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Herald 


INTERNATIONAL 



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PUBLISHED WITH THE NEW YORK TIMES AND THE WASHINGTON POST 


The World's Daily Newspaper 


Paris, Saturday-Sunday, July 12-13, 1997 



No. 35,571 





NATO Is Jeopardizing Peace, 
Bosnian Serb Leaders Warn 

' The Message: New Arrests Could Bring Bloodshed 


By Edward Cody 

H Inhington Pom Sen ice 


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PALE. Bosnia — The Bosnian Serb leadership 
warned Friday that the fragile peace in Bosnia had 
been jeopardized by a NATO operation in which a 
Serb accused of genocide was killed and another 
was flown off to face trial in The Hague. 

The Serb Republic, which governs Serb-held 
regions of the loosely unified Bosnian state, 
charged in a protest letter to General William 
Crouch, commander of the North Atlantic Treaty 
Organization's peacekeeping force here, that the 
incident had marked "a dramatic change" in the 
peacekeepers’ mission. 

‘The NATO-led force has exceeded its au- 
thority," declared Momcilo Krajisnik, the Serb 


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Raid in Bosnia: 
A Turning Point 
For Peacekeepers 


By Steven Erlanger 

New York Tunes Smice 

WASHINGTON — Planning began weeks ago 
for the British military operation that led to the 
capture of a Bosnian Serb war-crimes suspect and 
. the killing of another, marking an important shift in 
'T NATO strategy, U.S. and British officials said 
Friday. . 

Hie raid, they added, was prompted in part by 
the new British government of Prime Minister 
Tony Blair. 

The raid, carried out Thursday, was by British 
troops under NATO command and aided by U.S. 
logistical and intelligence support It followed a 
year of strong opposition by u.S. officials to the 
use of alliance troops to pursue war-crimes sus- 
pects. 

It is a sign of the new aggressiveness in carrying 
out the mandate of the troops in Bosnia that Sec- 
retary of State Madeleine Albright insisted on, 
despite reluctance by the military. 

Mr, Blair and President Bill Clinton approved 
the operation. 

British officials said the arrest orders for the two 
Bosnian Serbs 4 ‘were the first ones, but not the last 


ones. 


See RAIDS, Page 4 


representative on federated Bosnia’s three-man 
executive. “I am afraid we have come back to the 
situation we had before the Dayton peace agree- 
ment.” 

The official Bosnian Serb reaction, echoed by 
people in Pale, 12 miles (20 kilometers) east of 
Sarajevo, seemed designed as a warning. It con- 
veyed the clear message (hat further attempts to 
arrest Bosnian Serbs — particularly the top wartime 
leadership — would be likely to produce bloodshed 
among the 30,000 foreign troops, including 8300 
Americans, who enforce the peace agreement 
reached in Dayton, Ohio, in December 1995. 

Avoiding casualties has been a top priority for 
the Stabilization Force, as it is called, ever since it 
arrived here in early 1996. Fearing clashes, the 
NATO-led force for months resisted demands that 
it arrest Bosnians indicted for war crimes com- 
mitted during the 1992-95 conflict. But that hes- 
itation ended Thursday when British troops killed 
Simo Drljaca as he resisted arrest and captured 
Milan **Mico” Kovacevic. 

A peace force spokesman. Major Chris Riley, 
said Mr. Drljaca had fired a sidearm at the ap- 
proaching soldiers, wounding one in the leg. in 
reaction, he said, the, soldiers opened fire and killed 
him. Major Riley declined to say how many rounds 
had been fired. 

Mr. Drljaca's son and brother-in-law also were 
taken into custody after the confrontation, near a 
lakeside restaurant outside Prijedor. They were 
flown to The Hague along with Mr. Kovacevic in a 
U.S. C-130 Hercules transport plane but were 
returned home Friday after an identity check 
showed no charges against them. 

Mr. Kovacevic, a hospital director, was sched- 
uled to stand trial before the International Criminal 
Trib unal for the Former Yugoslavia. He and Mr. 
Drljaca, the foimer notice chief in Prijedor, 125 
miles northwest of Sarajevo, were charged in a 
sealed indictment with complicity in genocide 
against Muslims and Croats during the Serb 
takeover of Prijedor beginning in April 1992. 

Mr. Krajisnik spoke to reporters after a meeting 
here in the seat of the Serb Republic's government 
with Robert Frowick, Bosnia representative of the 
Organization for Security and Cooperation in 
Europe, and with ambassadors from the five con- 
tact countries seeking to restore peace to the trou- 
bled republics of former Yugoslavia: the United 
States, France. Britain, Germany and Russia. 

“People fear something has changed which 
could bring intoquestion the implementation of the 
Dayton peace agreement," Mr. Krajisnik warned. 

Major Riley, briefing reporters in Sarajevo, the 
■Sosnifrn capital, insisted that the peace force man- 
date remained unchanged: to arrest those indicted 

See BOSNIA, Page 4 



Romania Hears 
Clinton’s Pledge 

Staying Course of Reform 
Will 4 Open Door ’ to NATO 


By Michael Dobbs 

WmhingMi Pom Scn-nv 


President Emil Constantlnescu 
Clinton joining hands in front 


Giry GtKavVFhc VnKuml Pit** 

of Romania, left, and President Bill 
of a crowd in Bucharest on Friday. 


BUCHAREST — Making the first visit topost-Commuru'sr 
Romania by an American leader. President Bill Clinton 
assured Romanians on Friday that their country would get 
into NATO provided it "stays the course” of radical eco- 
nomic reform. 

Mr. Clinton’s trip to Bucharest was designed to overcome 
the disappointment felt by many Romanians over his rejection 
of their country's bid to join in tbe alliance's first expansion, 
along with Poland, Hungary, and the Czech Republic. 

"The door to NATO is open. It will stay open. And we will 
help you walk through it. the president told thousands of 
flag-waving Romanians chanting, “NATO, NATO!” and 
“Clinton, Clinton!" 

“The Romanian people have won the world’s respect for 
moving so far, so fast," Mr. Clinton added. 

The meeting rook place in University Square, where dozens 
of pro-democracy demonstrators were gunned down by the 
Romanian secret police in December 1989 during protests 
against the former dictator Nicolae Ceausescu. This time, 
there was a festive atmosphere, with people playing sax- 
ophones in Mr. Clinton’s honor and one man carrying a 
handwritten banner that read, “Bill, don’t sell us ro Russia." 

Telling the crowd that he was aware of Romania's desire to 
join the North Atlantic Treaty Organization at the earliest 
possible date, Mr. Clinton added: “I want that too — for 
Europe. America, and you. I say to you today: Stay the course. 

See ROMANIA, Page 4 


Lower Inflation Buoys U.S. Markets 


I The Dollar 1 

NewYoft 

Fnday 0 4pjj 

previous dose 

DM 

1.777 

1.7511 

Pound 

1.693 

1.6885 

Yen 

113.98 

113.105 

FF 

5.9925 

5.92 

+35.oT" 

Friday dose 
7921.82 

previous dosa 
7886.76 

- • -S&P 500 . ■ 

change 

Friday B4P.M - 

previous dose 

+2.89 

916.66 

913.77 


By Mitchell Martin 

hihrnutivnjl Heruid Tribune 


NEW YORK — American wholesale prices fell 
for the sixth consecutive month in June, die gov- 
ernment reported Friday, the first time in 50 years 
of such statistics that there has been such a long 
span of deflation. 

The news gave a lift to financial markets, with 
interest rates on 30-year bonds falling to the lowest 
levels of 1997 and stock prices resuming their 
advances toward record levels. Computer-related 
shares did- especially well, sending the Nasdaq 
Composite Index, which includes many technol- 
ogy shares, past the 1 ,500 level to a new record. 

America’s technology industry is widely cred- 


ited with increasing the efficiency of the American 
economy, although tbe benefits are hard to quantify 
and do not show up in many official statistics. Still, 
interest rates are falling, unemployment is low, and 
corporate profits are on an upward trend, and even 
the relatively strong growth of the economy cannot 
explain that unless productivity is rising faster than 
the official measures show. 

Even the most optimistic of economists does not 
suggest that the u.S. economy can continue to 
grow at its current pace, creating jobs but not 
inflation. 

While it does, though, Americans ore gening 
richer as their money maintains its purchasing 

See ECONOMY, Page 12 




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AGENDA 


Agrnrc Pramr-Pirw 

FIRE KILLS 78 IN THAILAND — A child being rescued Friday from a fire in the Royal 
Jomtien Resort hotel in Pattaya. At least 78 people died, and dozens were injured. Page 3. 


57 Years After Nazi Seizure, 
Looted Painting Goes Home 

After the German Army occupied France in 1940, art 
specialists criss-crossed the country in search of valu- 
able an to send home to Hitler and Goering. In a villa 
west of Paris, they found a painting by Albert Gleizes. 

The painting, "Landscape of Meudon,' ’ was shown in 
Paris and occasionally elsewhere' until this month, when 
the Musee National d'Art Modeme returned it to the 
family of Alphonse Kann, the owner who was abroad 
when the Germans arrived. 

There is criticism that French art authorities have 
shown little vigor in trying to locate, identify and return 
such confiscated art to the owners or relatives. Page 3. 

British Telecom Reconsidering 
Its Takeover Bid for MG Corp. 

British Telecom said Friday that it could nqt rule out 
renegotiating its $24 billion takeover of MCI Corp. after 
the second-biggest U.S. long-distance carrier issued a 
profit warning. 

MCI said late Thursday that it expected to post a loss 
for its local phone business of $800 million in 1997 — 
twice what it prev iously forecast — and possibly more in 
199S. As investors wiped more than £2 billion (S3. 38 
billion) off BT's market value, the company called it a 
“complex situation.” Page 11. 

Books .... Page 8. 

Crossword Page 9. 

Opinion Page 6. 

Sports Pages 20-21. 

The intermarket Page 7. 


The IHT on-line http://vjw'.v. iht.com 


Manila Lets Peso Float 
As Currencies Face Fire 

Malaysian Ringgit and Thai Baht Decline 

By Michael Richardson 

hiieniutiiuul Herald Tribune 


Orangemen Take a Step Back From Brink in Ulster 


■ OmrtMlKOarSMgFnMPisiknrtin ' 

BELFAST — British officials praised 
Northern Ireland’s main pro-Protestant 
organization pn Friday for calling off 
four marches through Roman Catholic 
areas and chaUengedthe IrishRepublican 
Army to respond whha new cease-fire. 


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Roman Catholic groups had threat- 
ened to swamp Belfast and London- 
derry with mass protests, and political 
sources said security chiefs tola Oi 
leaders that it could not guarantee 
safety of marchers. 

The decision was a major concession 
to Catholic nationalists. 

But it angered Orange hard-liners 
who saw it as a surrender to Sinn Fein 
and the Jrish Republican Army, who 
have fought British rule, in Northern 
Ireland for three decades. 

Joel Pation, leader of the far-right 
Spirit oFDrumcree group, said: ” hasn’t 
a compromise. It’s a capitulation.” 

He disputed predictions that (he con- 
cession might persuade the IRA to call a 
new cease-fire, the price that Britain has 
demanded for the group's entry into 
Northern Ireland peace talks. 

* A hard-line Protestant leader, the 
Reverend lan Paisley, said the Orange 
Order had surrendered, by canceling or 
rerouting Saturday’s marches. 


The Northern Ireland secretary, Mar- 
jorie (Mo) Mowlam, said in a BBC radio 
interview: “Being willing to make a 
decision as the Orange have is not a dirty 
.word where human lives are al stake. 
It’S very courageous.” 

“The fundamental issues are . till to 
be dealt. with,” she said, "and I hope the 
IRA will announce an unequivocal 
cease-fire.” 

In an decision late Thursday, the Or- 
ange Ordercalled off traditional parades 
in Belfast and Newiy, south of Belfast, 
rerouted another away from a hostile 
Catholic neighborhood in Armagh, and 
most surprisingly of all moved an entire 
march planned for Londonderry, the 
province’s second-largest city, to the 
nearby town of Limavady. 

Catholic opposition had threatened 
new and violent confrontations after 
three nights of rioting over another Or- 
ange march last Sunday. 

In Dublin, the Irish government said 
that the Orange Order had made a “pos- 


itive gesture" and that Catholic pro- 
testers should make “an equally pos- 
itive response." 

The IRA-allied Sinn Fein party gave 
a muted welcome, but emphasized that 
Orangemen still planned to march 
through at least two predominantly 
Catholic villages on Saturday. 

“I do think the overall project of 
rebuilding the peace process has been 
assisted if we remove what was an ob- 
vious potential for veiy. very consid- 
erable civil unrest," 'said the Sinn Fein 
chairman, Mitchel McLaughlin. 

- .Britain will not admit Sinn Fein to 
talks on (he political future of this 
British-ruled province until the IRA 
renews the truce it abandoned 17 
months ago. 

In Us Newry statement, the Orange- 
men struck ^ exceptionally conciliatory 
note, pleading “to cast out this cancer of 
sectarian hatred from our midst.” 

See ULSTER, Page 4 


SINGAPORE — The Philippines ef- 
fectively devalued its currency Friday 
as speculative attacks on Southeast 
Asian currencies intensified, further un- 
settling financial markets already con- 
cerned by slower growth, a property glut 
and mounting loan problems. 

The Philippine move ro let the peso 
float, which caught markets by surprise 
because authorities in Manila had sworn 
they would defend it. contributed to 
sharp falls by other vulnerable curren- 
cies. including the Thai baht and the 
Malaysian ringgit. 

But the news pushed Philippine 
s rocks higher, with the benchmark index 
of the Manila Stock Exchange recording 
its largest single-day rise in four years, at 
7.57 percent, as investors saw a cheaper 
currency and the prospects of lower in- 
terest rates spurring economic growth. 

The peso plunged 12 percent, as the 
dollar rose 10 29.45 pesos, irs highest 
level since September 1993, from 26.27 
pesos Thursday. 

Some traders said they expected fur- 
ther substantial drops in the peso and the 
baht, which Bangkok effectively de- 
valued July 2. when trading resumed 
Monday in Asia, as both currencies are 
still considered overvalued. 

Gabriel Singson, governor of the 
Philippine central bank, said he had 
decided to let the peso-dollar exchange 
rate fluctuate within a wider range to 
“remove the incentive for speculation" 
and to allow interest rates to decline 
gradually to a level “more compatible 
with the economy's requirements for 
sustainable economic growth.” 

But he added, “We expect the peso to 
be veiy volatile in the first few days, 
while it is seeking its true value.” 

President Fidel Ramos said the action 
“reaffirms the government’s commit- 
ment to do whatever is necessary to 
sustain our economic growth, control 



Erik Jr t*j4n,Kr<ncT' 

Mr. Singson, the central bank chief, 
widening the trading range Friday. 

inflation and generate employment 
through, among others, the protection of 
our international reserves," Agence 
France-PressC reported from Manila. 

In making the policy change, it was 
clear that the central bank hod decided it 
could no longer afford to keep pumping 
dollars into the market to defend the 
peso. The bank is betting that it will now 
be able to trim interest rates and keep the 
Philippines' six-year economic recov- 
ery on track. 

Based on the central bank's latest- 
figures. official reserves had fallen by 
$2.5 billion to just $10 billion since 

See PESO Page 4 


France Decides Not to Sell Thomson 


France’s Socialist government said 
Friday that it would not sell off its 
majority stake in Thomson-CSF, 
Europe's leading defense electronics 
company, casting doubts on projects 
to restructure the European defense 
industry to meet intensifying Amer- 
ican competition. 

But Prime Minister Lionel Jospin 


said the government would consider 
possible furure mergers to strengthen 
the Europe defense industry. The pre- 
vious conservative government had 
decided to sell Thomson. 

. The privatization had seemed 
likely to touch off a major realign- 
ment of the European defense in- 
dustry. Page 1 1. 


I 









INTERNATIONAL HERALD TRIBUNE, SATURDAY-SUNDAY, JULY 12-13, 1997 


Arafat Adds Fuel to Christian Fire 




By Serge Schmemann 

Neu- York Times Service 

HEBRON, West Bank — Intervening 
in an old dispute between rival Russian 
Orthodox churches, the Palestinian po- 
lice have forcibly evicted expatriate 
monks and nuns from Hebron’s only 
Christian church and given the church to 
representatives of the Russian patriarch 
in Moscow. 

The action came three weeks after 
Patriarch Alexy Q of Moscow, the head 
of the Russian Orthodox Church, made 
an official visit to Israel and formally 
asked Yasser Arafat, head of the Pal- 
estinian Authority, to recognize Mos- 
cow's claim to prerevolutionary Russian 
church properties under the authority's 
control. 

Mr. Arafat's aggressive intervention 
touched deeply rooted passions and dis- 
putes that still smolder eight decades 
after the Russian Revolution. 

Clerics of the expatriate church 
charged that the Palestinians had beat 
their monks and nuns in expelling them. 
The Moscow-based church charged that 
the expatriates had refused to share ac- 
cess to Russian shrines with the Russian 
church in whose name they were main- 
taining them. 

The focus of the dispute is a site 
acquired by the Russian Orthodox 
Church in 1868 that includes an ancient 
oak that was declared to be the spot 
where Abraham entertained three an- 
gels. The site was a major attraction for 
Russian pilgrims before the revolution 


and is the only functioning Christian 
shrine in Hebron. 

After the Russian Revolution, the 
property came under the control of an 
&nigr£ denomination called the Russian 
Orthodox Church Outside Russia, now 
based in New York. Despite the collapse 
of die Soviet state in 1991 and the rapid 
revival of the Russian church since then, 
the small exile denomination has con- 


Palestmians evicted 
expatriates from a Russian 
church in Hebron. 


tinued to view the Russian patriarch and 
his church as indelibly tainted by com- 
munism and itself as the true successor to 
the prerevolutionaiy church. 

What apparently persuaded Mr. Ara- 
fat to accede to the request of the Mos- 
cow patriarch was an incident during 
Patriarch Alexy’s visit last month, when 
he and a large group of Palestinian, Rus- 
sian and Greek Orthodox dignitaries 
were barred by &migr€ -nuns from vis- 
iting the Hebron church. 

The emigres earlier refused to receive 
the patriarch at a Russian Orthodox con- 
vent on the Mount of Olives. Then, evid- 
ently expecting that the Moscow del- 
egation would tty to visit Hebron, they 
hid the key to the church there. 

The patriarch arrived in Hebron after a 
formal lunch with Mr. Arafat, and his 
Palestinian hosts, chagrined to find the 


door locked, pried it open. According to 
Palestinian officials, Mr. Arafat was 
furious. 

Mr. Arafat's forceful intervention in an 
internal church dispute was bound to raise 
objections and apprehensions. But in his 
decision to recognize Moscow's claim , he 
was following a precedent set by Israel- 

Before the Russian Revolution, hun- 
dreds of thousands of Russian pilgrims 
flocked annually to the Holy Land, and 
the Russian state 'and church built nu- 
merous hospices, monasteries and 
churches to handle the influx. 

After the revolution, the properties 
were put in the trust of the Russian 
Church Outside Russia. But in 1948, 
after the Soviet Union became the first 
government to recognize the state of 
Israel, Israel returned all Russian church 
properties on its territory to the Moscow 
patriarch. In scenes not unlike those seen 


Qatar Summit: Will Anybody Go? 


By Douglas Jehi 

<Vfw York Tunes Service 

DOHA, Qatar — The tor- 
tured state of Arab-Israeli re- 
lations is illustrated by the 
fact that of all the countries 
invited to attend a conference 
here in November aimed at 
improving economic ties be- 
tween Arab nations and Is- 
rael, only Jordan so far has 
agreed to show up. 

The meeting is to be the 
latest in a series that began 
with much fanfare in Mo- 
rocco four years ago, but tire 
deteriorating ties between the 
Arabs and Israelis have left it 
in considerable doubt. 

Israel has not said whether 
it will come. Saudi Arabia has 
restated its view that the con- 
ference should not be held, 
and officials of the Arab 
League have said that most of 
its members agree. 

Even Egypt, the host of last 
year’s meeting, has said it 
will postpone a decision on 
whether to attend until it be- 
comes clearer what path the 
Israeli government of Prime 
Minister Benjamin Netan- 
yahu chooses to take. 

The Saudi foreign minister. 
Prince Saud al Faisal, said in 
Cairo on July 3 that his coun- 
try was boycotting the con- 
ference because Israel was 


threatening the Middle East 
peace’ effort Crown Prince 
Abdullah ibn Abdulaziz of 
Saudi Arabia went so far as to 
say that his government had 
advised Qatar, its tiny neigh- 
bor, to cancel the session. 

But Qatar, a maverick that 
has been the most aggressive 
among the Gulf nations in 
forging ties with Israel, has 
been steadfast in insisting that 
the conference will be held. 

Early last year, Qatar al- 
lowed Israel to open a trade 
office here, and it played host 
to Shimon Peres, then the 
prime minister. 

This country, three-quar- 
ters of whose population of 
600,000 are largely Indians, 
Pakistanis, and Filipinos who 


work as laborers, shopkeep- 
ers, and domestics, is already 
building a conference center 
where the meeting will be 
held. 

Qatar’s leader. Sheikh Ha- 
mad ibn Khalifa Thani, 
pledged during a recent visit 
to Washington that the meet- 
ing would go forward. 

* ‘The Qataris and the Jord- 
anians may be the only ones 
here, but there will definitely 
be a Qatar summit,” a West- 
ern diplomat here said. 

Others have expressed 
more optimism about the 
prospects for the meeting, 
which the United States re- 
gards as an important tool for 
forging business and com- 
mercial ties between Israelis 


and Arabs. Even Saudi Ara- 
bia may eventually recon- 
sider, an Arab diplomat said, 
but he added that such a re- 
versal most likely would hap- 
pen if Mr. Netanyahu's be- 
leaguered government 
collapses. 

A year ago, there was some 
doubt that the Cairo summit 
meeting would go forward. 
Mr. Netanyahu’s ejection as 
prime minister and his gov- 
ernment’s perceived hostility 
toward wider peace with the 
Arabs have so jarred most 
people in the Arab world that 
the warmth demonstrated at 
the first meeting, in Morocco 
in 1994, and the second, in 
Jordan in 1995, now seems 
like ancient history. 


TRAVEL UPDATE 


New Labor Woes for BA 

LONDON (AP) — British Airways, 
already losing millions in a flight attendants' 
strike, faced more labor troubles after 9,000 
ground workers rejected the company’s plans 
to sell its inflight catering operations. 

The Transport and General Workers Union 
said it would not decide until next week 
whether the workers will strike in the catering 
dispute. 

British Airways said it was “disappoint- 
ed" by the ground workers’ stance. Dozens 


more flights out of London's Heathrow and 
Gatwick airports were canceled. 

Americans have been advised to “take 
appropriate precautions" if traveling in 
Serbia-Montenegro, after the arrest of war 
criminals in Croatia and Bosnia. The arrests 
‘ ‘may raise the level of tension in the region,” 
the S tate Department said. (AFP) 

KLM Royal Dutch Airlines said it would 
start a joint service with its American partner 
Northwest Airlines between Seattle and Am- 
sterdam, beginning April 5, 1998. (AP) 


RELIGIOUS SERVICES 


AMSTERDAM 

CROSSROADS INTERNATIONAL 
CHURCH (mardsnominationat & 
Evangelical Sunday Service 10:00 
a.m. & 11:30 a.rtu Kkte Welcome. De 
Cusarstraat 3, S. Amsterdam Info. 
020-641 8812 or 020-6451 853. 

FRANKFURT 

English Speaking International 
Catholic Parish, St Leonhard, Afte 
Mainzar Gasse a, 6031 1 Frankfurt, 
Germany, Tel/Fax 069-283177, Mass 
schedule: Satudey 5 pm, Sunday: 10 
am Confessions: i/2fiair before Mass. 

FRANCE/TOULOUSE 
HOPE INTERNATIONAL CHURCH 
(EvangeScal). Swiday 630pm Le Grand 
Noble Hotel. 90 av. de Comebarrieu, 
Btagnac.TeL:05627411 55. 

FRENCH RIVIERA/COTE D’AZUR 

NICE: Holy Trinity (Anglican). 1 1 rue 
Buffa, Sun. 1 1 : VEhfcte: S Hughs, 22. av. 
Resistance. 9 am Tet 33 04 90 87 1 9 B3. 

MONTE CARLO 

MONACO CHRISTIAN FELLOWSHIP 
Worship Service. Sundays: 11 a.m. 
9, rue Louis Notary. Monte Carlo. 
Tel: 37792 16 95 47. 

PARIS and SUBURBS 

EMMANUEL BAPTIST CHURCH - 56. 
rue des Bons-Ralsins. 92500 Ruell- 
Malmateon. Summer Schedule: 9:45 
Wbishfo. 71:00 Coffee Hour. For mom 
info call 01 47 51 29 63 or check: 
tl!p3iWww.gaocafesj^ 

HOPE INTERNATIONAL CHURCH 
Hotel Orion at Paris-fo-Dafense. 0 bd. de 
Neuly. Worship Sundays. 930 am. Rev. 
Douglas MBer. Pastor. T.: 01 433304 06 
Mtool to b Defense Esplanade. 

SAINT JOSEPH'S CHURCH (Roman 
Ca#x**MASSNB*3LBtt&L630pm; 
Sun. 10 a.m., 12 midday. 630 p m. 
50, avenue Hoche. Paris 8th. Tel.: 
01 4227 za 56. Ue&a Charts da Gate ■ Etofe. 
RELIGIOUS SOCIETY OF FRIENDS 
(QUAKERS). Unprogrammed (silent) 
meeting for worship. Sundays 11 a.m. 
Canoe Quaker International. 114 bis, me 
da Vaugirard, 75003 Paris. Al Welcome. 
+330145487423. 

TOKYO 

ST. PAUL INTERNATIONAL LUTHERAN 
CHURCH, near Gdabashi Stn. TeL 3261- 
3740. Wbtship Service: 930 am Sundays. 

TOKYO UNION CHURCH, near OmatBsando 
SUbwsy Sea. Ttf: 340000(7. Worahp Sendees: 
Sunday - 830 & 1VQ0 am, SS at 9:45 am 


SWITZERLAND 

BASEL CHRISTIAN FELLOWSHIP 
EngSsh-Speafdng iton-de non (national 
TeT+41 61 302 1674. Sundays 1&30 
A&fate Strasse 13, 0+4056 Basel 

ZURKH-SWTTZERLAND 

ENGLISH-SPEAKING CATHOLIC 
MISSION; SI. Anton Church. 
MlnervastraBe 63 Sunday Mass: 8:30 
am & 11:30 am. Services held in the 
aypt of St Anton Church. 

USA 

If you would Re a free Bfcte couse by ma*. 
pbase contact: L’GGUSE da CHRIST. P.O. 
Box 5ia Staunton, IrxJana 47881 U.SJV 

THE EPISCOPAL CHURCHES 
OF EUROPE (Angfeum) 

PARIS and SUBURBS 

THE AMERICAN CATHEDRAL OF THE 
HOLY 7RMTY, Sui. 9 & 11 am, 10:45 
a.m. Sunday School for children and 
Nursery cere. Third Sunday 5 p.m. 
Evensong. 23, avenue George V, 
Paris 75008. Tel.: 334)1 53 23 64 00. 
Metro: Georgs V or Alma Marcaau. 

FLORENCE 

ST. JAMES' CHURCH Sun. 9 am «te I 
& 11 am. FSe II. Via Bemado Rucdtel 9, 
50123, Roronoe, Italy. TeL 3955 29 44 17. 

. FRANKFURT 

CHURCH OF CHRIST THE KING 
(Episeopa (/Anglican] Sun. Holy 
Communion 9 S 11 am Sunday School 
and Nusery 10:45 am. Sebastian Hire 
SL 22. 60323 Frankfurt Germany. U1. 2, 
3 MqueLAlea Tet 49/69 55 01 84. 

GENEVA 

EMMANUEL CHURCH, 1st & 3rd Sin 
10 am Eucharist: 2nd & 4th Sun. Morning 
Prayer. 3 rue de Marahoux. 1201 Geneva, 
SwfeBrtand. TeL 41/22 732 80 78. 


BRUSSELS/WATERLOO 

ALL SAINTS' CHURCH, 1st Sun. 9 & 
11:15 am. Holy Eucharist with ChUneris 
Chapel at 1 1:15. Al other Suidays 11:15 
am Holy Eucharist and Sunday School 
563 Chaussde de Louvain. Ohain, 
Befelum. Tel 32/2 38MS56. 

WIESBADEN 

THE CHURCH OP ST. AUGUSTINE 
OF CANTERBURY, Sun. 10 a.m. 
Family Eucharist Frankfurter Strasse 3, 
Wiesbaden, Germany. Tel.: 
481611506674. 


EUROPEAN 

BAPTIST CONVENTION 


THE CHURCH OF THE ASCENSION, 
Sun. 11:45 a.m. Holy Eucharist and 
Sunday School Nursery Care provided. 
Seytxrthstrassa 4. 81545 Munich (Har- 
lacfitng). Germany. Tel: 48B9 64 81 86 

ROME 

ST. PAUL'S WmflN-TH&WALLS. Sul 
B^O am Holy Eucharist Rite I; 1&30am 
Choral Eucharist Rite II; 10:30 a.m. 
Church School for cfdctan 8 Nureety care 
provided: 1 pm. Spanish Eucharist Via 
Napoi 58, 00184 Rome. Tel: 388 488 
3339 or 386 474 3569. . 


I.B.C., BERLIN. Rothenburg Str. 13, 
(Slegtitz). Sunday. Bible study 10.45, 
worship Service 12.00 noon. Charles 
Warlord, pastor. TeL 030-7744670. 

BREMEN 

Lao, Hohentohestr. Hermarrt-Bose-Str. 
Worship Sun. 17:00. Pastor telephone: 
0421-78 646 

BUCHAREST 

I.B.C.. Strada Pope Ruau 22. 35X) pm 
Cortact Pastor Me Kemper, TeL 312 3886 

BUDAPEST 

I.B.C., meets at Maries Zsigmond 
Gimnazlum, Torakvesz ut 48-54, Sun. 
10m Tel. 250-3932. 

BULGARIA 

LELC-. world Trade Center, 36 Drahan 
Tzankov Bhrd. Worship 11 : 00 . James 
Dute, Pastor. Tel: 689 066 

FRANKFURT 

INTERNATIONAL CHRISTIAN FEL- 
LOWSHIP, Ev.-FraMrcMche Gemainde. 
Sodenerstr. 11-18, B31G0 Bad Hombutg. 
Sunday Worship, Nursery & SS: 
1120 A.M. MkUimak ministries. Pastor 
MJjwey. CaKFtec 0617302728. 
BETHEL I.B.C. Am Dachsberg 92 
(EngHh). Worship Sun. 1100 am and 
600 pm TeL 069548559. 

HOLLAND 

TRMTY INTERNATIONAL Invites you to 
a Christ cantered fellowship. Juiy-Aug. 
Service 930 am. BfoemcampteBn 54. 
Wassenaar 070-61 7-6024 misery piw. 


NICE -FRANCE 

I.B.C. 13 rue Vernier, English service. 
Sunday evening 1830, pasta Ftoy Mier - 
TeL: (04 93) 32 05 96. 

PRAGUE 

LB. FELLOWSHIP, Vtoohradska # 66 
Prague 6 Sua 1 im TeL (02) 31 1 7974. 

WATERLOO 

WATERLOO BAPTIST FELLOWSHIP 
Sun. 1SWX) at Swedish Church, across 
trom MacDonalds. TeL (02) 353 1585. 

ZURICH - SWITZERLAND 

I.B.C of ZGnch, G he (strasse 31, 8803 
Roach! Hum, Worship Services Sunday 
mornings 1030. TdL 1 -4810016 


assoc, of wn. 

CHURCHES 


AMERICAN CHURCH N BERLIN, COT. 
of Cby Alee A Potedamer Sir., Sl& 930 
am. Worship n am TeL: 0306132021. 

FRANKFURT 

TRINITY LUTHERAN CHURCH. 
Nbetungenalae 54, Sun. Worship 1 1 am. 
TeL 06885631066 or 512552. 

GENEVA 

EV. LUTHERAN CHURCH 20 rue 
Venfelne. Sunday worship 936 in German 
1 1SO In Ehgteh. Tet (022)3105089. 

JERUSALEM 

LUTHERAN CHURCH of tie Redeemer, 
9 amAI are welcame^L^^ffiBl-049. 


AMERICAN CHURCH IN PARIS. 
Worship 11:00 am. 65, Quel tfOraay, 
Parts 7. Bus 63 at door. Metro Aima- 
Maroeau or torafidas. 

ZURICH 

INTERNATIONAL PROTESTANT 
CHURCH English speaking, worship 
service. Sunday School & Nursery. 
Suidays 1130 am_Scharc»ngasso25. 
TeL (01)2625525. 




TO 




Saturday. fimigrfi clerics were expelled 

The Russian properties in the West 
Bank and in Easr Jerusalem, then under 
Jordanian role, remained under the exile 
church, which sold some of them. When 
Israel conquered those territories in 
1967, it retained the status quo. leaving 
two rival organizations in control of part 
of the Russian property. 

With the revival of the Orthodox 
Church in Russia since 1991, Russian 
pilgrims have come to Israel in huge 
numbers, and Patriarch Alexy has re- 
sumed efforts to reclaim properties that 
in his view have always belonged to the 
Russian Orthodox Church, whether con- 
trolled by Moscow or by tite 6migr6s. 


d VLviwv - I ■ ' 

: -• 


. i 


•gaa 






w-'paWSCf# { j 


DEVASTATION — Rescue workers sifting through the rubble of a six-story building that <^apsedln| 
Curaana, Venezuela, during an earthquake Wednesday that shook the northeast of the country. Al least 
67. people died and 469 were injured in the quake, which was the worst m Venezuela ut 30 years.^ 


Neanderthals: Off the Family Tree 




By Curt Suplee 

Wtnhin pon Post Service 

WASHINGTON — Neanderthals — 
the brawny enigmas who mysteriously 
. disappeared 30,000 years ago after co- 
existing with modem humans in Europe 
for tens of thousands of years — were 
not close relatives or even ancestral 
forms of existing people, a new study 
has found. 

Instead, DNA tests on a famous 
Neanderthal skeleton indicates that the 
creatures were almost certainly a sep- 
arate species that contributed little, and 
probably nothing, to the present human 
gene pool. 

The finding, by the veteran ancient 
DNA researcher Svante Paabo of Mu- 
nich and his colleagues, could help 
bring down the curtain on one of the 
longest-running and feud-prone dis- 
putes in anthropology: whether 

Neanderthals disappeared after nearly 
300,000 years because they gradually 
evolved into modem humans; or wheth- 
er they were abruptly superseded by an 
upstart evolutionary strain that left 
Africa only a few dozen millennia ago 
and from which all people now alive are 
descended. 

The report in Friday's issue of the 
journal Cell strongly supports the recent 
out-of-Africa position by showing that 


one sequence of Neanderthal DNA dif- 
fers drastically from the same stretch of 
modem human DNA — about half as 
much as today's humans differ from 
chimps. Disparities that large, the re- 
searchers couclude, suggest that 
Neanderthals diverged about 600,000 
years ago from the line that eventually 
would become today's Homo sapiens. 

“It’s a fantastic achievement," said 
Christopher Stringer of the Natural His- 
tory Museum in London, the leading 
proponent of the out-of- Africa theory. 
“In terms of our knowledge of human 
origins, it’s as big as the Mars land- 
ing." 

Even Milford Wolpoff of the Uni- 
versity of Michigan, the most forceful 
advocate of the rival, gradual-evolution- 
everywhere theory, called the results 
“exciting." 

“But if anybody could do this beyond 
criticism," Mr. Wolpoff said, “it's 
Svante Paabo and his laboratory" at the 
University of Munich. 

Mr. Paabo, along with colleagues at 
Pennsylvania State University and else- 
where. might easily have failed. DNA, 
the microscopic strand that carries an 
individual's genetic code in a sequence 
of chemical units, is a delicate molecule, 
easily destroyed by water and oxygen. 
As a' result, scientists generally have 
assumed that if a specimen is more than 


100,000 years old, its DNA is prbb^flywl 
degraded beyond hope of retrieval. ‘c 
The skeleton Mr. Paabo’s group used® 
is between' 30,000 and 100,000 yeaiskj£'. 
old. tit is, in fact, the classic specimen;^.: 
found in the Neander river valley 
Germany in 1856, and thus the prp=i.^- ; 
totype by which other candidates^ 
Neanderthal remains are judged.) .. : ■ 
The scientists were looking for ohly^-fe- 
one of the two types of DNA in humanr^ 
cells. One type exists in the nucleus and^^ 
contains the genetic blueprint trf eachpv 
individual. The other set of much short.: 
er DNA codes lies in each of the ceUolar^;^ 
subcomponents called mitochondria: .”: 

Mr. Paabo’s group was able to isolate/^ 
a 379-unit of mitochondrial DNA -se , - > ^.' 
quehce and to confirm indepeodentfy'/j^- 
that it had come from the Neandei^i4i|^ 
skeleton and not from subsequent’ codt^f- 
lamination. They then compared diatt^f 
sequence to the same region in modexh-^^ 
humans, as determined by samples re- 
taken from 2,000 people in Africa, Asia,i' >.v. 
Europe, Australia, Oceania and Nottii’-y^ 
America. ■ : 

Modem humans differ from eachttb? * 
er by an average of eight variations in; V’ 1 
that sequence. The Neanderthal sped-'- 
men had 27 differences from modem, ?■:' 
humans. By comparison, there are 55; id 
differences between contemporary:’ v.' 
people and chimpanzees. ' ‘ 


U.S. Reports HIV Case From Kissing 


By Lawrence K. Altman 

AVn York Tima Sen u c 

NEW YORK — A woman 
apparently acquired the AIDS 
virus from deep kisses with an 
infected man, according to 
federal health officials. They 
said the case was the first re- 
ported transmission of HTV. 
the virus that causes AIDS, 
through kissing. 

Both the man and the wom- 
an had gum disease, factors 
that apparently made easier 
the transmission of HIV. 
Transmission was most likely 
through the man’s blood, not 
saliva, the Centers for Dis- 
ease Control and Prevention 
in Atlanta said Thursday in its 


weekly report In emphasiz- 
ing the rarity of such trans- 
mission, the federal centers 
said the case was the only 
known one involving kissing 
among the 500,000 AIDS 
cases that have been reported 
to it since the epidemic was 
detected in 1981. 

The agency has long re- 
commended against deeply 
kissing an infected individual 
and said that individuals who 
did should be tested for HIV 
infection. 

Those who do not know the 
infection status of the people 
they have kissed deeply may 
want to get HTV tests, just as 
they would "for any number 
of better reasons, including 


unprotected sex with a mem- 
ber of a risk group,” said 
Scott Holmberg, an AIDS ex- 
pert at the agency. 

But Dr. Holmberg said that 
the centers had not issued a 
recommendation about deep 
kisses with a partner of un- 
known HTV status. 

He and other experts em- 
phasized that they considered 
the chances of such transmis- 
sion remote. 

The centers said there were 
several reasons exposure to 
saliva uncontaminated with 
blood rarely leads to trans- 
mission of HTV. These were 
among the reasons: 

• Substances in saliva tend 
to inhibit HTV. 


i-S. r'» 

• HIV is isolated frtrar v': 
saliva in Tow amounts, even fij/X.-, 
the presence of gura disease • • 

• No case of AIDS ^ 

to the centers has been 

uted to exposure to saliva. 

• Transmission of HTV ihriir 
association with kissing 

not been documented in smtP«£?I 
ies of nonsexual contacts of 
HIV-infected individuals, : . V; ^ 

Dr. Holmberg said the ppbr ;:f K 
lie-health message that cert- 1 ^; 
ters officials were noting tolf* 
convey was that even when;, ^* 
one sex partner was infected .^’ 
and the couples took recoin- t- 
mended precautions, the risk^-;’ 
of transmission through deeply 
kissing, although veiy smaltV^j 
was not zero. ... ; ' ' 


Europe 


Forecast for Sunday through Tuesday, as provided by AcaiWeather. Asia 



High ImW High LowW 

Clf Cff OF OF 

Mgoran 29101 itKIs »79 1&59s 

AmstercLvn 2S/T7 l&bl pc 121TS TS59 ( 

Ankara 28.82 T0/5O pc 29/Ba Wttc 

A** re. 32/B9 2 £T 1 pc JE<B9 22/71 1 

Sanatoria 24rtS 17*2 a 28/79 77*2 i 

Belqrada 2VT7 18*5 r 28/7* 13/56 pc 

Baton 23T3 IW5pe 2*75 7*57 pe 

Bmaacfe 2ST7 M/57 pc 24/75 15/Wc 

Burttpest 20/79 14/57 pc 2679 i*57pe 

Conmntuan 22/7 1 1*57 pc 22/71 12/53 c 

Com Dal Sol 28*2 1«»1 1 27<B0 IB/ 8 1 a 

IXfcUl 18/84 11/6Cr 16*1 W48 r 

Edntxv£i 19*8 14,57 i 19*8 1 0*0 ah 

H wa nca 2»82 16/51 pc 31/88 iT/BTpc 

Franfcfun 2i73 12*3 pc 23/73 73fi£c 

Sawn 26/79 I3r55pc 2 OT 2 14*7 pc 

Hotel tod 19/66 9.48 pc 20/88 8/48 pc 

Maifcto 28/&J IMe pc 28/84 17«7 pc 

Kiev 2071 12*3 c 21/70 12/53 ah 

LM Palmas 25/77 1 7/82 s 23/73 18*4 s 

Lisbon 2577 14*7 a 2071 13*5 pc 

London 24/75 18/61 pc 21/70 11152 sh 

Madrid 34/9J 15/59 s 3*93 1355 pc 

Uatnu 23/73 18*4 s 2*76 1H784 i 

Mian 2&B2 17*2 pc 31.88 18*4 pc 

Moscow 20*8 12*3 6 22/71 11/53 pc 

Hunch 23/73 12*3 pc 23/73 12*3 sh 

roes 28/79 18(64 s 27<B0 19*8 c 

Onto 25/77 14/57 pc 236* 13*6 c 

Parte 24/75 r*57pe 24/76 12*3 e 

Prague 2*75 12/53 pe 24/73 12*3 pc 

ftoyittv* 1*57 11/52 r 13/55 9M8 r 

Ftas 21/70 12/53 e 22/71 1155 c 

Rome 27/80 Mu 27J80 17*0* 

Si PaMraburp 20*8 12 /W pe 20*8 11/52 pc 

Slocfchotoi i&*« U* 3 m Z 0 S 8 12*3 pc 

arortwi 28/82 ’fr£1 pc WB2 1 W 81 pc 

Toftm iWH 70-30 pc JOVB ll'SCpc 

THtoi 26*2 17*2 pc 2607 17.62 r 

Venice 26 778 T?n£! pc 27/BO 18*4 pc 

Vienna 2679 14*5 pe 25/77 1*57 pc 

Warsaw 21/TO 1»S3 e 21/70 13*3 c 

Zwch 25/77 1*57 pc 26/78 1*57 c 

Middle East 

AbuDnat). 3*102 28/82 3 39/102 27/80 s 

BeeiM 27/80 2088 3 28/82 207tes 

Can 3*97 21/70 a 41/106 23/73 a 

Damascus 2*84 1*57 s 33/91 18/819 

Mruu*em 27/*> 1*57 m 2*84 1*81 i 

Lunr 40.104 nauj a 43-lW 2271 g 

Riyadh 42.107 22-71 i 42/107 23/73 s 


(vj-vj UmaosmatKY fXOq UnsMaontoNy RJ 

Jettonram £^3^ £ 

North America Europe 

Partly sunny and steamy m Cloudy and turning coaler 
me eastern third of the in London and Paris Sun- 
nailon Sunday and Mon- day through Tuesday wnh 
day. but thunderstorms are showers and periods a* 
likely in the Noriheast rain Strong thunder- 
Tuesday. Strong thunder- storms wuh heavy down- 
9 loons wis rumble trom the pours are likely over south- 
northern Rockies to the ern end eastern France 
northern Plains Nice in Die and the central Alps Mon- 
Nordiwest. hot end dry hi day end Tuesday. Cool in 
the Southwest Russia and Belarus 

despite some sunshine 


<36*:; 

a*}# 


Asia 

Soaking rams win comnue 
over eest-cenirai China 
naar Shanghai Sunday into 
Tuesday Heavy rains over 
southern Japan v/Jl worsen 
Hocdmg problems m the 
area Hurrsd in Tokyo with 
Ihe chance lor s hewers, 
while Seoul could have a 
thunderstorm or two. 
Sunny, hot and dry in Bai- 
ling 


North America 


Anchtooge 

Atlanta 

Boson 

Chicago 

Data* 

Crnnar 

OM 

htomtotu 

Houston 

Loo Angofe* 

Mtoni 


Today 

Htgh LowW 
OF C/F 
17/BC 13-Ur 
33/81 21/70 pc 
29/84 lives pc 
31/88 20/68 pc 
37788 2*75 a 
32/89 14/67 1 
31/88 IWMpc 
30/88 22/71 pc 
M 87 2373 pc 
29/84 17rtC a 
33*11 23/73 r 


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1844 10/50 ■ 
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37<98 23/73 pc 
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31/B8 2373 pe 
36«7 23-73 pc 
30/88 17/82 pc. 
32/89 2577 1 


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Uonlreal 
riL'AdU 
York 
Ortondo 
Phoeru 
Sen Fran 

Scottla 

Tcromo 

Vancouver 

Y/nhngtan 


Today 

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OF C/F 
3158 2170 1 
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32/89 24 75 pc 
31.88 20.88 s 
3391 22/71 I 
401C4 25.77 a 
2373 13 55 l 
2373 1355 pc 
29^4 15-59 pc 
2170 13/55 PC 
33*41 21/70 s 


Almaty 3S. ICC 18*4 a 
.Bat 28/82 22/71 PC 

Banahoh 31 B 8 2679 r 
39002 28 riG s 
Bomctoji 7384 28*77 I 

CidcjJttO 32189 2879 ch 
Chang Mat 31.88 24/751 
Colombo 30 «. 25/77 pc 
Hanoi 32/89 26/79 pc 

HoCtoUWi 37/38 25 / 77 r 
lung Kong 30/86 TUT! pc 
IsianuDad 43009 28/82 s 
Jteknna 3 I «8 23/73 s 
Karachi 3 *aa 27*0 a 
K LuniM 31 . ea 22/77 pc 
K IGnabslu TO.HB 21/70 pc 
Motel 31*88 2*75 r 
Ne-DHW 'Svn 28/79 PC 
MiwmPanh 2 »ea 2&7VI 
Ptne/a 31 , 88 28/79 I 

Rangoor, 3 tyW 2679 I 
Swto 26/79 21/70 r 

Shanghai 3 tvaB 22/71 pc 
Singapow 31 to 8 22/71 pc 
Tawi 32/89 27180 C 

Tokyo 27-80 26/77 £h 

VtenMTMi 38^9 26T3 pc 

Africa ~ . 

Aigers 2882 17/62 8 

Can Town. 20.68 9/48 s 

OasaWanca 2373 i«SB a 

HMW 8 2271 1 CVSO a 

Logos 28.82 23/73 e 

Na«bi 24/76 9 / 4 fl pc 

Tunis 29T84 is/se a 

Latin Amarica 

Bu«n<KAra 17 8 2 14/57 ah 
Caracas 3M6 24/75 r 
Lmw 23/71 17762 s 

Usoca C#y 26/ 79 12/53 pc 
Rto Maram 23/73 16/61 pc 
SarMpo Jl /52 307 */ 


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INTERNATIONAL HERALD TRIBUNE, S ATL’RDAY-S LH\ DAY, JULY 12-13. 1997 


PAGE 3 


, ‘Surreal’ Campaign Fund Hearings 


By Guy Guglioua 

n;?r. ir l‘.t}T Sri i :u- 


Bcnrwid Pan,- . ^ ' . -I 

Wmgthafcollap,;; 
>f the country i " 
enezuela 


yT 


ree 


; Washington — senior* inves- 

; tigatmg campaign finance abuse have 
. had plenty of theories to expound on and 

• even more questions. But at the end of 
their first week of hearings, they were 

■ still scrambling For answers and not find- 
; ing any. 

. Senator Richard Durbin. Democrat of 
; Illinois, told other senators of the Gov- 
. emmentai Affairs Comminee on Thurs- 
day that be found a "surreal quality to 
.‘the hearing." To Richard Sullivan." the 

• first witness, he said: “I find it hard to 
understand some of the questions that 

• ■ have been asked of you." 

; In fact, many of" the questions, like 

■ Nlr. Durbin's own. were not questions at 
\ all. They were speeches, opinions and 

interpretations offered by the senators 
a themselves. Some of these they tossed to 
! Mr. Sullivan for comment, and if he 

■ declined to have an opinion, they filled 
; in the blanks. 

• The Republicans had expected Mr. 

; Sullivan, the former finance director of 

the Democratic National Comminee. to 
; help them show that illegal foreign con- 
! tributions had been knowingly accepted 
or even solicited for President Bill Clin- 
ton's re-election campaign. 

Bur Mr. Sullivan cither could not or 
would not provide it. and by the end of 


w^ilsONAispR*^ 
ss-ODd hope of remit-,! 

non Mr. Paabo's ar. ihn ,. 
30,000 and 
nfact. the classic 
te Neander river v-Ju. „ 
n 1856 and ,hus aT" 
which other candiL 
1 remains are juda^j , 
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The other set cl much shon 
les lies in each of the cdlulai 
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of mitochondrial DN.A s f . 
1 to confirm independent 
come from the Neanderthal 
d not from subsequent con- 
They then compared that 
) the same region in modem 
s determined b> sample 
2.000 people in Africa. Ana 
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Kissing 

• HIV is isolated frwn 
aliva in low amounts, even id 
le presence oi gum disew 

• No case of A1 DS reported 
3 the centers has been attrib- 
ted to exposure to saliva. 

• Transmission of HIV u 
ssociation with kissing ii* _ 
or been documented in ^ 

;s of nonsexuai coniatis 
UV-inl'ecied individuals. 

Dr. Holmberg said theputv 
ic-health message that c* 

?re officials were 
onvev was that even ww 
ine sex partner inwfl 
nd the couples took reo 
Tended precautions. I 
if transmission through ' 
issing. although '«ys 
.•as nor zero. 


♦" * 


the day Thursday frustrated Republicans 
on the committee were trying to make 
their case with little or no help from the 
opening witness. 

For long periods, Mr. Sullivan was a 
spectator at his own hearing, while sen- 
ators told him about allegations he 
would not substantiate: that the While 
House indecorously pushed the Demo- 
cratic National Committee to hire John 
Huang as a fund-raiser: that the com- 
minee suspected Mr. Huang of soliciting 
illegal foreign contributions; that the 
White House' either looked the other way 
or was complicilou.s when illegal con- 
tributions began to roll in. 

"Let me take you through this and see 
what \ou think," Senator Susan Collins. 
Republican of Maine, said, as she dis- 
cussed the 16 times Clinton adminis- 
tration officials tried to interest (he 
Democratic National Comminee in hir- 
ing Mr. Huang. 

She showed dated slides documenting 
the contacts: "I understand that you 
aren't involved in all these contacts." 
Ms. Collins said, asking Mr. Sullivan if 
now that he had seen the evidence, did he 
think the White House had overstepped 
its bounds? 

Mr. Sullivan hemmed and hawed and 
finally said, "I can't answer your ques- 
tion." .As the day wore on. he began 
prefacing his answers with phrases such 
as . "As 1 have said 15 times before..." 


POLITICAL NOTES 


First to lean on Mr. Sullivan was the 
comminee chairman. Fred Thompson, 
Republican of Tennessee, who tried for 
30 minutes to get him to say that he had 
misgivings about Mr. Huang and feared 
that Mr. Huang "might in the future 
sometime raise foreign money, or 
money that would not be under die 
rules." 

For this reason, Mr. Thompson sug- 
gested. Mr. Sullivan had ordered special 
training for Mr. Huang in the ethics of 
campaign finance. "Is that not true’” 
Mr. Thompson asked. 

“Thar's not correct ." Mr. Sullivan 
replied, saying that Mr. Huang, unlike 
other lund'-ruisers. was inexperienced, 
and needed instruction. 

Mr. Thompson continued. He said 
Mr. Sullivan was bothered about Nlr. 
Huang's desire to help get foreign na- 
tionals into While House coffees. Yes. 
Mr. Sullivan replied, but only because 
foreigners cannot contribute money. 

Mr. Thompson said ihe Democratic 
National Comminee eventually decided 
noi io let Mr. Huang organize any more 
functions involving Mr. Clinton. Mr. 
Sullivan said that was because he had 
been raising loo much unregulated "soft 
money." and “not the hard federal dol- 
lars we desperately needed." By the 
afternoon, some senators on both sides 
were all bin ignoring Mr. Sullivan. 

The hearings resume Tuesday. 


.j 


House fates to Shut Arts Agency 

WASHINGTON — By a one-vote margin, the House of 
Representatives has voted to dismantle the National En- 
dowment for the Arts, a perennial target of conservatives, 
after the House speaker. Newt Gingrich, proposed re- 
placing the agency's nearly $1 00 million annual budget 
with block grants to the states. 

The vote, although politically significant, is unlikely to 
represent the 33-year-old arts agency’s last gasp'. There is 
significant support for the agency in the Senate, and Pres- 
ident Bill Clinton has vowed to veto the Interior De- 
partment's appropriations bill if the legislation authorizes 
shutting it down. 

The House decision came Thursday in a 2l7-to-216 
procedural vote. Mr. Gingrich won over some Republican 
supporters of the agency by offering to replace it with $80 
million in block grants, of which nearly $30 million would 
go to state art commissions and $48 million to local school 
boards. The rest would be for administrative costs. (NYTI 

Medicare at Age 65 Is Retained 

WASHINGTON — Congressional negotiators have ruled 
out a Senate plan to raise the eligibility age for Medicare 
recipients to 67 from 65 as they met to meld House and 
Senate bills imo a final balanced-budget and tax package. 

Critics, including the White House and seniors' groups, 
charged dial the planned change, to be phased in over 
decades, eventually would leave many retired people with- 
out health-care coverage for as long as two years. ( IVP) 

Reno Blocks Ouster of Refugees 

WASHINGTON — Attorney General Janet Reno has 
intervened to prevent the possible deportation of tens of 
thousands of refugees from civil wars in Central America 
whose status was changed by a provision of the im- 
migration law enacted last year. 


Ms. Reno said she would suspend a February ruling by 
the Board of Immigration Apneaithat held that the provision 
should be applied retroactively. She said (hat because of the 
ruling, nearly 300.000 people who had qualified to apply to 
remain in the United States could no longer do so. 

At issue are people who entered the United States under 
special programs for refugees from wars in El Salvador. 
Guatemala and Nicaragua. The new law makes it much 
more difficult harder to gcr permanent residency and avoid 
deportation, and the ruling in February applied the law to 
immigrants who were in the process of attaining legal status 
under the old law. f/VVT) 


Quote/ Unquote 


Richard Armey, the House majority leader, as the cham- 
ber debated a bill to abolish federal subsidies for the arts: 
"The National Endowment for die Arts has been the single 
most visible and deplorable black mark on the arts in 
America that I have seen in my lifetime." (NYT) 


Away From 
Politics 

• Malcolm Sbabazz. 1 2. 
the grandson of the slain 
black leader Malcolm X. 
pleaded guilty in New York 
to setting the fire last month 
that killed his grandmother. 
Betty Shabazz. (WPi 

• Severe turbulence threw 
an American Airlines • 
flight into a terrifying drop 
that slammed passengers in- 
to the ceiling. At least 22 


people were hurt and the 
plane was forced to make an 
emergency landing. The 
plane was Flight 242. from 
Seattle co New York. ( AP) 

• An American Airlines 
flight made an unscheduled 
stop in Detroit after a pas- 
senger said she needed an 
aspirin so badly she could 
kill someone. After the 
plane landed, the police 
took the passenger into cus- 
tody for questioning by the 
FBI. The woman's identity 
was not released. (Reuters) 




New Doubts on James Earl Ray’s Rifle 


The Assoc it/ml Press 

MEMPHIS, Tennessee — Most' of 
the test bullets fired from a rifle be- 
longing to James Earl Ray had marks 
different from the slug that killed Martin 
. Luther King Jr., a judge said Friday. 

"This comparison revealed Char the 
. gross and unique characteristic signa- 
ture left on the 12 test bullets by the 
. James Earl Ray rifle was not present on 
■ the death bullet," the Criminal Court 
.judge Joe Brown said. 



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Mars Scientists 
Lose a Day 
To an Error 


The Associated Press 

PASADENA, California — Scient- 
ists failed to pull the Mars rover off a 
rock where it has been stuck because a 
miscalculation kept the mother ship 
from getting its daily radio instructions, 
NASA said Friday. 

The miscue left the Sojourner rover 
propped against a fat-bottomed rock for 
a second day and deprived scientists of a 
full day’s worth of data from' the rover 
and the Pathfinder lander ship. 

"One miscalculation cost us the 
whole evening," said Brian Muirhead, 
deputy project manager. 

The Sojourner rover- was designed to 
operate for a minimum of seven days 
and the Pathfinder for 30 days, bur mis- 
sion controllers expect each to run for 
far longer. -So die day of missed data was 
expected to be a serious loss. 

is the kind of error that you 
' worry about a lot,” Mr. Muirhead said. 
“It’s unfortunate. XtVnpt dangerous. 
You’ve got to be a little more care- 
ful," • 

■ The communications problem actu- 
. ally began Wednesday with fault in an 
instruction that was supposed to have 
had the Pathfinder turn on its radio 
receiver to get instructions, Mr. Muir- 
head said. So it pever got the instruc- 
tions sent late Thursday. 

Without those orders, neither the 
rover nor die sophisticated camera on 
the Pathfinder could cany out their 
day>work. 

Without the ■ instructions, . the 
Pathfinder did not send down a day's 
worth of dam and pictures from the red 
planet, Mr. Muirhead said’ All scientists 
got was "health data" that show how 
Pathfinder is operating. ' 

Scientists planned to resend die sig- 
nal Friday, and both the rover and the 
camera on the Pathfinder mother ship 
were expected to continue their work 
~ without other ill effects, he said. 


Mr. Ray’s lawyers asked at the hear- 
ing for additional tesrs on the rifle to try 
to bolster findings from recent test Fir- 
ings at the University of Rhode Island 

Mr. Ray .bought the hunting rifle in 
Alabama and brought it to Memphis. It 
was found near the murder scene with 
his fingerprints on it. He contends it was 
dropped there to frame him. 

The rifle and death bullet were tested 
by the FBI and a House comminee in the 
1960s and 1970s, but those tests could 
not prove beyond a scientific doubt that 
it was the murder weapon. 

The committee concluded in 1978 
that Mr. Ray killed Mr. King but may 
have been helped by others before or 
after the shooting. 

Mr. Ray’s lawyers hope the tests will 
pave the way for a trial for Mr. Ray, who 
is serving a 99-year sentence in a 
Nashville prison for the 1968 assas- 
sination of Mr. King. Mr. Ray con- 
fessed, thereby avoiding the death pen- 
alty, but recanted days later. 

His guilty plea has been upheld eight 
times by state and federal courts. 

William Pepper, one of Mr. Ray’s 
lawyers, told Mr. Brown that the FBI 
test-fired bullets from Mr. Ray’s, gun 
shortly after the killing, but never 


Fire at a Thai Resort Kills 78; 
Locked Exits Trapped Many 


A 


CiMpdrlbvOirSufFnwbuiwIiei 

BANGKOK — Fire swept through a 
hotel in die Thai beach resort of Pattaya 
on Friday, killing at least 78 people, 
manv of whom were trapped behind 
locked emergency exits, officials said. 

Thirteen foreigners died in the in- 
ferno at the Royal Jomtien Resort, in- 
cluding two Belgians, one Hungarian, 
three Koreans and a U.S. national, the 
police said. Two children also died. 

The blaze, which started about 10:20 
A.M, on the ground floor of the 16- 
story, 400-room hotel, took 10 hours to 
extinguish after rapidly sweeping up the 
stairwells to the top of ihe building, the 
police said. 

Hotel workers told firemen a gas can- 
ister exploded in one of the hotel’s kit- 
chens,, setting off the conflagration. 

Pattaya, 150 kilometers (85 miles) 
south of Bangkok, is apopular weekend 
destination for capital residents and for- 
eign tourists. It is also a well-known 
destination for foreign travelers on re- 
latively inexpensive tours looking for 
lively nightlife. 

Television showed rescuers on the 
roof pulling a child, clinging to arope. ro 
safety through black smoke. Many oth- 


ers were not so lucky. Television broad- 
cast images of rows of charred bodies 
being wrapped in plastic sheets and 
taken away. - 

Most of the victims were Thai. An 
additional 65 people were injured in the 
fire. At least one man jumped to his death 
from the 1 1th floor, the police said. 

Interior Minister Sanoh Thien thong 
said that die hotel bad locked all fire exit 
doors and that this had partly accounted 
for the high death roll. “One of the sad 
things for this hotel is that they locked 
their doors,” he said. "I learned from 
the hotel owner that they locked them to 
prevent guests from running off without 
paying meir bills." 

Press reports said the hotel’s sprinkler 
system was inadequate. In some areas 
there were no alarms. Alarms that had 
been installed in various parts of the hotel 
were reportedly found to be defective 

The disaster was the worst in a Thai 
hotel since Aug. 13, 1993, when the 
Royal Plaza in the northeast town of 
Naichon Rarchasima collapsed, killing 
137 people. The architect in charge of 
construction was sentenced last month 
to 20 years in prison for violating con- 
struction regulations. (AFP, Reuters i 


A Looted Painting Goes Home 

Paris Museum Releases a Gleizes Work Seized by the Nazis 


By Barry James 

liih-rn,ni.’iiul IfrraU Tribune 

PARIS — A valuable cu- 
bist painting has at last gone 
back to the French family 
from which it was looted by 
the Nazis 57 years ago. 

Since the end of World 
War ff, when the painting 
was recovered, the 146-cen- 
timeter-by- 1 15-ceniimeter 
t57-inch-’by-45-inch) ab- 
stract landscape by .Albert 
Gleizes has been in the pos- 
session of the French gov- 
ernment. 

It formed part of the col- 
lection at the National Mu- 
seum ot' Modem An at the 
Pompidou Center in Paris, 
w’hich lent it over the years 
to international exhibitions. 

The painting, done in 
1911 by Albert Gleizes, a 
French artist who died in 
1953, once hune in the 
home of Alphonse Kann. at 
St. Germain-en-Laye. west 
of Paris. 

Mr. Kann was a key fig- 
ure in prewar art collect- 
ing. 

Believed to have been a 
model for Proust's charac- 
ter Charles Swann. Mr. 
Kann amassed more than 
IJ00 old masters, 19th- 
century and also modem 
paintings as well as other an 
objects. 

When Germany invaded 
France in 1940, specialist 
units with detailed art lists 
followed the troops, seizing 
an collections ana carefully 
cataloging them before 
shipping selected works to 
Germany — many destined 
personally for Hitler and 
Goering. * 

The Nazis used a network 
of shady dealers in the thriv- 
ing wartime an market in 
Paris to barter or sell "de- 
generate" modem works. 


thereby scattering some col- 
lections around the world. 

Mr. Kann. who was in 
England when the Germans 
overran France, died after 
the war before recovering 
all his an. 

His heir. Francis Wavrin, 
a great nephew, had no idea 
that the Gleizes and other 
Kann family works, includ- 
ing a Picasso in the museum 
at Rennes, were in French 
hands. The information in 
archives, was not made pub- 
lic. 

France has more than 
2.000 unclaimed, high- 
quality works of an in die 
MNR. or National Museum 
of Recuperation. Most of 
these are on permanent loan 
to museums, where ro all 
intents and purposes they 
form part of the permanent 
collections — as did the 
Gleizes painting. 

It was the first time that a 
museum had returned an ob- 
ject from its MNR collec- 
tion. 

The museums* official 
position has always been 
that they did their best to 
find the owners, of un- 
claimed an. 

A writer. Hector Feli- 
ciano. established the con- 
nection between the Gleizes 
painting and the Kann heirs 
while researching his book, 
"The Lost Museum.” 

He said the Pompidou 
Center could have easily 
done what he did: check the 
German catalog mark on the 
back of the painting that 
identified it as coming from 
the Kann collection; check 
the Foreign Ministry list of 
paintings recovered by the 
Allies and returned to 
France, and consult with an 
an historian to confirm that 
the date and dimensions of 
the painting conformed 



Must \ju-ml d'AK VltaknK 

"Landscape of Meudon," painted by Albert 
Gleizes in 1911. was returned to owner's family. 


with the inventory of the 
anists work. 

Funhermore, he added, 
there was never any secret 
That several heirs of the 
Kann family were still in 
Paris. 

"The museum had 
every’ thing it needed to 
solve this riddle," he said. 
"The key question is. How 
hard did it try?" 

Mr. Wavrin said the 
painting was handed back 
without ceremony a few 
days ago. The museum has 
yet to announce the return 
but a spokesman confirmed 
it. Mr. Wavrin said he 


thought the museum was 
“embarrassed." 

He said that if the French 
government had made pub- 
lic the information it had 
about the looted works as 
far back as 1953. he would 
have been able to find out 
about, and prevent, several 
sales of works that had be- 
longed to his great-uncle. 

Last year, the Cour des 
Compres, the French gov- 
ernment accounting office, 
strongly criticized the ad- 
ministrations of French mu- 
seums for not making 
enough effort to return 
works to owners. 


Uneasy Choice for Cambodia Aid Donors 


provided them to Mr. Ray’s legal team. 
He said they could be key to deter- 
mining whether Mr. Ray ’s gun fired the 
fatal bullet. 

"Those test-fired bullets are closest 
to the point in time and they would be 
the most accurate and visible signs of 
physical evidence that we could have in 
this case," Mr. Pepper said. “That ev- 
idence and those results should be in the 
custody of the courts." 

In Rhode Island, rifle specialists fired 
Mr. Ray’s gun into a tank of water, then 
had them analyzed under a microscope 
to compare markings on them to the 
bullet removed from Mr. King. 

Robert Hathaway oversaw the rests 
and is due io testify at the hearing. 

Before he took the stand, Mr. Brown 
shared some of the preliminary find- 
ings. He said that analysis of 12 test 
bullets “revealed that there was a 
unique and gross characteristic that was 
common to each of these test bullets." 

"This characteristic appears to be the 
signature of a rare defect in the bore of 
the James Earl Ray rifle," he said. 

Prosecutors said they had not been 
provided with a written account of the 
tests. Mr. Pepper said one had not been 
made yet. 


By Seth Mydans 

Nev York Times Sen ice 

PHNOM PENH — .As for- 
eign governments began to cut 
their aid programs as punish- 
ment for the coup last week- 
end, embassies here received 
an unexpected Ieoer Friday 
from the National Assembly. 

"We appeal to you to give 
us humanitarian assistance, 
either financial or material." 
the letter reads, "so that we 
can join the Royal Govern- 
ment in bringing financial 
help to the victims.” 

It was an astonishing plea, 
coming just days after a vi- 
olent assault that seemed to 
put an end to the democratic 
government and liberal soci- 
ety these same countries had 
joined to foster here four years 
ago at the cost of S2 billion. 

• "This is insulting now,” a 

European diplomat said. 
“They’ve destroyed 

eveiything and now they are 
asking us. 'Can you pay for 
it?’ I wonder if any embassy 
will be crazy enough to send 

any thin g." 

That choice may be an easy 
one to make. Much more dif- 
ficult is the decision that now 
faces the international com- 
munity over how to respond 
in the longer term to the 
ouster by one of the coonrry ’s 
co-prime minis ters, Hun Sen, 
of his rival. Prince Norodom 
Ranariddh. 

In two days of heavy fight- 
ing, Mr. Hun Sen’s troops de- 
feated soldiers loyal to Prince 
Ranariddh, who was abroad 
at the time. Mr. Hun Sen says 
Prince Ranariddh will be ar- 
rested if he returns home, and 
the prince is appealing to for- 
eign governments to support 
his right to his elected omce. 

* ‘It’s a real quandary how to 
play this," another diplomat 
said. The coup is a fait ac- 
compli, he said, and there is 
virtually no realistic possibil- 
ity of the prince’s resuming his 
political role in Cambodia. 

"It’s very difficult to see a 
satisfactory, principled solu- 
tion that is also beneficial to 
tiie people of Cambodia," the 
diplomat said. 

The problem, he said, is 
how to avoid endorsing the 
coup while finding a way to 
foster the most democratic 



OufV- IHunfjbTlir A •—•iji'il ft**' 

An Australian airman directing evacuees onto a plane Friday in Phnom Penh. 


and least repressive future for 
the country. 

A consensus has already 
emerged that the first step is 
to condemn and to punish, to 
underscore the world’s refus- 
al to accept the overthrow of a 
leader chosen in 1993 by an 
election arranged and paid for 
by the United Nations. 

Already, the United States. 
Japan and Germany have an- 
nounced the suspension of aid 
programs and Australia is 
considering a similar move. 
The United Nations and the 
United States and other coun- 
tries have made strong state- 
ments of concern. 

In a gesture of no-confi- 
dence, the United States, 
Australia and several Asian 
and European nations are 
evacuating many of their cit- 
izens. Washington is redu- 
cing the staff of its embassy to 
20 people from 61. 

And in a painful rebuke 
from Mr. Hun Sen’s peers, the 
Association of South East 
Asian Nations decided Thurs- 
day to defer the planned in- 
duction this month of Cam- 
bodia as a member. 

But if Cambodia is to be 
helped from sliding into civil 
war or coming under the grip 
of a repressive dictatorship, 
the next steps are more del- 
icate. 

How is the world, which 
has made such an investment 
in Cambodian democracy, to 
continue to uphold its ideals 


without pushing Mr. Hun Sen 
into a corner by treating him 
as a pariah? 

One diplomat responded 
with a senes of questions of 
his own. 

.“How long can the inter- 
national community continue 
to support Ranariddh^ ’s right to 
his elected position?’ ’ he said. 
“If we continue to support 
Ranariddh, how will that ben- 
efit Cambodia? But if we do 
not support him. it seems an 
explicit acknowledgment of 
the failure of the international 
intervention in Cambodia." 

‘ ‘We are in a bit of a pickle 
at the moment," he added. 

Several diplomats made 
the point that the heroes and 
villains here are far from 
clear-cut. The coup was the 
culmination of months of in- 
fighting and military buildup 
on both sides during which 
scant attention was paid to the 
business of government. 

Most of the country's 
budget — nearly half of which 
comes from . international 
donations — was drained 
away by corruption and the 


creation of personal armies.- 

“Both prime ministers 
must take responsibility for 
foiling the nation," a diplo- 
mat said. 4 'One has to ask the 
question: Did either of them 
really care about the people as 
they proceeded with their 
grandstanding and sniping at 
each other and jostling for po- 
sition?" 

There seemed little enthu- 
siasm among diplomats here 
for the economic sanctions 
that have been proposed by 
some politicians abroad. 

Already the economy is be- 
ginning to suffer from the ab- 
rupt halt in tourism and the 
closure — whether temporary 
or long-term — of the Foreign 
enterprises that had begun to 
bring employment to a nation 
made up largely of subsist- 
ence farmers. 

The shutdown of several 
garment factories on the 
western outskirts of Phnom 
Penh has already cost the jobs 
of some 6,000 people, mostly 
young women who had be- 
come the economic support 
of their families. 


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Romania Looks Beyond the Rebuff 


Rather Than Sulk on NATO , It Prepares for the Next Time 


By Jane Perlez 

New York Times Sen-ice 


BUCHAREST — Constantin Iones- 


cu. Romania’s deputy secretary of de- 
bbine for 


fense, was grabbing for every piece of 
information. He fiddled with the knobs 
on tbe radio. He played with the tele- 
vision remote control. He watched as fax 
pages with the latest news-agency re- 
ports from Madrid tumbled to the floor. 

Realistically, he knew that his country 
would not be part of the first group 
invited to join NATO at the alliance's 
summit meeting in Madrid. 

But the precise wording of the final 


communique was all important 
When an aide rushed in witf 


with the of- 
ficial text Mr. Ionescu marked the crit- 
ical paragraph with his fountain pen. 

"Not very good, not very bad,” he 
concluded. 

After special pleading by France, Ro- 
mania was singled out in the commu- 
nique, along with Slovenia, as aspiring 
members that have made progress in 
reforms. The document also said ex- 
pansion would be reviewed in 1999. 

But the specific pledge Mr. Ionescu 
bad hoped for — that Romania would be 
a prime NATO candidate two years from 
now — was not there. 

Since the new Romanian government 
— tbe first since the revolution that 
overthrew NicolaeCeausescu in 1989 to 
be led by politicians with no ties to the 
former Communists — took power sev- 
en months ago, its leaders nave cam- 
paigned aggressively for inclusion in the 
North Atlantic Treaty Organization. 


The new Romanian president, Emil 
Constantinescu, courted Europe. 

King Michael was enlisted to press 
Romania's case. The youthful prime 
minister, Victor Ciorbea, went to Wash- 
ington, where he impressed officials as a 
breath of. fresh air after years of stodgy 
former Communists in power in 
Bucharest. 

But Romania fell short because the 
White House believed a limited list of 
three new countries had a better chance 
of g ainin g approval in the Senate and 
because the efforts at reform here were 
seven months deep and not seven years 
deep like the changes in die Czech Re- 
public, Hungary and Poland 

But rather than sulk, Romanians, from 
government officials to people in die 
street, were putting the best face on their 

disappointment. 

‘ * Romania is a winner here,” said Mr. 
Ionescu, after he had adjusted to the 
news from Madrid. “We’ve been rec- 
ognized as a player — not an important 
one — but as a country that is to be taken 
account of.” 

The rejection of Romania could have 
a galvanizing effect on reforms already 
in motion here, said Vladimir Tis- 
maneanu, professor of politics at tbe 
University of Maryland and a frequent 
visitor here. 

"It’s a kind of cold shower, a reality 
check,” he said "It will make them do 
the structural reforms they need.” 

Already, the government has imposed 
an austerity package that won the back- 
ing of the International Monetary Fund, 
which had severed relations with the 


previous Romanian government The 
top echelons of the military were swept 
aside by Mr. Constantinescu, and Gen- 


eral Constantin Degeratu was appointed 
chief of staff. The hr 


lead of the domestic 
intelligence service for die last seven 
years, Virgil Magureanu, who was pan 
of the Communist-era intelligence ser- 
vice, was also dismissed 

But there is still much to do to catch up 
to the gains made by the Czech Re- 
public, Hungary and Poland Mr. Tis- 
maneanu said 

Because the governing coalition in 
Parliament is in such disarray, for ex- 
ample, little legislation lias been passed 
in the last seven months. 

Thus, Mr. Constantinescu, like his 
predecessor. President Ion Hiescu, must 
govern by decree. The foreign intel- 
ligence service, a spy operation notori- 
ous for its hardball tactics, is still run by 
agents who had positions in the Ceau- 
sescu dictatorship. 

Mr. Ionescu acknowledged that for 
Romania to be acceptable to NATO, the 
foreign intelligence service needed to be 
cleaned oul 

Mr. Ionescu said he would be looking 



* 


for a pledge of an enhanced relationship 
between Re 


Lomania and the United States 
when President Bill Clinton visited here 
to deliver reassurances to the Romanians 
that they were headed in the right di- 
rection. 

He described the visit as a good 
omen. 

“At least, NATO enlargement gave 
us a chance to introduce ourselves,” he 
said. “We will keep on fighting.” 


Vidor Cndxvttseacc ftaneoJ’Mie 

EXHUMING THE PAST — Belarussian soldiers digging up the remains of German soldiers killed during I 
World War H in the Stanevo Forest outside Minsk, in preparation for an official reburial. The Germans ■ 
were taken prisoner by Russian forces in 1944. After the commander of the Russian unit was killed by a 
German sniper, all the prisoners were executed in reprisal. A local peasant helped uncover the mass grave. 


New Era in Mexico, 



ROMANIA: Staying Course Will Open Door 9 to NATO, Clinton Says 


Continued from Page 1 


and Romania will cross that milestone.' * 

Tbe president described Romania as 
one of the “strongest candidates” for die 
second wave of expansion, which is to be 
decided upon at the next NATO summit 
meeting in 1999. Earlier, he told President 
Emil Constantinescu of Romania that be 
had been “impressed" by the country's 
strides toward free-maricet democracy, 
particularly since die election of a new 
rightist government in November 1996. 
He said the country's progress in the pasr 
seven months had been "'phenomenal.'' 

Despite Mr. Clinton's decision to veto 
Romania's desire to join NATO in the 
first wave of expansion, enthusiasm for 
America remains high in this Balkan 
nation of 23 million people. Polls show 
that an overwhelming majority of Ro- 
manians view a military alliance with the 
United States as the ultimate rejection of 
their Communist past and forcible in- 
corporation into the Soviet bloc after 
World War H 

The Romanian prime minister, Victor 
Ciorbea, said in an interview that his 
government was folly aware that NATO 
membership would be linked to its con- 
tinued pursuit of radical economic re- 
forms. 

“Historically and culturally, we be- 
lieve we belong in the West," Mr. Cior- 
bea said, referring to Romania's Latin 


heritage, which contrasts with that of 
neighboring Slavic countries. “Our 
wish to. become a member of NATO is 
not a temporary policy designed to fool 
the people into forgetting the hardships 
of economic reform bat is a definitive, 
irrevocable option for us.” 

Romanians have traditionally turned 
out in force to greet American presidents. 
Richard Nixon received an ecstatic wel- 
come on the streets of Bucharest in Au- 
gust 1969, when he became the first U.S. 
president to visit Romania, as did Gerald 
Ford in August 1975. 

As in Communist times, Bucharest 
authorities engaged in furious prepa- 
rations for Mr. Clinton's visit, mobil- 
izing thousands of workers to beautify 
the road from the airport and festooning 
the streets with American flags. The 
government’s aim appeared to be to con- 
vince Mr. Clinton that Romania was a 
worthy potential U.S. ally and that there 
were no hard feelings about its failure to 
get into NATO in the first round of 
expansion. 

Mr. Clinton’s administration opposed 
Romania's early entry into the alliance 
partly out of cost considerations and 
partly because it felt that the country still 
had some way to go in consolidating its 
democracy and economic reforms. After 
the revolution of 1989, the country was 
ruled by former Communists who were 
reluctant to introduce the kind of eco- 


nomic shock therapy applied in coun- 
Poland and the 


the Czech Re- 


tries such as Poland 
public. 

Mr. Ciorbea ’s rightist government has 
introduced a series of radical economic 
reforms aimed at privatizing state-run 
industry and reducing a gaping bole in 
the budget. Inflation has been brought 
down to aboui 2 percent a month from 30 
percent a month under a stabilization 
agreement with the International Mon- 
etary Fund. 

But despite the economic progress, 
U.S. officials remain concerned by the 
lingering influence of Communists in 
the security service, which fired on dem- 
onstrators in December 1989 as part of a 
last-ditch attempt by Mr. Ceausescu to 
retain power. Speaking to reporters on 
the Air Force One flight that rook Mr. 
Clinton from Warsaw to Bucharest, the' 
deputy national security adviser, Jim 
Steinberg, said that reforming the se- 
curity apparatus was something the new 
government "needed to focus on." 

Mr. Ciorbea said several projects were 
being considered to mot out former 


Reuters 

MEXICO CITY — Mexico’s ruling 
Institutional Revolutionary Party lost its 
majority in the governing lower house of 
Congress in midterm elections, final of- 
ficial results have confirmed. 

The party fell short of the minim um of 
167 of 300 directly elected seats it 
needed to clinch a majority, the results 
showed. With returns from of the 300 
races counted, the party had won 159, 
compared with 69 for the leftist Party of 
the Democratic Revolution and 65 for 
the conservative National Action Party. 

An additional 200 seats in the 500- 
member body are to be allotted pro- 
portionally according to each party’s 
share of the overall vote, but the Federal 
Electoral Institute offered no official 


data on each party's share thus far. 

Under Mexico’s complex electoral 
system, the governing party needed at 
least 1 67 of the directly elected seats and 
42.2 percent of the overall vote to win 
amajority. Results of a preliminary count 
by tbe electoral institute made public 


Monday showed the party winning about : 
39 percent of the vote with nearly 90 - 
permit of the returns counted The ballot 
marked a historic change in the power 
balance by giving the opposition its first 
serious voice in government in -seven . 
decades, analysts said. 


Tests Show Body Is Drug Chiefs 


Wiishinfirun Post Service 

MEXICO CITY — DNA tests con- 
firm that a corpse seized last week by 
law-enforcement authorities is that of 
Amado Carrillo Fuentes, once Mexico's 
most powerful drug lord, the Mexican 
attorney general's office, has an- 
nounced. 


Test results were released Thursday . 
after five days of speculation about the 
body, which U.S. officials identified 1 
Saturday as that of Mr. Carrillo, 4U chief ; 
of the Juarez drug cartel, .who became 
one of the world's paramocint dnigtraf- , 
fickers after establishing links between « 
Mexican and Colombian organizations. ’ 


PESO: Manila Floats Currency , Worrying Southeast Asian Markets 


Continued from Page 1 


March, when the financial 
crisis in Thailand began to 
spill over into other pans of 
Southeast Asia. 

"Most countries in the re- 
gion are in an economic 
downswing,” said Paul 


criticized Manila’s move, the 
International Monetary Fund 
praised die exchange-rate 
flexibility. Analysts said die 
decision was another shift in 
Southeast Asia from the long- 
standing policy of maintain- 
ing a close link between local 
currencies and the dollar. 

"Holding a currency 
.against the U.S. dollar for 


Alapat, financial economist 
in die Hong Kong office, of. 
secret-police informers from governments Lehman Brothers. "Some, .substantial periods can have 
service, but he said priority; would bef like. Thailand 'and the Phil~. negative implications for oth- 
jven to eliminating collaborators with ippines, can’t afford to keep 

interest rates high if they want 
to get growth going again." 

The dollar rose Friday to a 


giv 

the old Soviet secret service, the KGB 
“If we want to integrate our army 
with NATO," he said, “we must make 
sure that the secrets of our alliance are 
not given to other people.” 


ULSTER: The Orangemen Take a Step Back From the Brink 


Continued from Page 1 


The statement added: “Let us get 
back to when we lived together as a 
mixed community, respecting each oth- 
ers’ traditions and culture, and tolerating 
their expression and existence.” 

Such sentiments were a world away 
from the raw divisiveness of last Sunday 
on Portadown's Garvaghy Road, south- 
west of Belfast, when 1 .000 Orangemen 
marched through the town’s main Cath- 
olic section. 

The march provoked three nights of 
Catholic rioting across Northern Ireland 
that left more than 100 wounded and £12 
million (Si 9 million) In damage. 


As recently as Wednesday, senior Or- 
angemen were insisting that Catholics 
were wrong to consider their marches 
offensive and that protests were orches- 


trated by IRA supporters. 
The Ora 


range Order, founded in 1795, 
was a dominant influence in the creation 
of Northern Ireland as a Protestant-ma- 
joriiy state in 1920. 

To Catholics, it is synonymous with 
anti-Catholicism. 

Each July, the Orange Order stages 
more than 2,000 parades to mark the 
anniversary of the 1690 victory of the 
Protestant king, William of Orange, over 
the dethroned Roman Catholic monarch, 
James n. (AP Reuters) 



record 30.03 baht from 29.00 
baht the day before and to 
2.5050 ringgit from 2.4900 
ringgit 

“After the Philippines de- 
cided to let the currency de- 
preciate, everybody was just 
crying to buy dollars against 
all the Asian currencies." a 
trader at a U.S. bank in Singa- 
pore told Reuters. 

While some bankers who 
face foreign-exchange losses 


er investments, whether in 
real estate or equities," said 
Warwick Negus, head of the 
asset-management division 
of Goldman, Sachs & Co. in 
Singapore. 

“When you let market 
forces determine the value of 
die currency, it leaves other 
parts of the economy in better 
shape.” 

But Philippine companies, 
which have as much as $5 
billion in foreign-currency 
loans outstanding, will have 
to find more pesos to pay off 
those debts. 


The Philippines also runs 
the risk of higher inflation, 
because imported goods will 
cost more in pesos. 

News that Manila had al- 
lowed the peso to find its own 
level prompted Indonesia to 
widen to 12 percent from 8 
percent the amount by which 
it allows die rupiah to fluc- 
tuate against the dollar. 

The,,, new intervention 
range calls for the dollar to 
fluctuate .between 2,374 rupi- 
ah and 2,678 rupiah. 

Indonesia has a policy of 
managed depreciation for the 


rupiah to help keepits exports 
competitive. Dealers said the 
rupiah remained relatively 
stable after the widening. ~ 
While saying the rmggit .• 
might be the next target by 
speculators, analysts said 
Malaysia's stronger economy 
and reserves meant foe c eatral 
bank could put lip a - tougher 
defense of the currency than 
either the Philippines orThai- 
land were able to' mount. . 


Malaysia’s reserves at foe 
end of June were nearly 71 


billion 

lion). 


ringgit ($28.51 bil- 


* 


BRIEFLY 


BOSNIA: Serbs Issue Warning 


Continued from Page 1 


JuifiK-lnv Ar/I/DK AmhojMJ ftcu 

Gerry Adams, the Sinn Fein leader, 
welcoming news on the marches. 


RAID: Bosnia Operation Seen as Turning Point for NATO Policy 


Continued from Page 1 


One of the two Serbs, Simo 
Drljaca, a former chief of po- 
lice and troop commander, 
was killed when he fired a 
pistol at a British soldier. 

The action represented an- 
other important change, of- 
ficials said. Previously, 
NATO commanders have 
been reluctant to put their 
forces at risk by moving to 
arrest indicted war criminals, 
some of whom live and travel 
under heavy guard. 

But the British, who first 
deployed troops in Bosnia 
Five years ago, have been 
more willing than most coun- 
tries to take strong action. 

Britain, the second-largest 
contributor to the peacekeep- 
ing force sent in elite troops to 
reinforce its 5,300 peace- 


keepers. The United Stares 
has 7,800 troops committed 
to the Bosnia operation. 

The raid might not have 
occurred if General George 
Joulwan, foe American who 
is overall NATO commander. 


had not been leaving his post, 
alliance officials said in Brus- 


sels. His successor. General 
Wesley Clark, chief military 
aide at the Bosnia peace ne- 
gotiations. was officially 
sworn in Thursday in Stutt- 
gart. 

General Joulwan has been 
adamantly opposed to the 
idea of peacekeepers trying to 
arrest war criminals. 

By contrast^ General John 
Shatikashvili, chairman of the 
U.S. Joint Chiefs of Staff, 
said Wednesday: “For the 
Dayton agreement to have a 
good chance, the internation- 


al community will have to 
come to grips with the ne- 
cessity of bringing war crim- 
inals to justice in The Hag- 
ue." 

He promised to “make 
every day count” before July 
1998, when U.S. troops are 
scheduled to withdraw from 
Bosnia. 

Officials said planning for 
the operation began in earnest 
shortly after Britain and the 
United States reviewed their 
Bosnia policies in May, and 
allied governments began 
discussing how to apprehend 
at least some war criminals. 

Both of the Bosnian Serbs 
targeted by the raiders were 
indicted secretly in March by 
the war-crimes tribunal in 
Brussels. 

While American officials 
insisted that the operation 


represented no change in the 
formal mandate of NATO-led 
troops, they said that Mr. 
Clinton's language, used dur- 
ing a news conference in 
Madrid on Wednesday, had 
hardened. 

"Our mandate is to arrest 
people who have been ac- 
cused of war crimes and turn 
diem over for trial, if that can 
be done in the course of ful- 
filling our other duties and if 
commanders on the ground 
believe the risk is appropri- 
ate,” Mr. Clinton said. 

One senior U.S. official 
said: 

“That is a more robust 
statement, and this is a more 
robust action today. The au- 
thority has always been there 
in the mandate, but the will- 
ingness to exercise it has 
changed." 


Dorothy Chandler, Arts Patron, Dies at 96 


A'rn Yt*L Times Sen n e 

Dorothy Buff urn Chandler, 96, whose 
vision and fund-raising fervor helped 
transform modem Los Angeles and who 
as the wife and mother of successive 

? ublishers helped turn the Los Angeles 
imes into one of the nation's great 
newspapers, died Sunday at a rest home 
in Hollywood. 

Mrs. Chandler's greatest single 
achievement was probably her nine-year 
drive in the late 1950s and early ’60s to 
finance and build the Music Center of 
Los Angeles County, which revitalized 
the city's downtown district and fused 
old-line society with the newer wealth of 
Hollywood. 


The opening of the center in 1964 
earned her a spot on the cover of Time 
magazine and an accompanying article 
that declared her effort to get it built as 
‘ ’the most impressive display of virtuoso 
money-raising and civic citizenship in 
the history of U.S. womanhood." 

The next year, the center’s largest 
auditorium, which has become a fre- 
quent home to the Academy Awards 
ceremonies, was named the Dorothy 
Chandler Phvilion. 

Governor Pete Wilson of California 
called Mrs. Chandler * ‘the heart and soul 
of Southern California’s cultural life." 
Mayor Richard Riordan of Los Angeles 
iofd the Los Angeles Times that "her 


imprint will be part of Los Angeles for 
many centuries to come," particularly 
its cultural life. 


Max Youngstein, 84, a film producer 
and Hollywood executive who had a 
principal rote in a 1950s financial rescue 
of United Artists, the legendary movie 
company, died Tuesday at his home in 
Los Angeles. 


Edwin Diamond. 72, an author, 
teacher and journalist whose career 
spanned more than 45 years and who 
covered topics from the space age to the 
news media, died Thursday of heart fail- 
ure in Manhattan. 


for war crimes only if troops 
“encounter" them in the nor- 
mal course of rheir duties. He 
sought to depict Thursday's 
operation in that light. 

But diplomats in Sarajevo 
and ordinary Serbs in Pale 
clearly understood that 
something had changed.. In 
particular, the Hague 
tribunal's new practice of is- 
suing sealed indictments has 
opened for peacekeeping 
forces the possibility of pre- 
paring snatch operations 
against unsuspecting targets. 

This has not been the case 
with more prominent Bosnian 
Serb leaders under public in- 
dictment, such as the former 
president, Radovan Karadzic, 
and his wartime military 
commander, General Ratko 
Mladic. Both have surroun- 
ded themselves with heavily 
armed protection. 

Soldiers from the Special 
Police Brigade, armed with 
AK-47 assault rifles and gren- 
ades, guarded approaches to 
Mr. Karadzic's house Friday 
in a wooded vale just outside 
Pale. The nearby Fanos Korei 
motor parts factory where he 
sometimes uses an office also 
was heavily guarded, flanked 
by a military base complete 
with a row of tarp-covered 
howitzers. 

Although at some distance 
from Prijedor and Thursday's 
operation, townspeople here 
voiced outrage at what 
happened. In conversations 
with reporters, they declined 
to reveal their names but 
spoke passionately of the in- 
ternational campaign against 
their wartime leaders and 
vowed that any attempt to 
capture Mr. Karadzic would 
not be bloodless. 

‘ ‘ If they try that, the Serbs 
will not make it easy," de- 
clared a mechanic wearing 
red coveralls. Repealing fre- 
quem previous threats, he ad- 


ded. “A lot of people will die 
on both sides" 

A fellow mechanic said 
that the former president, eas- 
ily recognizable by his trade- 
mark shock of white hair, had 
been seen less frequently 
around Pale lately but retained 
a large place in people's 
hearts. “Inside, he is still our 
leader," he explained. 

At the hilltop Panorama 
Hotel, where Bosnian Serb of- 
ficials frequently meet, Mr. 
Karadzic’s place loomed sim- 
ilarly large. A row of portraits 
of famous Serb leaders over 
the centuries showed 1 1 kings 
and dictators with elaborate 
uniforms and golden crowns. 
These were followed by a 
1 2rh portrait — of Mr. Karad- 
zic in his usual dark suit and 
crowned by his bouffant hair. 

Spokesmen for the inter- 
national organizations oper- 
ating in Bosnia expressed sat- 
isfaction at Thursday’s move 
— along with hope that it 
would inspire fear among war 
crimes suspects. 

“It is the wish of the 
tribunal that no one of those 
who have been indicted and 
those who deserve to be in- 
dicted — ■ and they know who 
they are — have a restful 
night of sleep except in a de- 
tention cell of the tribunal.” 
said Alex Ivartko. spokesman 
for the UN International Po- 
lice Task Force. 

■ U.S. Pull-Out Date 

The U.S. Senate on Friday 
strongly urged but did not re- 
quire the United States to pull 
out its troops from Bosnia by 
next June 30. giving the Clin- 
ton administration the flex- 
ibility it sought. Reuters re- 
ported from Washington. 

The House has voted to cut 
off funds for the troops on 
June 30. 1 998. despite admin- 
istration arguments that a 
mandatory date could 
threaten U.S. troops and jeop- 
ardize the mission. 


Basque Politician Abducted 


MADRID — The police launched a manhunt in north- 
ern Spain for a kidnapped politician Friday, racing against 
a Saturday deadline set by foe Basque guerrilla group 
ETA, which threatened to kill him unless its demands 
were met. 

Hundreds of police and Civil Guard troops combed the 
Basque and Navarre regions in search of Miguel Angel 
Blanco, a local official from foe governing Popular Party, 
Interior Ministry sources said. Mr. Blanco, 29, a Basque 
town councillor, was abducted Thursday shortly after 
leaving his home in Ermua on foe way to work. 

Authorities said the separatist group had vowed to 
execute him unless about 500 ETA inmates held .in 
Spanish prisons were transferred by 4 P.M. Saturday to 
institutions closer to the Basque region. The government 
dismissed the demand, saying it would not succumb to. 
blackmail from a “band of terrorists. ” (Reuters) 


Wroclaw Brazes for Floods 


WARSAW — The historic city of Wroclaw braced 
Friday for advancing fioodwalers that have killed ar least 
45 people in Poland and the Czech Republic during some 
of the worst flooding in decades. 

Residents in Wroclaw, 300 kilometers southwest of 
Warsaw, were buying up supplies of bread and drinking 
water after being warned of rtae arrival of a giant wave, but 
no evacuations were ordered. 

Rescue workers starred to destroy a dam ro try to divert 
the waters away from Wroclaw and save the medieval city 
center that was rebuilt after World War D. But residents of 
neighboring villages that would have been threatened by 
the move confronted them and stopped the work. (API 


Mir Crew Practices for Repairs 


MOSCOW — The Russian- American crew of the Mir 
space station checked and adjusted spacesuits Friday in 
anticipation of next week's repair mission on the dam- 
aged space outpost. 

Vasili Tsibliyev and Alexander Lazutkin and their 
American crewmate, Michael Foale, gave their pres- 
surized suits a thoroughgoing-over in advance of a repair 


effort in the sealed-off Spektr module. The job is ten- 
tatively set for Thursday and Friday, said uina Man- 


shilina, a spokeswoman for the Mission Control -Center. 

The two Russian cosmonauts will unseal the airless 
module to reconnect power cables linking its solar bat- 
teries with the Mir’s main power system. They will then 
attach a specially made hatch ro keep the damaged Spektr 
module closed off. Mr. Foale will wait in the Soyuz 
escape capsule, ready to return to Earth with his Russian 
colleagues in case of danger. (AP) 


New Round for Cyprus Talks 


UN ITED NATIONS. New York — Greek and Turkish 
Cypriot leaders have agreed to meet again next month in 
Gene va to continue talks aimed at resolving the 23 -year 
division ot' Cyprus, sources said Friday. 

The sources, speaking on condition of anonymity, said - 1 
the Greek Cypriot president. Glafkos Clerides, and the 
Turkish Cypriot leader. Rauf Denktosh. reached the 
agreement to meet again Thursday, during the second day 
of discussions sponsored by the UN in Trourbeck. New 
York. They said the next round would be held in Geneva 
from Aug. 11-16. The Troutbeck meeting is expected to 
last until Sunday. . \AP) 





w 


ft 


it 


ex 










INTERNATIONAL HERALD TRIBUNE, SATURDAY-SUNDAY, JULY 12-13, 1997 


RAGE 5 


Kenya Leader Says 
He’ll Fight Critics 


™»WiersWi| tdllu ^ 
reburial. The 
smn unit was killed hT 

ancover the mass gr a ^ 


Vi7i';,(r I *>i i 'j' ;• /!,».(• a . . 

NAIROBI — President 
Daniel amp Mai said Friday 
he would take decisive action 
against any members of the 
opposition who tried to bring 
chaos to the country. 

Earlier in the dav." oppo- 
sition leaders urged Kenyans 
to use “all necessary means*’ 
to compel Mr. Moi xo make 
democratic reforms, and ro 
block elections if he refused. 
They warned that Kenya 
could slide ‘into violence un- 
less constitutional changes 
were enacted before rhe elec- 
tions that are due this year. 

Clashes between pro-de- 
mocracy demonstrators and 
police on Monday left at least 
nine people dead and scores 
injured. 

Mr. Moi. who is 73 and has 
been in power for 19 years, 
challenged the opposition to 
take the debate on reforms to 
Parliament, where his party 
has a majority . 


"Those pressing for re- 
forms must allow Parliament 
to convene and address the 
matter." he said, according to 
his press unit. "A two-thirds 
parliamentary majority will 
nave to approve the direction 
the amendment would have to 
rake." 

A statement signed by 10 
lawmakers including the op- 
position leader James Orengo 
urged Kenyans 10 ’ ‘ensure by 
all necessary means at their 
disposal that the general elec- 
tions are not held before re- 
forms are effected." 

Mr. Orengo said the op- 
position was not calling only 
for a boycott of elections. 
"We are saying more than 
that," he said. “No reforms. 
No elections. We are corn- 
mined to reforms to the extent 
that we will ensure that there 
are no elections." 

Twenty- two countries 

have pressed Mr. Moi to 
make reforms, f Reiners . AP) 


ly Shows An Air Safely Step 


howedth epan v Wmn 
■t of the vote wnh near) * 
the returns counted The U 
historic change in the 
y giving the oppo^T' 
Dice m government m 
malysts said. 

Jrug Chiefs 

suits were relea>ed Thuri, 
days of speculation 
lich U.S. official, ldenuiV 
as that of Mr. Camllr»..;i ^ 
aiez drug cartel, who 
; world's paramount drugs 
ier establishing links hew* 
and Colombian ors.inizatH» 

ist Asian Markeli 

rupiah to help keep irs ttpp- 
competitive. Dealers ^Jife 
rupiah remained relative 
stable after the widening. 

While say ms the im 
might be the neu ur sar 
speculators, analysis a: 
Malaysia's stronsera'tmn 
and reserves ineoni ihecerc 
bank could put up a icu^r 
defense of the -.urrencyn 
’either the Pitilippmesurrur 
• land were able to mount 

Malaysia v reserves at 
end of June were nearly- 
billion ringcit ' * 
lion). 


U.S. Orders Better 'Black Boxes 9 


lan Abducted 

launched a manhunt in notfr 
riitician Friday. 
the Basque guemlh 
kill him unless it> 

:ivil Guard troops 
is in search of 'l , r' uf - [1 i 
1 the governing P ^P U,3I „S 1 
rid. Mr. Blanco. 
acted Thursday >honfy ** 

: on the way 10 work- 

jurat ist group had 1 
t 500 ETA inmate* »*• 
iferred by 4 P-M- 
isque region. Tht - . in * r 
(ins it w ould not 


By Don Phillips 

(VtiiAiiiijr.'it /Vm Sm 1. 1 

WASHINGTON — The 
Federal Aviation Administra- 
tion has set new standards for 
flight-data recorders — 
called "black boxes" — that 
help investigators determine 
why airliners crash. 

The upgrade, which will 
cost the aviation industry 
about $314 million over the 
next four years, follows ur- 
gent recommendations from 
the Narional Transportation 
Safety Board. 

The board said its inves- 
tigations of two unexplained 
Boeing 737 crashes — in 
Pittsburgh in 1994 and Col- 
orado Springs in 1991 — 
were severely hampered by 
inadequate flight-data record- 
ers. 

A new rule, which was un- 
der review for seven months 
in the White House Office of 
Management and Budget, 
was ro be published Friday in 
the Federal Register. 

The safety' board proposed 
the upgrades on Feb. 22, 
1995, and recommended that 
all twin-jei 737s be equipped 
with new recorders by the end 
of 1995. 

The FAA said such rapid 


action for the 737 would dis- 
rupt the aviation system and 
was unnecessary, and on July 
10. 1996. published a pro- 
posed rule with a four-year 
phase-in. 

The final FAA proposal 
was sent to the White House 
for review in December. 
There was no explanation on 
why it was delayed until 
Thursday. 

Under rhe FAA rule, air- 
lines have four years to in- 
crease the number of data 
measurements — or “para- 
meters" — of aircraft move- 
ment and control input. 

The FAA said 4,325 ex- 
isting aircraft would be af- 
fected. at an average cost of 
S5.61 1 for a large aircraft and 
S3.067 for a small plane. 

The United Airlines 737 
that crashed at Colorado 
Springs on March 3, 1991. 
killing 25 people, had only 
five parameters. The USAir 
737 that crashed at Pittsburgh 
on Sept. 8, 1994, killing 132 
people, had 11 parameters. 

A sudden redder move- 
ment is calculated to have be- 
gun the crash sequence at 
Pittsburgh, a roll and fast 
plunge. The same problem is 
suspected in the Colorado 
Spnngs crash. 


BRIEFLY 


Hashimoto to Skip Mir Shrine 

. TOKYO — ,Wary of China's wrath. Prime Minister 
Ryu taro Hashimoto plans to stay away this summer from 
a shrine that sanctifies the souls of Japan’s war dead, 
including war criminals, the Kyodo news agency reported 
Friday. 

Last summer, Mr. Hashimoto became the first serving 
prime minister to visit the Yasukuni Shrine since Yas- 
uhiro Nakasone in 1985. But this year, he will not make a 
visit because he does not want to stir up Chinese criticism 
ahead of his visit there this autumn. Kyodo quoted 
unidentified government officials as saying. 

Before and during World War II. Yasukuni was a 
bastion of the military government’s specially adapted 
. version of Japan 's indigenous Shinto religion. To most of 
Asia, it is a symbol of Tapan’s inability to face up to its 
wartime past. (AP) 

Defector Lies, Pyongyang Says 

TOKYO — North Korea lashed out at a defector Friday 
for "slandering" the Communist government and con- 
demned him as a "human waste and lunatic." 

The official press agency KCNA, which was mon- 
itored in Tokyo, reported the accusation against Hwang 
Jang Yop, the highest-ranking North Korean ever to flee 
his homeland, by quoting a statement it said had been 
issued -by the Radio Voice of National Salvation about a 
news conference Mr. Hwang gave Thursday in Seoul. 

The Stalinist state says the radio service is a pro- 
Pyongyang "underground" organization in Seoul and 
often uses it to disseminate anti-South Korea propaganda. 
Seoul says die organization does not exist i Reuters ) 

India Police Kill llat Protest 

BOMBAY — At least 1 1 people, including two chil- 
dren, were killed when police fired on a crowd protesting 
the desecration of a social activist's statue here Friday, 
witnesses and hospital sources said. 

Demonstrators accused the police of indiscriminate 
firing during what they said was an orderly protest. 

The police said they were provoked during the incident 
at Ghatkdpar, 15 kilometers 1 10 miles) from the center of 
Bombay,. (Reuters) 

Macau Bus Bomb Destroyed 

■ MACAU — Policemen in Portuguese-governed Ma- 
cau destroyed a bomb Friday that was planted under a tour 
bus just outside a hotel, authorities said. ' 

Security guards at the New Century Hotel .on Taipa 
Island called authorities after finding the device, me 
police said. Bomb-disposal specialists used robots to 
explode it, and there was no damage. 

The bomb was meant as a "warning," the police said. 
A consortium recently took over the Chinese-financed 
hotel and. was planning lb open a casino. - (Reuters) 

Pakistani Expands Cabinet 

ISLAMABAD, Pakistan — Prime Minister Mian 
Nawaz Sharif expanded his four-month-old cabinet Fri- 
day, naming 1 0 new ministers and four ministers of state, 
including a representative from the ethnic Mohajir Na- 
tional Movement. 

The newcomers, sworn in by President Farooq 
Leghari, increase the cabinet to 17 frill ministers and five 
ministers - of state, plus two advisers with minister 
Status. (Reuters) 


Panama Sends a Force to Patrol Colombia Border 


By Larry Rohler 

New York Timc\ Sen « r 

PANAMA CITY — 
Faced with an influx of 
Colombian refugees, guerril- 
las and paramilitary groups 
that has led to skirmishes, 
kidnappings and seizures of 
property, the government has 
ordered an armed force of 
more than 1.200 men to the 
remote Darien region along 
its border with Colombia. 

Panama announced the 
show of strength this week 
after incidents in which 
refugees said to be sympath- 
etic io leftist Colombian 
guerrillas were attacked on 
Panamanian soil by Colom- 
bian paramilitary forces. 

In one such foray late last 
month, a paramilitary unit oc- 
cupied the town of Yape. ex- 
ecuted a suspected guerrilla 
collaborator and left graffiti 
warning, “Panamanian cops: 
If you don’r fighr subversion, 
you will be fought. " 

The incursions have raised 
questions about Panama ' s 
ability to defend itself. Pana- 
ma has been withoui an army 
since U.S. troops invaded in 
1989 to depose General 


Manuel Antonio Noriega 
and restore civilian rule. The 
legislature abolished the mil- 
itary, replacing it with a na- 
tional police force thai is 
carefully circumscribed. 

Those concerns have been 
heightened by the provisions 
of the Panama Canal Treat- 
ies, which require the United 
States to hand over (he wa- 
terway on Dec. 31, 1999. 

"We are two years away 
from receiving the Panama 
Canal," Bishop Romulo 
Emiliani of Darien said this 
week "If we can't guard our 
own land borders, then how 
are we going to protect the 
canal?’* 

Foreign Minister Ricardo 
Alberto Arias dismissed con- 
cerns about the canal as ex- 
aggerated. While there is "a 
delicate situation" on the bor- 
der that requires “a political 
solution" in Colombia, he 
said, the security of the c anal , 
which is used by more than 
13.000 ships a year, “is an 
altogether different matter." 

"The canal has its own 
system of protection." he 
said, “which in reality is 
provided by its own security 
force, based on information 



I/*.*# 


A Panamanian police officer patrolling by helicopter the guerrilla- and refugee-filled area near Colombia. 


and intelligence that will 
continue ro'be acquired and 
shared" after 1999. 

Panama and Colombia 
have both said the recent in- 


cursions were the work of 
“criminal wrongdoers," not 
guerrillas or paramilitary 
groups. But Panamanian of- 
ficials admit that their deploy- 


ment is largely symbolic. 

“We're not in a condition 
to undertake a battle in the 
field with any group." Jose 
Luis Sosa, director of the na- 


tional police, said in a tele- 
vision interview. “The Co- 
lombians have an army of 
140.000 men. and they're 
still at if after 40 rears. "" 


Egypt Resists Islamist Proponents of Female Circumcision 


Reuters 

CAIRO — The government will not allow 
so-called female circumcision operations in 
hospitals despite a court ruling that declared a 
ban on die practice null and void, Ismail Sal- 
lam. Egypt s minister of health, said Friday. 

Mr. SaJJam, quoted in rhe government 
newspaper Akhbar, said the ministry would 
challenge the ruling in a higher court, the 
Supreme Administrative Court. 


A lower court, in a ruling supporting the 
radical Islamist case against the government, 
determined in June that the minister did not 
have the authority to ban the ancient practice 
by decree. 

Human-rights and feminist groups de- 
plored che ruling, saying it had given doctors 
a green light to continue conducting the op- 
erations. The practice, which is customary in 
the western pari of the Arabian peninsula and 


northeastern Africa in Muslim, Christian and 
polytheistic communities, is often called fe- 
male genital mutilation because of the severe 
effects it can have. Some Islamists say the 
practice is Islamic, but many Muslims dispute 
the textual authority for it. 

AJ Akhbar reporred that Mr. Sallam had 
said at a conference in Alexandria: “The 
decision to ban female circumcision was a 
sound decision, in line with the proper 


concept of religion. Linking female circum- 
cision with Islam is an insult to the reli- 
gion." 

In the operation, usually performed on 
prepubescent girls, a doctor or barber cuts off 
pan or all of The clitoris and other genitalia. 
Sometimes They sew the vaginal opening or 
even the labia together. Side effects can in- 
clude infection, hemorrhage, shock and sexu- 
al dysfunction. 



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PAGE 6 


SATURDAY-SUNDAi, JULY 12-13, 1997 


EDITORIALS/OPINION 


Hcralb 


INTERNATIONAL 



tribune 


Pl'BUMlfcU WITH TIIE NfcW MWK TIMES WIT Tilt UViHINCTUiN POST 


The NATO Raid 


Proceed with Caution 


Alter months of hesitation, NATO 
leaders have initiated the most sen- 
sitive and potentially volatile action of 
the Bosnia peacekeeping mission, the 
pursuit and arrest of indicted war 
crimes suspects. It is a step that may 
help secure peace and justice in Bos- 
nia, bur one that must be taken with 
■great care and precision. If mis- 
handled, it could lead to needless 
NATO casualties and a resumption of 
-violence throughout the Balkans. 

On Thursday, British troops arrested 
Milan Kovacevic. a Bosnian Serb hos- 
pital director. Another Serb. Simo Drl- 
jaca. a former police chief, was killed 
resisting arrest. Both were charged 
with complicity in genocide. One Brit- 
ish soldier was wounded. Neither sus- 
pect's indictment had previously been 
publicized, in order to minimize the 
risks of armed resistance. 

The declared end of the peacekeep- 
ing mission is now Jess than a year 
away. Were there no risk associated 
with the arrest of suspected war crim- 
inals. delivering them to The Hague for 
trial by an international tribunal would 
clearly serve the interests of justice. 

Jt would also remove from the re- 
gion many of the political and military 
leaders who were most responsible for 
the ruinous war and are now most 
likely to undermine the peace. These 
include Radovan Karadzic, the former 
Bosnian Serb president, and his top 
military commander. General Ratko 
Mladic. 

But the risks are considerable, start- 
ing w’ith the possibility that NATO 


forces would encounter armed resis- 
tance. especially in the case of General 
Mladic, who still enjoys the loyalty of 
many Bosnian Serb soldiers. 

NATO troops have more than ad- 
equate firepower to overcome Bosnian 
Serb forces, but NATO leaders may 
reasonably wish to avoid firelights. 

Even if arrests can be made without 
a confrontation, they could lead to re- 
taliatory strikes against NATO forces. 
In addition to possible military repris- 
als, there are unpredictable political 
consequences. Arrests and war crimes 
convictions could .help heal Bosnia as 
well as deter future spasms of ethnic 
violence. Human rights groups under- 
standably seek that outcome. But eth- 
nic hostility in Bosnia remains intense. 
A run of arrests, especially if they 
involve combat, could inflame ten- 
sions and shatter the uneasy stability 
that now prevails in Bosnia. 

The peacekeeping effort has not 
achieved all its goals, but has been 
useful. The urban bombardments and 
ethnic pogroms that killed thousands 
of Bosnians have been halted. National 
elections have been held. Casualties 
among the peacekeeping forces have 
been kept remarkably low. Some war 
crimes suspects have already been de- 
livered for trial by governments in the 
region. 

Improving on that record is desir- 
able. and it may be possible if NATO 
commanders can limit the risks when 
making additional arrests. 

But they should be mindful that the 
achievements in Bosnia can quickly 
come undone if the operations are not 
conducted with the greatest caution. 

— THE HEW YORK TIMES 


Next Get Karadzic 


Very lare in the day, NATO is step- 
ping up the pressure to arrest Bosnian 
war crimes suspects and send them for 
trial in The Hague. 

By (heir tortured mandate, the 
peacekeepers are not allowed to hunt 
down the mostly Serb accomplices in 
genocide, but they can pick them up if 
they come across them and if local 
commanders find the risk “appropri- 
ate.” These cautions account for the 
bizarre and dispiriting spectacle of ma- 
jor war criminals such as Radovan 
Karadzic and Ratko Mladic being reg- 
ularly seen enjoying their lives by 
many citizens but supposedly not seen, 
and therefore left free, by peacekeep- 
ers. 

NATO has not announced a change 
in its orders, which reflect a fragile 
alliance consensus, but within them the 
United States and some of the other 
members are making room for new 
initiatives. 

Fear of casualties is what inhibits 
NATO and keeps it from hunting down 


the 70-odd known Yugoslav suspects 
still at large. But it has. to be understood 
that a demonstrated readiness to take 
casualties can be precisely the factor 
that enables soldiers to avoid being 
shot at. Those accused of w’ar crimes 
should weigh the warning from the 
U.S. defense secretary, William Co- 
hen. who said that all of those indicted 
are now on notice that they will be 
brought to justice. 

Major tasks remain undone to ensure 
compliance with the Dayton peace ac- 
cords. A political and economic noose 
must be held if not tightened around 
those not fully cooperating, including 
Serbia and Croatia. Much more could 
be done to broaden the news media 
options of all Bosnians and in that way 
to break the regimes' powerful hold on 
information. Yet the hunting down of 
accused war criminals has its own 
political and moral centrality. The ar- 
rest of the former president, Mr. Karad- 
zic, even as he wrestles for power in the 
Bosnian Serb enclave with the elected 
president, Biljana Plavsic, would serve 
justice and democracy at one stroke. 

— THE WASHINGTON POST. 


A Nonbelligerent 


The next head of the U.S. Justice 
Department's antitmsr division will 
have a lot to say about whether the 
1996 Telecommunications Act breaks 
the monopoly choke hold that Bell 
companies exert over local phone cus- 
tomers. He will rule on mergers among 
telecommunications companies and 
advise the Federal Communications 
Commission on applications by Bell 
companies to enter long-distance mar- 
kets. 

Thus it is disheartening and dis- 
qualifying that President Bill Clinton's 
nominee, Joel Klein, scheduled to 
come up for confirmation in the Senate 
on Friday, has a record that suggests he 
might knuckle under to the powerful 
Bell companies and the politicians who 
do their bidding. 

Senators Bob Kerrey. Ernest 
Holiings and Byron Dorgan. all Demo- 
crats. have threatened to block the vote 
and put off until next week a final 
determination of Mr. Klein's fate. But 
the administration would do itself a 
favor by withdrawing the nomination 
and finding a stronger, more aggressive 
successor. 

Mr. Klein, who has been serving as 
the government's acting assistant at- 
torney general for antitrust matters, 
demonstrated his inclinations when he 
overrode objections of some of his 
staff and approved unconditionally the 
merger of Bell Atlantic and Nynex. 
That merger will remove Bell Atlantic 
as a potential competitor for Nynex’s 
many dissatisfied customers. Mr. 
Klein refused even to impose condi- 
tions that would have made it easier for 


regulators to pry open Nynex’s mar- 
kets to rivals such as AT&T. 

Worse, Mr. Klein sent a letter to the 
chairman of the Senate communica- 
tions subcommittee, Conrad Bums, 
who runs political interference for the 
Beil companies, that committed the 
antitrust division to pro-Bell positions 
in defiance of the 1996 act. 

That act invites the Beil companies 
to provide long-distance service, but 
only if the Bells first open their sys- 
tems to rivals that want to compete for 
local customers. Yet in the letter to Mr. 
Bums, Mr. Klein rejected Congress's 


interpretation of requirements to be 
' Bells ‘ ' 


imposed on the Bells in favor of his 
own, weaker standard. 

In a subsequent submission to the 
Federal Communications Commis- 
sion, Mr. Klein further weakened a 
requirement that before the Bells enter 
long-distance service they face a com- 
petitor that is serious enough to build 
its own switches and wires. Mr. Klein 
has also upset some senators by seem- 
ing to minimize the importance, 
provided in the 1996 Telecommuni- 
cations Act. of Justice’s advice to the 
communications commission on ap- 
plications by Bell companies to enter 
the long-distance market. 

True, Mr. Klein blocked applica- 
tions by two Bell companies, SBC and 
.‘yneritech, to offer long-distance ser- 
vice before they had opened their local 
markets to competition. But by pan- 
dering to Mr. Bums, he has created 
strong doubts that he can provide ag- 
gressive antitrust leadership. 

— THE NEW YORK TIMES. 


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The Elected Bosnian Serb Leader Deserves 


Bv William Shawcross 


P ALE, Bosnia-Herzegovina — The 
action Thursday by NATO forces 
against war crimes suspects in Bosnia 
(one arrested, one killed in a gunfight) 
was overdue. It has long been clear that 
the Dayton accord is being undermined 
by those Bosnian Serb leaders who 
prosecuted the war from here, and in 
particular by Radovan Karadzic. The 
move Thursday — marking a huge 
change of policy by the NATO com- 
mand, which had shied away from any 
such attempts — comes at a time when 
the Bosnian Serb leadership already 
appears to be breaking up. 

The president of the tiny and in- 
creasingly impoverished Bosnian Serb 
entity, Biljana Plavsic, is locked in a 
power struggle with Mr. Karadzic, her 
predecessor. Even without NATO’s 
more aggressive posture, it could prove 
a turning point. 

Mr. Karadzic has been indicted by 
the international tribunal in The Hague 
and is therefore unable to hold public 
office. Nonetheless, he has kept a 
stranglehold on Bosnian politics from 
behind the scenes. He has done 
everything he can to undermine the 
Dayton peace plan. NATO, which 
began with 60,000 troops in Bosnia and 
now has 3 1 ,000, has failed until now to 
arrest him or others under indictmenL 
But that is clearly changing. 

Mrs. Plavsic revealed recently that 
Mr. Karadzic has made an illegal for- 
tune from corruptly dealing in gas- 
oline, cigarettes, alcohol and other 
products imported through Serbia. 
Meanwhile, the Bosnian Serb popu- 
lation has suffered more and more 


deprivation — while life for people in 
the Bosnian-Croat federation has been 


improving. 

Mrs. Plavsic was a member of the 
Bosnian Serb leadership during the war 
and was an even fiercer Serbian na- 
tionalist than Mr. Karadzic. When she 


was elected president, she was viewed 
as Mr. Karadzic’s puppet. But Mrs. 
Plavsic is not corrupt. And her power 
base is not an eastern village but the 
western Bosnian town of Banja Luka, 
where television antennas and aspir- 
ations turn toward Zagreb and the 
West. 

Last month, she moved to fire the 
minister of interior, accusing him of 
corruption and mismanagement. She 
then rashly left for a trip to London. 
While she was away, Mr. Karadzic 
convoked die Bosnian .Serb Parliament 
to have members denounce her. On her 
return she was held for two hours by the 
police ar the Belgrade airport — an 
unnerving experience for anyone — 
and was then driven by them to the 
border of the Bosnian Serb republic. 
She was clearly in danger and was 
assured of NATO protection if needed 
to get home to Banja Luka. She is still 
in danger. 

Mrs. Plavsic has now dissolved the 
Bosnian Serb Parliament and called for 
new elections on Sept. I. Mr. Karad- 
zic's “Pale clique.” in turn, has de- 
manded that the Bosnian Serb con- 
stitutional court examine her action. 
The court is dominated by Pale, and it is 
predicted that it will rule against her. 

It is vital at this stage that the in- 
ternational community 1 do everything 
possible to support the constitution of 
the Bosnian Serb republic. That means 
its legally elected president. Biljana 
Plavsic. A victory by her over Mr. 
Karadzic is vital if the Bosnian Serbs 
are to join more fully in the Dayton 
process — which is the only hop« of 
lasting peace for all the peoples of 
Bosnia. 

Mrs. Plavsic needs to have protec- 
tion provided by the NATO force — as 
discreetly as the situation allows. She 
probably needs money — if only to pay 
the police in Banja Luka, whose sal- 



fli in VlH- tViiWhUi-tllWriliil ” ! '.il*W- 


Karadzic at his first lesson 


aries have till now been paid by Mr. 
Karadzic. She also needs full access to 
Bosnian Serb television and radio so 
that she can pat across her increasingly 
popular message. There have been 
demonstrations in her favor in Banja 
Luka. Prijedor and other towns. The 
elections she has called must be con- 
ducted as freely and fairly as possible, 
so that those who are opposed to the 
hard-line positions of Mr. Karadzic and 
his party can campaign without fear. 

Above all, she needs the stabiliz- 
ation force in Bosnia, and the new high 
representative. Carlos Westendorp, to 
be committed in their support of her 
brave demarche. This could break the 
stranglehold that the Pale clique has 
had on the Bosnian Serb people. 

Now is the rime for Mr. Westendorp 


to show that he has mastered the fine 
print of the Dayton agreement It is law,. £ 
and the law can be used in support of ~ 
the elected president Mr. Karadzic and.v 
his small gang have flouted the law .far . 
too long. Now at last one of theft owft is 
prepared to stand up against thetrLcShe 
must be supported. This is a defining: 
moment in post-Dayton politics. - 
If this moment is seized and tiie 
re mainin g suspects are pursued andput : 
on trial, Sere will be a good chance t6 ; 
enforce Dayton . properly and : start; • 
building a decent society for ail in-: 
Bosnia. 


The writer, an author and hoard : 
member of the International Crisis 
Croup, contributed this comment. jo J 
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The World Won’t Be Able to Keep Its Hands Off the Internet 




SAY 

Krfc 

US. 

Mel 


C ARMEL. New York — 
These have been heady 
days in Washington for that 
marvelous medium, the Inter- 


Bv Eli M. Noam 


net. 


First, the U.S. Supreme 
Court struck down restrictions 
on indecent content, overturn- 
ing a law passed virtually unan- 
imously by Congress. 

The CUmon administration 
had strongly supported those re- 
strictions. But less than a week 
after the justices ruled, a White 


House group issued an equally 
advoc- 


vigorous opinion that 
ated a largely hands-off policy 
by government regarding busi- 
ness conducted on the Internet. 

Is there any consistency 
here? In a way, yes. Both ad- 
ministration positions play to 


the gallery. And just as the de- 
fense of regulated morality on 
the Internet, though popular, 
proved to be a failure, so will 
the call for unregulated Internet 
commerce fail. 

This is not because of 
meddlesome bureaucrats, but 
because the Internet will be- 
come too successful to be 
treated differently from the rest 
of society and the rest of the 
economy. Since the Internet has 
moved from techie preserve to 
office park, shopping mall and 
entertainment arcade, it is sheer 
fantasy to expect that it will be 
left a libertarian island in a 
world full of jealous compet- 
itors and conflicting objectives. 


The Internet is not the only 
priority in any country. The 
United States, for example, has 
Long worried about crime, com- 
munism and children. That has 
led it to seek regulatory rules on 
pornography and encryption, 
and the wiring of schools tor the 
Internet. 

Similarly, Bavaria cares 
about hate' speech and public 
morality, and sets rules accord- 
ingly. For the French, language 
and culture are the priorities, 
and Internet services originat- 
ing in the country must be in 
French. Singapore worries 
about order. .And so on. 

Americans may disagree 
with these concerns, but don’t 


they have their own? Most of 
the White House paper tells 
state and foreign governments, 
not Washington, to mend their 
ways. 

For all the rhetoric of an In- 
ternet “free trade zone,” will 


is that clever youngsters can . 
always find a way to run-elec- 
tronic circles around any. re- 


AutOi 


striction, so why even try to 
is to foe 


the United States readily accept 
ide 


an Internet that includes Thai 


The call for 
unregulated 
commerce will fail 


child pornography, Albanian 
s. Cayman 


Inequality Amid the Prosperity 


W ASHINGTON — During 
the past four years, the 
American economy has en- 
joyed a robust expansion with 
low unemployment, greater in- 
ternational competitiveness and 
modest inflation. Unfortu- 
nately, the economy's expan- 
sion has failed to reverse two 
disturbing long-run trends: 
stagnant or falling real earnings 
for the majority of workers and 


By Laura D 5 Andrea 
Tvson 


increasing income inequality 


among workers and house- 
holds. 

Although average real earn- 
ings for nonsupervisory pro- 
duction workers increased 
slightly in 1996 (a trend that is 
continuing in 1997), they re- 
main far below theft postwar 
peaks of the mid-1970s. In ad- 
dition, the gap between rich and 
poor households is much larger 
than it was 20 years ago. 

Much of the increasing in- 
equality in family incomes has 
its origins in the marked in- 
crease in inequality of labor 
earnings. According to the In- 
stitute for International Eco- 
nomics, during the past two de- 
cades the ratio of wages of the 
top 10 percent of workers to 
those of the bottom 10 percent 
rose to about 525 percent from 
abour 360 percent for men and 
to about 430 percent from 380 
percent for women. 

Behind these yawning gaps 
are significant increases in 
wage differentials by educa- 
tion, age and occupation. To 
make matters worse and even 
more difficult to explain, 
“within-group inequality” — 
that is, differentials in earnings 
for workers with similar char- 
acteristics — has also risen 
sharply. 

There appear to be three ma- 
jor forces behind these trouble- 
some trends. Technological 
changes have increased the de- 
mand for — and relative wages 
of — highly skilled, college- 
educated workers. Globaliza- 
tion. Including import compe- 
tition and immigration, has in- 
creased the . supply and 
depressed the relative and ab- 
solute wages of less-skilled 
workers without college de- 
grees. Institutional forces, in- 
cluding a sharp decline in labor 
unions' strength and in the real 
value of the minimum wage, 
also have put iow-skiU workers 
at a disadvantage. 

Mosi economists give the 


greatesr weight to the techno- 
logical explanation for rising 
wage inequality. This explan- 
ation accords with the increase 
in both the relative employment 
levels and the relative earnings 
of more skilled workers. In ad- 
dition. empirical studies have 
established a direct link be- 
tween the technological intens- 
ity of jobs and the wages they 
P a £ 

Economists, politicians and 
commentators are waging a de- 
bate about the globalization ex- 
planation of wage inequality. 


Taxes aren’t a 
problem. But 
competition from 
immigrants 
might be. 


The simple analytical logic of 
lai 


this explanation is compelling 
— growing import competition 
and growing immigration from 
low-skill, low-income coun- 
tries have made unskilled labor 
a more abundant factor of pro- 
duction and therefore reduced 
its relative, price. Opinion is 
shifting toward the view that 
globalization has had a “mod- 
erate” effect — perhaps ac- 
counting for one-fourth to one- 
fifth of the nearly 20 percent 
rise in the wage difference be- 
tween skilled and unskilled 
labor — and the estimate of this 
effect has been creeping up. 
There is also a developing con- 
sensus that immigration, more 
than trade, has depressed the 
wages of the poorest workers. 

Given the powerful and di- 
verse forces driving inequality 
and the economic disaster that 
has befallen low-skilled work- 
ers. especially young men. in 
recent years, how should policy 
makers respond? 

First they should diagnose 
the problem correctly. There is 
no evidence, for example, that 
higher tax rates are the culprit. 
The effective tax rate for a 
middle-class family of four is 
about the same today as it was in 
1980. The top 14 percent of 
families pay substantially less 
than they would pay at rates 


prevailing 20 years ago. and the 
tax rate for the bottom quintile 
of families has been cut by the 
generous expansion of the 
earned income tax credit. 

There is little economic jus- 
tification for significant overall 
tax relief at this time. Generous 
capital gains tax relief would 
not significantly improve the 
economy's performance but it 
would worsen income inequal- 
ity. 

Policy makers also should 
not vainly attempt to reverse the 
forces of globalization by build- 
ing protectionist walls. Protec- 
tionism would raise consumer 
prices, shrink export opportu- 
nities and the high-paying jobs 
they support, and reduce net 
economic welfare, potentially 
making everyone worse off. 

As a recent study of the Na- 
tional Research Council con- 
firms, although immigration 
benefits the economy overall, 
with little negative effect on the 
income and job opportunities of 
most Americans, it has de- 
pressed wages of native-born 
Americans with low skills. 
These findings imply that the 
United States should shift to- 
ward skills and away from Fam- 
ily ties as the basis for allowing 
entry ro immigrants. 

The balanced-budget deal 


tele-doctors. Cayman Island tax 
dodges, Monaco gambling, Ni- 
gerian stock schemes, Cuban 
mail-order catalogs? Or, for 
that matter, American violators 
of privacy, purveyors of junk e- 
mail . or "self-regulating” 
price-fixers? Unlikely. And 
other countries will fee! the 
same on matters they care 
about. 

Thus, for better or worse, 
each society will apply its ac- 
cumulated wisdom, misconcep- 
tions, preferences and interest 
group muscle ro the rules gov- 
erning transactions over the In- 
ternet. And these rules will not 
be very different from those ap- 
plied to the rest of society. 

It is easy to engage in gen- 
eralized anti-government rhet- 
oric but hard to remain con- 
sistent. The Internet industry 
too has been selective in its 
libertarianism. 

It liked subsidies from the 
Pentagon and National Science 
Foundation that created the In- 
ternet in the first place, and the 
foundation money that is help- 
ing to develop the next-gener- 
ation Internet H. It fought for 
regulated cheap access to phone 
networks. It supports subsidies 
for school and library Internet 
access. It exhorts the federal 
government to carry a big stick 
internationally ro protect its 
software against pirates. 

Most of this makes sense, but 
if is not exactly the free mar- 
ket. 

Internet enthusiasts have a 
fallback hope: “You cannot 
regulate the Internet.” The idea 


regulate? The fallacy is to focus 
on the electronic bits, which in- 
deed are very hard to control. 

Communications are a matter 
not just of signals but of people, 
. institutions and physical hard- 
ware: the arm of the law can 
reach them. A government will 
go after static and physical ele- 
ments if it cannot reach mobile 
or intangible ones. 

For example, instead of tax- 
ing transactions over the Inter- 
net, which will prove difficult 
and inefficient, a government 
might tax the physical delivery. 
Instead of controlling informa- 
tion, it might mandate hardware 
to do so, like tire V-chip in 
American television sets. 

It seems that the new medium 
is like an inkblot test, an elec- 
tronic blob into which all proj- 
ect their own fantasies, hopes 
and fears. 

Traditionalists find the dark 
forces of degeneracy. Libertari- 
ans detect the heavy hand of 
government. Leftists discover 
the sharing community, devoid 
of the avarice of private busi-. 
ness. Internationalists expect 


Aire 

Tet 




theglobal village. 
Tnis kii 


kind of dreaming, is 
common for new technology, 
and it is usually wrong.. The 
reality will be more mundane; 
The Internet will be enormously 
important, but it will not create 
a new regulator system. It's 
nice to dream of it as a global 
force of liberation, but it may 
also have the unintended op- 
posite effect, if more controls 
are levied on people and prop- 
erty instead of on transactions 
and information. 

The White House, com-, 
mendably, says ail the right 
things. But if we watch what it 
does to its own sacred Cows, nor 
what it tells others to do, we 
should not expect a de regulat- 
ors' revolution. 


■i-al 






The writer, professor of fi- 
nance and economics at the 
Columbia Business School, 
contributed this comment to 
The New York Times. 




must include adequate financ- 
ing for social safety net pro- 


grams — including Food 
stamps, the earned income tax 
credit, health insurance, hous- 
ing subsidies and Social Secu- 
rity — that ease the challenges 
facing millions of low-income 
American workers and their 
families. Such programs effec- 
tively contain increasing in- 
come inequality. 

Finally, policy makers at all 
levels must renew their efforts 
to provide all Americans with 
opportunities to upgrade their 
education and skills throughout 
their lifetime. Lifelong learning 
is a necessity if workers are to 
meet the demands created by 
changing technology and in- 
tensifying globalization. 


IN OUR PAGES: 100, 75 AND 50 YEARS AGO 


1897: Wild Fashion 


The writer, who was Pres- 
ident Bid Clinton's economic 
adviser in his first term, is pn>- 
fessor oj economics and busi- 
ness administration ut the L'm- 
v ersin of California ar 
Berkeley She contributed this 
comment to The Washington 
Post. 


LONDON — If the felt hat has 
not yet come to change the pre- 
vailing styles in head embel- 
lishment. its precursor is very 
much in evidence in the shape 
of gorgeous waistcoats and 
neckties. Any one coining to 
London for the first time would 
be shocked at the extraordinary 
departure from the regulation 
black habiliments of an old- 
time Londoner's wardrobe to 
the wildest extravagances based 
on the time-honored elements 
of the rainbow and developed 
into halt-holiday superlatives of 
a color mixer's dreams. Color 
everywhere greets the eye in the 
Englishman's garb of to-day. 


Republic of Africa," that the 
colored men of North America 


5 f-: 

ftt 

•3 


should migrate and form a re- 
public in the land of their an- 
cestors. Garvey, as head of the 
Universal Negro Improvement 
Association, recently ran foul 
of the postal authorities in con- 
nection with die sale of shares 
in the “Black Star Line,” 
which planned to buy a fleet of 
ships to transport America's 
colored population overseas. 


1947: Red ‘Free State’ 


;! 

A: 


1922: Negro Republic 

NEW YORK — Several thou- 
sands wildly excited negroes 
assembled and loudly cheered 
the plea of Marcus Garvev. 
“provisional President of the 


ATHENS — An estimated 
force of 4,000 guerrillas, fight- 
ing for the first time along 
pitched battle lines, held grimly 
to what they hope will become 
theft “free state” on the jagged 
slopes of towering Mount 
Grammes, near the Albanian 
border. It is the first time since 
the army launched its anti-guer- 
rilla drive on April 9 that the 
stubborn mountaineers have 
offered organized opposition. 




25 

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ion 

he has mastered the fo* 

‘-Vton agreement. I,,, u 

an be used in >u P no n .; f 

S i dem -^' Kara.ii,c oij 
? have flouted the U Z 
atlasioneofiheirnwj 

and up against ihem Sh,. 
orted. This is a dci inir ,. 
•st-Dayton politic,, 
ment is seized Jn d ih- 

pects are purged and wu 

will be a good chano!,., 
ton properh an j „ iin 
ecent society jor j|| in 




an aurncr 

r he Imemaitviuii CrZ 
•ibuied tins ?_'**? /•»;, > ( j 
’£w ftw. 


e Internet 


hat clever \ ounu-icr- iJD 
ays find a waj ;wt .-lx 
lie circles aniLitd .in-, u, 
:iion. so \\b.\ e-.m ;p. m 
ulaie? The faJ L-,c;. > 1 .. :Ju, 
the electronic nnV. w huh *. 
d are ver> hard ennuri 
rommumcahons jie a nun;: 
jiisi of signals ?u; < •; pe.% 
itutiocs and pr.;. ? u:! haw- 
re: the arm oV me ijv 
rh them. .A jKn*.TifiK»’a4 
after static ana ph>*ujJ se- 
ats if it cannot reach mote 
n tangible one - 
? or example. indicia 0 : ■»■ 
transacrions ,*•« er tne law- 
, which will pro’.? aiHcui 
1 inefficient, a go-- rran» 
•hr tax the ph> >;c.i! deh'er* 
read of controlling iniotna- 
U it might mandate hardware 
do so, like the ' -ctup ® 
terican television .-ris 
1 seems that the new media* 
ike an inkblot te>t. in eke- 
lie blob into which dUp ?f 
their ow n fantasies- ftp 
[fears. _ . . 

[radirionalists Jsnd the 
:esof desenerac> . Ljherui> 
detect the heav> hJfl*-® 
'emment. Leftists disj" 
sharing conunumn- * 
[he avarice of ? n ' aB ^ 
s. Iniemarionjlisi-* * r 
global village, 
fii kind of dreaming 
runon for new 
i, it is usually wa- 
rily will be more mundj 

ilhieraetwillbeen^ 

rartaht. bin n ,V n ? 
ew regulator) *> : u ‘ ^ 
r to dream ot > r ^ 
:e of liberation, b ^ 
> nave the unini- ^ \ 
te effect, it 
levied on 

r. instead ot on * jn - 
information. 

^ WHi« ii|» 

udably. ; hw h3 tt 

IBS. But if we W3U? ‘ * 

s 10 its own sacred - , t 
IT »t tells other> 11 ^ 

uld not expect 2 J - 

revolution. 

he uriitr. S*" f *?j* 
<ce *W Ct lV j' ' 
ternAra 

trihareu wu 
' Aft*w 1 iiri1 1 


INTERNATIONAL HERALD TRIBl SE, SATLRD.W-Sl NDAY. JLLV 12-13. 1997 


PAGE 7 


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Comprehensive yet concise, informed yet impartial, the affairs of the world unfold on the pages of the World’s Daily Newspaper. 




I 


31a 


IT 



Geneva Collector 
Keeps His Works 
Traveling the World 


By Alan Riding 

Afrit Yorl Times Sen ice 

G ENEVA — Many museums are reluctant 
to lend their prize works of art. Not so the 
Barbier-Mueller Museum in Geneva. For 
Jean-Paul Barbier. the Swiss collector 
w ho founded the private museum 20 years ago to 
house his collection of African. Indonesian, Ocean- 
ic and pre-Columbian art, its principal purpose is 
not to draw visitors to its small gallery space in 
Geneva's old town. Rather, it is to prepare "en- 
sembles'* of works ro travel around the world. 
"The museum is a laboratory where we test ex- 
hibitions that we then present on a much larger 
scale in major museums,' ' explained Barbier. a real 
estate magnate. 

As a result, with his 6.000-piece collection better 
known in many European and American cities than 
it is in Geneva. Barbier is playing a major role in 
awakening new interest in what was long known as 
“primitive" or "tribal” art and is now increasingly 
accepted as art lout simple. 

Since I9S0. he has presented ensembles in more 
than 50 museums. Several shows are invariably on 
the road at the same time. 

"African Masks." recently seen in Munich, is 
scheduled for museums in Austria. Luxembourg, 
Germany and France. "The An of New Ireland,” 
an Oceanic island! part of Papua New Guinea), has 
just closed in Paris. "Power and Gold.’ ’ a selection 
of jewelry and ornaments from Southeast Asia that 
traveled the United Srates from 1985 to 1988. is 
now in Sweden. A new Barbier-Mueller Museum 
of pre-Columbian An opened in May in Barcelona. 
And "The An of the Southern Seas” and 
"Shields" are at the planning stage. 

For all his eagerness to share his collection, his 
main motive is still to please himself. “I buy for 
myself.” Barbier. 67. said in an interview in his 
rambling Geneva home. "I don't collect like a 
museum director who may say. 'I don't like this 
piece, but it's important in order to explain another 
piece.' I buy pieces that I like. The collection keeps 
growing because I am a collector and I can't stop 
buying. 

Still, his collection is unusual in that it is built on 
the collection of his father-in-law. Josef Mueller. 
Between 190$ and 1930, living mainly in Paris. 
Mueller acquired w orks by Renoir, van Gogh, Cez- 
anne. Matisse, Picasso, Braque, Gris, Leger, Ernst. 
Rouault. Bonnard. Miro and others. 


When the Depression struck, he ran out 
of money and was forced to sell some oils. 

Then, looking for something he could 
afford, he began buying * 'cheap' * African 
art in the flea markets of Paris. By the time 
Barbier met his future wife, Monique, 

Mueller had long settled back in his native 
town, Solothum, surrounded by invalu- 
able modem works and choice pieces 
from his ever-expanding collection of Af- 
rican and pre-Columbian art. 

As Barbier remembers- him, his father- 
in-law was also something of an eccentric: 

He spent little money on himself, wearing 
the same old clothes and traveling third- 
class on trains; he liked to gaze at his an, 
but he rarely discussed it, and be refused to 
lend his modem masterpieces. But he con- 
tinued to collect primitive art "He col- 
lected to give himself pleasure.” Barbier 
said. “He collected in the way you marry a 
beautiful woman. You don't just many her 
to show her off at nightclubs. You also 
many her to have her in your bed. Josef 
Mueller's artworks were in his bed. He was Jean-] 
in love with art” 

Barbier said he had caughr the “vims” of col- 
lecting at an early age. focusing first on rare books. 
Bur be quickly fell in love with Mueller's primitive 
art. "Mueller pointed me towards Oceanic art," he 
recalled. "He said: 'Look, one day my collection 
will belong to my daughter, but it is essentially 
African, and there are magnificent things to be 
found from Oceania. I'm too old to start a new 
collection, but you should.’ I took his advice." 



B 


ARBIER’S approach to collecting, 
however, is more scientific. After 
Mueller's death, in March 1977, at the age 
of 90. his son-in-law decided to “clean 


Hamhcim Salg^./TV N<r» V-Tk Tano 

Jean -Paul Barbier with an Indonesian sculpture. 

of col- Now, however, Barbier is beginning to face a 
books, perennial problem: what will become of his col- 
imitive lection after he dies? None of his three sons has 
irt," he shown any interest in primitive art. He and his wife 
[lection have therefore decided to sell parts of the collection 
mtially to recognized institutions as a way of preserving the 
i to be ensembles intact. "To divide up the Indonesian 
a new collection would be like cutting a piece from a 
:e. ' ' Gauguin landscape, ' ’ be said. 

Last year, he sold a mini-collection of 276 works 
leering, of art from Nigeria, including numerous Benin 
After bronzes, io the Museum of African and Oceanic Art 
the age in Paris for around $8 million. These works, along 
“clean with 45 from existing French collections, are on 


up” the African collection by separating out 1,200 display at the Paris museum, through Aug. 18, in a 
unimportant objects and sending them to Christie’s well-received show called “Arts of Nigeria.” 


unimportant objects and sending them to Christie's 
for auction. 

With the opening of the Barbier-Mueller Museum 


Yet, for all that, Barbier continues collecting. 
"What is a collector?” he asked. “Someone who 


in June 1977, Barbier also gave coherence ro the buys 10 objects, puts them in his apartment and 


highly eclectic collection by creating "ensembles” 
and backing them up with detailed catalogues writ- 
ten by top scholars in each field. Since then, he has 
added some African pieces, and he has more than 
doubled the number of pre-Columbian works, al- 
though he is proudest of the remarkable collection of 
Oceanic and Indonesian art that he has built up- 


stops there is not a true collector. He’s an en- 
lightened connoisseur, a man of great taste, but not 
a collector. A collector is someone who has one 
million but spends two million, someone who is 
perpetually short of cash, someone for whom the 
most desirable work of an is the one he will 
discover tomorrow.” 


Unmasking the Power 
Of Central African Art 


By Hank Burchard 

Washington Post Service 


W ASHINGTON — Masterpiece 
is a much-overworked, word, 
but no other term will serve to 
describe the Central African 
sculptures and masks on display at the 
National Museum of African Art, 

The 125 Objects in the exhibition were 
chosen from a group of 250 selected for the 
centennial of Belgium’s Royal Museum for 
Central Africa atTervuren. Since the entire 
collection numbers some 250,000 objects, 
each piece in that show was one in a thou- 
sand; and this show, which is at its second 
stop on a two-year world tour, consists of 
the better half of those. 

The beauty and power of the pieces are 
such as almost to overwhelm the underlying 
reality that many of diem were collected 
through intimidation — or simply looted — 
by what is widely considered to have been 
the most brutal of all African colonial re- 
gimes. But if the Belgian Congo (later in- 
dependent Zaire, now simply Congo) rep- 
resented the heart of darkness of European 
intervention in Africa, this exhibition is a 
ray of postcolonial enlightenment Re- 
searchers now are studying how the col- 
lection may be used to help restore Congo's 
shattered cultures and traditions. 


Because the Congo embraces so many * 
different cultures, there’s no way the Smith- 
sonian show could include the full context, 
of the objects (and because of the chaotic 
way some were collected, in many cases the 
source, meaning and purpose are nor fully 
known). 

Possibly the most engaging object m the 
show is a figure of a drummer, collected in 
190^ from the Nkanu people of lower ^ 
Congo. At first glance the woodcarving ' 
appears to be a comic figure of a monkey, 
but almost instantly it resolves into a half- 
size human figure of extraordinary sen- 
sitivity. . Drummers are present at the ex- 
cruciatingly painful circumcision cere- 
mony that marks a Nkanu boy's transition 
to manhood. They are supposed to frighten 
away devils. Arid, as this figure s- com- 
passionate expression exemplifies, the, 
drummers are supposed to allay fear and 
inspire courage. _ 

The exhibit's exploration of Congo cul- 
tures is arranged in geographical order. It’s 
an awesome nip. and while the meaning of 
many of these objects may remains mys- 
terious, their mastery is unquestionable. 

The exhibition continues through Oct. 19 
at the National Museum of African Art. It 
will then travel to Fort Worth, Texas; San 
Francisco: New York; Sl Louis, Missouri; 
Chicago; Duesseldorf and Barcelona. 


A Biennial Reappraised 


By Jo Ann Lewis 

Washington Post Service 


W ASHINGTON 
— Alter nearly a 
century of track- 
ing the cutting 
edge in American painting, has 
the Corcoran Biennial become 
obsolete? That question is now 
under serious consideration by 
Corcoran curators and trust- 
ees. who have decided to post- 
pone the 1997 biennial for a 
year. The fate of the show after 
1998 remains undecided. 


There are vague plans to 
mount a millennial biennial in 
2000 devoted to “looking at 
contemporary art and where it 
is going." said Jack Cowart , 
the chief curator. He said this 
year's show had been put off 
partly so that his limited cur- 
atorial staff would have the 
time to plan it. 

The only tiling certain for 
now is that the 45th Biennial 
Exhibition of Contemporary 
American Painting, resched- 
uled for July 1998, will be a 
look back rather than a 


¥ ■ 


■ft 

• : £-r 

i; 


roundup of the contemporary 
an scene. Cowart said it would 
be devoted ro some of the 250 
poin tings — by such artists as 
Winslow Homer; Childe Has- 
sam, Mary Cassatt and Ed- 
ward Hopper — purchased by 
the museum from its various 
biennials since they began in 
1907. The purpose will be to 
assess the impact of these 
shows on the museum's 
American paintings collec- 
tion- “This will be a show 
about collection building,” 
Cowart said 


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Jenkins, who has done his background 
reading, intersperses his own quest to 
reach Timbuktu. Mali, by kayaking down 


the Niger River, with the ill-fated efforts 
of a series of 18th- and 19th-century 
European explorers to reach the same 
destination. Most of them died, some at 
the hands of fierceTuareg warriors, more 
of them from malaria or dysentery. 

When Major Gordon Laing, crippled 
and scarred from a Tuareg attack, en- 
tered the city in 1826. he did not let on 
that the fabled metropolis failed ro live 
up to expectations. Laing was beheaded 
north of Timbuktu at the beginning of his 
journey back to England. It wasn’t until 
three years later that the Frenchman 
Rene Cailiie arrived in the city and an- 
nounced to a disbelieving world that 
Timbuktu was a standard trading town 
in Central Africa, a poor collection 



' 'FzHm 

' .•V? » 

I'w: l»‘» j 

O- 


PICASSO MUSEUM 
ANTIBES 


A L’EEREUVE 
IDE LA LUMIERE 


FROM JUNE 28 TO 
| SEPTEMBER 30. 1997 

OPEN FROM 10 am to 6 pm 
_ JSXCEIT MONDAY ANT) 
BANKBonrMv 

* OK IN FORMATION : 
04-93 *Kl 54 20 


! 1 - 6 October 97 
Espace Eiffel Branly 
Paris. 

International Contemporary 
Art Fair 

Country of honour Switzerland 


Vr BIENNALE D E SCULPTURE 
DE MONTE-CARLO 

May 24 - October 31 1997 

an exhibition of 
monmneutal sculptures 
in the public gardens and 
the Monte-Carlo Casino... 
...-t0 artists shown 
Arman, Botcro , Chadwick , Colder, 
Indiana . Manztu Mirb... 

Annin - DISTILLATION IDEOliu.lQUT l*H~ 



Information : Mccrqpolc Palace Irfotcl 
Tel (377) 93.23.65.99 - Fax >33) -i.93.76A3.69 






PALM BEACH 

DU IS AU 20 JUUET 1997 
n union 


ANTIQUITIES 

Finest Classical, 

Egyptian, Near Eastern. 

Rb&i Gallery 

-by jppointmeru- 

Ziirichbergstr. 26 
CH-8032 Zurich 
Wl-I) 2520620 Fax 2520626 


To Place 
Your Ad in 
the Arts Section 

please eonlati 
your nearest IHT office, 
represents! t h e or 

Kiinberlv 

GUERRAND 

BETRANCOURT 

181. Avenue Cha rl e.*-U e-G a idle. 
^2521 NpiuUy Ufriex. France. 
Tel.; 133-1 i 41 43 94 76 
Fax: (33-li 41 43 93 70 


of mud buildings and no gold at all. 

In any case, Jenkins, an outdoorsman 
and traveler from Wyoming, had few 
illusions about Timbuktu. He and his 
friend, Mike Moe, decided in 1991 to be 
the first Westerners to explore the head- 
waters of the Niger in the mountains of 
Guinea and then to make their way by 
kayak to Timbuktu and beyond. 

They decided to do this even though 
both their wives were pregnant with their 
first children. Joined by two other Wyo- 
ming friends, a carpenter and a banker, 
they set off on an eventful and sobering 
journey .They did not have a very good 
time. Hundreds of miles from Timbuktu, 
the four divided up. two ro continue 
down the river. Jenkins to go on to 


Timbuktu overland by motorcycle, Moe 
to return to his wife back home. 

But the trip, as recounted by Jenkins, 
has an enjoyably picaresque quality as 
our voyagers meet various Africans en 
route, including people who show them 
remarkable kindness. •• 

The best feature of "To Timbuktu” 
consists of Jenkins' delight in the small 
and noi-so-small elements of the African 
spectacle, whichhe treats with distanced, 
unsentimental often aesthetic appreci- 
ation. "The men will be mute and rigid as 
animals.' ’ Jenkins writes of some people 
with river blindness be encounters along 
the banks of the Niger, men whose blind- 
ness was not the only mysterious thing 
about them. They have “rough dusty 


legs of muscle and bodies of muscle and 
inscrutable faces.” One of the men uses a 
stick to draw a circle in the sand with 
wavy lines inside of it. 

“When we ask them questions, they 
will not respond to us,” Jenkins con- 
tinues. “They will be blank. Human 
pillars supporting the weight of the Af- 
rican sky. Mike and I will go back to our : 

boats. Out on the river we will slide into f 
an eddy to wait for Rick and John and ’ £. 
wonder why the old man drew a picture >; 
in the sand that none of them could see. v- 

4 'But it was not drawn for them. It was. 
drawn for us.” A- 

, 

■ 

Richard Bernstein is on the staff of .af' 
The New York Times. ’ Ri' 1 


n 


Rent Fine Art 

World renowned artists, the most prestigious collections 
Classic, Impressionist, Modem & Contemporary 
Rent individual pieces or curated collections 

From only FF5.000 / month 

Cii// tor inform, Uhvt 

Art Premier. 5.A. 

Paris: (Vjl 44 05 98 71 London: <44)171-917-^06 
- Currentlv accepting consignments i>t art for rent 



THE HOUSE and CARDENS of CLAUDE M0NET-THE UU POND 

Open from Tuesday to Sunday 
from 10 am to o pm without Interruption untiil Oct 1i 
Closed every Monday except May 1 9 and fuly M 
FR5 (or complete visit - FF25 lor gardens 
FF20 for children 7-12. FT25 for adult groups 
Take west highway d ir Rouen, exit Bonnieres. Glvemy by Vemon IEUREJ 


+ 33 (O) 2 52 bl 


AUCTIONS 


AUCTION AUGUST 6 AX 7 PJVL 

EUROPEAN AND AMERICAN ART 

Every artist listed here is represented by a significant work in 
good condition, consigned by a private collector, family, or es- 
tates. Authorship is unconditionally guaranteed. We have been 
a primary source for dealers and collectors in America for 25 
years; and we should, cam, and would like to be for you as well. 



A-ftrinJ UVTxSl- C. Court* 1 W « 13“ W B. Hta ZHjr « XT 


The fine and colorful Pasinri was consigned by a Massachu- 
setts family. The sparkling Courbet descended in the family of 
Zero Mostd, the American stage and screen star, who spent 
summers in Maine where we are located. The Flint came to us 
with an outstanding history from a family in Italy. Also, weak 
by Arinin, Bompard, Cox, Ddort DeN«iville,A. Hulk. Maes/ 
CoL C Nielsen, Raadsig, Rlchet, Schreyer, T. Webster, T. Will- 
iams, and important American artists including Bellows, 
Bricher, J. C. Brown, S. R. Gifford, Craves, Roesen, and Stamos. 


Previews 

Tbesday, August 5 5 pm-8 pm 
YfediMsdajs Angus! 6 9 m -6 pm 
Hobday Inn By the Bay 
SS Spring Street, 

Portland, Maine 
Catalogues; 

525 <J5D outside U&AJ, 

postage handling, & 
price key included 


BARRIDOFF 

GALLERIES 

P. O. Box 9715 
Portland, Maine 04104 
Td: 207 772 5011 
Fax: 207 772 5049 
E-Mail; bgtfgwf jiot 
h((p7/www.gwi nei/barhdoff 


Challenging post with exceptional prospects for 

ART DEALER / SALES EXECUTIVE 

Europe based, able to structure and implement a marketing and sales policy 
lor a major coBectton at comrrwrdaBy priced works of art 1890-1980. 
Reply with CM. in strict confidence to: 

Mrs. Stoker, Pro Arte, P.O. Box 125, CH-1213 Onex- Geneva 


AUCTIONS 


MAlTRE MARC-ARTHUR KOHN §H 

CANNES - FRANCE au WIIW 


6 DAY5 OF EXCEPTIONAL AUCTIONS 

I THURSDAY. AUGUST 7. at 7.30 p.m. 

OLD MASTERS AND XIX* CENTURY PAINTINGS 

I FRIDAY. AUGUST 8. at 730 p.m. 

MODERN AND CONTEMPORARY PAINTINGS, 
SCULPTURES 

I SATURDAY. AUGUST9. ar 7.30 p.m. 

JEWELLERY -WATCHES 

I SUNDAY. MONDAY AUGUST 10. 1 1. at 7.30 p.m. 

OBJETS D'ART AND FURNITURE - CARPETS 

Disposal of a very exceptional foreign collection of about 400 lots with 
a theme of ceramics and Japanese and Chinese lacquers in furniture 
and the decoradve arts : XVK XVII*. XVlll' n . XIX * Centuries. 

I TUESDAY. AUGUST 1 2. at 7.30 p.m. 

ART NOUVEAU, ART DECO 

Exhibition opens August 5. ar 9a.m. Casino du Palm Beach -06400 CANNE5 

INFORMATION AND CATALOGUE : 33 I 42 46 46 08 


Till AIM him ; 

BROCHURE 

To receive a FREE COPY of this 
compilation of galleries, auction houses, 
antique dealers, museums 
and art fairs around the icorld, 

please urite to: 

Enza LUCIFERO 

biTERiYVnOJVAL 
Herald Tribune, 

181. av. Cha rles-d e-Gaulle. 92521 Neuillv Cedex 

rraiu-e 






Telp 

FaxF 


















ower 


-°gg° embraces so m . 

,d»ere s no wav rh* c t ' ariv 

Kmciadethefu i ^ 

^because of r h 1 ^,; 

>*Iected, in man Ca > 

* n< Purpose ; 

Nfcmn nw,„ii . eu '‘i ». 


the wooded"' I 

t»mcSgureofan f ri ln? : 

dv it recnlvae • i 


HUR KOHN *< 

LANCE 


p.m. 

1 CENTURY 


INTERNATIONAL HERALD TRIBUNE 
SATURD.^i- SUNDAY, JULY 12-13, 1997 

PAGE 9 


dy it resolves injo^/ ' 
**- of exiraor.iinarj ^ 
*s are present ji ! 

“*■£_ circumcision ,^ ; 

a Nkanu boy's ir-.n re ! 

y are supposed to 

d, as this fig Uri =. v ! 

exemphn,, 1 "" 1 ' 1 

:PPOSedt ° 

sxploration of C. . riL .„ ll(l : 
m geographical order if 1 
^ K WhUethe "'«nm ! 
fleets may remains mV i 
teO'isunquestionahk- 1 

continues throuahO, i i., i 

fusenrn of African An , ! 
3 Fort Worth. T^J ■ « “ • 
^SLU>uis.M^i 
Idorf and Barcelnnj ! 


iraised 


jundup of the conkmn.^ 
T scene. Cow an &.Mii ji 
2 devoted to some «»i a* 
untings — by Mkh anw-, a 
/ins low Homer. Cintdr Ha- 
im. Man- Ca.,ijTi Ej. 

ard Hopper — pur: havodh; 

^ museum fro m it; \j,| (iu ; 
iennials since ihe\ heo^n ir 
X17. The puipi -c 
isess the inip.it.’ • >; ( h-. v 
lows on the niU'eum . 
merican painuna- u.lia 
on. "This -.mJJ n t - j ,fc, w 
30Ut collection huiUini 
owan said. 


•leand bodio <->! niiwlc-.Lv: 
aces. " One ot ilir men u*>r%. 
x a circle in the -..m-.l viib 
nside of it. 

.e ask them Hi«cs->-ri- me- 
pond to U'.“ -lenf in- c««n 
iey will be t-’jiik. Hum 
jrting the v.?;zhi rrw Al- 
ike and I wil> b.> ".i-.Utw 
n the river we v.sil -ii«lc m* • 
vait for Rick and J-'hn jcc 
the Old man Jrv. j pusc.r 
hat none of them - ■ *u td 
is not draw n for -hem !i 


Bernstein /« a !lu 'W ■ .l 
r £ Times. I 


eptional prospects lor 

.es executive 

jrnen: 2 V'.'^V 

pnccl ?k? m r ■ ’ • ‘ 
ci confidence £ . . 
25. CH-1213 


i collection of 



Risk Is Rising in Old Masters Game 


"Large Horse Head," 1943, by Georges Braque, in the Maeght Foundation show. 

Summer and Sculpture 
Along the Cote d'Azur 


By Michael Gibson 

liirrrnjriL'iuji Hei./iJ Tnbtwr 

N ICE — The Cote d'Azur is having a 
flurry of exhibitions this summer, 
the major one being the Maeght 
Foundation's handsome 220-item 
show devoted to sculptures by painters, while 
an alliance of 28 medium-size and small local 
museums was formed to .deal with a single 
theme: “La Core d’Azur et la Modemite — 
1918-1958.” 

At firsi glance this could seem a splendid 
idea considering the number of prominent 
modem artists who thrived under the 
Provencal sun for months or years on end: 
Picasso and Matisse, Bonnard and Dufy, 
Chagall and Soutine and many others. And 
there are indeed some delightful works to be 
seen as one wanders horn town to town along 
narrow, winding roads. 

Yet somehow, the concept fails to jell. 
There is an excellent reason for this: the Cote 
d’Azur never claimed to be a center of culture. 
Il was rather a place people went to get aw av: 
away from military occupation during the war 
years or just away from the crowd, to work 
undisturbed. 

It remains that the Picasso Museum in Antibes, 
for instance, has assembled some wonderful, sun- 
drenched works by Bonnard, some monstrous 
alien idols by Graham Sutherland and, in one 
room, has brought together paintings done in the 
neighboring town of Cagnes by two utterly con- 
trasting talents: the cod, sunny Felix ValJonon 
and the tormented and prophetic Chaim 
Soutine. 

At the Vence museum, paintings and draw- 
ings by Chagall, Matisse and Dubuffet are 
currently being shown in the company of 
some surprising works by such artists as 
Ozenda and Francis Palanc. Palanc, bom in 
1928, was the son of a local baker who would 
not allow him to become an artist. Com- 
manded to follow in his father’s footsteps. 
Palanc obeyed, in deep distress, but the egg- 
shells he broke every day to make pastry 
became his medium. He ground them up and 
colored them to produce the strong and 
poignant abstractions displayed in Vence. 
Then, in 1960, after a spiritual crisis, he des- 


troyed a number of his works, gave up paint- 
ing and took a job as a night watchman. He 
still lives m the area and attended ihe opening 
of the Vence exhibition at the end of June. 

The Cheret Museum in Nice is presenting a 
selection of works by Dufy that demonstrate, 
among other things, his excellence in design- 
ing patterns for fabric and in decorating 
ceramic ware. 

The Fernand Leger Museum in Biot has put 
together a modest but touching little exhib- 
ition devoted to the wartime years when Hans 
and Sophie Arp, Sonia Delaunay, Pavel Man- 
souroff and others tried to keep working while 
worlds crumbled. 

The Matisse Museum and the Musee d’Art 
Moderae et d’Art Contemporain in Nice are 
also pan of the circuit. The latter displays 
works by Klee, Duchamp and Picabia, but 
also touches upon the nucleus of the so-called 
Nouveaux Realistes group (Klein, Arman, 
etc.). 

AJ1 this should suffice for a pleasant sum- 
mer visit, since even the lesser museums have 
the advantage of being installed in large, 
handsome houses that one can enjoy strolling 
through on a hot summer afternoon. 

The Maeght exhibition is another kettle of 
fish. Admirably put together by the curator 
Jean-Louis Prat, it presents the great palmer- 
sculptors of the 19th centujy (Degas, Daumi- 
er. Gauguin), the inevitable figures of mod- 
ernity (some marvelously playful sculptures 
by Picasso, some incredibly heavy ones by the 
aerial Matisse), the staples of the foundation 
(Miro and Giacometti), but also many less 
familiar works (Derain, Ubac. Faurrier). 


/ntemaruinj/ Herald Tribune 

L ONDON — The tur- 
moil is growing on 
the art market. As the 
scramble for the up- 
permost layer of what is de- 
sirable inrensi/ies. leading to 
sales records, the excitement 
increases, as do the risks for 
the new buyers who bring in 
huge amounts of cash. 

The latest tidal wave has hit 
Old Masters: the one Beld in 
which important works, long 
forgotten, still creep out of the 

SOUREN MELIKIAN 

woodwork, giving it the stim- 
ulus of novelty. The effect 
was spectacular ar Sotheby's 
on July 3. 

Even the best-trained art 
lovers do not have visual 
memories that go as far back 
as 1953, the year Gerard ter 
Borch’s "The Music Les- 
son” last appeared in public, 
at the Royal Academy of Arts. 
Sold from the estate of an heir 
to the Enrico Fanorini col- 
lection formed in the 1930s 
and 1 940s. it seemed to spring 
out of another age. The scene, 
which captures a privileged 
moment of quiet beauty, 
tripled the high estimate, and 
fetched a record £2.75 million 
($4.55 million). 

But novelty only works to a 
maximum in conjuncfion 
with ocher factors. New- 
comers may have wondered 
why Jan van der Heyden's 
view of the Duesseldorf 
church of Sl Andreas in the 
distance did not enjoy a sim- 
ilar triumph. This too came 
from the Fattorini collection. 
With its beautiful mellow 
sunlight, it exudes much the 
same feeling of magic peace. 
Signed and dated 1666. it 
seemed bound to go through 
the roof. 

I N the event, it was ex- 
pensive. but not madly 
so. One reason is that 
while the picture is full 
of evocative atmosphere, the 
characters painted in by Ad- 
riaen van de Velde have little 
relevance to it and it is usually 


W HENEVER possible, paintings 
by these artists are set in coun- 
terpoint beside their sculptures, 
some of them (as with Matisse), 
illustrating the same subject, others reflecting 
the same mood or style. The point convin- 
cingly made by the exhibition is that painters 
who took to painting in this period did so 
without the rather heavy load of academic 
convention professional sculptors were heir 
to, thus opening new avenues in this most 
ancieut of ail artistic disciplines. 

Ail the exhibitions run to mid-October. 


tween two of the world 's fore- 
most connoisseur dealers in I 
the field, Robert Noortman of 1 
London and Maastricht, who 
won, and Johnny Van Haef- 
ten of London, ended up at 
£661.500. 

Within minutes, it was the 
turn of a Frans Hals to make 
the point that the human face 
and its emotions are what 
drives buyers crazy. Had it 
been the ' work of another 
painter, the image of "Sl 


PAPER CHASE, By Fred Piscop 


ACROSS 
I Cutaneous 
7 Rock group that 
sang ‘Let’s Go" 

14 Splendid 

*19 Conductor 
Toscanini 

.20 Like some shoes 

21 Grammy- 
winningshjgte . 
of 1958 

22 Groundskeeper’s 
bagful at an 
Atlantic City 
newspaper? 

24 Armpit 

25 Companion 

28 Oregon 

27 Playboy Khan 

28 Library ref. 

29 Where ‘FalstafT 
premiered, 1893 

52 Start of a string 
ofISPopes 

34 Di&h alternative, 
maybe 

-38 Loudness • 
measure 

37 Musician who 
co-starred in 
“Trespass' 


38 Descartes 
conclusion 

39 Horse owned by 
a Boston 
newspaper? 

42 Hired hands at 
Microsoft 

44 Sponsorship 

48 Camera since 
1924 

47 Bank sitters 

49 Some picture 
frames 

52 Used rubber 

56 Garden, in a way 

57 Correspondence 
to die editor of 
an Allentown 
newspaper? 

60 Allan 

61 Obviously 
sleep-deprived 

63 End of a Bums 
title 

64 Prepare foget 
juice 

65 Madonna's ‘La 
Bonita" 

67 Kind of law 

69 Yeshiva product 

7) Off. so to speak 

72 Drink whh 
67-Across 


Tel Paris +33(0)142683560 
ftx Pate +33(0)1 42 66 35 61 


74 Concert 
memento 

76 Like a clover leaf 

78 Take over, in a 
way 

78 Columbia, S.C.. 
newspaper’s 
security 
department? 

8) Vane dir. 

84 Like a mule 

86 Mars.ro Aries, 
in astrology 

87 Ingredient tn a 
72-Acmss 

89 Thunderstruck 

91 facio 

83 Like 

Chippendale 

furniture 

94 Way into the 
bathroom at a 
Macon 
newspaper? 

99 Stan to 
function? 

101 Snake oil, 
purponediy 

102 Hungary was a 
member of h 

103 Suffix with sect 

104 Named before 

106 Do some 
roadwork 

107 Automobile 
sticker fig. 

108 Jack-in-the-box 
pan 

109 LQ. 
recordholder 

Marilyn 

Savant 

111 Prize 

113 Associated 

115 Shell shot at a 
Harrisburg 
newspaper? 

120 Come 

121 Nobei physicisi 
Becquerel 

122 Frank 

123 Rather awkward 

124 Mouihingoff . 

more 

125 Crackers 
DOWN 

1 Skip, as a stone 
on water 

2 Muff 

3 Hwy. 

4 Sweet wine 

5 Some insurance 
fraud 

$ Tay, 

Scotland 

7 Panofanold 
Greek fleet 

8 In the know 

about 

9 Subject of a 
psych, 
experiment 

10' Do 

11 Permanent- 
magnet alloy 

12 Seize again 

13 60's campus grp. 

14 Popular theater 
name 


» * J ' * 


it it is (w lit in lo 


“ Hu 


lit IK 1 17 111 


17B 


i no i«i 


© New York Times/ Edited by Will Shorts. 


15 Bulldog 

16 Big goon 

17 SO’s-OTs 
-What’s My 
Line?" panelist 

18 Begmningofa 
tape 

21 Harper, for one 

23 “Come Back. 
Utile Sheba" 
wife 

27 Edits 

29 Book before 
Nahum _ 

30 Likeness: Prefix 

31 Come-onata 
Lakeland 
newspaper? 

33 ‘•Enough!” 

35 Handsome, as 
Henri 

36 Carmichael 
classic 

38 Sharon, forone 

40 Anorney-to-be’s 
exams 

41 Inl»5e.B 

43 Sbippmgdept. 
stamp 

45 Pupil's reward 

48 Roy Rogers's 
real surname 

50 A great dial. 

51 ‘...and last in 
the American 
League” team 


53 Recruiter at a 
Wichita 
newspaper? 

54 Inter — 

55 Say it ain't so 

58 squares 

(Statistical 

method) 

59 Malcontent 
62 They’re hill of 

beans 

64 A bobby pin may 

hold it 

65 “Look at me, 

66 Start of some 
Italian church 
names 

68 Tutsi foe 
70 ■ — a-brac 
73 Cutting down 
75 Misrepresent 

77 Eddie 
Rldten backer's 

94th 

Squadron 

78 Alaska airbase 
80-GreaiFireof 

Tendon diarist 

82 Pelvic bones 

83 Tempter 
85 Acting Day 
88 Geisvia 

computer 
90 Prefix with 

1 -Across 


92 Name dropper? 

94 Gong in an 
orchestra set 

95 Runout 

96 Hybrid cats 

97 Humidor item 

88 Fife player 

100 'As You Like it" 
servant 

105 Inuruson 

106 'Jurassic Park’ 
mosquito 
preserver 


108 Rorrian historian 
110 Some B’way 
shows 

112 Bird whose male 
hatches the eggs 

114 Bad-mouth 

115 Sl age set ups. for 

short 

116 'Su|>erni&n 

H7 — bind 

1 18 Baseball's 
Dyksira 

119 Before, ome 


Solution to Puzzle of July 5-6 


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JL1LI ULHJLJ LiUbU LttJUULiUU 
12QUUIJ UUULj ODOO 

□uuiuiu onau duuij ude 
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L1ULIL1U ULJUiLJ EDU bUUULJ 
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□□L41IQOO units LiUUO UDU 
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uuijijli uuuuBuautiniLiLiDEE 
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□□□□□ auiuamnEiUQOE deeu 
□LilSUfcl QaULlD 13DDC CODE 
U1.1L4L3U OlinOEJ LIU HE EBtuE 

aaciaa puciau eqou edge 


John" might have suffered 
from being a religious icon. 
But this, in effect, is a power- 
ful portrait. It is also a sen- 
sational discovert’, unrepro- 
duced until last week. .As 
Sotheby’s expert demon- 
strates, this is the missing 
Evangelist from a set of four 
bought by Catherine the 
Great in 1760 and kept at the 
Hermitage until 1812 when 
the paintings were sent to 
Crimean churches. 

Two of the Evangelists 
were found in 1959 in the 
storeroom of an Odessa mu- 
seum by a scholar. Irene Lin- 
nik. who identified them 
through the early Hermitage 
inventor)' numbers. A third 
painting was recognized as a 
Hals by an Italian dealer who 
boughf it as a Luca Giordano 
at a Milan auction in i 955 and 
was later identified as belong- 
ing to the set. 

The size and traces of an 
inventory number clinch rhe 
matter concerning Sotheby's 
“St. John." Unframed, flak- 
ing along the edges, as if it 
had just popped out of an attic 
in Eastern Europe, it adds one 
more Hals to the artist’s cor- 
pus. Two U.S. dealers battled 
furiously to get it. Martin Zt- 
met of French & Company 
conceding defeat at £1.96 
million to an opponent who is 
ofren entrusted by the J. Paul 
Getty with its bidding. Mu- 
seums too have a weak spot 
for revelations. 

How crucial the discovery 
factor has become in the cur- 
rent phase of feverish search 
for major art new to the.mar- 
ket was shown when an an- 
onymous “Crucifixion” of 
the 1 390s came up. Illustrated 
only once in 1994. in the Ger- 
man journal Pantheon, where 
Paul Pieper gave his reasons 
for considering the panel to 
have been painted in England, 
its provenance makes it a rar- 
ity. Clumsily done, “The 
Crucifixion" climbed to a 
phenomenal £1 .54 million — 
four times Sotheby's high es- 
timate. 

The same reaction of sur- 

E rise helped the late (and 
eautiful) portrait of a dig- 
nitary by Titian, never ex- 
hibited dot seen 3t auction 




winter scene, did not make il 
What buyers want from the 
master is seascapes with 
beautiful light reflections. 
Had the estimate of £500,000 
to £750,000 been lower by 
half, it might have had a 
chance. 

Given current price levels 
dealers, who are very active, 
cannot afford to “buy against 
the market.’’ They target ex- 
pensive pictures only if these 
capture the essence of a roas- 
ter's work. An interior scene 
by Pieter de Hooch was thus 
bought for £716,500 by 
Noortman, outbidding Van 
Haeften. 


T HEY give up more 
easily on the rare and 
beautiful that is not 
mainstream. The 
great Gaspar van Winel. ali- 
as Varivitelii, is not nearly as 
much sought after as 
Canaletto. His “Port of the 
Ripa Grande.’’ dated 1690. 
which came up on July 5. is a 
fantastic landscape with a su- 
perb provenance, an old 
French aristocratic collec- 
tion from Montpellier. 
Richard Knight bid on h. fol- 
lowed by Richard Green, 
who in turn let go. At 
£617,500 the Vanvitelli is a 
rich man’s coup. 

Fortunately, dealers and 
nonmillionaire collectors can 
still resort to their eye. In 
Christie’s afternoon session, 
a copper panel depicting 
“Boors Smoking in a Tav- 
ern” was merely “attributed 
to Adriaen Brouwer." The 
coded salesroom language 
translates as ‘ ‘might be by the 
artist, if you are lucky." The 
catalogue added ambigu- 
ously: "Signed (?) with ini- 
tials ‘A.B.’ (on the edgeof the 
bench)." 

After the sale, the collector 
George Abrams of Bosron, 
greatly admired for his know- 
ledge of 17th-century Dutch 
an. called on his crony Van 
Haeften to ask what he 
thought of that oil on copper. 

* ‘I am sure it is by Brouwer," 
Abrams said, looking agit- 
ated. “Me too," Van Haeften 
replied. And opening a draw- 
er, the dealer showed him the 
Brouwer. 





til 


'The Music Lesson. " bv Gerard ter Borch. 


before, to soar to £1.2 mil- 
lion. Sotheby's, possibly 
worried that its Titianhood. 
accepted decades ago. had 
been ignored in recent pub- 
lications. estimated it to be 
wonh £ 1 00.000 to £ 1 50.000. 
Zimet, untrammeled by 
angst, got the Titian and 
looked jubilant. 


B UT such enthusiasm 
was far from con- 
stant. Canaletto is a 
great name and 
“Punta ~ della Dogana." 
signed and dated 1744. is a 
beautiful landscape. Add the 
provenance — the J. Paul 
Getty Museum, which ex- 
changed it in 1991 for another 
painting — and triumph 
seemed assured. Instead it 
was bought in. The atten- 
dance may have reasoned that 
if the Getty parted with it, the 
Canaletto was not that much 
of a museum piece. 

Eventually, 30 percent of 
the pictures remained unsold. 
Two days later at Christie’s 
success likewise alternated 
with failure — 35 percenr of 


the paintings did not sell. Fine 
works never got off the 
ground. 

Jacob van Ruisdael's early 
Scandinavian view, sold for 
£25.400 in 1979, failed to go 
at £42,000. Philips Wouwer- 
man’s scene, which had 
brought £60.500 in 1987 -at 
Sotheby’s, went nowhere this 
time, its reasonable estimate 
(£100,000 to £150.000) not- 
withstanding. 

The reason? Pictures of 
that caliber can be obtained 
and there are few collectors in 
the middle strata. To inspire 
bidders, pictures must sur- 
prise with their rarity, their 
novelty — and yet fir the per- 
fect image of the artist’s 
oeuvre. 

Two lots later, Aerr van der 
Naer's winter landscape met 
the first requirement Ex- 
tremely rare in that size and 
condition, with just the right 
nuance of pink over its ho- 
rizon in a well-balanced com- 
position. it became the 
world’s most expensive van 
der Naer at £2.3 million. 

But Jan van de Cappelle’s 




Designers. 







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SATURDAY-SUNDAi; JULY 12-13. 1997 

.PAGE 11 


mmnr n 



• • W-*« •*• 


M, 


. . . • ■>*.. ^V.,:v.it': 


France Cancels Sale 
Of Thomson-CSF 

Industry’s Restructure Is in Doubt 


i£$t 




r»> iTTil rfi 



By Barry James 

Itatm-iumul Herald Tribune 


Sf#©!? V' • ' 









PARIS — France’s Socialist gov- 
ernment said Friday night it would halt 


plans to sell off its majority stake in 
Thomson-CSF, Europe’s leading de- 


llokb *uoUMn»ATH. Vi Virktm 


An artist's drawing, left, showing what the virtual reality phone book will look like on a computer screen. 
Risto Linturi is behind the project* which he says “will create 100,000 private television stations in the city.” 


>3 



Creating a Hyperlink for Helsinki 

Project Plans to Turn Wired Capital Completely Interactive 


By Youssef M. Ibrahim 

Nn- Yurt Times Service 






HELSINKI — Finland's heavily 
wired capital is busily turning itself 
into a sort of giant Web site. 

Your personal computer will take 
you to your banker or tax collector 
during working hours for an argument 
over bills, interactive cameras hanging 
on trees or buildings will let you check 
which speakers are protesting and 
which musicians are playing in die 
central square on Sunday morning. 
You can drop in on any number of 
concerts, plays, casinos or simply 
friends for an afternoon chat — allin 
real time. 

Helsinki Arena 2000, which- is 
scheduled to begin service in less than 
three years, is an interactive guide to 
the entire city, with its streets, shops. 


company chief executives and the 
dreamers who put the project together 
are confident that Helsinki Arena 2000 
will give die 1 million residents of the 
Finnish capital a new concept of bring- 


ing people together, 
"whai we are mi 


“what we are making is a 3-D in- 
terface that will create 100,000 private 
television stations in the city, uniting 
people through a combination of the 
telephone, the computer and the In- 
ternet,” said Risto Linturi, a computer 
engineer who is technology director of 


Helsinki Telephone Co. Tlie company 
is financing the project. That such an 


is financing the project. That such an 
avant-garde project should first appear 
in Helsinki is not surprising. 


Finland has the highest per-capita 
•e of the Internet and mobile phones 


government offices, companies and 
landmarks meticulously reproduced 


landmarks meticulously reproduced 
and connected, interactively and au- 
diovisuaUy, by way of the Internet. 
City telecommunications engineers. 


use of the Internet and mobile phones 
in the world: it is estimated that more 
than 60 percent of the country's 5 
million people are linked to the In- 
ternet 

Mr. Linturi, who works with a large 
team of researchers and technicians, 
sees only imagination as a limit to 
commercial and service applications. 


“You can check out what is hap- 
pening on Main Street, or click a uni- 
versity and pick a lecture to attend in 
real time," he said. "Everyone who 
places a tiny camera, a cheap device 
that is already common, on their per- 
sonal computer — from your banker to 
your barber — can be "accessible by 
video and sound in real rime." 

The click of a mouse button would 
produce the telephone numbers of all 
of a building's tenants, except those 
who are unlisted. 

There would be instant phone or 
video access to theaters and restaur- 
ants. 

From a wallet icon, a computer user 
would be able to pay and be ushered 
into a play in progress. 

The fire department or the police 
would be able to identify instantly the 
building, street and home number from 
which a distress call was coming. Fire 
officials, at the touch of a button, could 
call everyone in the immediate vicinity 


See WEB, Page 15 


Thomson-CSF, Europe’s leading de- 
fense electronics company, casting 
doubts on projects to restructure the 
European defense industry to meet in- 
tensifying American competition. 

Bui Prune Minister Lionel Jospin in- 
sisted that in preparing the company's 
future, the government would rake into 
account "the prospect of mergers aimed 
at strengthening the defense industry in 
Europe." 

The privatization of Thomson-CSF 
had been set by the previous conser- 
vative government of Prime Minister 
Alain Juppe. 

The prospect of privatization had 
seemed likelv to touch off a major re- 
alignment of the European defense in- 
dustry, with rival bids from the missile- 
making conglomerate, Lagardere SA, 
and the engineering concern, Alcatel 
Aisthom SA, in an alliance with the 
state-owned plane-maker Aerospatiale. 

The vast restructuring of the U.S. 
aerospace industry — with proposed 
mergers between Boeing Co. and Mc- 
Donnell Douglas Corp. and between 
Lockheed Martin Corp. and Northrop 
Grumman Corp. — has forced Euro- 
peans to consider a Continent-wide 
makeover of their own. 

Thomson-CSF's chief executive, 
Marcel Roulet. warned in the National 
Assembly earlier this week that the 
company would be in jeopardy if it 
remained in state hands and stood aloof 
from the wave of consolidation hap- 
pening or about to happen in Europe. 

Mr. Roulet said Thomson-CSF must 
be able to participate in the restructuring 
for the benefit of France's defense in- 
dustry as a whole. 

The government’s refusal to sell the 
company raises the same questions as 
those surrounding Aerospatiale in its 
relationship with its German, British 
and Spanish partners in the Airbus In- 
dustrie consortium: How can a state- 
owned orstate-controUed company, not 
fully exposed to market farces, join 
European conglomerates dominated by 


private entities? And how can state- 
owned companies form global partner- 
ships with privatized industries in the 
United States and elsewhere? 

In its communique Friday night after 
the French financial markets closed, the 
government did not answer those ques- 
tions. 

It said it sought an industrial solution 
- for the company aimed at creating "a 
French professional electronics and de- 
fense sector endowed with a decisive 
public capital structure." 

It said it had decided to end the pri- 
vatization process because this failed to 
"preserve the interest of the state, the 
company and its employees." 

The statement said that in creating a 
"professional and defense electronics 
pillar with a determining public share- 
holding,” the government would ensure 
that Thomson would be among the "al- 
liances destined to reinforce the Euro- 
pean defense industry." 

It added that guidelines for the Thom- 
son restructuring would be implemen- 
ted in the next few weeks. 

Last year, the government canceled 
the sale of Thomson SA, the parent 
company of Thomson-CSF, to 
Lagardere because of protest over 
Lagardere "s plans to sell Thomson's 
consumer-electronics subsidiary. 
Thomson Multimedia, to Daewoo Elec- 
tronic Co. of South Korea. 


German Cabinet 
Approves Budgets 


The government in Bonn ap- 
proved Finance Minister Tbeo 
Waigel’s draft supplementary 
budget for 1997 and the 1998 
budget, both designed to help Ger- 
many meet the fiscal criteria for 


Europe's planned single currency. 
The supplementary budget for 


The supplementary budget for 
this year raises the projected def- 
icit, but the government has said the 


figures will still be low enough to 
allow Germany to qualify for 
Europe’s planned economic and 
monetary union in 1999. Page 13. 



U.S. Finds Modest NAFTA Benefits 


By Richard W. Stevenson 

Afar Yorl Times Sen-ice 


WASHINGTON — Four years after 
a divisive debate over how a free-trade 
pact with Mexico and Canada would 
affect U.S. workers, the Clinton ad- 
ministration told Congress on Friday 
dial the North American Free Trade 
Agreement has so far generated modest 
benefits for the United States. 

The report provides ammunition to 
supporters and to critics of the trade 


gulfed Mexico in 1995 and turned a 
small U.S. trade suiplus with the coun- 
try into a deficit mat reached $17.5 
billion last year. 

The pact also increased U.S. exports 


to Canada during the past three years, 
the report said, although the trade deficit 


supporters and to critics or me trade 
pact, and is unlikely to defuse the com- 
ing debate over the administration's 
plan to extend free trade throughout the 
hemisphere. 

"The facts point to only one con- 
clusion: NAFTA hasn't measured up," 
said Representative Richard Gephardt 
of Missouri, the Democratic leader in 
the House and one of the most insistent 
critics of the agreement. 

“Before we proceed with further 
trade negotiations," he said, “we need 
to ensure that trade results in real pro- 
gress for the broadest cross-section of 
people." 

The administration report, the While 
House’s first formal assessment of the 
trade agreement' since it went into effect 
in January 1994, said exporters in such 
industries as textiles,- transportation 
equipment and electronics had bene- 
fited from the reduction in Mexican 
tariffs ami that the direct benefits to the 
U.S. economy would mount over time. 

The report said that the pact stim- 
ulated greater exports to Mexico, de- 
spite the deep financial crisis that en- 


the report said, although the trade deficit 
with Canada doubled from 1993 to 
1996, to $21.7 billion, because of a 
surge of imports from that country. 

But the administration, which fought 
hard for approval of the pact despite 
strong opposition from labor unions, 
environmentalists and other Democrat- 
ic constituencies, found only sketchy 
evidence that the agreement had helped 
American workers. 

The administration said studies it 
commissioned suggested that 90,000 to 
160,000 American jobs retied on in- 
creased exports to Mexico that have 
come because of the pact. 

The report did not provide — or even 
try to provide — a precise accounting of 
how many American jobs might have 
been lost as companies moved man- 
ufacturing to Mexico to take advantage 
of lower wages there. 

Officials said there were largely un- 
solvable problems in generating an ac- 
curate estimate of job losses. 

But the report said the number of 
people whose jobs were lost to Canada 
or Mexico was probably between 

32.000, the number of those who ap- 
plied for unemployment and retraining 
benefits under government programs 
for workers displaced by changing trade 
patterns with those countries and nearly 

100.000, those who were certified by 


the government as eligible for those 
programs, which often cover workers 
not directly affected by NAFTA. 

While the administration reiterated its 
long-held position that export-oriented 
jobs paid better than the national average 
for production workers, the report did 
not directly address whether the new 
jobs were better paying than those lost as 
companies shifted employment to take 
advantage of the new trade rules. 

The trade agreement "has made a 
modest positive contribution to the U.S. 
economy in terms of net exports, gross 
domestic product, employment and in- 
vestment," said the report, which the 
administration is required to submit to 
Congress. 

While upbeat about the long-term 


Vaw ^oqh 


La Moisson en Provence , 1888 


outlook for the trade pact, the admin- 
istration report largely avoided the 


istration report largely avoided the 
kinds of sweeping claims made on its 
behalf in 1993 when President Bill Clin- 
ton rallied support over the intense op- 
position of critics who contended that 
free trade with Mexico would send jobs 
streaming south of the border. Support- 
ers argued at the rime that the agreement 
would create hundreds of thousands of 
jobs even after accounting for jobs lost; 
critics said the effect would be precisely 
the reverse. 

The administration's conclusions are 
largely in line with those of the last 
major study of NAFTA, issued last year 
by researchers at the University of Cali- 
fornia at Los Angeles. Thar study found 
that the trade pact's effect on employ- 
ment in the United States was probably 
a “moderately positive number." 




CURRENCY & INTEREST RATES 


Cross Rates 


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F£ Un 1A 


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19415 

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U953 

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83072 77*3 581928 


July 11 

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Llbid-Libor Rates 


Swiss Frencli 

Otter D-Moric Franc Staffing -Franc Y*n ecu 

] -month SiVt-SV* 3-3* ltt-ltt • «t 3*k ■ 3YW W-Vta 4rt-4Yn 
3- month SM-5M 3-31* lV«.l«t* Art*-? 3M-3te fe-tta 4W-4te 

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Haros appOaiUe m Interbank deposits of SI mftikin (oseqvfraleiif). 


Sold at Sothebys for £8.8 million in June, 1997 


Key Money Rates 


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at 4 Pm. and Ttxunta rate 3 PM. 

a To Irby one pound- &. To bttf one detior, •VnBsotiOGN.Qj not mated; «A;/firfowrttWa. 


Other Dollar Values 


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Curacy P*rS Curacy 

AqMlNM 059BA Gmkdrac. 

AntnAmS 1.3459 HongKongS 

Andrian sdi. 11383 Haag-farial 

Bnoflreo! 1.0792 Imtatnpcc 

Chinese yuan 33213 lnda.nipMr : 

Cuch koruna 3337 ItWtC 

Danbhkmw 4J05 kraofisMu 

Egypt. pMfld 3-3938 Knrbw 

Fn. markka 53285 Matay.rfiB- 


Ounency 

Mapng 

NLZMtaflCS 
Non*, krone 
PhilptM 
Poflsb Italy 
Port, escudo 
Russ ruble - 
Sawfiriyal 
5 * 19.8 


Curacy 
S.Afr.nnd 
5.Ker.mn 
SwwUnnn 
Taiwan S 
Thai buhl 
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UAE datum 
Vtoa.be*. 


UuHeCSIum ao>* 

Discount rata £40 

Prime rata 8Vj 

Federal huts svt 

flHktyCDtdMfcn Ml 

IBfrdty CP dealers 550 

3 month Treasury MB SA) 

1 - year Treasury UB 533 

2- yeor Trenswy M 547 

5- jot Treasury note 4.13 

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34-year Treasury bond 6JZ2 

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Pound Starting 14959 14M1 14974 Japanese yvn 

CaiKH&BH defer 1-3AA4 1.3438 1-3615 Swiss fire* 

Deutsche mill 1.7568. 1.7530 1.7493 


*t-dny (May ta-duy 

113.23 112J4 112JM 

144 96 14444 1.4393 


Sown*- INC Bank (Amstentomi: inOosuu Bank (BrvsscKji Banco CrnmnenMo Uahma 
(Milan); Basque no France tPmsii Bank of Tomn-fAlKvObtn (Tokyo)/ 


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A World 
Auction Record 
. for a Work 
on Paper by 
the Artist 


Lyncls. Ban* of To*jro-«tfsuAtsAfr 
Ourunnrbent, CndK Lyomdt. 


AM. PJM. CITgo 


Zurich HA. 319 JO +0.90 

London 33060 31 9 JO -030 

Mew York 320.70 32122 tl.42 

US. tSaHars per ounce. London ofBdol 


SOTHEBYS 


mu) dosing fsbees Hew York ctsmex 
(Aug) 

5oumr. Ream 












EVTERNATIONAL HERALD TRIBUNE, SATURDAY-SUIYDAY, JULY 12-13, 1997 


THE AMERICAS 



Dollar Soars to 6- Year High Against Mark 


CiWfvMfa Ow SitfFnmiDtipcKhn 

NEW YORK — The dollar 
soared to a six-year high against the 
Deutsche made and rose against oth- 
er major currencies Friday, helped 
by concern over plans to trim the 
German budget and by prospects for 
higher British interest rates. 

In 4 P.M trading, the dollar rose 
to 1.7770 Deutsche marks from 
1.7511 DM on Thursday and to 
1 13.980 yen, up from 113.103 yen. 
The dollar also rose to 5.9925 French 
francs from 5.9200 francs and to 
1.4645 Swiss francs from 1.4485 
francs. The pound rose to $1.6930 
from 51.6885. 

Germany's supplemental budget 
will not do much to help slash its 
deficit enough to comply with rules 
for joining European economic and 
monetary union, traders said. 

That might result in a loosening 
of the entry criteria, which would 
lead to a weak single currency, or 
euro. 


851.59 849.51 +0.60 


5812.12 584651 -0.58 

3450.56 .9343.86 +1.14 


“Everything looks like we’re go- 
ing to end up with a very weak single 
currency,” said Roger Chapin, man- 
ager of foreign exchange at Banc 
One Corp. in Columbus, Ohio. 
“There's been no credible plan for 
Germany to meet the entry require- 
ments by the start date, so people sold 
the mark for currencies where things 
are going in the right direction." 

The dollar slipped earlier in the 
day but rebounded as traders 
weighed comments by Hans Tiet- 
meyer, the Bundesbank president, 
that supported the mark. 

After the dollar soared, Mr. Tiet- 
meyer suggested Thursday that he 
did not want to see the mark weaken 
further.. He said it should stay “a 
strong currency.'* A weak mark can 
generate inflation by making im- 
ports more expensive, but it can also 
help Germany's ailing economy by 
lifting exports. 

“There was a rethinking of Tret- 
meyer’s comments," said Lisa F in- 


Strom, an analyst at Smith Barney 
Inc. “They don't look so threat- 
ening as they were yesterday." 

Dealers also said they believed 
the German currency would slide 
further against the dollar. “The 
economy is still .very good in the 
U.S.," Ms. Finstrom said. 

She said the dollar’s te bound was 
also due in part to the mark’s slide 


FOREIGN EXCHANGE 


against other European currencies. 
When the mark rises against the yen, 
it helps lift the dollar because traders 
often sell yen for dollars, then sell 
the dollars for marks. The pound 
was buoyed by expectations of an 
interest-rate rise next month. 

TTie dollar's rise against the yen 
was fed by a currency crisis af- 
fecting Thailand, the Philippines 
and Burma. Ms. Finstrom said, 
“The dollar is playing the rule of 
safe haven in this crisis.” 


The dollar also was helped by a 
wire-service report quoting a former 
Federal Reserve Board governor, 
Lawrence Lindsey, as saying that 
the yen was near the upper limit of 
its appropriate trading range and 
that he did not believe the U.S. econ- 
omy would slow down into 1998. 

The pound set a six-month high 
against the dollar on expectations 
that British lending rates would rise 
again soon and as traders bought 
pounds as a haven amid doubt over 
monetary union. 

Expectations that the U.S. econ- 
omy would grow with little inflation 
helped bolster the dollar. Prices paid 
to U.S. producers unexpectedly fell 
.for a record sixth straight month in 
June, confirming that inflation was 
subdued and sparking gains in U.S. 
stocks and bonds. “You have a situ- 
ation where the economic and polit- 
ical variables are all in alignment for 
die dollar,” an analyst said. 

(Bloomberg. AFP. AP) 


Oil Giant 
Is Created 
In a Tex as 


C.ttp&rt Ottt StuffTnxa Wjjwfcej 

HOUSTON — ■ • Reading ■& 
Bates Corp. and Falcon 
Drilling Co. are combining in a 
$5 billion stock-swap dial the 
companies say will form the 




drilling company. 

The new entity, to be called 
RB Falcon Corp., will be a 
dominant player, in the market 
for renting offshore dr illin g 


Source: Bloomberg. Reuters 


lmerruli.«ui Herald Tnhunc 


ECONOMY: Wholesale Prices in U.S. Decline for the 6th Consecutive Month 


Continued from Page 1 


Very briefly: 


Long Strike Slices Chrysler Profit 


AUBURN HILLS, Michigan ( AP) — Chrysler Corp. said 
Friday it bad earned $483 million in ihe second quarter, down 


53 percent from a year ago. The company blamed a monthlong 
strike at an engine plant for the decline. 


strike at an engine plant for the decline. 

The strike by 1,856 workers at the Mound Road engine 
plant in Michigan, the longest at a Chrysler plant in more than 
230 years, resulted in lost production of about 94,000 trucks. 
The strike ended May 9. 

The second quarter earnings of 70 cents a share were in line 
with Wall Street's expectations. Revenue was $14.4 billion, 
down from $15.8 billion a year ago. 

“The second quarter was a very difficult one for Chrysler.” 
said the chairman, Robert Eaton. He said Chrysler had put a 
temporary freeze on outside hiring, reduced overtime and travel, 
and delayed some discretionary capital spending projects. 

Chrysler said 1996 second-quarter earnings were lifted by 
$87 million after taxes because of the sale of Electrospace 
Systems Inc. and Chrysler Technologies Airborne Systems 
Inc., as well as a $100 million write-down of Thrifty Rent-a- 
Car System Inc. 

• Brazil's coffee exports doubled in the first six months of 
the year, rising to 7.56 million 60-kilogram bags from 3.76 
million in the year-earlier period, as growers emptied ware- 
houses to take advantage of record prices the Brazilian Fed- 
eration of Coffee Exporters said. 

• Newport News Shipbuilding Co., the military shipbuilder 
spun off by Tenneco Inc. in December, reported second- 
quarter earnings of $14 million, down 22 percent from a year 
ago. because of less submarine construction and carrier repair 
work. Revenue fell 5.7 percent to $450 million. 

• Phelps Dodge Corp. said record-matching copper pro- 
duction and a share buyback contributed to bener-than-ex- 


power and their quality of life im- 
proves as a result. 

A school of what are known as 
“new-age” economists gives much 
of the credit for this to technological 
improvements, notably computers, 
that have made American compa- 
nies more productive than their 
competitors. Coupled with a flex- 
ible work force and generally light 
regulation, the information-driven 
U.S. economy allows prices for 
many goods to remain stable or even 
to fall and still leaves room for cor- 
porate profits to rise. 

“Smart companies aren't looking 
for opportunities to raise prices,” 


said Edward Yardeni of Deutsche 
Morgan Grenfell, a leading pro- 
ponent of the new-age view. “They 
are looking at ways to cut costs and 
sell more goods." 

With wholesale prices down 0.1 
percent in June, bond prices rose, so 
that the yield on a 30-year bond fell to 
6.53 percent, around its lowest for the 
year and down from as high as 7.18 
percent in April. That is the kind of 
news that stock investors like to hear, 
and the Dow Jones industrial average 
resumed its climb toward 8 . 000 , 
rising 35.06 points to close at 
7,921.82. The Nasdaq composite in- 
dex, which measures many of the 


Among broader measures, the 
Standard & Poor's 500-stock index 
rose 2.88 points to close at 916.66. 

Cary Leahy, the chief U.S. econ- 
omist at High Frequency Economics 
in Valhalla, New York, agreed that 
with the amount of inflation evident 
in the economv, the near-term out 


US. STOCKS 


country's high-tech companies, fin- 
ished at 1,502.62, up 1 1.69. 


look for the financial markets was 
good. Yet he said that eventually the 
tightness in the labor market would 
put upward pressure on prices for 
goods, although for now there was 
no evidence of that. 

At Merrill Lynch & Co., chief 
economist Bruce Steinberg advised 


his clients that he would not rule out 
“further disinflation” in an econ- 
omy in which there was “simply no 
pressure in the inflation pipeline.” 

On Wall Street, shares in At 
Home Corp. nearly doubled on their 
first day of trading, after reports 
circulated that the chipmaker Intel 
had invested in the company, which 
makes computer modems that work 
over cable-television lines. At 
Home priced its 9 million shares at 
$10.50 each, and in late trading they 
were quoted at $17. 125. Intel, which 
has been strong in recent sessions, 
also rose. 

Computer manufacturers were 
strong across the board, with Dell 
and Compaq posting gains. 


Help Wanted: Who Will Try to Save Apple? 


By John Markoff 

New York Timex Service 


pected second-quarter profit of $13.8 million, up 6.7 percent 
from the same period last year. f Bloomberg j 


NEW YORK — Wanted: a chief 
executive to run a troubled personal- 
computer company with a shrinking 
market share, mounting losses and 
some of the world's fiercest com- 
petitors. 

Who will step forward for the 
most thankless job in the computer 
industry? 

The abrupt dismissal of Gilbert 
Amelio as chairman and chief ex- 


- . ecutive of Apple Computer Inc. on 

(Bloomberg) Wednesday [eaves an opening un- 


likely to attract many r£sum£s. as 
the turmoil that has gripped Apple 
Computer for even longer than the 
17 months of Mr. Amelio 's lead- 
ership looks less and less likely to 
end soon. 

Despite the deep employment 
cuts tnat Mr. Amelio made and his 
search for a strategy that would en- 
able Apple to regain its viability in a 
personal-computer world increas- 
ingly dominated by Microsoft 
Corp.’s operating systems, his turn- 
around efforts failed. With Apple's 
share of the personal computer mar- 
ket having sunk to an all-time low of 


3.3 percent, the comeback trail may 
now be difficult for anyone to find. 
Meanwhile, analysts are saying 


Apple's quarterly loss, to be report- 
ed Wednesday, mav be even larger 


cd Wednesday, may be even larger 
than the $70 million previously ex- 
pected. Apple's shares fell in heavy 
Nasdaq slock-markel trading Thurs- 
day, closing at $13.25, down 43.75 
cents. But in afternoon trading Fri- 


day. Apple's shares were up $ 1 .75. 
Mr. Amelio's forced exit, while a 


Mr. Amelio's forced exit, while a 
surprise, was not viewed as neces- 
sarily hurting the company. 

“Apple hasn't fixed its problems, 
but at least it got rid of someone who 


wasn't fixing them,” Andrew Neff, 
an analyst for Bear, Steams & Co., 
said. 

Mr. Amelio insisted that turning 
Apple around was mainly a matter 
of bringing costs under control and 
imposing deadline discipline on a 
company that had fallen into the 
habit of bringing out new products 
sporadically and late. 

But the ever-gloomier prognosis 
for the company may force Apple to 
consider options that were once con- 
sidered unthinkable, such as sep- 
arating the company's software 
from its hardware business. 


market has exploded because 
advances in technology make it. 
possible to drill in previously 
inaccessible areas. In recent 
years, some of the world’s 
largest oil discoveries have 
been in deep water. 

“This is a huge deal,” said 
Robert Trace, senior oil-field- 
services analyst at Hanifen Im- 
hoff Inc. “The combined com- 
pany will have preeminent po- 
sitions in two key areas: deep- 
water drilling and transition- 
zone. or swamp, drilling." 

Under the deal the compa- 
nies will combine their shares 
into a new company to be 
traded on the New York Stock 
Exchange. 

Reading & Bates sharehold- 
ers will own 52 percent of RB 
Falcon, and Falcon's share- 
holders will hold the rest 

Falcon shareholders will re- 
ceive one share of the com- 
bined company for each Falcon 
share. Reading & Bates holders 
will get 0.59 of a share of the 
new company for each Read- 
ing & Bates share. 

The combined company will 
have 14 vessels capable of 
drilling in water deeper than 
3.000 feeL 

Oil-drilling rigs are in short 
supply, and building new rigs 
is expensive. The corporate 
marriage will allow the compa- 
nies to bid for larger contracts 
without having to buy new 
rigs. 

Reading & Bates shares 
were up $2,375 at $33.3125 in 
late trading on the New York 
Stock Exchange, while Falcon 
shares were 50 cents higher at 
$58,375. (AP. Bloomberg l 


AMEX 


U. S. STOCK MARKET DIARY 


INTERNATIONAL FUTURES 


Friday’s 4 P.M. Close 

The top 300 most active shares 
up to the dosing on Wall Street. 
The Assailed Press. 


Sake Mgt Lbb Ldtd Or* Indexes 
% Dow Jon 


Most Actives 


Dow Jones 
op™ 


I 'Win 7093.19 TO iis 7186.74 7921J7 + 35.06 

Turns 1E3.W 2*3157 »|IJt 28I9J1 +T.10 


un 23341 ai«o m ss nuu -ojs 

Cano 2434.15 2447 >6 242973 J437J6 -7.62 


Sato hw» Low UM Or* 


TT? IF, 
TO 7 
ii't 

«• 9V, 


119 

an 

V, 

Wi 

1S1 

r. 

• » 
-9. 

1+5* 

U 

•S 

6 +'. 

-71 

29® 

14", 

PL 

19., 

-•> 

2763 

I7>k 

l »1 

1T»v 

_ 

in 

21 

3-4 

+ j 

- ■ 

311 

S'l 

r-. 

h. 

-'•4 

144 

17*1 

ir, 

ir. 

-'I 

173 

31 

3-. 


A| 


Standard & Poors 

Piwmn Today 

Hi * Urn One *PML 

Industrials 1079 . 721064591076.18 1079.14 
Transp. 660.51 652350 65644 65&08 

u mates 20250 70Q.li 201.73 20152 

Finance 104.14 102.93 10190 104.17 

SP 500 91654 90451 913.78 91657 

SP 100 894 05 80855 89022 89359 


vat Hat 
73092 *3 
*9771 45*1 
5*750 SI 
54342 35“. 
51791 £ 
49*73 125*. 
49174 
4*957 **» 

US? Si* 

4001 2 O'*. 
40091 35*14 
397H 70c*i. 

38986 2+9 
15453 37 V, 
353*9 


Law uni 
42*. 42*» 

344. 1SU 

» >i 11 **. 

'I 174 
JTO 3749 

561. «lt 
47’9 J]'. 

urn, js>. 

70*9 
7*'. 2*5 
31*9 22 '. 
74V 


July 11,1997 

High Low Laled Clrgr Jpin l 

Grains 


CORN (CBOT) 

S .000 burrenwnum- com* e*f CusTvt 


265*1 

7(1'.': 

-3‘i 

14.127 

231V* 

236 1 '. 


63.P2 

73M<* 

236'. 4 

-Ui 

150 438 

2605'? 

763 

-2 Vi 

27.775 

?66*’i 


-2*. 

4.470 

J69'. 

253'*: 

-75+ 

8.31)4 

;« 

750^ 

-4 

.'85 

Thu'S 

rote 

41.381 




Hluh 

Uri* 

Latest 

Chg? 

Oplnl 

ORANGE JUICE (NCTN) 



ISDWIBL-CCTVSPl'. to 



269 

JUl •? 

77 50 

7100 

7700 

-120 

Sep 9.’ 

7580 

74.40 

7400 


19.986 

f»v97 

78.75 

77 J3 

78 00 

•0.45 

6.531 

WrTB 

8150 

80 70 

81J5 

-875 

7.693 

Est rote na 

Thu's, sales 1.976 


Thu'50Pen itil 

3I.S64 

UP 273 




High Low Lotnl CTrqe Opim 


High LOW Lohrrt Chge Oplnt 


V* Thu's open inf 2735*3 oft SJ3 


14* 14 

§"» 7th 
16*1 lari 


Nasdaq 


H94 LOW Chg. 

■779.4* 47*J 3 478.12 4 IJS 

606-49 6(0*1 *07.05 *117 

03.42 430.07 431.41 *134 

290.91 J807 219.21 I JO 

438 01 435121 43*4*1 + IJ6 


Nasdaq 


ur*» 11 '. 

T Tft 


12H70 120*4* 171955 *1459 
1661 83 1*49 70 1661 -58 *1278 
1*8*48 1674.74 1*8454 *5_57 

TO177 195071 19*1.75 + IC*S 
979 08 967 43 975.17 - 7.89 


V9L HWh 
336554 kh*. 

13592* JS9i 

115*23 339. 

11048* 154 
102144 IB'S 
929*1 2 he 
75780 Si's 
4397V 

42344 331* 
499M 76’ t 
4*4*4 

47S98 I3IV. 
41S97 

410*5 I2‘. 

40683 l S’* 


In Low 

3*'i 35 

16* 17 

2V-9 B>9 
149'9l S3'l» 
IW*9 138 
Iri. 7 
DU 54 
1304 liri, 
Bil 323 
74V9 751‘ 
>» 

128*. 17946 


SOYBEAN MEAL (CBOT) 

100 lonv dotort P*+ W 
Jul*7 244.00 25400 76100 -220 

Aug97 34650 238.70 245J0- *170 

5ep97 22100 21/JO 222-U -0.70 

on 97 701 BO 700 50 71050 -010 

Dec »7 195.50 192.00 19500 -070 

Jen 98 I9JJ0 HUH 19300 -OJO 

Es>. sides fiA. Tin's, sales 23 58* 
Thu's open art 113.8*0 on 215 


GOLD (NCMX) 

100 not ol- dollars per troy oj. 

JUI97 32020 S 

Auo?7 J23.IO 3H 60 322.50 * 1 SO I09.BB2 

Sep 97 J234K) 321.70 HIM *160 4 

0ct97 mso HI 80 37410 ♦ 1 80 10,975 

Doc 97 576 *0 323J0 E6J0 -200 37J85 

Frt’B 377 JO 327 50 327 JO -1.10 9.949 

Apr 98 37900 37900 379J» -0J0 44KB 

JunfS 33110 331.00 331.00 -0ID 7.56* 

Aw 93 333.40 1.743 

Es. sales N.A Thu's sale* 14.417 
Thu's open m 216320 off 23*4 


GERMAN GOV. BUND OJFFEJ 
DM25&000- phaflOOpcf 

-028 28*666 

97 10204 101.80 702.04 4078 8,973 

EsI. sab* 150.888. Prat, sates- 17U18 
Prw open ml.: 79*439 ofl 6.998 
10-YEAR FRENCH GOV. BONDS (MATIF) 
FF5D0.000 - pis ollOO OCt 
Sop 97 130*8 13038 130 J8 + 0.14 21 1.994 

Dec 97 99J8 99.17 1924 *0.14 X945 

Mar 98 98-52 9BJ7 9844 + 0.14 0 

EsL sales: 97.293 . 

Open tnL: 215J41 off 7.064 


Industrials 


COTTON] (NOW) 

9 MB 0 AO.- crats per b. 

0097 74J0 7155 70S +0JS IL252 

Dec 97 700 7140 74JH +0.01 44.220 

Mar 98 7515 7445 7115 -ft05 1628 

May 98 7190 7145 75J0 -0.05 7.143 

Ju)9B 7640 7635 7140 +005 1313 

Est.safc* N-A. Thu'S. sues 71383 
Thu's oaen in 75330 up 4899 


rTAUAN GOVERNMENT BOND (UFFE1 
ITL 200 mlltan - pis of TOO pd 
Sep 97 126.79 13*33 134.78 +0J4 108.790 
Dec 97 loam 1 08 50 108-03 -0.54 1^21 
EsI. soles: 34.178 Pre*. sales 49068 
Pr?» op?n (n) : 110*11 off 2310 
EURODOLLARS (CMS/) 

II mnlon-ptsof IPOocJ. 


SOYBEAN 00. (CBOT) 
UM4 an- cent* Per Ri 


HI GRADE COPPER l NCMX] 

mo inv - cm>-. rv+ ») 


25.65 

21 83 

—03)1 

7.IM 

Jul 97 

10800 

105 70 

108.00 

-1.10 

5.597 

71.76 

21 95 

■00* 

73.479 


10500 

IM.0S 

1<M30 

— 0J5 

3.721 

7181 

22.04 

-009 

14.159 

Sep 97 

11)4 W 

10100 

10LM 

-03)5 

22.165 

71 84 

27.05 

-006 

13.402 

CO *7 

103 .10 

11723* 

103.10 

-0.30 


7191 

77 W 

-010 

41.471 


103.70 

107 00 

10320 

-OJS 

1.749 

7710 

3730 

-009 

4.738 

Dec 97 

102 70 

100 60 

10170 

-aeo 

7*60 


Thu s open «rt 106 .7*9 on 2109 


Jan +5 lul 50 101 JO 10130 -0.A) 702 


94J5 

9425 


36347 

94JS 

9*25 


173106 

9427 

9423 


564428 

*406 

9407 


466437 

9400 

9402 


30U31 

9191 

9193 


251^20 

9180 

9183 

-001 589.798 

93.70 

9172 

+03)1 151,495 

93 68 

9171 

+OD1 1153ES 

9XU 

93M 

+OW 

90,755 

9361 

9163 

+001 

763U3 

9J.S4 

9136 

+ 0.01 

683P0 


HEATING 00. (NMHJ) 
42JN0 ml. am par ml 
Aog »7 52.75 5135 

Sen 97 5130 5250 

0097 5209 5335 

NDV97 54.80 5435 

DBC97 5570 5530 

Jan 95 5430 5535 

Feb 98 5635 56.10 

Mar« 55 00 5550 

Apr 98 5490 5450 

Ed. sales NA Thu's 
Tim's open n 167.754 


5140 -038 
5195 +035 
5190 0.45 

5475 +140 

5165 +045 

5635 +041 

5145 +036 
5180 +846 

5470 +036 

soles 21713 
UP 1278 


ABN-AMRO 
Aegon 
Ahold 
Akzo Nabd 
3am Co. 

Bah Westcvg 
CSMcra 
DanJhcfre Pol 
DSM 

UJEfscwfer 

*-Foriis Aracv 
■5c ironies 
•j-Broccw 
Hagetneyw 
Hemeksn 


Hooameoscro 
Hunt Douglas 


H*B* Law UM a* 

*35 4? 431.70 63147 +JJT 


Dow Jones Bond 


Vol Mu* Law Lai 
22725 *2>a 9U»41*+J 


17485 6 -'i trm *"■ 

16?TI J9Si Thi- 28' i 

1*564 I '1+ 

104*3 5, *. 


70 Bonds 
lOUIdilM! 

10 Industrials 


10408 10400 

10137 10144 

106.794 1063* 


74*1 30*. 

ms iu 

*74S ir- 
5*5* )*■ 

55?7 18Vj 


29 U 7*'i« 
P, 

15 1P- 
l'« I ■ 
IT*. 18 


SOYBEANS ICBOT1 
1000 bu narwn- crm-. „i ou-evt 
Jut 97 ?87 7*3 7S> -8 

Aua 97 752 725 349*: -V- 

5«J97 650 634".- *4f -I*-. 

Nov 77 9W St? m’s — 

JBfl W *07 593’. *BJ 

Esi. sales NA. Thu's.Mi« UM? 
Tlu'sapeninr 1434A7 up 175* 


Fet>99 10030 100.00 10030 -OH 1 607 
Mar 98 100 72 M40 10030 -0J0 1.87] 
Est. safes HA Tib's sales 13. W* 
Ttij'iaDcninl 19.097 nfl IW3 


-' .* Trading Activity 


Nasdaq 


SrC'nra 

ywn wg w 


■ .Shies 

v * m <rv. 
fLV. Lt-'-i 


I7» 1789 APWIKOd 

1108 105* CtaUncd 

571 55 * undwngca 


WHEAT (CBOT1 

LM* Du minimum- cunl>. u , i Dusl .+ 
Jul97 3235. Its 322' • -1 

3m> 9" 333 3n 330 

Dec 97 346 33*' i W j 

Mar 98 355 346 3s3 • 1 + 

Esi sales NA Thu's lows li.iil 
Thu's open int 8* 447 up 148? 


SILVER (NCMX) 

S nno u*vo.- - 
Jul97 435 U0 43S00 

5W«7 O? 50 41250 
CWC97 444 iW 439 00 
Jante -U*l» 4.11 1» 
Mar '78 451 ft] 14h>) 
f Aav in 

Jul >8 .1*0 Oil 4S? Uu 

'Mi >8 

E'J.vdes ri a. Thu'-. 
TlUi jniKiliril 3.T 


4J100 -010 2/9 

06 CW -1 00 64 537 
41300 -100 U&]9 
Ml Ofl -5 a IB 
U9(t0 —1 711 °J7i 
JM SO 7 Mi 

4W00 ■O’O 1997 

4*730 '08 

sales 114174 

rM 185! 


EM.stfes 330^36 Thu's sales 231,708 
Thu's open W 2^73.727 off 1687 
BIUTISH POUND ICMER) 

*7 SW Pounds S per pond 
Sea 97 1-69*0 1.6834 I68«0 64.368 

Dec 97 IA790 881 

Mar 98 1.6737 3 

Esi W«5 144. Thu's Ides MC* 
TTru'sopcninr *1257 'v 168 


LIOfT SWEET CRUDE (NMBI) 

1.000 OOL- tutors per DU. 

Aug 97 1 1M 1981 19.28 +008 

Sep 97 1956 1928 19AJ +0.98 

OcH7 I9A1 79 J7 195? +0.06 

Nov 97 1963 19 M 1959 +07 

Dec 97 I9M 7953 19jS2 *0M 

Jen 98 19*6 19.60 1965 +0JB 

Fe0 98 19.70 1955 1958 *1105 

Mnr 98 19.74 ,007 

Apr 99 19 73 19 70 192® +0.02 

Mav 98 1959 

gr. sales NA Thu's, sales 109586 

Ulu s Open mr 414.906 up 5339 

NATURAL CAS (NMER) 

ItLOOD mm piu's s per mm am 

A./J97 7 140 7110 J.1IJ 


Hunt Douglas 
INC Group 
KLM 
rj)P BT 
tPN 

UedUoydGfl 
NutncBJ 
dee Griirkn 
PhJips Bet 


Pulygrom 
Ronastad Hdg 


i-’flbeco 
ffwlaroao 
Pol men 
Pawl hi 
Parol Dutch 
‘Jnrleweva 
lender Inn 
JNVJ 

HUas Klcvri. 


Bangkok 


CANADIAN DOLLAR (CMER) 

luQ.OODftjBor-.. I c«t Ccn <Sr 

Sep 97 .nil »30» .7379 J»«4 

Dec ?? 7SS Hi? 73*0 :.*74 

Mor?S 7387 554 

Ejt vows n a Thu s soles 5 
Thu's men ite 63,345 u: :53 


Sep*-’ 2 lfi 7118 1125 

Ocrt: 5.15(1 7. 130 3 135 


NP»97 3J75 ’ 766 2J7S 

?«97 7410 7 JOO 2400 


PLATINUM INMER) 
to ti.r, r: - ikjlot . r- i l+uw or. 


GERMAN MARK I CMER) 
IJiAWimiri' ..merest. 


3400 Total .ssucs 
401 JO* New High* 


; AMEX 


id New Lows 

MorKet Sates 


Livestock 


■1 l 

• * "i-raoe 

• - ■ 's . + j -w /s; 

- . Ttti, ifu*1 

',eu M.jns 

• • N.i/1 Laws 


393 

754 NYSE 
JT| Amen 
^ N05dKJ 
* In mribonL 


Tadar Pm. 

cam. 

504.22 *56-7 

?3.« 29 J 7 

SP7JS *37J2 


Dividends 

Corrrpcny 


CATTLE (CMER) 
jaooains -i.*ni'.iw, ib 
AW *7 6183 64.65 65 70 • 

Oa97 *897 *8 0.' *6 *7 

C«97 71 0 - 70 40 71 05 • 

PebVB n.n 71 M T95 . 

Apr 98 7485 7443 74HJ - 

JunJd 7095 7155 7fl70 

Esi sales Nt Timi' 5 upc, 73.; 
Thj's oowiinf M.S16 oh l?« 


' 4(aai 

ntuo 

tlOW 

■ it fl 

SI} 

Sep 97 97j/ 


? jat.'o 

St? u 

387 70 



Dee 9? 

i'-6 sm 

i r>* '0 

381 70 

Hi M 



'/Ur 94 1750 


■iW. I.A 

1 "o ' . 

Mdes 

8X1 


Ev wes n 6 



I7.fi)> 

iu 53 



iiwTirr"*' 

IPS too , IL1: 


Flos*- 

Pr.^i Br. 

JAPANESE YEN (CMER) 


Per Anri Rec Pay 


»«• 

is i » 
Ift- io> » 


IRREGULAR 

BPPrudhoeBay . JW75 7-?l 7-23 

Coristuo VdPcv JO 7-22 8-12 

.Van! Slims _ J 6 T - 71 T-3t 

STOCK SPLIT 
Diamond Offshore 2 far 1 spBI. 

Fs? Fm Caribbean 2 tar 1 spill. 

PacAm Money Center 2 tar Ispltt. 

Solectron Carp 2 tar 1 split. 

INITIAL 

Asm P jid & Paper t> ,05 7-16 B-ll 

Diotnana Offshore b .id 7-24 B-7 

5ec'M7V Food n .. D 6 7-22 8 -T 

lltUM Carp n _ .1425 7-28 8-25 

REGULAR 

A^Corp Q .12 7-28 9-3 

Acorns Express Q .12 B-18 9-1 


Company 
CAIndepend Bn 
Cape Cod 
Centra) Co-op Bl 
Eauriy Inco AT&T. 
FFLC Bancorp 
P St Colonial Cnp 
Fsl Slhn Bncshis 
Forth 5ecunthm 
Frontier Adrost 
Kcufman & Brood 
Mmncacv Bnc 
Newport News 
Patrol & Resource 
SchulmarLA. 

Tmes Mirror A. 


Rec Pay 

7-31 8-15 


7-21 7-31 

8-8 8-72 


7-15 8 1 

7-21 8-4 


FEB3ER CATTLE (CMER) 
50.000 1* - imh ik+ to 
Aue*7 82. (0 61.00 61 X 

5ep97 81 70 Wta 8130 

OH 97 8L90 81 )5 mo 

Nov 97 U.25 87.77 8110 


O'-'Bnr. p**» nB-lik- tan 
Ahjmmaai Crodr) 

5 pul iWlftT 15470H lit-r > 

FonuarJ IS*v ■ 1570 00 IS.tuO 
Capper Coma*.". tHtoO rkadr i 
Spot 747/ 0t< 743801 .’T+'flO 
FnrjialO ?.”J1 ftl J7-I4.C0 27 b 7 00 
Lead 

Spat *:•*' 4i-' 44V ■ 

ForjnUd *48 00 *t'< Oil 1/0 00 


17 5 m.s.n, ■ -n | p« 1(6 ..^ 

Sep 97 in, C-3 83 r 

Dec 97 ( 977 TO: 

r.tof ’6 71 y 

Esr J3l Hi 74 A TJ-JJ-; VW-: 7 «l 
Thu ■■ oc en n- 74' c“ ICJS 


J5" « 7 1430 2.436 

Feb 98 2J70 3350 13X1 

Mi-TS 2255 22j0 JUS 

Ajar 95 J.12S 2. ITS 2.125 

Awr g 3 2085 2 OBJ KBS 

E'J sales NA Thu's, soles 2W9S 
TOj *,epcn<nt 700 784 off 564 

UNLEADED GASOLINE (NMER) 

c? oco (kh. rwfi rvr uoi 
*0397 59 90 53JS S93S ' +IL6S 

5«: 97 Si 10 5735 S7.7S -DJ5 

per 5* .-5 55 65 56 JO -0.39. 

No. 5 : fijn y 90 5540 *030 

0:77 5510 Hjg 55 JJQ , (iw 

Jen it 5550 55.10 55 JO +BJB 

fed 9a SSB0 5530 55SO -940 

Ver»J 56 60 56^ft 5*40 -030 

Et. sales si# Tito's. sttfes 318J1 
ntosccenoil 73 .>c un iu 


info Sue 
Goiujfcnk BA F 
'r’rong Thol Bfc 
PIT Ejopkir 
,+«ro Cement F 
'Mm Com BV F 
leleasmosto 
[rioi Airways 
< haiForm Bk F 
''idCamm 


Ti.W up ]66 


Jan 98 83.80 83 35 Fiji -0.1S 


8-8 8-72 
7-21 7-31 


7- 25 8-15 
B-20 9-10 

8- 14 8-28 
7-ld 728 

7- 19 7-31 

8- 18 91 

7-28 8-* 

B-19 910 


Mcr« 83.55 03 00 BiTO -ah 

Esi sain N.A rtws sates 4U89 
Thu's aw *11 23.590 up 57 


5p.6 *875 'O' «nsne S75: 00 

FUSMIM 69*0 0*1 *94',|>1 *j*SCiO 

TM 

5 pal 5:1000 ax on :*i/iiiM 

Fonconl 55*0110 55*000 tii/0 W 
Hoc f 5 proof HigB Grade) 

Spnl 1 «Il*0 I+ 47.M ti/JOO 
Fnrwnrd iMTon I MB on l« 00 


SWISS FRANC (CMER) 

I3«r*«f |p-r*av 
ScpW rW VUT +K* •: 

EVC9.' ’31* 4117 *9!4 I.M 8 

Mcrhj /on ’J-'; jsc 5*3 

Es* win \ a. 7hu\ sees 23 456 
Thu s ownin' n 18? o*r jy.‘ 


GASOIL (IPE) 

US ojliars per mettle inn- Ws of 100 tons 

iuq 97 1*2.25 161 35 1*2 00 +QJ5 25,947 

5,-6 »» 1*3 7S 1*3 JS 16X50 -OJO 7.687 

>•«*, l«-’S 165 JO 16575 -050 7-49S 

9 168.03 1*7 JO 167 75 —OJO *6d7 


D*t?7 1*9 75 l*?JJ 1*935 +0.7S 10.181 


HOGS-Lwn ICMJER) 

404X71 tov - CltOs an to 
Jut 97 8340 8780 8130 


Hapi Uiiu Chnn Oifl*- OpmF 


Alto 97 81 65 80.75 81.50 . -077 


Financial 


OcfW 7495 74 30 74 90 


Dec 97 71.60 71.12 71 2J -0 60 


.12 B-18 91 


o-ammfc iHtppraumata omaani per 
stare/ ADR; g-payoHe in Camxfion funds; 
m- m artMy . q-rjuorfarty; s-seml-annual 


Fepag 7030 *980 7010 -020 

Es: soles n.a Thu's sales io«)5 
Thu's wren w 36.634 up 574 


14 r M , 

nr» i3’» 


6*11 

ipi 15 


Stock Tables Explained 

Sales fig ires ere uafficHL Yearly highs and laws relied the previous 9 weeks phis tne anroni 
VA^OLTiK^FrclflJFatrtKa^ijt7y.Wrtett050#(ff5tocJi{SvWer>doriiMMrglo25perccniorritore 

ncs been paid he Kora high-tar range and dwJend crc shown tor (fie new sftides only. (Mess 
cflwr.visc raw. totos of dMferefe cn« annuo) dtstnifsemotta Dosed cn Hie Wesl deaorailoa 

a - dividend alSDCQra (sl.b- annual rate of dividend phis start, dividend, e- liquidating 
dividenS. ee - PE exceeds W.dd - called, d - new yooriy low. dd - kw in the Iasi 1? months, 
e ■ divroena dKtoreu or paid in preceding 12 months, f - annual We. mow sod on tost 
detloWior. 9 - dividend in Canadian ftmdfc subject to t Sfla nan-residonco fax i - divldond 
declared after split- up or start dividend, j - dividend paid tho year, ordtlrd deferred, or no 
sefien taken al West dividend meeting, k - dividend declared qr paid this year, an 
sccumuiciive tssuo uriih dividends in orreots. m - annual rete reduax) on losi dcdcnnon. 
n - new .aue fn fhe pair 5? weeks. The high-ton range begun wffh flis start ol trading, 
nd - r 'c*1 day delivery, p ■ uniiai drvittana annua) rale unknown. WE ■ pnee-eamings m*. 
a - dosed-end muh«i fund, r- dividend dedBredarpoW In preccdlmj 12 months, plus stock 
arcideno. s - stack split Dividend begins w(th dale of split, sis ■ soles, t - dividend paid In 
stick >n preceding 12 months, estmoted cmn value on e*-dividond ore«-dlsitlbution dote, 
u ■ new yearly high, v - trading holtod, vt-in bankroptcy or reccwetsWp or doing reorganlnd 
under the SonKrti PHy Act or securities assumed by such compand wd - when distributed, 
wi - when issued/ ww - with warranls. 1 - ex-tDvldmd or rx-nghls, xdis - en-distributton. 
xw - r.'ttiout warranls. y- e* d indend and safes in full ytd - yield, t ■ sales in full. 


PORK BELLIES (CMER) 

JO.ODO - cent» pc» id 

Juf97 8310 81 BD 82 70 -147 

Alton 11.37 BO. 10 80U -097 

FeB 98 nm 71.90 7117 -007 

ED sales NA. Thus. wift 2.HS 
TtartOBenW 6.717 no 49 


US T. BILLS (CMER) 

SI .niiuvi- div ai luu p r-i 
VP*-' 94 91 W W 94 90 

DK 97 J3 7t 

Mar 96 9J *9 

E-J vatos N *• Thu's ,oiw 7*9 

Thu'SCPento' 0.W Off 138 


SYR. TREASURY ICBOTI 
S1UD.001I urin ■ pi'. A tiim .on ion uoj 
wevr ig;.i; io+-‘i 107 ...M . 0 1 

Dr-c 97 IIIV54 1IM-4S 1 06-54 • 0-’ 

Maris -Ol 

I- '.I Mi TOu-, -.ntr.. 301RI 

Fnif-.i«iT»ini 219. up 180 


MEXICAN PESO (CMER) 

SM 'toO t— vn. I prr {v-u, 

Vp«7 17460 123*9 17475 

97 13325 55973 11693 

Mar 96 51*55 11610 l)*’o 
E'J 'rfes N a Thu s saes 4.9*4 
Thu's jc^ien 11 Jn i/c rs 5 
3 MONTH STERLING (UFFE) 

COO 000 ■ pfsfll 103 pc' 

'+»* JT 91!a 9783 Kis -003 1 

'»T<5 92*0 *7;.s -CO* I 

f 8 ai 90 72 54 92 40 o; Li . 0 p 7 I 

Jen 98 9T SJ 92 4* 9J <L| -J flo 

Sep °8 ’.'5* +24? .g iq 

Ln<«g -i2Sw SJJO 'jjj- .on 

‘Mr ft W.SJ 97 A3 *2*5 -010 
E-J Vllei Pip, j C |i^ i i;o.;ji 

Pi>> upeneil ffCW off a? 


'll NT - 17000 “®J S i,s,r 

F*«9S Ml NT ]70Jfl 

‘■‘4i: '7000 17030 1*UJS -0.75 1,749 

Eit vUr* &.IB4 . Pnrv. Miles 75.635 
D re* oponint ta.917 off 1435 


Stock Indexes 
SAP COMP, index (CMER] 

44} * tr Of- 

SVr filS SH! -J-90 178.191 

a«7» 9*00 Ml 83 JK.IS -M5 54187 

. W 100 1.813 

Eji •>a*i st a nw's safe* <6.70 
ntosecemm 195.408 off 9TT 


3- MONTH EURO.VURK (UFFE) 
DMl mlDicn ct-,cl'Mo:t 


COCOA (NCSE) 


IPS 

'PS 

1575 

-5 

51 

1602 

1573 

1575 

-34 

37 J 7 I 

1650 

UTS 

167 ? 

— 2 ) 

27.134 

1876 

1660 

1660 

-19 

:i 57? 

1690 

1690 

1690 

—9 

10.042 

17 75 

1775 

JTJi 

• 8 

1 , 14 .' 


I#YR.TRCA 5 URY(CB 0 T] 

9 ire noa ,».,v III, * J7,|J. It IQ Kl 

Vp»: I0U-7S 109-17 IJ7-7S -07 J4J.I51 

5>X 97 lilt- 1.1 llrt-fl* 109.50 .84 7 458 

Mar96 1S8-U 1 

F’J fl 6 Tito'S '.are* ‘. 7,598 
T h*/'. flwn flt J'jfl.569 igj IP* 


Jill <7 III NT 4,01 .J„ en 

M'JUJT? ri . ST +6 FT .001 

16 3J 9*^ 9f BJ i Jna » 

Dec 9, <*. ] ij -j .^3*1 

If at 9t 0*44 n ^,5 

lunOg v, ij -.tis, { , „ 

■‘ft ’<14 Un^n 


CAC <0 (MATIF] 

F F20o per biaex poM 

Jul 97 29560 39340 29500 +19.0 XL 706 

Aug 97 295SJ) 29490 J93BJI +19.0 24123 

5ep97 2071.0 29515 39645 ,198 21,274 

D«97 29850 796541 JO90JJ >194) 990 

Eil safe*. 6,9*6. 

Open M_ 72.194 op 1.738 



Copenhag 


Sep 98 ^ Js 4, ; 

De: +8 4* 1 1 *v. 


'*09 -col 
>5« -001 


—+. w— * — — — 

Hu's open tot lflt.?lS off 134 


I For i;westme:yt infornatioiy 

j li.-dti THE MONEY REPORT even Solunb\ in «h.* IHT. 


COFFEE C WCSE) 

F.SOOIM. ■ cent* «+ to 

Jul 9/ WOO in .00 184 W - 1 M Ml 

See 97 14550 l«;i 1 M 10 -:li 11 ait 

OK 97 15175 14800 153 M ■ T « 5..1U 

Marta 14250 1® 00 Mias < J5 
MOV9I 139 M 137.50 139 00 ■*■' 

Esi. IMS NA irw'S sale* 9.S6* 

Thu’S aw m .’I I S3 IIP WO 


US TREASURY BONDS (CBOT) 
fiitum,.,.', * ij»«ci. ■* ini' i»+i 

I1J-1 . 1 13-73 IIJ.IJ . )#, 410619 

Qnrv.'iM-ny ill - 11 11 . 1 -tto -H 30J53 

6*nr«a|5J.71 I5J-71 !I%JI • IS S.83J 

Jimfl 113-Hj 113-10 II). 10 ■ lj TM 

h'4 ■•aL*-. Ml*. Tlsj's «*•■. I'.Tjl* 

I'm .ntiiiv.' Si; 157 up 1 J 57 T 


$UGAR-«W0RLD 11 (NCSE) 

iij.aoe ajs-Lemiiw 13 

Oct 97 11 18 11.06 11.09 .1! 

Mar 90 IIJi H73 1173 -0 

Mav 98 111* Hi: II M '0i 

Jul 91 111) 1107 1107 

Esi safe* N A Thu’s roles 9 S' '■ 
Hto'5t»naH 1S:.SS3 l» J79 


LIBOR 1-MONTH ICMCH) 

V ■ MiBl'm- u+. u' ItollKI 
jin'*' sir it I? 

•'HI" »1Ji vi TJ 9.5 7} 

+TT" 'It? MU 94,1! 

A-. 1 .uK— . A., thu s -jj+r 6 41: 
IlM '• ■1'en +il J*». m' ’ll 


J7" 85 '■ -*» -55 -53i 

Pe-.'^l m ’T' ' ,J - 7 3I 

Pr j egrr. 1 .1 1 >x. ,41 ^ 

3-MONTH PI BOP IMATlFl 

FFSlHiBiJr, steplXp cl 
3«9’ lif< W ls 

ST™ a . tS1 «*J 1 -001 

>e< 5 9143 i&4 * *001 2B.J9J 
JT "■* Xj ■!* 57 9* Jv , 0 nj sin 

5JTS ** 5f * 3i -6.H-003 

Dif«s LMI s*oj 9410.0.03 14249 

E-.t soft.. 19.524 

Open Ini r.HoffllU 


FTSE tm (UFFE 1 
U5cerindinD0lni 

Sw 4TO0 98320 -5*0 70-693 

D« 97 48C9 0 4873 0 48960 +S10 4.280 

t.\Ot 98 NT NT 493jl0 -530 10) 

Ejt safes 9.79? Pro*, sates. 1UA) 

Pre» saw IrS 74.673 up l.m 


Commodity Indexes 


3-MONTH EUDOURAtUFFEI 

tfl. 1 mi:1.5>- ;• 


CtaM Prevteas 

Jftady's N^k ‘ 1438J0 

Rrutan. 1.038JB 1.900JB 

OJ. Futures M7.16 . 167.97 

233 Jd 232.74 
Ssuxei. Atmt Associated Press. London 
mt t Financial Futures exchange, inn 
’■eooieum ExehuuHr- 


iiir, i; wv 
oat j. 3i.' 
ooi m.ii.' 

4 yi' 


LDNOftILT lUFFpi 

I • II M* pi-. 5 1 ,'n.| ill III i IV I 

••pv it: 'Mil i J< 114 ." iO,’'. li'+fi 


■ ri. tr flli . Ilk.1,4 

•40V It 


v-n 37 

1" 

a 

53 H 


V ”, 

t; +i 

; 3 >3 

“C 1 

*4 13 

54 ee 

>4 Is 

jim 

% 4 *r 

•4 U. 


‘■6. 

*4 

«:+ 

14 

c-s 

il ” 

cue 

94 

■V.c « 

•; ’j 

14 .* 

4; -i 

lllF. C'i 


5+ 37 

44*-. 

1- .1 '.lir 

• ■ ft 

P.+, 

W« J 

'■r- 

1 1.*’ 


<k 


»3 O' JI’*; ; 
•CCS 78.299 | 

•oca ias.w : 


Sw’iHir 

fibodoii 

••ir-n M<huI;i\ in '!>«■ IttiiTnijrlsil 
















\-Sfi 


INTERNATIONAL HERALD TRIBUNE, S.ATURDAY-SUNDAY, JLXY 12-13, 1997 


EUROPE 


vea m 

s Created 
n ® Te% as 


Endesa and STET 
Gain Entry to Spain’s 
Telephone Market 


German Budgets Approved 


i tii*» f «-rt, ciufu, An cnjde-oil reserves, tighten state 100,000, to 4.2 million from 4.3 
BONN — The government on spending and contain social-sera- million this year. 

Friday approved Finance Minister rity payments to reduce its deficit The government probably will 
Theo Waigel'i draft supplement- enough by year-end to qualify for raise its growth forecasts for 1999 
ary budget for 1997 and the 1998 Europe'-s planned single currency, through 2001. Mr. Waigel said. At 
budget, both designed to help Ger- The budget mei criticism from present, it forecasts growth of 2.5 
many meet the fiscal criteria for Germany's opposition Social percent for each of those years. 
Europe’s planned single currency. Democrats. An economic special- The government said it planned 
The supplementary budget for i&t, Ingrid Matthaeus-Maier, called to raise as much as 400 million DM 
this year raises the projected deficit it a “desperate attempt to mend this year by selling part of the 
to 71.2 billion Deutsche marks holes in order to just get by." nation ’s crude-oil reserves. At cur- 
(S40.6 billion) from an original plan Countries wishing to participate rent oil prices, about 12.6 million 


100,000, to 4.2 million from 4.3 
million this year. 

The government probably will 


HOUSTON — . : buy 60 percent of Rctcvision SAithe 

sites Corp. and Cad ' n 2 4 Spanish govcmmeni-owned tele- 
rilling Co. are curnh communications company that aims 

i billion stock- s ™ lnin g to i to end the current monopoly in basic 

mpanies sav u u f p { ^ ih, ' ' \'t ,c lcphone services in Spain, 
arid's lar’°esi The decision, which may shift the 

ffling comoam • balance of power among telephone 

The new eW ink. I companies in Europe and Latin 

R F-»irr, n f' - * 1 calln ! America, was widely expected after 

' “"I feV Endesa of Spain and STETof llalv 

^ ? ,hf : °n , «wl ' '6 billion pesetas (S783.3 

L offshore dnliU : mi (lion i last month for the Rete- 

•tirl? u°- COI ^P ajl ieA tv . vision stake. That was almost three 

axttet nas exploded ta ,,. i times the minimum bid of 45 billion 


r . w :.&} Fn~. n-.y puirnr. pesetas set by Rctcvision. The com- 

MA DR1D — Endesa SA and pany’s remaining 40 percent will be 
STET SpA won their bid Friday to privatized in the next few years. 


The winning consortium outbid a 
group including Banco Central His- 
pano SA. France Telecom SA and 


Sprint Corp. of the United States, 
which offered 84 billion pesetas. 


budget, both designed to help Ger- 
many meet the fiscal criteria for 
Europe’s planned single currency. 


present, it forecasts growth of 2.5 
percent for each of those years. 
The government said it planned 


which offered 84 billion pesetas. 

In the next few months, Retevision 
is to become Spam’s second largest 


telephone operator as Spain goes 
ahead with a decision made last year 


js to oil comp^., 


axket has exploded |JJ»; 

LvanccsmtechnoluMv^ 
tssible to drill m 1 
accessible area-. iuusl ‘ . 

ars, some of ( 'h c ***■ 
rgesi oil discover, e • •. 

sen in deep v. ater iVt 
“This is a huEr del 
obert Trace, senior 
ivices analyst at Hanifeniii 

>ff Inc. “The combined cm 

uiy will have preeminent ' 
dons in two kev arc*. Z ;S 
ater drilling and ir^,, * ! 
>ne. or swamp, drilhno ■ • 

Under the deal ;h,- ' 

es will combine ih._-ir \ 

ito a new company i,. l, : 
aded on the New Y.jrk w J 
xchange. ' i 

Heading & Bates ,har^. j 
^ w *ii own 5_ peacni of jy, , 
alcon, and Fikon s ^ . 
alders will hold the re-.i j 
Falcon shareh- ild-.r-. W||| rt . ; 
rive one share ») the ro^' 
ined compan> lor .j.;h Fain, ' 
litre. Reading a. Bji shutter ' 
ill get 0.59 o? ^ ••narcoiik 
ew company i>. r ej L h Read- 
)g & Bates <.h.;re 1 1 

The combined •.■.-mpany-AiO j 
ave 14 ves>e!> .tpjhic m , 
rilling in water d refer ihm ( 
.000 feet. j 

OU-drilling :*c • n ihrm 
apply, and bu^i-dc new ni| 

; expensive. The . •■ty-ont? : 
urrkige w ill a!:-. ••••. hevomp . 
ies to bid for i.irer- «.• nm 
ithout having bey m I 
ig*. i 

Reading & KjI:* -hairs i 
:ere up SC.? - ? -• > - : 3 ! 25 at ’ 
ite trading on Nr - Yost 
•lock Exchange, ufcae FjJvuh 
hares were 50 f.-r.i- higher t 1 
5S.375. • '. r S - "<hri . 


Belgian Unions 
Press Renault 
On Layoff Plan 


BLnnnhcrt! .tyst.v 

BRUSSELS — Negotiators 
for Renault SA and represen- 
tatives of Belgian trade unions 
disagreed Friday over the text 
of a lake-ii-or-leave-ii layoff 
plan for blue-collar workers av 
the carmaker's Belgian plant. 

The 2,700 blue-collar work- 
ers at the Vilvoorde plant near 
Brussels are to vote Thursday 
on the plan. • 

Renault reached an agree- 
ment earlier Friday with trade 
unions for around 400 white- 
collar workers, about 15 per- 
cent of the work force, that in- 
cluded more severance pay than 
Renault initially offered. 

Blue-collar unions, holding 
out for a similar package, 
threatened to block a Renault 
car plant in France. They also 
said they wanted a firm com- 
mitment from Renault to save a 
total of 600 jobs at the plant. 

“If the situation remains like 
this, 1 fear the worst,'* said 
Georges Jacquemijn, a union 
spokesman. 

Renault plans to close the 
plant by the end of this year as 
part of a plan to cut costs. 


to fully liberalize its telecommuni- 
cations market in December 1998. 

Endesa, the state-owned power 
company, made good on its pledge 
to diversify into Spain's fust-grow- 
ing telecommunications marke ts. 

Entering Spain will give STET, 
whose full name is Socicta Finan- 
ziaria Telefonica SpA, a piece of the 
country's 1.5 trillion-peseta-a-ycar 
basic telephone-service market and 
mark the company's biggest expan- 
sion outside Italy, including a key 
link t o Lat in America. 

“STET's plans for the future arc 
to expand in Latin America and 
Retevision is a springboard for this 
market." said Ra/facle Mascetra. an 
analyst at Banco Di Sardegna in 
Milan. 

Latin America, sharing language 
and history with Spain, is seen as a 
natural market for Retevision, 
which hopes to mirror Telefonica de 
Espana SA’s success selling tele- 
phone service there. 

Telefonica. Spain's only basic 
phone service provider, will lose 
that monopoly. Retevision, cur- 
rently a carrier of satellite television 
signals, is expected to begin com- 
mercial telephone service primarily 
to corporate customers before the 
end of this year. Analysts expect it 
will capture up to 20 percent of 
Telefonica's domestic and long-dis- 
tance mar&et within five years. 

Spain further committed to li- 
censing a third telephone company 
before the end of next year to meet 
European Union demands that it 
fully open its telecommunications 
markets to competition. 

Shares in Endesa, or Empress 
Nacional de Electricidad SA, rose 
70 pes etas to 12,500 in Madrid, 
while.STET shares closed at 10,155 
lire ($5.94) in Milan, a gain of 85. 

(Bloomberg. AFP) 


{ $40.6 billion) from an original plan 
of 53.3 billion DM. 

But the government has said the 
figure will still be low enough to 
allow Germany to qualify for 
European economic and monetary 
union in 1 999. 

“The decisions of the last few 
weeks were hard, but we were suc- 
cessful." Mr. Waigel said at a 
news conference after the cabinet 
approved the budget. “We have 
reached a good, sustainable con- 
clusion." 

The president of the Bundes- 
bank, Hans Tietmeyer, and the 
central bank's chief economist, 
Otrnar Issing, also have approved 
the budgets, Mr. Waigel said. 

The supplementary budget calls 
for the government to sell pan of its 


in the currency union must hold 
their 1997 budget deficits to no 
more than 3 percent of their gross 
domestic products. 

Asked about estimates by Ger- 
many’s six leading economic in- 
stitutes that put its budget deficit at 
3.2 percent, Mr. Waigel said, "We 
think ihe deficit is less than 3.2 
percent and are counting on 3.0 
percent." 

Mr. Waigel added that the 1998 
deficit would be “clearly under" 
3.0 percent, with faster economic 


growth of 2.75 percent helping to 
counter unemployment, which is 


still near postwar highs. He said 
the budget had been prepared on 
the assumption that average un- 
employment would decline by 


nation ’s crude-oil reserves. At cur- 
rent oil prices, about 12.6 million 
barrels would have to be sold. 

Germany also plans to generate 
a 10 billion DM profit this year by 
“selling" part of its 74 percent 
stake in Deutsche Telekom AG, 
the phone and cable-television 
company, to a government-run 
holding company. {Creditanstalt 
fuer Wiederaufbau. It will book 
another 15 billion DM profit from 
a similar "sale" next year. 

Altogether, Germany plans to 
reap 12.7 billion DM from asset 
sales this year, plus 19.2 billion 
DM next year, Mr. Waigel said. 

Bonn also outlined its plan to 
sell Deutsche Postbank AG, the 
banking arm of Germany's postal 
service, starting in 1998. 

(Bloomberg, AFP l 


U.S. Urges EU to Cool It on Boeing 


Blimmitfru News 

WASHINGTON — The United 
States turned up pressure Friday on 
the European Union to tone down its 
rhetoric on Boeing Co.’s proposed 
acquisition of McDonnell Douglas 
Corp. 

The U.S. trade representative, 
Charlene Barshefsky, said Washing- 
ton was "concerned" with “some 
of the rhetoric coming from Europe 
in advance of the facts" on the pro- 


posed $14 billion combination. 

While U.S. antitrust officials ap- 
proved the combination, their EU 
counterparts recommended last week 
that the EU reject it because it would 
increase Boeing's market share for 
jetliner sales and service worldwide. 

U.S. officials say the EU may be 
trying to win trade concessions in 
exchange for approving the com- 
bination. 

"We expect the EU review to be 


Eurotunnel Shares Fall on Deal 


Gmqidnl be Our SuffFmm Dai ufrfo-s 

PARIS — Eurotunnel’s share 


prices fell Friday, a day after share- 
holders of the Channel Tunnel op- 


erator approved an muion 
(514.3 billion) debt reorganization. 

While the plan is a key step to- 
ward averting bankruptcy, its terms 
are also tough for shareholders. 


winning lower interest rates that still 
will not allow the company to turn a 
profit until at least 2004. 

Eurotunnel stock fell 6 percent 
Friday on the Paris Bourse to 7.55 


francs (51.27) after an initial leap of price in 1994.f Reuters. Bloomberg I 


WORLD STOCK MARKETS 


Hl|l Low a DM Pw. 


High Law Ctose P«w. 


Friday, Julylf 

Prices in local currencies. 
Telekuts 

High Low dose pre*. 


Amsterdam 


AEXMecVMJn 

PmrinRufMJ! 


Industrials 


„ COTTOAI'KTM 

: r*. - ' 

ft.**’ to: - . 

3k y 

-• «cr=a :£Ij 
Ms, 75 - - 

:.iw 
* tv. 

; rwsaerr "• > ■■ 


rS *- 

■;:? -ii 


ABN AMRO 
Aegon 
Ahold 
AkzoNefad 
Boon Go, 

Bots Wesson 
CSMcw 
DonJfcdie Pel 
DSM 


■ w . •_ .• .£i ... ■ % warn 

I.- - . /' .£ .'it Charter 

*•- .. V » I FortfeAmev 

p r.- ” -f -• " Getraris 


HEATING 00. ,WS*' 

C7 -AV -FI . JTV. i\‘ D 

& ^ 


GetrooKS 

G- Brae on 
Hogenycr 
HauKkan 


4S40 030 ALSO 0.90 
147 151.40 14&40 
175 \7im 17430 17U® 
28130 27530 281 2740 

15330 14L50 1S230 14450 
3SJSU 37.90 38.10 37.90 
0440 HQ 104 103 

11230 10440 11230 10830 
215 20630 213.90 20730 
35 3440 3470 3470 
9490 940 9530 940 
72 7030 7130 71^: 
72.fi! 4930 7230 47.90 
10330 10230 10230 102 

34130 33930 340 33930 


Higti Low draw Prw. 
Deutsche Bank 10645 10410 10405 10140 

DeWTeMora 42.90 4235 4235 4230 

Deesdner Bank 4935 48 6830 6430 

Ftesertus 358 352 354 358 

FfeseniusMed 14930 14730 14730 ISO 

Fried. Krupp 34930 341 34930 341 

Gehe 12230 12130 122 IHL20 

Heitfefig Zmt 148 145 145 148 

Henkel (rid 105 JO 105 10535 10110 

HEW .470 — 

HocfatleJ 8480 

Hoedtsi 
Koistadr 


SABirweries 
Soramcor 
5a wt 
SBlC 
Tlgier Dais 


74035 13935 14035 14035 
4130 4130 41 41 

5830 58 5835 5835 

21330 213 712 212 

78 7735 7735 7735 


Kuala Lumpur 


UUUtBHfes 

VenriomeLxuti 

Vodnkne 

WhUtnod 

WiKomsHdas 

Wdfcdey 

WPP Group 

Zeneca 


72S 

785 

7.18 

787 


482 
3. IB 

420 

296 

428 

3® 

4X2 

2X1 

Paris 

&35 

801 

8-Ci 

7 XU 


125 

322 

124 

325 

Accor 

426 

427 

435 

426 

AGF 

2X1 

2® 

!L» 

227 

AtfUqnde 


CAC4fc 294139 
PrailM.- 292939 


EkdrohnB 
Ericsson 8 
Homes B 

Incentive A 

Investor B 

MoOoB 

Nunlnften 


281 274« fSSSir 
130 14450 K ever 
■ in nu Lmne 


LufllHnsa 

MAN 

JVUmnesminn 


10530 105 10535 10410 

— 442 442 448 

84 8580 8430 

7835 77.95 7835 7730 
619 406 610 595 

8130 7935 81.10 7BB0 
13® 1290 1290 1324 

3335 3275 3275 3230 
-- 534 540 542 

795 79430 794 


AMMB Hdgs 
Golfing 

Mai Banking 
AM in* Ship F 
PehanosGas 
Prolon 
PabkBk 
Renong 
Resorts World 
Rothmans PM 


1490 1430 1450 1490 
1130 1030 11.10 1030 


Madrid 


oho ladee 423.17 
Piwriooi: 42137 


2530 24 M 25.25 2490 
NLT. NT. NX 470 


B.90 440 8.90 840 

11 JO IDjdD 11.10 1030 


St?t’ rr. 

*:5t 

JOT. V; 

r.Vr 91 x> :. 
apcij V". 
E.* V- ■ 
T>- 1 - 


Hoognenscvu 1M.10 11230 11280 11210 
HurtDouglas 17480 17230 174 17230 


ING Group 
KLM 
KNPBT 
KPN 

US 1 '* 

OceGnntea 

PhfflpsEfec 


I.CSPCii- = 

•t-.— ' 


i A«|97 t? " 


, see?' 1 -‘l 


, Off” 

, V V w 

: ;fT 

■H 

; Deer ;•?* 

“ ( 



" " 1; 

ji ■{ 





"■ ' «:-t 


RBV-5 




Rand Dutch 
UnSnercni 


Unlever era 
VendextnB 
VNU 


17480 17230 174 17230 

10430 10130 10290 103 

7130 7030 70.90 7080 
4430 4190 4430 4140 
8U0 8240 8110 8140 
58.70 5730 58.10 57.70 JS2 
333 33130 332 329 JJ-™ 

244 241 JB0 26180 243 

148 14SJM 14470 14410 V “““ 

108 10430 10* 

216 309 217 

19530 19190 19410 19430 UbId 
4840 BM 48 4780 rKS ' s) 
19430 19440 19450 195 _ 

1144® 11420 11430 114*9 EwA 
10940 10780 10880 10730 HuWon 
447^0 44410 444 445 Kenira 

11350 11230 113 112 feta 

44.90 4410 4410 4440 Merita- 


McMgeseBsdiafl 3930 3830 38.98 - 

Mete 22030 21230 220 20940 

MuadiRaeckR 6030 5655 &S0 5560 

Pmmag 543 538 54! 52730 

HWE 7405 74A0 7 ijii 75.70 

SAP pld m 396 396 40530 

schering 19580 19330 19SJ0 193 M 

SGLcSban M 24450 2473® 245 

Semens 113 111® 11230 ifi?80 

S prinyctAtt Q 1499 1670 1499 16J 

Suecbudwr 930 930 939 w: 

Thwsea 433 431 432 42230 

Veto 10340 10239 102J0 101.95 

VEW 572 565 57130 545 

Vmg 798 792 79Z91 786 

VaSsvngen 1456 1418 1425 1453 


Sno Dufay 

Tehkanlwl 

Tenaga 

Utd tngtaeen 

YTL 


384 3J2 384 

3.16 104 384 

7 JO 7.10 7.70 

7430 2575 2425 

875 7J5 09 

11J0 1§J0 11 


1130 10.90 II JO 1130 
18 1770 17.90 1730 
685 630 485 480 


London 


FT-5E1DB; <79130 
Previous: 474780 


Abbey Nell 
AKeoDumei 


Helsinki 


HEX Geattdtadau 331439 

PliWoei: 337184 


WoHenKICVU 25730 25530 25770 2500 


Bangkok 


rnu i sptr-i n -- 


SET tadoc 12135 
Pmtam: 449 J3 




j- ; j 

SV *.r: --■• i 

DKi- : 

,-r‘ : 

Ft'S 't . • - : ■’ • . 

w -V ;:r 

t-J «C> • ' v ; -U : 

!*•' - r - 
UHLEAOeaGAS^ 1 ^ 
c; 4.^ '3 1 

f'- r j! i 

s«»<- i*;. :• : I 

y r. : 


-UvIntoSvc 
Bangkok BkF 
Kning That Bk 
PTT&grior 
5fara CenmnlF 
Stan Com Bk F 
Teteamask) 


ThoiAlnwp 

ThUFoimBki 


770 740 

244 232 

36 3130 
424 408 

346 504 

127 114 

3930 3575 
6030 54 

147 138 

109 9730 


240 260 
232 242 
34 35.73 
406 424 
510 544 
117 128 
34 39 
55 60 
138 138 
U3 108 


HuhhuncKlI 
Kendra 
feta 
Merita A 
Metro B 
Meba-SerioB 
Neste 
Natal A 
Orion- YMymae 
OutokumpuA 


4930 4830 49.10 48J0 
236 232 236 232 

52 5130 5130 5180 
T7 TSJtt n TG3B 
2&20 19.70 1980 20 

??2 170 173 171 

44 4530 4530 4570 
137 137 137 137 

420 412 419 418 

198 19730 19730 198 

1S43D 10370 10440 10330 


AKefl Dameai 
AngttaiVtaler 

^S^Gnui 

Assoc Br Foods 

BAA 

Bardnys 

Bass 

BAT tad 

Bank Sartkmd 

BHueOitSe 

BOC Group 

Boots 

BPBtad 

BrfAerasp 

BlttASlWfS 

BG 


Zeneca 2080 2085 20.80 20J5 AkutdAhta 

Ajo-UAP 

" Bonawe 

Madrid iiasg-ii 

Canal Plus 

Aoerintn 28500 58370 28450 28300 Candour 

ACESA 1930 Vm 1910 1905 Cashrn 

AguasBarcHon 6090 »90 4050 fiJOO CCF 

AJJiefriaiia 9600 W UM 906C c etztem 

B8V 12890 12750 11810 12730 chiteJteriDfo 

Bonessa 1505 1«5 14W .14W CLF-DexinF 

Banklnter 27440 27300 27390 27300 Credit Axjtta) 

Bco Centro hfisp 6030 5920 MEM 5920 DanoiK 

Bar Papular 39200 38150 38180 38910 Ea^qnriata 

Bco5antander 480S 4680 4700 4810 EridanlaBS 

CEPSA 5050 4980 4980 50« Eimxfisacy 

Coaltode 3375 3 1 B0 3375 3200 Eunriumd 

Carp Mapfre 8540 8350 8530 8230' GemEaui 

Entea 17400 12310 12500 12430 Hum 

FECSA 1330 1295 1305 1315 bneM 

Gas Natural 32090 31700 31700 31900 Lofmge 

Iberdrola 1820 18)0 1815 1815 Leqrsnd 

Pryor 3215 3180 3180 3135 LOreta 

Repsci 6410 4320 63J0 6380 LVAAH 

SevOana Elec 1500 U65 1465 1475 LyonEau 

Tobaarksa 8410 6220 8310 8200 MkMfeiB 

Tdeftmkn 45® 4470 4515 4520 PartnsA 


956 948 9S3 951 Investor B 

199 194.40 196 19630 AAaDoB 

974 942 972 944 Nonlnften 

749 741 765 744 PtamAtainhn 

374 371 37350 372.70 SantfvftB 

750 734 736 747 ScanlaB 

950 921 937 933 SCAB 

255 74940 251 JO 255.10 S-E Ban tan A 

1190 1171 1177 1183 Skandla Fore 

4334 4275 4305 4290 SkanskaB 

29350 291 293 289 SKFB 

257.90 25140 257 25480 SaafaantanA 

714 711 711 717 SfcraA 

992 985 990 984 SwHamflesA 

S72 563 568 543 VbMB 


Casfaa 29350 2901 293 289 

CCF 257.90 55540 257 25480 

Cefelem 714 711 Til 

QnWtonDta 992 985 990 

CLF-Deua Fran 572 563 5 a8 

Credll Agricoie 1265-101246.101245.10 1255 


SkanskaB 

SKFB 

SaabantanA 
Swa A 
SwHamflesA 
VWvoB 


High 

LOW 

Ctase 

Pro*. 

641 

6® 

640 

630 

327 316® 

326 317® 

307 294® 304® 

294 

695 

691 

691 

693 

425 41 B® 

423 

421 

269 

265 

267 

265 

267 

256 

265 

270 

283 

779 280® 283® 

249 

242 

249 242® 

236 232® 

235 

232® 

175® 

172 

175® 

171 

91® 

W® 

91® 

90 

331® 

324 328® 324® 

346 

342 

344 341® 

216 

21U 

214 20B® 

183 

177 

181 

179 

132 

1® 

132 

129® 

256 254® 155® 

255 

210® 

208 

210 

209 


Danone 
E9 -Aquitaine 
EridantaBS 
Eimxfisoey 
Eurolunna 


985 975 

444 451 

895 875 

8.95 8J5 
8.95 755 

742 723 


Sydney 


AflanGaartes: 2499.18 
PiMtODS: 249U0 


UPMKymrnepe 1K50 ISJfl 134J0 mio 
Vatmel 9010 B9J0 90 8950 


Bril Steel 
Brff Telecom 

BTR 

Small Crntnrt 


BartimGp 

CaMeWMess 


Hong Kong 


Htng5Mf:15225J9 
Previous: 1483U3 


Bombay 


Seosct 38 tafesc 432158 
PraWouc 437137 




;-ir9» 

Fv5° ! ^ 
■ta T? 

F *•- 


Bata Auto 932.75 B90 893J5 93X25 

HMntLner 1391 137250 138125 1393 
HtodujtPeflm 47950 471 4742S 477 

tad Dev Bk 10350 10150 101 50 10425 

ITC 34173 541.50 54350 545 

MabatwaarTel 299J5 281- 290 29750 

Reloncend 36158 3S550 356J5 363 

State Bk India 35259 34750 350 3S0JD 

Steel Aunwity 2550 2425 25 2550 

Tata Eng Loco 44450 43450 43950 44450 


,£ga 




Brussels 


BEL2BiBdKM92jl! 

PmteBU24MJn 


GASOIL »r£\ _ _ 


liter* - .. ■ 

Pro. ’* 


Ataunf ■■ 

Boren Ind 
BBL 

cm 

Cdnryl 

DeUtobeUnn 

Eleflrobel 

ElecJrafrna 

Forte AG 

Geroetl 

GBL 

GwBomjue 


tip COMP 


Sr SS 

•Uterus . . ' 

6SJ VLi-S *-■* .- 

T ViW • 

czctfi I MAT if. 


^ ^ ijrS^-s 


\ ferfleftoni 

J^owcffin 

Rovotofletm 

SocGenBds 

Soteoy 

Trocktel 

UCB 


8J5 820 8J0 8.15 

3150 30.90 31J0 3S.S0 

Cothov Podflc 1445 1185 1445 135S 
- - 78 7SJ5 77J5 74 

2X85 2X20 2X75 23 

4190 41.40 4280 41 JO 
4780 46J® 4JM 46J0 
4380 4M# 4380 42 

9JS 985 9.10 -9.1 D 

14 1385 

111 107 

885 820 145 8.15 

HoidersotiLd 4950 4825 6925 4825 

— jAKl 14.70 1450 

3050 2920 30.10 2920 

1820 1750 18.15 1750 

Hopowea Hdgs 498 465 493 463 

^ -« 741 245 241 

47 4S50 44J5 65.75 
Hyson Der 2130 2280 23J0 2280 

Shraon0Hdg 2155 2L35 2125 2145 

Kerry Prop* 19.10 19 19.10 19 

IS&r is . m, s is 

EaSkr % % a # 

- ■ 780 7 JO 7J5 725 

6925 6725 _6V 025 
■M IMS 3250 3150 3280 3180 

JnSoS^ w 1730 17.90 1720 


CobtaWMess 5.97 

Cndtnny Sdwt 574 

Carton Comm 519 

CommlUnton 682 

Compass Gp 613 

Cnorteakh 113 

Dixons 544 

Ekxteamponcnts 429 
EMI Group 12-01 

is saa a 

FwnCotatrid 188 

GefflActfdent 9M 

GEC 178 

GKN 9.99 


1222 1Z1D 12.14 1227 
835 8.10 &2S 804 

589 537 540 539 

421 414 418 413 

417 4A4 405 410 

1032 HUB 1026 1023 
8.14 723 7.74 721 

105 2.99 3 199 

1132 1123 1328 1325 
597 487 M3 489 

230 226 228 2J4 

6JT 4.10 638 6SM 

784 753 781 728 

4J8 431 40 4J3 

188 183 184 185 

440 434 434 478 

1.99 1.95 1.97 1.95 

1057 9.97 9.97 9.97 

127 124 124 126 

597 524 574 582 

574 551 549 559 

519 428 514 503 

482 659 676 548 

613 6 6 484 

113 385 107 3J» 

544 581 584 553 

! 429 424 429 422 

128! 1120 IV® 1124 
450 480 689 482 

688 682 688 685 

188 184 187 186 

984 825 9 887 

3.78 380 XJS 380 

9.99 9J7 9.95 922 


585 UotanFenoso 
577 ' VUencCemeot 


1245 1245 1255 1255 

2590 2540 2540 2540 


Manila 


How* 474 418 4MJ® 422J0 

Imeftrt 790 760 790 788 

Lafarge 391.90 384 391 389 

Lrorond 1135 1109 1127 1117 

LOW* 205 2441 2468 204 

LVMH 1500 1558 1571 1570 

Lyon Eau» 449 429 445 630 

MkhetinB 38450 37110 381 38180 

Paribas A 418 41220 411BD 41680 

Pemod Rknd 31430 309.90 310.10 31150 

Peugeot CU 417 406 610 605 

Pmaufl- Print 2948 2905 2939 2929 

Pnmades 2572 2540 2545 2515 

Renad 147 J0 14280 14680 1*23 


LyonEaua 

MkhetinB 


MkhetinB 

PortbosA 


Amcor 

ANZBUng 

BMP 

Bora! 

Brambles hid. 
CBA 

CCAmotfl 

CotsMyw 

Comakn 

CSR 

Fasten Brow 
Goodman Fid 
IClAustiuJto 
Lend Lease 


Ayala B 

Ayala Land 

BkPtflpU 

C8P Homes 

Manila Elec A 

AAeteBanfe 

Pelron 

POBanli 

PhBLongDW 

SanAVgueiB 

SM Prime Hdg 


1820 17 1820 17 

23.75 2125 23 2 025 

154 148 152 139 

9 JO cm 9 JO 9 

8620 84 86 8320 

545 495 530 470 

6JS0 MS &30 MB 

75720 240 240 740 

m 900 935 850 

6320 57 6320 52 

720 7.10 780 7 


Rexel 

1810 

1770 

1780 

Rt>-PoirtBiKA 

261® 25720 261® 

SiwiiUl 

570 

563 

565 

Sdmrider 

332 

338 

330 

5EB 

1079 

1062 

1069 

5G5 Thomson 

508 

500 

50! 

SloGeMTOte 

«S 

681 

«n 

Sodesho 

3050 

2967 

3Q5f> 

51 Gobofa 

874 

840 

869 

Sued 

!(W» 

15J< 

1628 

Syrtbetobo 

77B’ 

760 

7® 


2S7 

542 


MlMHdB 
Nat Aust Bank 


Nat Aust Bank 
Nat Mutual Hdg 
News Carp 
Pacffic Dunlap 
PtonwrWn 
PI* Broudajsl 
B»Ttato 


823 880 881 888 

1025 9.99 10.15 10.10 
1887 18.73 1825 1827 
480 436 438 430 

7655 2615 2682 2615 
16.40 1631 1634 1624 
15 1480 15 15.12 

699 680 680 689 

&8B 483 683 620 

533 524 537 534 

284 280 284 281 

182 128 128 181 
1229 12.58 1220 12.73 
2820 27.55 2785 28.15 
T-8S 182 183 183 


2.16 

215 

115 

2.15 

6® 

6X1 

6X3 

6® 

176 

3M 

174 

171 

5 

4.95 

4.96 

498 

8 

726 

7.96 

722 


PAGE 13 


Investor’s Europe 


Frankfurt 

DAX • 


London Paris 

FTSE 100 Index CAC40 


D f ' «BB A fr . 3000 

- J «» n* 2800 n/ 

s y ^ 

ijy' m 2400 


F M A M J J 

1997 


F M A 
1997 


M J J M A 


Exchange 


Amste rdam 

Brussels 

Franfcfart 

Ooprnihagen 

HateWd , 

Oslo • ; 

London 

Madrid 

Milan 

Paris 

Stockholm 
Vienna 
Zurich 

Source: Teiekurs 


AEX 

8£L-20 

DAX 

S fQcklifetfkaT ' 
HEX Genera 
OBX 

FTSE 10Q . . 

Stock Exchange 

MJBTS- 

GAC.40 - . 

sx IS 

ATX 

SR 


Friday Rev. 

Gtosa; • . Ooae j 

93&S* 024.17 

2^41 2,486.81 
4,040.97 3,99238 
€24.77 618^3 ■ 

3,384^9 3.37T4X 
676.49 67038 

4^99.08 4,767,80 
G2L48 621.82 

14018 13828 

0941^9 2.S&9.09 
3,47021 3,43075 

1^38085 1.385,30 
O6S1.10 '3,m^ 


InicraauiHul tfamkl TnNn; 


Very briefly: 


• Willis Corroon Group PLC said an unexpected increase in 
the liabilities of its Sovereign Marine & General Insurance 
Co. unit would force the wholly owned subsidiary into 
liquidation. The British insurance broker also agreed to buy a 
one-third stake in France's largest independent insurance 
broker. Gras & Savoye. 


conducted solely on competition 
policy grounds and not on a political 
basis," the U.S. representative said. 

The European Union will make 
its decision on July 23. The EU has 
no authority to block the combin- 
ation but could impose fines of as 
much as 10 percent of the com- 
pany's revenue. 

"We will look carefully" at what 
the EU decides, Ms. Barshefsky 
said. 


They would concede almost half of 1 1 percent to 8.95 francs. In Lon- 


Euro tunnel's equity to creditor don, the stock closed 7 percent 
banks in a debt-for-equity swap, lower at 76 5 pence (SI. 29) after 


rising as much as 9.5 percent to 89 
pence. The stock was suspended on 
Thursday. Most analysts say the 
stock is still overvalued even at its 
present level, about one-fifth of its 


• The BBC will invest £15 million ($25 million) in re- 
organizing and reinforcing its foreign news operations. Bu- 
reaus in Brussels, Moscow, Hong Kong, New Delhi. Jo- 
hannesburg, Washington and Jerusalem will be upgraded to 
regional hubs. 

• General Electric Co.'s bid for the assets of Siemens AG’s 
defense unit was cleared as Britain lifted an eight-year-old 
restriction that had blocked the British company's effort to 
combine its military radar unit with that of the German 
company. The unit, Siemens Plessey Systems, which has 
annual sales of $1 billion, was put up for sale in February. 

• France's consumer-price inflation rate was at a 40-year low 
for the fourth consecutive month in June, indicating sluggish 
economic growth was keeping companies from raising prices. 
The statistics institute IN SEE said prices were unchanged or 
fell 0.1 percent in June from May and were up by between 0.9 
percent and 1.0 percent from a year earlier. 

• LVMH Moet Hennessy Louis Vuitton SA, the French 
luxury-goods company, will replace the chief executive of its 
Hennessy cognac operation. Henri de Pracomta], with Chris- 
tophe Navarre, director-general of Interbrew France. It will 
be the Erst time that someone who is not a member of the 
Hennessy family will run Hennessy. 

• Russia's president. Boris Yeltsin, told factory workers they 

should not tolerate corrupt or incompetent bosses, whom he 
blamed for the fact that millions of state workers were owed as 
much as 14 months' back wages. Bivumbem. Reuters 


The Trib Index 


Prices as of 3.VC PM New York time. 


Jan 1. T992 - 100. 


World Index 
Regions! tocfaxna 

Asa/PaaS c 
Europe 
N. America 
S. America 
Industrial mounts 
Capital goods 
Consumer poods 
Energy 
Finance 
Miscellaneous 
Raw Materials 
Sendee 
Utilities 


Laval 

Change 

% change 

year to date 

% change 

179.35 

-0.39 

-O 22 

420-26 

129.29 

40.91 

40.71 

44.75 

186.94 

■0.71 

-0.38 

415.97 

208.20 

+0.07 

40.03 

-t-28.59 

185.54 

■5.03 

-2.64 

462.14 

226.58 

+0.74 

40.33 

+32.56 

200.09 

-0.47 

-0.23 

423.95 

198.10 

+0.27 

40.14 

+■16.04 

134.50 

+0.30 

+022 

415.49 

180.69 

+0.58 

40.31 

411.69 

183.82 

-1.63 

-0.83 

+10.51 

169.75 

-2.18 

-127 

+23.82 

181^5 

-1.74 

-0.85 

+28.76 


The Intommonal Ha/akt Tribune Wtiria Stock Index G tracks the U.S. ttoBar values of 
280 ntemabonaBy mestabte stocks from 25 commas. Far more information, a free 
booklet a avaUabkt by wrong to The Trib Index. 181 Avenue Charles de Gauge. 

92521 Neuify Codex, France. Compiled by Bkxmbeig News. 


22 11 .IS HX1 2122 


Mitsui Furtan 1550 

Mitsui Trust 731 

MurotaMfg 4440 

NEC 1420 

Nikon 1920 

NAkoSec 679 

N Hondo 10200 

NIppEwnss 860 

Nippon Oil 598 

Nippon Start 355 

NtawWta 867 

uirar 224 


ThorrwonCSF 
Total B 
Ustaor 
Mi too 


17668 167.50 169.60 149S0 

403 592 400 592 

112 110-30 11060 111.90 

404 394 39fl 40060 


WnfaocBUng 

Woads&ePet 

Woohrortfas 


Mexico 


Batao tarter 4QMQ1 
PiiitansrtMUO 


Alfa A 
Bonocd B 
CWmstCPO 
CHtaC 

Emp Modern 
GpaCana A1 
Gpo F Bcomsr 


5720 5630 5640 5720 

212S 2030 2055 3120 Brndac aj 

3920 3825 39.15 3920 BroimoPI 

1420 13.90 1420 13.90 COT £ PI* 

4600 4720 47.90 *.00 CESPPfd 

5820 5760 57.0J 5820 

261 2_S2 260 260 EtotabaH 


Sao Paulo -xSSiSS 


Taipei 


8X9 

856 

8X0 

8X7 

NICK 

7.9i 

729 

7® 

721 


811 

801 

8.10 

8.03 

llTT 



11X8 

11X7 

NTT Do to 

434 

420 

420 

427 

Op Paper 
Osaka Gas 
Ricoh 


figb Low Clase 

1550 1510 1530 

712 7Z5 

4440 4400 4440 

1420 1590 1420 

1920 1840 1900 

679 447 475 

10200 9670 1 0700 

860 841 847 

59B 586 S92 

355 257 354 

847 555 867 

224 222 223 

1440 1410 1430 

1090b 1070b 1090b 


Stack Mortaf tadn: 939463 
PradHsi 942924 


Bmdescopfd 
Brohoiu PMh 
C erotaPfM 

CESPPftJ 


Gpo Fin tatoursa 3615 35ifi 35.90 353)0 
KknbUarkMw 37® 3698 3 698 37 jn 


11690 1120 11650 11640 
8056X1 ??tUM 501-02 79600 
6260 59290 62J0 60.00 
8300 81-00 82.10 82.97 
22JOO 21690 21690 223U 
691.00 680 j00 68920 69600 


Cattery Lite Ins 
Chang HwaBk 
ChtaaTungBk 
CMnaDevctamt 
China Sted 
FinJBank 
Farnusa Plastic 


1® 144® 

145 

1* 

119 

116 

119 

115® 

86 

87 

83 

85 

165 

161 

162 

163 


KknbCtarkMw 37JU 3698 3&W 37J80 

TetevfuCPO 12660 12660 12601 12450 

TeUtexL 2165 21JOO 2125 7125 


GtaMMHaoaw 13.92 1304 1118 133)1 


Heratentei Ld 
HKQrtnaGas 
HK Electric 
HKTataoma) 
HaaaweflHdgs 
HSBC Htft 
Hatctespn 


14X75 14175 14225 14200 
7500 7460 7490 7460 Kerry Pn»» 

TOO 9470 9710 9480 NewWtaSOei 

3220 3175 3270 3190 Oriental Piw* 
19S® moo 19350 19450 Puart Oriental 
1955 1948 TWO 1940 SHK Preps 
700 7«® JB10 7800 SbunTiHdfli 
3530 3580 3S90 SJnoUjnriCo- 
8010 7900 7910 79® SBlOwaPCSl 
3300 3270 3300 3300 SwtePocA 
6090 £OJ0 6010 mo Wharf HdpS 
1 5150 .14906 14975 14925 WlRXtock 
15300 14925 15125 14900 

13550 13500 .13550 1355? 

5000 4950 4950 4985 
11050 10950 turn hod Jakarta 
3670 3630 3450 3400 
22000 21750 21775 21825 Adnllril 
15075 14875 14875 15000 n*wita«m 
129SS0 1285SD 129000 »8B00 


Granada Gp 
Grad Met 
GRE 

GnenoisGp 

Gutamss 

GUS 

HsSc HMg* 

I Cl , 

topi Tabaan 


MtBTMuaaHca: 1401800 

Pravhm; 1382860 


18 1730 17.90 1730 


Jakarta 


CBMMltetattac 72362 
^^Piwrtom: 729.15 


Copenhagen 


Sock tadw 42677 
Pnvta*R41U3 




Astro tail 8475 8525 MW 84g 

Bfctatllndon l»0 11B0 1900 OT 

Btfeoarn 1525 1475 1S25 ISO 

GudraoWni ^ 2m 

iter* £S s s fl 

todtod 7450 7400 7425 7525 

ScmpMjno KM WOO taK Mg 

SMMGndk 5,50 SS S 

TetekanuoflUB' 6050 3S00 3925 4100 


Udyds TWGp 
Lucas Varily 
Maria Spencer 
MEPC 

NarioadGrid 
Nidi Power 
NalWBt 
Ned 

Norwich Unlan 
Orange 
p&o 
PttHMO 

Premier Farad 
PradenW 
Rotate* Gp 
Rank Grata 


1675- 1869 1824 1654 

613 7J4 611 729 

3.71 364 165 147 

726 TM 7.16 7.CB 

220 - 262 7M 262 

9-37 922 925 927 

221 265 268 267 

445 423 429 632 

421 662 657 464 

1.93 122 122 225 

522 562 5LS3 5L3S 

5.12 499 


Afleoma Asstc 
Bca Canni ltd 
Baj Fidearani 
BcarflRaaia 
Benelton 
credits Haflano 
Edison 

ENI 

Flat 

General AaiC 

IMI 

INA 

Ittegn 

MeSasct 

Merfioteroco 

MaaledlEDn 


612 499 612 498 Ofiverii 

1193 1X82 1X91 1X85 p amwtal 

268 229 267 261 

561- 631 640 628 ras 

8.75 863 868 652 RobBanea 

722 768 7.19 767 5 Paolo Tartar 

324 3.18 119 324 Stet 

2 M 1 m % T^canitafla 

662 633 634 635 TMA 

683 647 676 647 

121 1.17 1.19 120 ; 

7.70 760 764 729 

AM 455 455 455 «QOU 

m m 691 564 

76S 7.18 7.18 7.18 


14450 14100 14450 14155 
42S0 41i» 43® 4100 

5945 5765 5946 5 — 
1354 1330 1349 ?_ 

16600 76050 26150 26300 
3785 3540 36X 3750 

MBS n*m 8800 B640 

10270 10109 11070 HUM 
4380 4245 63S5 62g 

33050 31 950 32950 32200 
14325 15840 16145 1&S35 
2610 2570 2590 **•* 

5350 5300 5325 

7725 7400 7645 7710 

11440 11170 11290 11195 
1157 1134 1142 1140 

482 473J0 481 476 

2495 2435 2455 2450 
4250 4190 4230 41OT 


rnrooras rra 
PauSstaLin 
SUNadmri 
Sauza Cnn 
TeMnasPtd 
Tetemig 
Teteri 
TcSbspPW 
llnflianm 
UstorinasPM 
CVRD PW 


512.00 rnm 499.99 50600 5®YoPta^C 
TJ0.00 31700 32619 325X0 Stan Kong UK 
TSS 193JXI l^og TataanSete 


1610 1600 HUM 1610 
173.00 16600 167.00 173.00 
19600 18601 189.99 19S90 
17150 167.00 167X0 17X50 
3S4J9 »J3 370-ffl? 385X0 
44.99 4350 44X1 4400 
1325 1367 1321 1365 

3610 7859 29.10 29X0 


29.90 2920 2920 29M 

119 11450 1165D 115 

Fomosa Plastic 49 47 6750 4850 

... J2P , |4 ]I9 116JD 

46 64 M3» 45 

NmYaPtafia 85.5a 8250 83 8450 

114 107 109 115 

135 127 13050 127 

5S5D 51 54 5550 

Sec 145 no 141 140 

IMWoridCMi 72 70 7050 7150 


NTT Data 4750b 4740b 4570b 

485 467 6® m 

321 315 318 321 

RKah 1540 1520 1540 1530 

Ratal 12900 12600 12OT 12500 

■ * "- — 762 775 779 

3920 4000 3990 

1540 1490 1540 1500 

494 488 490 494 

B320 B230 8300 B?3» 

SetauRw 5500 5450 5450 5516 

SrtfcuiCfon 1060 1020 1IM0 WTO 

SetoulHoow I1W 1100 1TB0 1180 

Seven Elown 8930 8T» 0930 8790 

Sharp 1520 ififfi) isio isio 

Sh*0*U 0 Pwr 1970 19S0 1960 1970 


SdcraBk 
Sankya 
Somra Bank 

Sanyo Elac 
5eaw 


Coraposifa tadoc 74630 
^Parham 74727 


Tokyo 

AAnanata 
Ml Mppon Air 


MdM225;19875L49 
PmtaMK I97547S 


KaroaBPw 
Korea Each 8k 


AsahiBonk 

AjaHCnem 

AsaMGtaB 

BkTakyoMHsi 

EtaYUudKnia 


106000 102000 102000 104000 AsoWGte 

7920 7600 7750 7750 Bk Tokyo Ml 

22200 21800 22100 2OT0 BkYrtadKun 

.14800 14100 141® If® Bridge*** 

m00 273® 278® 27600 Qmoe 

Korea Each 8k 5OT 5750 53» 5750 OwbuSK 

Kara Mob Te! 4900® 4800® 4850® 49MM aiugofcuEIc 

LGSefldcaa 3088 3NH» 36800 3400 DaiNtepM 

Potonfl tons) 638M 62aw 632® 638® Dold 


144® 141® 14210 14200 Samsung DUay 463® 4STO3 44000 46M0 


229® 72050 229® 22050 
145® 141® 14540 1 459? 
10285 101® 10155 10070 
40® 5555 MOO 5&$ 
®1B 5715 5745 S7« 


690® 477® 480® 49000 
106® ICQ® IDS® 104® 


Singapore 


Strata IImb 1967-14 
PTOrfOBV 194634 


Montreal 


lidKtrWitadecSSCIJV cm^E^T' 
Proriovs.-351M9 SnSfc* 


BOO Mob Com 

CdnTkeA 29 Z7XS 27.95 » 

lf 7 CdnUBA 3325 3720 3325 37 

tm CT RrriSvc 38 Vt 38te 38» 38 

GoMetra 11X0 1635 18X0 1645 

GFWestUecD UJO m WS 33.90 

tfo tousco 42.95 42K 4X65 43 

■gc tmtstorsGfp 31.95 3145 31.95 3175 

5^2 LnbtawCos 21U 21.10 2lta 21.10 

Ail H®8k Canada 17X5 1720 17.® 17X5 

fiS PoTOto 34J0 ,3» 34J0 V 


Rw-? 7 - . 


BGBank 410 39S 397 390 'SamfleflMHM 

CdrttbetgB 3«- 343 347' 347 SemwGwdk . 51SB SMS 

CodonFan 9®- MS 945 950 TetetasnunOnn MSB 39® 3925 41® 

Oanhai -.423 409 ttl"m " 

Den Datake Bk 740 739 750“ 742 — 

COSSwndtegB 395494 300® 39S0M 380000 

M 17120 2730® 2450® 2700® 2650® Johannesburg 


FLSIndfl 
KobLtdthovm 
NTONDtOMiB 


■i . sir. ttssa 

7 5*--. Jn^wbca 

* V ^ p. I ’ £ \: : Uadnnrnmk 

*• =‘ ; r 3Z : '* y Frankfurt 


232 . 232. 233 

740 780 755 

728 734 729^1 

945 979 979 

370 373 . 344 

393 4® 394 

430 443 429 


DAX: 4848X7 
Pnvtan:3992JI 




r . AMB8 
tr AdKka 
|A i Attorn Hdg 
S'- i Mkoifl 

W * RkRwh, 


AngWAmGo* 
AngtoAsBlnd 
AVMIN 
Barton 
CG.SaOt 
Dt Beets 
Qriefonteta 
Fit Nafl Bk 


Bta 32X0 32 

Kd 269® 24650 

S imS 26750 
243 25650 
d . 196 193 


3^2 

270 770 
248 268 
240 760 
194 196 


Rertmd 
Reed Irta 
RentoUtaHM 
Reuters Hdg* 
Rexam 
RMC Group 
Rods ROOT . 
RnydBk5cDl 

RowS^SuaAll 


44 4320 43® 43X0 
28 27X5 27.95 28 

3325 37® 3325 37 


381k 38te 38 Si 38 
II® 1635 16® 1645 


10X8 10.11 mu 1024 
463 4X4 46! 4X6 


CHy Dovta 
'^-Cantone 
Farm fir 


1350 13.10 T3J0 13® 


®® Chugoku Elec 
400 MNtapPrM 
TOT Dalel 

W-MUItanB 
MOO DalwaBank 
04® Datna Howe 

Date® Sec 

DDS 

17.14 Denso 
*34 Japan Ry 
Ebai 
550 Fanuc 
6X5 FuflBonk 
130 FufiPbota 


14.10 13® 1170 

0® 02B 029 

1920 W 19.10 

470 454 4.70 


IBdJ IWW rusn- n.« . . . . . 

33 Vi 3365 32.» 


Fraser S Heave 1020 10.10 10-10 >030 


31.95 3165 31.95 3125 
2111 71.10 2IW 21.10- 


1460 1450 1450 1450 
49® 49X5 49® 49® 


F7 HP-’?." 1 . 

W C-. r •’ •' ' 

if j--. -res' 


Bk Berta 
BASF 

Boyer Hypo Bk 


17® 1720 17® 1705 FstNof 
231® 22450- 226 22450- Gencnr 
419J9 407® 416 dS6® GFSA 

>92 m 186 18&I0 bnpOT 


47.73 66.55 4497 47® 


imperial Hdgs 

IngweCaai 

taw 


Bayer Hypo Bk 5*55 55.70 5450 54® Jrtnwnhidl 

Bgy.vtnmbanfc 7470 7410 75® 72.70 Liberty H«s 

8oyw 73.35 72.fi 7245 7X90 




Bmendari 

Bewag 

BMW 

CKAGCoteu 
Lornmevzbonh 
DoimterBenr 
Degussa - 


90.90 89® 89® 9020 


1487 1480 1486 1475 
?450 173 176. 175 


174® 173 

• F7» 51.25 


5326 51.25- 52 5088 

1« 144® 14605 144® 
92X0 91® 92 92.10 


UMJfe Start 
Mtaorco 
Wampafc . 

RetBbtandiGp 

Rtehenua) 

RusIPIafinuro 


25® 25 25JIS 25® 

16450 145® 164® 164® 
32® -3125 3025 3025 
3450 34® 34® 36® 
1925 19® 19® 19® 
96 95® 95 95 

64 6225 61® 63® 
» 25® 26 24 

190 2J6 2® X84 
65.75 4525 6525 6425 
363 360 362 362 

!« 1® 139.75 1®25 

17X5 17® 17® 17® 
1® 99® 99® 99® 
19® 1465 19 19 

10025 9925 9925 99.75 
47 4425 4475 4475 
7125 7025 70® 70® 
77 75® 75® 75® 


SaiitttetV 
Sdwdera 
Seal Newaufle 
Scut Power 
5ecurttof 
Severn T rtf* 
Shcf TronspR 
Sta» 

Smith Nephew 
SrnOhUbK 

StaBKlnd 

SAemEtee 

Staaeanb 

BitS" 

Tesco 

Thaws Water 
31 Grow 
UGrtW 

Tonkins 

Unilever 
Ute Assurance 
UtdNews 


195 326 

.430 4.19 


34® 3415 
27Vi 27® 


35M 36® 


17X5 17® 1X56 17® 
7X7 7.10 7® 7X6 


925 935 
6420. 65® 


36U 3440 
2714 27W 


925 925 
66 65® 


■tori Mathew! 

ssH 

ssd 

KUntaWP 

PwhwyHdgs 


N.T. N.T. 
348 3X4 


0.78 HadrtunlBk 
19 Hrindti 
454 Honda Motor 
020 LBJ 
2X1 HI 
7® Itochu 
3® Rb-VUado 
6X0 JAL 


1170 1140 11® II® 

747 731 746 734 

mo 34® 3*o mt 

869 855 869 869 

452 640 X50 656 

1ES0 10® 10H8 1080 

211D 208S 2090 wn 
600 596 599 6® 

2318 2590 2710 2®0 

3280 3170 3270 3190 

2070 2Q50 2060 2070 

2010 1958 1980 2010 

2530 2490 5530 2510 
707 695 » «5 

1410 1370 1410 1390 

518 511 511 519 

1390 13® 13® 13® 

868 899 867 899 

8770a 8150a 8230a 8790a 
2860 2770 Wm 2790 
S800a 57589 575ta 5830a 
2520 24TO 2480 2520 

4320 42» 4290 4280 

1540 1510 1540 1510 
4700 4630 4490 4650 
1630 1600 1630 M10 

1140 1120 11® 1130 

128) 1260 1260 1270 
3490 3400 34® 34® 
1590 1560 1580 1570 
603390 3P0 401 

565 556 558 570 

6850 6680 6850 66® 
535 526 577 534 


SUnttu 
Slrtn-etaiCh 
SMseido 
Shinjoka Bk 

Scflfcor* 

Sony 

Sumitomo nw 

SumflamoBk 1770 

SaainOiem 510 

Sumitomo Elec 19® 

SuaiDMatal 
Samd Trait 
Tabha Pimm 3170 

TokedaChnn 3320 

TDK 8770 

TotokuEPwr 2020 

TokoBtok 1050 

TokioMarims 1440 

Tokyo El Pwr 2270 

Tokyo Electron 6170 

Tokyo Gos 
Tokyo Corp. 

Tanen 

Toppan Print 1800 

ssr 

TwJem 
TojuTnrst 
Toyota Mote 3310 

Vbnanmidil 3010 


S28 622 

3850 1 31-50 
1890 1890 

1220 1230 

7200. 7250 
9680 9870 

1070 nw 
1730 17® 

500 503 

1930 1950 


Moore 

Newbridge Net 

Notsndalnc 

Horan Energy 

Whom Telecom 

Now 

Onex 

PancdnPetfan 
PebnCda 
Placer Dome 

Pucu Pettm 

Potash Sask 

Renrissance 

litoAJgom 

RoaereCaRMS 

Seagram Co 

SheflCdaA 

Suncor 

Talisman Eny 

TeckB 

TetegMw 

Ttaus 

Thomson 

T otPomB ank 

Tiun&rWVa 

TransCda Pipe 

Trimark FU 

Trbec Hahn 

TVXGrrid 

Weskuast Eny 
Weston 


High Law 
2720 2725 


71.15 6BJJ5 

28X0 2825 
33L60 32V. 

137X5 134U 

12.15 12 

28i« 27V 

28V 27Vr 

23X5 2320 
71.10 20L3S 
m 1335 
149x5 IIB 
36U 34U 

34X5 34® 
25.90 25X0 
5485 5416 

21 20X0 
37 36X5 
43® 43 

26X5 26 

52 51!* 

25.90 2580 
34 33 

42X0 42.05 
16® 1614 

27.70 27J0 
61 60.10 
2985 29X5 
455 6® 

2585 25W 

91® 91 


Vienna 


ATX tadee 138485 
Previous: 1385® 


Ykananoudil 

cxmkxMOO 


302 

305 

308 

1090 

1120 

1090 

3120 

3140 

31® 

3270 

3290 

3298 

8660 

B76Q 

86® 

1990 

1990 

2000 

1020 

1040 

104D 

139® 

1410 

14® 

2240 

22® 

2270 

5890 

61® 

5880 

313 

313 

317 

Ml 

6Xt 

6® 

1220 

1220 

1210 

1770 

1770 

1790 

807 

812 

809 

705 

786 

712 

2880 

2890 

79® 

906 

906 

905 

32® 

3310 

3230 

2980 

3000 

2990 


Boehtor-Uddeh 104V 1037® 10401039® 

CiwntunslPM 53S 515 535 518 

EA^eneral 3508® 3431 3471 3465 

EVM 1625 15® 1580 1605 


FlughafenWIen 534 525 527® 5» 

OMv 16® 1633201636® 1650 

OeriEleUite 871 864® 864® 866 

\msm 600 585 59190 588 

V A Tech 2458 2380 2445 2399 

WlenerbergBou 2602852552® 2555 25® 


Wellington NzsExitada:H|i48« 

Pterions: 250721 


AirNZeeUB 

Brieitvtavt 


Toronto 


T5E tattadrials: 6632J9 
PreriOUK 6X92.92 


Uon Nation 
Telecom NZ 


4X0 

457 

457 

460 

1® 

127 

1® 

136 

173 

1X7 

170 

167 

4X3 

439 

4X1 

4X0 

490 

475 

485 

425 

2JS 

1.99 

102 

2.10 

3* 

3X2 

3X7 

3X6 

188 

3X0 

188 

3X2* 

7X7 

7X6 

m 

7X2 

1123 

1123 

11.73 

11.70 


Alberta Energy 
AknnAhn 
Anderson Erol 


28® TV* 
349} 36 


48Vi 45 
171* 17.15 


5716 57.10 
64.90 64® 


2885 27® 
34 34te 
48X0 47.95 
17X5 17® 


Zurich 


tenn Tobacco 9090a 8900a * 9030a 


14X0 1470 1490 li» 
9® 9® 955 ?4S 


416 433 
223 225 


Sing Lund 

Oslo OBX tortaB 676X9 SfngPrnF 

0810 Pnrioas:67U6 

Aker A US lg 1® 1*® 

Or A 184® 183 184 183® Uld Industrial 

>Bk 2410 25® 25.90 25® UidOSeaBkF 

— runkcBk 30® 29® 30® 29® WlngTBlHiKp 

Ekom 148 143 143 147 n toirc/M^, 

HaMundA 45 44 44 4450 -aUAMan 

KvaemrAta 446 440 440 442 ~ 

NcShy^ 394® 391 39450 W StOCkhbl 

NnnwStagA 274 27050 274 370 

NyceawdA l»® 13B 139-SD 13? . _ . _ 

Rule Aw A 5® 562 554 565 AGAB 

^itoSvc 367 355 367 355 ABBA 

PettroA • 146® 144 1® 143 AteDaiMR 

Urf 147 1® 1® 147 AsbnA 

Transom OH 5® BO 552 Alien Copco A 


12-05 1187 1285 11® 
723 7.10 723 7,12 


UidOSeaBkF 

Wing Tot Hdgs 

*kiU& dOtots. 


17.72 17X5 17® 17® 
437 4® 434 430 


13® 13® 13® 13® 
7® 6X5 785 7 

28X0 28 28X0 

174 3X6 3.72 J® 

2X1 2® 2X1 2® 

xn 275 27& 1-77 

187 I® 186 .!-?7 


Jusco 

Katna 

KmooEfcc 

Kao 

KniauUHvy 
Kim Steel 


3520 3400 34® 37® 
618 6® 612 622 
2170 21® 2170 2170 
1640 1420 1640 16® 
536 530 Ol 

£6 353 354 3® 

493 680 685 692 


7 

KMBmmrr 

nw 

11® 

11® 

2*30 

Kobe Steel 

203 

TOO 

200 

170 


880 

8X1 

872 

155 

Kubota 

525 

516 

S2S 

J.77 

Kyocera 

92* 

KUO 

9130 


15X0 15.10 IS® 15-TO 
436 424 434 


Stockholm 


66® 46.90 46® 


AGAB 

ABBA 

AssOoimr 

AsbnA 

Alin Copco A 
Autoliv 


SXl 6 tadee WMJ 
Previous: 

108 109 JOB® 

no 11a® no® 

230 235 731 

ISO 152® »g|0 
224 229 222® 

2JB 299 298 


Manrtnni 

Matui 

MabuCamm 
MU® Elec bid 
MakaEteeWk 
Mtaubtehi 
MfflsubfahlOi 
Mtaubtehi El 
iMtaubaMEri 
Mtaubtehi Hvy 

AMabfahtMM 


729 222® Mtaubtehi Tr 
299 Mitsui 


2020 2000 2010 2010 
431 414 428 414 

4» 488 495 4* 

21® 200 21® 21® 
4540 4440 4480 45® 
2310 2283 2300 2270 
»« 1270 1290 1280 
1300 1290 1290 1300 
351 340 351 348 

648 635 645 645 

16® 1610 1610 16® 
862 853 S5B 861 

765 JX 760 757 

16® 1610 16® 1&» 
11® 1070 11® 1080 


BCE 
BCTeteamm 
Biochcfli Pbarm 
BombanfierB 
Browns A 
f iu —m 

QBC 

Cdn Nafl Rtf 
OtriNatRts 
CdnOcntfPal 
CdnPadflc 
Corn toco 
Masco 
Derate 
Denote* A 
DoPonlCda A 
EdperGnxqt 
EuraNevMog 
FotrfmRiri 
Fatcnttridge 
FkrtcherChalA 
Franco Nendo 
GutfCdnRrt 
imperial Oil 
toco 

Loewen [Group 


3t» 29® 
42-- 41.90 


57X5 SIX 
6485 64X0 


SPUadM 3461.10 
Provt9PK37W.98 


m 3110 
30® 2925 


SOW 39.95 
41.95 42 


33X5 3285 
34W 34® 


3135 BW 

29® a® 


49 405 
3635 MA4 


33® 32,90 
34® 3430 


65 64 

36X5 3W 


48X5 49 

36® 35x0 


35® 34® 
3970 39V. 


- - M 
36X0 37 

34® 35H 


ABBB 
Adecco B 
AluswsseR 
Ares-Sorono B 
AtdR 
Boer Hdg B 
Bo torse Hdg R 
BK Vision 
□baSpecChem 
□oriardR 


Cid Suisse GpR 

EleWrowalttf 

Ems-Chemle 

ESECHdg 

HotdKbonk B 

UechtewtLBB 

Nestle R 

KtaOrfeR _ 

OeiflknBuebR 

Pargcso Hid B 

PbwmVbnB 

RieheiKHdA 

PneftPC 

Roche Hdg PC 

&BCR 

SchinrtorPC 

5GSB 

5MHB 

slrtarR 

Swiss Reins R 

SwssairR 

UBS B 

WMerthurR 
Zurich AuurR 


37 36W 
31® a® 


39X5 39Ui 
36® 37 


13.15 12.90 

3oi* ais 

31 ®!6 

_ a 2195 
36.90 1516 


397 395 

26.10 25X5 


23.15 2285 
62 61.05 


II® 11® 

72 71 


MnqnatolA 

Me t ha ne s 


40X0 40® 
49>* . « 
2DJB 19. 
4.15 ® 

19 119p 
8* 85U 
1385 1195 


31.10 a® 
1115 13. 

30X0 ais 
31 31 

23 21® 
36® 37.10 
396 395 

2» 26® 
2385 2115 
62 62 
11 ® 11 ® 
71 Vi 72.15 
40® 40U 
49X5 49X5 
20 19® 
*15 *10 
18® 18.90 
86 SL40 
1385 12.90 


N.T. N.T. 
568 570 

1433 U45 
2320 2320 
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INTERNATIONAL HERALD TRIBUNE, SATURDAY-SUNDAY, JULY 12-13, 1997 


PAGE 15 


ASIA/PACIFIC 


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Speculating on Speculators 

Pressure on Peso May Have Arisen in Philippines 


BUiumhem Vm 

MANILA — President Fidel 
Ramos blames “outside sources*' 
for driving down the peso, which 
the government let slide Friday un- 
der attack by speculators. 

But if Mr. Ramos needs to point 
the finger at speculators who 
‘ forced the Philippines to devalue 
| its currency, he might want to Starr 
'.'in his backyard. 

The Philippines’ restrictions on 
trading its currency in forward mar- 
kets — that is, making bets on what 
the peso will be worth months or 
years down the road — make it very 
difficult for foreign speculators to 
roll the dice on the peso. 

So the currency traders in the 
dealing rooms of Manila’s own 
banks may be behind an attack that 
will reap big profits now that the 
Philippines has surrendered and let 
the peso slide, analysts say. 

“Ircan't be the foreigners,” said 
Malcolm Robinson, who manages 
a hedge fund at Richmont Asia- 
Pacific Ltd. in Hong Kong. 

The peso fell 11.5 percent im- 
mediately after the centra] bank let 
:&(ii slide Friday morning, saying it 
. ' ^ would no longer buy pesos or hold 
a key interest rate at more than 30 
| percent. The dollar rose to 29.45 
pesos, its highest level in almost 
four years. 

it is not surprising that Mr. 
Ramos would blame foreign in- 
vestors. They have taken lots of heat 
in Asian currency markets lately. 

Last month Thailand accused 
the American financier George 


Soros of leading an assault on the 
baht that cost billions of dollars to 
defend and led Thailand last week 
to devalue the currency. That 
courts the risk of higher inflation 
and hobbles companies with lots of 
foreign debt, which they must now 
pay back in weaker balit. 

As the next domino in line, the 
Philippines had to raise a key short- 
term interest rate to 32 percent to 
keep investors from fleeing Phil- 
ippine investments, which become 
less valuable if the peso weakens. 
Yet that also threatens to choke off 
growth by making it prohibitively 
expensive for companies and con- 
sumers to borrow. 

The benchmark stock index had 
fallen 11 percent since Thailand 
devalued the baht nine days ago, 
and is down 21 percent this year, 
the second-worst performance in 
the world. Pressure had built on the 
central bank and the politicians to 
let the peso depreciate as fund man- 
agers watched their stocks slide. 

“Companies wouldn't want to 
borrow at such high rates, which 
could have an impact on the econ- 
omy,” said Joel Mendoza, re- 
search head at Banco Santander's 
Manila office. 

Forward contracts allow spec- 
ulators like banks and hedge funds 
to sell a currency now in hopes that 
it will fall and they can buy it more 
cheaply in the future, the difference 
being their profit. 

Forwards are also used by 
companies and big investors with a 
real need to hedge their losses 


should a currency begin to drop, 
although they probably represent 
□o more than a fifth of the SI 
trillion traded in the currency mar- 
ket every day. 

Companies that do not hedge for- 
eign-exchange risks ignore this pro- 
tection at their peril. Siam Cement 
Co., the Thai company with the 
most foreign debt, said Thursday 
that it might be driven into a loss 
this year by the baht’s devaluation. 
The company expects earnings to 
drop by $330 million if the dollar 
rises to 30 baht from around 29. 

In the case of Mr. Soros, his 
associates later said they had taken 
a beating in attempting to force the 
baht lower by betting that Thailand 
would devalue it even sooner. As 
the Bank of Thailand fought dog- 
gedly to hold the baht up, it stopped 
lending baht to foreign investors. 

That took away the speculators’ 
main tool, because without a sup- 
ply of baht, they could not spec- 
ulate on where it might end up in 
the future. 

The Philippines did not have to 
go that far because it already bans 
forward contracts on the peso. 

Companies and investors can 
hedge their foreign-exchange risks 
by using what are called nondeliv- 
erable forward contracts, but le- 
gally these cannot be used to spec- 
ulate on the currency. 

As a result, the peso is ‘‘a much 
tougher market to short,” said 
Philip Moffitt. an executive at 
Tokai Asia Ltd, which operates a 
hedge fond in Hong Kong. 




• . • - yr 




V. FLunm I Vp-m V hinr^-lVrv 

A teller in Manila on Friday. 

By closing forward markets to 
foreign investors, countries such as 
the Philippines help ensure the sta- 
bility of their currencies. 

At the same time, barring for- 
eigners from access to forward 
markets can restrict investment by 
making it harder for foreign 
companies to hedge their foreign- 
exchange risk. Also, companies 
may have less incentive to invest in 
nations from which it is more dif- 
ficult to repatriate profits. 


Yaohan Shares Drop as Retailer Seeks Debt Reprieve 


Bloomberg News 

TOKYO — Yaohan Japan Corp. 
shares plummeted 34 percent Friday 
after the Japanese retailer said it had 
asked creditors to postpone payment 
of debts. 

The company’s president. Mit- 
sumasa Wada, said late Thursday 
the company bad asked 60 whole- 
salers this month for special pay- 
ment terms. So for the wholesalers 


.•> - 


billion yen (S39.9 million) in debt, a 
figure likely to increase to 5.5 bil- 
lion yen, Mr. Wada said. 

The stock fell 48 yen to a record 
low of 95. Yaohan ’s shares have 
fallen about 70 percent since the be- 


ginning of May amid concern about 
the company's financial health. 

Yaohan’s finance director, Hiroshi 
Takahashi, said Thursday that delay 
was needed because revenue had 
fallen since the company sold 16 
stores to Daiei Inc. to pay off debt. 

“They sold the crown jewels and 
there’s nothing left,” said Mike Al- 
len. a retail analyst at ING Barings. 
“The stores they sold were infin- 
itely more profitable than any other 
stores the Yaohan group has ever 
operated in Japan.” 

After the close of trading Thurs- 
day, Mr. Wada denied reports that 
Yaohan had asked banks to lower 
interest payments on loans. He said 


the h anks had extended the repay- 
ment period to March 1999, the date 
by which the company p lans to com- 
plete its restructuring. 

Mr. Wada denied reports the 
company had entered new talks with 
banks and said Yaohan had not filed 
for protection from creditors,. 

Analysts said rapid expansion 
overseas pursued in recent years by 
Yaohan was behind its problems, 
because it had left the grocer's do- 
mestic operations financially 
strapped and vulnerable to increased 
competition in the home market. 

Yaohan’s troubles do not augur 
well for other smaller grocery 
chains in Japan exposed to increas- 


ing competition from large-scale re- 
tail chains, analysts said. 

■ Aoki Denies IPs in Trouble 

Aoki Corp. on Friday denied 
speculation that the construction 
company was in financial trouble. 

AokTs president Yoichiro Yano, 
said the company was in good fi- 
nancial condition, Bloomberg News 
reported. He was responding to con- 
cern after the bankruptcy last week 
of Tokai Kogyo Co., another Jap- 
anese construction company. Many 
midsize construction firms are strug- 
gling to repay loans to banks as their 
income falls because of cuts in gov- 
ernment spending on public works. 


Dong Ling 
Is Ready 
To Trade 

Joint Venture Fulfills 
A Pledge by Jiang 

Om/xM by Our Stuff Fnw Daj vt tiKS 

SHANGHAI — China’s first 
joint-venture foreign-trade com- 
pany has been established in Shang- 
hai, a breakthrough aimed at easing 
die country’s entry into the World 
Trade Organization. 

Dong Ling Trading Corp, was set 
up by a local company. Oriental 
Trading Group, plus Mitsubishi 
Coip. of Japan and Continental 
Gram Co. of the United States, ac- 
cording a report Friday in China’s 
official Business News. 

Dong Ling Trading has registered 
capital of $12.5 million, of which 5 1 
percent comes from Oriental. 27 
percent from Mitsubishi and 22 per- 
cent from .Continental Grain. The 
company will trade in machinery, 
electronic devices and high-technol- 
ogy products. 

The Ministry of Foreign Trade 
and Economic Cooperation has is- 
sued business licenses to the compa- 
nies, and operations are to begin 
soon, officials said. 

Another joint venture, between 
Shanghai Lansheng Group and 
South Korea's Daewoo Corp., is 
also in the final stages, the news- 
paper reported. 

The move follows a pledge made 
by President Jiang Zemin at the 
Asia-Pacific Economic Coopera- 
tion forum in October 1995 that 
C hina would experiment with joint- 
venture trading companies in 
Shanghai and several other cities. 

The approval will introduce com- 
petition to a key sector. It was a 
major step forward in economic re- 
form, executives and analysts said 
Friday. 

“The introduction of foreign 
firms in foreign trade will bring real 
competition to the sector,” a 
Chinese export manager said. 

“It will specifically hit state for- 
eign-trading companies, which have 
so for been protected by foreign- 
trade quotas and have been able to 
do business even at a loss so long as 
they earn some foreign exchange.” 

The foreign companies would 
benefit from lower tariffs on goods 
exported to China, while Chinese 
companies would gain foreign man- 
agement and expertise, an official 
said. f AFP, Reuters) 


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'Singapore': ! 1,9674A;. 1.^8^ -OQS 




Jakarta 


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: 729.15 ■ V&TSf 
V ZJSWM >0.38 

Imenuuonjl Ffcnid Tribune 


Very brief ys 

• The Economic Planning Agency upgraded slightly its as- 
sessment of Japan’s economy in its June report, citing a fading 
negative impact of the April 1 consumption tax increase. 

• Thirteen top Japanese banks and two large brokerage 
houses, including Yamaichi Securities Co. and Nomura Se- 
curities Co., have stopped subscribing to publications issued 
by racketeers in a bid to sever ties with sokaiya extortionists. 

• Cam International Holdings Ltd. probably overstated 
profits in the past three years and may nave incurred losses 
instead, according to a report by the Price Waterhouse ac- 
counting firm. The financial review followed allegations that 
two Cam executives may have improperly concealed loans. 

• Singapore expects to narrow its budget surplus by 24 
percent for tire year ending March 3 1 to 4.S billion Singapore 
dollars (S3.4 billion), compared with a year age. 

• China's new municipality of Chongqing will cut the tax rate 
for foreign companies, the China Economic Times reported. 
Foreign companies operating in economic development areas 
would pay 15percent to 24 percent tax on profits. The standard 
corporate tax rate is 33 percent. 

• Fuji Television Network Inc, a major broadcaster in 
Japan, plans to raise 83.02 billion yen ($736.3 million) 
through an initial public offering in August. afp. Bloomberg 

Japan Ranks Urged to Consolidate 

Bloomberg News 

TOKYO — The Liberal Democratic Party called Friday for 
merging five state-run banks as part of Prime Minister Ryu taro 
Hashimoto’s drive to streamline Japanese government 
The governing party's special task force on administrative 
reform said the government should scrap the Japan De- 
velopment Bank by March 2000, with a new government 
lender absorbing its assets as well as Tohoku Development 
Corp., Hokkaido and parts of three other public lenders. 


" WEB: Helsinki Goes Interactive 


'"Kb a£ t; 

i.-n>5~ ^ x! . 




I|Kw, * - 





• Zt i ■'* 


Continued from Page 11 

with a recorded message to 
leave their homes. 

“Our target is 100,000 si- 
multaneous users, all wired 
in,” said Immo Teperi, an ar- 


" : working bn the proj- 

- • ‘£4 who started building 
computer models of vast sites 

• in 1988. 

As he explained and 
demonstrated at the Helsinki 
Telephone Co.’s advanced- 
: technology laboratory, a gui- 

■ tarist sitting in a theater sev- 
: eral blocks away used a com- 
puter's live microphone to 
ask what the guests would 
like to hear. 

"What is new,” Mr. Te- 
. peri added, "is the mass ap- 
•'.*! plication.” 

“Instead of making just 
one square or one building 
: accessible, we are making a 
. -.whole city accessible in a 

• Multimedia network with its 
; everyday life,’ ' he said. 

? : It is, of course, fun. But it is 

j also big business. 

' “I think virtual rpality is 
! the main area” where com- 

• nronications can be used in 
* ! the future, said Pekka Ven- 

- namo, president and chief ex- 
: ecutive of the government- 

■ owned Telecom. Finland, 

. which also runs the country’s 

postal services and was the 
i. • first in the world to offer its 
■ ' . customers phone connections 
'• over the Internet, an appli- 
cation that is becoming com- 
mon. 

“It's like luxury cruises 


I- throughout the country . 


which is the largest private- 
sector operator in Finland, 
was willing to pour big 
money into Helsinki Arena 
2000. 


hind the virtual realit 


offices in the telej 
pany. At his new! 


of the Baltic Sea, the ground 
floor is designed to have com- 
puters and large screens from 
winch he will peer into the 
city and teach tus students, a 
side occupation he cherishes. 

“I believe more and more 
of us will be engaged in re- 
mote work from home, mo- 
bile phones or personal com- 
puters,” he said. “I am 
already there." 





The Last Governor 

Jonathan Dimbleby presents a revealing 
five-part documentary which charts the political, 
diplomatic and- social issues in Hong Kong 
during -the fast’five years under-British rule 


WATCH 13th JULY AT 
21:30 CET 


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The HTTs Intermarket regularly features 
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A » reat deal ha p pens at The Intermarket. 

Call Sarah Wershofon +44 171 420 034& 



T1IE WORLD’S DAILY NEWSPAPER 









INTERNATIONAL HERALD TRIBUNE, S ATU RD A Y-SL N DAY, JULY 12-13, 1997 


I 


THE FUND PERFORMANCE FOCUS 


The I.H.T. would like to remind its readers that past performance is no guarantee of future results and that the value of an investment aid the income from it can go dovm asj 



ABN-AMRO ALRENTA 


— Alrrema iN a \ in USD I 
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FRIEDBERG 
MULTI-SECTOR 
FUNDS 


VFe are pleased to announce die launch of our 
fifth Offshore Cayman Fund on 2 June 1997: 

Friedberg 

Global Opportunities 
Fund Ltd. 

1st Month's Performance 

7.1 5 % 

See listing for our funds 
For information call Enrique Fenig 
Telephone: (416) 364-1171 
Fax: (416) 364-0572 


J.B. DANISH EQUITY FUND 


In 1“*> the rbnis-h uqnm mar l el 
yielded J return el 2“. . Thu war A 

the Murn hdt. :«Mdwd l^V. We Jfl, 
tind Ihit nuvstnx-nt in OUj 

equities h Kill dnracnveh.vJu*r CSj 

Ihe pnee lev e! el Djiumi iqu:iv» 
is 5lill some i% a\ below Ire 
Eurcpejn average In wp with lh- r*i 
inert**: of frwign mvtshneni . H j 
pn» will ed#> closer to Sfcov nn BJ 
other European nurk-b —H/I 

Wet.rwtthewmin^., pr-.wth Av * 
over ihe ne»l vmh io be m «m ■ 
theianyeol lO'i-l't.Tle I 

e'p'rt-onemod comiumes tr 

will Mvtit hem hipUr It . 

grv'Wih on PeitRWrK's ma^r 1 1 /K 
ovport rroriets The homy J l Cl 
nurkel-cmnled companies 1 1 
will berant lioro bfh l 

eonsunvr ;c nl‘iden.f .ind I V 

he*tv nv in ?n .-air hk-use J ^ 

mwidm. 

Hanish iniesr.: r.itrt are at .1 ■ 

b stone jow.i; pnsvm and Baash 
■qirti.-. apf Air V^-. .ulra.>- e in 
<i-mp.in-ir v» 1 is hi>* .r; 1 Ki. 1 -.enb 
i F. iJfwli Equirv F.rvl in\« m Jjrce 
"cll-y-bbi'.lvJ qu vlDruvi 
c.-mf.l.'vc-aivj HiT..|.| '>. iq,uH />ni 
K'rvl n.rjv Olered bv !■ . 1 .- 


fti 


Jyske Invest 

• is a mutual hind group 
which » fully owned by its 
investors; 

• was established in 1969 at 
the initiative 0 ) ivjk* Bank. 
— with whom Jvske Invest 
J cooperates closely: 
r • orftTS* wide range af 

\ investment ptssibui t'es 
deigned to meet our 
mater? different 
) I nxhiinmenb about object 
^ I rjk and time honzon. 

II If you wish K' know more 
j about die U- Danish 
I Equity Fund and other 
I investment solutions 
I offered by /sake Invest 
j please write' or phone 
I dircci to: 


jyske Bank 

Private Banking dntenutianali 
Vrsteibiogide9. DK -1780 Copenhagen V 
Tet ^5 S3 7S m (h. fax *45 33 7B T8 U. 
Internet httpa/www. Jyske- BanLdk/ 
IvskelnvesL 


G jtske invest 


1,'m ril Ihi-nin HV > 


Jr*« "*w >i a&mri tiMlrv ( >w»u Sioonixn amti fasemnMnonnTtwK 
riwwwow fine* Vw SW jwhwk •*«r> EawsmymMI w«cb mom- 


» C\. rw«ct— "9 vwOKnp bqnni neni 


alpha fund management, ltd. 

& 

ICATU BANK I CAYMAN). CO. 

•Arr Pleased to Iniroduce 
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uill aitrtnjri la mo shr ri” capital appreciatkm by intestine its assets with a group 
of premier Brazilian moot? manager* selected lu Inieet 01 Brazilian equity and 
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purchase shares of Brazilian companies Identified as hashtg future growth 
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managers selected lo'lnvesi primarily in equity and debt securities of issuers 
located (hraagtHMit (he world. 


TJiii anneaactmtru u neither an offer n\etfnnra loliriwba of ait offer re but any 
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RICHCOURT VARIABLE OPPORTUNITIES Inc. 


date 


Nov I. |b96 
Nos I l«»6 
Jan l I OPT 


Pntonhieu since taUsbOH 


r«*. 1 

Atra' Purr 
SK/UiMu* 


FunJ* 

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run-1 p ! 

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Irib 

Fur j <: 1 

if i» 

3 BJ 

Fund D 

12 74 

3 40 

Funds 

74 TV ; 

1 w, 

FundF . 

IS lb 

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Fund C 

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Fund H 

ixva 

I IV 


BtCHCOURT VARIABLE OPPORTUNITIES EzkJi shjreholder s erjV'iure to 'W 
I*c was mpvdel in the British piolits and losses of trading by tie 
Virgin Islands sn Kovemaer 1 st. iv!6 money maragen. will rat> ^O.'Oidlnfly 
Ttre Fur-d ciirspri; has assets ••vet 5*» to the Series of shares which it h>ld5 
mil: ‘or <tc. h-s The Fund's mvcslmen: The Scries arc as follows 
object iw is 10 achieie capi’al apprecia- - Sene-, B rbt-nchmari. The shares 


L'vn by imresfrnv a Rb99H!r4 (k>r/jf) 
•ft Its assets am^ rg a d.vemlted group 
al moiK-v rranagett selcavj and monl- 
rored hv Wchmuft Cipiul Maninjemept 

Inc ihe Furds lnv-?.in^r,i Manager 
Fhe rneney matucw* tec bi tlto 


ol Senes B ere Inwr.ded to oiler an 
mscsrcc Ihe opportune/ to diwrvUy 
its insesrmepi portfolio through tn- 
sestment m rhe Investment C«n- 
pinys actively managed pool of 
money managers 


Investment Manser geiMaHy ‘.vili • Series L ('leverage ' 1 The obiecttve ol 


ctrpks n?r directional trading stale- 
gies. the results d *b(c geienlly are 
? >(vc(ed to :«TWpoftd with the 
diieclli.n m stock arsl sond marid< 
lie .-onve'tiblearai'.race. pairs trading 
h«ed income arbitrage delta -ncjt rat 
ODCtcn traung and nsl arbRidge. 


Senes L shares is to provide inves- 
tors with a 33** leveraged venaon .31 
Stnes P shares 

Senes S 1 speculative 1 Vk oW c- 
;ive of -Senes S shares is 10 provide 
Invest ‘.rs with a WV leveraged ver- 
sion ol Senes B shares 


7he Fu>J Is ottering three separate Further Information be obtained 
Series sfw-es lo' purchase by eli- from the Adariatstrater: 
gitle innwort Eligible investor* may CTTCO FUND SERVICES (EUROPE* 8.V. 
purchase, shares ol one or more Senes Tel 131-201 ST2 1 (00 Fa*: <31 -20* e7S0M( 


+ 104 %i 

FMG'S SUCCESSFUL RUSSIAN Fl?N & 
OPEN FOR TRADE EVERY MONTH; ■ ? ;; 
CONTACT US TODAY • • 



FMG Alterum - . J.y: v- 

FMG ALTERUM font^gruSp AB?v 
194 37 STORA WASBY, SVVEDEN ; V 
Tel: 46 (0)8 590 926 40, Fax: 46 (0)8 59(1926 70 
wtvw. fnigltd.com/altenzm/. : ; A '• 


a 





The key to (he Fund's success hu been With the Japanese market down mure 

■ highly selective approach to stock than 40% from us peak w 19SV and many 

picking. The manager has avoided Japanese stares now attractively valued, 
poorly performing sectors (i.c. the we believe thar GAM Tokyo offers 
honks], hu hedged the yen during exoelfenr prospects for inv estors over the 

periods ofcurreocy weakness and has mediiun term, cnbKiccd by a broadening 

recently concentrated an companies economic recovery. Selectivity will, 
which have been beneCtmg from yot however, continue to be (he key to 

weakness and doeguladoo. success. 

F or fair tahnnllM ca CAM Tskyo, pkasc eoa net the GAM Clint Sen ka dcpsRBKW 
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SATURDAY - S UNDAY, 
JULY 12-13, 1997 
PAGE 17 



-4 


Global Funds Enjoy 
The Luxury of Choice 

Managers Shop for Best Bond Returns 


j Alterum 
Vi FONDGRUPP if. 

* WASBY . SWEDE v 
40. Fa\:4c,<')s 
Itd.com alter uv 


By Judith Rehak 



Premier Select 


A merican treasury 

bonds have enjoyed a power- 
ful rally since April, when the 
yield on the bellwether 30-year 
[issue peaked ar 7.1 8 percent. Now. many 
-managers of global bond funds, who can 
[shop around the world for the best re- 
itums, are shunning the 6.51 percent re- 
turns available on U.S. Treasuries Friday 
.afternoon , opting for other markets that 
;they hope will be more lucrative. 

[ In the United Stares, multisector bond 
■funds typically send about a third of 
[their assets overseas. Over the last two 
•years, the booming American junk bond 
[market has propelled their returns, but 
.many are looking to their foreign 
[stakes — and beyond — for fatter yields. 

[ "What we’re seeing more and more 
■of late is fond managers takin o their 
[foreign sovereign debt and shining it 
■into emerging-market debt," said Eric 
fixed-income analyst at 
Inc., the Chicago-based 


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[Jacobson, a 
■Mornings tar 
fund tracker. 

The more conservative funds 
■bought Brady bonds, doliar-de- 
[nominated. restructured bank 
■debt, sticking with issues from 
[countries like Poland, whose 
sovereign credit rating is im- 
proving, Mr. Jacobson said. 

. At the other end of the spec- 
; * Hum is the S264 million Lazard 

[Strategic Yield fund, which has com- 
mitted a 34 percent stake to local cur- 
[rency debt in countries such as Croatia, 
•Kenya and Peru. As dicey as that 
[sounds. Alice Lowenstein, who follows 
[the fund for Mornings tar, considers it 
[low-risk because it is spread in small 
[amounts among 37 countries. 

[ “Thefund has gone quite a bit further 
[in its strategy,' ' she said, * 'but, that said, 
■these investments have been very good 
.for it.’’ 

. Strategic Yield had a total return of 
; 1 3175 percent last year and is up about 5 
[percent this year, placing it in the top 
[third of multisector funds. 

[ But not all portfolio managers are 
•enthiailfedwiih emerging-market debt. 

[ "It's done well in the past two years, 
.but there 1 could be some unhappy in- 
jvestors because that area is a lot more 
[volatile," said Robert Alley, who runs 
[the AIM Income fund, recalling losses 
[inflicted by Mexico’s peso devaluation 
•in 1994. 

[ Instead, Mr. Alley, who is based in 
•Houston, sticks with developed coun- 
ties for the 30 percent overseas portion 
j -k’of his $340 million fund, up 4.9 percent 
“■frhis year, lately, with the dollar hitting a 
[three-and-a-half-year high against the 
•Deutsche mark, he has been trimming 
[his German and French holdings, and 
•moving into dollar-influenced markets 
‘with higher yields, such as Australia, 
[Canada and New Zealand. 



In New Zealand, for example, a 10- 
year government bond yields about 6.74 
percent, compared with just 6.20 per- 
cent for a comparably dated U.S. Treas- 
ury. Is there need to worry about for- 
eign-exchange fluctuations? 

“Their currency has already 
weakened against the U.-5. dollar." Mr. 
Alley added, “so the downside cur- 
rency risk is our." 

He has also been adding to one of his 
most profitable non-U.S. bets, a stake in 
British government bonds. The gilt mar- 
ket registered a strong month in June, 
rising 2.83 percent in dollar terms. 

Britain's gilt market also looks ap- 
pealing to Marc Vemooij. who invests in 
developed Europe from Amsterdam, 
where he runs the ABN Amro Europe 
Bond Fund. Fueling his enthusiasm is the 
decision of the British government to 
make the Bank of England independent. 

"We expect the bank to be more 
focused on low inflation and stable cur- 
rency, and that’s a bond-friendly en- 
vironment." he said. Moreover, he said, 
“It's the highest-yielding market in 
Europe.” Currently. 10-year gilts are 
yielding about 7.02 percent, far above 
the paltry return of 5.54 per- 
cent in German bunds, the 
European benchmark. 

Like others who invest in 
the bonds of Europe's de- 
veloped economies, one of 
Mr. Vernooij’s most success- 
ful strategies in the last two 
years has been the "convergence" play, 
contributing to his fund's 10.8 percent 
rise for the year to the end of June. 
Under this scenario, countries preparing 
for European monetary union nave been 
reforming their economies and thus 
pushing down yields on their govern- 
ment bonds toward the German equi- 
valents. This has caused their prices to 
soar, producing handsome returns for 
fixed-income investors. 

But now, with the convergence play 
winding down for countries Eke France 
and the Netherlands, Mr. Vemooij has 
turned to the shorter-maturity bond mar- 
kets of Italy and Spain. 

"Shorter rates in Italy are still over 6 
percent, much higher than Germany, 
where they are about 3.4 percent," he 
said. He is betting that monetary union 
will happen "on rime," in a year and a 
half, spelling a price run-up in three-to- 
four-year Italian bonds as their yields 
fall to meet their German benchmarks. 
Accordingly, he has boosted his stake in 
Italy to 26 percent from 18 percent 
Mr. Vemooij has duplicated his Italy 
and Spain strategy in ABN Amro’s 
Global Bond fund, which he also man- 
ages. But since this vehicle allows him 
to shop outside Europe, he also is send- 
ing some of his cash to doliar-bloc coun- 
tries, although be emphasized it was not 
going to the United States. 

Continued on Page 19 


Converging on Maastricht? Ten-year government bond yields 


Britain 


"V*s^ f - j 



94 95 

Source: Bloomberg 


96 97 



. a T>. -v?\$ 

94 96 96 97 

InumatMHl HmMTrihunc 


What Will EMU Mean for Bond Investors? 


By Conrad de Aenlie 


F OR MONTHS now. European 
bond traders have put so much 
faith in the ability of their polit- 
ical leaders to forge an economic 
and monetary union that they have 
treated many of the continent’s weak 
economies as if they will indeed reform 
themselves to confirm with the strict 
criteria laid out in the Maastricht treaty. 

What this means is that yields on 
bonds from countries such as Spain and 
Italy are not much higher than the re- 
turns on German bunds, the bellwether 
for the European market. Traditionally. 
Germany ran a tight fiscal ship, keeping 
the Deutsche mark strong even at the 
cost of job creation, while its more 
profligate neighbors would seek to 
spend their ways out of bad times and 
boost their exports by allowing their 
currencies to fall, creating inflationary 
pressures in their domestic markets that 
sapped the value of their bonds. 

i er the outlook for the monetary un- 
ion. which would see creation of the euro 
in place of national currencies, is unclear. 
Based on current situations, only three of 
the European Union's 15 members are 
likely to meet all of the criteria for join- 
ing. None of this trio — Luxembourg, 
the smallest EU country; Britain, tra- 
ditionally wary of European integration, 
and Finland, a recent arrival — are con- 
sidered vital to the project's success. 

Of the two countries at the core of the 
union plans, Germany will have to make 
a determined effort to meet the criteria, 
while France seems unlikely to pare its 
budget deficit even close to the required 
3.0 percent of gross domestic product. 
With both countries plagued by high 
unemployment rates and France's 
newly elected Socialist government 
having made campaign vows to alle- 
viate joblessness, the odds against a 


Maastricht-like currency union coming 
into force by 1999 are lengthening. 

This raises questions for fixed-in- 
come investors, with three scenarios: 

• The union goes ahead as planned 
and more or less on time. 

• The convergence criteria are re- 
laxed, allowing the union to proceed for 
political reasons but with less- 
sound economic underpinnings 
than planned. 

• The union is postponed sig- 
nificantly or canceled. 

Each scenario would require a 
different response from in- 
vestors, but some analysts think 
the best idea would be to avoid the mar- 
ket entirely and opt for short-term U.S. 
Treasury issues, where the two-year note 
now offers a 5.86 percent return in the 
resurgent dollar. The British market, sep- 
arated physically and otherwise from 
mainland Europe, would be an altern- 
ative strong-currency play, with 10-year 
gilts yielding 7.02 percenL 

Many investors feel they must have 
exposure to the European markets, 
where yields still reflect the first sce- 
nario. The shrinking of spreads between 
weaker borrowers and Germany has ac- 
celerated in recent weeks. In mid-May, 
Italian 10-year government bonds yiel- 
ded as much as 1 .6percentage points 
more than bunds. They are currently 
trading with a spread of less than one 
point, with Italian issues at 6.45 percent 
and bunds returning 5.54 percent 

The premium of bonds issued in 
Spain has narrowed over the same span 
from 1 . 1 points to a sliver over 0.6 point 
At 6.18 percent, their yields are slightly 
lower than those of 10-year US. Treas- 
ury bonds, while the yield on Portuguese 
bonds is just 6.2 1 percent, roughly equi- 
valent to the comparable U.S. maturity. 

In a sane world, would yields on Italian 
bonds be only afew ticks higher than U.S. 
Treasury yields of the same maturity, and 



would traders demand a premium to hold 
Treasuries instead of Spanish bonds? 

"Spain and Italy have made some 
staggering transformations, but 1 have to 
admit it looks odd, especially to a U.S. 
investor." said Steven Bell, chief econ- 
omist in London for Deutsche Morgan 
Grenfell. In a long run, he said, the dollar 
looks stronger than the peseta. 

“In that context. Treasuries 
look very cheap." he said. "If I 
had to buy an asset and couldn’t 
sell it for 10 years. I’d probably 
rather boy Treasuries than 
Spanish bonds. But I don't buy 
and hold these things 10 years. 
I'm just looking at the near-term pros- 
pects. Growth in the U.S. is looking 
strong, there's no slack in the economy. 
U.S. interest rates are going to go np. In 
Europe there’s no inflation and no 
growth." 

Besides, he pointed out, "the argu- 
ment that says get out of Spain and Italy 
and get into Treasuries would have had 
you lose money in the last year or so." 

He does not find it a good argument 
□ow, either. Morgan Grenfell forecasr 
earlier this week that spreads over bunds 
are likely to continue to fall, to 0.6 
percentage point for Italian bonds and 
0.4 point for Spanish bonds. That view 
is based, on two assumptions, widely 
shared in the bond market: that EMU 
will go ahead and it will include those 
countries, as in the second scenario. 

Credit Suisse First Boston also ex- 
pects an ecumenical system, including 
all the southern countries except 
Greece. It expects the start, planned for 
Jan. 1. 1999, to be delayed up to a year, 
but considers Italy “still the ultimate 
convergence play." 

Its analysts also recommend debt from 
Spain and Ireland, as well as the fiscally 
prudent malcontents — Britain ana 
Sweden, which are unlikely to join EMU 
at the start, and Norway, which said no to 


the European Union altogether. 

Yet if the currency union falls apart, it 
is bonds from Germany and the other 
core countries whose economies are 
linked to it, such as Austria and Den- 
mark, that are seen as the best bets, 
along with British and Swedish issues. 
A failure of the union would punish the 
currencies of many of the noncore coun- 
tries, which might also be tempted to 
deal with their weak economies by in- 
flationary spending programs. 

Some analysts see tittle money in 
EMU. now char bond yields and foreign- 
exchange rates have narrowed so much. 

“I don't expect a complete crash in the 
euro," said Kim Schoenholtz, chief 
economist for Salomon Brothers Inc., 
"but European currencies could fall a 
further 10 percent" against the dollar if 
there are hitches in implementing EMU. 

“It's a very one-sided bet,'’ said Roger 
Monson, a strategist at Daiwa Securities 
Co. Europe. "If everything works, you 
kegr what yon got; if it doesn't, you lose 
quite a bit I wouldn't want to’go to a 
roulette wheel with those odds." 

Richard Davidson, Morgan Stanley’s 
European strategist, thinks uncertainty 
will remain, even if EMU becomes a 
certainty. “It does not mean that Europe 
will necessarily live happily ever after, 
far from it," he warned. “The broad 
single-currency group that is forming 
carries many inherent risks to the vi- 
ability of the system." 

"Labor markets, savings rates, tax 
rates, levels of home ownership and 
interest-rate structures all remain sub- 
stantially different,” he added. "All of 
these will distort ftirther the effects of a 
common European central bank in- 
terest-rate policy on different econo- 
mies. Initially that distortion is likely to 
be felt through weakness of the euro, but 
eventually, given the protest vote that is 
already building in Europe, it could lead 
to a splintering of the system." 


A Monetary Union Bond Strategy for Every Eventuality 


Strong EMU. If you think the economic and mon- 
etary union will go ahead as planned, with members 
meeting the strict guidelines set by the Maastricht 
treaty, buy Spanish and Portuguese bonds, whose 
yields would fall toward those of German bunds. 

Weak EMU. If it looks like the convergence criteria 


will be loosened to allow the monetary union to go 
ahead for political reasons, opt for high-yielding Itali- 
an bonds. 

No EMU. If the monetary union is canceled or 
postponed, there will be a flight to the quality of the 
Deutsche- mark bloc. German. Austrian and Danish 


bonds would benefit, and economists also suggested 
British gilts and Swedish government bonds. 

Avoid EMU. If you do not need to be exposed to the 
core European bond markets, concentrate on British 
gilts and short-term U.S. Treasury securities or, if you 
can accept increased risk, look at equities instead. 






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A Lonely Pursuit: Hard - Core Value 



T wenty years ago. Bob 

Olstein made his name on Wall 
Street as co-author of the Qual- 
ity of Earnings Report, a news- 
letter that tore apart income statements 
and balance sheets to get the real in- 
formation on a company's perfor- 
mance. Today he nms a mutual fund. 

The Olstein Financial Alert Fund is 
a hard-core value fund. Really hard- 
core. Mr. Olstein uses his QOER prin- 
ciples to hunt bargains, and his motto 
is "defense first." In recent weeks, he 
has been buying, such out-of-favor 
companies as Coachmen Industries 
Inc.*, a manufacturer of recreational 
vehicles that is 38 percent below its 
high of last year, and Seagate Tech- 
nology Inc., the compmer-disk-drive 
maker, which is off 34 percent. 

For- this period of. stra- 
tospheric stock prices, Mr. "" 

Olstein ’s .strategy may- be . JAMES 
exactly right. Unappreciated 
companies have a shorter distance to 
fall in a correction or crash. Academic 
research shows, in the words of John 
Campbell, professor of economics at 
Harvard, that "the average excess re- 
turns on value stocks — .stocks whose 
prices' are low relative to their book 
values, earnings or dividends — are 
even higher than the average excess 
returns on shocks in general^" 

. Lately, however, value investing 
has been a tough path to -follow. Mu- 
tual fends that buy growth stocks have 
been racing ahead, their managers 
profiting from "momentum" invest- 
ing — hitching a ride on a fast-moving 
train and then jumping off . as it slows 1 
down.. This is an extremely risky busi- 
ness, but it has paid off. 

Also; at these altitudes on the Dow 
Jones industrial average, it is tough to 
find bargains, so Mr. Olstem’s fund has 
about one-fourth of its assets in. cash. 
Still, he has produced a remarkable 
return of 34 percent over the past 12 
months, compared with 42 percent for 
Vanguard Index 500, the popular fund 
feat mimics the maike£and 32 percent 
for Fidelity’s huge Magellan fund. 

I am not necessarily touting Mr. 
Olstein ’s fund as an investment What 
is more interesting is to look at what he 


is buying and why. 

Take Coachmen. ‘‘Here’s a stock," be 
said, "which has disappointed investors 
with earnings that are below' estimates. 
Those are ajoke — earnings estimates — 
but they afreet the price of a stock. Any- 
way, it was knocked down from S28 to 
$15, so we starred buying." 

Coachmen trades at a price-to-eam- 
ings ratio of just 10, or about half the P/ 
E of the average stock. But Mr. Olstein 
uses a more sophisticated method of 
analysis. He decides, by probing in- 
come statements, what Coachmen 
would be worth to a single private 
buyer. (He does the same with all the 
stocks he researches, including Gen- 
eral Motors Corp., another favorite 
that he has been buying.) 

"Our value for Coachmen,” he 


GLASSMAN ON INVESTING 


says, "is $27 a share. It's now $19, so 
we’re buying. As it begins to rise to- 
ward our value, we start selling." 

Mr. Olstein uses techniques mat you 
should not try at home. Trading — 
jumping in and out of stocks — requires 
far more discipline than the average 
investor can muster. Placing a precise 
"private market value" on a stock is 
beyond the ability of most a maie urs. 

Still, we can learn one important, 
general lesson from Mr. Olstein, King 
. of Value: Buy stocks that other people 
hate. He puts it this way in his semi- 
annual report: 

"Buying the pessimism that creates 
value is a lonely and contrary thing to 
do. Instead of paying high prices for 
companies that are currently providing 
investors with immediate excitement, 
publicity and gratification, the Man- 
ager is willing to go through long, dark 
periods with individual securities 
which are out of .fashion but are con- 
servatively financed, produce excess 
cash flow and represent good busi- 
nesses selling at a discount." 

There is a second, more specific 
lesson. Note the phrase "excess cash 
flow,” That is a number you can de- 
rive — roughly, anyway — from 
companies' annual reports. 


"You take the firm’s earnings,’’ 
Mr. Olstein explained, "and add back 
depreciation. Then from that total, you 
subtract the company’s capital ex- 
penses and its need for working cap- 
ital. What’s left is excess cash flow." 

hi concentrating on this figure, Mr. 
Olstein is in good company. Another 
fan of excess cash flow is Warren 
Buffett, America’s second-richest 
man and the c hairman of Berkshire 
Hathaway Inc., the wildly successful 
company that buys huge chunks of 
other companies. 

In a public corporation, Mr. Olstein 
said, excess cash flow goes to do 
things that directly benefit sharehold- 
ers: "raising the dividend, buying 
back stock, buying other companies." 
Also, he said, the money provides in- 
surance. "If you have this 
cash and problems come 

up, you don’t need to adopt 

short-term measures that 
aren't in your long-term interest to get 
you through." Also, companies with 
excess cash flow tend to get acquired 
by other companies at a premium. 

Bowne & Co., the oldest and largest 
financial printer in the country, is a 
good example of a firm with strong 
excess cash flow that was hit by bear- 
ish sentiment last year. “We bought it 
at $19 to $20 a share. It’s now $31, but 
we think it’s worth $37 or $38," Mr. 
Olstein said. It trades at a P/E of P. 

He's also enthusiastic about GM, 
which is creating more and more cash 
flow by cu tting expenses. He pegs its 
private market value at $75 to $80 a 
share. It’s now $56. 

Then there’s Seagate, an excellent 
company tfaar suffered excess invent- 
ories and fell short of analysts' earn- 
ings estimates. “We don’t care about 
the next two quarters,” said Mr. Ol- 
stein, who is willing to wait three to 
five years for value stocks to pay off. 
Seagate, another firm that should be 
generating hefty excess cash flow, is 
now trading at $37 (and a P/E of 14), 
an attractive price, said Mr. Olstein, 
who pegs its true value at $56 to $60. 

Washington Post Service 

FOR INFORMATION about (be Qlttan FiiMfleisI Alert Fiud. 
caU 1 914 701 7565. a. bi fte United Stuea, I SOD TO 21 13. 


Interest Rates Interbank offered rate, in percent. 


Australia 

1 month 

5.2450 

3 months 

6 months 
5.11 

New Zealand 

1 month 

7.680 

3 months 

6 months 

7.265 

Britain 

6.25 

Sill 

7.125 

Philippines 

24.3125 


17.6875 

Hong Kong 

5.99219 


6.25781 

Singapore 

2.9375 


3.25 

Indonesia 

13.4045 


14.4762 

Malaysia 

15.8 


9.5 

Japan 

6.54 


0.68 

Thailand 

18.0 


17.5 

Germany 

7.25 


7.80 

U.S. 

5.5 


5.6875 


Source; Bloomberg 


hurniauonal HcraJJ Tribune 


In Asia, an Infrastructure ‘Frenzy’ 


By Philip Segal 


I T WOULD BE hard to find a 
younger, greener market open to 
mutual ftmd Investors than emerg- 
ing Asian bonds outside of Japan. 
While possibly causing jitters in in- 
vestors who have low tolerance for ex- 
perimentation, there are big gains to be 
bad when an illiquid investment even- 
tually catches fire and goes mass mar- 
ket 

RCP & Partners, a Hong Kong in- 
vestment management consultancy, has 
just issued a report noting Asians acute 
need for infrastructure financing, by 
some es tima tes as much as $1 trillion in 
the next decade. 

“Hiis type of infrastructure frenzy 
brings to mind the building of railroads 
and c anals in America during the last 
century," the report said, adding that 
bank borrowing and stock issuance in 
Asia were "stretched to the limit.’’ 

That may be an exaggeration, but as • 
mostly TjaHn American Brady bonds 
from the last decade are increasingly 
retired, fond managers with as much as 
three quarters of their emerging-market 
bond foods invested in these issues — 
named for Nicholas Brady, the former 
U.S. Treasury secretary who suggested 
using bonds to help resolve the debts of 
developing countries — will need to 
replace this paper with other high-yield- 
ing debt. 

For that, they will have to pay more 
attention to Asia, where, unlike 
throughout the rest of the world, stock 
markets are still substantially bigger 


than bond markets. 

The upside for investors is obvious. 
An investment in the bonds of a country 
about to get a credit upgrade can reap 
big rewards, as interest rates on that 
country’s bonds fall and bond prices 
rise. Combined with higher bond prices 
that come from greater demand, the 
possibilities are enhanced. 

“If you get it right, you can make a 
helluva lot of money," said 
Donald Last, who runs the 
Hong Kong office of MCM 
Asia Pacific Co., which mon- 
itors the region's credit mar- 
kets. 

Yet for such a potentially 
rewarding market, there are the 
big risks that always accompany big 
rewards: Unlike stock investors, bond- 
holders who have debt denominated in 
local currency take the foil brunt of a 
devaluation. 

In Asia, these are turbulent times for 
several currencies. 

L OOK no further than ibis month's 
almost 20 percent fall against the 
dollar of the Thai baht, which 
came after the government failed to 
regulate runaway credit growth in the 
property sectoral the same time as it was 
suffering a slump in electronics ex- 
ports. 

Faced with an eventual shortage of 
reserves to defend its fixed currency. 
Thailand let the baht float for the first 
time in more than a decade. 

The result was that holders of baht- 
denominated Thai debt were out of luck, 
whereas the stock market rose 27 per- 



cent in three days in baht terms after the 
devaluation. Stockholders with shares 
in companies earning money in foreign 
currencies did even better. 

Such risks attached to bonds are why, 
for the moment, most emerging-market 
debt funds investing in Asia stick to 
doilar-denominated paper. When shop- 
ping around for a mutual fund, always 
ask not only in which countries the fund 
has invested, bur in which cur- 
rencies. 

Only this week, the Phil- 
ippines raised short-term in- 
terest rates to 30 percent to 
defend the dollar-pegged ex- 
change rate of its currency, the 
peso. 

Other than hi gh interest rates, there is 
still a case to be made for holding local- 
currency bonds, rare as they often are 
around the region. 

“Local-currency returns are negat- 
ively correlated with U.S.-doIlar re- 
tums,” said Greg Newman, managing 
director at Scudder Stevens & Clark 
Asia Ltd. in Hong Kong. “There’s a 
powerful diversification argument" 

If investors end up selling some of 
their regional holdings because of cur- 
rency risk, the beneficiaries could be 
Hong Kong and China, which have 
strong trade balances and moun tains of 
foreign-exchange reserves to fight off 
currency speculators. 

Bonds issued by China, which saw its 
credit rating'Upgraded in May by Stan- 
dard & Poor’s Corp., have been so pop- 
ular that they have been trading more 

Continued on Page 19 


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INTERNATIONAL HERALD TRIBUNE. SATURDAY-SUNDAl. JULY 12-13. 


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THE MONEY REPORT 


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Japan’s Convertible Bonds on the Rise 


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By Miki Tanikawa 


irill ion yen. 

Lately, the securities have been re- 


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I NVESTORS SEARCHING for 
high returns with a cushion of 
safety often land in convertible 
bonds. Combining some of the pro- 
tect] ye elements of fixed-income se- 
curities with the dynamism of stocks, 
convertibles are particularly attractive 
on the Tokyo Stock Exchange, where 
nearly a third of the listed companies 
offer one or more of these hybrid in- 
vestments. 

The Japanese convertible market ral- 
lied in the first half of the current 
fiscal year. The CB -Quick in- k 
dex of more than 1,000 con- 
verribles traded on the Tokyo ffljfr 
exchange bottomed at 491.49 r~*<A 

on Jan. 13, then advanced to (fiw. 
516.35 on June 30. It has since i2c~t 


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3 Exchanges Plan 
Europe-Wide Indexes 


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The French, German and Swiss stock 
exchanges are planning a new family of 
Europe-wide stock indexes aimed at 
meeting the needs of internationally ac- 
tive investors. 

The indexes are to be introduced try 
the Deutsche “Boerse AG. the Paris 
Bourse and the Swiss Stock Exchange 
— by the end of January. 

“More investment decisions tend to 
be made on the basis of cross-border, 
pan-European sectoral analysis than on 
cpunoy-by-countiy criteria, and this 
trend will be reinforced by the intro- 
duction of a European single currency, ' * 
the exchanges said. 

There will be four indexes: a narrow 
and a broad index for all European 
countries, and a similar pair for coun- 
tries in the single-currency zone. 

They will serve as benchmarks for 
assessing the performance of assets un- 
der management, but also as an un- 
derlying instrument for futures and op- 
tions contracts, the exchanges said. 

(AFX j 

In South Africa, Fidelity 
Starts Offshore Portfolios 


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Fidelity Investments has wasted little 
time in looking for clients in South 
Africa since the. government's relax- 
ation of foreign-exchange controls took 
effect this week. The world’s largest 
fund provider introduced a managed- 
portfolio service for internationally ori- 
ented South Africans that will be sold 
through Standard Bank Fund Manage- 
ment, a local institution. 

The service, called PortfotioBuilder 
Offshore, comes in three versions, de- 
pending of the presumed risk of the 
assets each portfolio holds: aggressive, 
which intends to remain 100 percent in 
equities; balanced, with 60 percent in 
equities and the rest in bonds, and con- 
servative, which will keep only 10 per- 
cent'in equities, 70 percent in bonds and 
die rest in cash equivalents. 

The allocations will be achieved by 
dividing the portfolios among a dozen 
Fidelity offshore, funds investing in 
global markets. To help clients choose a 
portfolio. Fidelity provides a question- 
naire' aimed at assessing relative com- 
fort with risk. 

South African clients will iramedi- 
aiely get a feel for global fund investing 
when they study the program’s charging 


billion yen of convertibles have been 
floated. 

Mr. Miyazaki and other traders said 
domestic investors taking profits from 
foreign bonds have been shifting re- 
sources to the convertibles market. For- 
eign institutional buyers have also made 
major contributions to the expanding 
trade volume in convertibles, where 
their dominant strategy has been to ex- 


meir dominant strategy has been to ex- 
ploit arbitrage profits from the price gap 
between convertible bonds and 


4.30 percent higher for the year. 

The rise was ‘ ‘a reaction to lasr year's 
market condition, when massive issu- 
ance has brought convertible prices 
down to the straight value” of a bond, 
said Tetsuo Miyazaki, group manager at 
the equity division at Kankaku Secu- 
rities Co. 

“Then, he added, “the market began 
to rediscover the option value of the 
convertibles.” 

Convertibles begin their lives as 
bonds, but they can be exchanged under 
specified conditions for a fixed amount 
of shares in the company that issued 
them. The exchange option is generally 
priced so that it becomes profitable to 
exercise it if the company's stock has a 
healthy rise before the bond matures. 
Because investors have this exchange 
option, the interest rate paid on con- 
vertibles is usually below that of tra- 
ditional bonds. 

In a falling market however, bond- 
holders may exercise their option to 
redeem the bonds rather than convert 
them to stock. When the market 
slumped in Japan in the early 1 990s, for 
example, many issuing compan ies were 
forced to pay off their convertibles. In 
1993, the redemption of equity-linked 
corporate bonds totaled an estimated 9 


ggf&v their underlying equity and a 

i© 33 * Technique called delta hedge. 

5 analysts said. 

-A. Individual investors ought 
, oj not to be tempted by relatively 

jjLfs? high-yielding convertibles, 

which stand to suffer as Jap- 
anese economic growth improves, ana- 


lysis said. Instead, they advised looking 
for convertibles issued- by companies 


for convertibles issued- by companies 
whose stocks seem likely to appreciate 
and then searching for those issues trad- 
ing near face value. 

Nissho Iwai Corp.. a trading com- 
pany expected to have record earnings 
for the year ending March 1998, ac- 
cording to Yamaichi Research Institute, 
is currently priced at 102.4 percent of 
face value. Convertible ar 551 yen 
(S4.80). the issue has seen its underlying 
shares rise from a low of 376 yen April 
J I to a recent high of 525 on July 9. 

Kawasaki Heavy Industries Ltd. has a 
series of convertible issues numbered 6 
through 9 that trade in the neighborhood 
of 99 yen. The diversified heavy-ma- 
chinery maker just posted record earn- 
ings for the year ended March and is 
expected to retain that momentum for 
the coming year, said Mr. Miyazaki of 
Kankaku Securities. 

- Toppan Printing, at 101 .3. is another 
near-par -brand underpinned by a solid 
equity, according to analysrs.'TTie issuer 
is a high-tech printing company pro- 
jected to rewrite its record profits every 
year until 1999, Yamaichi forecasts. 

Midori Shimizu, deputy general- 
manager at the equity division at Ya- 


structure. 

The initial charge is 5.25 percent for 
investments from the minimum 50,000 
rand to 200.000 rand ($10,900 to 
$43,955) and 4.25 percent for larger 
investments. Through July 21, there is a 
one-percentage-point discount. There is 
also a 0.8 percent annual fee for the 
portfolio-management service, plus an- 
nual fees ranging from 0.5 percent to I J 
percent for the individual funds. (IHT) 


FOR MORE INFORMATION call SundarJ Bank u> Sou* 

Afncaji27 II 63005tHonBiiFidelin'iWBFni«4i*ui» fnJ. 
imkcom/tik- - 


For Japanese Investors, 
A Shot at Stock Options 


Japanese traders are to get their first 
chance to trade domestic stock options 
next Friday, a development that might 
awaken flagging interest among small 
investors. 

The Tokyo Stock Exchange and its 
counterpart in Osaka will each list 


equity options on 20 different stocks, 
seven of which will be listed on both 


seven of which will be listed on both 
bourses. Options will be available for 
such well-known companies as Sony 
Coip.,- Toyota Motor Corp., Nintendo 
Co.. Nippon Telegraph & Telephone 


Corp. and Bank of Tokyo-Mitsubishi. 
While the option coverage may seen 


While the option coverage may seem 
limi ted, these 33 stocks account for ap- 
proximately 30 percent of Japan's mar- 
ket capitalization 

Options trading “will provide good 
opportunities for fund managers” said 
Mark O’Friel, managing director of Jap- 
anese equity at Morgan Stanley Japan 
Ltd. 

Options contracts give their holders 
the right but not the obligation to buy or 
sell an underlying asset at a specified 
price on a specified date. Investors can 
use them to hedge their positions or 
increase their returns. 

Hideyuki Sawada, an analyst at Ya- 
maichi Research Institute, said studies 
had shown that introduction of equity 
options generally reduced the market 
volatility. 

While Japan has been tardy in its 
efforts to liberalize its equity derivatives 
market, Hidenori Naraki, a dealer at 
Nomura Securities Co., said, “Lifting 
of single options pretty much fills the 
‘missing pieces.’ 

“What we are left to see now is listing 
of options in the over-the-counter mar- 
ket,” he added. He and others in the 
securities business reckoned that op- 


tions for the OTC market would be 
lifted sometime next year. 

Mr. Naraki said individual options 
would prove useful to individual in- 
vestors with modest portfolios. He said 


that professional fond managers would 
prefer to use options linked to market 
indexes such as Nikkei 225 and TOPIX. 


which had been available since 1989. 
because they approximate their port- 
folio structures. 

At a rime when individuals’ partic- 
ipation in the stock market has been 
thinning, Mr. Naraki said. “Single op- 
tions may serve as a chance to lure 
individuals back to the market.” (IHT) 


Goldman Uses Ecu 
As Single-Market Gauge 


Market expectations about Europe's 
planned single currency starting on 
schedule can be gauged by comparing 
the European currency unit's spot value 
against the value of the currencies in the 
Ecu basket, according to a new study by 
Goldman, Sachs & Co. 

Under the transition plan for Euro- 
pean monetary union, the basket Ecu — 
defined by a fixed weighting of 1 1 cur- 
rencies — will conven info the euro at a 
rate of one for one and Ecu assets will be 
converted at a similar rate in euro as- 


“When the value of the Ecu declines 
relative to foe basket Ecu. sentiment 
towards EMU is deteriorating and vice 
versa,” said Martin Brookes, author of 
the report. 

The srudy argues that if financial 
markets are absolutely confident that 
EMU will begin on time, the forward 
value of the Ecu for Jan. 1, 1999, should 
be equal to its basket value. 

‘ ‘The probability of EMU priced into 
markets can be calculated from the for- 
ward values of the Ecu and the basket 
Ecu,” the study said. 

Since the beginning of the year, the 
probability that EMU will happen as 
planned has averaged 75 percent, slip- 
ping to 60 percent after the French elec- 
tion at the beginning of June and then to 
just above 50 percent on June 10. 

During the second half of June the 
probability index rose and is now over 


) percent, the report said, 
ctaldman Sachs said it w< 


Goldman Sachs said it would publish 
the results of the index on a weekly basis 
so that investors can monitor changing 
sentiment toward EMU. 

( Renters 1 


Winning Converts 


maichi Securities Co. proposed a bullish, 
strategy that makes the most of the 
hybrid nature of convertible bonds: buy- 
ing issues whose issuers have the po- 
tential for rapid growth but also for 
surprise losses. Ms. Shimizu said that 
some of the issuers in the over-the- 
counter market, which otherwise would 
be too volatile for many investors, fit 
this strategy well. 

Among companies to look at is Riso 
Kagaku Corp., which makes copying ma- 
chines. It has a convertible with a coupon 
interest rate of 1.5 percent, 11 years to 
maturity, and is priced at 97.5 yen. The 
company is expected to post record 
profits for the ninth consecutive year, 
according to Yamaichi 's projections. 

THK Co. is a maker of semicon- 
ductor-manufacturing equipment and is 
projected to post ah 80 percent profit 
increase for the current year. Yamaichi 
reported. Its third convertible trades for 
94 yen with a coupon rate of 0.3 percent, 
and matures in jusr over six years. 

For those who do not mind convert- 
ibles whose prices already have ad- 
vanced by 15 percent to 30 percent. Mr. 
Miyazaki at Kankaku Securities sug- 
gested looking at internationally ori- 
ented blue-chip companies. This cat- 
egory includes Sony Corp.’s fourth 
convertible. Hitachi Ltd.'s fifth issue. 
NEC Corp.’s No. 10, and Sumitomo 
Electric Industries Ltd.'s sixth. 

The beauty of owning these near- 
stock equivalents, said Mr. Miyazaki, is 
that while providing a solid floor in the 
event of an unexpected downturn, these 
convertible obligations, as fixed-income 
instruments, offer relatively attractive 
coupon rales that easily outdo dividends 
collected from equivalent shares. 
Sony's No. 4. for example, has a coupon 
rate of 1 .4 percent, while the comparable 
stock yields a paltry 0.5 1 percent 

Although analysis were generally 
bullish on convertibles, many warned of a 
possible market correction immediately 
ahead, although they said this would be 
followed by a rally later this year. 

Ms. Shimizu of Yamaiciu said that 
investors with the right convertibles 
need not worry about a slump. She said 
the market was losing its tendency to 


Japanese convertible bond Index 


Fund Managers Shop the World for Best Bonds 




Continued from Page 17 


* ‘After the recent bond rally there, a 
; lot o£ value is out of that market,” he 
• said Australia and Canada top his list 
In Asia, regional debt funds are still 
.. few in.numbef because there, was little 
.; to buy. until recently. Only the Phil- 


To widen the choices in this narrow 


; market, one of the oldest- funds, the 
Guinness Flight Asian Currency & Debt 
Fund, started in late- 1993; also includes 
• Australia, Japan and New Zealand- Like 
_ Mr. Vemooij .and. Mri -Alley, Daniel 
Hemmant, the fond’s manager, favors 
L * Australia and New Zealand. Currently, 


economy is slowing.” 

Although he can invest in local cur- 
rency' debt in the region’s less de- 
veloped markets, Mr. Hemmant prefers 
dollar-denominated bonds for now. 
r “With things like Thailand blowing 
bp, it makes more sense to be defen- 
sive,” he said, referring to the recent 
devaluation of the Thai baht. His fund 
owns dollar-denominated corporate 
debt in Indonesia, mostly in the coun- 
try's big pulp and paper producers, such 


percentage point over 10-year U.S. 
Treasuries.” 


as five-year bonds yielding 9 percent in 
Tnriah Kial Pulp & Paper Corp. 

“It’s one of the world’s lowest-cosi 


“The fundamentals there are good right 
now, because inflation is controlled,” 
Mr.. Hemmant said. “Short-term in- 
terest rates were higher, but there is still 
a lot of scope to cut- them- because the 


producers, and it has made a profit, even 
at the bottom of the industry cycle,” he 
said. 

Mr. Hemmant also owns dollar-de- 
nominated debt of the Korean Devel- 
opment Bank. Despite the country's 


He has also ventured into China, buy- 
ing dollar-issued debt in Guangdong 
Enterprises Ltd., the development fi- 
nance company owned by China’s 
sonthem province, yielding a hefty 2.20 
percentage points over comparable U.S. 
Treasuries. 

■While they offer attractive yields, the 
real value of such bonds is in their 
impro ving credit risk, he added, as their 
issuers continue to produce good eam- 
■ ings, and foreign investors become more 
comfortable with them. Moody's In- 
vestors Service upgraded Guangdong 
Enterprises to an investment-grade Baa3 
in May, citing the provincial govern- 
ment’s vow to give the company “fi- 
nancial and other necessary support” 


political problems, he does not think 
they will have trouble paying it off. 
Meanwhile, he said, “You’re quite well 
paid for holding double A/smgle A- 
rated,. 10-year debt yielding 0.90 of a 


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move as a uniform mass, with companies 
in the technology sector, for example, 
offering brighter prospects than those in 
the wobbling construction industry. 

Y ukuo Kobayashi, general manager of 
Universal Investment Trusr Management 
Co., who runs a convertible fund, agreecL 
He said it was his selection of winning 
convertibles that placed his fund ahead of 
all of its similar competitors over the post 
two years, with a 31.5 percent return to 
Investors during the period. 

Even investors who are not now im- 
pressed with the range of Japanese con- 
vertibles available might wanr ro keep 
an eye on the market. 

Takeshi Kurosawa, vice president of 
the portfolio strategy group ar Salomon 
Brothers Asia Ltd., said that at a time 
when blue-chip exporters faced the un- 
certainties of an appreciating yen, he 
would advise a fond manager to sell 
Sony shares and use the proceeds to buy 
the company's convertibles. 

Mr. Kobayashi of Universal Invest- 
ment Trust has a handy piece of advice 
that he often gives to an individual 
equity investor: If you find a stock that 
intrigues you. check to see whether the 
share has' a convertible equivalent or 
not. and then opt for the equity-linked 
bond if the price happens ro be in a 
favorable range. “ 

“With the convertible available as an 
alternative,” he added, “One can relish 
the excitement of the equity investment 
without bearing a major depreciation 
risk.” 


Funds Reduce Holdings 
As Gold Slocks Slump 


Mutual funds that invest in gold com- 
pany stocks said they have been forced 
to reduce their holdings because of re- 
demptions by investors concerned at 
gold’s slump to 12 -year lows. 

Money managers said investors were 
increasingly ready to switch out of gold- 
mining funds as they lose confidence in 
gold as an investment following its de- 
cline of as much as 15 percent so far this 
year. 

The redemptions have helped to drive 
down the prices of gold stocks in Aus- 
tralia, North America and South Africa 
in recent days. In New York, gold has 
fallen from as high as $369 an ounce 
earlier this year to about $322 on Fri- 
day. 

“We weren’t having many redemp- 
tions but in the last few days we have 


seen some bigger redemptions and we 
have started to selL” said Marcel Brig- 


have started to sell,” said Marcel Brig- 
gen, who runs a 95 million Swiss franc 
($65.9 million) gold fund at SBC Brin- 
son in Basel. “We have been selling 


companies with high production costs 
and companies which have no hedging 


and companies which have no hedging 
programs.” 

Gold's latest ramble followed the an- 
nouncement by the Reserve Bank of 
Australia that it had sold 167 tons of the 
precious metal, or more than rwo-thirds 
of its gold reserves. 

Other central banks sold gold in the 
past year or are considering sales, such 
as Belgium and the Netherlands. 

Gold is historically used as a hedge 
against economic and political turmoil, 
acting as a safe haveo in times of rising 
inflation, for example. With the outlook 
for inflation tame in many of the coun- 
tries holding gold reserves, central 
banks in those countries are looking to 
maximize the returns on their gold assets 
by selling the metal and using the pro- 
ceeds to invest in financial assets such as 
bonds, which offer greater returns. 

“It is an extremely gloomy envir- 
onment our there,” said Graham 
French, a fund manager and director at 
M&G Investment Management in Lon- 
don. “It had reached despair stage, with 
people selling regardless.” 

Mining companies that have contrac- 
ted to sell their future production at a 
specific price to protect against declin- 
ing metals prices are in the strongest 
position to weather the storm. 

• (Bloomberg) 


When Universities Issue 


Debt, the Profit Is Yours 


Opportunities in Higher Education Bonds 


By Aline Sullivan 


M OST INVESTORS associ- 
ate colleges and universit- 
ies with debt — their own. 
But increasing numbers of 
institutions are issuing bonds ro help 
combat soaring educational costs, and 
some of the top schools offer the best 
investment opportunities. 

Most of this activity has been con- 
fined to the United States, where many 
campuses have a long track record of 
issuing debt. But universities in Europe 
and Asia may soon join their ranks, 
analysis said. State cutbacks have hurt 
all but the best-endowed institutions, 
while students are unwilling or unable 
to pay higher tuition bills. For many 
universities, bonds may be the answer. 

In Britain, for example, total long- 
term liabilities of higher-education in- 
stitutions are expected to rise to £2 billion 
(53.36 billion) this year, up from £1.2 
billion in the 1992-93 academic year, 
according to the National Audit Office. 
Forty-six of the country's 144 universit- 
ies and colleges will borrow more than 
£10 million this year, including five uni- 
versities that will borrow more 
than £50 million each. /j 

Even in Sweden, where edu- ^ 
cation has traditionally received 
unstinting support from the state, nAJJ^ 

some institutions are achieving V 

growth through private capital. IX 

Last month, Chalmers Uni- 
versity in Gothenburg signed sponsorship 
contracts with several leading Swedish 
companies and investors. University of- 
ficials forecast thar private finance should 
account for 20 percent of its research and 
doctorate funding within a few years. 

Private investors in countries where 
the state continues to finance the bulk of 
higher-education costs can best gain ex- 
posure to the sector through debt issued 
by companies that provide studenr ac- 
commodation. Sweden's Statliga 
Akademiska Hus AB, which is rated AA 
by Standard & Poor’s Corp.. is an ex- 
ample of a company likely to benefit 
from rising student enrollment figures. 

Investors in the United States should 
concentrate on the top-rated college and 
university bonds, analysts said. Moody’s 
Investors Service rates 800 of the 2,100 
U.S. colleges and universities. But many 
are recent additions, including some with 
borderline credit characteristics. 

Moody’s divides schools into four sec- 
tors based on whether they are public or 
private, and on wealth, revenue diversity 
and geographic hase of students. The four 
secrors are: flagship and land-gram uni- 
versities and university systems in the 
public sector, regional public universit- 
ies; selective, wealthy private colleges 


and universities, and tuition-driven, re- 
gional private colleges and universities. 

The flagship group has the most positive 
outlook, said Susan Fitzgerald, vice pres- 
ident, senior analyst at Moody's In New 
York. Most ofits debt is rated A1 orhigher, 
meaning it is considered at least upper- 
medium grade, partly because it is the most 
likely to benefit from improving demo- 
graphics in the college-age population. 
Particularly strong growth is expected in 
the West and Southeast United States, 
which has many of these institutions. 

Low mition bills are another plus for 
the big colleges and universities. Ex- 
amples in this sector include the Uni- 
versity of Michigan (rated a high-grade 
Aal), the University of Virginia (Aal) 
and the University of California. 

Selective, wealthy privare colleges 
and universities are also a good bet, 
analysts said. This group, which in- 
cludes the Ivy League colleges, enjoys 
strong student demand, resulting in tu- 
ition-raising flexibility even though an- 
nual charges already range from 
$20,000 to $30,000. They also have 
significant endowments, usually more 
than $ 100,000 per s rude at, and well- 
regarded research programs. 

But some of these top 

P names also have a high ex- 
posure to the risky health-care 
environment, Moody’s 
warned. For example, Geor- 
getown Lfoiversiry’s A1 debt 
rating was recently placed un- 
der review following signif- 
icantly higher-than-projected losses. 

“Even institutions whose medical 
centers continue to perform well are 
exploring new alliances, mergers or di- 
vestiture to inure their schools from 
potential financial stress in this rapidly 
changing industry,” Moody's said. 

The regional public university sector is 
rated “stable” by Moody's: Most of the 
debt is assigned either A2, as for the 
University or North Alabama, or A3, as 
for Western Illinois University. This 
group tends to have powerful links to 
local employers and enjoys focused sup- 
port from legislators servicing the area. 
But enrollment is vulnerable to regional 
economic conditions and demographics, 
while price flexibility is curtailed by lim- 
ited reputation outside the community. 


ted reputation outside the community. 

The biggest of the four segments ioen- 
ified by Moody’s is the tuition-driven. 


tified by Moody’s is the tuition-driven, 
regional private institutions group. This 
Includes the vast majority of U.S. private 
colleges and universities. Nor surpris- 
ingly. the outlook for its debt is “mixed,” 
according to Ms Fitzgerald. 

“While we believe some institutions 
will have stable-to-improving credit po- 
sitions in the coming years, others may 
experience significant financial and en- 
rollment difficulties,” she said. 


Ivy League Bonds Bond yields, 


6 . 8 %r^ 




k'jt A><r \ A' ■ 


\ y\. i 




6.6 


6 4 




:r-V'oAl 


m mmm 




yjSs vi., yv 


July 12 
1996 

Sowca: Bloomberg 


July 4 July 12 
. 1997 1996 


Deals in Emerging Asia 


Continued from Page 17 


like those of a country with a higher 
credit rating than China has, said Steph- 
en Taran, senior vice president at Leh- 
man Brothers Asia. 

The Chinese government and banks 
are planning international bond sales of 
$3.1 billion this year, more than six 
times what they issued in 1996. 

Asia's other emerging giant, India, 
has a huge domestic bond market, but 
just one international bond so far, issued 
by Reliance Industries Ltd. 

' Albert Hofman, a bond analyst at 
ABN Amro Holding NV in Singapore, 
said last week after emerging from a 
meeting with officials from the Indian 
Finance Ministry that he expected a few 
more corporate issues by the end of the 
year. 


For U.S. residents, there do not appear 
ro be any funds investing substantially 
in Asian bonds. For those living else- 
where. the following funds may he of 
interest: 


• INCOME PARTNERS GSF ASIAN FUND i, Uw grandiaiticr 
of Aiion hood fundi, loundcd m 1993 B^scd in Hong Kang, u 
luittsciiof S40Q million and usiJmiciarr up M pmcniover 
■he hu ituee > can h in'tfliuncdyineinetpn* \aan debl and 
now bold) about 70 percent L'.S -dolbr-dmomuuicd papa. 
Call E52 I8W 01 8b fot mare informal ion 

• GUINNESS FLIGHT ASIAN CURRENCY & BOND FUND 
bokli JoJkiT-deiX'mjnaied drtn in a variety of Asian cnuoiries. It 
has men 32 prteeni m three yen V bid beotue of in 25 percent 
boMutfit of Australian and Nen Zealand debt- it b included u 
1 ‘Global FLved Imereti cateeorv ‘ by Mmopol Lid. . the f und- 

, I-.II IRhl ftKkH for mmr infwmMm 


lrarLmg craipan) Cdl 652 28b] 08 K 8 for more inforruanoti 
• JARDINE FLEMLNC ASIAN BOND FUND has been on 
offer k> unction uric* February At the end of May. the fund 


si ill held 42 ncrceni of lit ponfolm in cash and I4.b percent in 
US bonds. Indents tan bonds made up IS eercem of holdings, 
and the Philippines 12.8 percent. Call *52 2843 8777 for more 
information. 


• I WES CO has a mo-iear-ofd Asm Ex Japan convertible hood 
fund, up 1 3 percent in the Iasi yeas With just Sb million in ibe 
fund, u has imck m«tl> to dollar -denonmaied Hons Kang 
paper, ibe region's mow liquid marker Cali 852 2868 3228 for 
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Spaniards Dominate 

tehihs Wayne Ferreira was the 
only non-Spaniard to survive Friday 
in the Swiss Open in Gstaad. 

Ferreira, the No. 8 seed, beat 
Marc R os set of Switzerland, 7-5, 7- 
6 (12-10) to reach the seini-final 
alongside Alex Corretja, Juan Al- 
bert Viloca and Felix Mantilla. 

Viloca, 24, beat Nicolas Kiefer 
of Germany, 6-4, 6-3. Conetja beat 
another Spaniard, Alberto Be- 
rasategui, 6-4, 6-0, whi Mantilla 
also defeated a countryman. Javier 
Sanchez, 64, 6-3. 

"They all play the same,” said 
Ferreira, who plays Mantilla next 
"Different face, same player, but 
he's very hard to beat,” 

• Boris Becker has entered die 
upcoming U.S. Open tennis tour- 
nament, ending speculation that his 
recent Wimbledon appearance 
would be his last at a Grand Slam. 

After Becker, 29, lost his quarter- 
final to Pete Sampras at Wimble- 
don, be said it was bis last ap- 
pearance at there. (Reuters) 

UEFA Cup Final Halved 

soccer Next season’s UEFA 
Cup final will be settled in one 
game instead of die traditional two 
legs , Lennart Johannson, president 


soccer, said Friday. (Reuters) 

Bird Makes Bench Debut 

BASKETBALL Larry Bird made 

his NBA coaching debut Thursday 
nig ht as his Indiana Pacers beat the 
Atlanta Hawks, 88-75. in the At- 
lanta Summer Shootout, a mini- 
tournament of four NBA teams 
made up mostly of rookies. 

In the other gpie, Cleveland beat 
the Boston Celtics, playing without 
Coach Rick Pitino, 85-75. Pitino 
was delayed in Boston by nego- 
tiations involving Dino Radja. 

"1 prepared my team pretty 
well," said Bird, who sal on the 
Pacer bench. "As a player, if I 
prepared myself, I had no worries. 
When you're not prepared, you get 
nervous." 

The Hawks' coach. Lenny 

Wilkens, said bench coaching dur- 
ing a rookie games was unusual. 

"I can't remember the last time 
somebody did it,” he said. “Most 
coaches today have the experience. 
Larry hasn’t had any, so it's prob- 
ably good for him.” (AP) 

Warriors Hire St Jean 

BASKETBALL Garry Sl Jean, a 
former Golden State assistant 

coach and head coach of the Sac- 
ramento Kings for four and a half 
seasons until he was dismissed in 
March, was hired as the Warriors’ 
general manager. (AP) 

Who Owns the Islanders? 

ice hockey Several meetings 
took place over an 1 1 -hour period 
at NHL headquarters to determine 
who owns the New York Is- 
landers. 

Gary Bettman, the NHL com- 
missioner, acted as an arbitrator 
between representatives of current 
owner John Spano and former own- 
er John Pickett, who has charged 
Spano with missing payments, at 
the meetings. No decision was 
reached. (AP) 

Anaheim Isn’t Boston 

ice hockey Ken Baumgartner, 
the former Anaheim Mighty Duck 
enforcer, discussing his recent 
move to the Boston Bruins: "In 
Anaheim, if you walked downtown 
with a black eye, chances are 
people were going to cross the 
street when they saw you coming. I 
don’t think that will happen 
here." (LAT) 


lY‘ 


Two Riders Expelled 
After Raucous Stage 

Abdoujaparov and Steels Go, 
Zabel Stripped of Stage Victory 


by Oar SLiffFmm tkspmcbts 

MARENNES — Tom Steels and 
Djamolidine Abdoujaparov were dis- 

3 u glifi ed from the Tour de France on a 
ay which also saw Erik Zabel stripped 
of victory after winning the Friday’s 
sixth stage. 

Evgeni Berzin, the leader of the Batik 
team, broke a collar bone and with- 
drew. 

Steels, a Belgian with the Mapei 
team, was expelled for "violent be- 
havior” after he threw his bottle at 

Tour de France 

Frederic Moncassin, a Frenchman who 
rides for Gan. at the start of the final 
sprint 

Hours later, Djamolidine Abdouja- 
parov, an Uzbek with the Lotto team, 
was disqualified for failing a drug test 
And Zabel, a German with the 
Telekom team, was relegated from first 
to last place in the 215.5 kilometer ( 1 34 
mile) stage which ran from Le BJ one to 
die oyster port of Marennes in western 
France for “dangerous tactics.” 

The stage was awarded to Jeroen Blij- 
levens, a Dutchman with the TVM 
team. Cedric Vasseur, a Frenchman 
who rides for Gan kept the yellow jersey 
he won in a long breakaway the day 
before. 

Abdoujaparov, a former winner of 
the Tour points standings, was disqual- 
ified from the race for failing a test at the 
end of the second stage between SL 
Valery-en-Caux and Vire on Monday. 

Organizers did not immediately say 
what substance had been found in the 
rider's urine, but his Lotto team director 
Jean-Lac Vandenbnmcke said two 
banned products had been detected. 

"It's my first doping case in nine 
years as a team director. This is very 
annoying especially as two products 
have been found,” be said. 

"We don’t know where the first one 
comes from, but the second was given 
by a member of my staff, whom I sacked 
immediately. 

"1 cannot accept people acting be- 
hind my back." 

Zabel, the winner of Tuesday’s stage 
in Plumelec, appeared to have won the 
stage, surging through in the last 300 
meters, but after studying the finish on 
video the organizers decided Zabel was 



The Amuiacil Prc-s 


Erik Zabel celebrating after crossing the line first Friday ahead of 
Djamolidine Abdoujaparov, left. Both riders received bad news later. 


Scoreboard 


ci: 


Major League Standings 


EAST DIVISION 


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448 

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Cleveland 

44 

37 

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Chicago 

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42 

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Minnesota 

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Pittsburgh 

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<■■■ . — 






guilty of "irregular sprinting." 

Telekom manager Rudy Pevenage 
said his team had appealed against tne 
decision. 

“We’re very surprised by this de- 
cision because our rider was alone in the 
last 250 meters and stayed in line 
throughout the sprint,” he said. - 

Mapei appealed against Steels’ dis- 
qualification which followed an inci- 
dent at the finish when he threw his 
water bottle at the Frenchman. 

The judgment against Zabel at first 
lifted Abdoujaparov from third to 
second place before it was announced 
he had been disqualified. 

Vasseur, winner of Thursday’s stage 
after the only successful breakaway of 
this Tour, retained the overall leader’s 
yellow jersey but also had a big scare as 
crashes again marred the race. 

He was held up in the second pile-up 
of the day but managed to catch the 
leading bunch with the help of his team 
mates. 

"Ji was a little fright,” the GAN rider 
said. 

“To ride with the yellow jersey on 
your back is even more exciting than 
winning it," be said. 

"1 did not ride a mile without hearing 
people shout my name. I will never 
forget it. It was wonderful.” 

The strong wind on the Atlantic 
coastline of western France may explain 
the falls, which spared hardly anyone. 

Berzin, winner of the Giro in 1995 
and who wore the yellow jersey for a 
while last year, was involved in one of 
the crashes. 

- Berzin remounted and arrived in 
160th position, but X-rays confirmed 
the fracture and Berzin advised officials 
of his decision. 

He was the third race favorite to quit 
with the same injury after Swiss riders 
Alex Zulle and Tony Rominger were 
injured earlier this week. 

On Saturday the Tour will reach Bor- 
deaux for a record 75th time. Sprinters 
have generally won in the famous wine 
city. 

The route had to take a detour when a 
group of protesters against nuclear 
waste passing through their area 
blocked the road. Organizers diverted 
the riders at the 77th kilometer (48th 
mile)' to go around the demonstration 
before getting back on the main route. 





SHADOW BOXING — The Iraqi boxing team training in the desert after its bus broke down oh the >ay 
to Lebanon. The boxers were heading for the Arab Gaines even though the the Lebanese had refused to 
issue visas to the Iraqi delegation after Kuwait and Saudi Arabia threatened to boycott tbe JSaraes. 


Sorenstam’s 


By Bill Pennington 

New York Times Service 

NORTH PLAINS, Oregon — Annika 
Sorenstam's quest for a historic third 
consecutive United States Women's 
Open championship began in the chill of 
early morning beneath a dark sky and a 
steady rain — a setting that the stoic 
Sorenstam greeted dressed in black. 

And then things got really bleak. In 
less than two hours, Sorenstam was at 5 
over par, a nine-hole odyssey that in- 
cluded a three-putt from six feet and a 

U.S. Women's Open Goir 

swipe in knee-high grass that advanced 
her ball three inches. For the two-time 
defending champion, the moment of 
complete disintegration came at the 
388-yard (353-meter) par-4 ninth hole, 
where she recorded a triple bogey 7. 

"I was so confused," Sorenstam 
said, describing her mood at the halfway 
mark of the first round Thursday. "J 
said: ‘How do I get out of this? Take me 
away from here.’ ” 

Instead, Sorenstam plodded on, 
adding another bogey to finish with a 77 
at the Pumpkin Ridge Golf Club. She is 
nine strokes behind the first-round lead- 
ers, Susie Redman, Kelly Robbins and 
Deb Richard, and at 6 over par, Soren- 
stam risked missing the cut after the 
second round Friday. 


Despite her struggles, Sorenstam was 
remarkably buoyant afterward, describ- 
ing her troubles on the greens and in 
several bunkers with self-deprecating 
humor. Before departing, however, she 
added: "I haven't given up at all. I know 
how to play the course. I’m not going to 
leave here until I beat it” 

Sorenstam did not say whether that 
might mean remaining in Oregon after 
the weekend. Sorenstam is attempting 
to become the first woman to win three 
successive U.S. Opens. In 1905. Willie 
Anderson won the last of his three con- 
secutive U.S. Opens, and no man has 
duplicated the feat since then. 

Five women have won back-to-back 
U.S. championships but failed in their 
"three-peat” attempts. So Sorenstam's 
task — already difficult — just got 
harder. She will have to vault the vast 
majority of die field, including her sister 
Charlotta. Charlotta labored with her 
game Thursday too but managed to bet- 
ter her older sister by one stroke. 

"Jt was one of those days when you 
don't know what's happening," Annika 
Sorenstam said. Asked whether all the 
attention that surrounded the defense of 
her title had affected her game, she said: 
"It must have. What else do you say 
when you are five over par after nine 
holes? I cannot remember the last time I 
had that score after nine holes.” 

On the ninth hole, Sorenstam drove 
into a fairway bunker, then sliced a 9- 


I 


wood into the deep rou^ .cmth^xi^it'- 
side of the hole. A spectator in tfae gal- ’ 

and her caddie failed to locate it 
minutes of searching. - 1 .' V? 

Sorenstam’s first swing at the ball if 
with a sand wedge moved it three 
inches. A second swing advanced it 'to , 
the green’s fringe. Froni there, she?, 
three-putted. • ’’-V i- 

Sorenstam’s .adventurous . ' . round V 
overshadowed a brilliant day of golf by-^ 7 
Redman, a 13-year veteran of the£adies ^ 
Professional Golf Association, wbo ^ 
came up with a hole-in-one on- the ISliy 
yard 15th hole. V . ” ' • 

"I’ve never had a hote-in-one ;ber •;! 
fore,” Redman said afterward, “and my *' 
first thought was, ‘Wow, that makes the- "" 
rest of this hole really easy for me.’ ”,. 

Two years ago, coming off the, golf ■'* 
course during a tournament, Redman - ; }[ 
was told that her youngest child, Jessie, >; 
who was then 5 months old; had cancer. 

"They told me he would die ur afew ■ 
days,” Redman said.. "He had a golf- 
ball-sized tumor ‘pressing oir fads wind- 
pipe. But four months later, he had 
surgery to remove the tnmor. He’s, in 
remission now.' He’s fine. It’ll never 
come back. But it’s something rtbai 
changed my life forever. I walk around 
the golf course with a smite' now, ho 
matter what happens. I smile, with: a 
bogey, or a double bogey.” 

Or a hole-in-one. ' 


Lehman Leads British Open Warm-Up 


Reuters 

LUSS, Scotland — Tom 
Lehman continued his superb 
buildup to next week's de- 
fense of his British Open title 
shooting a four-under- par 67 
in the third round Friday to 
lead the Loch Lomond World 
Invitational by two strokes. 

Overall, Lehman is 15-un- 
der on 198. Second is Pierre 
Fulke of Sweden, who fol- 
lowed the completion of his 
weather-delayed second 
round of seven-under-par 64 
early Friday with a round of 
66 while playing with Leh- 
man and the 1996 U.S. Open 
champion. Steve Jones. 

Although he bogeyed the 
last hold for the second rime 
on the day, he finished two 
ahead of Jones, who com- 
piled a 68 to hold third place 
at 202. 


Ernie Els, the U.S. Open 
champion, was fourth on 204 
after a 65. Greg Norman bo- 
geyed the last hole to frill back 
into a share of fifth place with 
the Englishman Paul Curry. 
Both are at 205. 

Fulke, who had a hole in 
one in the opening round, said 
he was surprised to be playing 
so well. He placed 23d on the 
1994 European Tour money 
list, but after he finished third 
in the French Open in 1995 
his game fell apart. He slipped 
to 84th on the money list that 
year and 93d last year. This 
season he has a new caddie. 

"I haven't had much luck 
with coaches, maybe because 
I’m not a technical sort of 
player,” he said. "So I’m us- 
ing a new caddie, and we have 
discussed a few things which 
seem to have helped." 



(8), McMkftoef (81. Jo. Franca (9) and 
Hundley; Smoltz. Embree (8]. Wohlers (8). 
BfetecW (9), Chintz (9) and Edd. Perez. 
W— McMIchoeL 5-4. L— BwlodO. 3-5 
Sv — JuFramn (21). HRs— New Yorli. 
Hundley Q0I, Alexander (21. Atlanta. 
ChJones (151. Edd.Perez (4). 

PMoJetoW a 000 Ota 02-7 10 1 

Florida 000 OR 801-8 18 0 

Becdt Gomes (Si. R. Harris (5). Ruftaun 
(71, Spradlin «J,8oTlaBco(9)andLlebeittioi; 
Saunders. PowoU (7). F. Hera* (8). Hlrttw 
(8). Nen (9) and C Johnson. W— Nea 4-2. 
I— SprotS a. i-Sl HR— PNtodelptita, 
Jefferies (61. 

San Otago 401 300 030-11 H 0 

Cotorada 281 820 DOO-S 9 1 

Ashby. fcrusKe (71. P. SmHh (91 and 
Ftahorty; Buric. DcJcon (Sl. Dtooto (7), 
Lnkonk: (91 ami Je.Rcod. W— Ashby. 5-5. 
L-Bwtc. 7-S. HRs— San Diego CamlnW 2 
<81. ColoaKte L Walker (26). 

SaaFrandsco ooo BOO 000—0 3 2 

LasAngete 100 182 061-11 16 1 

Raeter, -taring one (6), Poole (81 and 
BerryWU; Parit Dcetfor! <81. Owma (91 raid 
Piazza Prince (9). W— Park. 6-1 L — Reefer. 
5-4. HRs— LA. Piazza <171. Cnmwr (I) 

Japanese Leagues 


Swedish Open 

ME7T a SINGLES 
QUARTERFINALS 

Juary Antonia Matin, Spain, tfrf. Thomas 
NydohL Sweden. 6-2. «-i. Magnus Norman 
(4), Sweden del. Jell Tarangn USA. 6-Z 6-3; 
Korol Kuccm (S). Slovakia del. Magnus 
Lorsson, (3), Sweden 6-4. Latsson abandons 
match.’ Cortos Costa Spam del. Pamfc 
Fredrikssan Sweden 6-Z 6-3 
heks doubles 
QUARTERFINAL 

Jeff Torongo and Jack WaUc, u.S„ def 
Brendan Coupe. U.S- and Paul Rosnorm. 

South Africa 7-5. 6-1. 

SEwmWAL 

Nkkbn. KuOi and Maud TiHslreein Swe- 
den del. Brent Hargantc South Africa and 


Prirr KnfWTIr tansM Ihw* 

Steve Jones watching his tee shot on the third bait in 
the Loch Lomond Invitational’s third round Friday. 


James “Buster" Douglas. Unfed State*. *s. 
Quinn Navarre, Untied Staton I U-round rem- - 
life heavyweight bout ' 

Monday, July 14 , 

Tswm, Kaitavy vary, Czech RepabO&r- '. 
women, WTA Toot Czech Open. Through 
July 20c Patefma Italy— women, WTA Tout- 
Tomeo Intern azlonale. Through July 2ft ' 
Stuttgart. Germany — men ATP* Tow AVer- 
cedes Cup. Through July 2ft Washington - 
men ATP Tout Lcgg Mason Tennis Classic. 
Tbrotign July 30. 

Tuesday, July 15 • ■ 



AMERICAN LEAGUE 

boston —Activated IB Mo Vaughn Iran 
15-day disabled Sst Optioned INF A r- 
quimedez Pom to Pawtucket IL 

Cleveland -Activated OF David Justice 
from 15-day disabled ha. Optioned INF 
Odiqtan Jodwm to Buffalo, AA. 

KANSAS —Activated OF Bip Roberta tram 
15-day disabled Ost Put OF Jermaine Dye 
and 2B Jose Offermon on 1 5- day disabled fcst. 
Recalled C Mike Sweeney and OF Rod Myers 
from Omaha AA. Opnoned C Sal Fasano to 
Omaha Activated RHP Jose Santiago ham 
15-day disaWctf JfcJ and opnoned Aim to vvv 
Chita. TL 

HEW va*K YANKEES- Called up RHP 
HidcM Irabu from Columbus. IL Ophoned 
RHP Jim Met* to Columbus. 


Grog von EmOvrglw U4, 6-3, 7-6 (7-4). 


The Week Ahead! 

( CYCLING 


Saturday, July 1 2 ' 



w 

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ASS 

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115 

Yokohama 

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Nippon Ham 36 

39 

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480 

85 

Kintetsu 

30 

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Lade 

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HHDtT'S BUUIXS 



CENTRAL LEAGUE 

ChmOcWJ HanthinZ 
Hiroshima vs. Yomluri ppd doe to ram 
PACVK LEAGUE 
Nippon Ham 6 Kmtotsu 3 
Oalei4. Otx 3 


Tour de France 

Loading placing* in me 216 km (134 2 
tnitoo) mh itago irom La Bhmee n 
Maronrm 

1. Jeroen Bllftawm, Nethcriondi TVM, 5 
hows. SB minutes. 9 seconds 3. Marta 
TransvcronL Italy, Mt-rcatonc Una swno 
time; 3. Nicola Mmail Holy. Balfk. sJ; 4. 
Fiederir Moncassia France. GAN. vlj 5 
Romup McEmm Auslrofia Haaobank. s.f. 
6. FaMo Baidal o. Italy. MO. si. 7 Damien 
Nazim. France. FOJ. s.t; 8 Massimp 
strazw, Italy. RusWto. s.L 9. Francois Si 
man France, GAN, sl. 10. Laurent Geniy. 
France, Big mol s.l. 

ovcmuj 1 Cedric Vasseur. France. 
GAN. 34:17:44; 2 Enk label Germany. 
Telekom. 2.00; 2. Mono Ctaotani. Italy. Saeco. 
7 I L 4. Chris Board man. Britain. Cm. 2.54, 5. 
Jon UBrUi Germany. IrJekom. 2.54 4. 
Franck Van den Bnucirc, Brigwm. MapcL 
J.VL7 Stuart ii'Grady. AuMrata-GAN 3^3 
B. Frederic MorY.a-.-4n, 3 04. 9 Abraham 
OlurHfc Spain. Baar-.to 3.04. 10 Lauren) jpi. 
obert. FiiJtk.c. ONCE. 3 06 


Meeting. 

AUTOfuama. Sonoma. California — IM- 
SA. CaTifonUa Grand Prts. 

Ruaanr union, Sydney, Auitrnita — test 
Airthdliays. EngtamtSonFrancbca— sec- 
ond test US n. Woles. 

auto ruenta. SityerstanB Enghmd - 
FIA, Formula One. British Grand Prtt QVOi- 
itying 

7VMH13, various sfes- Fed Cup, WotM 
Group through July 11 ScmHtash: Czech 
Republic v?. Ncthertands. France trs. BcF 
9'um World Group I US w Japan; Swdzcf. 
hind vs. Argentina- Australia vs Spaa Ger- 
many *s Croatia World Group 2: Austrian. 
Saum Africa- South Korea vs. Russiee Indone- 
sia vs. Italy. Slovak Repubfe vs. Canada. 

Sunday, July 1 3 

auto MCMQ. Sriveratone. England — 
FlA. Formula One. Brriish Grand Pnt 

SOCC8H. Tashkent. Uzbekistan — World 
Cun guobfyinc. Asm. first round. Group S. 
u.-t>ekrJor. u-. Yemen. 

DQklwa. Bilovi .VisSiSsippi — beung. 


nuosv union. Ontario— Canada Rep- J 
raMtrtativeXVw. WMs. 

Wednesday, July 1 6 • i. f 

ATHumcs. Nice France— Grand Prf*. 

Thursday, July 1 7 - 

aoLR, Troon. Sariiand - 126th British' 
Opea Royer Troon Golf Out*. Through Jiriy 
20; Mod Iso rt Mississippi — US. PGA Tow, 
Deposfl Guaranty Ctosfc. Through Jiriy 2ft 
New ftKtefltv Nov Ycrt— mnmtUJ.LP* • . 
GAiJAL Big Apple Ckxelc Through July 20 .. - • = 
Friday, July IB v 7 ; : 

OoiA Coon Rapids, Mtanenta— U5. '■ 

Sontar PGA Toor, Burnet Senior Classic ’ 
Thiwigh July 2ft hUgn&hftairta, Jopan — .f 
woifea Japan LPGA Resort Trust Lodles. 
Thmuch July 2ft 

Saturday, July 1 a 

*0*0*0, London — Prince Nosaeo 
Komcd defends his WBO and IBF f«ntv V. 
etwwght Bios sgainst Poster Movtlft of Ar- S4 
oertfei. 

Pretoria. South Atta - W 
Til Nations. South AlHca m. NaniZeNantL 

Sunday, July 20 ’ /I 

Notoroycle raomo, Nurbuigring, - • 
“"feny— Gentian Grand Pfe. ■ * 

EOCCEH, World Cup guafitytng, South ; . 
Anwrica BoOvlo rl. Uraguo« CMe n, 
Pmaguoy: Coiombra vs. Ecuodoi; Araenftao 

w Venezuela 


j)i L J* MSP 











INTERNATIONAL HERALD TRIBUNE. SATURDAY- SUNDAY, JULY 12-13. 1997 


PACE 21 


SUNDAY. JULY l2 l j 


SPORTS 


An Impressive Debut for Irabu 

JHe Stymies Tigers and Gets a Standing ‘O’ From Yankee Fans 



j V ihx, 

us broke down 


the w av 


Lfl*? T* hadref ^ed!o 

id to boycott the (W 


■ By Rachel Alexander 

I Washington Post Scn tce 

! NEW YORK — It was after the 
■second inning, when the New York 
Yankees right-hander Hideki Irabu had 
•struck oat four of the first six Detroit 
^Tigers at Yankee Stadium, that it be- 
came clear the 28-year-old Japanese 
Tookie had done the near impossible: He 
, .had managed to live op to six months of 
1 f-New York hype. 

! “This was more than what I dreamed 
•of," Irabu, who speaks little English, 
|said through an interpreter. “I wouldn’t 
•sell the feeling I have tonighr for any- 
thing. ” 

1 He wasn’t perfect, but Irabu, who was 
credited with the win in the Yankees’ 10- 
'.3 victory Thursday, struck out nine in 
•six-and-two-thiids innings, allowing five 
'hits, four walks and two runs. Sixiy-one 
•of his 98 pitches were strikes. He showed 
|off his fastball. He showed off his split- 
iter, which can travel almost as fast and 
)looks even more deadly. He showed off 
ihis temper, kicking at the ground when 
;be faltered momentarily in the third ki- 
lning, but mostly he showed off his nerve. 
•Twice, in the third and the fifth innings, 
|he pitched himself out of serious trouble, 

4 -and both times his new teammates fol- 
* lowed with rich run support 
. His truest display of fortitude may 


James. ; Jhave been just walking to the mound. 


"I’ve never seen this type of pressure 
on a Yankee in 25 years," George Stein- 
brenner, the team's owner, said before 
the game. "And we have had some pretty 
good ones here — Reggie Jackson, Cat- 
fish Homer. But nothing like this.” 
Steinbre nner never has been the mas- 
ter of understatement, but that decla- 
ration seemed somewhat minor in the fog 
of hype that blanketed Irabu's arrival. 

On Wednesday, Mayor Rudolph Giu- 
liani held court for Irabu on the steps of 
City Hall, presenting him with a crystal 
apple from Tiffany's. 

On Thursday morning, the New York 
newspapers weighed in, with the Daily 
News and Newsday announcing 4 ‘Here’s 
Hideki.” and die New York Post pro- 
claiming him the "Bronx Bonzai.” 

The 6-foot- 3 (187-centimeter), 230- 
pound (105-ktio) hurler drew a crowd of 
51 ,901, abouta third of whom left as soon 
as Irabu trotted from the mound with two 
outs and none on in the seventh. 

"It was tough to say this is just another 
ball game,’ ’ Joe Torre, the manager, said 
beforehand. At no other ball game, for 
instance, do fens drape ‘ ‘sanshin" cards 
— the Japanese ward for strikeout — 
over the stands each time a pitcher fans a 
batter. "When 1 talked to him before the 
game, the only thing I tried to get across 
was that it’s baseball, so try to enjoy 
himself, and that we’re on his side.” 
Torre and the Yankees have been 


eyeing Irabu for more than six months, 
although major league baseball's in- 
terest in the Japanese Pacific League's 
strikeout and earned run average leader 
had been building for three years. In 
January, the San Diego Padres were 
awarded Irabu's rights, but the pitcher 
said he wanted to play for the Yankees. 

On April 22, the Yankees sent the 
Padres a highly regarded outfield pros- 
pect. Ruben Rivera; a minor league 
pitcher, Rafael Medina, and $3 million 
for Irabu and three minor leaguers. 

Then the hoopla really began. Irabu, 
who signed a four-year, $12.8 million 
contract, played six games in the Yan- 
kees’ farm system, mostly impressing 
but occasionally stumbling. He had a 3- 
1 record and a 3.88 ERA with 34 
strikeouts in 31 innings. He allowed only 
one walk, but be racked up six balks, and 
runners found it easy to steal 

On Thursday, thanks to some work by 
the Yankees’ pitching guru, Billy Con- 
nor, the balks disappeared, and the Ti- 
gers managed just one steal. 

Torre took Irabu out in the seventh 
inning. "I did that so the fans could 
show their appreciation," Torre said. 

The fans gave Irabu a standing ova- 
tion as he left the field, and the newest 
Yankee accepted high-fives from his 
teammates before stepping back out of 
the dugout to salute the crowd with a 
wave of his cap. 







ig Bleak 

no the irfwpK'Li^oMher* 


The Consensus: He’s ‘the Real Deal’ 


e ui iim 

• of searcrung. 

Islam's fir?: j; Ihe ^ 

v, r^- : -d si ifanx 
A second ir.j. ^ „„ 

vn s tnr.ge. Fr»»n thro, dv 

itted. 

Islam's ad\ sn’.ur^u% roun 
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ti a in-n ■, > >; -hr L jdj£ 

tonal Go.: Aiv-jiatui'n. wtr 
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th hole 

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ledrrun wi-i .ir.cr.-.^rd. "and nr 
light w ts. "A o;a . Hi jt jnafcp. lit 
his hole re ail » o.-\ :-.*r me ‘ " 
years ago. vorr„: ; j -n the ert 
during a s^drr.ji-.’cja. Reditu 
J thiit her your.evrf child. 
s then 5 r..d canes 

:v jvMij me he Jieina!e» 

Redman . "K.- lud j gnli- 

sd tumor or. Ii.> wind- 

lul four "ij'er. he has 

to reitiov c ir.e mmor He’si 
3n now. He'- : It'll new 
jack. But if.- -.viiv'-hinc tic 
1 my life r« 're--. .' i J'Wt 

f course «i:if. .■ *‘uiit r.v». a 

what happen? i vmile 
ar a double begev 
hclc-in-one. 


Warm-Up 


By Murray Chass 

New York Times Sen-ice 

NEW YORK — Brian Hunter did not 
get a hit, or even get the ball out of the 
infield, in four tries, but be proclaimed 
afterward. “He’s pretty good, not bad 
for a rookie, but he’s not ready for the 
major-league level." 

«\ Raul Casanova, who stroked a single 
'and a double in his first two tries, said: 
“He’s a good pitcher. He belongs 
here." 

The center fielder and the catcher for 
the Detroit Tigers were talking about the 
pitcher almost everyone else was talking 
about Thursday night at Yankee Stadium 
as well — the Yankees, die Tigers, the 
51,901 fens. 

. The overwhelming consensus among 
The Yankees and the Tigers — excepr 
for HUnter — was that the Japanese 
■pitcher Hideki Irabu is "the real deaL" 

Buddy Bell, the Tigers’ manager, was 
impressed with Irabu's poise and com- 
posure. 

“They were about as good as they 
can be under these circumstances, ’ * Bell 
said. "L can’t imagine going over to 
Japan and feeling very comfortable.” 

David Cone, one of Irabu’s new team- 
mates, said he too was most impressed 
with Irabu’s poise and command. ' 'This 
was probably the biggest game he’s ever 
pitched in his life. Cone said. "He 
knows what he’s doing out there. He’s 
got a real good feel for pitching.” 

Mixing split-finger festballs and fast- 
balls that surprised the Tigers because 
Lthey were not as fast as advertised, the 
[28-year-old right-hander got eight of his 
first 12 outs on strikeouts and finished 
with nine in bis 6% innings of work. He 
threw a strike on the first pitch to the 
first eight bagers. 

■ ; He allowed five hits but not an out to 
■the outfield until his next-to-last batter 
Jin/the seventh. Perhaps most impress- 
ively, after be plodded through his most 

'’difficult inning in the fifth — an innipg 


in which he threw eight consecutive 
balls — he dispatched three Detroit bat- 
ters in the sixth on seven pitches, then 
finished off the two batters he faced in 
the seventh with four pitches. 

After walking only one batter in 31 
minor-league innings, Irabu walked 
four in the first five innings Thursday 
and went to 3-2 counts on three others. 

But after throwing those eight con- 
secutive, balls to Travis Fryman and 
Tony Clark in the fifth, which loaded the 
bases after Bobby Higginson's. run- 
scoring single, Irabu retired Bob 
Hamelin on a firsr-pitch grounder to 
Charlie Hayes at third base. 

"That was a bad at-bat,” Hamelin 
said. "I got to get a better pitch after he 
walked those guys. I saw the fastball and 
went out and got it, but it kind of dived 
away from me a little bit That was the 
first time I saw that. The other fastballs 
were even and straight That one had a 
little bit of sink.” 


Joe Girardi. Irabu’s catcher, who said 
he had "a blast” catching the newcomer, 
said the pitch had surprised him, too. 

"He threw a sinker, which I didn't 
know he had,” he said. "I don't know if 
it was by design or he just dropped his 
arm. I called for a fastball, and I didn't 
expect the ball to sink so much. It was 
pretty nasty. Tm glad Hamelin swung 
because it shocked me.” 

Fryman, the most experienced De- 
troit hitter, liked what he saw. “He did a 
good job, and I think he’s going to be a 
good pitcher," the third baseman said 
But Flyman also suggested a pattern 
that could develop against Irabu. 

"I chased forkballs in the dirt both 
times, ' ' he said of strikeouts in his first at- 
bats. "The third time up, I laid off them 
and was able to worica walk. I think that's 
what you’re going to see, teams being 
aggressive ami swinging at a few bad 
pitches; then I think as teams get to see 
him, they'll be a little mare patient” 





MlljlJirlRrlrtPI. 

Hideki Irabu pitching during his major league debut at Yankee Stadium. 

A ‘Load Off 5 for Alomar 
As Hit Streak Ends at 30 


Japanese Tune In to Yankee Stadium 

The Associated Press 

TOKYO — Japanese fans stopped on their way to work to watch Hideki 
Irabu make his major-league debut with the New York Yankees — and they 
liked what they saw. 

All over fee country, fans saw live coverage of the righthander pitching fee 
Yankees to a 10-3 victory Thursday night over fee Detroit Tigers. 

NHK, Japan’s public broadcaster, showed fee game on 52 billboard-sized 
screens in 26 Japanese cities. 

Hie game appeared live on one of its satellite channels starting at 8:30 AM. 
on Friday in Japan and was replayed later in the day. The coverage matched that 
given to major-league playoffs. 

Though rain kept fee crowds down, hundreds of fans settled in front of a 
giant outdoor screen in Shinjuku to cheer the husky Japanese pitcher. Thou- 
sands more paused for a glimpse of the game as they commuted to work. 

Irabu's debut captured attention in Japan not because he was an especially 
popular player but because fee Japanese are proud to have sent another star to 
fee U:S. major leagues. 

"He did a great job,” said Katsuyoshi Suita, a cleric in a shop that sells dried 
seaweed. ."It makes Japanese baseball look good when players raised here 
make it to the majors." 


The Associated Press 

After Sandy Alomar's 30-game hit- 
ting streak ended, he sounded almost 
relieved. 

Alomar, fee All-Star Game's most 
valuable player, went 0-for-4 in Clev- 
eland’s 8-2 loss Thursday night at Minne- 

AL Roundup 

sola. He popped up to end fee game, and 
fell short of matching Nap Lajoie 's team- 
record hitting streak of 31 set in 1906. 

"It’s a load off my back." Alomar 
said. "I swung at a lot of bad pitches 
tonight. I felt anxious. I wanted to get it 
early.” 

Brad Radke won his seventh straight 
start pitching seven effective innings. 
He struck Alomar out twice and also got 
him on a grounder. Greg Swindell 
pitched in relief for the Twins, retiring 
Alomar on the popup for the final out. 

David Justice had three hits for the 
Indians in his first game back from the 
disabled list. 

White8ox6| Royals 3 Tony Muser lost 
in his debut as a big-league manager as 


Kansas City dropped its ninth in a row. 

Muser. the former Chicago Cubs' 
batting coach, was hired Wednesday 
when Bob Boone was dismissed. 

Frank Thomas and Ray Durham each 
drove in three runs for the visiting White 
Sox. Durham homered, doubled and 
scored a career-high four runs. 

Mariners 1 2, Rangers 9 Joey Cora hit a 
three-run homer during a seven-run fifth 
inning, and Seattle overcame another 
big game by Juan Gonzalez to beat 
Texas at fee Kingdome. 

Gonzalez hit his 21st homer and 
drove in five runs. Jay Buhner tripled 
and doubled twice for the Mariners. 

Rod Sox 8, Blue Jays 7 Nomar Gar- 
ciaparra hit a leadoff home run in the 
first inning and drew a bases-Ioaded 
walk in the 1 1th that lifted Boston over 
Toronto at Fenway Park. 

Mo Vaughn, who missed the previous 


a two-run homer for fee Red Sox. 

Angala 8, A thirties 4 Jim Edmonds, 
who had not played in a week because of 
knee trouble, hit a homer and drove in 
three runs ‘as Anaheim won in Oakland. 


Astros’ Kile 
In All-Star 
Form as He 
Tops Pirates 

The Associated Press 

Darryl Kile saved his All-Star per- 
formance for the Pittsburgh Pirates. 

The Houston ace. a spectator at fee 
All-Star Game on Tuesday night in 
Cleveland, limited Pittsburgh to six hits 
in his third shutout of the season as the 
Astros routed the Pirates 7-0 on Thurs- 
day night. 

"It's a big series for both teams." 
said Kile, who pushed Houston into a 

NL Roundup 

first-place tie wife Pittsburgh in fee Na- 
tional League Central as Houston ended 
Pittsburgh's seven-game winning 
streak. 

‘ ‘This was kind of a little exclamation 
point on top of malting the All-Star 
game,' ' said Larry Dieiker. the Houston 
manager. ‘ ‘He didn't get to pitch, but he 
showed why he was picked." 

"He's probably the best in fee league 
right now.” Pirates manag er Gene La- 
ment said. “He used to bounce quite a 
few curveballs up to the plate, but he can 
throw it for strikes now whenever he 
wants to." 

"When he's on, he's as nasty as any 
pitcher in the league." Pittsburgh's A1 
Martin said. “His curveball is so nasty, 
and he throws it so hard yoa can't even 
see fee seams on fee ball sometimes." 

Kile also had a run-scoring single 
during a two-run second inning that 
made it 3-0. 

“It broke my bai and pretty much 
shattered my thumb. It was one of those 
lucky breaks," said Kile, a . 1 06 lifetime 
hitter. 

All-Star first baseman Craig Biggio 
was 4-for-4, including doubles in each 
of the first two innings. 

Mats 10, Braves 7 Manny Alexander, 
returning to New York's lineup after 
knee surgery, tripled home the winning 
run in fee ninth innin g and homered and 
singled to lead fee visiting Mets past 
Atlanta. 

Atlanta tied the game in fee eighth on 
Eddie Perez's homer and pinch-hitter 
Keith Lockhart’s run-sconng double 
after 'Todd Hundley hit a three-run 
homer in fee top of the inning to give fee 
Mets a 7-5 lead. 

Chipper Jones gave Atlanta a 5-1 lead 
in the fifth wife hi s third grand slam in 
13 games, and his second in 10 at-bats. 

Padres 11 , Rockies 5 Ken Camimti hit 
a pair of three-run homers, including a 
465-foot blast in the first inning feat 
made fee San Diego star fee firsr player 
to. twice reach Coors Field’s right-field 
third deck. 

Colorado's Larry Walker homered 
and raised his average to .401. Tony 
Gwynfl was 2-for-6 for San Diego , leav- 
ing him at .393. 

Dodgers 11, Giants O Chan Ho Park 
pitched seven innings of three-hit ball 
and Mike Piazza and Tripp Cromer 
homered as Los Angeles routed visiting 
San Francisco. 

Cardinals 3, Cubs z Gary Gaetti led 
off the ninth with his second homer of 
the game as St. Louis won in Chicago to 
end a four-game losing streak. 

Martins 8, Phillies 7 Alex Arias’s 
ninth-inning pinch single gave Florida a 
comeback victory over Philadelphia. It 
was fee visitors' 10th loss in 11 
games. 


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Education 

Appean eveiy Monday 
_ in The Iniermaikd. 

~ To advertise contact 
KimberJv Currrand-Beirancoun 

Tel: + 33 (0) I il 43 94 76 
Fax: + 33 (0) 14143 93 70 
or your nearest IHT office 
' or representative. 





























PACE 22 


INTERNATIONAL HERALD TRIBUNE, SAXURDASf-SUNDAX, JULSf 12-13, 1997 


DAVE BARRY 


Check Your Car for Snakes 


M IAMI — It's summer vacation 
time, and I'm sure you can't wait 
to jump into the family car and drive to 
fun ana exciting new places, preferably 
before the family wakes up and realizes 
you're gone. But before you “hit the 
road.” you should make sure your car is 
in proper mechanical condition. Drive 
to your local gas station, beep your horn, 
and when a friendly, competent mech- 
anic comes out to help you, ask him to 
please call the mental hospital, because 
you are hallucinating. There ARE no 
friendly, competent mechanics at gas 
stations anymore; there are nervous 
cashiers locked inside bulletproof en- 
closures surrounded by 
smokeless-tobacco pro- 
ducts. 

So you'll have to in- 
spect your car yourself. 

According to the Amer- 
ican Automobile Asso- 
ciation, the most impor- 
tant thing to determine 
about a car, before taking a trip, is: Does 
the car contain enough Cheez-lis? Va- 
cationing Americans need to eat while 
they drive; it gives them something to 
do in between Waffle Houses. An av- 
erage family of Four will consume a 
pound of Cheez-Its every 50 highway 
miles (25 city), although your actual 
mileage will vary, depending on wheth- 
er you also have Ding Dongs. 

On the mechanical front, it goes with- 
out saying that you should inspect your 
car thoroughly — including engine, 
transmission, brakes and electrical sys- 
tem — for snakes. I say this in light of 
articles from two British newspapers, 
sent in by alert readers Trudy and Dan 
Simmons, concerning a sales represen- 
tative named Nicholas Miller who was 
driving his car in England when he felt 
something slithering across his ankle. 
He looked down, and there, wrapped 
around his legs, with beach' eyes staring 
from its scaly head and forked tongue 
flicking out, was: F. Lee Bailey. 

□ 

No. seriously, it was a two-foot-long 
snake. According to the articles. Miller 
slammed on his brakes and jumped out 
of the car; the snake was evenmally 
taken into police custody and turned 
over to a veterinarian, who determined 
that it was an American com snake and 
fed ir some dead crickets. The articles do 
not say how an American snake hap- 
pened to be in England. 

But the point is that there could be a 
snake living in your car right now. and it 
could have been there for a while. One 
of die British newspapers made this 
statement, which I am not making up: 
“Mr. Miller is convinced that the 
snake had been in his car for several 
days because of excrement on his 
boxes.” 

So you should go over your car with a 
fine-toothed comb looking for snake 


The most impor- 
tant thing is: Does 
the car contain 
enough Cheez-Its? 


excrement, always bearing in mind that 
“The Fabulous Snake Doors" would be 
an excellent name for a rock band. If 
your car does contain a snake, you can 
rake it (the car) down ro a Sears auto- 
motive center, where, no matter what 
you tell diem, drey will sell you new 
shock absorbers. Or you can remove the 
snake yourself by luring it out with a 
nail of dead crickets, which you can 
purchase in the bait department of your 
local gas station. 

O.K.! Now you’re ready for your 
vacation trip! The question .is: Where 
should you go? The answer is: Not 
outside. I say this in light of another 
alarming article from a 
British newspaper, this 
one sent in by alert 
reader Katy Decker. 
The article states that 
an MIT researcher has 
come up with a plan to 
plant trees by — i 
swear I am not making 
this up — dropping them from air force 
bombers. The article states that die re- 
searcher “has designed a tree-bolding 
canister capable of reaching 200 miles 
per hour before impact, then planting 
itself in the ground L” 

Great! As if we didn’t have enough 
problems with drugs and crime and die 
federal government, now we have to deal 
with high-speed trees dropping out of the 
sky! You will love dus: The researcher 
claims this project would be safe, be- 
cause before an area got tree-bombed, it 
would be checked for human inhabitants 
by — get ready — “Star Wars" tech- 
nology. This does NOT reassure me. 
Over the past 10 years we have spent 
several jiiiion dollars on the “Star 
Wars” system, and according to all re- 
ports. it still does not have a clue how to 
protect us from Russian missiles. Every 
time scientists fire up the main “Star 
Wars” computer.- it goes: “WHICH 
ONE IS RUSSIA AGAIN?” 

So if this tree project is implemented, I 
see danger ahead. Try to imagine what 
would happen if a Cheez-It-mnnching 
vacationing family were driving through 
some supposedly uninhabited wilderness 
area, with Dad at die wheel, pointing out 
various natural wonders (“Look, kids! 
There’s a rock! It’s made from min- 
erals! ’ ') when suddenly a 200 mpb stra- 
tegic elm came hurtling out of the sky. 
piercing the family car like a lawn dart 
going through a Twinkie. What would 
happen is, the kids would think it was the 
coolest vacation ever. They hate it when 
Dad points out natural wonders. 

So maybe the tree-planting project is 
a good idea. But just co be sale, I think 
I'm going to spend my summer vacation 
relaxing in a bond) shelter with a good 
book. I’m not going to read the book, 
you understand; I’m going to use the 
book to kill snakes. 

.©/ 997 The Miami Herald 
Distributed bv Tribune Media Senicei Inc. 


The Curious Case of the Czarist Bonds 


hternanuna/ fferufd Tribune 

P ARIS — When the philosopher Ro- 
land Barthes wrote his famous 
“Mythologies,” including chapters on 
wrestling, margarine, Einstein’s brain and 
Garbo's face, he explained that the link 
between these “myths” was insistence 
and repetition, two words that amply 
describe a subject he did not address: the 
Russian bonds bought by 2 million cred- 
ulous French households through 1917 
and, 80 years later, still not repaid. 

In 1957, when Barthes wrote his book, 
Russian bonds were more a source of 
private anguish than public discourse. But 
two years earlier in the Jura, Marcel 
Grizey, a feisty retired Banque de France 
employee who had dealt with foreign- 


MARYBLUME 


paper at work since 1915 and held some 
Russian bonds of his own, founded an 
association of Russian bondholders, en- 
couraged by his friend, the . perennial 
Fourth Republic cabinet minister Edgar 
Faure. . 

With righteous obsession, Grizey 
nagged politicians, journalists and even a 
nephew of President Charles de Gaulle, a 
Dominican priesr who said Mass at the 
Elysee and who. Grizey thought, could 
introduce the subject of the bonds during 
a Sunday sermon. He didn’t, de Gaulle 
had other problems, and Grizey’s next 
target, Georges Pompidou having ex- 
pressed sympathy but having failed to act, 
was presidential candidate Valery Gis- 
card d’Estaing who, Grizey liked to 
claim, had only been elected thanks to the 
support of bondholders whom he had 
promised to help. When Giscard ran for a 
second term, against Francois Mitterrand, 

Grizey warned that he should heed the cries of 
holders of the defaulted bonds in order to be re* 
elected. He didn’t and he wasn't. 

The Groupement National de Defense des Porteurs 
de Titres Russes, continues, with headquarters in 



KupvVraU* 

Visit of czar in 1896 fanned French enthusiasm for Russian bonds. 

France, weakened by the Franco-Prussian War, 
sought a new ally, Russia needed capital investment. 

The two countries signed a mutual defense pact and 
during the 1890s with sumptuous visits by the czar 
and his family the French public was led by the 


Arthur Raffalovicb. the Russian agent 
charged from the start with paying off the 
French press, continued his payments 
(James’s paper was the only holdout) and 
he acceded pleasantly to the post- 1905 
demand bf Paris brokers to pay a further 
200,000 francs a month to the press » 
ensure favorable coverage' of bond is- 

SU Game the revolution and Lenin refused 
.to recognize debts incurred by the czar. 
All protests were ignored for decades until 
•Maraaret Thatcher, having announced she 
could do business with Mikhail 
Gorbachev, himself eager to gain a toe- 
hold in Europe’s financial center, sigmai 
an agreement by which British bondhold- 
ers far fewer in number than the French 

would be reimbursed from czarisi gold 

held in England. 

■ The French group took hope bur it 
turned out that 10 of the 12-man board of 
Grizey *s organization had died, as bad 900 
out of 1,000 members. The doughty rem- 
nants got world coverage by demonstrat- 
ing at the 1989 G-7 meeting because it was 
held on July 4. a dead news day on Wall 
Street, but they got nothing more while the 
United. States, Switzerland and Canada all 
reached agreements with the Russians. 
“The s ums involved were much less than 
in Franee,.so it was easier,” Bayle said. 

The Rambouillet accord of 1990 be- 
tween Gorbachev and Francois Mitterrand 
in which indemnization was promised was 
followed by the fall of Gorbachev. Boris 
Yeltsin, interested in joining such fancy 
dining clubs as the C- 7 and also in gening 
and floating new loans, indicated a will- 
ingness to settle the old debt and in 1996 
Prime Minister Alain Juppe announced 
that the Russians would allocate $300 
million to $400 million io close the prob- 
lem. The details of the agreement, claims Bayle, have 
never been revealed and the commission named to 
handle the settlement has been hampered by one of its 
members being accused of corruption. 

Bayle 's group is limited to descendants of people 

most of 


Paris, fittingly onRuedeMoscou, and branches in the government and press into mass Russophilia, an. who bought the pre-revolutionary bonds, most of 
provinces. There are probably only 200,000 bond- enthusiasm surpassing even die arrival in Paris of the them holding three or four, the biggest authenticated 


holders left, mortality and the wastebasket having 
taken their toll, of whom 25,000 belonged to the 
group until recent weeks when membership climbed 
to 30,000, thanks to the publication of “Empnint 
Russe: Indemnisation Mode d’Emploi” (A User's 
Guide to Repayment of Russian Bonds), which is in 
its. third printing since Balland published it on July 

Less excitable than Grizey, the group's president 
and the author of the book, Francois Bayle, says 
redemption of the bonds is now inevitable, probably 
at 25 ro 30 percent of face value (or about 2,500 francs 
per bond) with, of course, no interest. “We aren't a 
bunch of nuts, we are very reasonable and realistic. 
All our members want is an honorable settlement 
which would show that there is some decency and 
morality in public life,” 

The sorry Russian bond story has always been 
political, Bayle says, and its victims were small 
investors eager to participate in the new capitalist 
dream. “It’s a story familiar to all the French, they all 
lived through it even if 90 percent of them threw away 
or lost their bonds over the years. ” 


first giraffe in 1827 which led women to wear hair 
styled a la girafe. 

Not only were the Russians powerful and glam- 
orous but their bonds, with a coupon at least 1 percent 
higher than French .paper, were immensely attractive 
to small investors in a country where, rnilflra England, 
industry was not sufficiently developed to require 
much capital investment Some 3,000 types of Rus- 
sian paper were issued by 1917 in France, by far the 
biggest investor. 

Roust’s Monsieur de Norpois advises the narrator 
to buy Russian bonds in “A F Ombre des Jeune Filles 
en Fleur” (1919) and Proust himself held North 
Caucasian Oil Field and Ural Kaspians though, per- 
haps suprisingly, none of the bonds issued by the 
Imperial Bank of the -Nobility. 

Russian bonds, says Bayle, an economic historian, 
were a good investment for those who cashed in 
before 1905. With the 1905 revolution, tire Socialist 
Jean Jaures and Anatole France were among those 
who warned the public of the immorality and risk of 
investing in the repressive czarist regime! A rally 
explaining the dangers was broken up by the police; 


holder has 1,400. But, he says, since news of the 
settlement has been in the air many new claimants 
have bought packets of bonds at flea markets and also 
there are several mysterious new owners of as many 
as 500,000 bonds, some of them Russian mobsters, 
others people who have obtained them by dishonest 
means from French banks or government sources. 

* 'Why should our s mall holders who have held the 
bonds' for 80 years have ro share with dishonest - 
speculators?” he asked. The dossier is in the hands of 
me new prime minister, Lionel Jospin. * “ Ar this point 
it’s not a Franco-Russian problem but a Franco- 
French one.” Bayle said. The $400 million repay- 
ment. he claims, will easily be made by subtracting it 
from the 1 billion francs France lends Russia each 
year; making sure it falls into the right hands is 
another thing. 

In the meantime, this newspaper's list of the 250 
most active current international bonds for the week 
ending July 4 included two Russian bonds in 14th and 
162d place. They are rated low investment grade but 
they carry very tempting coupons, of 10 and 9 V* 
percent 


**&; 

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PEOPLE 


A COPY of a contract published in 
Paris Match reveals that Claudia 
SchifTer was paid to show up at David 
Copperfield’s Berlin magic show in 
1993. The couple’s story always has 
been that their romance ignited when the 
magician spotted the model seated with 
hex parents in the audience and invited 
heron stage. The contract provided fora 
first -cl ass round-trip ticket from Paris to 
Berlin, a Mercedes lima, & bodyguard 
and about $20,000 plus a 20 percent 
agency commission. “She will remain 
in Berlin for 24 hours, during which time 
she shall attend the entire 9 PM. show 
and participate in the reception follow- 
ing the show," wrote Brigitte Eck- 
raann of Wolfgang Bocksch Concerts, 
Copperfield’s European promoter. “We 
kindly ask you not to disclose die terms 
of this agreement to anybody, to any 
party other than the principals in- 
volved.” Scbiffer ana Copperfield 
denied; through a spokesman, that they 
had any financial arrangement to pre- 
tend to be a conple. Their engagement is 
apparently open-ended; they have not 
set a wedding dare. 



READERS IN OTHER COUNTRIES CAN SUBSCRIBE BY CALLING: 

EUROPE, MIDDLE EAST & AFRICA THE AMERICAS ASIA 

Tel: +33 M M3 93 6 I Tel: (USA toll free) I -300-882-288-4 Tel: +852 29 22 II 71 

Fax: +33 I 4 M3 92 10 Fax: + 1 2 1 2 755 8785 Fax: +3S2 29 22 I I 99 


Camilla Parker Bowies will not face 
charges in connection with an auto ac- 
cident last month, in which Parker 
Bowles, Prince Charles’s longtime com- 
panion, had a collision with a car driven 
by Carolyn MelviUe-Smith. Neither 
woman was seriously injured, and die 
Wiltshire police said there was not 
enough evidence to support any charges. 

□ 

U2’s “PopMart" tour of the United 
States has grossed $49 million in four 
months for the Irish supergroup, or an 
average $2.4 million per stow. Variety 
magazine said. Earlier reports predicted 
financial problems for the stadium tour 
in America after the cancellation of 
shows because of poor ticket sales. But 
Pollster, another specialist publication, 
said the group recorded a 
higher turnover in ticket sales 
in North America than any 
other group or performer in 
die first half of die year. U2 
played its last concert in Bos- 
ton on July 2 and is to kick off 
a European tour with a con- 
cert next Friday in Rotter- 
dam. 


WmMal R»*nrrmc!/TV Pi*,. 

CURTAIN UP — A worker in Volgelsheim, France, putting the fin- 
ishing touches on a new curtain for the opera house in Madrid. Meters 
and meters of gold leaf and several kilograms of glass beads were used. 


serenades our hero with a rendition of 
"Slimey to the Moon.” 


A i 0-year-old British boy barely able 
to read and write has had a book pub- 
lished. Jacob Connors, who has a read- 
ing age of 5, dictated his fantasy story 
“The Quebeny” into a tape recorder. It 
was then transcribed by his teacher. The 
book tells the story of creatures called the 
queberries, who are fat, with long pointed 
chins and banana-shaped arms. Jacob's 
teacher was so impressed with the tale she 
persuaded her bosses at Bradford City 
Council to publish it for distribution to 
other schools. “I’m getting much better at 


reading and writing now,” Jacob said. “I 
can’t wait to see it on sale in the shops.” 

□ 

Andrew Wyeth, who turns SO on 
Saturday, is discovering that less is more. 
The artist critiqued his best-known work, 
a 1948 painting of a woman lying in a 
field looking across her land and home. 

‘ ‘If I was really good. I could have done 
the field in ‘Christina’s World' without 
her in there," Wyeth says in a TV in- 
terview. “The less you have in a picture, 
the better the picture is. really.” 

□ 


td 

•Sr 

•f 


te 

ii 

Hat 

n 


. ;CJ .. ■ 

Viewers" of "Sesame 

Street” will now. have their 
own space, mission to follow: 
Oscar the Grouch's pet 
worm, Slimey, is headed to 
the moon. “We know that 
children are fascinated and 
they're eager to Learn more 
about space travel,” said 
Rosemarie Tniglio, “Ses- 
ame Street” research direc- 
tor. It will be-the show's first 
concentrated exploration of 
science issues in its 29-year 
history. Along the way, 
Oscar deals with separation 
anxiety and Tony Bennett 


American Poet Rejects Award 


New York Times Sen-ice 

N EW YORK — Angry that "democracy in this coun- 
try has been in decline," Adrienne Rich, the award- 
winning pOet, has decided to turn down the 1997 National 
Medal for die Arts. Rich informed die Clinton admin- 
istration of her decision in a letter to Jane Alexander, 
chairwoman of the National Endowment for the Arts, 
which administers the awards. “I am not against gov- 
ernment in general, butl am against a government where 
so much power is concentrated in so few hands,” Rich 
said in a telephone interview from her home in Santa 
Cruz, California. 

Past winners include die writer Eudora Welty, the artist 
Roy Lichtenstein, the dancer and choreographer Merce 
C unningham, and the opera diva Leontyne Price. 

Rich. 68, has published more than 1 5 volumes of poetry 
since 1951, including her mostrecent,“Daxk Fields of the 
Republic: Poems 1991-1995.” Rich views poetry as an 
instrument of change, and her work has sometimes been 
dismissed by critics for being political. In her letter to 
Alexander, Rich wrote that “the very meaning of art, as I 
understand it, is incompatible with the cynical politics of 
this administration.” 


0 

a! 

e 


Ordinarily, even one of the bedroom 
scenes recounted in a former 
Iranian movie star’s memoirs * - i 
would have been enough for to y 
Iran’s censors to ban her best- 
seller. But ’ 'Till Darkness” is 
no ordinary memoir. It is a 
kiss-and-tell account of Par- 
vin Ghaffari's three-year af- 
fair witii the late shah, who 
was overthrown in the 1979 
Islamic revolution. Ghaffari 
has become the talk of the 
town in Tehran, and some 
newspapers criticized the 
Ministry of Culture and Is- 
lamic Guidance for allowing 
its publication and printed 
some of the objectionable 
passages to illustrate their 
point. But that only served to 
whet the appetite of readers. 


who snapped up all 10,000 
copies of the book soon alter 
it appeared this summer, the 
memoir portrays the shah as 
stingy .possessive and lust- 
ful,” ana her descriptions of 
the rest of the royal family are 
just as unflattering. 


f