoslavia, Bar- 
tizan Belgrade and Croatia Zagreb, 
formerly Dynamo Zagreb, will face 
each other in the first qualifying 
round of the European Cup later this 

Wednesday's draw brought the 
old rivals together for the first time 
since the breakup of Yugoslavia. 
They last met in the old Yugoslav 
first division in May 1991. 

“From a sporting standpoint it's 
a difficult match,” said Zarko Ze- 
cevich, Panizan’s general secre- 
tary. “But we will just approach 
this as another football game and let 
others worry about other things.” 
Vlatko Markovich, Croatia 
Zagreb’s coach, said: * ‘It is the most 
important match in the draw. We 
think we are the better side and there 
is nothing else to add.” (Reuters) 

Royals Replace Manager 

baseball Bob Boone was fired 
Wednesday as manager of the Kan- 
sas City Royals and replaced by 
Tony Muser, the Chicago Cubs’ 
hitting coach. Muser inherits a team 
that is 36-46, 916 games behind 
Cleveland in the American League 

The Royals also fired their hit- 
ting instructor, Greg Luzinski, and 
first base coach, Mitchell Page, and 
replaced them with Frank White, a 
former star second baseman for the 
Royals, and Tom Poquette, another 
former Kansas City player. (AP) 

Anti-Olympic Flame? 

OLYMPICS An arson fire badly 
damaged a tennis hall outside Stock- 
holm on Wednesday. It was the 
latest in a series of attacks possibly 
carried out by foes of Sweden’s bid 
for the 2004 Summer Olympics. 

In the last two months, fires have 
damaged four other sporting sites in 
the Stockholm area, while a fire- 
bomb scorched the home of former 
Prime Minister Ingvar Carlsson, a 
supporter of the bid. < AP ) 



THURSDAY, JULY 10, 1997 

World Roundup 

Alomar’s Homer, at Home, Carries AL to Victory 

Indians 9 Catcher Pens Script 

By Mark Maske 

Washington Post Service 

CLEVELAND — The 68th All-Star 
Game was one of those special nights 
when real life came up with something 
better than anything in the most sen- 
timental of movie- scripts. 

Sandy Alomar, the hometown favor- 
ite who had dedicated this game to his 
grandmother, who died last weekend at 
96, ripped a two-run, tie-breaking home 
run in the seventh inning to give the 
American League a 3-1 triumph over 
the National League on Tuesday night 
before 44,916, the largest crowd ever to 
see a game at Jacobs Field. 

The Cleveland Indians catcher re- 
ceived boisterous ovations from the 
crowd for virtually everything that he 
did. But none of the ovations was louder 
than the one he received when he lifted a 

g itch from the San Francisco Giants' 
hawn Estes over the left field wall with 
two out in the bottom of the seventh. 
Estes had issued a one-out walk in the 
innin g to the New York Yankees’ 
Bemie Williams. 

Alomar became the first Indians play- 
er to hit a home run in an All-Scar game 
since Rocky Colavito in 1959, and the 
first major-league player to hit an All- 
Star home run in his home ballpark since 
Hank Aaron did it in Atlanta in '72. 
Alomar also became the first player ever 
to be nam ed the most valuable player of 
an All-Star game in his home ballpark. 

“You could see it in his eyes, the 
starlight and the magic,” said Jim 
Thome, Alomar's teammate both as an 
All-Star and an Indian. 

The AL, which ended the NL’s three- 
game All-Star w inning streak, got a 
second-inning homer from Edgar Mar- 
tinez off the NL starter, Greg Maddux. 

The AL starter. Randy Johnson, 
provided a humorous second-inning 
moment with Larry Walker, and he and 
Roger Clemens, David Cone, Justin 
Thompson and Pat Hentgen limited the 
NL to one hit — a thud-inning single by 
Jeff Blauser — over the initial six in- 
nings. Javier Lopez’s seventh-inning 
home run against Jose Rosado evened 
the score for the NL at 1-1. 

Rosado got the victoiy for the AL, 
and Mariano Rivera worked the ninth to 
finish off the AL’s three-hitter and 
notch the save. Estes took the Joss. 

Much of the pregarae attention fo- 
cused on the Johnson- Walker matchup 
and whether it would produce a John 
Kruk-type experience for the Colorado 
Rockies' outfielder. 

During the 1993 All-Star Game in 
Baltimore. Johnson threw a fastball 
over Kruk’s head to the backstop. The 
left-handed-hitting first baseman mo- 
tioned to his chest, as if his heart were 
beating rapidly, then struck out with a 
meek swing on a slider from the im- 
posing left-hander. 

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1 1 -ran for Ripken In tin 5th. 

1 LOB— Natfanol & American 4. 2 B— By Anderson (1). 1 

HR— EMortlnez fit off GModdux; SAJomar (1) off I 

1 Estes J Lopez HI off Rosado. 

I RBls— JLopez (11. EiWai firtez (II. SAJomar 2 £ZJ. 1 


C5 — EMarltnei 111. 

Runners left In scaring position— Nat. 3 (Gwynn. 

L Walker. Qoytoni; Am. 2 (By Anderson. Griffey Jr). . 



By Dave Anderson 

New York Times Service 

CLEVELAND — The small black ‘ 
ribbon was pinned to the chest of Sandy. . . ; 
Alomar Jr/s white Cleveland Indians.. 
uniform. Another small black rib bod 
was on Roberto -Alomar 7 s white Balf. , 
timore Orioles uniform. 

Their 96-year-old grandmother, ; • 
Tonee Valazquez, had died last week ia. 
Puerto Rico, but their mother didn’t tdl ‘ 

Sandy anH Robbie of her death untij 
Sunday. On purpose. - 

“She had told our mother that when ja 
she died,” Sandy Alomar said, “she*fyf 
didn't want us to miss any games to go 
to the funeral.” _ 1 '' 

So the Alomar brothers played in V 

Tuesday night’s All-Star Game at Jacr 
obs Field Robbie made two sparkling. 
defensive plays at second base, ana 
Sandy hit a two-run homer to providd 
the American League with a theatrical 
3-1 victory. • 

“This one’s a topper,' * Sandy Alo-- 
mar said. “This home run before a 
hometown crowd. You only get one - , 
chance to do this in an All-Star Game in. 
the city where you play.” - 

Of all the Indians, the 31-year-olu \ 
catcher is currently the most popular; • 
With a 30-same hitting streak, he is - 

kin il-rfi lUnli/ Imiiiv IWw 

The AL’s Sandy Alomar hitting a two-run homer in the seventh inning. 

. . -maf* ■ 

Triauity CUiy/Ajicmc Francc-Prcwc 

Larry Walker of the NL, batting 
with his helmet on backwards. 

The left-handed-hitting Walker, who 
is leading the NLwith his .398 batting 
average and 25 homers, sat out the in- 
ter league game this season in which the 
Rockies faced Johnson. The two are 
friends and former minor league team- 
mates in the Montreal Expos organi- 
zation, and Johnson was ready for 
Walker on Tuesday night. 

Johnson threw a pitch high over 
Walker's head to the backstop when 
Walker batted with two out and the 
bases empty in the top of the second. 
Walker then put his batting helmet on 
backward and hit right-handed for a 
pitch, a ball from Johnson. Walker then 
returned to the left-hand batter’s box 
and drew a walk on a 3- 1 pitch. 

The AL manager, Joe Torre, sug- 
gested that perhaps the two had planned 
the moment at breakfast, but Johnson 
and Walker denied that and said they 
were" sticking to their stories. 

"When he throws a pitch like that, 
you just hope it’s high,” Walker said. 

Said Johnson: “We had a good time. 
The ball slipped out of my hand. You 
saw it. I went right to the resin bag.” 

Johnson got Ken Caminiti to ground 
to Cal Ripken for an inning-ending 
force, and the AL had a 1-0 lead soon 
thereafter. Martinez, the designated hit- 
ter of the Seattle Mariners who became 
the first DH ever elected in the fans’ 
voting because the position was on the 
ballot for the first time this year, led off 
the bottom of the inning by pulling a 
full-count pitch from Maddux over the 
left field fence for his first All-Star 
home run. 

Clemens took the mound after John- 
son’s two innings and yielded Blauser’s 
single to center field. Craig Biggjo fol- 
lowed with a ground ball toward the hole 
on the right side of the infield, but 
Roberto Alomar made a diving stop and 
got the out at first base. Blauser moved 
to second base on the play but was 
stranded when Clemens got Tony 
Gwynn to ground out to end the inning. 

Joey Cora made a nice defensive play 
in the sixth after taking over for Alomar 
at second base. But Rosado, the Kansas 
City Royals' flamboyant left-hander, 
couldn't hold the lead after taking over 
in the seventh. 

From Mugs to Bonuses: 
Incentives for All -Stars 

By Chris Baker 

Los Angeles Tones 

Dickson, didn’t get a bonus either “I’m 

CLEVELAND — The Hall of Fame 
outfielder Frank Robinson, who played 
in 12 All-Star games, was thrilled to get 
a bonus for making the team for the first 
time, in 1956. 

“I got a bonus all right, a ticket to get 
there,’ ’ said Robinson, who was the hon- 
orary National League captain for the 
game Tuesday night at Jacobs Field. 

In truth, he said: “It was just an honor 
to be voted onto the .All-Star team. The 
gift was the biggest thing. They had 
silverware, silver dishes and grandfath- 
er clocks. 

“You selected a gift, and that was it. 
That was the most exciting thing. We 
didn’t even get rings." 

The American League manager Joe 
Torre didn’t get much more for playing 
in eight All-Star games in the 1960s and 
’70s. “You got some beer mugs.” Torre 
said. "You got a chance to pick pewter 
mugs. There were no bonuses in- 

Times have changed 

Some players now have incentive 
clauses in their contracts, giving them 
bonuses of as much as $100,000 — Ken 
Griffey Jr. — for making the All-Star 

The Colorado Rockies’ first base- 
man, Andres Galarraga, got a $50,000 
bonus. “It’s motivation,” Galarraga 
said. ‘ ‘To make the All-Star team at first 
base is really tough because almost 
every first baseman in the National 
League is a good hitter.” 

Ail-Star incentives aren't standard. 

“I got a Happy Meal and all the 
Cokes 1 want," said David Justice of the 
Cleveland Indians. “To tell you the 
truth, f don't really care if 1 get a bonus. 
I’m just enjoying this.” 

The Anaheim Angels' pitcher. Jason 

a rookie, and it’s pretty hard to negotiate 
your contract with 40 days of service,” 

he said 

Chipper Jones of the Atlanta Braves 
received $25,000 for making the team.. 
“Yes, we make a lot of moiiey,” He 
said, “and that -would lead many to 
believe that we don't have a lot to go out 
and play for, that we just show up and 
throw our gloves out there." 

‘‘But everybody who’s here takes a 
lot of pride in the fact thar they’ve 
worked their tail off throughout the first 
half,” Jones said “All these things are 
for fans.” 

The Los Angeles Dodgers’ c archer, 
Mike Piazza, the leading vote-getter in 
the National League for the second con- 
secutive season, said the bonuses are 

“No one says Bill Gates makes too 
much money,” said Piazza, who does 
not get a bonus. 

But why should players who are paid 
millions get a bonus for playing well, 
something they already are paid to do? 

“Ask the general managers and the 
owners," said pitcher Denny Neagle of 
the Braves. “If they’re willing to give it 
to us, we're not going to complain. I 
think they feel that if you’ve had a good 
first half and have helped rhe team out, 
then they give you some sort of in- 
centive or bonus.” 

Jeff Bagwell of the Houston Astros, 
second in the National League in home 
runs with 24, was surprised to discover a 
$25,000 All-Star bonus clause in his 
contract. “We make a lot of money and 
to get abonus for coming here is kind of 
funny." he said. 

Infielder Tony Womack of the Pitts- 
burgh Pirates says making the All-Star 

With a 30-game hitting streak, he is ", 
leading the AL in batting with a .375 
average. As he rounded the bases, hg * J ' 
seemed to be floating in the euphona^ 
ifaih and' in the emotion of his .graneG? Vi - 
mother’s death. •: _ 

“I know my Grandma is in a'betce*. .. f* 
place; she was suffering a lot," he saia . 
later. “This game was dedicated to her,.: ■ 
and the rest of the season is dedicated to 
her. My home run in that situation is a . 
blessing from God." 

Sandy Alomar’s hitting streak is the? 
longest in the major leagues this decade: 

If he hits safely in his next two games*. ■ 
Thursday and .Friday at Minnesota > 
against foe Twins, he' would break foe . 
Indians’ record of 31 games, set ipl906 - 
by Napoleon Lajoie, a legendary Hall of 
Faroe second baseman and also a long- 
time Indians manager. . . 

v . ..With., hits in five more games,* h£ 

. Y^dtjd^reak foe record for a catcher of 
34 games, set in 1987 by Benito San- 

iiu. ■ ' -T-- 

; fiago, then with the San Diego Padres,.. 
If he were to eo on to win the battinff 

If he were to go on to win foe batting . . 
title, he would be the first catcher to ck£ 
so in the AL and only the second catchen 
in history. Ernie Lombardi of foe Cio- 
cinnati Reds won foe National League! 
batting title in 1938. y ' 

“I'm in a good groove right now," bei 
said. “Everything you see looks 'likeij?/ ' 
beach ball, and you hope it stays thM*/ _ 
way. I’m able to stay back and still react 
to foe fastball. I feel I have good bat 
speed now, and good bat speed is the 
most important part of hitting.” -. 

Shawn Estes, the San Francisco Gr- 
ants ’ 24-year-old left-hander With a 1 2- 
2 record, had an 0-2 count on Aiomaj:- 
with curveballs. “But then he threw, l 
don’t remember if it was a fastball or a-, 
changeup, and I hit it;” Sandy Alomar 
said. “But I don't consider myself . a 
homenin hitter. I think you got to hit 30 
home runs to be considered a home run ; 
hitter." ‘ 

He has 11 homers this season, blit 
only 64 for his career that has been "- ’ 
interrupted by spinal surgery and knee ' 
surgery. “My grandmother was very v ir- 
religious,'’ he said, "and what I learned f .£ 
from my grandmother was, good or bad, 

□ever give up. I’ve had a lot of injuries 
I wasted a lot of time in my career being 
on the disabled list, but I never gavfc 

U P-’ T 

team is reward enough. “I’m happy to 
be in foe All-Star game,” he said. "It’s 

And what would he say to his parents 
i Puerto Rico when he phoned them? 

only money.” 

"I won’t have to say anything,” he said, 
laughing. “My mom, Maria, will do ail 
the talking." ; 


Baseball’s Latest Realignment Plot 

Owners Discuss Plan That Would Break With the Game’s History 

By Murray Chass 

New York Tunes Sendee 

, -tv ■ 

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cle rac&g^br ttfo n$w. 

\book, heavers the 1 99§;pf§ bicycle 
: feeing $easbn - qne of the most drama- 
jheice aodsnow of 
fie eartyraqesjn theswelter- 
ing heat at '^ ^inper^m^cs, the 
iwk.fdk^s the ses af$ the racers in 
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3 ‘ job in ih.e.woM ;;*../%■ • 


"tretfv a&alifv boofetoies 

&OTational, POBI^ 

isoohsin.USA 54020. \ .. 

CLEVELAND — You don't like that 
plan? Try this one. 

That was foe approach Major League 
Baseball's realignment committee took 
Tuesday at a meeting designed to try to 
move forward in foe owners’ efforts to 
satisfy everyone in general and foe 
Tampa Bay Devil Rays and the Players 
Association in particular. 

Stymied in its effort to move the ex- 
pansion Devil Rays from foe American 
League West to the AL East and get the 
union’s approval on a 1998 schedule, foe 
committee debated Tuesday a radical 
realignment plan that would end the 
American and National Leagues as they 
have been known since the beginning of 
the century. 

The latest plan, which has no greater 
promise of acceptance than any other, 
would combine AL and NL teams in a 
mixture of two new leagues, one with 16 
teams, the other with 14. Each league 
would have two divisions of equal num- 
bers of teams. 

As with previous plans, the future of 
this one is uncertain because each team 
has veto power over changing leagues. 
Under this plan, 13 or 15 existing teams, 
in effect, would have to change leagues. 

The design of the plan is based on 
geographical considerations, and, ac- 
cording to a baseball official who dis- 
closed it, is aimed either at capitalizing 
on the increased interest shown by fans 
in foe geographical rivalries in inter- 
league play or at trying to pressure some 
clubs into accepting a more modest re- 
alignment plan. 

Under the proposed alignment dis- 
cussed Tuesday, the leagues and divi- 
sions would look like this: 

In League A, the East would comprise 
the Yankees. Mets, Orioles, Red Sox. 
Phillies, Blue Jays and Expos. The Cen- 
tral/South division would have foe Pir- 
ates, Indians, Reds. Tigers, Braves. Mar- 
lins and Devil Rays. 

In League B, foe Central would be 
made up of the Cubs, White Sox, Brew- 
ers, Twins. Cardinals, Royals. Astros 
and Rangers. The West would have the 
Padres, Aogels, Dodgers, Giants, Ath- 
letics, Mariners, Rockies and Diamond- 
backs. This plan would put foe most 
attractive geographical rivals in foe 
same divisions. 

Adoption of this or any other realign- 
ment plan would require a three-fourths 
voles of the clubs. 

Under a plan previously discussed, 
foe expansion Arizona Diamondbacks 
would play not in foe NL. as they had 

originally been told, but in the AL. The 
Royals would replace the Diamond- 
backs in the NL, playing with the Car- 
dinals in the Central Division, while the 
Astros would replace Arizona in foe NL 

With the Diamondbacks moving to 
the AL West, Tampa Bay could move to 
the AL East, with foe Tigers replacing 
foe Royals in the Central. 

But Jerry Colangelo, the Diamond- 
backs’ managing partner, has said he 
would refuse to change leagues. The 
expansion teams have veto power over 
changing leagues in the first two yeai s of 
their existence but not afterward. 

The realignment committee had been 
directed lo submit a report by June 30. 
with the clubs making a final decision by 
Sept. 30. But the committee has missed 
its deadline, and a realignment decision 
by SepL 30 would not enable the clubs to 
submiL a 1998 schedule to the union by 
the end of this month. 

The annual dare for submission of a 
schedule 10 foe union is June 30. but the 
union agreed to a one-month extension. 
Donald Fehr, ihe head of ihe union, 
indicated Tuesday that the union would 
consider a further extension. 

The union is highly unlikely to ap- 
prove a schedule that has Tampa Bay in 
the AL West. 

Regional Lineups [■FVtt 

This is how the major leagues EE jl . v 
would look under a radical ‘ ' Ftnumna mgl 

realignment plan discussed in Cleveland Tuesday -, 'A 
by the reaHgrwrient committee: " ; ' "■ 


EAST (7} 

Baltimore Orioles 

Boston Red Sox 

Philadelphia P hiBies 
Toronto Blue Jays 
Montreal Expos 


Pittsburgh - Pfrates 
Cleveland ^ 

Cincinnati Rad s 
Detroi t Tigers ■ ; 

Atlanta Brav es ; 
Florida MarUns !• . ]!• 

= A’?-** 

Tampa Bay 


Chicago Cubs 
Chicago White So x 
Milwaukee Brew ers 
Minnesota Twins 
St. Louis Cardinals 
Kansas Cit y Royals 
Housto n Astros 
Texas Rangers 

WEST |8) ■ 

San Diego Padres - ’ . V. ; . 
Anaheim Angels ; " 

San FranciscoGiarife 'If. . 

Oakland Athle Ek^^ . i- 
Seattle Mariners'" " \ *■ :• ■; 

\ * ’ J- 

Cotoradd Ro ckies ; v . 

Arizona -V ’ v. ’ 


day. anotfe 
'“The fa 
vear and r 
past becau 
£aid Jean-N 
Tour de Fn 
The foo 

marked by ; 
spectator w 
-You ha 
cycles v 









PAGE 19 





* Offered 

Dave And^'^- . 

w York riii.Ts i , ( 

AND — Th- 
pimed, olhei : he ^Hb,. t 
S While Cleveland 
nojer s malj h , d k K. 
berto Alomar's «k 
les uniform h,U: 
>6-y ear-old urjlldm , 
zquez. had did la s f^ 
■.buttheir mother di^ 

Robbie of hcr^^' 
i purpose. 

1 told our mother th,i u i 
Sandy Alomar 
us to miss any 

Ylomar brother, n|, V(M 
eht’s All-Star 
itobbie made i«„ 

? lays a, se .„„j sjf® 
l two-run homer !., w m 7 
an League with thej,^ 

ie's a topper." ^ 

“This home ran , 
crowd, You o C | ^ 
o this in an A I t-.Su r Cijrr^,, 
ere you pla\ ' 
w Indians, liu- v |- >U r^ 
currently ihc n-, Lt ,i p.^ 
-game hinins: -ircaL }> t: . 

: AL in battmi unh 5 p 
s he rounde l !he » 
w floating in the cu^horud 
.n the emoin.-n In-. 2 ^ 

• mv Gran dm.- ,• in j htitti 
was" suffer:r.£ ' fcsuj 
s game v\a> dcji.aiol to her. 

: of the sea^e • Jedi^ jtoi l-' 
me run in ill..; ,i!ujiwri i- . 
3m God." 

Jomar's hi:: mg 'ireAtfe 
he major league- ini- Jrvit 
afely in his ;-, \i i, .. ijn* 
and" Frida* .ii 

• Twins, he ■aoUm.! break -Ji: 

cord of 31 u* 

MtLajOie. k j.-n.lir. HJIi* 
nd baseman ! .ilvuka- 
is manager 

ts in five tf.i:nc- * 

& the ‘record \ ,vi-luoi 

set in 19f»” h > Hemu»Sjf 
with the S..i i Pi,-.- - PaJre- 
re to so or. - > n ; k‘ ?jnj ^ 
mid be the Ji:, - - .ii.ricr if 1 1 
L and onK the • ^ • >iio mm 
Ernie Lomi^i Ji w the*- 4 
is won the Njii.-iwl Lf-gs 
?in 1938. 

p.-jhinett. r. 
i 'k* hie • 

a good gro«iA e • 
tv thing you - 
, and Vi»u m*jv '« 

We to stay b*i.**«*** 
ball. 1 fee! i --'^2 

. and good tui & 
rtani purs ol hrit-ng 
Estes. the S:m Fwiki*« ■ 
air-old lefi-»L.nder«iJ^ 

bails. “Hu 

Sand' Ai«« 

•J cor,"- • 


_ . *h|, W 


indmotner **, 


i he >->> 

len he P h ° sid 
?ni. M-H” 



Minali Wins 
4th Stage of 

Tour, Amid 
More Falls 

The Associated Press 

PLUMELEC, France — Another 
day, another fall in the Tour de France. 
1 “The falls are more numerous this 
year and more dangerous than in the 
past because the speeds are greater.” 
said Jean-Marie Leblanc, director of the 
Tour de France. 

_ The fourth stage Wednesday was 
marked by another fall. Two riders and a 
spectator were injured this time. 

“You have to look at the evolution of 
the cycles which were made for speed to 

Tour di Franci 

the detriment of security,’’ Leblanc 
said. He mentioned the handlebars, the 
rider's position over the bars and the 
gear ratio, which makes die riders go 
faster but also is more dangerous. 

“It's like a car taking a curve in fifth 
gear instead of third.” Leblanc said. “It 
is less stable." 

The fourth stage of 223 kilometers 
(138 miiesj, from Plumelec to Le Puy du 
Fou, was won by the Italian Nicolas 
Minali of the Batik team, just ahead of 
Frederic Moncassin, a Frenchman with 

; Third was Erik Zabel. a German with 
the Telekom team, and fourth was 
Mario Cipollini. of Saeco. the overall 
leader by four seconds over Zabel. 

Throughout the day, the Tour was 
greeted in western France by thousands 
of fans lining the road, leaving narrow 
passages on the already narrow streets. 

Early in the day, a woman stepped 
onto die road to take a photograph, caus- 
ing both Fabiano Fontanelli. an Italian 
with the MG team, and Vicente Garcia- 
Acosia, a Spaniard with Banesto, to fall. 

Tyson Loses License and Is Fined 

He'll Be Out of the Ring for a Year, Perhaps Forever 

The As h\- lined Press 

LAS VEGAS — Mike Tyson’s box- 
ing license was revoked Wednesday, a 
punishment that could amount to a life- 
time ban. and he was fined a maximum 
S3 million for biting a chunk out of 
Evander Holyfield's ear during their 
heavyweight title fighL 

Tyson, who also "was ordered to pay 
legal costs, can apply for reinstatement 
in one year. But officials of the Nevada 
State Athletic Commission said Tyson 
might never have a license to Fight 

“Unless the commission changes its 
mind, this would be a permanent re- 
vocation,” said Donald Haight, the 
commission's legal adviser. “Without 
further action, the license would not be 

The commission could have suspen- 
ded Tyson, allowing him to return to the 

ring after a specified period, but state 

prosecutors sought stronger punishment. 

“Boxing is unlike any other sport. 
There is a fine line between boxing and 
chaos,” said deputy attorney general 
Gordon Fink. 

The commission, in a unanimous 
voice vote, also declared Tyson a “dis- 
credit to boxing” for biting Holyfield 
on both ears in their June 28 bout. 
Tyson, the former world champion, was 
disqualified after the third round. 

Tyson’s chief lawyer said the boxer 
should be allowed to fight again. 

“Mr. Tyson spoke to the world after 
the fighL fie told the world he was sorry 
about what had happened,” said the 
lawyer, Oscar Goodman. "After his 
boxing losses, he would shake his op- 
ponents hand. He was a gentleman, fie 
remains a gentleman today and retains 
his dignity today. ” 

On Goodman's advice, Tyson did not 
attend the hearing. He flew to New York 
from Las Vegas early Wednesday. 

“He said, ‘I’m sony.’ There's no 
reason to say it again. What more can he 
add?" Goodman said. 

Other states would be required by a 
new federal law to honor Nevada’s re- 

Tyson could fight overseas, but be- 
cause he is on probation following a 1992 
conviction for rape he may not get per- 
mission to leave the United Stales. Any- 
one associated with such a fight could 
then be banned by the commission. 

Holyfield. who is in South Africa, 
said earlier that a year's ban would not 
be enough. 

“Most boxers only fight one time a 
year,” said Holyfield. “He probably 
needs a year off to get himself better 
anyway. He probably needs the rest.” 

U.S. Soccer Remains in Its Infancy 

Pav4 PlvnVApii.c h»*Pi(« 

Fontanelli lying in the road after he crashed in the Tour on Wednesday. 

By Jere Longman 

.V,n Yuri Times Sr nue 

All three were taken to a hospital and 
a spokesman said the woman had come 
out of a coma. 

Leblanc said that to eliminate such 
dangers would ruin the Tour de France. 
' ‘It’s a problem of how big the Tour has 
become,” he said. "We can’t put the 
Tour on the autoroutes. It's completely 
impossible. We have to go through the 
villages to maintain the decor of the 
Tour de France with the public, the 

With the ambiance, however, come 
the hazards of narrow routes through 
small towns. The roads can barely 
handle village traffic in normal times, 
much less a caravan of 3,000 riders. 

team helpers, publicity cars and jour- 

Another fall late in the stage hindered 
some riders, including Alex Zulle, a 
Swiss rider with ONCE, who is re- 
covering from a broken collarbone from 
a fall in the Tour de Switzerland. 

Zulle has been involved in the three 
major group falls so far in this Tour. He 
has not been injured, but has been held 
up each time. He lost another 29 seconds 
Wednesday and is more than four 
minutes back. 

On Tuesday. Tony Rominger, anoth- 
er Swiss rider, was forced to quit the 
race after breaking his collarbone in a 













New York 



































Kansas Oly 















































Now York 

























St. Louts 















-*■ |s<Bn Fiandsco 






Las Angeles 










San Diego 





















Yam run 32 42 — 


























Nippon Ham 



















European Cup 


Wbttorwl Leogue 1, Amotajn Leogtw 3 

Japanese Leagues 


W L T Pa. GB 

YnkuS 47 27 — 435 — 

Hfamlrimu 36 34 - 514 M 


Hiroshima 5. Yokutt 2 
Yamlvri Z Chunfchi 1 
Hanshln w. Yokohama ppd due to rain 
Nippon Ham 8, Oris 2 
Ktoietsa 4 Setbu 3 
LotteS Dafei 1 


Tour de France 

I ■■TOriB ptadngs In flw 223 Ian (134L6 
mites) 4th mg* from Plumote to La Puy du 

l-Nicolo Mine* Holy, Batfls. s hours. *6 
minutes. 42 seconds 2. Frederic Moncassin. 
Front*. Gan. same time. 1 Erik Zabel Ger- 
many, Tetotom. U. 4 Mario CIpoBinL IMy. 
Sceca si. 5L Jeroen BHPeven& Netherlands. 
TVM, sJ. 6. Fflhkj Bogota. Itn^ MG. it. 7. 
Joan Unfpuu, Estonia Casino, si* 8. Shrait 
O'Grady, Australia Goa s.t. 9. Robbie 
McEwm. Australia Roabobank. vl. 10. 
Nkotoloda NnhLMGk*.l 
OVERALL! 1. Malta apolllid. 2156e44- 2. 
Ertck Zabel 4 seconds behind; 3. Chris 
Boanknaa Britain, Gm 35; 4 Jan Ulkidi, 
Germany, Telekom, 37; 5. Franck Vbn den 
Breuefca BrioPum. Map* 41; 4 Abraham 
Otana Spakv Banesto. 45; 7. Laurent Jo»- 
abort. Franca Onca 47i &. Frederic Mon- 
cnssln, 51; 9. Pascal Una Franca Big Mat 
Aober93. ldft lO-OscarCatnenziml Switzer- 
land, Mapel 1:03. 

Maribor Branik. Slwenta, vs. Deny Oly. 
IrctaiMfc 1FC Kosice, Slovakia vs. AA rones. 
IcHonck Pnrtnon Belgrade. Yugoslavia vs. 
Croatia Zagreb. Croatia; Valletta Malta, vs. 
Skanio Riga Latvia 

Pyunlk Yerevan, Armenia vs. MTK Bu- 
dapest Hungary; Cnisadeis. Northern Ire- 
land. vs. Dynamo Tbilisi Georgia Slicks Kra- 
tova Macedonia vs. Betar Jerusalem, te- 
reoet Steaua Bucharest Romania vs. CSKA 
Sofia Bulgaria Constiuctorol Chisinau, 
Moktova vs. MPKC Moryr, Belarus; 

Lmrtana Estonia vs. Jazz Pod Finland; Gl 
Gafu, Faroe Islands, vs. Rangers. Scoria rut 
Nefchl Baku. AzeifeaQaa vs. Widzcw Lodz. 
Poland; Dynamo Kiev, Ukraine, vs. Barry 
Town, Wales; Sion. Soritaedand vs. Jeunesse 
Esch, Luxembourg; Amrthosis Famagusta 
Cyprus, vs. Karedo Staulkd. Lithuania 
Kosice or Akranea vs. Spartak. Moscow. 
Russia; Pyunlk or MTK Budaped vs. Rosen- 
borg Trondheim. Norway; BeslkJos. Turkey, 
vs. Maribor SranBc or Deny Crty; Sian or Je- 
unesse Esdi vs. GaJafosoroy. Turkey; 
Otymplafcos Pfcwxra Greece, vs. Constnic- 
tarol or MPKC Mozyr 
SV Satzburg, Austria vs. Sparta Prague, 
Czed) RepubBc tFK Gothenburg. Sweden, 
vs. Gl Gotu or Rargare; Barcelona Spola vs. 
Vaflefta or Stonto Riga Brandby, Denmark, 
vs. Dynama Kiev or Barry Town; Newcastle 
Untied. England, vs. Parttzan Belgrade or 
Croatta Zagreb 

Feyenoaid. Netherlands vs. Lantana or 
Jan Pod Bayer Leverkusen. Gertnany. vs. 
Crusaders or Dynamo TMss Steaua 
Bucharest or CSKA Sofia vs. Paris St Ger- 
main. France; NefcN Baku or Widzcw Lodz, 
vs. Parma Italy; SReks Kiatovo or Betor 
Jerusalem, vs. Sporting Lisboa Portugal 
Anorthosfc Fmogusta or Kareda Siaullol vs. 
LierseSK. Belgium. 


PHILADELPHIA —Claimed OF Mid* Cum- 
mings off waivers from Pittsburgh Pirates. 
Transferred OF Danny Tartnbul to 60-day 
disabled Bst 

Atlanta -N amed PM Hubbard assistant 

PHOCHix —Signed G Rex Chapman and C- 
F John WlBams to 2-year contracts. Signed C 
Horado Llamas to i-year contract. 

saceamento —Signed F OK trier Solnt- 
Jean to 3-year contract. Signed F Lawrence 
Fundeiburke to 2-year csnlrDCt. 

vancouveb— S igned C Bryant Reeves1o6- 
year contract extension, through 2003-04 sea- 


AB1ZONA -Signed WR Anthony Edwards 
and LB Devon McDonald. 

green bay —Signed K Bred Conway and 
LB Anthony Hkks. 

Philadelphia -Signed FB Brad Baxter 
and OL Marc Lamb 2-year oontrods and 0T 
Jerry Craft* to 1-year contract. Released OT 
James Butter, CB Keilo C respina RB Carey 
Croom. C Dan Hoover. RB Maurice McGre- 
gor. G Kireem Swlnton and WR James 

PITTSBURGH -Signed PK Chris Jqcka. 

PHOENIX— Signed FRJckToctftet to 3-yeor 

TORONTO -Signed G Glenn Healy. 

NEW YORK — As Major League 
Soccer prepared for its second All-Star 
Game, Commissioner Doug Logan 
spoke of the league as a two-year-old 

When MLS began last season. Logan 
said Tuesday in a state-of-the-league 
address: “We had this infant baby sit- 
ting in a cradle. Everyone had taken 
great delight in the birth. As with new- 
born babies, nothing goes wrong. 
Everything is terrific. Everyone over- 
looks even the soiled diapers.” 

In the league's second season, 
however, no one is overlooking the 
small unpleasantries. 

“In a very real way, we’re admin- 
istering to a league that’s going through 
its terrible twos,” Logan told a gath- 
ering of reporters, players, coaches, of- 
ficials and sponsors gathered in New 
York ahead of Wednesday night’s game 
in Giants Stadium. 

The league's average attendance is 
15,500, down from 17,400 last season 
and significantly below Logan's pro- 
jection of 20,000. Gone is the curiosity 
factor of a new league. Rainy weather 
has been a factor; so has been the loss of 
top international players for World Cup 
qualifying matches. And it does not help 
that the teams in the two largest markets. 
New York/New Jersey and Los 
Angeles, are in last place in their re- 
spective conferences. 

Logan blamed himself partly for what 
may have been too rosy an attendance 
projection for 1997 after last year’s av- 
erage of 17.400 came in well above 
initial projections of 10,000 to 12,000. 

"Fifteen-thousand-five-hundred is 
very credible, except for the fact that 
this idiot went oat and said his goal was 
20,000,” Logan said. “By comparison 
it pales.” 

Some also believe that the league 
could have been more aggressive in 
marketing its second season and in re- 
cruiting well-known international play- 
ers. However, Logan remains buoyed 

“This is the same kind of problem 
politicians face when there needs to be 
an instant analysis of whether or not 
they’re any good,” Logan said. “We’ve 
got a very solid fan base. Any sport that 
is in the middle of its second year, and 
on a Friday night draws 140.000 fans for 
five games, is very healthy.’’ 

For further encouragement, Logan 
pointed to the improved' quality of play 
this season, steady television ratings, 
enthusiastic sponsors and expansion of 
the 10- team league next season to 
Chicago and Miami. 

Tuesday, the Miami franchise was 
christened the Fusion. 

“Every indication we have is pos- 
itive.” Logan said. “We’re ahead of 
where we wanted to be at this point in 
time in the first five years.” 

In the last month, die scoring average 
per game has increased from 2.6 to 3.1 
goals a game, according to Sunil Gulati. 
the league's deputy commissioner. At 
the same time, play is generally con- 
sidered more cohesive, especially on 
defense and with better goalkeeping 
provided by the likes of Walter Zenga of 
New England and Marcus Hahnemann 
of Colorado. 

“The product has increased on the 
field,” said John Harices, captain of the 
U.S. national team and a midfielder for 
the league champion D.C. United. 

“Foreign players have settled in, and 
the young .American players are starting 
to lift their level of play. Last year, some 
of them were nervous and panicked a 
little. Now they’re more confident.” 

At issue in the MLS’s second season 
is the league's single entity format. In 
other professional sports, franchises are 
owned individually, but MLS teams are 
centrally owned and player contracts are 
held by the league in an effort ro control 
marketing and costs. 

The single-entity concept is being 
chalienged by 10 players who filed an 
antitrust lawsuit last February', claiming 
the structure unfairly holds down sal- 
aries. Logan believes the earliest the 
case will go to court is late 1998. 

“I can’t get preoccupied with it,” 
Logan said. “We’ve got excellent legal 
advice that says we’re going to prevail, 
but there’s going to be a fight in the 

Some also wonder whether the 
single-entity concept restricts slumping 
teams, such as the MetroStars, from 
quickly righting themselves. Not so, 
Gulati said. 

“What does an NBA team do that is 
in last place?” Gulati said. “All they 
can do is trade and pray and fire their 
coach. They’re not going to get Michael 
Jordan or Patrick Ewing. MLS teams are 
no different.” 

dekver — N omed Byron Jones and Anltio- 
ny Barone mera assistant basketball toadi- 

Florida state— N amed COteman Cram- 
ford, Jim Platt and Mott Wingate mem as- 
sistant basketball coaches. 

KEAH— Named Robert M. James offenswo 
coordinator tor the football team and assis- 
tant coach tar the baseball team 

by attendance figures from the July 4 
weekend, during which 51.704 fans 
showed up in Los Angeles along with 
36,252 in Denver. 

By avoiding a repeat of an August 
attendance slump. Logan said he be- 
lieved MLS would still average between 
17,000 and 20,000 for the season. 

Botafogo Wins Cheapened Rio Crown 


RJO DE JANEIRO — The dis- 
credited and chaotic Rio de Janeiro 
championship finally came to an end 
with Botafogo beating Vasco da 
Gama, 1-0, to take the title in an 
atmosphere of apathy. 

Botafogo striker Dimba scored the 
only goal of the second game in the 
final play-off series, which was 
watched by a paltry crowd of 16,000 
Tuesday at the Maracana stadium. 
After losing, 1-0, in Saturday's first 
match, watched by just 9,000 fans, 
Botafogo needed a win to take the 
title. Rio finals usually attract crowds 
of 80.000. 

Under the eccentric format, the 
first team to six points takes the title, 
but Botafogo was given a four-point 
head start because it had won two of 

the three preliminary stages while 
Vasco won only one. 

The tournament had been devalued 
by brawls on the field, controversial 
refereeing, complete disorganization 
off it and a format that bewildered 
players and supporters alike. 

The final straw came in May when, 
with the tournament about to reach its 
climax, the Rio federation interrupted 
the action for one month at the request 
of Vasco, who had key players in the 
Brazil team in the Copa America. 

As a result, two key games were 
postponed with just five days' notice. 

When play re-staned last week, 
Flamengo was unable to play their 
matches because it was taking part in 
a tournament elsewhere and its two 
remaining games were awarded to its 
opponents by scores of 1-0. 














(Abhih tenant") 

1 jubsbk aura franc versus beauty 
( annc TUN era cad » n way bhui— r— 



Appears every Wednesday 
in The IntermarkeL 
To advertise contact 
Sandy O'Hara 
in our New York ofUce 
Tel.: (1-212)752 3890 
Fax: (1-212) 755 8785 
■or your nearest 1HT office 
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.' :■ il llllllH ifcr-hii-gr 

PAGE 20 


. •:. Vls^'A. 


Great Americans 

From Show-Biz Kid to Gay Rights Advocate 

don't like io use the 
words “Great Americans" 
because they sound so polit- 
ical. but what else can we call 
Charles Kura It and James 
Stewart? In a country where 
our role models 
are dwindling 
by the day. Kur- 
alt and Stewart 
exemplified the 
best in all of 

They repre- ™ ^ 
sented the peo- || 
pie we hoped Buchwald 
our children 
would admire. They were 
men who loved their country 
and dramatized it in the 
movies and on television. 

Generations grew up 
watching Jimmy Stewart and 
imitated him. He was the "aw 
shucks" guy of all time, the 
hero we most wanted to be. 

The movie that assured 
him immortality was “Ills a 
Wonderful Life," which has 
played Christmas after 
Christmas to the point that the 
audience can recite Stewart's 
lines with him. 

He fought our battles in 
that film and also in “Mr. 
Smith Goes to Washington." 
People are still searching 
for another “Mr. Smith" 
to come to the capital, but 

they can't seem to find him. 

In simple terms, Jimmy 
Stewart made us feel good 
about ourselves and the world 
we inhabit 

Charley Kuralt came later 
into the entertainment spec- 
trum. He achieved something 
that no other TV person had 
— Charley introduced his 
audience to an America that 
most of us didn't know ex- 

* ‘On the Road With Charles 
Kuralt" featured sheepher- 
ders on Montana, bricklayers 
in Texas, jumping frogs in 
California. He visited towns 
th3t no one had seen before 
and may never see again. 

Charley and I were friends, 
so I used to kid him when I 
saw him: "Charley, what 
does Mrs. Kuralt do when 
you're on Che road?" 

He chuckled and said. 
“She stays with her moth- 

We will miss Charles Kur- 
alt and Janies Stewart and 
their precious gift of talent, 
but we will miss them more 
because they are irreplace- 
able. It’s hard to think of two 
men today with their integ- 
rity. modesty and true grit. 

By Alex Witchel 

Ne h fork Times Service 

N EW YORK — You would 
think it was too hot to make a 

IN think it was too hot to make a 
fuss, or what passes for a fuss to 
New Yorkers. But one started 
nonetheless at the Greenwich Vil- 
lage restaurant Florenl when 
Chastity Bono walked in recently. 

People did the usual: They 
looked at her, looked away, slid an 
eye sideways to their friends, shif- 
ted in their seats, pretended to look 
over, under and through her, mur- 
mured to their right and nodded to 
their left, and within seconds a few 
enterprising souls were in front of 
her, proclaiming “We sat at the 
same table once! * ' or “I’m moving 
back to the Valley!" as if that mer- 
ited an invitation to Thanksgiving 
dinner. Oh, the effort! 

After 28 years as the child of 
Sonny Bono and Cher. Chastity 

Bono is an expert at being ex- 
amined. “The first time my girl- 
friend and I were followed by street 
photographers, she wanted to bash 
them.’’ Bono said. “But I said no, 
then you would be the lesbian Sean 
Penn. Just grin and bear it.” 

Which is behavior she is also 
expert at. She has been in the public 
eye since age 2, when she was 
carted out at the end of her parents' 
weekly variety show in the early 
1970s for rounds of “I Got You 
Babe." Since then, her mother’s 
idea of an outfit has evolved to a 
body stocking and a few tattoos, 
and her father has morphed from 
has-been entertainer to congress- 
man from California. 

Chastity Bono has morphed her- 
self, from show-biz kid to aspiring 
rock star to gay rights advocate. 
Last November .’she was appointed 
the entertainment media director of 
the Gay and Lesbian Alliance 

Evita Memorabilia 

The A%j«s hih'il Prey. 

hibition, '"Thousand and One 
Evitas: A Woman Who 
Changed History." offers Ar- 
gentines a chance to see Eva 
Peron’s dresses and other 
memorabilia, listen to radio 
broadcasts of her voice and 
watch her address huge rallies 
on black-and-white newsreels. 
The show runs until July 27 

For the older generations 
Stewart is a deep loss because 
he was part of our grow ing up. 
He was a star and like the stars 
of his era we worshiped him. 

Charley made television- 
watching worthwhile. There 
is a lot of junk on TV. so his 
shows were even more spe- 
cial because they entertained 
and educated us like nothing 
else on the air. 

We can't stop anyone from 
leaving us, but we can be 
very, very sad when they do. 
Unrealistically, we wish that 
they were with us. and we 
mourn because our country 
needs their presence more 
than ever. 

Chastity out of the house * 
when she discovered she L 
was gay. “Now, I’m glad . 
she reacted badly," Bono - 
said. “People can more -*£*** 

easily relate to it. They + 
can say, ‘Well, even Cher ? • - 
had a hard time.’ But she 
was able to get past it." 

There are still differ- 
ences with her mother, j 
she said, notably over the 
way she dresses — which 
is down. “She still hales 
it. but it doesn't upset me 
anymore — it’s not the j 
defining thing anymore,’* 

Bono said. “There’s stuff 
she respects and loves 
about me, so we agree to 
disagree. The other day 
she said: ‘I hate your 
shoes. Are they men's 
shoes?' And I said, ‘Yes, 
they are and O.K.. so you 
bate them.’ A few years 
ago, I would have been 
crushed. I’d never be 
caught dead in the stuff 
she wears, and it totally 
doesn't matter. I’m a 
butch dyke, I guess. 1 like 
men’s clothing. And ■ 
Mom says, ‘But you’re so 
pretty.’ And I say, ‘What Chasti 
about k.d. lang? She 
wears men's clothing.* And she 
says, ‘I know, but you’re so 
pretty.’ *’ 

And her father? She roiled her 
eyes. There has been friction be- 
tween the two since her father, a 


•jjr S tended New York . Urn-. 

x.W versity for a year. "Theal 
kJtT. dropped an idkrt^v^ 

: 4 ■ yjjt she said. * - It’s one ofm$ 

! »H few regrets. It wasjuststu- 

If P id * i dropped out. to beau 
Took, 'n’ roll band. I; ,wa%. 
mKSl never texribly academic-i 
ally inclined. Education! 
was never terribly sfi 

my parents ever gra< 

™ from high school My 

; failed gym senior year;- so 

-. v, : he pretty much graduated; 

. j/-> \ They’re both mcredT 
smart, well-read pfeo 
• self-educated.- 1 can- . 

member Mom. telling' 
school was important; be£ 
cause it taught you fro # tja£ 
‘ ^ C r leam, rather than wharydt£i 

i ' Bono ’ s ‘ Cer ^- 

■ -Vdfc mony-, produced one - 
• : bum, "Hang Out Yourpo^ 

’ ... etiy," before she deckfcd-^ 

to change direction. J&C 
girlfriend at the time died; 
of cancer, when Bono v 
24. “She was: a friend 
my mom’s,- always around 
when I was growing up£** 
hrvUidi/TJv iVw Emm she said. * ‘She was one of 

ij ... 

Chastity Bono, daughter of Sonny Bono and Cher: In the public eye since age 2. the fr-nse 

crimination against gays is legal in 
4 1 states, he actually said to me thar 
rhat was unconstitutional. While he 
was a congressman." She raised an 
eyebrow. “Frightening.” 

She said she likes her father’s 

Republican, was a co-sponsor of wife, Mary, bis fourth, and is close 

the 1996 Defense of Marriage Act, to his children from that marriage. 

which denies federal recognition of Chesare. 9. and Chi anna. 6. “It’s 
same-sex marriages and allows not like my father and I aren't talk- 

Against Defamation, after spend- 
ing a vear as a spokeswoman for the 

ing a year as a spokeswoman for the 
Human Rights Campaign, another 
gay rights advocacy organization. 
Which was after being outed by 
Star. At the time, she denied the 

Cher had initially thrown 

states not to recognize same-sex 
unions licensed in other states. 

“I would have a lot more respect 
for him if be really was anti-gay 
and voted this way, as opposed to 
being so great about it, which he 
was when I came out," Bono said. 
“He said stuff to me like, ‘Some- 
times you have to go according to 
the people who got you there.’ the 
constituent thing, that old excuse. 
And when I told him that job dis- 

ing.’ ’ she added. “It’s just that 
there’s not a whole lot to talk 

Though Bono spent her early 
childhood in Los Angeles, she 
moved to New York when she was 

that I should study at the Lee Stras- 
berg Tbeabrer Institute in L.A. over 
the summer, and I totally got into it 
My first year at PA, I Lived with the 
Strasbergs in New York, sleeping 
every night on the couch in Lee 
Stras berg’s study.” 

The following year, she moved 
to the apartment of a friend whose 
family welcomed her even though 
they didn't have enough beds. “I 
slept on the floor," Bono said. 
“You’re young, you adapt. Then 
midway through my junior year. 
Mom moved to New York." She 
smiled a gain. “I’m one of the few 

closeness.” She looked away. for a 
moment. “I don't know tf I could 

14 to attend the High School of gay people who loved high school. 

Performing Arts. “I was a de- 
pressed child in my early teens,” 
she said. “! had one best friend 
who lived far away. 1 wasn’t happy 
in school. Mv mom had the idea 

1 had always been around adults. I 
felt more comfortable being around 
them. High school was the first 
time I had friends my age." 

She graduated in 1987 and at- 

have gotten to where 1 am now if f' 
hadn’t gone through that. It hdped 
me get over the fear of coming out;- 
suffering that loss. I regret the 
things I never did with her. Lwasr 
always trying to be incognito. Not 
one was our then. It was before Jc.<L. 
lang and Melissa Etheridge.- 1 was. 
really afraid." 

She and her partner, Laura La. 
Mastro, have been together fbt al-. -^ 
most four years; they recently ' 
bought a house in Los Angeles, “fr. 
paid for my half myself,” BcrioicL 
said proudly. “My relationship^ 

right now is incredibly happy, bus*, 
when someone dies, I think it’s the 

when someone dies, I think it's the 
kind of thing that never goes away. 
It changes you. I am not the persoii 
I was before. 


I T’S a big statement: Noel Gallagher of the 
British group Oasis has boasted that his band is 

JL British group Oasis has boasted that his band is 
bigger than God. Echoing the late John Lennon, 
who once said that the Beatles were bigger than 
Jesus, Gallagher also said in an interview with New 
Musical Express, “I would hope we mean more ro 
people than putting money in a church basket and 

lacks a prime location on the Strip and its casino 
was forced to close in March 1996. 

saying 10 Hail Marys on a Sunday." Referring to 
two open-air concerts played by Oasis at a venue 

north of London last year, he asked: “Has God 
played Knebworth recently?" A spokesman for the 
Roman Catholic Church retorted: “About a billion 
members of our church don’t think Noel Gallagher 
is bigger than God. God has been around longer 
than Oasis . . . and He made Knebworth." 

Ivana and Donald Trump are back in the same 
boat — separated from their spouses. Ivana, as she 
prefers to be known, says it was her decision to seek 
the separation from Riccardo MazzuccheUi. de- 
spite his telling the National Enquirer thar he had 
dumped her. “In fact, the exact opposite happened, 
but I will not be drawn into a public debate about my 

application for a Spice Girls car. Among them^; 
Emma Bunton (Baby Spice). Geri Halliwdi ; 
(Ginger Spice), Mel Chisholm (Sporty Spice), Mel-.'. 
Browo (Scary Spice) and Victoria Adams (PostiL- 
Spiee) have amassed $80 million in a year. rf> 

I.M. Pei is adding a personal view .— his. wife’s ’Cj 
— to die design of a billion-dotlar UCLA medical ];{ 

center. The university announced that Pei, who f : ‘ 
designed the pyramid entrance to the Loirvte in -j, 
Paris as well as a wing of the National Gallery of ! | 
Art in Washington, bad been selected as die chief v 
designer for the hospital and two new laboratories. - - 

private life — I have always maintained my dignity 
and silence.” she said in a statement. She was 

and silence.” she said in a statement. She was 
married io Trump for 14 years before his relationship 
with Maria Maples led to their divorce. Trump 
married Maples, but they split up two months ago. 

Pei says he wants the design to include a park-like 
setting and pleasant views for patients. His wife;. 

Tbc A'vnacJ 

PLAY THAT THING — The bluesman B.B. King performing at the 31st edition 
of the Montreux Jazz. Festival in Switzerland, which continues through July 19. 

Debbie Reynolds and her Las Vegas hotel ven- 
ture have filed for bankruptcy protection. The fil- 
ings by both the actress and the Debbie Reynolds 
Hotel & Casino came two months after a SI 6.8 
million deal to sell the company fell through. 
Reynolds is stepping down as chairman, but Todd 
Fisher, her son from her first man-iage to Eddie 
Fisher, remains chief executive. Fisher said that the 
hotel would stay open and that Reynolds planned to 
continue her nightclub act there. The 193-room 
hotel has been losing millions of dollars a year. It 

A year ago. as they released their first single, for 
all the w orld knew the Spice Girls were merely the 
new flavor of the month. Today, their product range 
reads like that of a supermarket chain. The British 

setting and pleasant views for patients. His wife;, 
recently underwent a hip replacement and was , 
charmed by a river view from hex hospital room: -- 

patent office recently announced that apart from 
records, posters and T-shirts, it had received more 

A former lead singer of Motley Crue claims in. a: 
lawsuit that the heavy-metal band dumped him and) 
bad-mouthed him rather than paying him for histj 
work. John Corabi worked on an album released? 

than 100 applications for trademarks bearing the 
Spice Girls name. Soon you will be able to have 
Spice with everything, from shaving cream to 
toothpicks, from parasols to beer. There is even an 

in 1994 and was replaced when the band's original 
lead singer, Vince Neil, returned. Corabi is seeking 

lead singer, Vince Neil, returned. Corabi is seeking 
at least $4 million, contending he was a victim of 
fraud, slander and breach of contract. / ' 

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Check die list below for AT&T Access Numbers! 

AT&T Access Numbers 

Steps in follow for easy calling worldwide: 

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