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The World's Daily Newspaper 

Paris, Monday, July 14, 1997 

No. 35.572 

Soros Gets 
No Thanks 
For Gifts 

Wary of Reforms, 
Belarus Bristles 

By Judith Miller 

Ntw livt Timex Si-n'in 1 

MINSK. Belarus — For the past 
decade, George Soros, (he Hun- 
garian-bom financier and philan- 
thropist. has spent more than a bil- 

lion dollars promoting a free press 
ii pluralism abroad — 

and political 
everything the" world's authoritari- 
an rulers despise. 

Now some of those political 
leaders are fighting back. 

In Albania, Kyrgyzslan, Serbia 
and Croatia, Mr. Soros's founda- 
tions have been accused of shield- 
ing spies and breaking currency 
laws. His employees have been as- 
saulted and threatened with impris- 
onment or financial sanction for 
alleged crimes. 

Here in Belarus, Mr. Soros re- 
cently suspended operations after 
the government, headed by Alex- 
ander Lukashenko, the popular but 
autocratic 42-year-old president, 
fined a Soros foundation S3 million 
dollars for alleged tax violations 
and seized its bulk account. 

While expressing a desire to re- 
solve the crisis here and lessen ten- 
sions with other authoritarian gov- 
ernments. the man whose own 
fortune was made in high-stakes 
business gambles is vowing not to 
back down. 

“We would like to continue 
working in Belarus, to do what we 
can wherever we can.'' Mr. Soros 
said in a recent interview in New 
York. “But we insist that all our 
foundations remain independent. 
We will not play by Mr. Lukashen- 
ko's rules." 

The growing pressure on Mr. 
Soros’s philanthropic empire, 
which stretches from South Africa 
to Haiti and employs 1 J00 people 
in 24 countries, with two regional 
offices in New York and Budapest, 
appears to have only stiffened his 

This year he opened five new 
offices in Central Asia — Mon- 
golia, Tajikistan, Uzbekistan, 
Azerbaijan and Armenia — and 
one in Guatemala, his first in 1 
America. Soon he is to open nine 
new foundations in southern 
Africa, he said, expanding the num- 
ber of countries in which his foun- 
dations are active to 40. 

Moreover, given his growing 
personal fortune, which friends es- 
timate at $5 billion, his efforts are 
likely to continue at current levels 
-for at least a decade, and perhaps 
for two. 

While American foreign aid in 
the last decade has been cut in half 
Jn real terms, Mr. Soros, 66, re- 
. cently signed a 20-year lease on his 
new headquarters in New York. 

In Central Europe alone, be spent 
more than $123 million between 
1989 and 1994 trying to help de- 
mocracy take root — roughly five 

Jim tWLiiHLr'Hi-uj'-T- 

Basques protesting ETA tactics of violence in the long struggle for independence demonstrating in Pamplona on Sunday against death of a hostage. 

China Pegs 
For Top Post 

By Patrick E. Tyler 

Nov M Times Sen ■/«■»• 

See SOROS, Page 10 

BEU1NG — For nearly a decade, and 
certainly since the Tiananmen Square 
massacres of student demonstrators 
eight years ago, millions of Chinese 
have awaited the day when the coun- 
try's hard-line and unpopular prime 
minister, Li Peng, would be forced to 
step down by a constitutional limit on 
his term. 

Now, as the end of Mr. Li’s 10 years 
in office approaches, it appears that the 
leading economic reformer in China. 
Zhu Rongji, has pulled ahead of the 
pack of contenders seeking to replace 
Mr. Li. 

A Chinese official who has been pro- 
moting one of Mr. Zhu's rivals for the 
job said, "It seems that all the other 
candidates have faded into the back- 

"The people I talk to who are very 
well informed say that the decision has 
essentially been made," said a Western 
banker with high-level contacts in the 
Communist Party who has worked 
closely with Mr. Zhu over the years. 

And a senior Western diplomat said, 
"I now don't hear any other name but 
Mr. Zhu.” 

Of course, in the secret councils of the 
Communist Party anything could still 
happen. But whereas a year ago the 
Chinese capital was full of stories that 
Mr. Zhu did not want the job and that 
other powerful figures were promoting 
themselves for it, a consensus has 
emerged around Mr. Zhu in recent 
months. And Mr. Zhu now tells con- 

fidants that he wants the job. 

The ascension of Mr. Zhu, a 69-year- 

See CHINA, Page 10 

Yeltsin’s Political Gamble: 
Ending Housing Subsidies 

By Michael R. Gordon 

New York Times Service 

MOSCOW — The burning issue for 
Russians these days is not NATO ex- 
pansion pr Pfosident Boris Yeltsin’s 
health. It is Mr.. Yeltsin's plan to end 
housing and utility subsidies. 

In a politically risky move that has 
galvanized nmch of Russia, Mr. Yeltsin . tenants compensate for overheated ra- 
is pressing to phase out the enormous diaiors by throwing open the windows, 

ment size, benefit die emerging middle 
class more than the poor. At the same 
time, they eat up scarce funds that could 
be used to pay back wages, retrain dis- 
placed workers or improve the nation’s 
dismal health care. 

Utility subsidies have spawned an 
almost palpable disdain for energy con- 
servation. Russia is still a land where 

subsidies by 20031 Hie logic is clear: 
Six years after die .Soviet Union col- 
lapsed, Russia has emerged with an 
economy that is part free- market and 
part soitialisL ' 

Prices for food 'and clothing have 
soared, often exceeding those in the 
West. But mbst Russians still pay a 
pittance for shelter, leaving cash- 
strapped local governments to pick up 
most of the teb. ^ 

. Housing subsidies, geared to ap art- 

leave water taps running and think noth- 
ing of leaving on the lights when they 
leave the room. Water and gas meters 
for apartments are rare, though elec- 
tricity meters are common. 

“In Russia we consume five times 
more beating oil or natural gas to beat a 
square meter of bousing than they do in 
northern Europe," said Boris Nemtsov, 

the first deputy prime minister, who has 
played a lead role in promo 

promoting the 


Newsstand Prices 

Andorra «_.-.1O00 FF 
ArtS8S..--._1250 FF 
Cameroon- 1.600 CFA 
Egypt — :..„_£E 5£0 



_LL 3,000 

France ..10.00 FF 

Gabon -1 100 .CFA 

Italy 2^00 Lire 


10.00 Rials 

R&jnton 12.50 FF 

Saudi Arabia. .. 10.00 R 
Senegal — 1.100 CFA 
Spain _—_-.J225 PTAS 

hray Coast. 1250 CFA 
Jordan.-.. 1250 JD 

Kuwafl 700 Ffls 

Tunisia^ 1250 Din 

UAE 10.00 Dim 

US. MU. {Eik} —.31 20 

The plan would phaseout the subsidies 
by 2003, " * ' 

except for those going to poor 
and 1 o wer-middle- income tenants. It also 

calls for tairfng maintenance services 
away from the government and allowing 
private companies to bid for diem. 

But this is an issue that turns as much 
on politics and psychology as on eco- 
nomics. Populist politicians have already 
had a field day attacking the plan. Re- 
gional leaders who back it privately have 
often been loath to endorse it publicly. 

Accustomed to cheap rents and 
battered by high prices in other sectors 
of foe economy, many Russians view 
foe projected fourfold increase in hous- 

See RUSSIA, Page 7 

Soil vs. Business at Famed Chateau 

Family Feud and Corporate Raid Mix With Wine at France’s d’Yquem 

By Roger Cohen 

New York Timi Srn ii e 

SAUTERNES. France — The clock 
on a 16th-century tower at Chateau 
d’Yquem has sropped. and the view 
over foe vineyards descending to the 
Garonne River is of a tranquillity that 
suggests time may indeed stand still 
here where wine and myth overlap. 

Tranquillity, however, is precisely 
what is lacking at Yquem. The chateau 
that makes one of the greatest French 
wines is embroiled in an acrimonious 
battle for control involving family 
rifts, corporate raiders, allegations of 
embezzlement, charges of mental in- 
firmity and even physical violence. 

Yquem is exceptional enough to 
warrant a caregory of its own — 
premier grand cru, or first great 
growth — that was created for it in the 
1855 classification of foe best white 
wines of Bordeaux. Its unctuous, nec- 
tarlike perfection — drawn from 
grapes afflicted with the botiytis 
cinerea, or noble rot — has long made 

it the greatest of Sauternes. Its sober 
label — “Chateau d'Yquem. Lur Sa- 
luces" — sums up foe complete iden- 
tification, over centuries, of a dynasty 
and a wine. 

Its fate is therefore being watched as 
a barometer of the battle raging in this 
country’s soul between a national 
identity rooted in the rich soil of 
France and the impersonal forces of 
global capitalism: Two people now 
claim to be foe owner of Chateau 
d’Yquem. One represents the soil; foe 
other, foe market 

The first is Count Alexandre de Lur. 
Saluces. The count. 63. is the sixth Lur 
Saluces to preside at Yquem since 
1 785, and he has controlled production 
of foe wine since his uncle. Marquis 
Bertrand de Lur Saluces, died on Dec. 
19. 1968. 

The secoud is Bernard Arnault, foe 
most aggressive figure in the rather 
staid French corporate world and foe 
nearest equivalent that France offers to 
a Wall Street corporate raider. 

The increasingly vicious battle be- 

tween these two has become the talk of 
Bordeaux and has illustrated, as the 
restaurateur Jean-Marie Amat ob- 
served, that “rot, unfortunately, is by 
no means always noble." 

Gazing over his vines recently at a 
storm approaching from foe west, Al- 
exandre de Lur Saluces said: 

* ‘Everything you see here is foe fruit of 
an obstinate pursuit of perfection by 
my family. I feel deeply worried, agit- 
ated and disappointed when I think 
that the continuity that has created this 
very fragile environment is now 
threatened by a corporate shark." 

It is in such brisk terms that the 
count habitually refers to Mr. Arnault, 
48. a restless entrepreneur who over 
foe past decade has assembled a lux- 
ury-goods empire that includes Moet 
& Chan don Champagne, Louis Vuit- 
ton luggage, Hennessy cognac, and the 
Givenchy and Dior fashion houses. 

Seven months ago Mr. Arnault an- 
nounced that his company, LVMH, 

See WINE, Page 7 

Markets See a Euro on Time but Weak 

By Carl Gewirtz 

International Herald Tribune 

PARIS — For financial markets, foe 
poker game between France and Ger- 
many over the fiscal criteria for formin' 

all the paper will have been transformed 
into euros. 

The same story is being played out in 
foe foreign-exchange market, where the 
dollar has risen to a six-year high 

a European monetary union has a fore- 
gone conclusion: Monetary union will 

take place, as planned, at the start of 

East Europeans ho] 
euro will emerge. 

that a strong 

This conviction is being played out in 
irkets, where the cur- 

old economic planner, to the post of 
prime minister would certainly be ac- 
claimed as a critical indicator foal 
China’s leaders, after foe death of Deng 
Xiaoping this year, intend to ensure that 
economic reform stays on track by put- 
ting its management in foe hands of a 
pragmatic and progressive senior leader. 

European bond markets 
rency risk is evaporating on 10-year 
Italian and Spanish government debt on 
the assumption that by redemption time 

against foe Deutsche mark while vir- 
tually standing still against the yen — 
highlighting foe fact that it is not foe 
dollar that is getting stronger but rather 
the mark that is getting weaker. 

The yen is also currently at a six-year 
high against foe marie. 

The pound has risen to a seven-year 
high, but that is due as much to foe 
strength of the pound in a time of rising 
British interest rates as to the weakness 
of the mark. 

In spile of foe formidable obstacles 
both France and Germany face in 
strictly fulfilling foe debt and deficit 
criteria for membership in monetary un- 
ion, investors are convinced foot foe 
common currency will be created and 

See EMU, Page 10 


Leader of Coup in Cambodia 
Calls for ‘Free and Fair’ Vote 

Amid signs of emerging international acceptance for his 
week-old coup in Cambodia, Second Prime Minister Hun Sen 
called Sunday for “free and fair" elections. He urged Par- 
liament to convene and said he supported the protection of 
human rights and a free press. 

King Norodom Sihanouk, foe titular leader of Cambodia, 
sent a message from China calling Mr. Hun Sen “victorious" 
and declining to condemn the armed action. Western diplomats, 
meanwhile, reported continued violence and some arrests by 
Mr. Hun Sen’s Cambodian People’s Party. Page 4. 

Diplomats and analysts said foe root of foe problems leading 
to the coup was Mr. Hun Sen’s unwillingness to share power 
with Prince Norodom Ranariddh, his co-prime minister. But 
they also blamed foe international community for overlooking 
warning signs that Cambodia’s peace was unstable. Page 4. 

Srijaa fflc/Thc A iiciwnj Pm» 

SERBIAN FUNERAL — Momcilo Krajisnik, a 
Bosnian Serb leader, at the rites of Simo Drljaca, 
the former police chief who died in a gun battle. 
NATO’s image in the region is at stake. Page 10. 





Page 9. 

Page 9. 

Page 8. 

.... Pages 18-20. 

The Intermarket 


ThelHT on-line httpr/Avvvvv. 

ETA Killing 
Of Hostage 
Stirs a Fury 
In Spain 

Clashes Break Out, 

And Some Basques 
See Harm to Cause 

(imi/ttlnl In tJur Slid tneu Itii/uii bn 

PAMPLONA, Spain — The Basque 
separatist movement ETA became the 
target of nationwide fury Sunday over 
the murder of a hostage. Miguel Angel 
Blanco Garrido. 

Gunmen abducted Mr. Blanco on 
Thursday and killed him two days later 
after foe government in Madrid refused 
a demand to transfer about 500 Basque 
inmates scattered throughout foe coun- 
try to prisons in the autonomous Basque 

He was a town councilman in Ermua 
in the northern Basque region and a 
member of foe prime minister's con- 
servative Popular Party. 

Clashes erupted when ETA support- 
ers interrupted mourning for the 
murdered hostage, burning red scarves 
left at Pamplona town hall as a sign of 
public grief for Mr. Blanco, 29, who 
died Sunday after being shot twice in the 

Police officers used tear gas and fired 
rubber bullets to end clashes outside the 
offices of Hern Batasuna, foe ETA 
political wing. 

Eighteen people were treated for in- 
juries in hospitals in foe city, said Jose 
Miguel Olaiz, of the SOS-Navarra med- 
ical assistance organization. 

The Hern Batasuna’s offices in Mr. 
Blanco’s hometown of Ermau were at- 
tacked with gasoline bombs late Sat- 
urday, causing damage but no injuries. 

Pope John Paul n denounced the 
killing of the Basque town council 
member as an * ‘act of blood.” 

France called it “cowardly.” 

“After this murder, ETA is more 
isolated than ever," Basque political 
leaders said in a statement after an ur- 
gent meeting. 

“If they were not loved yesterday, 
they are despised today.” 

More than a million Spaniards vented 
their fury at foe kidnapping in unprece- 
dented weekend demonstrations across 
the country. 

When foe clashes erupted in 
Pamplona, the city was packed with tens 
of thousands of visitors celebrating the 
bull-running festival that began a week 

The festival was suspended for a day 
to show “sadness and indignation” 
over Mr. Blanco's abduction and shoot- 
ing. It resumed Sunday night. 

In Mr. Blanco’s hometown of Ermua, 
thousands gathered in solidarity with his 
family on Sunday afternoon chanting 
“ETA, enough! We want peace!" 

Spain’s two leading trade unions 
called on workers across the country to 
stop at noon and observe 10 minutes of 

Mr. Blanco was found bound and 
bleeding on a roadside shortly after the 

He was taken to hospital in the 
Basque city San Sebastian, where he 

His ordeal touched a raw nerve 
among Spaniards, who in recent months 
have raced growing ETA violence. 

The group has killed nearly 800 
people in a 29-year fight for indepen- 

Basque leaders and a government of- 
ficial in Madrid called for the isolation 
of ETA’s political arm, Herri Batasuna, 
a party that holds seats in foe Basque and 
Navarre regional parliaments and the 
national congress. 

The Basque government head, Jose 
Antonio Aidanza, said that the Herri 
Batasuna members were “silent" ac- 
complices to ETA and he vowed to stop 
cooperating with them in efforts to pa- 
cify the troubled region. 

The political party linked to ETA has 
generally seen its support decline to 
about 10 percent at foe polls when it 
fields candidates for national, regional 
and local offices, although it maintains 
more support in towns of the Basque 
region. (AFP. Reuters. AP. NYT) 

In Alaska , a Grim Battle for Oil vs. a Way of Life 

By Carey Goldberg 

New York Times Service 

Beneath some of these places, geo- 

is enough ou to justify 

SERVED Alaska — Here at the treeless 
top of the world, foe tundra stretches so 
empty and far that one can fly for hun- 
dreds and hundreds of miles through the 
nightless summer and see nothing but 
shades of green. 

In places, foe earth seems to be made 
of crocodile skin, foe grassland cracked 
into great pentagons by the shifting of 
permafrost In others, algae-filled lues 
bejewel the land with ochre, chartreuse 
and amber tiger eyes. 

In a few spots, caribou trample tbeir 
way to the Arctic Ocean to get away 
from black blizzards of mosquitoes, and 
Inupiat Eskimos hunt them as they have 
for thousands of years. 

loguts say, 

This complex combination of Arctic 
wonderland and potential profit is a 23- 
million-acre (5 .68- million-hectare) 

swath of federal land called foe National 
Petroleum Reserve-Alas ka. 

It is an obscure comer of American 

geography, designated a petroleum re- 

serve for foe U.S. Navy in 1923 and, 
aside from some disappointing explor- 
ation drilling for oil and gas, largely 
ignored since then. 

But with foe fight over drilling in its 
North Slope neighbor, the Arctic Na- 
tional Wildlife Refuge, at something of 
a stalemate, and with new oil strikes and 
techniques making development here 
more enticing, the reserve is fast be- 
coming the focus of a debate over an- 

other of the last wildernesses. 

On an extensive inspection tour here 
last week to help him decide about 
opening the reserve to commercial oil 
leasing. Interior Secretary Bruce Bab- 
bitt pronounced the area ‘ ‘a very fragile 
and important ecological resource.” 
one he saw firsthand by rafting, hiking 
and Hying. 

Obviously moved by meetings with 
scores of the Inupiat Eskimos, including 
a visit to a family fishing camp where 
caribou carcasses dangled outside tike 
shirts on a clothesline, he called the 
reserve "foe last frontier where we see a 
genuine subsistence form of life.” 

But he also listened attentively as oil 
company executives and scientists as- 
sured him that new technology — and 

See ALASKA, Page 7 




National Split Personality / Democracy and Torture 

Turkey’s Troubled Human Rights Record 

Three Hurt in Explosions 

By Stephen Kinzer 

New York Times Service 

I STANBUL — Every Saturday at noon, as they 
have done for more than two years, about 100 
Turks converge on a bustling plaza in central 
Istanbul and quietly sit on the pavement. 
There are usually no speeches and no placards. 
The protesters, mostly women, mak e their point by 
silently displaying photographs of their missing 
loved ones, although their emotion sometimes boils 
over into a chant, like “Mothers' anger will strangle 
the murderers." After half an hour they rise and go 
their separate ways. 

‘ '711166 men in civilian clothes grabbed my hus- 
band as be left the bouse one night in 1995," one of 
the protesters, Hanim Tosun, 32, said on a recent 
Saturday. "They were carrying pistols and walkie- 
talkies. We checked the license number of their car 
and found it was registered to die police. That was 
almost two years ago. We have tried everything to 
find him, but the police tell us nothing. " 

Mis. Tos un's husband was a street vendor who 
had served three years in prison on charges of 
collaborating with Kurdish guerrillas in southeast- 
ern Turkey and had come to Istanbul to start a new 
life. He is now a statistic, one of an unknown 
number of Turks believed to have disappeared 
while in police custody. 

As Mrs. Tosun and the other "Saturday moth- 
ers" carried out their weekly protest, people around 
them went about their business. At nearby kiosks, 
newspapers carried bold headlines accusing politi- 
cians oi various abuses. Organizers of rightist and 
leftist parties huddled in offices, making plans for 
the coming election campaign. 

"This is in many ways a very free country, so free 
that people can go to the polls and change their 
government whenever they want," Orhan Pamuk, a 
prominent young novelist, said in an interview. ‘ ‘But 
it is also a country with a horrible h uman rights 
record. Probably there is no country in the world 
where this contradiction is so sharp and clear." 

Turkey’s human rights record is the subject of 
endless debate, not only here but also in the Western 
world. Turkish officials say die problem is ex- 
aggerated, but it is one of the main reasons why the 
European Union insists on holding Turkey ax arm’s 
length and why some Westerners consider Turkey 
to be a difficult partner. 

Many strategists in Washington and in European 
capitals agree that because of Turkey ’s membership 
in NATO, its geographical position, its history ana 
its role as a defender of secular democracy in the 
Muslim world, Turkey could become even more 

important than it has been. 
But they also say that bet 

But they also say that before Turkey can become 
a full partner of the West or a desirable model for the 
new nations of the Caucasus and Central Asia, it 
must resolve nagging questions about the way it 
treats prisoners and dissenters. 

“Human rights and freedom of expression are 
very important issues for the image of Turkey, and 
they condition many people's reflex reaction to 
questions about Turkey's role in Europe," said Mi- 
chael Lake, the European Union envoy in Ankara. 

“This reflex is so strong that it outweighs im- 
portant perceptions of Turkey, such as its strategic 
importance, its place in the foreign and security 
architecture of Europe, and even its growing im- 
portance as an economic partner." 

Hanging over the human rights debate is the war 
being waged by Kurdish nationalists in southeastern 
Turkey. Most charges of human rights abuses in 
Turkey stem from incidents in that region. As many 
as 80 percent of the charges arising in other parts of 
the country, according to several human rights 
advocates, are somehow related to that conflict. 

“Tens of thousands of people have been killed 
out there,' ' said Sabri Ergul, a member of the human 
rights committee in Parliament. The remains of 
Turkish soldiers and civilians slain in the fighting 
"have come back to nearly every town and village 
in Turkey," he added. "Naturally people are veiy 
angry about this. They develop the feeling that 
whatever has to be done to stop terrorism is jus- 

“Terrorism is the problem of our age, but our age 
is also the age of human rights," Mr. Ergul said. 

The weekly gathering of Saturday mothers' in central Istanbul is a sign of how 
Turkey's human rights abuses contrast with the nation's democratic traditions. 
Every Saturday tvomen and some men assemble with photos of missing loved ones. 

usuiiuk TURKEY J 

“The great mistake that is g \ H ukraini 

made here is tbe belief that ? 

when you combat terrorism, § 

you don’t have to respect de- 

mocracy and law." g 

Mr. Eigul is involved in one 
of Turkey's most important 
torture-related cases. He is a Ank ^ rB 

lawyer for the families of 16 .''susurluk "R 
teenagers who were arrested ;*>Mnnisa 
last year for scrawling leftist 
graffiti on walls and who are 
accused of belonging to sub- Mira 
versive organizations m the 
western town of Manisa- 

Although the police have 
admitted that the teenagers 

confessed to their crimes under * 

torture, they were found guilty 

and sentenced to terms of up to 

12 years in prison. A public prosecutor in Manisa 

has filed suit against 10 police officers accused of 

having carried out the torture, but the government is 

drawing out the case and seems to hope that it will 

somehow fade away. 

It is doing the same in another important case, the 
investigation of officers charged in die 1996 beating 
death of a journalist. Menu Goktepe. 

“Tbe government, especially the Interior Min- 
istry, protects the police who torture," Mr. Ergul 
said. “They encourage it. They are the ones telling 
die police forces to behave this way. So naturally 
they are not in a position to prosecute officers who 
follow their instructions. ’’ 

EGYPT \ j 

H UMAN RIGHTS advocates say that be- 
sides torture in detention centers and the 
“mystery killings” of perceived Kurdish 
nationalists, the other principal human- 
rights problem in Turkey is the ban on statements 
deemed to threaten national unity. Laws that forbid 
these statements are applied most often against 
those who question government policy in the Kurd- 
ish region. 

It is generally considered criminal to suggest that 
the army shares responsibility for the carnage there, 
to advocate peace talks or to assert that tbe gov- 
ernment should treat tbe Kurds as a distinct ethnic 
group that deserves autonomy. 

These laws are often used in cases that devastate 
Turkey’s image. Last year, for example, one of the 
country ’s most beloved cultural figures, the novelist 
Yasar Kenoal, was sentenced to a 20-month prison 

sir Mam, J term for making pro-Kurdish 

pP o 200 / statements that were inter- 
5? RusaiA ' preted as separatist propa- 

ganda. . 

Mr. Kemal's sentence was- 
suspended, as often happens in 
Armenia^ such cases. Nonetheless, hu- 
man-rights advocates say that 
key more than 70 journalists and 

writers are in jail for statements 
* e y ^ ave roade. 

r ) VS Turkish officials concede 

Syria i IRAQ that torture is sometimes used 
/ / Baghdad in detention centers, but they 

insist that it is not systematic 
and not approved by the au- 
\ thorities. They also assert that 

— laws against separatist propa- 
ganda must be judged in the 
context of a civil conflict in 
which terrorism has been a principal weapon. 

At a news conference in London last year. For- 
eign Minis ter Tansu Ciller said that Turkey “has 
decided to take a series of measures in order to 
totally eliminate in practice the crime of torture, 
which as a matter of fact is forbidden by our laws." 
After she spoke. Parliament passed a law cutting the 
maximum time defendants may be held incom- 
municado to 10 days from 30. 

Perhaps the most illuminating human rights case 
in Turkey is the complex scandal that emerged after 
a spectacular car crash near the western town of 
Susurluk in November that killed a top police 
official and an escaped heroin smuggler. A pro- 
government Kurdish clan leader, who is also a 
member of Parliament, survived. 

Questions about what the three men were doing 
in a car together led to accusations of government 
involvement in smuggling, death squads, illegal 
repression in the southeast and other crimes. 

But a parliamentary investigation of the scandal 
fizzled out after senior military and civilian leaders 
signaled that they would not cooperate. Many Turks 
believe responsibility for the crimes reaches so high 
that a full investigation is impossible. 

"I’m glad we had Susurluk," said Taciser Beige, 
coordinator of die Istanbul-based human rights 
group Helsinki Citizens Assembly. 

“Now when we speak about these things, people 
realize that we’re not making up stories. Since 
Susurluk, people understand that when things like 
mystery killings happen, the army and the state are 
involved. This is very new in Turkey." 

Strike Over, BA Phases In 

LONDON (Reuters) — British Airways will be 
unable to resume normal flights until well into this 
week as a result of a three-day strike by cabin staff. 

The 72-hour strike ended early Saturday, but the 
airline was able to operate only three-quarters of its 
intercontinental flights from London’s Heathrow air- 
port, its main hub, and about 45 percent of European 
services and 40 percent of domestic flights. 

British Airways said it expected to operate 85 
percent of its long-distance flights from Garwick air- 
port, south of London. 

By Monday, 85 percent of scheduled long-distance 


flights from Heathrow should take off, rising to 90 
percent Tuesday, the airline said. 

But only 60 percent of European services will 
operate on those two days from Heathrow, and just 
over half of domestic British flights. 

Garwick should return to normal by Tuesday, ac- 
cording to the airline. 

“We are working hard to get our operations back to 
normal as fast as we can. In the meantime, we are doing 
our utmost to provide alternative travel arrangements 
for customers booked on any flights which we cannot 
operate," the airline said.. 

Cabin crew staff members bad gone on strike over a 
plan by the airline to restructure pay and conditions as 

part of a campaign to sharpen its competitiveness. 

Manila Monitors Prime Beach 

Officials began monitoring water pollution Sunday 
at the Philippines’ most famous beach, on Bora cay 
Island, to help settle a dispute between government 

Two weeks ago. die Environment Department said 
swimming at the beach was unsafe because of coliform 
bacteria, a sign of fecal contamination. Tourism Sec- 
retary Mina Gabor condemned the move and jumped 
into the water at Boracay in an effort to show that the 
beach was safe for swimming. (AP) 

Cuba Blames Americans in Attack on Touristy 

The Associated Press 

MEXICO .CITY — Explosions 
shattered windows at two luxury hotels 
in Havana, officials said, hurting three 
people and prompting tourists to ran for 

Ambulances arrived at the Capri and 
Nacional hotels in central Havana. 
Cuba’s Interior Ministry said three 
people were slightly hurt in the blasts 
Saturday and blamed unnamed attack- 
ers from the United States. 

luc uucaui ivmuiauj 

that those responsible for these actions, 
as well as the materials utilized, came 
from the United States." said a state- 
ment carried by the official Cuban press 
agency, Prensa Latina. 

The Mexican news agency Notimex 
quoted Tourism Minister Osmany Cien- 
ruegos of Cuba as saying the blasts were 
“evidently an action by our enemies.” 

No cause was given for the explo- 
sions. If deliberate, they would amount 
to rare acts of politically oriented .vi- 
olence in the tightly controlled Com- 
munist state. 

Television news reports also quoted 
bystanders as saying at least three people 
were hurt, including one by flying glass. 

Notimex said the first explosion took 
place at the Capri, and was followed 10 
minutes later by a blast several blocks 
away at the Hotel Nacional, a Havana 

A receptionist at the Capri hotel said 
that the explosion there was “kind of 
strong," and that lobby windows had 
been shattered. 

Carlos Alvarez, a Spanish tourist, 
was leaving his 11th floor room at the 
Capri when the blast went off. 

“It felt like an earthquake," be said. 

There have been previous rumors of 
bombings at Cuban tourist hotels. There 
have also been attempts by radical Flor- 
ida-based exile groups to deter tourism 
— including one years ago when a 

■ speedboat sprayed bullets at foreign ho- 
tels on Varadero Beach east of Havana. 
No one was hurt 

In Miami, Jorge Mas Canosa, chair- 
man of the Cuban American National 
Foundation exile group, said President 
Fidel Castro’s government was respon- 
sible for the blasts. 

Ricardo Alarcon, the president of tbe 
Cuban Parliament and a top official in 
Mr. Castro’s government, last month 
dismissed rumors of bombings and ac- 
cused the United States of not doing 
enough to discourage Cuban exiles from 
attacking the island. 

"It is one of the safest places in the 
world,” he said of Cuba. 

The Cuban government , said that 
more tiian 1 million tourists had visited 
the country in 19%, spending about $ 1 .3 
billion. Tourism has become Cuba’s 
largest gross source of foreign revenue. 

■ Guevara’s Remains Returned 

The remains of the leftist guerrilla 
Ernesto "Che” Guevara arrived in 

Cuba almost 30 years after he was cap= 
tured and shot in October lowing 
• leading an abortive rebel upoa^rjHp: 
Bolivia, Reuters reported from Havana^ 
Mr. Castro was present at a solea&fc 
ceremony Saturday at San Anton» de£: 
los Banos air base about 2Q miles- (3ft 
kilometers) south of Havana. ~m 
Guevara’s remains were flown: 
Bolivia. r" 

The remains were brought to I 
along with those of three Cuban gner; 

secret grave near Vallegrande in Bo 
last week by a team of La tin A 

Present to meet Guevara s : 
were family members, old coum 
and senior members of the Cuban gov»|fc 

An Argentine-boni doctor, Guey 
served as Mr. Castro’s right-hand 
during the rebel struggle that I 
Mr. Castro to power iiiT959. He — 
one of Cuba’s most revered heroes 
an icon for a generation of lefti 
around the world. 

The return of Guevara’s reman 
comes in a year that Cuba bas-offi 
tagged the “year of the 30th annivt 
of the fall in battle of the Heroic-Guer, 
rilla and his comrades." • 

Crash Toll at 21" 
As Cubans Find 



The Associated Press . 

MEXICO CITY — Recovery 
searching Caribbean waters where a Qg-^ 
ban airliner crashed have recovered ra& Aflt 
plane’s in-flight data recorder 
bodies, an official report said. ' i 
The other 23 people aboard the : ai^^- 
craft were missing and feared dead._ 
Cubana de Aviacion Flight 
bound for Havana, plunged into 
Friday night abont three minutes afSfr:;g|^ 
takeoff from the southeast city of San-;, 
tiago de Cuba, a spokesman for ihe^^- 
airline, Manolo Fernandez, said by 
phone from Havana. 

Mr. Fernandez said 39 passengers ^ 
and a crew of five were on the Russian^:)? 
made, twin-engine An-24 aircraft^ 
There were eight non-Cubans on the- 
flight, six Spaniards and two Brazilians, •: 
he said. . 

Cuban Navy ships and Air Force^ig 

Cuban Navy ships and Air t orce^ 
planes searching calm, seas about, four 
kilometers (two and a half miles) off the 
coast found the plane’s in-flight data, 
recorder, or black box, and parts of theK-%- 
fuselage on Saturday, the official Ciiban,: ^ 
news agency Prensa Latina reported: ^ 
The flight recorder will be exammed-by-^5 
a 40-member government commission : r V. 
to determine the cause of the accident' ? -T 

Israeli Troops Wound 16 
In Clashes in West Bank 

Co^Jnlbi On' Stuff Frat: Disfvhhn 

HEBRON, West Bank — Israeli 
troops wounded 16 Arabs, including 
five journalists, during dashes in 
Hebron on Sunday as Prime Minister 
Benjamin Netanyahu warned Palestin- 
ians that they would pay a high price if 
the violence continued. 

Not even concrete barriers erected 
overnight by the Israeli .Army along an 
invisible line dividing this tense West 
Bank city could keep the Palestinians and 
Israelis from colliding in the streets. 

Palestinians on the side of the city 
ruled by the Palestine Liberation Or- 
ganization hurled stones and gasoline 
bombs al soldiers in the Israeli-occupied 
part of the city. 

Witnesses said the troops responded 
with rubber-coated metal bullets and 
live ammunition, wounding 16. 

“Our aim is to prevent a deterioration 
but if there will be a deterioration on the 

• t • • - . 

other side, it will have a very^gh ;^. - 
price," Prime Minister B enjamm^et-" ^ = 
anyahu said during a weekly meeting off fy 
cabinet ministers, according to a state- j 
ment issued after the meeting. 

Hebron has been the scene of aknq&t . 
daily disorders and unrest for mate than; - 

two weeks. . 

A cameraman from Abu Dhabi 
hit in the head with a ru b ber-coated- f 
bullet and seriously him. ' A 

Soldiers also shot and wounded a^jf 
cameraman working for the U.S. tele- :■ 
vision network ABC and one from The ‘ ;^ r 
Associated Press. ’ I :. £■'. 

Palestinians accused the soldiers ofim-.-.,*” 
posing a collective punishment by putting ••i-v 
up the barriers and isolating the 20,000:-.;: 
Palestinians living on the Israeli-held side 
from the SO.OOO living under self-rule. ~ 

The soldiers are protecting 400 Jew-^f-t 
ish settlers who live amid Arabs in the 
heart of Hebron. (Reuters. AP) 

Have you been to 


Don’t miss it. A lot ha p pens there. 

Living in the U.S.? 

Now printed in New York 
for same day 
delivery in key cities. 

To subscribe, call 

1 - 800-882 2884 

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Itcral o^J& inbnnc 


R. Andersen, Bridge Whiz, Dies 

;Vm' York Times Service 
Ron Andersen, 56, one of 
the top bridge players in the 
world, died July 3 in Chicago 
after suffering three strokes as- 
sociated with kidney failure, 
according to his brother, Ken- 
neth Andersen. 

In 1977, Mr. Andersen be- 
came the first player to win 
more than 2,000 master 
points in a year, giving him 
the Barry Crane Top 500 title. 

Arts & Aimiques 

Appears every Saturday. 

To advertise contact 
Kiraberlv Cuerrand-Betrancourt 
TeL- -f 33 (0) 1 41 43 94 76 
: Fax: + 33 (0)14143 93 70 
or your nearest IHT office 
or representative. 

which designates the top 
player on the tournament cir- 
cuit. He won the title again — 
in 1980, 1983 and 1986. 

He was a three-time winner 
of die prestigious Spingold 
Knockout Team Champion- 
ship. in 1983, 1986 and 1988. 
and his eight other national 
titles included two victories in 
the Redsinger Board-a-Match 
Team Championship, in 1980 
and 1992. 


BERRY, Dean, 

died suddenly in Amman. Jordan 
on July 1st, much loved father of 
Anne, Margaret. Glenn and Alison, 
past husband of Katfiryn and fond 
partner of Judith. A Memorial 
service will be heU in Sl Bride's 
Church, Reel St.. London 
ENGLAND on Wednesday 
15th October at 12 noon. Letters 
to the family at 27 Pier ~. 
Chariest own. MA 021 29. USA 
Donations if desired to SCOPE at 
1 2 Parie Crescent 














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« Spaniards a:,.i i-.vo Br-nto 

By Matthew Purdy 

■Vcw >fcrfr Tuttes Scrvict 

MONTOURSVILLE. Pennsylvania 
— The graves are clustered on the 
cemetery hilltop, and next to each hangs 
a wind chime that catches the breeze 
sweeping off the surrounding moun- 
tains. Every gust brings a round of 
shimmering notes that rise like the ex- 
cited chaner of children. Bat as the wind 
begins to die. the sound slows to a 
mournful metallic dirge. 

Tbe cycle is constant among the 
graves of the 16 teenagers and five adults 
who a year ago left this small town 
etched in the hills and farms of central 
Pennsylvania for the thrill of a high 
school French -club romp through Pam. 

Their adventure ended in disaster on 
the sultry evening of July 17. 1996. 
when Trans World Airlines Fligbr 800 
exploded and crashed into the Atlantic 
Ocean 1 1 minutes after taking off from 
Kennedy International Airport. 

One year later, the precise cause of 
the explosion remains a frustrating 
puzzle, with investigators still focused 
on the instant when fumes in the plane’s 
center fuel tank ignited. 

But the deaths of the 230 people on 
board, made even more agonizing by 
the unanswered questions of the crash, 
have reverberated far beyond, that mo- 
ment, symbolized by the deep gash that 
the disaster left in Montoursville, 

The destruction here has been 
likened to a war or cyclone battering a 
village. When Mayor Rudolph Giuliani 
of New Y ork came to this town of 5,000 
for a memorial service in August, he 
said that an equivalent loss for New 
York City would be the deaths of 
35.000 people. In Montoursville. every- 
one who was not a victim knew 
someone who was. 

Adriane Schlachter aie lunch in 
school every day with three other girls, 
two of whom were killed in the crash. 
So was her physics lab partner. 

“They were athletes." she said. 
“They were scholars. They were com- 
puter geniuses. They were artists. They 
were cheerleaders." 

Craig Kurtz, an assistant middle- 
school principal who lives across the 
street from the high school athletic 
field, looks out of his house and misses 
Ranee Herder, who used to stay for 
hours after the rest of the track and field 
team left, so he could practice throwing 
the javelin. 

When Kathy Thomas went to her 15- 
year-old daughter’s dance recital, she 

The deaths of the 230 
passengers, 21 of them 
friends and relatives, 
keep reverberating in 

missed Julie Grimm, a splendid dancer 
who was her goddaughter. 

Six-year-old Brian Cox lost his sis- 
ter, and when he misses her he says to 
his mother, "I need a Monica story.” 
July 17 will mark a year since the 
French-club travelers said an excited 
farewell and boarded a bus for Kennedy 

"It’s been long and it's been short 
and all that's wrapped up together," 
said Irenay Weaver, whose 16-year-old 
daughter died in the crash. "It seems 
like yesterday I was holding her in my 
arms. It seems like forever ago that I 
was holding her in my arms." 

The passage of time has had a sooth- 

ing effect. The all-consuming grief of any news of tbe crash, which it often did 
the steady parade of coffins and fu- in tbe fail. 

nerals and tears last summer has been 
replaced by a duller pain that has 
worked its way into the fabric of daily 

The year at Montoursville Area High 
School that began with trepidation and 
grief counselors ended with tradition — 
a joyous graduation. 

Even government affairs are back on 
track, with a bit of a tussle over whether 
building a memorial to the Flight 800 
victims next to the high school would be 
too prominent a reminder. 

There was no guidebook for how the 
town could navigate its grief, and that 
was particularly true at the high 

■ * We walked on eggshells, ’ ’ said Ray 

Signs of the disaster were not totally 
absent. Athletic teams wore special 
armbands or stickers, and when visiting 
teams came to Montoursville they often 
brought flowers or other offerings of 
condolence. . 

But some students said they felt that 
at the beginning of the year, the school's 
policy was that the crash ‘ 'was not to be 
mentioned or talked about," said Ms. 
Schlachter, who was die editor of the 
high-school newspaper. 

She said that many students, fearing 
embarrassment, shied away from vis- 
iting the counselors provided by the 

"Teenagers didn’t want to go to 
counselors,” Ms. Schlachter said. “It’s 

Huff, the principal. As the first day of not cool. A lot of people were dealing 
school approached, he feared a kind of with it inside. They should have been 
mass emotional breakdown. Psychol- talking to someone." 
ogists and counselors were brought in. Within a few months, studenfs start- 

and the school administrators decided 
to steer a middle course. 

The idea was "not necessarily to 
downplay it, but not to dwell on it," said 
Mr. Huff. "We felt it was critical to get 
the siudents on task as soon as pos- 

Last summer the school turned into 
the focal point of the town’s mourning. 
The gym had been used for funeral 
services and wakes. The lobby was 
overflowing with flowers, poems and 

Within a few months, students start- 
ed asking to be protected less. 

They told Mr. Huff that they wanted 
to see the news about the crash and 
some said they were looking specif- 
ically for books used by crash victims 
with whom they had been friends. 

Mr. Huff said listening to the students 
was helpful. "Sometimes you can be 
overprotective." he said. "They were a 
pretty good guidepost as to where to 

Beginning in January the school used 

Joyce DcpkrciVrhc Ne* Y<ii runes 

Adrienne Schlacter visiting a friend’s grave. Sixteen teenagers and five 
adults who died in the crash are buried in Montoursville Cemetery. 

agers, more with happy memories than diary, miraculously found in the wreck- 

mementos of sorrow sent from around a showcase in its lobby to have a week- 

with tears. 

For Cindy Cox, whose daughter 
Monica died on Flight 800, tbe pain 
began late on the night of July 17 when 
her father called to tell her the news of 

the world. 

Before school started in September. 

long display on each of the victims of the crash he had seen on television. 

the crash. The displays, prepared by 

die lobby was cleared of all reminders of families and friends, included pictures 

the crash. Textbooks that had been used 
by any of the victims and had their names 
iii them were taken out of circulation. 

Channel 1 , the electronic educational 
program shown each morning at the 
high school, was withheld if it included 

and personal belongings and allowed 
the crash an overt place in the school. 

Teenagers say they visit the parents 
of deceased friends every week. Neigh- 
bors have gathered on the birthdays of 
the victims to celebrate the lost teen- 

"The nightmare had begun." she 
said. "AU I could do was scream 

The year has been a series of painful 
episodes committed forever to memory. 
There was the overpowering stench of 

age, that chronicled Monica's frenetic 
excitement at her impending trip. 

Time helps to remove the sting from 
the pain. So do the sweet memories. 

* ‘The last couple of months of her life 
is what I’ll t hink of most," said Ms. 
Weaver, whose daughter, also named 
Monica, was on Flight 800. “Going to 
the prom. Having a boyfriend. She was 
the happiest she had ever been and I’m 
happy about that. She was going to be a 

There was the overpowering stench of senior. She had gotten her driver's Li- 
aviation fuel on the few recovered scraps cense. She was happy. She was excited, 
of her daughter's clothing. There was the She was going to see the world. ' * 

House Republicans Put 
Security Focus on China 

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By Walter Pincus 

’ Washington Post Service 

WASHINGTON — Republicans in 
the House of Representatives are trying 
to get the U.S. national-security ap- 
paratus to focus more attention on 
China’s intelligence and military op- 

The House last week approved a pro- 
posal by its Intelligence Committee for 
' an annual report by die CIA and FBI on 
intelligence activities by China "dir- 
ected against or affecting the interests of 
the United States." Tbe provision was 
included in the fiscal 1998 intelligence 
authorization bill. 

The House had already approved, in 
the 1998 defense authorization bill, the 
creation of a $5 million center for tbe 
study of Chinese military affairs at the 
National Defense University. The 
House’s National Security Committee 
.6 pushed for tbe center after it determined 
f that Pentagon leaders needed a source of 
analysis of the potential military threat 
from China that would be academically 
and intellectually independent. 

According to intelligence sources, 
only the Soviet Union, at the height of 
the Cold War, has been singled out 
previously for such a special report to 
Congress, and then only because KGB 
officers with diplomatic cover bad been 
discovered meeting with Capitol Hill 
staff and Moscow was found to be pla- 
cing disinformation about the United 
States in newspapers around the world. 

"The Chinese-have nothing like that 
under way," one intelligence specialist 
said, "and there are questions about the 
degree of organization they have in this 
area,’’ The annual report, he added, 
"will require someone to keep track of 
whether such a case could be made in 
the future.” 

Representative Bill McCollum, Re- 

publican of Florida, who drafted the 
provision, linked it to "fund-raising 
scandals" that he said "suggest that 
China has apparently derided to take a 
more aggressive approach toward in- 
fluencing American politics.” 

Classified and unclassified versions 
of the report are to cover political, mil- 
itary and economic espionage along 
with activities aimed at gaining influ- 
ence m the United States. 

The classified version of the report 
would go to leaders of the two main U.S. 
political parties and the House and Sen- 
ate intelligence committees and "could 
be useful," one specialist said. He ex- 
pressed doubt that the nonclassified ver- 
sion, which would be made public, 
would contain any specific information, 
because of the need for security over the 
way the material was collected. 

Mr. McCollum said Pentagon intel- 
ligence officers bad determined that 
Chinese arms production and sales were 
increasingly being used to "gain hard 
currency and expand global political 
influence." Representative Nancy 
Pelosi, Democrat of California, one of 
the legislators warned by the FBI that 
Beijing might be funneling money into 
U.S. elections, said the new report 
woald "contribute to our ability to re- 
spond appropriately to any Chinese es- 
pionage activities which may occur." 

The legislation said the center to 
study Chinese military affairs should be 
created not because the United Slates 
viewed Beijing as an enemy but because 
"stated geopolitical ambitions of China 
will pose challenges” requiring careful 
management in order to preserve peace 
and protect U.S. national security. 

Defense Secretary William Cohen 
was ordered to report on a timetable for 
the center and by Jan. 1. He also was 
directed to create the center by March 1 
and to name a director by June I . 

Senator Makes Light 
Of Weighty Budget 

WASHINGTON — When confer- 
ees sat down to work out the dif- 
ferences between House and Senate 
bills rq balance the budget. Senator 
Daniel Patrick Moynihan, Democrat 
of New York, came armed with a 50 1- 
page report, completed at the request 
of 'Treasury Secretary Robert Rubin 
and the White House chief of staff, ( 
Erskine Bowles. < 

Of the 501 pages. 500 were blank. ] 
Senator Moynihan proposed Friday j 
to eliminate the deficit by eliminating ] 
overstatement of the cost of living, by ( 
taxing Social Security benefits and I 
increasing the number of years on 4 



With Home Schooling on Rise, 
Recipient Spells Out Its Success 

Rebecca Sealfoo, the Brooklyn girl who 
won this year's National Spelling Bee, was 
the first home-schooled winner of the com- 
petition. She may well not be tbe last A new 
study has found that the number of srudents 
nationwide being schooled at home has 
soared, from about 400,000 in 1990 to more 
than 1.2 million today, and that these stu- 
dents tend to excel academically. 

The author of the study, Bnan Ray, an 
Oregon researcher, found home-schooling to 
be the fastest growing "educational altera- 

which payments are calculated. 

The form was light-hearted, sen- 
ators who were in the meeting said, but 
the proposal was serious. 

“Government has become so com- 
plex it can no longer do simple 
things,’ ’ Mr. Moynihan said. ( WP) 

Clinton Forgives 
Canadian Leader 

WASHINGTON — President Bill 
Clinton, saying he knew about private 
conversations getting picked up by 
microphones, says he has no hard feel- 
ings about the barbs of the Canadian 
prime minister, Jean Chretien. Mr. 
Chretien was killing time with other 
leaders at the Madrid NATO meeting 
whileMr. Clinton kept them waiting. 

Unaware that his remarks were be- 
ing picked up. Mr. Chretien said Mr. 
C Unton was promoting NATO expan- 
sion to win points with ethnic voters in 
the United States and that such brazen 
vote buying would put other nations' 
politicians in jail. (WP) 

Quote /Unquote 

Judge Joseph Brown Jr, after law- 
yers criticized his tough examination 
of witnesses, at a hearing about the rifle 
that killed Martin Luther King Jn ‘ 'Dr. 
King is dead, in his grave, a national 
hero, a world hero, a national holiday 
named alter him. I’m not going to 
allow the vicissitudes of somebody’s 
artful cross-examination to keep me, 
as the trier of fact, from getting to the 
bottom of this. Overruled.’’ (NYT) 

Away From Politics 

• A man was coaxed out of his home in 
issaquah. Washington, by police of- 
ficers after he pulled a gun and shot 
several times at his personal computer, 
apparently in frustration. (AP) 

•Three shipbuilders on an aircraft 
carrier in Newport News, Virginia, 
were killed when the compartment 
where they were working filled with 
methane gas and sewage from a leaky 
pipe. Hundreds of others fled the giant 
ship, the Harry S. Truman. (AP) 

•A 22-year-old man, bungee-jumping 
off a railroad trestle in Springfield, Vir- 
ginia. hit the ground and died because 
the cords he used were too long. (AP) 

•A truck jumped a curb in Locust. 
North Carolina, and roared into a soft- 
ball team's car wash, killing a customer 
and a team member’s sister. (NYT) 

children who gel their learning at home are 
not short-changed, at least educationally. 
Home-schooled children outperform their 
public school counterparts on standardized 
tests, according to Mr. Ray. Most states do 
not require parents of home-schooled stu- 
dents to have an advanced degree. Mr. Ray 
said the students’ test scores tend to fall 
between the 80th and 90th percentiles re- , 
gardless of whether tbe parents have high , 
school or college diplomas. 

Kathleen Smith of Athol. Massachusetts, 
has taught her two sons at home for five years, 
and believes that public reaction has changed 
dramatically in that time. "People are more 
accepting,” she told The Boston Globe. 
"They aren’t as shocked by it now." 

Short Takes 

The booming popularity of tattoos 
among young people has many parents see- 
ing red — and blue, and green. Tattoo parlors. 

alive." The movement has rapidly been gain- 1 once found in pool halls, amusement arcades 

ing wider acceptance, not yet in the main- 
stream but no longer seen as an offbeat refuge 
for the deeply religious, loners, or families 
who consider public schools inadequate. 

Awareness appears to be growing that 

and near military bases, have been invading 
suburban malls and luring an increasingly 
middle-class clientele. In response, the states 
of Arizona, Montana, Virginia and New 
Hampshire have recently passed or imple- 

mented legislation to limit or forbid the tat- 
tooing of minors. Similar legislation is being 
considered in Delaware, Indiana. Missouri 
and New York. Typically, the laws say a 
minor can receive a tattoo only if a parent is 
present and provides signed consent. 

Tattoo needles, improperly used, can 
spread Hepatitis B, AIDS and bacterial in- . 
fections. Tattoos, of course, are not easily 
removed, and many these days cany mes- 1 
sages less innocent than "Mom." " i 

Casinos hope to be exempted from a 
wide ban on smoking included in the pro- 
posed settlement between tobacco companies 
and 40 states. A survey by a University of 
Nevada professor for the Las Vegas and 
Greater Reno chambers of commerce cal- 
culates that one-third of casino patrons are 
smokers, and that they would leave the gam- 
ing tables and slot machines of smoke-free 
casinos for 12 minutes every hour to step out 
for a smoke. That, according to the study, 
could cost gambling balls nearly $400 million 
a year. Some Nevada state health officials, 
however, say these numbers are grossly in- 

Brian Know! ton 



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Phnom Penh Coup Leader 
Calls for Political Peace 

Hun Sen Supports ‘Free and Fair’ Elections 

By Seth Mydans 

Sew York Tuna Service 

PHNOM PENH — Second Prime 
Minister Hun Sen sought Sunday to 
legitimize his week-old coup, calling 
, for the Quick convening of Parliament. 

■ the holding of “free and fair" elections 
and the protection of human rights and a 

• free press. 

His statement came as Western dip- 

■ lomats reported that at least some arrests 
and violence continued as Mr. Hun 

.Sen’s former Communist Party, the 
Cambodian People’s Party, consolid- 
ated its control of the country. 

Mr. Hun Sen received support from 
King Norodom Sihanouk, the country's 
titular leader, who sent a message from 
China calling him •■victorious." 

The king declined even to mention 
the name of his son. First Prime Min- 
instcr Norodom Ranariddh, whom Mr. 
Hun Sen ousted as his coaltion partner. 

He also declined to condemn the 
armed action that has disrupted his na- 
tion and sent fear through his people, 

' and addressed Mr. Hun Sen "affec- 
tionately, ' ’ saying, * ‘I cannot become ‘a 
judge’ as to what is a 'coup' or a 'non- 
coup.' ” 

There were signs of emerging in- 
ternational acceptance for Mr. Hun 
Sen’s power grab, as foreign govern- 
ments condemned the violencebui held 
out hope for a resumption of the forms 
of a democratic government and for 
acceptable elections next year. 

In Japan, Prime Minister Ryuraro Ha- 
shimoto was quoted as saying, “I hope 
rfta t a new first prime minister to replace 
First Prime Minister Norodom Ranar- 
iddh can be chosen." 

And in Australia, a leaked diplomatic 
cable reflected a widely expressed de- 
sire among diplomats here for an end to 
. the squabbling and ineffectual style of 
government that has allowed Cambodia 
to slide further into poverty, corruption 
and instability. 

"Is this not better than gening back 
into the sterile game of propping up 
Ranariddh?" said the Australian am- 
bassador. Tony Kevin, in a cable quoted 
by the Sydney Sun-Herald. "It seems to 
me that this would simply help to pro- 
long the long war — and for what?" 

His cable is reported to have con- 
tinued: "I think Hun Sen is trying to pull 
off what he has always wanted — a more 
or less well-governed Cambodia under 
CPP. but legitimized by a reasonably 
free and fair election in May 199S." 

Since a two-hour radio address a 
week ago as the guns of his victorious 

soldiers fell silent. Mr. Hun Sen has 
repeatedly said he hoped to hold the 
scheduled elections ana to keep in place 
the coalition government. 

He has urged the royalist party to 
select a new leader to be his senior 
partner in the coalition leadership. A 
consensus appeared to be emerging 
Sunday among (he royalists to name as 
their leader Tan Chai. a war hero who 
has been an opponent of the prince. 

Raoul Jennar, an expert on Cambod- 
ian politics, said that if the royalists 
themselves select a new leader and if a 
new first prime minister is elected 
through a free and secret parliamentary 
vote, “then this is a legitimate gov- 

He noted that voters in 1993 had 
elected a party, not a personality, to lead 
them and that the royalists could replace 
Prince Ranariddh if they choose. 

"Sure, terror plays a role,” he said. 
“But there has been a split in the party 
for a long time, and it is not fair to say 
that if they choose a new leader today it 
is just a reaction to terror. They have 
their own genuine political reasons." 

Mr. Hun Sen’s statement Sunday ap- 
peared to answer the demands of the 
international community, including 
statements from the U.S. State Depart- 
ment and the UN Security Conned. 

But diplomats cautioned he would 
need to deliver. "These comments are 
most welcome." said one diplomat 

"But to be credible, the killings have 
to stop, the arrests have to stop. If he 
says the same things in six months and 
he has kept his hands dean, people can 
begin to hope.” 

SEEKING TO STAY — Children waiting Sunday at a Hong Kong 
school to be registered by a social welfare group before receiving 
legal aid. Hundreds who face deportation came with their parents. 

Hundreds in Hong Kong 
March for Labor Laws 

OMpW hv OwSk^fFnen Dtyv* 

HONG KONG — More than 500 
people marched in the streets Sunday to 
protest the new legislature’s anticipated 
decision to suspend labor laws that were 
adopted before Hong Kong was re- 
turned to Chinese rule July 1. 

Unionists and democracy activists 
marched half a kilometer (a third of a 
mile) from the Star Fenv pier in Vic- 
toria Harbor to the office of Hong 
Kong’s new leader. Tung Chee-hwa. 

Joining them were several former 
lawmakers who lost their jobs when 
China disbanded Hong Kong’s elected 
legislature, as well as members of Hong 
Kong's largest political force, its Demo- 
cratic Pany. 

They chanted slogans and carried 
banners protesting the appointed leg- 
islature’s expected suspension of seven 
bills giving workers increased bargain- 
ing powers. The bills were approved by 
the last legislature shortly before the end 
of British rule. 

The government failed Iasi week in 
its initial attempt to scrap the bills on 
grounds that they had been passed hast- 
ily and without proper consultation with 
employer groups when members of the 
provisional legislature said they needed 
more time to study the bills. 

But the legislature is expected to sus- 
pend the bills this week. 

A trade unionist, Lee Cheuk-yan, one 
of the ousted legislators, has been stag- 
ing a hunger strike to protest the gov- 
ernment’s move. 

Looking exhausted, Mr. Lee joined 
the march in a wheelchair. 

March organizers said in a petition 
that the proposed suspension "means a 
big step backward in the rule of law, 
workers’ interests and democracy." 

They added: “We haven’t seen any 
problems in putting these laws mto . 
practice. We haven’t heard complaints • 
from the public.” ,. . 

The real reason for suspending the 
laws, they said, would be " to protect the 
interests of the diciaiors and. business -- 

sectors.'" • . . .j 

Kwan Chi-man. 43, a unionist, said 
he had taken pan in the march “to show Jk 
the public that workers will stand up for 

their interests.” . 

Two pro-democracy members in the 
new legislature. Frederick Fung and 
Ambrose Liu. also joined the rally. _ 

Mr. Fung said he foresaw, that the 
business sector would dominate the leg- 
islature in the next 10 years. 

"It's clear that the new legislature is v 
inclined to protect the interest of the y 4 
business sector." he said. 

Some lawyers, meanwhile, said Mr. 

Tung may be headed for a constitutional 
crisis after pushing a law to deport il- 
legal children and suspend labor law s. 

The child immigration law. the first 
passed by the new legislature, amended 
Hong Kong’s Basic Law, a son of con- 
stitution that went into effect at the end 
of British rule. ■ 

Scores of lawyers have volunteered 
to help defend as many as 2,000 children 
who have poured into Hong Kong il- ; il- 
legally over the past year, believing the - 
Basic’Law gave ihem the right of abode : ” 
because one of Their parents was, a Hong C. ; T 
Kong resident. . ’'--M 

The legislature amended the Basic - y 
Law and made the amendment retrod ■ ^ 
active ioJuJv i. 

The children now must have proper 
papers before arriving from the main- 
land China and can be deponed if they 
are in Hong Kong illegally. 


Cambodian Chaos: Power Plays and Blinkered West to Blame 


By Keith B. Richburg 
and R. Jeffrey Smith 

Wdsltinchw Post Strict 

For one brief instant — a few years, 
really, but a relatively short span of 
recent history — it appeared that Cam- 
bodia’s long'curse of conflict and suf- 
fering might finally be over. 

A peace deal brokered in Paris and a 
$3 billion UN operation had ended two 
decades of warfare. King Norodom Si- 
hanouk was restored to the throne he 
lost 20 years earlier in a coup. An elec- 
tion. although troubled and violence- 
plagued, was held on schedule in 1993. 
The notorious Khmer Rouge guerrillas 
seemed to be a spent force. And the 

country's two prominent political 
rivals. Prince Norodom Ranariddh and a 
former Communist. Hun Sen. agreed to 
share power. This was. it was said, the 
United Nations' major success story in 
the world. 

Now f the dream that tiny Cambodia 
had finally achieved peace lies largely 
in tatters. It was shattered in a weekend 
military blitz that revived the agoniz- 
ingly familiar image of shells and gren- 
ades raining down on the capital and 
refugees streaming from the city. 

Mr. Hun Sen is now firmly in control 

nents. Prince Ranariddh is again con- 
signed to exile, where he spent ail of the 
1980s. trying to round up diplomatic 
backing for a comeback. And the Khmer 
Rouge, thought marginalized and in- 
effective, is trying to regroup militarily 
and talking of a long campaign of re- 
sistance to the “Vietnamese-installed" 

What went wrong? 

The problem was one increasingly 
suspicious leader. Mr. Hun Sen. who 
was unwilling to cede power, and an- 
other. Prince Ranariddh, who had 

after ousting his rival, with his troops ■ grown aloof from his supporters, ac- 

embarking on what one Cambodian aid 
worker called a “reign of terror" by 
summarily executing political op'po- 


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cording to diplomats. Cambodians and 
analysrs. The international community 
was so eager lo declare Cambodia a 
success thar it overlooked clear warning 
signs that the experiment was going 
awry. There was the failure of rhe 
United Nations to force the two gov- 
erning factions ro disarm, allowing 
them to embark on an arms race. 

And there was also the factor of the 
Khmer Rouge, the brutal Communist 
movement that took over the country in 
1975 and, led by the notorious Pol Pot, 
killed about I million Cambodians be- 
fore it was ousted by Vietnam, which 
first installed Mr. Hun Sen as leader. 
The Khmer Rouge never accepted the 
peace process and continued to wage a 
guerrilla war in remote regions, al- 
though in the last several years its 
strength has declined steadily. 

Both Mr. Hun Sen and Prince Ranar- 
iddh. eager to bolster their military po- 
sitions before the elections due next 
year, entered inro a race to see who 
could lure the most fighters from the 
fragmenting Khmer Rouge. Mr. Hun 
Sen scored first, claiming credit lust 
year for the defection of leng Saiy. Mr. 
Pol Pot's brother-in-law and a "mod- 
erate" who brought with him about 
2.000 Fighters. This year. Prince Ranar- 
iddh entered into intense negotiations to 
close a deal with Khmer Rouge hard- 
liners led by Khteu Samphan'and Ta 
Mok — a deal made more possible by 
the unconfirmed reports last month that 
Mr. Poi Pot had been arrested bv the 

remaining Khmer Rouge, and might 
turned over to an international tribunal 
to face war crimes charges. 

' ‘There was a great competition be- 
tween Hun Sen and Ranariddh to try to 
attract the Khmer Rouge to their side,” 
a Western diplomat said. "They both 
became convinced that a strong military’ 
position was needed to back ap their 
power and to protect themselves.' ' 

Mr. Hun Sen justified the coup by 
saying that Prince Ranariddh and his top 
military commander. General Nhiek 
Bun Chhay. were "illegally" infiltrat- 
ing Khmer Rouge units into Phnom 
Penh and importing weapons to the city 
to arm them. Prince Ranariddh has 
denied the accusations. 

Efrince Ranariddh said ’ ‘ he was going. to 
ask for. a true sharing of power at the 
village and district levels,’ ' according to ‘ T ** 
a Western diplomat 

After the coup last weekend. Mr. Hun 
Sen released a document explaining why 
he used violence. It mentions the Fun- 
cinpec party congress as “a tragic turn- 
ing point.” The document said Prince 
Ranariddh used the congress "to attack 
the concept of a coalition government” 

As Mr. Hun Sen and Prince Ranar- 
iddh prepared for open confrontation, 
former Finance Minister Sara Rainsy 
was gathering support for a new party, 
the Khmer Nation Party, dedicated to 
fighting comiption. Mr. Sam Rainsy be- 
came increasingly vocal in his criticisms . 

Diplomats and Jongtirae-Cambodia- ,_of Mr. Hun Sen’s Cambodian People's 

. i . • v>i r» Y . r n r j' n ■ n 

watchers in Phnom Penh say the roots of 

There was a great 
competition between Hun 
Sen and Ranariddh to try 
to attract the Khmer 
Rouge to their side. 5 

the current crisis lie in the power-shar- 
ing agreement between Mr. Hun Sen 
and Prince Ranariddh. Prince Ranar- 
iddh's party, known by the acronym 
Funcinpec, won the August 1993 elec- 
tions. However. Mr. Hun Sen and his 
Cambodian People's Party refused to 
accept the result and threatened a re- 
newed civil war unless their party was 
included in a new government. 

Prince Ranariddh endured rhe power- 
sharing arrangement, even though Mr. 
Hun Sen and his party kepi de facto 
control of defense and security’ as well 
as near- total control of local admin- 
istrations that are key to building up a 
panv organization. 

In March 1996. Prince Ranariddh an- 
nounced what amounted to a declaration 
of independence from Mr. Hun Sen. At 
a Funcinpec pany congress, under pres- 
sure from frustrated party officials. 


Party. Earlier this year. Prince Ranar- 
iddh and Mr. Sam Rainsy. along with ■ 
smaller parties, announced they were 
forming a new alliance called the Na- 
tional United Front.- which Mr. Hun Sen ~. 
said was a coalition against his party. V 

According to a diplomat with close .li- 
tres to Mr. Hun Sen. the second prime ^ 
minister had commissioned a survey 
that showed his party would get only 
about 20 percent of the vote in the next!**: J. 

On March 30, when Mr. Sam Rainsy . !r‘ i 
was holding a rally, assailants on mo- - 
torcycles Tossed grenades into the ;. j 
crowd, killing at least 16 people and x-** 
wounding nearly 200. Because an Amer- - 
icon was hart in that attack, an FBI team - -;/• 
came to Phnom Penh to investigate, and 
a report on the incident implicated ■ 
henchmen loyal ro Mr. Hun Sen. '• 

No Western leaders spoke out pub- yi 
lidv about Mr. Hun Sen's role. 'J£.. 

Cambodians, diplomats and analyses 
said Prince Ranariddh’s autocratic 
style, ineffectiveness as a leader and the 
corruption of some of his aides undercut 
his support in the West. The U.S. am- 
bassador. Kenneth Quinn, also advised 
Washington to avoid alienating Mr. 

Hun Sen because he was the most' 
powerful politician in Cambodia, dip- 
lomat:, say. 


Fatal Demolition in Australia 

CANBERRA — A building demolition that went awry 
Sunday pelted onlookers with debris, killing a 1 2-vear -old 
girl and injuring at least nine people. 

Police officers said the girl, who was nor identified, was 
among thousands of spectators on a road about 400 meters 
i44Q yards) across Lake Burley Griffin from the demolition 
site of the Royal Canberra Hospital. 

Instead of imploding and collapsing on its foundation, 
the hospital exploded, shooting bricks, mortar and bits of 
metal into the crowd. 

A Canberra Hospital spokesman said five people were 
being rremed for shock, a 14-year-old boy had chest in- 
juries. a man had on eye injury- a girl had abrasions and a 
1 2-year-old girl suffered a groin injury. (AP> 

Death Toll Hits 90 in Thai Fire 

BANGKOK — The death toll in the worst hotel fire in 
Thailand has risen to 90 as rescue workers discovered more 
bodies w hen they re-entered the Royal Jomticn Resort in 
Pattay a. local newspapers said Sunday 

Some survivors accused volunteer rescue workers of 
stealing valuables from their rooms and from the bodies of 
the victims. 

The fire lhal started Friday with a gas leak in a first-floor 
coffee shop consumed the 17-story luxury hotel in the 
beach resort of Pa nay a. 1 10 kilometer^ itiS miles) south of 

The police said many people died because emergency 
exit doors had been chained shut, and the hotel had no 
smoke detectors, sprinklers or fire extinguishers. UP' 

Gas Blamed in 3 Japan Deaths 

TOKYO — Three members of the Ground Self- Defense 
Force died and 1 8 others became ill. apparently poisoned by- 
gas from a nearby volcanic hot spring during a training 
exercise in northern Japan, a military spokesman said 

”V\e believe the three rangers may have died after 
inhaling a gas coming from a hot spring." he said, adding 
that 21 rangers lost consciousness or became sick. 

The 23 -man ranger unit was on a two-day hike in forests! 
on Mount Hakkoda on the nonhem up of the main island of 
Honshu, about 600 kilometers t400 miles) northeast of 
Tokyo. The spokesman said several members of the aroup 
collapsed near a volcanic pond Sunday. { Reuters) 

Tension Subsides in Bombay 

BOM BAY — The commercial capital of India was rerise 
Sunday, but life appeared to be rerumina to normal as the 
funeral of 10 people killed in a not ended peacefully, the 
police said. 

“The funeral has gone off peacefully." a police spokes- 
man sa ‘d. But there is still some tension and we cannot 
rule out the possibility ot trouble " 

Officials said ahout 1 0.000 people turned out for the-' 
funeral march for I U people killed Friday when the police- 

“To ,1? i*®, "° r,he «*«n suburb of Ghatkopar, ‘ 

-tt! 0 ^ LlLrs ** mi *cst from the citv center. 

The riot erupted after a garland o’f shoes was placed on> 
tin? statue of a revered leader of the lower social classes. 
Angry mobs « ho considered the act an insult forced shops 
and other businesses in Bombay to close Saturday in 

P r0,L ' Sl - iReuicrsV. 

For the Record 

At least 11 people died in Sri Lanka in fighting 
between government troops and separatist Tamil 
two separate incidents, the military said Sunday. 

A landslide in Japan killed a family of four in their - 
home Sunday . bringing the death toll from a weekoN^ 
rams in the country to 2*. ,he pa |j cc Si|idi K ol 

At least 21 people huv e died in a southern Philippine 
town in clashes between soldn-rv M r '‘ PP 1 . 
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Next Move 
Is the IRA’s, 
U.K. Says 

Calm Returns to Ulster 
After Sporadic Rioting 

Polish Town 

Fights Flood 
To Save Its Art 


BELFAST — Britain challenged the 
IRA to end its war against London’s rule 
Sunday after a week of nipiult in North- 
ern Ireland that culminated in tense but 
peaceful parades by pro-British Prot- 

"Let the IRA/Sinn Fein make their 
decision; the ball is in their court.' ’ said 
the British Northern Ireland secretary, 
Marjorie (Mo) Mowlam, as an uneasy 
calm took hold in the province after 
sporadic overnight rioting in two cities. 
Sinn Fein is the political arm of the Irish 
Republican Army. 

Britain, the United States and Ireland 
praised the Protestant Orange Order for 
scrapping four of hundreds of parades 
planned for Saturday, to avoid inflam , 
ing Catholic anger. The parades were to 
commemorate the victory in 1690 of the 
Protestant king, William of Orange, 
over the deposed Catholic monarch, 
James II. 

But the IRA and Sinn Fein came 
under intense pressure to end a guerrilla 
war against British rule that has po- 
larized Protestants and Catholics. 

The moderate Catholic leader of the 
Social Democratic and Labour Party. 
John Hume, urged all sides to seize a 
chance for progress. 

"Lei us now move forward from the 
constructive decisions by the Orange 
Order and build upon that," Mr. Hume 
said on BBC television. ‘ ’and let's work 
to keep building that new atmosphere in 
order to create an agreed society for the 
First time.” 

Prime Minister Tony Biair of Britain 
has signaled that Sinn Fein could enter 
into peace talks six weeks after an un- 
equivocal IRA cease-fire. 

On the eve of the traditional Protestant 
marches Saturday, the IRA wounded 
three soldiers and two police officers in 
an ambush in northern Belfast 

IRA activists were also suspected to 
have fired a mortar that exploded harm' 
lessly near a security base close to the 
border with Ireland. 

The police fired plastic bullets to dis- 
perse rioters in Londonderry and Belfast 
on Saturday night alter thousands of 
Protestants held parades. In London- 
derry. Irish nationalist youths anacked 
the police with stones, gas bombs and 
catapults firing ball-bearings, security 
sources said. 

The Associated Press 

WROCLAW, Poland — Volunteers 
and soldiers fought Sunday to protect 
cultural treasures here from the worst 
floods in decades, which have killed at 
least 56 people in Poland and the 
neighboring Czech Republic. 

The floodwater rose to second-story 
levels in this medieval city of 700,000 
people, and residents used motorboats 
to take themselves and their belong- 
ings to the safety of billy areas. 

Water and electricity were cut off as 
the floods reached Wroclaw, 300 ki- 
lometers (190 miles) southwest of 
Warsaw, on Saturday. More than 30 
helicopters supplied water, food and 
medicine to city residents. 

The most dramatic struggle with 
rising waters took place in Ostrow 
Tumski, an isle in the.heart of the city 
that has historic buildings from the 
13th cenrury. 

Thousands of volunteers and sol- 
diers laid sandbags on the banks of the 
Oder River to stop leaks in provisional . 
dikes protecting a Gothic church and a 
university library. 

Soldiers had earlier blown up dikes 
15 kilometers downstream from Wro- 
claw to diverr floodwaters to wooded 
areas away from the city. 

Farmland was almost unaffected, 
said Krzysztof Pomes of the national 
headquarters of the Civil Defense 

High waters were nor expected to 
recede from Wroclaw until the end of 

9- Year Search Uncovers 
Traces of 6 Great Terror’ 

Grave of 1,100 Victims of Stalin Is Found 

By David Hoffman 

Washington Post Service 

Grant IV IV- 

Soldiers rafting to the rescue of flood victims Sunday in Wroclaw. 

the week. Officials fear epidemics be- 
cause of lack of fresh water. 

The official death toll stood at 28 
both in Poland and in the Czech Re- 
public. But the Czech news agency 
CTK said Sunday that two more bodies 
were found in the Moravian village of 
Troubky nad Becvou. Rescuers fear 

thar at least two more people have died 

While water was slowly receding in 
northern Moravia, the authorities start- 
ed to evacuate about 7,000 people from 
the southern Moravian town of Ho- 
donin. about 250 kilometers southeast 
of Prague. 

MOSCOW — In a pine forest north 
of St. Petersburg, investigators have dis- 
covered a mass grave of victims of Stal- 
in’s 1937-38 purges. More than 1,100 
people, many cf them among the elite 
who disappeared during the Great Ter- 
ror, were shot and buried at the site. 

■ The discovery ended a search that had 
lasted nearly a decade. The location was 
pieced together from clues found in 
archives of the former KGB secret po- 
lice and its forerunner, the NKVD. 

"That grave has tremendous signif- 
icance," said Venyamin Yofe of die St. 
Petersburg chapter of Memorial a 
group dedicated to uncovering the truth 
about Soviet-era crimes, including the 
deaths of millions in Stalin’s system of 
labor camps, known as the Gulag. 

“These are representatives of the 
elite of that time, who just disap- 
peared," Mr. Yofe said. 

Among those executed at the sire, he 
said, were four Russian Orthodox arch- 
bishops. 30 Catholic priests, 300 
Ukrainians including prominent nation- 
alists and intellectuals, 20 Tatar polit- 
ical figures, a Gypsy king, Belarusan 
leaders, and many St. Petersburg lit- 
erary and scientific figures, as well as 
factory and shipyard workers. 

Mr. Yofe said the killings at the San- 
dormokh site, about 380 kilometers 
(240 miles) north of St. Petersburg. 

were carried out from Oct 27 to Nov. 4, 
1937, and that the Memorial group had 
been searching for the site since 19SS. 
Many of those killed were prisoners 
brought from the Solovetsky Islands 
prison camps on the White Sea, one of 
the most notorious in the Gulag. 

Last year, sifting through records of 
the former KGB. investigators found a 
list of 1,111 prisoners who had been 
executed, but they had little information 
about where. Then they found the re- 
cords on the case of Captain Mikhail 
Matveyev, who had been assigned from 
a branch of the secret police in Leningrad 
to oversee the execution of the prisoners. 
His records included a report — dared 
Nov. 1 0, 1937 — that the executions had 
been carried out. Later, he was arrested. 

His records included a mention of the 
execution sire, in the Karelia region near 
the border with Finland. They said it 
was at the 16-kilometer mark on a road 
between the towns of Medvezhyegorsk 
and Povenets. Witnesses described the 
execution site as a large sand pit. 

After much searching, the investiga- 
tors found it July 1. It was not far from 
where Captain Matveyev's records had 
indicated, but because the highway had 
changed, it was at the 19-kilometer point. 
The investigators spotted small pits that 
looked unnatural and found skulls 
pierced by bullet holes. Most of the 
victims had been shot in the back of the 
head. The graves were closed July 2. A 
monument is to be erected in October. 

Northern Italians Fear Secessionists Will Gain as Rome Dawdles 

By Celestine Bohlen 

New York Times Sen ior 

VENICE — Last September. Venice 
played unwilling host to the theatrical 
birth of Padania. the name of northern 
Italy's threatened breakaway state. 

Then, in May. in a late-night stunt, 
radical secessionists scaled the bell 
tower in Sl Mark's Square and unfurled 
the banner of La Serenissima Repub- 
blica , the Most Serene Republic, as this 
city of many canals and its far-flung 
empire were known until two centuries 

Venice is not a city that needs to 
anract attention, but flamboyant pub- 
licity like this would be a nightmare for 
any mayor, which is why it is probably a 
good thing that Venice's mayor, 
Massimo Cacciari. is. by profession, a 

philosopher. Now 53. he will return to 
the study of rheological philosophy 
when he steps down after November 

But as he gets ready to leave. Mayor 
Cacciari. who came to city hall three 
years ago advocating greater local 
powers for Italy's cities and regions, is 
worried char Rome is talcing too long to 
face up to the secessionist fevers run- 
ning high ihrough the Veneto region 
around Venice. 

"We need some real iangible pro- 
posals, otherwise the delirium of se- 

cession will only grow," he said, sitting 
in an office with high windows on the 

Grand Canal. 

"A process has been set off in the 
Northeast and especially in the Veneto 
with die set of social dynamics, which, 
if not met by a strong political response. 

will only continue to grow. If a snowball 
doesn’t stop, it will become an ava- 

Federalism is on the agenda of an 
Italian parliamentary commission 
charged with producing a package of 
constitutional reforms this summer. 

But Mr. Cacciari and others say that 
the commission bas so far dealt with the 
issue of decentralization only superfi- 
cially, oblivious of the urgency that the 
major secessionist party, the Northern 
League, and various splinter groups like 
the oae that briefly seized the St. Mark's 
bell tower have injected into the de- 

The league, headed by Umberto 
Bossi. perhaps Italy's most volatile 
political figure, has shown no signs of 
gaining strength since 1996, when it 
won 10 percent of the national vote and 

* as much as 40 percent in some Veneto 

But Mayor Cacciari says that the 
league, fed by frustration with the gov- 
ernment in Rome, is now after more 
than mere votes. 

‘ ‘The electoral question is not the one 
that is troubling but rather the fact that 
the league has taken on an increasingly 
hostile and overbearing attitude," Mr. 
Cacciari said. “They are becoming 
more intolerant, more bellicose." 

Even if the constitutional commis- 
sion comes up with a federalist solution, 
the proposals must be approved by Par- 
liament and a national referendum. 

In the meantime, Italy is heading for 
another test as it straggles to meet the 
criteria for the European Monetary Un- 

If Italy is left out of the introduction 

of the common European currency in 
1999, the exclusion will give the North- 
ern League more ammunition to argue 
that Italy’s fortunes are being dragged 
down by an economically backward 
sonth and a politically irresponsible 

For the small and medium businesses 
whose exports have fueled the recent 
boom in the Veneto, exclusion from 
their customers' currency could be crip- 

“If Italy doesn’t make it into the 
common currency, that is something 
Bossi will play off." said Francesco 
Jori, a political reporter for H Gazz- 
ettino, a Venice newspaper. 

“If that were to happen, the north 
would feel penalized as a result of the 
south, and there would be a real risk of a 


Italian Troops Arrive in Naples Mir Crew to Rehearse Repairs 

NAPLES — The first Italian troops arrived here Sunday 
after a government decision to send the army to help quell 
fighting between. mob clans. About 300 troops arrived in 

buses, trucks and jeeps. They will take up surveillance and 
security duties Monday. 

MOSCOW — The crew of the space station Mir took a 
much-needed day off Sunday and planned to begin training 
Monday for a mission to restore power to their banged-up 

The i 

The government said Friday it would send 500 soldiers to 
take over guard duties in the Naples area, freeing the police 
to focus on halting the wave of mob violence. 

Mare than 80 people have been killed and dozens 
wounded in fighting this year for territorial control between 
Naples mob clans. 

Newspapers published maps Sunday showing where 
troops would be stationed, including the law courts, the jail, 


• crew will rehearse the repair mission Tuesday, while 
the mission itself has been tentatively scheduled for Thurs- 
day and Friday. Mir was damaged in a collision with a cargo 
ship on June 25. Since then, the space station bas been 

framing along on half its usual power. 
The two Russian 

the synagogue and foreign consular offices. 

More Cyprus Talks Set in August 



cosmonauts aboard Mir are to install a 
new center plate on a hatch that was closed after the accident 
to seal off a damaged portion of the station. They also will 
try to reconnect power cables that were disconnected when 
the damaged module was sealed off. The American on Mir, 
Michael Foale, will wait in an escape capsule during the 
repair, which is expected to rake five horns. (AP) 

UNITED NATIONS, New York — Greek and Turkish 
_ _ riot leaders have ended their first talks in three years, 
declaring that UN proposals fall short of their demands but 
agreeing to meet again next month to try to end the 23-year 
division of the Mediterranean island. 

The four-day conference sponsored by the United Na- 
tions at the Troutbeck resort, north of New York City, 
produced no breakthrough. The talks ended Saturday. The 
two sides will meet Aug. 1 1-16 in Switzerland. 

‘ ‘The gap has not been bridged,’ ’ said the Greek Cypriot 
•president, Glavkos Klerides. But the Turkish Cypriot lead- 
er, Rauf Denktash, said the meeting had shown that die two 
sides had “a lot of things on which we can talk and probably 

°^'a^ied!^We can, by and by, prepare the way to 
agreeing on main issues. " (AP) 

Tribunal Poised to Punish Serb 

THE HAGUE — The United Nations war crimes 
tribunal in The Hague will hand down a sentence Monday 
on Dusko Tadic, the Bosnian Serb who was convicted May 
7 of war crimes in Bosnia. 

The sentence by the International Criminal Tribunal for 
the Former Yugoslavia will be the first handed down by the 
tribunal after a formal trial. 

Prosecutors requested the maximum sentence of life in 
mi, citing the "exceptional" seriousness of the de- 

pnsor . 

fen dam’s crimes as a guard in 1992 at a detention camps run 
' 1 killed. 

by Bosnian Serbs where Muslims were tortured and 
Defense lawyers called for a sentence of no more than four 
to five years, noting that he had already spent three years in 
prison. (AFP) 

The EU This Week: 

International Herald Tribune 

Significant events in the European Union this week: 

The European. Commission meets Tuesday in Strasbourg to 
approve its opinions- on the readiness of Central and East 
European countries to begin membership negotiations next 
• D # hll V year, as well as proposals for a new European Union budget 

[71 and a reform of the common agricultural policy beginning in 

the year 2000. 

.. - The three reports, which will set die shape of EU policies for 

v, the next decade, will be released and debated in the European 
1 Parliament on Wednesday. 


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From Paris to Milan, from New York 
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With additional reporting on 
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developments in the changing world 
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Every Tuesday in the International 
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manufacturing operations. 

Previous experience In Asia is required, as are 
experience with transportation or related equip- 
ment and a background in finance and/or manufac- 
turing. PC proficiency and proven financial plan- 
ning abilities also critical. Engineering experience 

Receive a competitive salary and excellent bene- 
fits including a superior profit sharing plan. For 
consideration, send resume to: DA Confidential 
Response Service, #81215, 526 Superior Ave. 
East, Suite 300, Cleveland, OH 44114. We value a 
diverse workforce. 



xJ'J'i “S VAi I.' *►<.£ 




Storm Kino School 

r £rc*int Shills 

To k rtdtc Juiurc J^chici'cmcnt 

<■ oi vr 1 30 Wars ol Q laliiy Edt iraiim 

❖ A? Jail. Co-Ed Collolt Prep environment 

❖ 6 to 'i Snu-hm/Teaciter Reno 

❖ loo . Acre Camp/ is 0\ i erlookmn The 

Historic Hui.ison River 
* Tuition .Assistance Available 
* Fall a Spring Admissions 

For Information, please call or write to: 
\t. Peter wicker, Assistant Headmaster 

Storm King School 

354- Mountain Road 
OamalkxvHufteon. NY 12S20 
Tet 914-334-9660 


VfMtot llntmiHi 



Wyoming, USA 

bBA, MBA, MS, PhD 

Business Administration • Computer Science 

Distance Learning I No classroom study i 
• Accredited • Licensed by State Dept, of Education 
• Member of several professional associations 
• Student Loans • Scholarships 
■ Also on-campus programs at Cheyenne.campus in USA. 
and at 22 affiliated centers in four continents 


EXrpi. HT797. I 204 Airport Park Hit) . Chevenne. W Y 8200 1 . USA 
Tel: + 1 507 634 1 440 - Fax: + 1 307 634 309 1 
Home page: http-V/w im . 

E -mail : preton <& 

135411! Lsysin Switzerland 

I;!: 4124 493^17 
inxr 4 ; 24 402 17£7 
email: hc-sta © worldcom .c ii 


Intonsrse end aemt-mtenaive 
general and Busimj Cwmea 
Far Aeur.3 

W- Group a r d Onval* Leuons 



instttutF rentals Riflra 
S Hue J»- n ea ’eoufi* 
To: 334 < 0! B6 29 M 
=o« xs* > k 9» nor 

■ m Bergerac & Biarritz. 
i|l L l Cows C. Oemenceau. 
T HT 55000 Bore)eau ' • Prance 
Td H31 5 5# 51 00 76 Fix Oil 5 »6 51 7*15 



Wednesday's Interim ark et 

for Biivin-v- Opp«rr1 unities. 
EValirhKcs. UinuiH-rriol Rid Lilalc. 
Ti'lniinimiuiintiiins. Vutumoiin- 
uuri Enli'riuinnirfii. 

Ti. w/riYliir iimfnrt Sarah %rrihiif 
■Mi+U 171 (20 032b 
or tax +11171 1200338 



ml naiH.wni M ,J,n ■ 

Fez Mstcns cj auras afcou trie cterrj- 
r rr d veir rssspapw. the status your 
s^senflon cr attd erlang a sUuath 
ttn ciease can iM ttilcemj numbsfs 
TJa FRE? ■ ftustna QKO UK Se*- 
atom 03)0 1'SJf France 060) 4J7a)r 
Germany OIX By tET 7BQC40 
Upemficurg MOO 2<0 j Netherlands 06 
0225155 Staten CO 7570 jj Siicer- 
bnd 155 5757 UK 0500 8953«. Bse- 
::tWft> t»33) 1 41^483: THE AMpU- 
CAS: USA {MH-fteei 1-810- 552 2531 
Elsewhere i-li 212 TiESM ASIA: 
Hong tong M“t tvtonm 325 
192? Japan iwMeei 0120 $£ 027 
Korea j672 BH4 Ualaysta Kl 7055 
Philippines 855 -*346 Smoarcre 225 
083* Taiwan 7753456 ThaltenB 277 

■m Buston i-s® 3Sim 





|S2*K a.i»J Psn*) 

2JS-W! cr. 

FROM. JUIT m 1997 

For mc«r C-Ji p»*asa .n^act 

PARIS Tet *33 (0)1 41 43 93 85 
or Far +33 (fljt 4t 43 S3 79 

E mail' cia&wTettcoir 

Legal Services 


CaS or Fa* rut S6&06J5. »We t=7F 
Beactl 8M 4137. Humngtcn ataC: CA 
53843 USA- e-rra?. - sws S ascam 

DIVORCE IH 1 DAY. Mo traje; V.'rre 
Ba» 377 Suajurr MA Cl~ LSA 7?" 
508-'443-S387- rjy 5-^-4J3-Ct£3 

Business Opportunities 


Vii mcr.t-ras :: teapj L’H 
al i3r,?r oSssore fZ^Srtr.s 
7a« ryrwv; -iw&jr 
Fot imumu’s ssr^ca :;ra“ 
EEsh Mapfty, EfKMf 
109. Loner Bagrat Street 
Dublin 2 Ireland 

Tet* S3 1 651SM F«l S!S33 
E-lfcfl. ntmfc^csum 
Web Pages: vrwn.',CSLcan 






* banking am thus services 


Please cmac Bat Ceiter. UD 


244)2 Bank d Arena Toner 
’■2 rtanstft Read. Ceorat Hang tong 
Teh 852 5220172 Far 8S2 521=399 
E-maif CCRAeOCRACO-Irtt 
Webpages- WWW0CRAC0M 


with correspondent relationship. 

Class A commezcial license. 
Immediate delivery. US 550,000. 

Nassau, Bahamas 
Ifel: f242) 394-7080 Far (242) 394-JOBZ 
Acum Wa-Nted Wcctjswtde 

OTFStORE CMPANES. For free bro- 
chure or aamce Tat London a iei 741 
1224 Fa*. 44 181 74S Sb5»S3» 

Business Travel 

IWBuslness Class F-equErt Tiavefcn 
Sfc/tede Ur to 50* i rf Reasons 
w rearttpns Imcerirt Canala Tel 

7-574-341-7227 Far 1-51 4-iJ 1-7? ,J? 
E-naii atMress ■nuenaieccisi n« 


Capital Available 

FhC:.= -A! All 71 r? C-fU 
?A,Y -4J *171 373 4=» 

Business Services 


5:nl Street ■ Mad Phew. F?r 7el»* 
Tft J4 J71 3? «*> Fa. 171 4.-P 7517 



A.I.H.C Group 
Audio-Video Products 

GOLDMUND seeks a new 


Experience required in implementing a Just-ln-Ume 
Production with MRPII process 
Experience in ISO Certification preferable 
Based in Geneva 

CV and application + Photo to 
Digital Audio Trading SA 
Human Resources Dept 
2, chemin de la Gravidre 
CH-1227 Geneva 

Will play ihe role as Executive Management and would be a 
pan of Management team. 

10 years practical hands experience in the workshops with 
excellent technical background, also experience in handling 
major tvoitehopv 

Should be well versed with various. skills of worieshops. 

I Mechanical. Denting & painting, heavy duty equipments etc.i 
Capable of managing three major workshops with space of 
50000 m2. 

Abie io set up workshop business plans and targets and 
capability to develop strategic work plan and action. 

Ability to train and select qualified candidates. 

Qualified candidates may send their CV. along with a 
recent photograph to:- 
Direclor of Administration 

P.O. Box - 51880. Riyadh 11553 
Fax (00966) 14640354. Internet www.sasco-SA.Com 


Oar chat, fe N Y.S E. nanaftctsitr. has teamed et to fiad n VWGM tednand Ftan 
Dirtsipfl. located oar a major Enropcac city. The company is a gtotal mpplia rf both 
liber boas mgs ao>) Blur bagste *arit«liq»^apptarioat.T1* position repots tfeeafy 
io the PitskJaa of iht para* Cotp. and is respaasihlr f® tbc performance of all opera- 
dons a/ the DMsiotL Qualified candidates should Imr a depee in Eqpaeen^j. MBA 

prctHTed. and must have hdd a Sartor Msbu podboo pitferaUj in the fltawtei iadnitry 

with PtL (esponsibilfcji A athsaritul ccmpenatkio package indutfieg base, bonus and 
significant Sttck OfOOOS will be provided. Ail tetocan wi and tax cqaaViacoa ucaea »oll 
he tupdled an a case by case hots. 

Far b confidential tpptesML coll or 6x testtne to Bob Shaniey, President 


MMM C— y«. 

2555 Central Parkway. Houston. TX 77092 
Pb: 680-9 132. Ew: (713) 680-1737 

Genera/ Positions Available 

General Positions Wanted 

'go drW ? I miahl be TOUR man. I 
you art tawig a defined longtime strate- 
gy tot ihe area. Swiss nrtonol + French 
passport. FH-Germa/tf graduate (pttof- 
ogi. Wito US expemnee tn Far-East In 
over 5 yts. Now based n China. Tiaas 
to boding toed sNesfseivice organization 
to Ml and support mac tines and sys- 
tems bom Western sntei kScae by 
lax io (8621 ) 6Z7B 9142. wiere/how' 
when. I would match you orjartsaiion, 
to get success tar tort TO/ anJ me. 


Lowest lnt’1 
Telephone Rales! 

CaS The USA From- 

sngle. US & German citizen, maior in 
French. Spamsli I Business Admin, is 
taafong la tranee-pragramme m US or 
Euope. Fax +49-6371-14377 

Seeks a comnana 2S yeas etpenance 
of 'mega' yactRs and European ship- 
yards with impeccable references. 
Tet?® *33(0)4 83121337 

FRENCH CAPTAJN 42 rears ota. My 0- 
cenced. 20 years wpenenca tnyacWng 
seeks Job. Corsact +33 (0)4 93450033 t 
HUHe +33 (fflfl 09 87 27 81 

stet <brds Rare tedquffliers 

IJ 1 atjtlMjii; mSi J k’sijaJii 

io oevetop relations with foreign meda 
Good writing sK Is in French and Enflish 
end protesona! expedence essara 
Short tarn 9 1 12 maths hem 15th SepL 
Send carer tetter + CV [ugentj to: 
MDU - 62. rue Kkcadet 
75016 PARS - (Rah ATTP) 

Educational Positions Amiable 


tor Business Pwpte. 

Dynamic, Frtentfiy Team, 
(mwaflw Trading Meffxris. 
Patt-Suxrts. Wortong Papas. 
Comptok daa LaoguBB(01| 45 81 53 56 

Executive Positions Available 

BUKUAL EXPERTS mated, Rixsfsd 
& experienced to finance! motets for 
partAuS-tfcna. satoied/^setance posflions 
as transistors or ettaors. Fax hi 
lesumatafciy reqabemarii to TBCTRAD 
<33 fl}14492S31fll T« *33 (0)14492931 1 

pagia m and 
^ts critical. Tbs IWW "j. 

dutfy fritt) the consany 1 ™ 

Sss leaders as wefl as wtorafl 
dbtnbuton and major aceowtnawrts. 

Ouafiflad appficarts wifi po*M« * 

mWmum “iJSSL®£SSS 

mafatina commairaWR 

C c wai tu mcjMone deyaa 

enca In retail advertsnvg, sales m 

promotion field as 

bowtedge ol Uie buBdtog itteadals 

Mushy os petered 

Please send or tax resume and salary 
expactatons to: 

Box 343 

haamadoral HenU Tiftwne 
880 TOW Aw, 1«h Fhor ' 
New York, NY .10OZ2 USA 

FAX: (419) 2464968 

Visi our homepage* 

to Affimaw AdionlEqtol 
OppmOrty Empfayer 

A new 779 Room 4 star dstto. teort r f . 
RecreaSoral lacMes ndude 3 swtnwing ;t- 

squash 4 pad* courts, pfcs sefmte 
fact! pies lor children steal ed on 
14^)00 sq. iter, cd lush giwmety an -- . ' 
SurteWng. | 

Dtactnr of Guest AcJhrfflee - \ 

Club Mod or amflar operation expert-' •} 
ence. ■ * 

Director ol Front Office Operations 
Ideal candBate shoMeJ possess property ■ / 
management software axperteica Ffleto. ► 
Systems a plus. Both require 4 to f - | 
years experience, oonvarsaffonaf Safer " M 
aid German, Fluency in Enafeh a must 
OSarmgflHcsBNBiniiei^DnpadegB.- ;* 

Fax resuiifl kr 


Leonardo 11. Ranted . . "x 

Senior Baotive Reouter * 

pl2) 448-3306 USA 

Emit execseanm«ptaHoceps.o»ii • .* 

Executives Available 

Bss&mBM h bustoess managenwiL 6 
yaare in USA and 10 years fn Italy il 
martefing sales and financial manage- 

TelJFax +39 735 50337 AE-mafi: 



Saudi Arabia 

SO 33 






Cal For AJ RNes 
25% Com miss i on 
Agents Wefcome! 


Tti 1 •407-777-4222 Fax. 1-407-777-6»1f 


is Calling! 

Join (he leader in 
ifie fast growing 
telecom industry 

■ Calling Centers 
' Pro-Paid Calling Cards 
* Resedas 

^* *1 L P* s^teWA sens 

Where Stewards are Set. net Mec 

Tel: 1^06599.1991 
Fax 1^06599.1981 

Eb* InfoetafibactocoiB 

Financial Services 



Vajure Cajslai Ftoce Avatife 
tar Gowmmeni Preiecis and 
Govemmert Compsies 
tfa as tor safe. 

Large PmpCB on Specriirj- 
Also. long Tern Ftaaxs ior 
large and Smd Compart 
No Bmrtssxm Uru Fjreteo 

Needed to ad as bason 
Please rtpiy to Engsh 

towstmem bankers 
16311 Ventin BM, 5ut» 999 
Enctoo. CMffomfe 91436 UiA 
Fax NO™ (8181 905-1696 
TlL: (816) 7B94422 
HgSand Sr assoc Dete OG Lelystad 

Real Estate 
for Sale 


Angwla. B W.I 3 V4 acres waierfroni, 
3.2 rrtUoe or exchange tar sralar ui 
Monaco, French flirtera or Parts. Tel. 
USA: 212-717-5360 

Rea} Estate 
for Rent 

Paris Area Purnfcftetf 

6th, EXQUISITE, outer 2 rooms. «fh 
[loor. srmny. teams, fireptoce. all amert- 
nes. jutiSed i^fier price. i- 47074631 


Wsa) accommodaiion- stuftrf bedrooms 
OugRy and service assuto 
Tei +33(0(1 43129800. Fax (0)14313608 


meriE. Frwn sfudios u * tatawns. Tet 
♦41 22 735 6320 Fax +41 22 736 2671 

Domestic Positions Available 

a itaman suoob at Otago b seeking 
bve-tti childcare lor 2 young chfictai. 
CafiA or Rata (847) #34618 or FAX 
!B47) 673-491B. 

Domestic Positions Wanted 

Curerety emptied n NY USA. inotong 
Io be retocaied. anywhere 15 years 
expewntx. merited no eftferen. Both 
Utogual SpanrivEngfeh. Reside mi- 
able woo request. Please caH. 

516-324-0795 or vmxmal' 516-356^569 
amat botetoiOOOCaaxom 

-Tf I'lFBMTJiivU MA # | 


thf. woku/s nun sew skater 


Place your Ad quiddy otcJ easily, contact your nearest IHT office or representative with vour text. You will be informed of the cost immediately, 
and once payment is mode your od will appear within 48 hours. All ma|ar Credit Cards Accepted 


PASS: [HQ] 181 A*» Charted#- 
Goufc. V3S2 1 Newly Cede» 

Ttt (011 41 43 93 85 
Fob. (0U41 43^370 
ANDORRA: Gvixto A Bcm 

BP 77UPF Andorra lo Vda 

PnncfdAtf ei Anknu 
T«l 867 81 3. Fac 867623 
EUROPE: FrwWvwosw 15. 
Tal (06 V) 9712500 
Fax. 106^1 07125020 
57 n* J 6 Cdym. 61060 Bfuuck 
Id (021344-3505.(02)30- 

hr (O2l34fr035J 
Sa - 

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Tel 3589 608 B28 
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lot 58315738 F<* 5462573 
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Bu,Jwfc3l E. 1051 HI 
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Tel (4^ « 91 3070 
Fa. (JD55V13072 

10«] 2776 Prxtdo 
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Oftee H -E. 789?6 
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SWTT2H1AND: MorAdWofe, 

PO Bo. 51 1. 
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Fat »2ll 728 3091 
TURKEY Saba Sand. Curdunyo 

4 Snwdag 80200 brtnU 
td (902)2) 730 5996/232 7150 
Fax (502123247 9315 
UNRED IONGOOM: 63 long Acre 
Td 01718364902 
Tdex 262009 Fa. 2X0338 


BAFIUUN: FaxAa flanogan tO S» 
10787. Maiama. Bahrain 
Id, Tar 59)734 
GRA&DoiBdcii.POB W. 

JftlOI. timed W An* 

Id 9^-95-586245 
Fa*. 072-05 535685 

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81)738 Arwncc. John 
Tel 62443:t TU. 22277 MICIO 
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Id. 071 836 4802 
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When It Comes to Integrating Europe , Guns Are Easier Than Butter 

w amnonty. tfe* 

poUeemen and former SOUS' 

i of war crimes. 

fitee documents and^aft ^ 

■■ Kovacevic has been 7 n J^ 
cell in The Hague au. 

e if cl! 

■nal for ihe former Y uet >» 

yerof Prijedor. ,lle 11 

’s enough to get a j 0 , of ^ 
□g in the it boots/' said a . " 

sroad «perience in Bos2 P< * 
xe with particular cause 10 ^ 
plamea. are Bosnian SeK 
i with the police — vvi,h br^ah! 
KKorts - who ft 

ndicted for \x ar crimes p 
sis because since eailv this H 
ibonai has begun issuing sAb 
meals, empowering peateketi* 

■ to plan and execute arrests ae£ 
pecting and rhu^ unguarded 
id criminals. 

he Stabilization Force warns - 
veils new momentum. howet* 
won go after others on the set 
51 as it went after Mr. Koiacet; -i . 
AT. Drljaca. the diplomat s* ' 
y. -“This is a step :n the nabti) 

L but it’s not enough " 
enumely dec-sive shin )n poin- 
ted. would require arresimc k 
thers on the secret indictment lr 
Iso well-known — and «g 
;d — figures or. the public list 4 
ed. ivilh photos. :n oni;e> ofs 
zatioG Force. the United Nan® 
her interna! ion?.! groups wotk 

ar rally way to re decisive u i 
e casualties. “ jr. official said 
ing in these iijLria •— men «udu 
aodzic and h:s vvariimc coe 
r. Genera] Rati;,- Mladic - 1 
vould email n aich risk 01 cs 

.50 far, the Ci Inter* administnnn 
military have beer, unwilluist 

Karadzic Ihe? :r> File, the Ro 
orbs’ capita.’. -urrounded b> ; 

00 well-armed ard* front t 

1 Police Bngade. >rcum> sown 

Mladic has spent most of ha i® 
e with bunkers In H.m Piwsal •••' 
ter* nonheus: of Sx -K v ° 

iui " 

k Euro Signal™ 

Juntinoed from Fuse 1 

will be bom weak 
s formal policy target <• 

^ c ri- b ^ ; 3K 

tiicatton. he saiu. j» rha ^ ^ 
mtral bank ^ 

ng monetary l£ L 

rrency status tor ^ 

weakness or the * * 

• notable late 'r;; * Turimey^ 

bank President H-n- ^ 

;ed Thurs^y ^^, 

xnQin strong 

ry union. . h . ,hde-^ 

resumed Frsday ^ 

nosiijens weu i e * iK 

By David E. Sanger 

Nen- Yuri Times S rn my 

WASHINGTON — The glow around 
the celebration of the expansion of 
NATO — with President Bill Clinton 
hailing a new Europe that is “undivided, 
democratic and at peace for the first time 
since the rise of the nation state” — 
lasted for about three days last week. 

Then, before the president boarded 
Air Force One bound for home, the 
carping began. The French said they 
wouldn't pay a centime to help integrate 
Poland, the Czech Republic and Hun- 
gary into the club. And others in Western 
Europe, while less adamant, made clear 
that they couldn't pay to defend the new 
NATO members at a time when their 
national deficits were already threaten- 
ing to delay or sink the introduction of a 
common European currency 18 months 
from now. 

The Eastern Europeans weren't all that 

ecstatic either. With NATO expansion 
underway, they have already returned to 
a more concrete and immediate concern: 
getting into the European Union. 

This week, the Union is expected to 
release a report calling for delay and 
caution before 10 countries now ap- 
plying to become new members are ad- 
mined. It’s one thing to pledge to defend 
the nations of Eastern Europe with 
blood, guts and missiles. But open mar- 
kets further to their goods and help sub- 
sidize their farm goods? Well, that’s 
serious business. 

‘ ‘Welcome to the new world.’ ’ one of 
President Clinton’s top economic ad- 
visers said. “It’s easier these days to get 
countries to agree to link their armies 
than it is to integrate their economies.” 

Of course, this was ail supposed to 
happen together. Security and prosperity 
are all of a piece, Mr. Clinton's aides 
have argued throughout the debates on 
the wisdom of NATO expansion. 

And up to a point, that is good logic. 
NATO membership carries with it an 
aura of stability, and so, faced with the 
choice of where to put their money, 
investors are now somewhat more likely 
to favor an auto plant in Poland or a 
software operation in Hungary. 

Earlier, the White House even en- 
listed its economic team to make the case 


for an expanded North Atlantic Treaty 
Organization. “Our strong economic re- 
lations with Europe could nor have 
evolved over the post 50 years if not for 
that continent’s security and stability,” 
Lawrence Summers, the deputy Treas- 
ury secretary, said in April. 

Just the expectation that the military 
alliance was starting to expand, he ar- 
gued, has helped ’’lock in Central 
Europe's practices of market democ- 
racy,” fueling Hungary’s privatization. 

Hoping to be part of a future round of 
expansion, he argued, Romania has 
opened itself to investment from die 
West and Estonia has lowered its pro- 
tectionist tariffs. Bulgaria dumped lead- 
ers “who had run the economy into die 
ground,” and the Bulgarians now say 
that new reforms are linked to their 
interest in joining NATO. 

But expanding NATO in times of 
peace has relatively little impact on the 
lives of ordinaiy citizens,, either among 
the old members or the new. True eco- 
nomic integration, however, carries with 
it big costs, thanks to Europe’s byzantine 
system of agricultural subsidies, which 
assures that farmers in all member states 
get the same guaranteed prices. 

That could mean major transfers of 
money from West to East. Western 
Europe is also balking because the new 
applicants would increase the popula- 
tion of the European Union by 30 per- 
cent. but expand its economic muscle by 

only about 4 percent — not exactly the 
kind of great addition China made on 
July 1 when it added a tiny bit of pop- 
ulation and got a world-beater of a busi- 
ness center in Hong Kong. 

The problem now is that the same 
three countries that were the first to join 
NATO are probably also the three in the 
best shape to join the European Union. 
Thai raises the specter of two Eu ropes — 
one protected and prosperous, one un- 
protected and struggling. 

“The way these things work in real 
life is that you have to do your security 
relationships and economic relation- 
ships in tandem,” said Robert Zoellick, 
a former senior official in the Bush ad- 
ministration and a supporter of NATO 
expansion. “But you also want to be 
careful not to create huge imbalances” 
that affect stability, he said. 

What is happening in Europe right 
now — and to some degree around the 
world — is that military and economic 

alliances are being traded off, so that no 
■one feels completely left out. 

To make ihe Russians less grumpy, 
the Clinton administration granted them 
almost full membership in the Group of 
Seven industrialized nations, even 
though they are hardly an economic su- 
perpower these days. Washington also 
promised to get Moscow into the World 
Trade Organization — the club of trad- 
ing nations — by the end of 1998. 

Mr. Clinton made the commitment de- 
spite warnings from some members of his 
economic team that Russia’s legal sys- 
tem. trading regime and protectionist 
policies could not be revamped that fast. 

And if the rules are bent for Russia, 
what about China? It is also applying to 
the World Trade Organization, but is 
balking at the strict requirements. 

“The Cold War had one major thing 
going for it,” one of Mr. Clinton’s cab- 
inet members mused recendy. “Sim- 

Albright Affirms 
Stand on NATO 

Alliance Open to Balts , She Says 


ST. PETERSBURG — Secretary of State Madeleine 
Albright told Russians firmly Sunday that the Baltic states 
of Estonia, Latvia and Lithuania were eligible to join 
NATO, despite Moscow’s fierce opposition. 

“We have said ail along that NATO is open to all 
democratic market systems in Europe.” Mrs. Albright 
replied when asked in a Russian television interview wheth- 
er the three former Soviet republics could become members 
of the alliance. 

“All those kind of countries are eligible,” she said. 4 ‘It 
doesn't matter where a country is on the map, they are 
eligible for membership in NATO.” 

Mrs. Albright arrived in Sl Petersburg, Russia’s second 
largest city, on Saturday as part of a swing through Eastern 
Europe to explain pobey on expansion of the Western 
military alliance 

She met Baltic foreign ministers Sunday in Vilnius, the 
Lithuanian capital. 

She assured the three nations that they were not per- 
manently excluded from membership in die alliance, even 
though the summit meeting in Madrid last week neither 
invited them to join nor identified diem as candidates for the 
next round of enlargement. 

At die meeting. NATO invited the Czech Republic, 
Hungary and Poland to begin accession talks to become the 
first new members of the Atlantic alliance since the Cold 
War ended. 

- The Baltic states, independent between the two world 
wars, were incorporated into the Soviet Union early in 
World War Q, occupied by the Germans, and then re- 
incorporated into the Soviet Union. They gained inde- 
pendence in 1991. 

Still fearful for their freedom, die three countries are 
eager to gain the protection of NATO membership. 

But Russia, which has grudgingly accepted the ex- 
pansion of the alliance into Central Europe, has said it may 
tear up a recently signed charter of cooperation with NATO 
-if former Soviet republics were admitted to die alliance. 

■ Bulgaria Vows Reform for NATO Entry 

The president of Bulgaria, Petar Stoyanov, pledged 
• Sunday to make broad reforms to gain entry to NATO and 
1 he told Defense Secretary William Cohen of the United 
States that his former Soviet bloc country had no nostalgia 

The Mystery of Okinawa’s Royal Crown 

Is Treasure Taken in World War II Hidden in a Suburb of Boston? 

IHuln V Una*/ IW 

Mrs. Albright posing Sunday for a Russian artist 

for Russia, Agence France-Presse reported from Sofia. 

Bulgaria hopes to win entry into the North Atlantic 
Treaty Organization during the alliance’s second round of 
eastward expansion. 

Mr. Stoyanov told Mr. Cohen thar Bulgaria could be a 
bridge between Russia and the other European allies, a 
press secretary in Bulgaria's capital said after the meet- 

Bulgaria elected a pro- Western government in April and 
has embarked mi free- market reforms to reverse years of 
economic decline under the Communists and then the 

The new government plans to bring the military under 
civilian control and to slash the 96,000-raember array by 
nearly half within a year. 

“Bulgaria intends to become a member of NATO, and 
thus make its relationship with Russia very clear,” the press 
spokesman said. 

By William H. Honan 

No* 1 York Times Sen-ire 

SCITUATE, Massachusetts — The 
ancient royal crown of Okinawa — a silk 
helmet-shaped headdress studded with 
gold, jade, pearls and precious stones 
that is one of the most important national 
treasures stolen in World War II and still 
missing — may be hidden in this weli- 
s crubbed suburb of Boston. 

So thinks Shizuo Kishaba, an Oki- 
nawan specialist in the recovery of lost 
cultural property who was scheduled to 
travel to the United States on Sunday to 
search for the crown. 

So thinks Major General James Day, a 
retired Marine Cores general who fought 
in the Battle of Okinawa as a young 
corporal in 1945 and has been active in 
repatriating objects to Okinawa. 

And so thinks Bokei Maehira, the last 
living Okinawan to have seen the crown 
when he helped his fellow stewards hide 
it from the invading U.S. forces in the 
final weeks of World War H. 

The crown, Mr. Maehira said, was 
hidden along with a sacred set of ancient 
books called the “O-Moro soshi,” and 
because the sacred books turned np in 
Scituate in 1953, the present-day crown 
hunters say it is reasonable to assume 
that the crown has to be here, as welL 

Far more skeptical, even dismissive, 
are descendants of Commander Carl 
SterafelL a U.S. intelligence officer in 
the war who in 1953 yielded a hoard of 
stolen treasures, including the “O-Mono 
soshi,” to the U-S. govemmenL 

The commander’s son, Robert Stem- 
felt of Scituate, denies that his father 
ever possessed the crown and insists that 
the commander voluntarily surrendered 
the war booty he “.brought home from 

Robert Sterafelt’s daughter, Patty 
McKittrick, who was entrusted with die 
commander's papers shortly before his 
death in 1976, said she thought that her 

grandfather would have mentioned the 
crown to her if he bad had it 

But she also said that at family gath- 
erings she and her cousin had conjec- 
tured that ber grandfather could have 
concealed the crown from customs 
agents in “a hollow wall behind his 

Richard Kisker, who bought the house 
at 87 Grove SL from the Stemfelts in the 
1950s, said he knew of no “secret 
cubbyholes” where the crown could be 

In 1953, on the centennial of Com- 
modore Matthew Perry’s visit to Oki- 
nawa, the treasures recovered from 
Commander Stemfelt were presented to 
the government of Okinawa with great 
ceremony by the U.S. State Department. 
Neither Commander Stemfelt's name 
not the way in which the objects came 
into American hands was revealed. 

With the Korean War raging, the 
United Stales needed Okinawa as a stra- 
tegic base and was struggling to win 

favor on the island and placate dem- 
onstrators opposed to the U.S. occu- 
pation. The U.S. government ended its 
occupation in 1972 and instead began 
leasing bases there. 

General Day, who returned to Oki- 
nawa in 1984 as commander of Marine 
Corps bases in the Far East, with his 
headquarters in Okinawa, said that al- 
though he was unfamiliar with the name 
Stemfelt. he had learned that the crown 
and other royal objects had been stolen 
by an American and that some were 
returned in 1953. 

The crown, parts of which may be 
1,000 years old. has deep meaning in 
Okinawa, the poorest of Japan's 47 pre- 
fectures and one that suffered almost 
total devastation in the last and one of the 
bloodiest infantry clashes of World War 
n. The headdress belonged to the Ry- 
ukyu dynasty, which ruled the island 
kingdom for many centuries until 1879, 
when Okinawa was annexed by the Jap- 
anese empire. 

Chirac Gives Pledge to Military 


PARIS — President Jacques Chirac 
said Sunday he would make sure that 
the armed forces, worried about pos- 
sible budget cuts by the new leftist 
govemmenL received the resources 
they needed. 

The conservative president, who is 
sharing power with a Socialist-led 
cabinet, said at a Defense Ministry 
reception on the eve of the Bastille 
Day military parade, “As head of the 
armed forces, 1 will take care that our 
forces continue to have the necessary 
resources both for their renovation 
and to maintain their capabilities and 
their training.” 

Mr. Chirac, who introduced a major 
shift from conscription to all-profes- 

sional armed forces last year, said that 
together with the government, he 
would review what objectives had 
been met after the first year of a 1 996 
six-year military planning law. 

Under the constitution, the pres- 
ident is commander in chief but has no 
control over the military budget, 
which is proposed by the government 
and enacted by Parliament. The cen- 
ter-right government that was de- 
feated in the legislative elections last 
month had pledged to keep military 
spending level for five years. 

Senior array officers have been 
worried that the new defense minister, 
Alain Richard, a Socialist with an eye 
on budget matters, would cut military 

WINE: Family Feuding and Corporate Raiding Sour the Outlook at Chateau d’Yquem RUSSIA: Gamble to End Housing Subsidies 

Continued from Page 1 

had taken over Chateau d’Yquem by 
buying a 55 percent stake for about $100 
million. The fact that Alexandre de Lur 
Saluces was in Singapore -when he 
learned of tins tended to further en- 
venom a situation already fraught with 

The basis of Mr. Arnault’s case is an 

alliance with disenchanted members of Much smaller 

The battle now joined is to be played 
out in at least a dozen lawsuits in the 
French courts. Pending theii outcome, 
the sale of Yquem has been frozen. 

The roots of the dispute tie in a will 
drawn up Jan. 20, 1925, by Bertrand de 
Lur Saluces. the unmarried uncle of Eu- 
gene and Alexandre. This will named 
Eugene, then aged 3, as sole heir to 
Bertrand's 47 percent stake in Yquem. 

positions » 
mark? tor 


the Lur Saluces family. Among those 
who have opted to sell shares to the 
luxury-goods conglomerate are Alex- 
andre de Lor Sal nee’s older brother, 
Eugene, more than 40 of Alexandre's 
other relatives and even two of his three 

| Their decision was apparently promp- 
ted by dissatisfaction with the count’s 
ajanagemenc The count has responded 
by arguing that Eugene’s large and de- 
cisive stake could not legally be solcL 

1 Alexandre’s nephew, Bertrand 
Haioguerlot, a financier at Worms & 

Id mgs already had 

been split among other family mem- 

In the last year of his life, Bertrand de 
Lur Saluces worked with Alexandre and 
mentioned in at least one letter that he 
intended to make him his heir. But when 
he died, abruptly of a heart attack, the 
only will found was that of 1925, leaving 
Yquem and other properties to Eugene. 

Nine days after their uncle’s death, on 
Dec. 28, 1968, the two brothers. Al- 
exandre and Eugene, drew up a secret 
agreement on which the fate of Yquem 
now appears to hinge. They agreed to set 
uo a jointly owned company, with each 

lows the mar*- ■ - ■ f font*' 
Bundesbank s 

said rT:’ ran#' 

« Bank . Monetao >> 
mod w «upr° n ‘’'“r-snjiR#^ 
cn German r " ’ ir ts. 

, leggy ^ JJ 

idesbynk wa> ^ ■ . ib dc & 

e current > lflt . 

raid move 'T* 

much German. ^ 

biter ^ 

1 .7770 DM. an-- juyL, 

« “ft -S&j ’■*’ : 

ii will • , pH s**' 1 ■ a* 

bond marki.*- ^ ,,*1 , u <. 

rtowed at in ^ 

point-*- :S> ' ■ 

Thai » J* .Vii ccPltf. 

Cjompagnie in Paris, said that tiis uncle up a jointly owned company, with each 
had “made life hell for all shareholders” brother holding 50 percent, to control 
a£d that “that is why we finally decided their uncle’s properties, including Chat- 

to sell to LVMH.” He added that a 
meeting last month with his uncle de- 
generated quickly, as insults and even 
p [inches were thrown. 

eau d’Yquem. However, this company 
was never established. 

not visited. Yquem and has entrusted the 
management of the chateau to his broth- 
er — a job that Alexandre has performed 
with what is widely seen as a rigor that 
has preserved, even enhanced, Yquem’s 
quality. But Alexandre’s ownership 
seems likely to face tough scrutiny in the 
French courts. 

In one of the lawsuits, Alexandre ar- 
gues that the mental “weakness”- of 
Eugene, now 75, has been manipulated. 
Eugene de Lur Saluces, who declined to 
be interviewed, has brought a counter- 
suit over this accusation of mental in- 

Amid tire vituperation, this much is 
clear Last year. Mr. Hainguerlot per- 
suaded other minority family sharehold- 
ers to sell their 37 percent stake to 
LVMH. Alexandre’s domination of a 
limited partnership set up, under dis- 
puted circumstances, in 1992 to run 
Yquem appears to have constituted the 
last straw. 

Mr. Hainguerlot then went to see Eu- 
gene who, also unhappy and living in 
relative squalor, eventually agreed to 
sell enough of his dominant 47 percent 
share to give LVMH more than 50 per- 
cent. Overall. LVMH valued Yquem at 


Since 1 968, Eugene, who has devoted close to $200 million, 
bis life mainly to charitable work, has “Mr. Arnault is 


Hainguerlots to get rid of me,” Alex- 
andre said. “If be gets hold of this chat- 
eau, he will install his fashion models 
here and start producing a perfume 
called Yquem!” 

Weary, Alexandre de Lur Saluces 
rose from the terrace overlooking the 
vines he loves and the Garonne. Then he 
gazed up at the old tower with its im- 
mobile clock. “I really must get that 
clock to work,” he muttered. “It has 
been stopped for much too long.” 

ALASKA: A Huge Reserve of Oil vs. Pristine Nature and a Traditional Way of Life 

! Continued from Page 1 

.Vnfcw sensitivities on their parr — would 
fallow them to drill in die reserve without 
impeding the Eskimos’ hunting or caus- 
ing serious damage to the environment. 

! On the oil companies’ side was Tony 

ing into the Arctic Ocean, should remain 

The two areas “deserve permanent 
protection and should never be leased,” 

Federal officials say that by using the up and role 
word “reserve,” Congress did not seem scared of th 
to mean that the oil should stay in the have on the 
ground as long as possible. And they “I under? 

said Pamela Miller, a consultant for emphasize the difference between pro- 

Trustees for Alaska, an environmental 
law firm that is coordinating some of the 

Knowles, die gung-ho, pro-development lobbying over the reserve, 
gbvemor of this gung-ho, prp-develop- In their fighL environn 

posals to drill in land meant as a wildlife 
refuge versus land set aside specifically 
for oiL 

gbvemor of this gung-ho, prp-develop- 
nfent state. With new techniques that 
allow drilling from much smaller in- 
stallations and less road-building, Gov- 
ernor Knowles said that in the reserve, 
“Wecan prove: il can bedonerighn” 

‘ Mr. Babbitt, who is one of the most 
environmentally conscious interior sec- 
retaries ever, is carefully noncommittal. 

In their fighL environmental groups 
will be somewhat hamstrung by their 
own arguments in the fierce political 

up and told Mr. Babbitt that she was 
scared of the effects that drilling would 
have on the people of the reserve. 

“1 understana it would be big revenue 
and more tax dollars, but are we going to 
pay the price?” she asked. “We are the 
people of the land and we’ll continue to 
be die people of the land. The oil will 

“For better or worse, this is in the come and go and we’ll still be here. 

National Petroleum Reserve, aid that 
changes the playing field.” said De- 

battles of recent years over the Arctic borah Williams, Mr. Babbitt’s repre- 
National Wildlife Refuge, a similarly sentative in Alaska. 

sentative in Alaska. 

“We can prove: it can be donerighc”' ‘ vast and environmentally even more It is a playing field almost as tricky to 
Mr. Babbitt, who is one' of the most sensitive stretch on the Arctic Ocean to navigate as. the tundra tussocks that 
environmentally conscious interior sec- the reserve's east- hikers here feel as if they are 

retaries ever, is carefully noncommittal. To block oil companies’ ambttions to walking on a field of floating, grass- 
After more study and a broad process of drill there — ambitions now siymi«J by covered t»sketballs. 
public comment, he is expected to de- the Clinton administration — - environ- In his decision, Mr. Babbitt must not 
cide in mid-1998' whether to allow oil mentalisis have often contended that the only balance the money and jobs that oil 

mid- 1998' whether to allow oil 

niont« ]n p;i£ : Already queuing up with their com- 

tfanlte'- , j r "f menb arc environmental groups, includ- 

aovcfnntfh. ■ ing the Sierra Club and the Audubon 

* u .i^' Society-. They particularly want to pro- 

) til M-*> Vjf .. n j:ji> & tect two areas within the reserve, con- 

irro» tiS ? v ‘ %f h ■ tending that the coastal Teshekpuk Lake 

<lt 7^. in 'JV.Jl? • is u crucial habitat for migratory wa- 
bi’t* j,jl^ terfowl and that the delta of the Colville 

* viciJ or: ji 1 ' R iver, the largest American- river flow- 

refuge shoo kibe spared because there is 
less sensitive land nearby that is already 
designated an oil reserve. 

So that now, though some environ- 
mental groups would like to sec the dc 
facto wilderness of the reserve turned 
into an official one, they are mainly 
arguing that America has no pressing 
need for the reserve’s oil and should 
leave it jusi that* — a reserve. 

only balance the money and jobs that oil 
development would bring against its 
possible environmental damage. He 
must also reconcile the -ambivalence 
among the constituency he most sought 
out on his trip: the 6,000 or so residents 
of the four villages on the reserve, most 
of them Alaska natives. 

At a town meeting one evening in 
Nuiqsut, a village of about 450 on the 
Colville River. Bernice Kaigdak, stood 

Mr. Babbitt’s decision must also take 
into account the critical unknown: just 
how much oil is there? 

No one is predicting the reserve could 
turn into another Prudhoe Bay, the su- 
pergiant oil field that has led the North 
Slope's production of more than 10 bil- 
lion barrels. Rather, Airp Alaska Inc., 
the oil company that seems most keen on 
the reserve, says its interest stems from 
improved technology that allows it to 
make a profit even on relatively small 
pools of oil — fix example, 100 million 

Alaska state geologists estimate that 
the reserve could hold 400 million to 
more than a billion barrels of oil. 

Mr. Babbitt, after several days of cris- 
scrossing the reserve, would say only, 
“I’m not committed to any specific de- 

Continued from Page 1 

ing and utility costs more as a sign of 
government indifference to them than as 
an act of reform. 

Like many of her neighbors in Mos- 
cow, Tanya Yesin has nothing but con- 
tempt for the economic reformers who 
say Russian families are not paying their 
fair share. 

The three-room apartment she shares 
with ber husband and two daughters in a 
working-class area of southern Moscow 
is definitely on the cozy side. But it is 
brighL weU heated, close to transpor- 
tation — and cheap. 

Three-room apartments in her build- 
ing ran about 140,000 rubles ($24) a 
month; and as a military officer, her 
husband receives a 50 percent discount. 

Including utilities, tne family spends 
only 6 percent of its income on shelter. 
But Mrs. Yesin has tittle patience for Mr. 
Yeltsin's plan. 

“It is absolutely absurd.” she said. 
“They have to raise our wages and sal- 
aries if they want us to pay more.” 

The stolid tracts of housing that dom- 
inate Moscow’s skyline provide a grim 
reminder of Russia’s long tradition of 
government-subsidized housing. 

Faced with chronic housing shortages 
and an increasingly urbanized popula- 
tion, the Soviet Union erected buildings 
with its trademark disregard for indi- 
viduality and taste. Housing was cheap; 
foe average Soviet citizen paid a mere 8 
percent to lOpercentofhisorberincome 
For housing and “communal services” 
such as utilities and garbage removal. 

By and large, people got what thev paid 
for. Apartments were cramped. Soviet 
officials measured comfort by the square 
meter, and privacy was often a luxury. 

Several generations of families were 
often compelled to live together as they 
worked their way up long waiting lists for 
apartments to become available. Unhappy 
couples put off divorce rather than join the 
vain search for new living quarters. 

Enrranceways, courtyards and other 
public spaces were dirty, dark and neg- 
lected, reflecting the ethic that what be- 
longs to everybody belongs to nobody. 

Housing maintenance required an out- 
sized bureaucracy. 

When Mikhail Gorbachev became the 
Soviet leader in 1985, Stanislav Shalal- 
in, the pro-reform economist, described 
housing as the least efficient sector of the 

The collapse of the Soviet Union in 
1991 transformed much of Russian life. 
But the system of government-suppor- 
ted housing has lumbered on largely 
intact. About 40 percent of apartments 
throughout Russia are still owned by 
municipal governments or by former 
Soviet enterprises that provide housing 
for their workers. 

Their tenants pay a fraction of the 
actual rent. They cling to the apartments 
even after they have moved our to get 
married or to retire in their countryside 
dacha, passing them on to their children 
like rare heirlooms or subletting them to 
wealthier Russians or foreign executives 
at enormous mark-ups. 

Russians who privatized their apart- 
ments captured about 25 percent of the 
housing. In general, they paid a token fee 
for processing the paperwork, providing 
the state with little profit for general 
maintenance or major repairs on its own 

A further 1 0 percent of the apartments 
are cooperatives, in which each tenant is 
responsible for his or her own unit and 
ownership of the common space is 

The final 25 percent of housing is a 
result of private construction and largely 
consists of wooden houses in the coun- 

in general, Russians pay about 6 per- 
cent of their income for housing and 
utilities, according to the Urban "insti- 
tute. an American public-policy group 
that is advising the Russian government 
on housing reform. 

The subsidy money is not paid directly 
to the tenants. Instead, it is paid to mu- 
nicipal or private landlords and utility 
companies. The overall figures are stag- 
gering. Russia spends more than ^ per- 
cent of its gross domestic product on 
housing and utility subsidies, far more 
than it spends on its bedraggled military. 

Egypt Opposes ‘Eternal’ Sanctions on Libya 

Agetux Fnimv-Presse 

CAIRO — Egypt said Sunday the sys- 
tem of automatically renewing UN sanc- 
tions on Libya must be reconsidered after 
last week's extension of the five-year-old 
air embargo against Tripoli. 

The UN Security Council's sanctions 
renewal system should be changed so 
that the sanctions “don't become etern- 

al." said Saved Qassem Musri. assistant 
to the minister of foreign affairs for 
international cooperation. 

Libya has been under an air and arms 
emhiirgo since March 1992 for refusing 
to extradite to ihe United Slates or Bri- 
tain two of its citizens wanted for in- 
volvement in the 1988 bombing of a Fan 
Am flight over LtK'kerbic. Scotland. 

MONDAY JULY 14, 1997 





Congo’s Responsibility 

Genuflecting at the Altar of Market Economics 

It turns out that the rebellion against 
Mobutu Sese Seko’s 32-year rule in 
Zaire, rather than being entirely home- 
grown, was carried off with Rwanda’s 
direction and participation, according 
to Rwanda's defense minister, Paul 
Kagame. Not pleased, the now- 
Congo’s leader, Laurent Kabila, 
quickly denied the claim. It may yet 
come down to a question, of the par- 
ticular size and shape of outsiders’ 
roles. But meanwhile the Kabila 
group's politically important claim to 
self-liberation has been dulled. 

The new account also bears on the 
Wiling — perhaps the continued killing 
— of Rwandan Hutu refugees in east- 
ern Congo. Rwandan soldiers, mostly 
from the rival Tutsi ethnic group, have 
been implicated in the slaughter. To die 
new Congo government, however, the 
Hum are much less unoffending vic- 
tims worthy of international solicitude 
than themselves perpetrators of the ter- 
rible mid- ’90s genocide in Rwanda. 
Setting what many observers believe to 
be a troubling precedent, Congo has 
intervened to influence the makeup 
and mission of a UN team sent to 
investigate these events. However the 
blame is eventually assessed, the pri- 
ority must be to stop the killing. The 
first responsibility is Congo’s. 

You begin to understand why the 

United States has been having diffi- 
culty putting together a new policy 
toward Congo. Marshal Mobutu’s de- 
parture into exile goes largely un- 
mourued in Africa. But Mr. Kabila’s 
arrival at power in Kinshasa, however 
he got there, makes him responsible for 
quickly restoring a fair measure of 
order and then for rebuilding the coun- 
try practically from scratch. A two- 
year delay before elections, as Mr. 
Kabila offers, is not out of line with the 
limitations imposed by the lunar qual- 
ity of the post-Mobutu political land- 
scape. Bur long before that, the new 
le ader must open up the political arena 
to the Mobutu opposition and others 
not subject to his alliance’s discipline. 
He must get a start on laying down the 
foundations of a rule of law — a burden 
Marshal Mobutu largely evaded — and 
on stirring national economic growth. 

The United States is putting up an 
ini rial aid allotment of $10 million, 
meant to be disbursed through the non- 
governmental organizations that are 
the American government’s indispens- 
able channels of foreign assistance. 
This is peanuts, but perhaps it serves 
die purpose of demonstrating that more 
is to come if the new Congo gov- 
ernment can get on with meeting its 
formidable challenges. 


Cutting Off Cambodia 

Following Japan's lead, the United 
States has suspended aid to Cambodia 
in the wake of last week's coup d’£ tat 
there. This is a difficult but sound de- 
cision. Difficult because the aid cutoff 
will hurt ordinary people; sound be- 
cause the power-grabbing dictator Hun 
Sen must be given to understand that 
other nations will not resume business 
as usual with him until Cambodia's 
Heckling democracy is restored. 

Mr. Hun Sen, officially Cambodia’s 
second prime minister, ousted First 
Prime Minister Prince Norodom Ranar- 
iddh in a violent coup die weekend of 
July 5-6. The prince s party was die 
leading vote-getter in 1993 elections, 
and he is the only legitimate leader of 
the democratically elected government. 
Now Prince Ranariddh is in the United 
States, drumming up support, while Mr. 
Hun Sen conducts S talinis t purges of 
the prince's supporters in- Cambodia. 
Several are reported to have been ex- 
ecuted without trial, while hundreds 
more are being herded into detention 
centers. The UN’s special represen- 
tative, Thomas Hammarberg, con- 
demned “the atmosphere of fear and 
intimidation which now prevails." 

Cambodia’s neighbors in die As- 
sociation of South East Asian Nations, 

or ASEAN, also have acted, suspend- 
ing their invitation to Cambodia to join 
their organization arid sending a dip- 
lomatic mission to mediate if possible. 
Their goals, at a minimum, should in- 
clude those outlined by the UN’s Mr. 
Hammarberg: the return of the first 
prime minister to office with guar- 
anteed security; the safety of all politi- 
cians, human rights workers and jour- 
nalists and the release of all who have 
been detained; no expulsions from Par- 
liament Otherwise, elections sched- 
uled for next spring, even if conducted, 
will be a sham. 

Will Mr. Hun Sen respond posi- 
tively to the ASEAN mission? More 
likely is drat the United States and 
ASEAN must be prepared to lead a 
longer-term campaign to isolate his 
regime until democracy is respected. 
That will require a nuanced policy 
restoring die small amounts of aid that 
help human rights organizations di- 
rectly while cutting off die large sums 
that the International Monetary Bund 
and other multilateral organizations 
provide. Such aid now supports nearly 
half of Cambodia's budget — a lever 
the international community may have 
to use. 


Turkey and the Press 

Turkey has the shameful distinction 
of imprisoning more journalists than 
any country in die world. The New 
York-based Committee to Protect Jour- 
nalists has compiled a list of 78 re- 
porters. writers and editors now in jail, 
and the Turkish Press Council reckons 
the total may be twice as high. Now that 
a new government has assumed power, 
it has a timely opportunity to open 
those prison doors. Doing so would 
lessen a stain on Turkey’s reputation 
and enhance the democratic credentials 
of Prime Minister Mesut Yilmaz's sec- 
ularist center-right coalition. 

Most of the journalists in prison are 
charged with disseminating "separat- 
ist propaganda" or with being mem- 
bets or proscribed pro-Kurdish polit- 
ical groups. In fact, under Turkey’s 
broad anti-terrorism law, journalism 
itself is criminalized and reporters face 
prison for doing their job. An em- 
blematic case is that of Ocak Isik Yurt- 
cu, a prominent writer and former 
newspaper editor who has served 3 
years of a 15-year sentence. Mr. Yurt- 
cu’s offense was ro publish articles 
about the Turkish Army’s scorched- 
earth campaign against Kordish insur- 
gents in southeastern Turkey. 

Mr. Yurtcu's plight, along with 
scores of other cases, will be taken up 
this summer by a visiting delegation of 
journalists, among them Terry Ander- 
son and Peter Arnett, at the request of 
Turkish press organizations. By re- 
sponding favorably, Mr. Yiimaz 
would signal a halt to Tuzkey’s descent 
into repression. He would begin to 
answer critics, especially in the Euro- 
pean Union, of Turkey's dismal human 
rights record, and would set a different 
example from his immediate secular 
and Islamic predecessors. 

This is more titan a press issue. For 
nearly a decade Turkey has retied 
primarily on force to counter Kurdish 
terrorists, without opening a parallel 
political track for a huge, aggrieved 
ethnic minority. Press freedom is 
among the casualties of a failed 
strategy, imposed by the military, 
which Mr. Yiimaz cannot change 
overnight. Yet it is within his power to 
release jailed journalists and decrim- 
inalize free speech, an essential pre- 
condition for an end to Turkey's do- 
mestic turmoil. Turkey’s friends hope 
he will not let this moment pass. 


Other Comment 

Socialists in Glass Houses 

In a front-page article in Vietnam 
News, the official English-language 
daily, the paper reported on a man- 
agement workshop m Hanoi where Vi- 
etnamese officials blasted foreign in- 
vestors for violations of local labor 
laws. Bat before pointing the finger at 
foreign investors, it is at least worth 
asking why, with all these abuses, there 
is no shortage of workers lined up 
outside the gates of foreign enterprises 
hoping for a job. One key indicator 
may be the average annual per capita 
income, about $200. The desperation 
that results should be placed squarely 
where it belongs: on a Communist 
Party whose decades-long experiment 
with socialism took what should be one 
of the wealthiest countries in Southeast 
Asia and made it one of the poorest 
— Far Eastern Economic Review 
( Hong Kong). 



Co-Chaimtet , t 

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P ARIS — Alan Greenspan, chair- 
man of the Federal Reserve, gave a 
striking talk to a Woodrow Wilson 
Scholars’ Center audience last month, 
describing the cultural factors at work 
in economic behavior, speaking in par- 
ticular of their influence on the Russian 
economy since the Soviet system col- 

What was noteworthy about this to be human nature was not riahn-a nr all 
speech was that Mr. Greenspan found but culture. The dismantling of the cen- 
tne notion that cultural factors are an tral planning function in an economy 
important force in the economy a novel does not, as some had supposed, auto- 
idea. matically es tablis h” market capitalism. 

Mr. Greenspan is not a foolish man. It explains a lot about what has 

By William Pfaff only indissolubly interlinked but a fun- 

damental expression of human nature 

itseff. This is, of course, a version of the 

believed such a thing? Not many, I Liberal Illusion, even though so-called 
should think conservatives believe it — the illusion 

■Mr. Greenspan said that after 1989 he of mankind’s essential innocence and 
— or “we," as he put it — discovered natural virtue. . 
that “much of what we took for granted Sorely it should be self-evident that 

in our fee-market system and assumed culture has a deep influence on eco- 
to be human nature was not Datum at all, nomic conduct, , both in practical and 
but culture. The dismantling of the cen- intellectual ways. If there is no es- 
tral planning function in an economy tablished culture of law and obedience 
does not, as some had supposed, auto- to law, system of contracts, network of 
matically establish” market capitalism, conventional behavior concerning the 

and if this idea was a new idea to him, 
that surely is evidence of a huge and 
crucial professional deformation 
among Western economists, too often 
educated to ignore all but a narrow 
range of materially or mathematically 
defined factors in an economy's func- 

How many high policymakers in the 
West, and Western advisers to the Rus- 
sian and other ex-Communist govern- 
ments following 1989, have been the 
victims of the illusion that dismantling 
communism would "automatically es- 
tablish a free-market entrepreneurial 
system" — an idea in which Mr. 
Greenspan himself believed? 

In contrast one might ask how many 
ordinary businessmen who had dealt 
with the Soviet Union, or how many 
political specialists or journalists who 
actually knew the Soviet Union and 
how the Communist system func- 
tioned there over the previous 40 years, 

It explains a lot about what has conduct o: 
happened to die ex-Commnnist world phisticatec 
since 1989 that men and women with the ’‘auto mad 
influence of Mr. Greenspan, occnpying ket entrepi 
posts of great power, should have held ' Poland, 
so egregioasly naive, or historically and public havi 
culturally “deaf,” a belief as did Mr. from comi 
Greenspan. latively s 

It also demonstrates the . degree to commercu 
which the conception of market eco- ' ism was in 
nomics today has turned into an- ide- the 1940s. 
ology, which is to say into a belief knew how 
system detached from the empirical or In Russ: 
scientific observations with, which it modem e< 
originated, so as to become — to use the Petersburg 

definition of ideology put forward by 
Raymond Aron, Daniel Bell and others 
in me 1950s — a “secular religion.” 

It has become a political as well as an 
economic religion, the dominant one 
today in much of the industrial West. 
Certainly it is dominant in the United 
States, where both conservative .Re- 
publicans and Clinton liberals avow 
that markets and democracy are not 

conventional behavior concerning me 
conduct of business or history of so- 
phisticated commerce, there will be no 
’‘automatically established free- mar- 
ket entrepreneurial system." 

Poland, Hungary and the Czech Re- 
public have made successful transitions 
from communism because all were re- 
latively sophisticated industrial or 
commercial societies before commun- 
ism was imposed on them at the end of 
the 1940s. Freed of communism, they 
knew how to become capitalists again. 

In Russia, only the beginnings of a ' 
modem economy had existed in St. 
Petersburg' and Moscow when the 
Bolshevik revolution took place. 

That not only was 80 years ago, but 
those involved in that economy were 
mostly subsequently murdered. 

Russians for decades afterwards were 
taught that property is theft, capitalism 
is exploitation and individual wealth is 
not "earned" but stolen. This has had a ■ 
lasting influence on how people think 
today. It was natural thar Russian cap- 

italism after 1989 evolve^^ ; 

its new practitioners had been taught to 

believe it had to become. j. 

Before the Communists took power,. : *.gS 
much of Eastern Europe’s — as wella&- - -jfl 
China’s — commerce and industry- • gig 
rested on family alliances, patronage,. ■ gS 
government favoritism and cjientd-r; 
ism. This was the “oriental . ;|a 
mercial system of theO^manenmire, m 
as well as that of much of toe Fa East*:. vf| 
That is what it has tended to: become ■ ? Jjg 

a ®AU of this will change over time;bu£ • jjS 
not because human nature is spontan- 
eously capitalistic Cor "American. ; 
as Americans have always been inclined . « 
to assume). It will change because^. / 
external system with which it is Farced -. 
to interact will demand change. . '/ jBj 

Foreign business will demand en- : gag 
forceable contracts and transparent ft;.. | 

nancing and will resist doing business- •: « 
with mafia-controlled enterprises. For-.; 
eign topks and international institutions: 
will not finance unverifiable borrowers-; 
and will resist handling funds whose .; w 
origins are suspect An evolutionary ,; %a| 
change is under way that is also anv 
educational experience for the ex-Com- v 
munist societies. ■ 

It is an exercise in pragmatic change. 

It contrasts, obviously, with the Gam-. / • 
munist world's ideological beliefs of i a Es fe 
the past, bur also with the Western > 
inclination today to make market eco-V g» 
nomics a new secular religion! - J *• ' TOg. 

International Herald Tribune ■ _ '■ q gj * 

<£) Uv Angeles Times Syndicate. ’ t £|gv.: 

Apply the Lessons of Cambodia to Bosnia Before It’s Too Late; 

and Cambodia are a world 
apart, but unfortunately with 
much in common. The United 
States and others have spent bil- 
lions of dollars to bring peace 
and democracy to both small, 
war-ravaged countries — and in 
both there’s a strong possibility 
those efforts will fail 
The peace-building cam- 
paigns — by the United Nations 
in Cambodia, by NATO in the 
former Yugoslavia — have 
done much good, not least by 
simply enforcing an absence of 
war. But long-term benefits are 
threatened by recurring tempta- 
tions in die international re- 
sponse — to avoid the most 
difficult (but necessary) tasks, 
to claim success no matter what 
and to deal “realistically” with 
thugs and dictators. We used to 
blame those temptations on the 
Cold War (“He’s a dictator, but 
he’s our dictator"); they turn 
out to stem more from human 
nature than from the struggle 
against communism. In Cam- 
bodia, where Bolshevik-style 
purges have followed last 
week's coup d’tftat, it may be 
too late. Bosnia still has a 

The UN came to Cambodia 
after it had suffered through two 
decades of war and genocide at 
the hands of both native and 
outside aggressors. In 1993, 
20,000 UN troops enforced a 
peace and monitored elections! 
Ignoring expert opinion that de- 
mocracy was inappropriate for 
such an impoverished and tra- 
ditionally authoritarian nation, 
nine out of 10 eligible Cam- 
bodians voted — often risking 
their lives to do so. The liberal- 
royalist party of Prince Noro- 
dom Ranariddh won. 

The United Nations then 
made its first mistake. The Paris 
peace accords had called for the 

By Fred Hiatt 

disar ming of all Cambodian 
factions, but that was seen as too 
hard, and so the longtime dic- 
. tutor Hun Sen was allowed to 
retain his private army. His neo- 
Commumst party lost the elec- 
tion, but when he threatened to 
blow up the peace process, the 
United Nations caved in and 
allowed him to retain power as 
co-prime minis ter with the 
prince. Already, those nine in 
10 Cambodians were betrayed. 

That same year, most UN 
forces left, declaring a great vic- 
tory on their way out And for a 
time, tiie prospects seemed rea- 
sonable. A free press and hu- 
man rights groups flourished. 
International aid helped clear 
land mines and train judges. 

Yet — and here was the next 
mistake — the international 
community paid far too little at- 
tention to pos (election democ- 
racy-building. Few sought to 
safeguard the UN’s huge initial 
investment by insisting, as a con- 
dition of aid — which continued 
to pay half of Cambodia’s 
budget — that die nation hire 
independent judges, set up a su- 
preme court, create an impartial 
election commission. It was easi- 
er just to keep claiming success. 

Gradually, the facade of de- 
mocracy crumbled. Mr. Hun Sen 
re-established control through a 
classic Communist combination 
of political intrigue backed by 
thuggish intimidation and out- 
right violence. Journalists were 
gunned down, independent 
politicians were exiled or at- 
tacked with hand grenades. He 
labeled his enemies “worms" 
and, when France and the United 
States .let out a peep or two of 
protest, threatened to turn his 
thugs loose on their embassies. 

Even then, the peeps were few 
and far between. Last fall, on the 

Hiatt Even when Mr. Hun Sen used 

tanks finally to oust Prince 
fifth anniversary of the Paris Ranariddh die weekend of July 

peace accords, then-UN Secre- 
tary-General Boutros Boutros 
Ghali congratulated Mr. Hun 
Sen for his “statesmanship." 
Winston Lord, then U.S. assist- 
ant secretary of state, was still 
calling Cambodia “a model UN 
success story" in 1995, while 
his deputy reported that the 
concept of human rights “has 
permeated" Cambodia’s gov- 
ernment The current U.S. am- 
bassador to Cambodia, Kenneth 
Quinn, consistently rejected 

5-6, the Clinton administration 
hesitated to sever its access to the 
thug, balancing its criticism of 
him with admonitions to Prince 
Ranariddh and refusing to label 
Mr. Hun Sea’s coup a coup. 

All along, one argument for 
turning a blind eye to democ- 
racy's degradation was that 
“stability" would allow eco- 
nomic development, which 
would eventnaliy promote de- 
mocracy. Cambodia illustrated 
tiie bankruptcy of such logic. As 

congressional calls for a tougher ' both Prince Ranariddh and Mr. 

U.S. line on human rights. 

“This policy was and con- 
tinues to be absurd," W illiam 
Shawcross, the journalist and 
Cambodia expert, noted in the 
New York Review of Books 
nine months before Mr. Hun 
Sen's final coup. "Hun Sen, 
who lives in a heavily fortified 
stockade outside Phnom Penh, 
behaves like an increasingly 
dangerous psychotic. Washing- 
ton's belief that he will provide 
‘stability’ is foolish." 

Hun Sen became less and less 
accountable, the Cambodian 
economy became more and 
more corrupt The leaders sold 
off half of Cambodia's forests to 
Thai and other companies, 
pocketing most of the proceeds 
themselves. In afew more years. 

more accommodation : fo the.^-.l 
“reality” he seeks tomakqpaf 
maneni. It also argues for a haft^S; 
look at Bosnia, which could stiff: •■•(.??} 
go either way. '.! ! 

In Bosnia, too, peacekeepers 
have hesitated to do the narti^A , 
things — to enforce the Daytot^ Jprj 
peace accords by retunnrgf .JJF j 1 
refugees to their homes, arrest*;' 
ing war criminals, building: a j 
real democracy to challenge titep~:"' - i 
mafia power of wartime- thugs; j 

And no wonder — those 
are hard, and risky; with 
gress yapping at his heels, Pres-^ V . 
ident Bill Clinton might lovetoj/ 
declare victory, deal “realistic-: .^ 
ally’.’ with the ensconced thugsv> 
and bring home die troops.; 1 ‘ * 

Yet the hard tasks were writ?*..-..’ 
ten into the Dayton accords, just; 
as into the much-violated Paris:';:;' 

Thai and other companies, agreement, because everyone-. -, 
pocketing most of the proceeds understood peace would not ' -: , 
themselves. In a few more years, take root otherwise. Having : 
Cambodia could be a desert — tried and failed to ignore Bos- 
an impoverished desert with a . nia, and then having invested $7 . V; 
wealthy, drug-trafficking elite, billion there, the United States ::^ 
All this argues for a strong should give that investment at - 
international response to Mr. least a chance to pay off. 

Hun Sen now, rather than one The Washington Post. . . 

In the Balkans, NATO Must Go After the Masterminds 

D URING my time as high er. But NATO troops started, on to challenge Mr. Karadzi 
representative in Bosnia, I Thursday, by going after minor By design or by default, ti: 

repeatedly urged key govern- 
ments such as the United States 
and Britain to be ready to give 
their forces the orders needed to 
arrest those indicted for war 
crimes by The Hague tribunal. 
For these arrests to help the 
peace process, and not just cre- 
ate chaos, they had to be care- 
fully planned and orchestrated 
with political initiatives. 

That meant that the first tar- 
gets had to be the most impor- 
tant indicted war criminals, in- 
cluding Radovan Karadzic, the 
Bosnian- Serb leader, and Dario 
Kordic, the Bosn/an-Croat Jead- 

Thursday, by going after minor 
figures, llus served to give both 
men advance warning, making 
their arrests more difficult. 

I do not know what brought 
the NATO-led forces ro dis- 
count this advice and go for a 
half-baked operation, which 
turned into what at best looks 
like a half-success. 

There may have been other 
considerations of which I am 
unaware. But it appears that 
it was done without any co- 
ordination with those in Bos- 
nia. And it will probably dam- 
age those forces inside the Re- 
publika Srpska that haw started 

to challenge Mr. Karadzic. 

By design or by default, thfc** 
Dayton peace agreements have A 
entered a new phase. This phasaM* 
will require a far more coordin- ^V- 
ared effort from the political 1 .-, 
and military sides to prevail ''.; 
repeating the mistakes of: ^ 
Thursday's Prijedor operatitih^:];:; 
And this effort will not be cbnfc*; * 
pletedbyJune 1998. whenPfos^'i 
idem Bill Clinton has said that v,;; 
U.S. troops should leave. - "/S 
— Carl Bildt, a fanner '][ = V. 

Swedish prinie minister. and 

the former civilian ' '■ ■> - 
representative in Bosnia/ 
commenting in The New : .H i: 
York Wnes.' 

Take Chinese Chest-Beating on Taiwan With a Grain of Salt 

H ONG KONG — During 
the handover of Hong 
Kong to China, President Jiang 
Zemin asserted that the “one 
country, two systems" formula 
was a model for a "final solu- 
tion to the Taiwan question." 
The Chinese leader added that 
the prospect of “complete na- 
tional reunification now stands 
encouragingly in sight." 

Shortly afterwards. Hong 
Kong's chief executive, Tung 
Chee-hwa, met the top 
Taiwanese official responsible 
for relations with the mainland. 
The two agreed to set up a spe- 
cial liaison office between 
Hong Kong and Taiwan. 
Beijing immediately claimed 
this meeting was an internal 
matter and hence not one of the 
two areas — foreign affairs and 
defense — in which China's 
central authorities assume con- 
trol over Hong Kong. 

China's attitude toward 
Hong Kong-Taiwan affairs is a 
charade and its self-confidence 
about reunification with 
Taiwan is either pretense or per- 
ilous folly. With Mr. Jiang. 
Prime Minister Li Peng and 
Foreign Minister Qian Qichen 
in town for the handover, 
however briefly, it is im- 
possible that Mr. Tung failed to 
receive instructions on meeting 
the man from Taiwan. The chief 
executive is a perfect interme- 
diary; his father's vast shipping 
empire was Taiwan-based and 
not until its bankruptcy in the 
mid-1980s and the Chinese 
government’s decision to save 
the company with a financial 
bailout was the Tung-Taiwan 
connection severed. 

The last thing Beijing wants 

Bv Jonathan Mirskv 

is for Taiwan to be considered 
"foreign" when its official 
status is that of a "rebel 
province." Yet the "final solu- 
tion" of reunification that Mr. 
Jiang spoke about would prob- 
ably have to be violent. 

The circumstances of Taiwan 
and Hong Kong are wholly dif- 
ferent. Taiwan is more than 100 
difficult miles offshore, its pop- 
ulation is 21 million, not just 
over 6 million, and it has one of 
the toughest armies in the 
world. While corrupt, its local 
and central authorities have 
been popularly elected. Only 15 
percent of Taiwan’s people are 
mainlanders who came over 
after the Communist victory in 
1949. Most of the rest are the 
descendants of Ming dynasty 
loyalists who fled to Taiwan 
after the Manchu conquest of 
China in 1644 and continued to 
arrive over the next century. 

By contrast, although many 
Hong Kongers think of them-, 
selves as "Hong Kongpeople" 
or “Hong Kong Chinese.” 
most of them are refugees or the 
children and grandchildren of 
refugees from communism on 
the mainland. Rare indeed is (he 
Hong Kong family that can 
trace its roots here back more 
than four generations. Mr. 
Tung, bom in Shanghai, is a 
typical Hong Konger. 

President Lee Teng-hui of 
Taiwan, on the other hand, is a 
native Taiwanese whose Jap- 
anese — as a result of Japan's 
occupation of Taiwan from 
1895 to 1945 — is belter than 
his inelegant Mandarin, which 
he avoids using in favor of the 

island’s dialect. While there are 
elements of the Taiwan pop- 
ulation longing for reunifica- 
tion. they were dealt a body 
blow in March 1996 when 
China's war games and missile 
tests helped give President Lee 
a solid victory in the island's 
first presidential election. 
Beijing's threats strengthened 
Taiwanese nationalism. 

Independence is Taiwan 's ta- 
boo word; Chinese leaders have 
repeatedly declared that their 
forces would invade if it were 
proclaimed. Such an invasion 
would be possible, although 
China's losses would be huge. 
Once on the island. Beijing's 
army would be in conflict with a 
truculent population in which 
every able-bodied male under 
60 has received two years of 
military training and knows 
how to handle a gun in guerrilla 

So the "I" word is men- 
tioned only by Taiwan’s ideo- 
logical daredevils. Instead, Mr. 
Lee presses education schemes 
in which phrases like "our 
mountains and rivers" increas- 
ingly mean Taiwan’s. His dip- 
lomats move around the world 
reminding their hosts that 
Taiwan in many ways is a big- 
ger economic power than China 
and will not be bullied. The 
Island's athletes and scholars 
attend international meetings. 
And its manufacturers invest 
heavily in China. 

Most important for Taiwan’s 
safety is its agreements with the 
United States. Although based 
on deliberate ambiguity, they 
were strong enough for Pres- 

ident Bill Clinton to order two 
naval battle groups to cruise 
protectively near Taiwan dur- 
ing the Chinese missile firings 
and invasion games in March 
1996. Taiwan, despite its polit- 
ical corruption — which in- 
cludes close linkings between 
the governing Kuomintang and 
the local mafia — enjoys in the 
United Slates the reputation of 
being China ihe Good. 

So Mr. Jiang's recent refer- 
ence to a “final solution" of the 
Taiwan problem is bombast and 

the new liaison between the 
land and Hong Kong mere win- V 1 
dow dressing. . '/./-‘T 

Barring a" military putsch! in V 
Beijing followed by. foolhardy; i 
generals launching Tbras £ • 
across the Taiwan Stimtnomat-. ;-- 
■ ter what the cost, reunification, 
of the island with the mainland?; .; 
remains remote. • . 

The writer. Asia editor ofTfjet'; 
Tunes of London, contributed/ _ 
this comment to the Internd- f 
tional Herald Tribune. " 

IN OUR PAGES: 100, 75 AND 50 YF.AHfi-A< 
1897: Turkey’s Ally their curiosity. Miss Cam 

BERLIN — Despatches re- 
ceived from Constantinople re- 
port that in well-informed 
circles it is stated that Turkey has 
formed a defensive alliance with 
Roumania against any attack 
from Bulgaria. The preliminar- 
ies were signed to-day [July 14], 
and die Roumanian Minister had 
an audience of an hour and a half 
with the Sultan, Meanwhile, the 
council of Ministers held in 
Constantinople decided not to 
permit Greek ships, even when 
not containing contraband of 
war, to pass the Dardanelles, 

1922: Breeches Uproar 

LONDON — An American girl 
who appeared in Piccadilly in 
golfing suit with plus-four 
breeches caused much 
amazement among phlegmatic 
Londoners — such amazement, 
indeed, that she had to take 
refuge in a taxicab to escape 

their curiosity. Miss 
says the costume Is caUed^w: 
Knickerbocker suit and b-’L'tosS 
latest thing in sports wear, 

New York." "Anyway I didatfe',; 
show more of my legs than : 

tish girls do." she said. 

London girls in very short jmri pgfr 
ers and big furs would anxab&ffi 
much attention in New YotfcT^ 

1947: Czechs’ Beal . ;, j 

PRAGUE — Three - 
Czechoslovakian leadera;;'!^ 

turned from a whirlwind cobUt-' 
roand visit to Moscow- with wif 
promise of a “fiir-reachid^^ 
five-year economic agftsawbpl 
inreium for Czecbosfoyakii^' 
joining the boycott aeainafc.tffijjil . 
Marshall proposal. The 
returned with the pronti$BF®1 
200,000 tons of wheat 
year, in addition to othef-fimK;] 
fertilizers and raw : 

*l*he Russians will 
equipment, oil piping. ansM 
i&hea industrial prodpctfirA^^; 

71 420 0348 


How Singular Are Sports Teams? 

?™?ZRs anc 
* Mf-za; 

4r Wfiratv. 
'JTZZ' jt 


By William Safire 

\%T ASH3NGTON — A full-court 
V V press is needed to straighten out 
the syntax of sports. 

1 see a headline atop The Wash- 
ington Post: “Jazz Beats Bulb,” with 
the verb construing the first team, from 
Utah, as singular. Had the game gone 
the other way, however, the headline 
would have read “Bulls Bear Jazz,” 
construing the Chicago team as plural. 

* ‘Is (are) the Miami Heat singular or 
plural?” wonders Howard Klein berg, 
a columnist for the Cox newspapers. 
His concern extends beyond one team: 
“The Colorado Avalanche? The Utah 
Jazz? That there are five men on the 
court for the Heat atall times would 
tend to support a decision that they are 
plural. But when referring to the team 
by the name of the city, Miami is 
singular no matter how many are on the 

Previous generations of sports fans 
were never forced to deal with team- 
nominal singularity. The Brooklyn 
Dodgers were a team, all right, but we 
referred to Da Bums in Ebbetts Field as 
“they”; our Pete Coscarart would tag 
out their Mel On sliding into second for 
die Giants, but Brooklynites always 
thought of the invaders from the Polo 
Grounds not as a collective “it” but as 
an uncollected “them,” as befitted a 
loose assemblage of individuals from 
Coogan's Bluff. Sometimes the 
Dodgers were referred to as “the 
flock,” harking to the team's one-time 
name of Robins, but even using that 
obvious collective noun, the construc- 
tion was often “the flock arc in the 
cellar again.” 

Same andcoliectivism in football; 
the Packers beat the Bears, the Bears 
put the rush on Ace Parker of the 
football Dodgers — it was all gram- 
matically consistent and easy to follow. 
(Some of my sports allusions may be 
slightly dated — whatever happened to 
Joe Vosmik? — but when it comes to 
language change, I like to run my 

thumb along the cutting edge.) 

Basketball's Jazz changed all that. 
Utah is not a state known for its jazz 
joints or jazzy way of life; however, 
when it attracted a franchise of that 
name from New Orleans, its owners 
wisely decided to keep it. Other teams 
picked up the notion of dropping the s. 

“If I want to reflect on the Heat’s 
series with the Chicago Bulls,” asks 
my colleague in columny. “do I say, 
‘The Heat were crushed' or ‘The Heat 
was crushed’? What is the dictum on 
teams that do not end plurally?” 
Before formulating a dictum — a 
pronouncement that carries authority 
but not the weight of legal precedent — 
I consulted learned authorities. They 
do not agree. Martha KoUn, author of 
“Understanding English Grammar,” 
says, “I would treat ‘the Utah Jazz’ the 
same way as ‘the Pittsburgh Pirates’ 
and use a plural verb — the Jazz are." 
The former Penn State English pro- 
fessor adds: “You would never say, 
‘The Pirates is in town.’ V 
Contrariwise, Tom Jolly, an editor 
on the sports desk of The New York 
Times, says: “Because the team names 
are singular entities, we’ve elected to 
give them singular verbs. Sometimes it 
looks a little awkward — for example, 
‘The Bulls are playing much better 
than the Jazz is playing,’ but we think 
we’ve chosen the better alternative.” 
But The Spotting News stylebook 
goes the other way, in grim consistency , 
on this matter of nomenclature: “Team 
names such as Magic (Orlando), Heat 
(Miami), Jazz (Utah), the White Sox 
(Chicago), the Red Sox (Boston), al- 
ways take the plural verb” — that is, 
“the Magic are" and “die Sox are." 

Enough dribbling; it’s dictum time. 
To reach a decision, let us turn to the 
great guiding principle of English gram- 
mar,. revered by linguistic sages, em- 
inent lexicographers and the most use- 
ful usagists: * ‘No matter how ‘correct’ it 
may be, if it sounds funny to’ the ear of 
the native speaker, it ain’t right” 
Words like jazz, heat and magic have 
long backgrounds of singularity in the 
language: “The jazz is cool”; “Stay 
lost Looie, the heat is on”; “Sony, my 

dear, the magic is gone.” To say now 
“the Heat are losing” or “the Magic 
are gone" is to sound funny. If your 
usage causes your reader, or listener to 
assume an expression that says, “What 
are you, some kind of grammatical 
nut?” then go with the natural sound of 
the language. If the team name ends 
with s. use a plural verb: the Bulls beat 
and are. If not construe it as singular: 
the Jazz beats and is. 

If you need an excuse, call it an idiom. 
Idioms get away with syntactic murder. 
Take your shot with a singular verb, 
treating the name of the team without an 
s, as you would a city. And there’s no 
comma in He shoots he scores! 

“Once we get the right leader, and the 
right chairman,” wrote the Lord Feld- 
man to The Times of London after die 
political debacle of the Conservatives, 
*‘we can then start our fightback." 

There’s a Lively Britishism for 
Americans to adopt Fightback is a 
verb form first used as a compound 
noon in 1953, hyphenated in a book 
about polo in 1 960 and now found as a 
familiar one-word description of a los- 
ing side's surge in cricket 
The neologism was formed on the 
analogy of kickback, “a sometimes 
corrupt return of a portion of money 
paid' : fallback, "a prepared retreat” 
as in “fallback position,” and espe- 
cially comeback, which can mean 
either ‘ ‘a snappy retort” or • k a return to 
power,” as in President Clinton's de- 
scription of himself as “the Comeback 
Kid! ” Fightback is a more active form 
of comeback and is a noun for lex- 
icographers to watch. 

English word coinape is not exclus- 
ively an American trait ns recent vis- 
itors to London can attest The lan- 
guage does its own refurbishing, often 
by squeezing old words together. The 
BBC’s Sir David Frost recently took a 
three-word phrase popularized by W. 
Somerset Maugham — “The Sum- 
ming Up” — and compressed it to the 
one^word upsumming. 

Don't know if that one will fly. 

New York Times Service 


Executives Available 

AIEBSM vs; sry*.v. 

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By Christopher Dickey. 335 pages. $23. 
Simon & Schuster. 

Reviewed by David Morrell 
1 OMING on the heels of the guilty 

verdict in the Oklahoma City bomb- 
ing trial, “Innocent Blood” seems de- 
signed to answer an often asked ques- 
tion: How could someone so apparently 
patriotic and all-American as Timothy 
McVeigh have felt compelled to become 
a domestic terrorist and blow up 168 

The author, Christopher Dickey, has 
impressive journalistic credentials to take 
i on the topic. A former reporter for The 
Washington Post and currently News- 
• week’s Paris bureau chief, he has covered 
stories in Mexico, Central America and 
the Middle East. He has explained that he 
' “ started this book as away to understand 
the mind of the fanatics and terrorists I 
jijf often write about . . . The results may be 

disturbing for the reader. But no more 
than they have been for me.” 

At heart, die novel is a character study. 
Narrated by a young Kansan named Kurt 
Kunovic, the story dramatizes his increas- 
ing disaffection from America. To escape a 
bleak home life, he joins the U.S. Army 
Rangers as soon as he graduates from high 
school. Trained to be a demolitionist, he 
finds temporary meaning in fighting for 
God and country. But his combat expe- 
riences in Panama and the Gulf Ware ven- 
tually cause him to question whose God and 
country be is fighting for. 

In an attempt to overcome his identity 
crisis and learn about his family’s past, 
he visits his parents’ ancestral home in 
Bosnia, but what he learns about instead 
are the brutality and injustice of a war 
that be feels could be stopped if only the 
United States would act responsibly and 
intervene. Since it hasn't, it will have to 
be taught a lesson, he reasons. Recruited 
by a Muslim terrorist organization, he 
returns home to wage a holy war against 

what used to be his country. 

One of the book’s strengths is drat the 
narrator's increasingly fanatical views 
are convincingly motivated and de- 
veloped. Partly because of the intimacy 
of the first-person technique, there is 
never a moment when the reader has 
trouble identifying with (although not 
sympathizing with) Kurt's descent into 
extremism. The book feels so authentic, 
so true to life, that a thriller tone in- 
troduced near the end is unexpected. But 
there’s nothing like ending with a bang 
— or, in this case, a race to stop a terrorist 
event that would make what happened in 
Oklahoma City seem minor. On the final 
page, the frightening implication is that, 
while one catastrophe has been averted, 
in real life many others are being 

David Morrell, whose thrillers in- 
clude "The Brotherhood of the Rose" 
and " Extreme Denial" wrote this for 
The Washington Post. 


Herald Tributf 
ads work 

f be informed ^ *■ 

AgjA/Pfig gS 


By Alan Truscott 

T HE concept of the World 
Scholar-Athlete Games, 
which completed its eight 
days of sporting and cultural 
activity by teen-age students 
from 144 countries, would 
have delighted Cecil Rhodes, 
founder of the Rhodes schol- 
arships. Bridge was . included 
$ a late stage, and there was a 
last-minute effort to bring 
some players from China. 

A sponsor had been found, 
and tickets bought, but last 
minute visa problems kept the 
Chinese at home. The only 
countries represented in the 
bridge events were the United 
Stales, Canada, Sweden, Rus- 
sia and Poland, and two of 
these were involved, in the 
deal shown in the diagram. 

West was Dmitri Maslen- 
nikov of Moscow, who re- 
cently settled in Los Altos, 
California, and be made an 
inspired lead. After a highly 
competitive auction he 
doubled six clubs, and led his 
singleton heart rather than 
one of his aces. His partner 
won the heart ace but railed to 
give him the decisive niff, 
shifting instead to a diamond 
and allowing Aaron Papst of 
Bakersfield, California, to 
make the slam. That defense 
was unlikely to be right, since 
West would hardly choose a 
doubJeton heart lead in this 

- Notice that six hearts 
would have been unbeatable, 
for North-South. With a 
choice of fits, the suit in 
which the ace is missing tends 
to be more successful as a 

trump suiL Six hearts doubled 
was made at another table 
where Tommy Westman of 
Stockholm and Todd 
Wolford of Aurora, Ohio, sat 
North and South. 

Bidding and making a slam 
when missing three aces is a 
rare event. It followed that 
East- West, in spite of their 
aces, should save in six 
spades against six hearts. 

At one table, Lisa Kow of 
Concord, California, a fresh- 
man at the University of Cali- 
fornia in Davis and (Hie of the 
six women to compete in 
Rhode Island, actually made 
six spades doubled. She 
drooped her jack on the open- 
ing lead of the club ace, and an 
inexperienced West shifted to 
a heart, failing to appreciate 
the significance of the nonap- 
pearance of the club five. 

♦ - . 
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0 K 9 6 

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to Tickled 
i« Johnny Cash's 

* Named 


is Before the due 
. date 

is Singer McEntire 
17 Formative 
Picasso phase 
icTerrftOeczar ‘ 

' » H picks bp- 
*1 Hustler's tool, 
S3 Religious 
29 Actor Davis 

24 Assail 

» Football 

32 Newspaper 

a Year, south of 
'the border 

34 Wouldn’t 


39 Cen ter of a 
1994 chase 

42 Apollo 13 
commander . 

43 Holds . 

44 Tennis champ 

«s Cleaner/ 

■«r Connection' 


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Solution to Puzzle of July 1! 

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□□□□Hossna nans 
□□h Etaaaaa 
QB0Q0 maoisaa 

□ebeq asa aaaaa 

QBHHQ II a □ □□□□□ 

SEI 00 Q Han aaaaa 
nsnaaa saaaa 
□ddhcjs aaa 
DQ0B aanaaaaaaa 
□□ana Haaaoaaaa 
□aana aaaaaaaaa 
bdobb □□aaaaaaa 

41 Octagon or oval 
92 One of The 


54 ‘Carnival ot 
Venice* violinist 
98 Tough 
si Jai-: — 

62 Sophie Tucker 
was the ‘last* 

64 Opposite of ja 
68 Writer Asimov 
66 General's 

67‘Auld Lang , 



ee Bean counters, 
for short 

1 Quick punches 

2 Up to the task 

3 Verb precede* 

4 Potato parts 
9 Drunken 

6 Paddle 
1 July 14, in 

■ Sun blockers 
t-F D.R s-. 


10 Southern 
breakfast dish 

11 Popular pa nls 
since 1850 

12 Oid-slylB 

«3 ‘Thanks. 

18 Hitching 

22 Sub's ‘ears* 

24 Taboo 
as New Year's Day 

27 22-Down reply 

28 Hood's knife 

29 Villa d' 

31 Trails Off 

33 Be iri the 

35 Earring locale 

38 Fort (gokf 

depository site) 
37 Stocking shade 
3U Labradors and 

40 Comedienne 

41 Flamboyant 

46 Most mentally 

47 Not mase. Or 

48 Crosses over 

49 Alex who wrote 

so One more Ihne 

5» 'Common 
53 Time in a 
BalUe* singer 

55 Pupil locale 
57 Da roil 
financing co. 

se The World 
According to - • ' 

*31V«b York Tim*#/ Edited by Will .Shorts. 

55 Austen heroine 
60 From nine to five, 
in the classifieds 
63 Kubrick's 
“ 2001 * 


The Honeymoon Is Over for Kabila 

Opposition Parties Move Boldly to Defy Congo Government’s Policies 

By Howard W. French 

New Yori, Timn Sen-ice 

KINSHASA, Congo — Responding 
to a ban on opposition-party politics that 
was announced along with the creation 
of this country’s new government in 
May, one of Congo's most outspoken 
opposition politicians decided he should 
move his office. 

But the opposition figure, Joseph 
Olenghakoy, did not go underground or 
even adopt a more discreet stance to 
avoid confrontation with foe new gov- 
ernment of Laurent Kabila. 

Instead, Mr. Olenghakoy, the leader 
of foe Renovating Forces for Union and 
Solidarity, ordered that his desk be taken 
out of the quiet back office in his party 
headquarters and defiantly placed square 
in the middle of the reception area, 
where he now sits daily to greet a stream 
of party members and well-wishers. 

With former Prime Minister Etienne 
Tshisekedi. foe main opposition figure, 
having been arrested in June and held 
overnight for making public speeches in 
defiance of foe political ban, Mr. 
Olenghakoy sees the placement of his 
desk in full public view as a small sym- 
bolic gesture. It is part of an overall 
strategy of ratcheted confrontation that 
he and others in Congo, formerly Zaire, 
are already warning could ultimately 
lead to armed resistance. 

“Unfortunately, one of the lessons 
foe Congolese people have learned from 
Kabila's rise to power is that foe in- 
ternational community respects violent 
men,” said Mr. Olenghakoy, 34. 

Mr. Kabila's forces won power in 

May from Mobutu Sese Seko, who 
□early drove the country into foe ground 
in almost 32 years of dictatorial rule. 

“This country didn’t struggle for seven 
years to get rid of Mobutu to sir back and 
watch him be replaced by someone who 
uses foe same methods,” Mr. Olenghakoy 
said- “But after having applauded Kab- 
ila’s army’s march across Zaire, the West 
should not expect us to accept nonviolent 
opposition indefinitely.” 

In much of Africa, opposition parties 
face a choice between peaceful tactics, 
which have often proven futile in foe 
face of repressive governments, and 
armed resistance. 

Since sweeping to power on May 17, 
Mr. Kabila has m effect outlawed or- 
ganized opposition, saying that his Al- 
liance of Democratic Forces for the Lib- 
eration of Congo will rule alone until it 
organizes national elections — prom- 
ised for 1999. 

Mr. Kabila’s edicts have received only 
muted criticism from foe West, which 
seems relieved over the end of Marshal 
Mobutu's long dictatorship, and eager to 
give the new leader foe benefit of foe 

“We haven't tackled that specifical- 
ly,” said a Western diplomat, who was 
asked whether protests had been lodged 
over foe ban on political activity here. 
“We do attach a lot of importance to the 
timetable for elections and will try our 
best to hold them to that” 

Mr. Kabila's government has given 
almost no public explanations for many 
of its policies. But opposition leaders 
say that they have been told the new 
leaders feel they should be allowed to 

work unhindered at gening this country 
in order again. 

There are growing signs already, 
however, especially in Kinshasa, that foe 
new restrictions on political freedoms 
are grating on people's nerves. 

The brief arrest of Mr. Tshisekedi, for 
example, provoked incidents in several 
neighborhoods of the city, where op- 
position activists set fire to cars and 
trucks and played cat-and-mouse 
games, taunting foe government soldiers 
sent into foe streets to restore order. 

Responding to protests in foe streets 
carries risks for the government. Much 
of Mr. Kabila’s army is composed of 
foreign forces on loan from neighboring 
countries — Rwanda, Uganda, Angola 
and Eritrea — that supported his revolt. 
Every appearance of troops in the streets 
draws people out of their homes to 
watch and comment, mostly negatively, 
about what is widely resented here as a 
foreign occupation. 

Polls indicate that Mr. Kabila has 
already paid a heavy price for this per- 
ception. In one opinion survey by an 
independent polling agency in June, 
only 1 4 percent of foose who responded 
said they admired foe new president, 
while a majority said they regarded him 
as a “hostage” to foreigners. Over 75 
percent said they disapproved of the ban 
on political activity, while 62 percent 
said they supported Mr. Tshisekedi. 

“There has been a large erosion 
already in support for this government, 
and it seems clear there will be no hon- 
eymoon,” said Olivier Kamitatu. di- 
rector of the leading polling agency 
here, BercL 

Icof Mar B.«jomv Piv 

Archbishop David Gitari blessing a spot Sunday near a Nairobi church where a person was killed by the police. 

Archbishop Criticizes Kenyan President 


NAIROBI — The Anglican archbish- 
op, David Gitari, attacked President 
Daniel arap Moi from the pulpit Sunday 
at All Saints Cathedral during a ce- 
remonial “cleansing” that was held be- 
cause police stormed the church last 
week during clashes with pro-democ- 
racy demonstrators. 

Speaking to a packed congregation 
that included many opposition figures. 
Archbishop Gitari said of Mr. Moi, 
“You have been weighed in the balance 
and found wanting.” 

Riot police threw tear gas into the 
cathedral Monday and beat worshippers 
with batons when people fleeing the 
clashes sought refuge in foe church. 

Senior police officials later publicly 
apologized for foe invasion. 

The demonstrations, called to back 
opposition demands for constitutional 
reforms ahead of elections due this year, 
were held in several towns despite a 
government ban. 

Holding one of the tear-gas canisters 
that had been hurled into the cathedral. 
Archbishop Gitari said the government 
had to be obeyed only as Jong as it did 

not infringe on the rights of foe people. 

* ‘ B lood cannot be shed in a holy place 
in vain,” he said. 

“The government must now put inro 
motion constitutional reforms," he ad- 

Archbishop Gitari also said. "There 
is still hope that the cries of the people 
will be heard." 

Hundreds of people, who applauded 
during his sermon, surrounded foe 
packed cathedral to listen to the service 
over loudspeakers outside. 

They applauded Archbishop Gitari 
and another speaker, foe Reverend 
Timothy Njoya, a Presbyterian, who 
had to be hospitalized after being beaten 
by police in the cathedral. 

A prominent opposition supporter. 
Mr. Njoya called for the public to boy- 
cott elections unless reforms were im- 

“Instead of having elections, we will 
open our churches and mosques and 
teach people what it means to nave free 
and fair elections," he said. 

All services scheduled for the ca- 
thedral Iasi week were canceled after the 
clashes to await the rededication ce- 


remony Sunday. Before the service. 
Archbishop Gitari led a procession of 
Anglican priests around the packed ca- 
thedral, waving a ceremonial evergreen 
branch and sprinkling holy water at the 
bloodstained spots where one person 
died- and where rear gas canisters 

. A fiery Muslim preacher and one of 
Mr. Moi's most outspoken critics. 
Sheikh Khalid Balala. joined foe ser- 
vice, welcomed by the archbishop. 

Mr. Balala. who returned Saturday 
from two years in exile in Germany after 
the Kenyan government agreed to admit 
him. was greeted with enthusiastic ap- 

He was greeted upon his arrival in 
Kenya by hundreds of followers chant- 
ing “Moi must go. No reforms, no elec- 

Mr. Balala said he would organize a 
march of 10 million people to force Mr. 
Moi to give in to the growing calls for 
constitutional changes. 

The United States. Japan and several 
dozen countries in Europe and else- 
where in foe West have pressed Mr. Moi 
to enact democratic reforms. 

21 Slain in Algerian Massacres 

ALGIERS — Two massacres near foe Algerian .capital 
left 21 persons dead over foe weekend, hospital officials 
said Sunday. Many had been decapitated or had slashed 

No one claimed responsibility for foe attacks, which bore 
foe marks of Muslim militants. More than 300 people have 
been killed since a new government took office in early 
June, promising to end a 5-year-old Muslim insurgency in 
the North African country. 

Fourteeen members of the same family were killed 
Saturday with knives or axes in Bou-Smail, a seaside village 
"west of Algiers. In Dellys, east of the capital, an armed 
group attacked a bus, shooting seven people to death and 
wounding 20 others. 

On Saturday, independent newspapers reported foe 
killing late last week of eight people near Tipazu, west of 
Algiers. And on Thursday, lhnre shepherds were killed by a 
group of armed attackers south of the capital. (AP) 

Pact Set on Nagorno-Karabakh 

YEREVAN. Armenia — Armenia and Azerbaijan have 
reached a secret deal on the disputed enclave of Nagorno- 
Karabakh. President Levon Ter-Pctrossian of Armenia said 

“The question of Nagorno-Karabakh has taken a de- 
cisive .step forward with a new compromise.” Mr. Ter- 
Peirossinn said. Details of the deal arc being kept under 
wraps until an accord is signed, he said. But he reiterated 
that Armenia would never sign un accord without the full 
backing and signatures of representatives of the territory 

Peace talks on the breakaway territory in Azerbaijan have 
stalled since a cease-fire was declared in May 19**4. 
Azerbaijani forces unsuccessfully tried to retain control of 
the ethnic Armenian enclave in fighting that lasted from 

1988 to 1994. leaving an estimated total of 20.000 dead. 

Armenia last month said it supported a proposal that 
includes plans fora withdrawal of Armenian troops and the 
deployment of a buffer force of Russian. U.S. and European 
troops. Nagorno-Karabakh would retain its armed forces 
and weapons, monitored by the multinational force. (AFP) 

Cardenas's Victory a Big One 

MEXICO CITY — The opposition leader Cuauhtemoc 
Cardenas Solorzano won almost twice as many votes as hts 
.nearest rival in last Sunday's election for mayor of Mexico 
City, according to official results. 

Mr. Cardenas, running for the leftist Party of the Demo- 
cratic Revolution, received 1 .859.866 votes, or 47. 1 1 per- 
cent of the vote, official results from the Federal Electoral 
Institute show. His nearest rival. Alfredo del Mazo, of the 
long-ruling Institutional Revolutionary Party gained 
990.306 votes, or 25.08 percent of the total. Carlos Casiillo 
Peraza of the rightist National Action Party took 602.466 
votes, or 15.26 percent. 

The- vote was the first for a mayor in Mexico City in 
decades. The cabinet level post previously had been filled 
by the president of foe republic, which effectively kept the 
post in the hands of the ruling party. (Ratios) 

Sierra Leone Clashes Reported 

FREETOWN. Sierra Leone — Weekend clashes between 
Nigerian troops ami Sierra Leonian forces loyal to the new 
military junta here have left dozens dead, witnesses said 
Sunday. People close to the military said the fighting, which 
broke out Saturday and was continuing Sunday, centered on 
four villages 30 kilometers ( IK miles) east of Freetown. 

Nigeria, which lias peacekeeping troops in the troubled 
West African stale, has been involved in several attempts io 
undermine the military junta that seized power in Sierra 
Leone in May. (AFP) 

PAGE 10 



Mars Rover, 
Free of Rock, 
Goes Back 
And Tests It 


PASADENA, California — The Mars 
P arfifinrief mission has gotten back on 
track after scientists successfully dis- 
lodged the Sojourner rover from a rock 
where it had become stuck, a mission 
scientist said. 

Sojumer had been propped against the 

rock with one of its rear wheels on it 
since a maneuvering error Thursday, and 
remained there Riday because of a com- 
munications glitch. 

New commands transmitted late 
Thursday to the Pathfinder lander from 
NASA’s Jet Propulsion laboratory here 
failed to arrive because of a delay in 
activating the Mars lander’s receiver. 

The delay left the mother craft and the 
rover without new instructions for a 

On Saturday, controllers at the Na- 
tional Aeronautics and Space Admin- 
istration's Jet Propulsion Laboratory 
managed to get Sojourner clear of die 
rock, ni cknam ed Yogi, and then to back 
the rover up to it again, without incident, 
to resume its historic mission on Mars. 

Richard Cook, the mission manager, 
said die rover would spend the day ana- 
lyzing Yogi with its alpha proton X-ray 
spectrometer to determine die rock's 
chemical composition. 

A similar analysis earlier in the week, 
found that another rock, called Barnacle 
Bill, was identical in composition 
to rocks on Earth, leading scientists at 
the Jet Propulsion Laboratory to die 
conclusion that Earth and Mars were 
solar twins in terms of their develop- 

The rover had been due to survey 
Yogi on Wednesday, but that was put i 
in favor of a new approach because 
photographs taken by Pathfinder 
showed that the rock — about four times 
larger than the microw ave-oven-sized 
Sojourner — had an overhang that could 
have damaged die six-wheeled- 
vehicle’s solar panels, which keep its 
batteries charged. 

The maneuvering error on Thursday 
further delayed the mission, and the 

m mmnnicatinns glifr. h added to the 

But Mr. Cook said the setback was 
minor, noting that die rover was cap- 
able of operating on the Martian surface 
for several months and that spending 
four or five days analyzing a single rock 
was ’’well within Sojourner’s capabil- 

“It’s a little thing.” he said of the 

The rover’s next target is a rock about 
10 meters from Yogi called Scooby 

It is of particular interest to scientists 
because it is whitish, paler than any other 
Mars rock seen so far. 

Engineers at the Jet Propulsion Lab- 
oratory hope to send the Sojourner over 
to Scooby Doo early this week after 
it carries out soil sampling experi- 
ments between Yogi and the whitish 

New Line in Bosnia i 

Raid to Seize Serbs Bolsters NATO linage 

By Edward Cody 

Wbshihgton Post Sfreice 


SARAJEVO — After a year and a half eliminate --- p h i ic 
of timid peaccmakmgin Bosnia, the ficiais i£ *e Serb KgP«w 

- i i&ifm _:i; th» Corhian-nifl 0*Ul 01 u® 


United States and its NATO allies have 
finally taken a decisive step to make tore 
the guns stay silent — or have they? 

The arrest of a Bosnian Serb indicted 
for genocide and the killing of another as 
he resisted capture, by the NATO-led 


the Serbian-run 
united Bosnian state. 

^Although Mr. Prljaca was fprqedti 
step down last year as police cb«£r 
Priiedor, 200 kilometers (ttS'inhj 
northwest of Sarajevo, he c onmny ff.l 
act as an enforcer m foo governments 
According to security sources, ** fltooj 

took part in the black manoet 
-“Mr jo Percent” 

S tabilizatio n Force were widely hailed 
by foreign officials here as the end of a 
falte ring policy that favored prudence Radovan KaraazJ 
over results. official authority. M 

The policy of hesitation, growing Perhaps most important, mt. 

assistant to B 

nickname was “Mr. 
by the Bosnian Serbs’ former 
Radovan Karadzic, to finance 

from ti 

of hesitation, growing 
die Pentagon’s fear of cas- 

was a logistics 

ties, was blamed in part for the un- Sabs’ interior minister, 

-■ -• - =- « -mia In that role, be was m charge of doakag^- 

— - other policemen and for mer soldiers > 

settled situation still reigning in Bosnia 
nearly 20 months after the Dayton peace 

Until the operation try elite British 
soldiers, the American-co mm anded 
peacekeeping force had refused to seize 
Bosnians accusedof war crimes, citing a 
mandate that excluded police duties. As 
a result, Bosnians who were publicly 
indicted for their brutality during the 
1992-95 ethnic conflict moved about 
openly, undennining die credibility of 
die peacekeeping force and hence of the 
entire international effort to restore sta- 
bility to die former Yugoslavia. 

ouivi — * , ,, ■- 

cused of war cranes, providing 

P. Ncwnyr fepacc Fmn.Picsc 

GREETING AUSTRIANS — The US. first lady, Hillary Rodham Clinton, accompanied by her daughter, 
Chelsea, and the chief minister of Salzburg, Franz Schansberger, waving to the crowd Sunday at the airport 

police chiefs and Milan Kovacevic, a 
hospital director and former deputy 
mayor of Prijedor, the Bosnia equation 
has changed, according to assessments 
by foreign and Bosnian officials. 

The question is, how much has it 



Clinton Hints at Possibility of Longer Balkans Role 

By Alison Mitchell 

New York Tunes Service 

COPENHAGEN — As he ended a 
weeklong trip to Europe. President Bill 
Clinton kept the docs- open to a U.S. 
military role in Bosnia next year after the 
current deployment of American and 
other NATO peacekeeping troops ends. 

Speaking to reporters Saturday, a day 
after a Senate vote urging tiiat foe pres- 
ident make good on his pledge to remove 
ground troops by June 30. 1998, Mr. 
Clinton said, 4 T believe foe present op- 
eration will have run its course by then 
and we’ll have to discuss what, u any, 
involvement foe United Stales should 
have there.” 

Mr. Clinton, who answered questions 
Nyrup Ras 

ister Foul Nyrup Rasmussen of Den 
mark, did not elaborate. But his state- 
ment was the clearest signal to date tiiat 
the administration may be considering a 
role for U.S. troops after June 30. 

Last month Mr. Clinton sidestepped a . threatens to become a divisive issue in- 
question on an extended U.S. presence, side NATO. 

Cohen has said the troops will pull out 
next June. 

Mr. Clinton's press secretary, Mi- 
chael McCuny, said Saturday that the 
administration expected that “some in- 
ternational presence' * would be required 
in Bosnia when foe current deployment 
of North Atlantic Treaty Organization 
troops ended. 

But Mr. McCuny fended off questions 
about a U.S. role, saying that no formal 
planning had begun inside foe alliance. 

“It is frankly too early to do that,” he 

Earlier last week, at foe NATO sum- 
mit meeting in Madrid, Senator Joseph 
Biden, a Delaware Democrat who was a 
member of tbe Senate observer group on 
NATO expansion, suggested foe United 
States would be prepared to supply air, 
sea, intelligence and logistical support 
for a continuing peacekeeping presence 
in Bosnia, but no ground troops. 

The question of how long a peace- 
keeping force will be needed in Bosnia 

and his aides have said he would veto 
any bill from Congress that tied foe 
United States to a specific withdrawal 
date. But Defease Secretary William 

The Bosnia issue is also a reminder of 
some of the bard realities facing foe al- 
liance, alter a week devoted to celeb- 
rating NATO’s plans to expand to include 

foe former Communist nations of Poland, 
Hungary and foe Czech Republic. 

In 1995 foe United States committed 

20.000 troops to Bosnia peacekeeping 
and Mr. Clinton said they would be 
deployed for only a year. 

One year later, Mr. Clinton an- 
nounced that foe United States would 
keep a smaller contingent of troops in 
Bosnia as pan of a NATO force with a 
new mission to stabilize the peace that 
was brokered near Dayton, Ohio. About 

8.000 U.S. troops are in Bosnia now. 

When announcing the smaller mis- 
sion. Mr. Clinton pledged that the U.S. 
troops would be withdrawn by next 
June. The House voted last month to cut 
off money at that time, an action that foe 
administration has strongly condemned. 
The Senate action, a nonbinding res- 
olution, was far softer. 

Acknowledging that foe Bosnia peace 
is in danger, foe Clinton administration 
in recent months has signaled that more 
aggressive steps need to be taken to cany 
out provisions of foe peace accord re- 
garding people accused of war crimes, 
and on refugee relocation and recon- 
struction of civilian sites. 

On Thursday. British troops under 
NATO command captured a Bosnian 

before the International ^ 

Tribunal for foe former 
charges of participating in • ' 

along with Mr. Drijaca, in 
takeover of Prijedor. 

“It’s enough to get a lot 
chaiHng in their boots,” said a dq>totnaE£ i 
wifo broad experience in Bosnia. 

Those with particular cause to 

But since the British military moved he explained, are Bosnian Serbs 
against Simo Drijaca, a former Prijedor served wifo the police — wifobnitalacraJK'; j 

" * - on. their war records — who do not>^ : 

appear on foe list of 75 Bosnians ppbril j 
licly indicted for war crimes. 

This is because since early tins year.*/'! 
tive tribunal has begun issuing 'seated %['} 
indictments, empowering peacekeeping s - i 
forces to plan and execute arrests against 
unsuspecting — and thus unguarded —-p - 
accused criminals. • . T ’:.. -' vJvX 1 

If the Stabilization Force wants^to-' 
preserve its new momentum, however. it .' , ■■■'. 
must soon go after others on the secret*,'' 
list just as it went after Mr- Kovacevic^ j 

, w and Mr. Drijaca, the diplomat . saidjj^ . 

fiance troops to pursue suspected war adding: “This is a step in the right 
criminals. rection, but it’s not enough. ~ . 

A genuinely decisive shift in policy^ - ; 
he noted, would require arresting 
only others on foe secret indictment list,-;, 
but also well-known — and weU.-t; - " 
guarded — figures on foe public list foat V . 
that they were being sought. But he also is posted, with photos, in offices of foe 
acknowledged that foe NATO allies rec- Stabilization Force, the United Nations : v } 
ognized that their troops could uot afford and other international groups working. 1 ;-, 
simply to wait out their mission. a in Bosnia. ~ - V . 

The president commended foe troops ’’The only, way to be decisive is to.-C 
who have been stationed in Bosnia. take the casualties,” an official said 

Takin g in these figures — -mensoch as p 
Mr. Karadzic and his wartime- com- : 
mander. General Raxko Mladic .4— in- 
deed would entail a high risk of cas- 
ualties. - . ... L .;‘ 

And so far, foe Clinton administration - 
and its military have been unwilling to - 
accept rides. 

Mr. Karadzic lives in Pale. thc Bos- V - 
nian Serbs’ capital, surrounded by .at-'.-, 
least 100 well-aimed guards from foe : ;; 
Special Police Brigade, security sotneer 
said ... ^ 

Mr. Mladic has spent most of his tnne *>_ 
at a base wifo bunkers in HanPijesak,50>- 
kilometers northeast of Sarajevo. 

Serb war-crimes suspect and killed an- 
other, in a more aggressive use of al- 

Mr. Clinton, speaking to reporters on 
Air Force One onFriday night, portrayed 
foe rad as a unique situation made pos- 
sible because the Bosnian Serbs were 
under sealed indictment and unaware 

“It’s been much less expensive and 
much less hazardous to America than a 
resumption of full-scale war would be,” 
he said. Since foe NATO mission began, 
no Americans have died in combat in 

Mr. Clinton, foe first sitting U.S. pres- 
ident to visit Denmark, was greeted by a 
flag-waving crowd Saturday in Copen- 
hagen's New Square. 

Continuing to promote NATO’s ex- 
pansion, Mr. Clinton said, “We have 
moved closer to realizing our 50-year-old 
dream — a Europe undivided, democratic 
and at peace for the very first time since 
nation-states arose on litis continent” 

CHINA: An Economic Reformer Looks Set to Replace Li Peng 

Continued from Page 1 

Mr. Zhu, a former Shanghai mayor 
who grew up in foe central-planning 
bureaucracy of China, became so iden- 
tified wifo Mr. Deng’s reform drive in 
the 1980s that some analysts began to 
call him the Mikhail Gorbachev of 


The appellation made Mr. Zhu so un- 
comfortable and so vulnerable to crit- 
icism from hard-liners that he lowered his 
political profile, while burnishing his im- 
age as a technocratic manager. On mat- 
ters of political reform, he remains as 
orthodox as the rest of foe collective 
leadership that has succeeded Mr. Deng. 

But Mr. Zhu is regarded as a prag- 
matist more willing to take risks for 
economic reform than Mr. Li. 

“Were it not for Zhu Rongji, it is fair 
to say the reform process would have 
been weakened,” said Harry B roadman, 
a former Bush administration economist 
now at the World Bank, where he studies 
the problems of China’s state industrial 

sector, also an obsession of Mr. Zhu. 

In 1993. Mr. Zhu gained international 
prominence when he was handed foe 
task of reining in a Chinese economy 
that was so overheated it was threatening 
to spin out of control. 

Mr. Li, who disappeared from the 
leadership in April 1993 asserting that he 
had a heart ailment, left to Mr. Zhu foe 
politically unpleasant job of cracking foe 
whip by canceling hundreds of provin- 
cial construction projects and ending foe 
flood of credit that state-run banks had 
turned loose. Mr. Zhu quickly gained the 
reputation as the hatchet man of foe 
central government 

Provincial officials who disliked his 
austerity campaign still could encourage 
opposition in the party to his appoint- 
ment, Chinese officials say. 

If. Mr. Zhu has any competition, it 
comes from support for Li Lanqing. an- 
other deputy prime minister who su- 
pervises China’s foreign trade and who 
is regarded as an even more flexible and 
pragmatic manager of the economy than 

Mr. Zhu. 

A year ago President Jiang Zemin and 
Prime Minister Li Peng were said to be 
confiding to some foreign visitors that Li 
Lanqing would be foe next prime min- 
ister. But such talk has all but disap- 
peared. as has speculation that Li 
Ruihuan. also a member of the inner 
Politburo, would be prime minister. 

Mr. Zhu’s toughness is credited wifo 
having brought foe Chinese economy in 
for a soft landing while preserving ro- 
bust growth after the overheating and 
inflation of 1 993-95. but by then Li Peng 
had returned to office to take much of the 

Though he is losing a powerful base of 
power. Mr. Li will by no means fade 
away. He is expected to retain his seat on 
the governing Politburo's standing com- 
mittee and is likely to get another pres- 
tigious position, perhaps as chairman of 
China’s parliament, the National 
People's Congress, or an advisory body 
like foe Chinese People’s Political Con- 
sultative Congress. 

■•t-f #■■■!• bnn'l tm i-lVi, 

Zhu Rongji, deputy prime minister, looks set to become prime minister. 

SOROS: Hungarian-Born Financier Gets Little Thanks From Wary Leadership of Belarus for His Philanthropy 

Continued from Page 1 

times tbe sum spent by foe U.S. gov- 
ernment's chief democracy-promoting 
foundation, the National Endowment for 

Unlike U.S. government development 
aid, about 80 percent of which is given to 
American contractors and consultants, 
most money Mr. Soros distributes is 
given quickly and with few strings to 
local groups and individuals, said 
Thomas Caro there, a former State De- 
partment lawyer at foe Carnegie En- 
dowment for International Peace, be- 
cause local activists are less expensive 
and more efficient at spreading the 
democratic, free-market mantra. 

Mr. Soros’s philanthropy has its crit- 
ics. .Some say it is too impulsive and 
mercurial, too arrogant and microman- 
aged, too confined to friends on the left 
of center and not open to public scru- 

Others criticize his investment in 
countries to which he gives; Mr. Soros' 
defenders reply by citing strict rules 
within the foundations for avoiding con- 
flicts of interest. 

Mr. Soros noted, for example, that his 
investment company sold its interest in 
Alliant Technologies, a French com- 
pany. after learning that Alliant helped 
manufacture land mines, a direct conflict 
with his program to ban land mines. 

But Mr. Sotos has permined his foun- 
dation in Russia to own GTS, now foe 
second-largest telecommunications 
company in Russia, because foe profits 
accrue to the foundation, not to him or to 
his investment funds. 

Some of those involved with his foun- 
dations wonder whether the financier is 
spreading himself too thin. 

“His Central European giving has 
been effective partly because of his per- 
sonal involvement and familiarity with 
the region and its problems,” said a 
long-time associate, noting that Mr. Sor- 
os visits Eastern Europe about five times 
a year. “But can he possibly have the 
same passion for nine new African coun- 

Mr. Soros himself acknowledges that 

he has had setbacks, including, for ex- 
ample. his foundations in Russia, which 
he was forced to restructure after dis- 
covering that employees were diverting 
foundation funds into Swiss bank ac- 
counts and using them to buy luxury 

“I never have regrets,” Mr. Soros 
said, “about having spent a lot of money 
trying in make things heller.” 

The current struggle in Belarus is 
shaping up as a test of Mr. Soros's 
staying power and a benchmark for him 
and perhaps for Central Europe, 

Serbia last year revoked his foun- 
dation's permit before finally restoring it 

under Western pressure. Croatia has put 
three Soros foundation employees on 
trial charged wifo currency violations, a 
criminal offense. 

But no government has ever forced a 
Soros foundation to close permanently. 

“ (f Lukashenko can take Soros down, 
no one is safe.” said Andrei Sannikov. 
Belarus’s former deputy foreign min- 
ister. who quit his post last year. “Per- 
haps not even in Russia, where our pres- 
ident's right-wing allies in Moscow sit 
and wait for Boris Yeltsin to die and their 
nationalist moment to come.” 

Standing up to the West by taking on a 
man as powerful as George Soros would 
enhance Mr. Lukashenko's standing 
among hard-line nationalists, another 
diplomat said. “Kicking out Soros.” he 
added, “is like shutting down General 

Mr. Soros's troubles in Belarus can be 
traced to the 1994 elections, when Mr. 
Lukashenko, a former boss of a col- 
lective farm, won an overwhelming vic- 

While Belarus’s previous government 
had stressed national identity and sought 
to free the country’ from Russian control. 
Mr. Lukashenko campaigned on a plat- 
form of reunifying Belarus with the Rus- 
sian heartland and its fellow Slavs, while 
ending corruption. 

After taking office, he set out to re- 
store at least the symbols of Russian 

rule, and appeared determined, one dip- 
lomat said, to make Belarus, a nation of 
10 million people, a “Soviet theme 

This year he and Mr. Yeltsin signed a 
“unity” agreement, ai though it was 
watered down at the Iasi minute at the 
insistence of Mr. Yeltsin’s liberal ad- 
visers, who dislike Mr. Lukashenko and 
fear his right-wing Russian friends. Bui 
Mr. Lukashenko lost no time in (lit- 
erally) rehoisring the red flag. 

“We have McDonald's, but no free- 
dom of assembly.” said Mr. Sannikov. 
the former deputy foreign minister. “ 
This is the new face of dictatorship in 

To express its displeasure. Washing- 
ton has suspended some $4G million in 
aid. Europe, too. has frozen aid. os have 
the World Bank and the International 
Monetary Fund, all so far without visible 
political effect. 

A report in April from the Organi- 
zation for Security and Cooperation in 
Europe accused Belarussians of “con- 
structing a system of totalitarian gov- 
emmem” anti found a “clear pattern” 
that the government was using lax audits 
and fines to silence opposition. 

The report also criticized a referen- 
dum last November that allows the Pres- 
ident to rule by decree, and permits 
random arrests of opposition leaders. 
The new- definition of * ‘order' ' was char- 

acterized as 1 ‘a complete lack of public 
expression of any views not authorized 
by the authorities.” 

It is no accident, diplomats say. that 
the first person expelled from Belarus 
was Peier Byrne, an American who dir- 
ected the Belarus Soros Foundation, 
which finances about 80 percent of the 
country’s tiny independent sector. (In 
Belarus there are 1.115 officially re- 
gistered associations not controlled by 
the government, only a handful of which 
are pol i lical ly active or foreign 

Mr. Lukashenko has set his tax col- 
lectors against virtually every major for- 
eign-supponed foundation, as well as 
the independent news media, arguing 
that they support the opposition. 

Foreign Minister Ivan Amanov ich in- 
sisted in an interview that Belarus was 
becoming more democratic, but slowly. 
He said Mr. Soros had been “let down 
by his staff." who he said were sup- 
porting opposition political groups. In 
addition, he contended, the foundation 
had been ” extremely careless with fi- 
nancial matters.” a charge for which he 
offered no evidence. 

The Inundation has noi financed nor 
will it finance the opposition." Mr. Sor- 
os replied in the interview. "We insist 
on preserving our independence. We 
would like to May m Belarus, but not at 
any price." 

EMU: ' r v'l; 

Weak Euro Signaled 

Continued from Page L . f-fa 

that it. will be born weak. • 

“The forma] policy target of thefn-;^ 
ture European central bank. wiR.W'inr*;-; 
nation, not foe exchange rate,” saidPanf;^- 
Chertkow at Union Bank of Switzerland . P 
Tbe implication, he said, is thatfoeEni&v* 
pean central bank “will refrain froth X 
tightening monetary policy to achieved- 
hard-currency status for foe euro. / 'nr’. 

The weakness of foe mark was 
pedal ly notable late last week, after >4 
Bundesbank President Hans Ttetmeyer . J 
announced Thursday that the marie ’’, 
would remain strong in the run-up toj?: 
monetary union. 

That temporarily halted foe slide^botX 
when it resumed Friday, those who 
covered positions were ag ain heayity^i 
selling marks for dollars and 

“It shows the market’s not coriviL^^- 
that the Bundesbank can resist further 4 
weakness.” said Paul -Meggyesi’Toff 
Deutsche Bank. Monetary policy ctumpt*. 
be tightened to support the currency, fiftj 
said, when German growth remains bo® 1 
slow and largely based on exports.---: 

Mr. Meggyesi said he befieved t 
foe Bundesbank was more conceru^—. 
about the pace of the mark’s slide foaal 
about foe currency’s exact leveL _ X ~ 
“A rapid move versus the dedbr w 
over l .80 DM would elicit more vertfeT 
intervention," he said, adding that thoti 
was not much Germany could do to/ 
prevent it. ■ * 

The dollar ended the week in «•«., 
York at 1 .7770 DM, and about foe ohl 
point over which analysts differ v- 
whether it will gel beyond 1.90 DKg 
before topping out. • " . 

The pound finished ai 2.9987 . 
and analysts forecast a rise, to aL] 

.r05 DM and possibly 3.15 DM. = 

In the bond market, foe spread' bi 
rween benchmark German and. Ifaliw? 
paper narrowed at foe end oflastweekfffj 
9 ! basis points, its smallest in more thanl 
two decades. That was down from i* 
basis points, or 1.44 percentage poll! 
tarely a month ago. Loss dramatic I 
still substantial, the spread betw 
Spanish government andGemtan pau- 
is now 64 basis points. narrdw^froitiT^ 
at the end of May. • ‘ 

The narrowing differentials give 
a partial picture of the extent. ofjiflri? 
rat ues, moreover, because in the Job 
P eriod the yield on German bondsfe$3 
basis points. The only dispute a noi 
appear to have is how low theie^w 
lerentials might go and how soon. 

o' \&p 



;-v » 


MONDAY, JULY 14, 1997 

PAGE 11 

, . n.'-w r • , • 

¥?*& •••■■ 


-WF- '■■ 


.•• 7i**> 

f'jr/.*:' . 

-;W^v . ; 

V- ■■■ 

Peso Jolt: 
Seeks to 
Ease Fears 

Gim/rid by Our Suff From DOpaariet 

MANILA — President Fidel 
Ramos appealed for calm Sunday 
as fears of higher prices and hoard- 
ing swept the Philippines after a 
plunge in the peso. 

“1 am appealing to all our people 
not to be suddenly traumatized by 
these actions of the central bank. 4 
Mr. Ramos said. He said the move 
was not a depreciation or a de- 
valuation but a situation in which 
the central bank was "getting out as 
a market player." 

The Philippine central bank, 
which had been defending the peso, 
relented Friday and said it was al- 
lowing the local currency to seek its 
own level against the dollar. The 
move followed intense battering 
from financial speculators after the 
floating of the Thai baht. The dollar 
promptly rose against the peso, 
closing Friday at 27 pesos, up from 
26.40 pesos Thursday. 

Mr. Ramos said the decision to 
float the peso had been made during 
an ‘ ‘intensive" meeting at the pres- 
idential palace and that the Inter- 
national Monetary Fund and for- 
eign investment houses were 
informed of the move, which they 

The currency crisis is giving the 
IMF its first opportunity to try out 
emergency financing rules intro- 
duced after the Mexico crisis in 
early 1995. An IMF source, who 
asked not to be named, said ac- 
celerated procedures to offer Manila 
a support package of at least $600 
milli on depended on application of 
the rules, which aim to let the IMF 
respond quickly to financial prob- 
lems but take effect only when a 
crisis erupts or is imminent 

The Thai and Philippine cur- 
rency crises have unsettled author- 
ities elsewhere in the region and 
prompted talk that speculators 
might turn their guns elsewhere. 

The Malaysian central bank has 
promised tough measures to defend 
the ringgit, but Indonesia widened 
the dollar-rupiah trading band Fri- 
day, allowing the central bank mote 
room to cope with shocks. 

"Malaysia is next in die firing 
line," said Dimitri Zenghelis, die 
economist responsible for Malay- 
sia and the Philippines at the In- 
stitute of International Finance. 

Meanwhile, analysts said an 
Asian mechanism aimed at main- 
taining foreign -exchange stability 
and staving off speculative attacks 
was proving ineffective in address- 
ing the current currency troubles in 

die region. 

(AFP. Reuters) 

What Price 


•• V ‘y 

French Right Attacks 
Thomson-CSF Decision 

Halting Sale Is Termed a Historic Error 9 

Winners ofFCC Sale 
Lobby for Softer Terms 

By Mike Mills 

Wash in glim Post Sen-ice 

WASHINGTON — Dozens of en 
trepreneurial companies that one year 
ago collectively bid $10.2 billion for 
licenses to provide wireless telephone 
services in the United States — and won 
— are now seeking a government bail 
out in die form of delayed payments or 
forgiveness of part of the debt 

Many of the companies — some of 
which were backed by deep-pockered 
South Korean or Japanese conglomer- 
ates — say they face bankruptcy be- 
cause the market for digital pocket 
phones is too glutted with competitors 
and b anks wifi not lend them the money 
to pay for their licenses or build their 

The scenario devised by the Federal 
Communications Commission, the gov- 
ernment’s biggest auction bouse, can be 
described like this: Suppose Christie's 
auction house had sent out invitations 
for bids on a Van Gogh painting — but 
to encourage broader ownership of rare 
art, the very rich were barred from the 
bidding. To sweeten the deal, Christie's 
allowed winners to pay in installments 
and at low interest rates. 

Then suppose that, months later, the 
winning bidder could pay as promised 
and wanted the auctioneer to accept 25 
cents on the dollar. 

Christie’s would never run an auction 
this way, people there say, nor would it 
entertain such pleas from the winning 
bidders. But the government did, and 
the Federal Communications Commis- 
sion is facing just such a plea. 

The resolution of this problem will 
have a budgetary impact in the United 
States because the government has been 
counting on the money to reduce the 
federal deficit. 

Lawmakers already are ignoring 
signs of a flooded market for commu- 
nications licenses by projecting in 
budget documents that future auctions 
will raise $20 billion over the next five 

; 5 *rv 


- VV^ 



Ray Ludig/Wmbbigiai ftw 

FCC chairman Reed Hundt, in top 
photo, pushes wireless competition. 

Critics say the commission should 
not violate the golden rule of auctions: 
After die auctioneer shouts "Sold!" 
and bangs down the gavel, the winner 
mustpay up. Any decision to give some 
relief would permanently damage what 
generally has been a successful auction 
program at the commission, they say. 

“A bailout is absolutely the wrong 
thing to do," said Daniel Akerson, chief 
executive of the wireless carrier Nextel 
Communications Inc. "Anybody that 
bids from now on would say after they 
win, Tm not paying that much. Why 
should I pay top dollar?' " 

For now, the commission is not say- 
ing what it will do. "Our guiding prin- 
ciple is that we want these people out 
there in the market as soon as possible, 
because competition is good for the 
consumer,” said a spokesman for Reed 
Hundt, chairman of the commission. 

The tale begins in 1994, when the 
commission decided to put on the block 
493 licenses to provide new digital 
pocket-telephone services. 

This auction was special: It was sup- 
posed to carry out Congress's mandate 
to give entrepreneurs with few re- 
sources a chance to compete against the 
telecommunications giants in providing 
cellular phone service. 

Most bidders qualified for 25 percent 

discounts from their winning bids and 
were promised six years of interest-only 
payments at low rates before paying off 
the principal on their debt. 

After numerous delays, the auctions 
finally got under way in December 
1995. Five months and 184 rounds of 
vigorous bidding later, the auction 
closed at prices far beyond what most 
analysts said the licenses were worth. 
Although the winners technically qual- 
ified as small businesses, the top five 
were flush with money commitments 
from such wealthy backers as Sony 
Crap. and East Asian banks. These five 
accounted for 80 percent of the $10.2 
billion pledged. 

The winners bid an average of $40 for 
each potential customer for their li- 
censes — far above the average of $10 
to $ 1 5 paid by established players in the 
industry in a separate auction less than a 
year earlier. 

Why so much? Bidders say being 
able to pay in installments encouraged 
them to raise their bids by 20 percent to 
40 percent They also were encouraged 
by the excellent stock performance, at 
the time, of Omnipoint Corp., one of the 
few small wireless service providers 
whose shares were traded publicly. The 
bidders and their bankers also widely 
believed die value of radio spectrum 

See LICENSE, Pagel5 


PARIS — The government’s de- 
cision to halt the sale of the defense 
electronics company Thomson-CSF is a ' 
"historic error, a former key French 
official said. 

Francois Fillon, who was technology 
minister in the center-right government 
tiiar launched the Thomson-CSF privat- 
ization last year, said Saturday mat the 
sale of the government’s 58 percent stake 
was strategically important and that halt- 
ing it would relegate France to the minor 
league of Europe's defense industry. 

"Lionel Jospin is committing an er- 
ror, a historic error, for which he will be 
accountable to the French people," Mr. 
Fillon, referring to the prime minister, 
said on Europe 1 radio. 

Mr. Fillon hinted that President 
Jacques Chirac, who wants Thomson- 
CSF to be the French champion in a 
restructured defense industry, might in- 
tervene in the debate when he gave the 
traditional Bastille Day television in- 
terview Monday. 

The forma- technology minister stud 
the new Socialist-led government’s de- 
■ cision, announced Friday, flew in the face 
of the trend in the defense industry to- 
ward forming alliances in Europe to meet 
competition from the U.S. industry, 
which has been strengthened and restruc- 
tured by a series of massive mergers. 

"As for us, we choose to turn in on 
ourselves and force Thomson to play in 
the second division," he said. 

He said that France, now battling to 
reduce its budget deficit to qualify for 
the European single currency, lacked 
the resources to invest in Thomson- 
CSF’s growth. 

Mr. Jospin's government said Friday, 
six weeks after being elected, that it had 
halted the privatization and would pro- 
pose an alternate plan for a French de- 
fense electronics conglomerate 
centered on Thomson-CSF. 

The government said it would keep a 
"decisive" public stake in Thomson- 
CSF but did not say how big such a share 

might be. 

A spokesman for Mr. Jospin declined 
to comment on a newspaper report that 

the government might still forge a part- 
nership between Thomson-CSF and 
Alcatel Als thorn, one of two concerns 
groups that had bid to buy the defense 
contractor outright 

The spokesman said no final de- 
cisions had been taken. 

The report in the newspaper Le 
Figaro said Mr. Jospin was leaning to- 
wards organizing Thomson-CSF with a 
state stake of some 40 percent, a share of 
20 percent to be traded on the stock 
exchange and the rest to be dominated 
by Alcatel and its partner Dassault , the 
private French warplane manufacturer. 

The afternoon daily Le Monde said 
the government would not sell its own 
stock in Thomson-CSF but had not 
ruled out seeing its stake in the company 
reduced below 50 percent through ex- 
pansion of its capital or creation of a 
new joint entity. 

Thomson-CSF, which makes radar, 
missiles and avionics, is seen as a vital 
part of a European defense-industry 
consolidation in response to cuts in de- 
fense spending ana the rapid U.S. re- 
organization of its industry. 

It had 1996 sales of 36.27 billion 
francs ($6. 1 5 billion). 

Le Monde quoted Mr. Jospin’s aides 
as saying the government had not yet 
decided whether to allow alliances be- 
tween Tbomson-CSF and other Euro- 
pean defense firms at the same tune as it 
changed its structure or at some later 

GEC PLC of Britain has been named 
as a possible future industrial partner. 

Nicolas Sarkozy, a right-wing 
Gauliist party spokesman, warned that 
European defense alliances might now 
go ahead without French involvement 

Some defense-industry analysts said 
the new government's decision had left 
the French defense industry potentially 
isolated in Europe. But the Communist 
Party daily l'Humanite praised the de- 
cision to halt tiie sale as "a breath of 
fresh air" tint proved that die gov- 
ernment was reaoy to honor its electoral 
pledges. The Communists are junior 
partners in Mr. Jospin’s “pink-red- 
green" coalition. 

Pin-is Holds Key in Telecom Lint to Germany 


PARIS — The chairman of France 
Telecom has said a share swap with 
Deutsche Telekom AG of Germany 
would bolster an alliance between the 
two operators but that a link-up will 
depend on the new French govern- 
ment’s stance on privatization. 

Micbel Bon, chairman of France 
Telecom, told.the newspaper Journal du 
Dimanche that a share swap was topical 
because of Bonn's agreement last 
month to sell some of its remaining 
shares in Deutsche Telekom. 

“Such an exchange would reinforce 

our alliance with them.” Mr. Bon said 
of the German company. “But this op- 
eration depends on the government’s 
derision on opening up France Tele- 

Deutsche Telekom said last month it 
had entered into negotiations with 
France Telecom over a possible share 
swap. But the French concern imme- 
diately denied this, saying discussions 
’ had been regular but informal. 

Ranee’s six-week-old Socialist-led 
government is considering whether to go 
ahead with the previous center-right gov- 
ernment's plans for a partial sell-off of 

France Telecom. It has hinted that the 
sale may go ahead if the company’s 

employees are consulted and agree to it. 

The planned sale, of a 30 percent to 35 
percent stake in Ranee Telecom for 

around 50 billion francs ($8.34 billion), 
was suspended after the left's victoiy in 
the find round of parliamentary elec- 
tions June 1. 

Mr. Bon declined to comment on the 
merits of privatization, saying this was a 
matter for the government. He has been 
quoted as saying the suspension of the 
sale last month was a setback but not a 

Central and East Europeans Want a Strong Euro 

By Peter S. Green 

International Herald Tribune 

European Union governments 
are finding it increasingly dif- 
ficult to meet the fiscal re- 
quirements for a single Euro- 
pean currency, several 
countries in Central and East- 
ern Europe say that not only 
will they be ready for mon- 
etary union, but that the euro 
had better be strong enough to 
make it worthwhile. 

"From the technical con- 
ditions, we are ready to join the 
euro today," Latvia’s central 
bank governor, Einars Repse, 
said at a conference here last 
week. But for it to be wrath the 
effort, he said, the euro 
* ‘should be at least the same or 
more stable” than the Latvian 

currency, the lat, is now. 

The EU is expected to be- 
gin talks soon with five Cen- 
tral and East European states 
— Poland, Hungary, Slove- 
nia, Estonia and the Czech 
Republic — on joining the 
Union by about 2005. Only 
about seven years after they 
abandoned Soviet-style cen- 
tral planning fra free markets, 
several countries in the region 
are closer to meeting the cri- 
teria for the euro than many 
existing Union members. 

Poland, for instance, has 
cut its budget deficit to 2.8 
percent of gross domestic 
product, beating the 3 percent 
limit set in the Maastricht 
Treaty for those wishing to 
join a single currency. 

Hie Czech Republic has 
kept inflation below 10 per- 

cent, and even fiscally lag- 
gard Hungary expects to bring 
inflation and public debt be- 
low Maastricht requirements 
in the next few years. 

Latvia, by pegging the lat 
to the International Monetary 
Fund's special reserve cur- 
rency, has brought govern- 
ment debt down to 1 5 percent 

of GDP, compared with the 
Maastricht treaty's limit of 60 
percent of GDP. 

Joining the European Un- 
ion and then the single cur- 
rency is important for Eastern 
and Central European coun- 
tries because EU countries ac- 
count f or more than half of the 
international trade of many of 

the region’s economies. 

“The dependence of Cen- 
tral and Eastern Europe on the 
EU countries is permanently 
growing, and for our small, 
open economies, what is es- 
sential is a more or less stable 
exchange rale.” Josef Tosov- 
sky. governor of the Czech 
National Bank, said. 


Schumacher's Choice 

Java Is a Loss Leader for Sun 

Paul Floren 

Special to the International Herald Tribune 


Cross Rates 

* I . UL F/. lira OJFt IF - . . IF. Vta . O *»•*. 

U2|j jug) mgs g.114 — SA 134*5 1750* 1453 
Bnrutfc 3430 SUP *4*1 6.105 1*71 7" 1&337 — .24*575 USB. 7451 74*6. 

FnmkfiMf UM1 190*7 — 1256? IMS’* tUOB 4MJ 1*81 

lomdbm low* — un hub.mmi imh a** umnum. ucu a»n 

mhh uun vm tun mot im tub *m wm im ik*5 — 

Mha L7117D UflUO JJ5JB 30450 — 8&M0 OX MAW 1500 M*J> 113* 

NtwYrakM — UW" 1J77 UOB 172100 MOB 3453 U4B 11396. lMH 1*8*1. 

Parti 45501 10096 13)0 — 03 if USD HK37 *5017 533*4 *3« 40005 

Ttftya 106 191S. 5174 !U4 140 5753 1«3. A21 — , BUS 

Taiaato MMofcdt 

Zorich 155 2X759 M2S3 MU 0** 07332 IKK — 13877 IM* tStlt 

1 ECU 1323 05517 15775 4017 152590 122** *0*253 11358 1274*7 15377 IOJB9 

1 SDR 13953 (3292 7X357 12072 17*0 50.108 23337 *50019 1 9115 705515 

O 0 stn 9 stnAmaenkm.LmkM.Maan, Puritan* Zurich, fixings in other osnterv New tor* 
nnes at 4 PM. and Toronfo rates at 3 PM. 

tt To bay one pound; it To bay one Mian Unis at tOOe HQ - - not NAj not 

Other Dollar Values 

OmMCT pwj CKRKV PWJ Conner P«rS Canaan/ P«S 

Argent peso APSW Greek Oroe. 376JU Max. peso 7-B71 S. Mr. rand 4555 

Attdrahoni 13*59 Hoftg KeagS 7.7458 ILZaatandS M939 S.Knr.woa BKM0 

Avtliu&clfc 12383 HMUortat 1»38 Nww.towra 7-378S SseAkiun 7J327 

Brail md \am KxSaornMM 35-47 PULpm 27J» Trims 

□Asm yuan 6L3213 IMhrapMi 2432.75 PaHtrirty 3J0 Tumbril 38.93 

Cttcbtonau 33J72 IrteftS (U560 ponescnto 177.44 TWtohBra 150570. 

Dunn true 6.705 bmfiriek. 15521 8o»nH* 5773JS UAEtirfem 3J5705 

Efyptpond 33938 Km dinar 02998 SMfiriyol 3-75 Veo«.ba*hr. *88.75 

Fin. markka 53285 Motor, ring. 2-50* Sing-S 1-4364 

Forward Rates 

Canwey BHtov 40** 9M»jr Cancacr «-ri|r 

Poond String i.tf59 14941 10»4 - JoporaMyn 11335 1074 11238 

OmAs donor 13«4 13*38 1J«I5 Swiss franc !.44» 1-4444 14393 

DMKhcoMTfc 1.75*8 17530 1.7493 

Sources: INI J Ban* (Arastonfamt’ bxtoswr Bank (Brussels!: Banco CommenMe 
itnHano (t * ftmfc Bangucoe France (Parts!; Bank o/Takya-MUsobani (Totya): 

P ARIS — Going door to door in a 
hostile land, they are on a mission and 
fulfilling it with a zeal surprising even 
for the software industry. Sun Mi- 
crosystems Corp. preaches the good word 
about Java from the tops of the highest moun- 
tains of corporate finance to the depths of 
Silicon Valley; and the company is practically 
giving it away. 

Sun Microsystem’s Java programming lan- 
guage has been on the tips of tongues in the 
industry for over a year now and has already 
convinced a half-million developers that it is 
the language of the future. Yet, except for a 
few licensing fees from International Busi- 
ness Machines Corp., Oracle Corp. and a 
handful of others. Sun hasn’t made money on 
sales of its brainchild. 

Sun’s evangelists will tell you thai Java 
belongs to the whole industry and that ils use 
will benefit the entire personal -computer mar- 
ket. But behind all the talk is some solid 
marketing sense: The purpose of Java “is to 
sell Sun servers," said Amy Porter, European 
marketing manager .for the company. 

Sun ’s strategy is to create a dynamic cross- 
platform standard that runs best with the com- 
pany’s hardware behind iL IT Java helps Sun 
corner the server market, the company will 
have ouldone even Microsoft Corp. in 
strategy by creating a standard for.both hard- 
ware and software. 

“Java has several advantages for Sun.” 
said Arthur Hnchberg, principal analyst at 
Dataqucsl, an industry research firm. “It in- 
creases their reputation, provides an alternate 
mode! to Microsoft and provides a marketing 
push for the sale of their hardware.” 

For Sun, Java is a means to the end of 
increasing Sun’s market share in medium- 
sized and large computers that are the back- 
bone of local and wide-area networks. 

"Sun is betting that the Java operating 
system will end up in a lot of consumer 
electronics,” Ms. Porter said. 

That bet already is paying off. Nomura 
Securities Corp.’s London operation is in- 
stalling 1.500 network computers that use a 
Java operating system, and the backbone of 
France s GSM cellular telephone network is 
powered by Sun servers. 

Sun also has licensed Java for use in smart 
cards, which are plastic cards embedded with 
an integrated chip containing user informa- 
tion. Java allows the cards to be reprogrammed 
in seconds, allowing a cardholder to do 
everything from download electronic cash to 
change personal identification data. While 
Sun isn’t making any money on pushing the 
Java language, it expects to earn plenty selling 
the hardware to back up smart-card systems. 

GemPlus SA, the biggest smart-card maker 
in the world, estimates it will ship 3 billion 
cards by 2000. As smart cards gain in pop- 
ularity, so will the demand for terminals in 
which to use them. Sun has been making 
software for IS years, employing more than 
3,000 programmers. But of that number, only 
500 work on developing Java. Sun says it has 
worked lo make Java as easy to use and prac- 
tical as possible. The company hopes to offer 
an alternative to the industry giant. Microsoft. 

So far. Sun’s marketing strategy seems to 
be working. The company reported record 
sales of $2. 1 billion in the quarter thut ended 
March 30, and it says sales for the quarter (o 
June 30 will continue that trend. Its fourth- 
quarter results are expected this week. 

Internet address; L'yhvrspaee&iht.voin 

Speedmaster Automatic 
Day-Date, AM/PM. 

OMEGA — Swiss made since ib*6- 



The sign of excellence 




Funds Now Buy More Junk Bonds, OECD Says 

By Carl Gewirtz 

tntemaiionul Herald Tribune 

PARIS — It’s no secret that Belgian 
dentists, those archetypical retail pur- 
chasers of Eurobonds'when the market 
developed in the 1960s, were long ago 
elbowed out of significance by pro- 
fessional money managers. 

But who these institutional investors 
are, how much money they manage and 
what they buy has never been measured 

— a data gap that the Organization for 
Economic Cooperation and Develop- 

Economic Cooperation and Develop- 
ment now aims to fill- 
in its Financial Market Trends pub- 
lication, it repons that the activity of 
these "dominant holders of financial 
assets" will now be covered in a new 

publication, called Institutional In- 
vestors — Statistical Yearbook. 

Although there is no breakdown on 
the activity in international markets of 
these investors, the OECD report links 
the small, rapidly growing market for 
high-yield “junk bonds" to the evo- 
lution of the investor base. 

“International investors, including 
institutional investors, are increasingly 
willing to take die risks inherent in 
emerging market issues," the report 

This increased appetite for risk in 
exchange for higher income was evident 
in the first four months of this year, it 
says, when recourse by non-OECD 
countries to international financial mar- 
kets rose 50 percent from a year earlier. 

to the equivalent of $55.6 billion, 
the first edition of the statistical 

average of 1 6 percent annually in the six 

ions . • , 

yearbook, which covers a period ending 
in 1995. shows $23 trillion of securities 
in the hands of insurance companies, 
pension hinds, investment companies, 
endowment funds and foundations. This 
is more than a 60 percent increase from 
1990. The growth reflects both in- 
creased institutional sayings and the rise 
in value of assets held by these in- 

The single most important category is 
insurance companies, with just over SS 
trillion. Pension funds have assets of $6 
trillion, and investment companies — 

running a close rhird and rapidly gaining 
— held $5.5 trillion. Assets held by 
investment companies increased by an 

years ended in 1995, compared with an 
average of 10 percent for insurance 

Investors Whit for Retail-Sales Data, 
But Many See Market Gaining Further 

_ r .. rinsed the previous Friday, but 

companies and pension hinds. 

By nationality, the largest institution- 
al investors are American, with assets of 
■$11.3 trillion in 1995, followed by the 
Japanese, with the. equivalent of some 
£4 trillion, held mostly by insurance 
companies and trust banks. 

Britain leads in Europe with the equi- 
valent of about $1.8 tnllioh, mostly in. 
the hands of insurance companies. 

In France and Germany, noldings of 
institutional investors are $1 trillion 
each, followed by the Netherlands with 
$620 billion, Switzerland with $388 bil- 
lion and Luxembourg with $370 bil- 

a was closed the previous Friday, but 

NEW YORK — Low inflation and y«ld 2 7 teve? ***** 

continuing good- news forstockm-- ^ CQncern that June, 

vesm^iitelytonudgeUS LTJeas- dm, doe Tuesday, will 

ury bond pnces even higher this weelc. . ^ piclolp „ consumer ipend- 

pL tav e soared and the ing £■ &**£££?- 
yield on the benchmark 30-year issue bra<^ for • a ■ &&&'■ portfolio 
has tumbled more than 20 basis points 

over the past two weeks, and investors Bank of America, said he 

said the market .may rest for at least a 

short while after that rapid advance. wa * because consumer 

The 30-year bond finished Friday at a outlook. .- the . 

yield of 6.53 percent, continuing the spending ^ay , mar j ce r bu^e 
downward drift associated wSE an 

unprecedented six-month fall in the remains bullish on Treasury issues in 
U.S. producer price index. The market the long term. 

Most Active International Bends 

New International Bond Issues 

The 250 most active international bonds traded 
through the Eurodear system tor the week end- 
ing July 11 . Prices suppbed by Tetekuns. 

Rnk Nome Cpn Maturity Pries Yield Rnk Name Cpn Maturity Pries Yield Compiled by Charlotte Sector 

Rnk None 

Cf» Maturity Price YKM 

Argentine Peso 

174 Argentina FRN 3.693604*1/07 110.1000 3J500 

Austrian Schilling 

5^ 07/15/07 100.3000 5.6100 

Belgian Franc 

132 Belgium 

9 03/28/03 120.7000 7.4600 

British Pound 

170 Fed Home Loan 6^ 06/07/02 90.0000 7.0200 

231 Britain 7 11/06/01 99.1250 7.0600 

247 Hyder 9H 08/19/16 113 8,4100 

Canadian Dollar 

71* 0601/07 109.4387 6.6200 

Danish Krone 

5 Denmark 
16 Denmark 
22 Denmark 
26 Denmark 
31 Denmark 
43 Denmark 
47 Denmark 
49 Denmark 
62 Denmark 
72 Nykredil 3 Cs 
74 Denmark 
88 Nykredlt Bank 
B9 Denmark 
98 Denmark 
105 Real Kredlt 
144 Nykredit 
157 Denmark 

8 03/15/06 

7 11/15/07 

8 05/15/03 

7 12/15/04 

8 11/15/01 

7 11/10/24 

9 11/15/00 

9 11/15/98 

6 12/10/99 
6 10/01/26 
£ 11/15/02 

7 10/01/26 
7 02/15/98 

6 02/1599 
6 10/01/26 

7 10/01/29 

7 08/15/97 


















93 Germany 
97 Germany 
100 Treuhand 
102 Germany 

106 ING Bank 

107 Germany 

108 Germany 

110 Germany 

111 Germany 
114 Germany 

121 Germany 

122 Germany 
12S Germany 
129 Treuhand 

138 Germany 

139 Fed State Saxon 
145 Treuhand 

148 Treuhand 

149 Commerzbank 
163 Germany 

173 World Bank 
7 76 Volkswagen 
177 Treuhand 
179 Germany 
182 Germany 
1 84 Germany 
1B5Freislaatn Bay 
190 Germany FRN 

202 Germany 

203 Treuhand 

204 Germany FRN 
211 Cap Credit Card 

21 7 Germany 

21 8 Germany 
222 Germany 
230 Germany 
232 Germany 

236 Germany 

237 German States 
240Weslfbei Hypo 
242 Ekspartfin A 

6*i 07/15/04 1 094700 
3W T 2/1 8/98 1005400 
5Va 09.44798 102.7300 
6 02/20/98 1014900 

6 07/04/07 1020000 

7 12/22/97 1014900 

Italian Lira 

Amount ■ 

CmiHions ) 

Coup. Pike 

Mat. % Price, end 

Vn 10/20/97 101.1900 

12 Qs/oi/ 02 123.7750 9.7ooo Floatina Rote Notes 

91* 02/01/01 111.20 85400 

81* 08/01/99 1045200 8-1500 Bonkers Trust 

7 01/1 3/00 107.8300 

6 1 * 12/02/98 104.7400 
615 01/02/99 1044300 
8'i 07/21/97 100.1417 
7Vi 10/21/02 111.9633 
6V» 01/20/98 101.7860 
0812098 102.7200 
6’t 05/20/98 99.1620 
5 01/14/99 1024000 
SVi 05/28/9? 104.1200 
SXi 07/09/07 1005500 
6V« 06/25/98 102.7600 

7 11/25*99 1075800 
3.150001/12/98 100.0000 

8 09,22/97 100.9400 

5 12/2503 1005500 

7 Vi 04/12/05 111 

4.850002/28/01 98.3203 
6'i 07/29/99 1055471 

6 10/2093 1035300 
7' j 01/20/00 1084000 
51i 0B/2O/97 1003800 
6 10/30/06 1 02.9600 

2^70709/30/04 99.1400 
6^ 06/21/99 106.0650 
5*i 04/29/99 103.9900 
2.950004,36/00 994800 
' 5*a 0815/01 1004458 
6*1 08/14/98 1035400 
8 1 ; 05/22/00 113.0700 
5<4 1Q/20/9B T 024200 
71J 02/21,30 109.8100 
5to 02/2299 103.1050 
Zero 07/04/27 13.9550 
6'«i 08/21/06 104.9400 
SW 09,13/99 103.7100 
zero 12/17/01 79.9964 

Japanese Yen 

0.20 loa.oo — 

175 World Bonk 
178 World Bank 
189 Italy Class B 
210 Spain 

4 03/2Qi33 1139s 3.9500 

AM 12/20/04 117% 4.0500- 

5 12/1534 117V, 4.2600 ■ 

3.100009/20/06 1044250 2.9600 

Housing & Commercial 

0-27 100.00 — 

Money Store Global Grantor 

0-10 100.00 — 

Ovw3-fnantti Ubor. CafiaHe ai par from 2M2 when Interest is OJSowrJ-mwitti Lfcor. Fees 

fljgfe. Penoml naW one llttOOO. (Be ar SteomsJ ■' ; [ l 

Over 6- month Libor. Semrarmuofly. NoncoUable. Fees 050%. (YomnleW.} r_ 

Reoffend at 99.95. Over 3-mantti Libor. Redeemable tfporonnwfy Fees.0.7(«h (ABN -AMRO 

Hoore Govetij : ' 

Over T- month Ubor. NcmoaUaWe. Few 0525 l *>. Oenommatlons £10000. fSaknnon Brothers.) 

Portuguese Escudo 

188 Madeira Regtao zero 07/1036 1015949 0.0000 
214 Bcd PartuQ ires zero 013737 1005000 0.0000 

Svenska Handelsbanken 
31 Holdings 

to 100.04 - 

0.10 99.64 — 

South African Rand 

Chester Assets Receivable 
Dealings No4 

0.80 100.00 — 

Zero 06/17/27 33060 12-0500 

Midland Bank 

fiber 100.00 — 

Bacob Overseas 

0.325 997/8 — 

Below 3-morffli Llbar. Fees 050%. DenernlnaHore SI 00000- (Chose Manboltwlimj 

Over 3-mortti Ubor. Fungible with outstanding Issue, ratelng total amounrto £200, Fees 055%. 

Denominations £100500. (SBC Warburg.) 

Owr3*month Ubor. Reoffered at 9959. NonealaWe. Fees 0319*. DenomlmrlfaiTS E10O0WL 
(Barclays da Zoete WeddJ ' 

Interest wHJ be tt»3-fflonBi Ubor. Nonarita ble. Fees M2Pk IHSBCMaiketo.) : 

OywJ-manfh Llbnr. Coflobta ert par from 2002. Fees 040%,. (Deutsche Morgan GrwtfoBJ 

Spanish Peseta 

1 13 Spain 
135 Spain 

64* 04/15/00 104-3560 64700 
7.9000 02/2832 1 09.9940 7.1 BOO 


Banco BMG 

9^ 99.89 - 

Redeemable at par ki 2000 andin 2002. Fees not disdosed. Denominations SiatUX (Bank 

Swedish Krona 

Bank Austria 

6<M 101585 9945 

120 Sweden 
123 Sweden 

127 Sweden 1036 10W 

180 Sweden 
205 Sweden 
220 Sweden 

01/21/99 109.1440 10-0800 
04/1232 99 JO 90 55100 
053530 1135500 9.0400 
023935 98J876 6.0700 
10/2536 1005500 64500 
053533 1214910 84400 

6V» 99487 99.60 

Reoftered at 99.96. NanaUtaMe. Foes I Generate BcnkJ 

Semkmnuofiy. NancaSoble. Fees not Asdosed. (Merrill Lynch. J 

Credit local de France 

6'3 99.98 99.95 

NoncaQable. Fungible wSftt outstanding issue, raising tala! amount ta S15 billion. Fees 0275%. 
(Nomura lirtU 

Credit Suisse Financial 

614 101.295 100.05 Reoftered ot 99.92. Noncota We. Fees lWb. (Credit Suisse Flnl Bostan.l 

U.S. Dollar 

Daimler-Benz N. America 

5lt 97.038 99J5 

Dutch Guilder 

Deutsche Mark 

1 Germany 

2 Germany 

3 Germany 

4 Germany 

7 Germany 94 

8 Germany 

9 Germany 

10 Germany 

11 Germany 

1 3 Bundesobllgatlon 4W 

74 Germany 
15 Germany 

17 Germany 

18 Germany 

19 Treuhand 

20 Germany 

23 Germany 

24 Germany 

25 Treuhand 
28 Germany 
30 Treuhand 

32 Treuhand 

33 Germany 

34 Germany 

37 Treuhand 

38 Germany 
42 Treuhand 
46 Treuhand 
48 Germany 

50 Germany 

51 Germany 

52 Germany 

53 Germany 

54 Italy 

55 Germany 

56 Germany 

57 Treuhand 

58 Germany 

60 Germany 

61 Germany 
63 Treuhand 

65 Germany 

66 Germany 

67 Treuhand 

68 Treunand 

70 Germany 

71 Germany 
73 Germany 

76 Germany 

77 Germany 
7? Germany 

80 Germany 

81 Germany 
87 Treuhand 
90 Treuhand 

073437 103 JO 71 
013437 102.3200 
043636 1 05.5875 
01/2V02 1144900 
013434 97.0944 " 
06/18/99 96.5092 
08/2031 103.0500 
03/19/99 1005600 
02/2232 1005029 
013335 112.7900 
05/1235 109.5875 
10/1435 1074500 
01,3536 104.0017 
093934 113.8600 
07/2232 1132161 
11/2031 101.7575 
10/2030 115.0280 
073933 108.9940 
05/2131 103.1660 
06/1133 1094387 
103132 114.1400 
02/1636 103.9500 
12/2030 115.1400 
05/1334 1094833 
08/2230 101.3435 
123232 112.5900 
01/2933 107.3829 
11/1134 113.9600 
08/2130 113.0600 
05/1530 1054300 
02/2031 114,2400 
1 1/2130 1034800 
07/1037 1004786 
05/20/99 104.7700 
08/2031 116.5800 
11/1233 105.7180 
09/16/98 100.3000 
03/1530 106J400 
07/1533 1084600 
0731/99 1054200 
04/2233 1094760 
05/2131 1144631 
04/2333 1084160 
033434 106.8280 
09/1533 106.1700 
12/2032 107.3960 
09/2031 7144642 
07/2030 1135500 
01/2231 115.7900 
02/2131 100.1240 
09/15/99 1065769 
0*30/16 984333 
12/1738 984584 
03/26/98 102.0700 

41 Netherlands 
44 Netherlands 
78 Netherlands 
82 Netherlands 
94 Netherlands 
101 Netherlands 
109 Netherlands 

117 Netherlands 

118 Netherlands 

141 Netherlands 

142 Netherlands 
147 Netherlands 
154 Netherlands 

158 Netherlands 

159 Netherlands 

160 Netherlands 
168 Netherlands 
16? Netherlands 
186 Netherlands 

193 Netherlands 

194 Netherlands SP 
198 Netherlands 

21 5 Netherlands 
245 Netherlands 
250 Netherlands 

6 ‘.4 07/15/98 
5^ 02/1537 
71-j 01/15/23 
EVi 03/1531 
5*4 09/1532 
9 01/1531 
7 03/15/99 
6’* 07/15/98 
P.1 06/15/99 
7*. 033135 
S** 01/15/04 
8'< 06/1532 
8>l> 02/15/02 
6U 02/15/79 

6 01/1536 

7 06/1535 
6A» 11/1535 
BV* 02/1537 
7Vj 04/15/10 
6k. H131/90 
Zero 01/15/23 
6H 04/1533 
7tt 103134 
8V= 063136 
9 05/1530 




11 5U 



104 J500 
111. 0500 


6 Brazil Cap 5.L 4W 04/15/14 94437* 4.7600 
12 Argentina par L 5V> 03/31/23 73.1 B8B 74100 
21 Brazil 10Va 05/15/27 99.0000 10J2300 

7Vb 99415 — 

IBM IntemaOcmai Finance 

6*a 101.239 100.05 

27 Argentina FRN 6** 03/2935 92J397 74200 

29 Mexico 
35 Brazil porZI 

11(4 05/15/26 119.1047 94600 
5 Vi 04/15/24 70.0016 74000 

36 Venezuela FRN 6M 12/18/07 934700 7.2200 

39 Argentina 

40 Brazil FRN' 
45 Brazil L FRN 

114« 01/30/77 115.9604 94100 
6<V« 013131 77.6524 8.7700 
04/1536 92.0700 74700 

59 Venezuela par A 6M 03/31/20 81.8113 84500 

10 06/2637 102.7237 9.7300 

Philip Morris 

Swiss Bonk Carp. Jersey 


UBS Finance 


7 99486 99.90 

6 100.8025 99.72 

10'6 99446 — 

57* 100.952 99 JO 

69 Brazil S-Zi FRN 61ft 04/1534 86.1100 7.9800 

75 Mexico par A 6li 12/31/19 80.7500 7.7400 
84JFCME 61* 0733/07 100 J750 6.6900 

85 Bulgaria FRN 6»» 07/28/11 76.3861 84900 

86 Ecuador FRN 3'i 02/28/15 68.9499 4.7100 

91 Argentina FRN 6*ft 03/31/23 69.1250 7.7100 

92 Brazil S.L FRN 6'9i» 04/15/12 83.7963 8 J800 

99 Banque Paribas 5'/< 073932 994500 54800 
103 Mexico par B 6'm 12GI/19 804*50 7.7500 
112 Ecuador par 3'ri 0238/25 50.0000 7.0000 
T16 Mexico 9*» 01/1537 1074335 9.1700 

126 Peru 3'* 0337/17 60.7500 54500 

128 Brazil Cband S.L 4'ft 04/15/14 934771 44100 
130BcaCom Ext. 7Vi 023234 94.6794 74600 

133 Brazil S.L FRN 6>W 04/1539 88.4400 74400 

134 BNG 6*» 07/0832 1004000 64400 

136 Bulgaria 2» 07/28/12 61.1250 34800 

140 Russia 9'* 11/2731 1024898 94100 

143 Mexico FRN 7.054606/2732 100^000 7.0400 

1 50 Taiwan Semicon zero 073332 1054900 1.0500 

151 Bulgaria FRN 69m 07/2»24 76.9688 84300 

153 Mexico lUft 09/15/16 1161ft 9.7300 

155 Ecuador FRN 6*» 02/28*25 73.9350 8.7100 

156 Bayerische LB 6*.ft 06/2537 1004250 64800 

167NJ\merSuburi 6V> 06/2032 99.7467 64900 
172 Poland FRN 6% 1037,24 984125 7.0600 
183 Canada 6lft 053030 101480) 6-4200 

187 1 AD B Mft 06/2732 11HU573 6.3500 

191 Asset Backed 5n*i, 07,38/98 100.1000 5.6800 

192 Ecuador FRN 3(i 0238/15 73.7762 44100 

195 Argentina FRN 043131 129.3000 4.4200 

196 Nigeria 6U 11/1420 70.7525 84300 

197 Mexico B FRN 6.835912/31/19 94.6250 6.0200 
199 Venezuela par B 644 03/31/20 81.9375 84400 

83 France OAT • 

95 France OAT 
104 Britain 
124 France OAT 
137 France p.TA.N. 
146 France OAT 
152 France OAT 
162 Britain T-bills 
164 Italy 
181 France OAT 
201 France OAT 

208 France OAT 

209 France BTAN 
213 Italy Cle 

219 France OAT 
224 Italy 

239 Britain T-note 

5W 04/2537 
6 04/25/04 
9' ft 02,2131 
8'ft 03/1532 
6 03/16/01 
Tn 04/2535 
fli„ 04/25/22 
zero 1211/97 

6 04,3234 
9'! 04/25/00 

7 04/2536 

70 022631 

5 03/16/99 
6 V: 09/26/98 
6-i 04,7532 
9‘* 0337/11 
5 01/26/99 


















7% 99462 - 

5Vj 100.00 ™ 

54 1004438 - 

NoncoUable. Fees I W%. (CammerztXBJkJ 

Semiannually- NoncaPable. Fees 0425%. DenominatiDns SI Q.0M. U.P. Morgan.) . 
Reaflfcied at 99464. NoncoUable. Fees 1 (ABN-AMRO Hoore GoverU 
Noneoltabto. Fees 041 251L (Menu Ly ndO 
Reoftered at9941 5. NoncoUable. Fees 1W%- (SBC WarbuigJ ~ 

NanaiabtaL Fees 1 UP Morgonj ~~~~ 

Reoftered at 99452. HoncollobJe. Fees I (UBS.1 
Noncaltable. Fees 1%. Denominaltons slOOOnUjNG Barings.) . 

NoncoUable. Fees 1 14%. (Dohva EuropeJ • " 

NoncoUable. Fees 0464%. (Wako IrrtU 

Bank fuer Arbeit und 

4=y 102.22 99.83 Reoftered at 99.97. NoncoUable. Fees 2W%. (Boyedsche Landesbank GtrazentroleJ 

Beta Finance 

Citibank Credit Card Master 
Trust I 

AVi 101.08 
SM 102.355 

Reoftered at 9943. NoncoUable. Fees 2%. (SBC Warburg.) 

— Reoftered a> 994& NoncaBaWe. Fees 3%. (Merrill Lynch.) 






5 101.02 

Reoftered ert 99X17. NoncoUable. FeesZ’Mfa. (Bayerische VereinsbankJ 

5% 101.851 — Reoftered at 99401 . Noncaltable. Fees 3%. (Credit Suisse Fbsl BostanJ 

134 BNG 
136 Bulgaria 
140 Russia 
143 Mexico FRN 

Japan Finance Corp. for 
Small Business 

4'4 101.685 

Reotfened at 99-685. NoncoUable. Fees 2V%- (Bank of Tokyo Mitsubishi) 

Landesbonk Schleswig- 
Holstein Finance 

5*t 101.725 

Reoftared at 9945 NoncoUable. Fees Tffk. (SBC Warburg) 

Dresdner Finance 

7M> 101.456 

Reoftered at 99431. NoncnflaWe- Fees 1'*%, (Dresdner KlehroriBensonJ 

172 Poland FRN 
183 Canada 

191 Asset Backed 

192 Ecuador FRN 

195 Argenlina FRN 

196 Nigeria 

General Electric Capital 

7l4i 100.85 — Reoffered at 9945. Fees 1<ft%. (UBS.) 

Kredletonstalt Fuer 
Wledermrfbau Inti Finance 

7Vi 101.367 — Reoftered at9949Z Noncnflable. Fees 2*1. (HSBC MarketsJ 

Banque Paribas 

1 01 .275 

Reoftered at 9965. Noncalabfe. Issue may be redenominated In euros after EMU and fongiUe 
with the two othertranches. Fees 2%. (Paribas Capitol MorkefeJ 

Council of Europe 

5V: 101415 

Reoftered at 99J4. Noncaltable. Issue may be redenominated in euros after EMU. Fees 2%. - 

Finnish Markka 

lol Finland 1999 
212 Finland 

11 01/15/99 110.4736 9.9600 
9': 03/1534 122.6738 7.7400 

200 Argentina 11 103936 U3k> 94900 
206 Canada 6* 047836 102.1626 6-6100 

221 Mexico A FRN 6J67212G1/19 94.8125 77400 
223 Argentina Ban 81* 053932 101.2050 8.6500 
226 Mexico D FRN 6R'i& 12/28/19 94.8257 7.1800 

227 Fin For Danish 6** 06/1331 101.0000 6.6800 

228 Panama FRN 4 07/17/16 88.6250 44100 

229 ING Bank FRN 5.96880737/98 99.8780 5.9800 

234 Ekspartfin A/s zero I23&97 97.0482 74600 
238 Peru Pdi 4 0337/17 66.1250 6.0500 

Nancaltabtei Fees 045%. (Left man Brothers IntL) 

MBNA America European 
Structured Offerings No. 2 

5*i 99434 

NancaJIa Pie. Fees 0425%. Denominations 1 00400 francs. [IP . MorgonJ 

Reoftered at 99483. NonadJaWe. issue may be redenon d nated In euros after EMU.' FeestWH. 
(BNPJ . . 

French Franc 

241 Brazil S.L FRN 6^ 04/15/12 84.0771 82500 

Abbey Notional Treasury 


6 101J6 

NonadfaWe. Fees 1WL. iCredito ItaltanoJ 

96 FranceOAT 
165 France BTAN 
233 France OAT 

5'j 04.7537 100.7800 5.4600 
43; 04,12/99 101.9300 44600 
S'-i 02/27,34 118.7900 6.9500 

243TMCC 7 06/1137 102.6250 6.8200 

244 Italy 6^1 09/27/23 96.2331 7.1400 

246 France Telecom zero 1037/97 98.6284 5.7000 

248 Patand inter 4 10/27/14 874625 44700 

249 Argenlina 10.950013139 1084000 10.0900 


ITL750.000 2007 10 100.90 — 

Reoftered at 99*«. Interest Is 10% until 1999 thereafter ft is 7*j%. NoncaSaM& 
redenomfnated In euros after EMU. Fees 2%. (Chase Manhattan InttJ - ” 

Banque Paribas 

2007 10 10140 100-07 Reoftered at lOOXXLNcncaOable.fMrestts 10% untlll 999 Thereafter it is 5**%. Isswimay be 

redenominated in euros after EMU and tangible with the two other tranches. Fees 2%. (Pan bos 
Capital Markets.) 

TKe Week Ahead S World Economic Calendar. July 14-18 

Bayerische LandesdanK 


Sli 101 W 99.65 NoncoUable. Fees 1'*%. (IMF Bank.) 

A sSTodu* of m.i week s occncm « and fcuruud eierrs eerr-c *3 tar me IrtantMianal Hera'j Tnti^ne By Bloomberg Business News 




6Vi 101.82 99.75 NoncoUable. Fees 2% (BNP London.) 




9.30 101.03 9940 

Expected Osaka, Japan: Consultative Group 
This Week on Indonesia meets to discuss aid 
to Indonesia. 

Tokyo: The Bank of Japan holds a 
meeting of its branch managers. 
Bank of Japan governor Yasuo Mat- 
sushita gives a speech at the open- 
ing ceremony. 

Frankfurt: Bundesbank due to pub- 
lish M3 money supply figures for 

London: British Bankers' Associa- 
tion releases the major British bank- 
ing groups' June statement. 

Washington: South Korean and 
U.S. officials meet to discuss an 
open-skies agreement Monday and 

Earnings expected: Charles 
Schwab. Coca-Cola Enterprises. 
HFS. Marriott International. McDon- 
ald's, MGM Grand. 

Reoftered of 99.455. Interest will be 930°. until 1999 thereafter it is 5 40%. Nancallabte. Fees 
1 7,8%. i Deutsche Morgan GrentefL) 

6v* 100.339 9740 

Reoftered at 94289. Noncodable. Issue may be redenominated m euros a (ter EMU. Tees 2's%. 
IABN-AMPO Hoore Govetl.l 

Friesland Bank 
Banque Paribas 

5 3 x 100.806 99.08 Reoftered at 99231. Noncaltable. Fees 2S. (A9N-AMHO Hoore Govett.J 

9B.63 — 

R coffered °* 97.005. NoncoUable Issue mav be redenominated In euros after EMU and fungAto 
wifti the rv.0 other tranches Fees 2 V (Paribas Cartful fAorkefej 



zero 8.30 — 

Yield 13 4%. Reoftered at 8.05. Noncaltable. Proceeds 165 million rand. Fees 040%. (Toronto 

July 14 

Hong Kong: May external trade da- London: Office tor National Statis- 
J®- tics releases June producer prices; 

Sydney: May price indexes of ar- British Retail Cons ' 
tides produced by the manufactur- Monthly Sales Mor 
ing industry. Oslo: Statistics Nc 

Tokyo: Bank of Japan releases eco- June trade fiqures. 
nomic outlook for its 10 branches 

Washington: Federal Reserve 
Bank of Atlanta releases national 

Federal Matronal Mortgage 


6.85 99.832 — NoncollobJe. Fees 0.2SV 1HS6C Markets.) 

British Retail Consortium to issue its production index for June. 

Monthly Sales Monitor for June. 
Oslo: Statistics Norway releases 

Nippon Telegraph and 

2 W 99.044 99.35 Noncallabto. FwsOJZS'- 1 ?. [Merrill Lynch.! 

Earnings expected: Bank of New 
York Co.. Burr-Brown, CPC lnter T 
national, Donaldson, Lufkin & Jen- 
rette, Harley-Davidson. 


Doewoo Heavy industries 


SI 00 2007 Ml 100.00 — 

Callable ar par from iwa Convertible of 7,750 won per shore , a lS'-j premium and ar 888 won 
per dollar. Fees not disclosed. Denominations S1CL000. fHSBC Investment Bank Asia.) 


July 15 

Tokyo: Economic Planning Agency 
reports business trends in each in- 
dustry for July; June department 
store sales in the Tokyo area; May 
industrial production: 

Wellington: Consumer prices in the 
Aprif-June quarter. 

Helsinki: June consumer price in- 
dex: May industrial output. 
Wotfsfcurg, Germany: Volkswagen 
AG holds briefing on 200 million 
Deutsche mark investment in new 
production facility. 

New York: UR Redbook Research 
service releases weekly survey of 
sales at more than 20 U.S. depart- 
ment, discount and chain stores. 
Washington: June retail sales. 
Earnings expected: Ameritech, Am- 
gen, AMR, Boise Cascade. 

Texaco Capital 

5200 2004 3V? 100.00 - 

Callable ot par In 1999. Convertible ot an needed 20 to 24*i premium. Fees Ti 5 i 
DenominatiDns St 0.000. (Credit Sirtsse First BostanJ 

Tingyl Holding Group (Cl.) 

ST 10 2002 1 Va 100.00 — 

SS , ™ POr ITX?? 0 HKS23 ^ ^ shore, a 7.274% premium, and at 

HK37.7427 per doOar. Fees 2 : (Deutsche Morgan GrenfelTJ 

Thermo Fiberfek 

$150 200J 100.00 - 

Callable at par (ram 2000. Conrerttbta at S12 40 per shore, a 1941*. premium. Fees 2*^ 
(Lehman Brothers Intl.l 

SBC Jersey 

DM200 2002 1 96' 

CaHablo at par Irom 2000. Convertible into one bast et of eurowon insurance sham per 5.000 
marhs. 0 225 premium. Fees 7A (SBC '.Vortvrai 

Wednesday Seoul: Miwon Co. and Sewon Co. 

July 1 6 hold extraord ina ry meeti ngs to vote 

on merger Bank of Korea releases 
a report on Korean banks' profitabil- 
ity in the first half of this year. 

London: Office for National Statis- 
tics releases provisional unemploy- 
ment rale for June, productivity and 
unit wage cost for May. May av- 
erage earnings indexes .and employ- 
ment hours and labor disputes for 

Washington: June consumer price 
index; May business inventories 
and sales; Federal Resen/e releas- 
es industrial ■production and capac- 
ity utilization for June. 

Earnings expected: Apple Com- 
puter, Ford Motors, General Motors. 

Last Week's Markets Euromarts 

Stock Indexes 

Money Ftates 

Eurobond Yields 

Untied States July 11 

July 17 

Hong Kong: index of industrial pro- 
duction for first quarter. 

Tokyo: Ministry of Finance to re- 
lease data on Japan’s merchandise 
trade balance for June and the first 
half of 1997. 

Amsterdam: June unemployment 

Copenhagen: July consumer con- 
fidence figures. 

Paris: Insee releases first-quarter 
gross domestic product. 

Washington: June housing starts; 
Labor Department reports initial 
weekly state unemployment com- 
pensation insurance claims. 
Earnings expected: Gillette, LSI 
Logic, Maytag, McDonnell Douglas. 
Merck. Microsoft, Sun Microsystems. 

DJ Indus. 

DJ utn. 231 .85 

OJ Trans. Z8I9JI 

July “iiCh'flp 
CM. - 

Weekly Sales 

SB. P W0 
S & Find 

NcxfidoQtp 1.50762 

Piscot inl row? 
Prime role 
FodoraJ funds rota 

July 4 Juno 27 

S.fflJ 5 DC 

ft, B". 

5i, Cfsd. 

Juft II JvftJYrMgfi 

3-manlfi Intatbanf, 

040 aso 

045 039 

063 044 

225 19475.49 19.9o8.00 -0.J4 


PTSFlOO *799® *812.80 — 0.?9 


Hdnfi’bose rota 
Call manev 
J.inanffi interbank 

Hong Kong: Unemployment statis- 
tics for March through May. 

Tokyo: Bank of Japan reports on 
overseas economic trends. 
Wellington: Preliminary figures for 
housing permits in June. 

Helsinki: June producer prices in- 

London: Bank of England releases 
provisional estimates of M4 money 
supply and bank lending for June. 
Madrid: May industrial production 

Ann Arbor, Michigan: University of 
Michigan releases index of con- 
sumer sentiment for July. 
Washington: Commerce Depart- 
ment reports trade balance in goods 
and services for July. 

Ottawa: May wholesale trade data. 


TSTinthlS. 4633.70 *580 80 -0 80 


CACffl 2.84149 2.934*8 -0 2J 


55S 4.040.97 3,94240 -250 

Hong Kong 

HSnqbtnq 15.325.29 14.82397 *2 71 


wises P 960456 964.I03 —04s 

Fronrf 1 

Call money 
3-month Intefbont 

3.10 3.10 

3 l 'i 3'- « 

3i* js. 

U4.4 king term 

U4. 5. atOn tarm 
U4.S. Vi ijrt term 
Pounds star hnq 
French francs 
Italian Hre 
DanKh kroner 
SnedrtJi kronor 
ECUi Umq VJrm 
ECUt rhdrq term 

Sourae. Lwcmii 

J4I 6 74 709 
* 6J2 tM 6M 
609 6.13 641 
7J7 7J4 7.75 
4.88 4.97 5.05 
<77 6J1 7.79 
5.31 5.45 5.93 
5.14 574 54) 
6.05 tf.12 642 
i 570 536 543 
5 78 5.99 641 
6. to 6*0 ?M 
6.93 696 839 
1.97 I 97 3.15 
roura dock rxctxnw 


««Bk EindHT . 

. . * Ncm s Naas 

IJESS* ?-S 80^ 966.9 1.154.9 

FRnT' l.n»J 3123 I&i Wd 

l^t n Sot 1 ] >9.722,7 1541764 

Total 14,733 1 7.4613 223952 145835 

Secondary Mortart 

CoiWBli Cnrodror 

,9 *^8 8UW4 33IS9 1 

TnHl •7*111.9 24331.1 24,1912 V/ 

Total 70-5123 44946.7150 01 X r/t 

Call money 
l-monlh interbank 

4.50 430 

3.08 ’.13 

3.13 3.12 

Total ^WH|jS!i > 

Ssurce- Eumdear. Crdrt Sanfc ■ 

Libor Rates 

iV>id Jury 1 1 

London pm.tu.5 31915 

July J ’c qn-rw 
324J0 *'ul 65 

Worm mdet Imm .Woman JtanA*, Capital mi PcnotxHve 

1 -aorta J-momti Mnwta . m 

841 5' 1 *, 5" u, 51*, Fmnrh bn, taniaalb 

geuNthemork 3, 3 . ; ^mKhlranc 314 3;-, 3 * iV> 

Pound sterling 4 :, * *** 4i-ji ' 4 J 4 

Sown* Lloyds Ban*. Reuters ‘‘ *'• ' *» 


PAGE 13 

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erni'." 1 "-** ; T- 

n- S-**"*; : i-" 

S3 ■ 

Rest on your laurels and you'll soon miss the boat. Speed and flexibility are the news of the day. Which is why Huls AG is letting 
us loose on the market as independent limited liability company from January 1, 1998. Clustering all activities in the field of 
special chemicals into a single independent company with clear market focus is only one of the many measures to feature in the 
Global Fitness Program of Huls AG which in future will take on the role of strategic holding company. This opens up whole new 
market opportunities, paving the way for us to reach our ambitious goal of becoming a leading supplier worldwide. Watch this 
space for the name under which we'll be starting out. Special Chemicals Division of Huls AG, Marl. Germany. 

Mcover The U*k To Life 

$>r K ,x V'k“. ■ - ^ 


natter. 1989 tfvoh-cj. 

wpnwutioner; ha d h ■*.; . t 
-■e u had ^ v. M J r -^n t..._ 


‘V u had to becoiYv 
ftwiheCcMr.iRun'iu. . 
i«TEas*err. Euror-..-- .. J ^ ,,,k l"*- 

iLT c S na * le rcJ 
i .on famuy a!Iiaa Cs . J s n ; ' a i#* 
Faiortsi sm ^ 

This was the ---.r - 
al system of :h- oV; ^’ ,r ^ 
as lhat of 

is whai is has T«i!j*i h T 

! L» fy. 

Hl^ this will char - „ 
ecause human nJrL--’ ? ,l[T * fc; 
y apuahiiic ior ■■i”. : ? ,| nt f 

lerifiara have ^ - , Vh ^ 

aime). Ii „ 

Ml system with m 4u «t* 
aract w«| demand V- ! r ' L : '^r 
reigh business ■A«ii‘\ , . s ' 
iWe contracts j- - 

ng and will re>;>: 

mafia-con trolieii cn - ^ 

»nks and uitema ; v. ' ' 
id finance unverif '.‘n’ ' V"* 
kHI resist harJiL-i -* n h " ,T ' ,! 

B are suspect, v ‘“ J l ‘ 

5- >* ™^ r ^-1- :L : :.'T : 

sisoaeues. ' - r *< 

s«o exercise m pr 4t - ]al ., 
t&asis, obvious 1 -.' 7 v ".'i \ 
si world's ldeoioi.'* r ■' 
asi. bur ai<o w-fr. ;’r’- \( W 
tan on today to m_ ? .. . J' 1 

cs a new secular rci^-' n f '' 1 : 

fWrJ-i.,:;,,... u . r 

'6 i*** l r -^ 



iJrP j) J u* 


PAGE 15 

til ' Sa lesD^ 
Gaining F Uti ,‘ 

Closed the prSlou- p ^ 
west yield u ai ^ndn . 


^u-lie Duff. a -w 

■8CT in the taxable”^ -Pv^oL 

« Bank of ,ncf ^ 
uncertain abouTT' „ **t 
pk, partly bec 3use nejf i% 
ung may rise in '" ,tls Uir t , 

Gagins Ae bond njr'"’ rid 

“builish or, T re "’ d K 

-ngierm. ■’ 

Will 8,000 on the Dow Be a Pause or a Peak? 


-■anss* 3 : TT/.- : — ■ — 

•■t.Den;n-..n;;, :r , r ■■ 

Slant 3«i 

The Associated Press 

NEW YORK — The debate is not so 
much whether the Dow Jones industrial 
average will cross the 8.000 mark but 
whether that milestone will serve as a 
new blastoff point, a grazing pasture or 
a cliff. 

If last week’s early signs from Gen- 
eral' Electric Co. and Compaq Com- 
puter Corp. are any indication, the im- 
pending crush of second-quarter 
earnings reports should be good 
enough to put the Dow, which finished 
the week at 7.921 .82. over the top. 

To begin with, the atmosphere is 
. more upbeat than a year ago. when the 
market tumbled after a barrage of cor- 
porate-profit warnings. 

“Companies are so careful to warn 
about earnings disappointments, and I 
don’t sense there’s been an unusually 
wide number of warnings this time,” 
said Eric Miller, chief strategist at Don- 
aldson, Lufkin &■ Jenretie Securities in 
San Francisco, adding that aside from 
Intel Corp., “there haven’t been that 
many key companies waving caution 
flags.’’ But even if the markets make it 
through this earnings season without any 
horrific surprises, by historical standards 
investors are already paying top dollar 
for their share of these purportedly 

healthy profits. Even with a strong 
second-quarter performance, another 
rally would push the ratio of share prices 
to earnings — one of the most widely 
used measures of marker valuations — 
beyond traditional comfort levels. 

“It’s gotten beyond the realm of 
predictability." said Richard Dickson, 
market analyst at Scon & StringfeDow 
in Richmond. Virginia. ■'All the tech- 
nical indicators are off the map. One by 
one they’ve fallen by the wayside. 

“I don't know what to look at to say 
this thing is overdone. It’ll go down 
when it's ready to go down. Sooner or 
later, people will say, 'It’s too high, I 
won’t pay that much.’ But tell me when 
that time will be.” 

From a technical standpoint, many 
specialists say that this bull market is 
behaving more like an anim al about to 
stampede than to settle down for a rest. 

Notably, the Dow's record-setting ad- 
vance has frequently been accompanied 
by heavy volume and growing interest in 
medium-sized and smaller companies. 

The implication is that more in- 
vestors are venturing beyond the per- 
ceived safety of the blue-chip sector as 
they search for values in a high-priced 
market. That type of surge in investor 
confidence can result in what is called a 

**melt-up” or a buying panic. 

"The Dow industrials could explode 
for several hundred points in a few 
days,” Ralph Acampora, chief tech- 
nical analysr at Prudential Securities, 

"This is our bi gg est fear, because 
greed would dominate.” he said, cau- 
tioning that ”any subsequent sell-off 
would be accompanied by fearsome 
free fails.” 

The market could sustain itself 
above 8,000. some analysts contend; if 
the advance is more gradual and 


the current combination of surprisingly 
low inflation and tame interest rates 
persists, justifying a more generous 
price-to- earnings multiple. 

When the Dow hit 7,000 back in 
February, many expected the Federal 
Reserve Board to guard against higher 
inflation by slowing the economy — 
and profits — with a sharp rise in interest 
rates. Instead, inflation has eased, and 
the Fed has only nudged rates higher. 

“If earnings are good, monetary 
policy is good and inflation is still 
behaving, you'll ger more multiple ex- 
pansion,” Jeffrey Applegate, chief in- 

vestment strategist at Lehman Broth- 
ers, said. 

But according to Michael Metz, 
chief investment strategist at Oppen- 
heiraer & Co., rhar ideal environment is 
already factored into the market. 

"The marker is fully and generously 
paying for a perfect 1998, and I don’t 
have that much confidence that things 
will beperfect," Mr. Metz said. 

On Friday, the Dow Jones industrial 
average rose 35.06 points to 7.921.82, 
up 26.01 for the week and about 40 
points short of its record dose of 
7,962.31, set Tuesday. 

The Standard & Poor’s 500-stock 
index rose 2.88 on Friday to 9 1 6.66. up 
0.22 for the week, and the New York 
Stock Exchange composite index rose 

I . 85 to 478. 12, up 0.44 for the week. 

The Nasdaq composite index rose 

II. 69 on Friday to 1.502.62. breaking 
above 1,500 for the first time and dos- 
ing at a record high for the seventh 
consecutive session. For the week, me 
Nasdaq gained 35.01 points. 

AJso setting new highs Friday were 
the Russell 2000 list of smaller compa- 
nies. which rose 3. 1 1 to 402.26. up 6.08 
on the week; and the American Stock 
Exchange composite index, which rose 
3.77 to 635.47. up 1.13 for the week. 


"9 CilW rt.,,3 _ T 

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"5. Purs: - : -= : ^ 77 - 

Investors Opt for Know-How Over Cheap Labor 

By Carl Gewirtz 

Inieniiilitmji Herald Tribune 

?=>?:•! tw I-.-:- 



. : 


: • .- 





PARIS — Despite concern that low 
production costs in developing coun- 
tries give them an unfair advantage in 
the global competition for new invest- 
ment in plants and equipment, only two 
developing countries — China and 
Mexico — rank among the top 10 re- 
cipients of foreign direct investment in- 
flows. a study released over the week- 
end shows. 

The leading recipient of foreign di- 
rect investment was the United States, 
according to a Financial Market Trends 
report by the Organization for Econom- 
ic Cooperation and Development. Be- 
tween 1991 and 1995, direct-investment 
flows to the United States amounted to 
$195 billion. 

China ranked second, with inflows of 
$113 billion, and Mexico, with inflows 
of $32 billion, was ranked eighth. 

Britain ranked third, with inflows of 
$81 billion, and France, despite being 
known as a relatively high-wage coun- 
try, was in fourth place, with inflows of 
$64 billion. 

The Benelux countries, Spain, Sweden 

and Canada completed the top 10. 

The next 20 largest recipients were 
evenly divided berween developing 
countries and OECD member states, 
including the new members Hungary, 
ranked 20th. and Poland, ranked 25th. 

The data appear to show that pro- 
duction costs are only pan of the picture 
in determining where businesses invest 
and thar technological know-how and 
quality also count 

Unit labor costs in Germany are 
among die highest in the world, yet it was 
in 14th place as a recipient of foreign 
direct investment The same is erne of 
Singapore, which came in 12th, New 
Zealand at 21st. and Switzerland at 23d. 

Notably absent from the list was Ja- 
pan — the country with the world’s 
highest unit labor costs — but that was 
thought to be for cultural rather than 
economic reasons. The study says that 
“global flows of direct investment are 
dominated by mergers and acquisi- 
tions,” which are still relatively rare in 

Japan, however, does rank as the 
leading source of foreign direct invest- 
ment, with a cumulative net outflow in 
1990-96 of $167 billion. Germany was 

the second-largest source, with 5145 
billion, and the United States was a 
distant third, with S96 billion, followed 
by Britain, at $47 billion. 

Apart from Japan and the United 
States, the only non-European net for- 
eign investor was South Korea, with 
cumulative outflows of some $6 billion. 

The OECD attributes the recenr sharp 
rise in Japanese manufacturing invest- 
ment abroad lb the yen’s appreciation in 
the early 1990s and the need to raise the 
share of overseas production to the 
levels found in other major countries. 

The favored destination of Japanese 
manufacturing companies since 1994 
has been other Asian countries, at the 
expense of Japanese outflows to 
Europe, which have abated sharply to 
about $2 billion a year. 

European and American companies, 
the report said, “show no overwhelm- 
ing preference” for either Asia or Latin 
America, as flows 10 both have in- 
creased dramatically in the 1990s. 

“Only Japanese firms,” it said, 
“show a clear preference for investing 
in Asia. Central and Easrem Europe is 
the first choice for European firms, a 
small but rising share for Americans and 



LICENSE: Winners ofFCC Wireless Auction Seek Better Terms 


C-’f.df t- * ■? . 

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Continued from Page II 

would only rise in the future. 

But they were wrong. Be- 
tween May 1996 and May 
1997, the four publicly traded 
small wireless stocks, includ- 
ing Omnipoint, lost 71 per- 
cent of their value. Ail of a 
sudden, friendly bankers 
turned cold, telling the license 
^ holders they had paid too 
much, and equipment makers 
backed away from agree- 
ments to help finance the con- 
struction of networks for the 

“At the current levels of 
debt that they owe the gov- 
ernment, the financial mar- 
kets are closed to them,” said 
John Bensche, vice president 
and senior wireless analyst at 
Lehman Brothers Inc. 

The second-highest bidder. 
Pocket Communications Inc., 
filed for bankruptcy reorgan- 
ization in late March. At the 
same time the commission 
lifted its requirement that li- 
1 cense holders meet their first 
4 interest payments. 

NextWave Telecom Inc., 
the biggest license winner by 
far, having promised to pay 
S4.2 billion for 63 licenses, is 
leading the effort to persuade 
the commission to restructure 
the debt owed by the win- 

Since the downturn in the 
market, NextWave has laid 
off hundreds of employees, 
delayed construction of its 
network and canceled 
planned debt and equity of- 
ferings. “This market is dead 
in the water," NextWave ’s 
deputy chairman, Janice 
Obuchowski, said. 

Commission officials say 
license owners and hankers 
are exaggerating the problem 
to extract the best deal pos- 
sible from the agency. 
“Every licensee, when they 
smell a restructuring, has an 
incentive to paint as dire a 
picture as possible,” lamen- 
ted one commission staffer. 
.“It's not as bad as many make 
it seem.” 

There are a range of op- 
tions before the commission. 

It could do nothing, which 
probably would lead to 
massive defaults on license 

The commission, presum- 
ably. would then repossess 
the licenses and put them up 
for auction again — except 
that companies could file for 
bankruptcy protection, which 
could ne up licenses in court 
for a long time. 

The commission also could 
decide to give the winners 
more time to pay. NextWave 
proposes eight years of no 
payments at all, with accrued 
interest due annually after 
that until 20 years later, when 
all the principal would be due. 
MCI Communications Corp. 
is making a similar proposal 

Finally, the commission 
could grant an “amnesty” to 
license holders, allowing 
them to turn in all or portions 
of their licenses, lose their 
down payments and face no 
further default penalties; or ir 
could allow licenses to be- 
paid for immediately at deep 

Any of those actions would 
be virtually certain to produce 
time-consuming lawsuits. 
While the status quo is “still 
an option,” a commission 
source said, allowing license 
owners to default and then 
repossessing and auctioning 
their licenses again would 
delay the arrival of new com- 
petitors in the market. 




The undersigned announces that 
the Annual Report for year ended 
March 31, 199Tof 
Hitadn Ltd. 

will be available in Amsterda m at: _ 



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a negligible one for Japanese firms." 

The report added that Asia was where 
European, American and Japanese in- 
vestors were most evenly represented, 
and it said that “even investments from 
Japan pale in comparison with what 
firms from other Asian countries are 
investing within their own region.” 

Overall, the 29 OECD member coun- 
tries are “substantial” net investors in 
the rest of the world, with net outflows 
averaging “almost $60 billion in -the 
1990s.” the study said. 

RWE Subsidiary Posts 
Huge Operating Loss 

FRANKFURT (Reuters) — RWE 
AG, the diversified German energy util- 
ity. said Sunday that a subsidiary had 
incurred more than 300 million 
Deutsche marks (S170.4 million) in op- 
erating losses and restructuring costs. 

An RWE spokesman said Breuer 
GmbH, which hires out cranes, had an 
operating loss of 100 million DM in the 
year ended June 30 and -had set aside 
more than 200 million DM to finance a 
restructuring. Breuer, which belongs to 
RWE through its mining subsidiary 
Rhein braun AG, has been hit by a slump 
in the construction industry, particularly 
in Eastern Germany. 

Apple Pares Prices 
On New Computers 

CUPERTINO, . California 

(Bloomberg) — Apple Computer Inc. 
has cut prices on some of its newest and 
fastest computers by as much as $300 as 
it struggles to hang on to its market 

The price cuts, announced Saturday, 
will affect Power Macintosh 6500s, 
which were introduced in April, and its 
older line of Macintosh Performa 6400 
machines, which are aimed at families 
and small businesses. Power Macintosh 
6500s will now cost between $2,300 and 
52,800. The Performa 6400 machines 
will be priced between $1,400 and 

The cuts come just days before Apple 
is expected to report its sixth loss in seven 
quarters and less than a week after Chief 
Executive GU Amelio was forced out for 
failing to turn die company around. 

A Change in Strategy 
In LVMH’s Battle? 

PARIS (Bloomberg) — LVMH Moet 
Hennessy Louis Vuinon SA, the world's 
largest maker of luxury goods, has pro- 
posed splitting up its Champagne and 
cognac units, according to a report in the 

weekend edition of the Daily Telegraph. 

A spokesman declined to comment 
on the report. 

The idea is for LVMH to buy Guin- 
ness PLC’s 34 percent stake in the Moet 
champagne business. In turn, Guinness 
would buy the 66 percent of the Hen- 
nessy cognac business it does not own, 
the paper said. 

Phe proposal would be an alternative 
to LVMH’s attempt to block the 


tanned S38 billion merger between 
uinness and Grand Metropolitan PLC 
by seeking a merger of the three compa- 
nies' global drinks operations. 

Israel Postpones Sale 
Of Shares in Bezeq 

JERUSALEM (Reuiers ) — The gov- 
ernment’s offering of shares in state- 
owned Bezeq Israel Telecom will not 
take place in August as planned, a top 
economic official said Sunday. 

Moshe Leon, Prime Minisier Ben- 
jamin Netanyahu's chief economic ad- 
viser, said he did not know when the 
offering would take place, but company 
sources said it would probably be in 

Instead, the government plans to 
complete a block trade to institutional 
investors in August for an as-yet un- 
determined percentage of the telecom- 
munications company, sources said. 

For the Record 

• U.S. orders for machine tools fell 

16.4 percent in May from the month 
before, to S678 million, the first decline 
in four months, the Association for 
Manufacturing Technology and the 
American Machine Tool Distributor’s 
Association said. ( Bloomberg ) 

• Aeroporti di Roma, Italy's airport 

operator, set the price of its offering on 
the Milan bourse at 1 1 ,000 lire (S6.42) a 
share, valuing the company at 1.32 tril- 
lion lire. (Reuters) 

• Hindustan Motors Ltd. of India 
plans to start making a rural passenger- 
cargo transport vehicle designed by 
Oka Motor Co. of Australia. (AFP) 

Rangoon Denies Demonetization 9 

CmpilrJ tn Ow Staff Firm Difvt, hn 

BANGKOK — Authorities in 
Burma have denied rumors that the 
military government is preparing to 
declare its 200 kyat and 500 kyai bank- 
notes valueless. 

An official radio broadcast mon- 
itored here said rumors of the so-called 
demonetization of the notes, the coun- 
try's two highest denominations, were 
“totally untrue." 

The subject of demonetization is 
sensitive in Burma, where a withdraw- 

al of banknotes in 1987 sparked anti- 
government protests that eventually 
led to a socialist government losing 
power and to the arrival of the current 
military government. 

Local analysts said the latest rumors 
had been fueled by rapid inflation, 
which has resulted in a rise in the 
black-market exchange rate for U.S. 
dollars from 200 kyats to 250 kyats in 
the past month. 

Inflation also has put a strain on die 
government’s Foreign Exchange Cer- 

tificate system. Dollars have risen in 
value against the dollar-denominated 

As a result, many people are putting 
their money into gold and have been 
buying land to try to protect them- 
selves against further falls in the kyat. 

General Ne Win, the dictator who 
led the country from 1962 until 1988, 
declared several demonetizations that 
left the country with oddly denom- 
inated bills such as the 90 kyat 
note. (AFP. Bridge News) 


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PAGE 18 



Contenders Hit Bonny Form Ahead of Open 

Inienuniowl Herald Tribune 

L OCH LOMOND. Scotland — How was this 
for a rough draft of the British Open? A 
final-round narrative involving Tom Leh- 
man, Ernie Els, Colin Montgomerie and Greg 
Norman, all of them in contention — and driven, 
maybe, by an underlying plot device. As the tour- 
nament in Scotland came to a close. Tiger Woods 
was heading toward Europe to play his fust British 
Open as a professional. 

“Everybody’s coming into the Open in good 
farm,'’ Lehman said after his five-stroke victory in 
the Gulfstream Loch Lomond World Invitational 
on Saturday. “I can’t think of anything better than 
the top guys all playing well.” 

Lehman’s 4- under par 67 in the final round did 
away with the best field the European Tour will 
have this year — short of the Open, of course, 
which begins Thursday at Royal Troon on the 
southwest coast near Glasgow. Lehman is hoping 
to become the first American since Tom Watson in 
1983 to succeed in defending his Open title. His 19- 
under par total included just two bogeys. 

“In 72 holes that’s something I’ve never done 
before," Lehman said. 

This week at Loch Lomond, the unpretentious 
Lehman behaved like a tugboat tugging a luxury 
cruiser. Ernie Els. who last month at the U.S. Open 
beat Montgomerie and Lehman over the final two 
boles, was second. He shot 65 and 66 on his last two 
rounds. Greg Norman, who won at Memphis two 
weeks ago, was fourth at 1 1 -under. Rebel Goosen 
of South Africa shot a course record 62 in the last 
round to finish third. His best finish in the British 
Open is last 

Payne Stewart, who was sixth at 10-under, said, 
“I came in here with not a lot of confidence, but 
I’m leaving with a bunch." 

Then there were last year’s U.S. Open champion, 
Steve Jones (9-under), and Montgomerie (8-under). 
Montgomerie is the most fascinating protagonist of 
all. considering his hunger for his first major cham- 
pionship, his famished record at the British Open, 
and the fact that his father is secretary at Royal 
Troon. There will also be Jose Maria Olazabal of 
Spain and Nick Faldo. 

Woods, meanwhile, went to southern Spain on 
Sunday morning to practice at Valderrama with his 

Go///!*" Thomseh 

banks of placid Loch Lomond. Competent shots to 
the bellies of the green were met with stonefaced 
silence; a trickling, lagging two-putt, on the other 
hand, was applauded spectacularly. That empha- 
sized the dichotomy of the European Tour Some 
events are played in Southern Europe, where golf 
can seem as elitist and unfathomable as polo or fox- 
hunting; and others are played hoe in front of 
possibly the most expert fans in the world. 

The Scots don't necessarily love Montgomerie, 
but he is theirs. Ashe stepped up onto the 18th green 
Saturday the applause, which had sunk to a murmur 
in waiting, suddenly jumped up out ai him. He kept 
walking, tossing a wave of the band toward the 
grandstand, and the applause extended itself deeper 
and coaxed out of him a sincere smile. He seemed 
genuinely proud to be the unofficial best of his peers. 
When he complained rightfully about the failure of 
European officials to police the slow play at Loch 
Lomond, it was as if his pride bad been offended. 

Last week Montgomerie won the Irish Open 
with a course-record 62 in die final round It 
seemed that he didn't want to enter the Open 
looking for his third victory in a row. 

“I wanted a week where I could perform well 
but not necessarily win, because that could have 
really tired me oat for the following tournament," 
be said “So I’m just there comfortably right I’m 
very-, very happy with ray game and I’ve never 

Apnx Hnce*PK^ 

Tiger Woods gazing at his shot Sunday at 
Valderrama in southern Spain, where the 
Ryder Cup will be held in September. 

prospective American teammates in anticipation of 
the Ryder Cup to be held there in September. 
Woods won his most recent U.S. event, the West- 
ern Open, a week ago. It’s no coincidence that his 
fantastic professional debut, not even a year old 
yet. has been followed by a run of inspiration from 
the top players. 

“You know, I feel like when I’m playing well. 
I’m going to beat him," Lehman said. 

Sorely the Open on the century-old links of 
Troon will be played in a more carnival atmosphere 
than was seen and heard at this inland event on the 

At the British Open, however, he has missed the 
cut four of the last five years. Since he spent his 
teenage years playing Troon, be has planned a 
practice round there Monday and may not return 
until the tournament starts Thursday. 

“I want to play with some friends, and I want to 
try to enjoy myself and relax,” he said. “If 1 was 
out there with any other top player, I might get into 
a game or something where I have to give it 100 
percent. I just want a nice relaxed game of golf and 
I don’t care what I score." 

So that's the self-help theme, is it? “Yes. I want 
to try and relax, and tire more yoa mention it the 
worse it gets," he said, his voice rising slightly in a 
joke, which be finished off by telling the reporter, 
“so you can shut up for once.” 

Alison Nicholas Nears 6 Thrill of a Lifetime 9 

By Bill Pennington 

AW York Tunes Service 

NORTH PLAINS, Oregon —Ten 
years ago. at age 25. Alison Nicholas 
of England won the Women's Brit- 
ish Open. 

“It was my first win." Nicholas 
said, “and sometimes you don’t 
know what to make of something 
when you're that young." 

Nicholas, who tuts long lived in the 
shadow of her country's most cel- 
ebrated female golfer. Laura Davies, 
is wiser now, and she knew she was 
on the brink of something special. 

On Saturday at the Pumpkin 
Ridge Golf Club, as the galleries at 
every hole implored the 40-year-old 
Nancy Lopez to keep up her magical 
run at what would be her first U.S. 
Open title, Nicholas played the 
quiet, determined spoiler. 

“I understand what it would mean 
to people if Nancy were to win." said 
Nicholas, whose 67 gave her a three- 
round total of 10- under-par 203. “But 
it would be a thrill of a lifetime for me. 
Boo. The British Open will always be a 
great memory, but this... 

Nicholas paused, the smile broad- 
ening across her face. “Well, this 

U.S. Wohem's Open Gobi 

would be something to mark a ca- 
reer.” she said. 

For Nicholas, it would also be the 
crowning achievement of a two-year 
effort to rebuild her game. A brilliant 
junior player in England who also 
won the 1989 German and Swedish 
Opens, her career slumped in the early 
1990s. finally, in 1995. she made a 
swing change and adopted a strenu- 
ous conditioning program. It helped 

her regain her game as she won two 
events on tire LPGA Tour that year. 

She will need a victory on the 
Witch Hollow course at Pumpkin 
Ridge to steal the attention from 
Lopez, who shot a two-under-par 69. 

Greeted with ovations on every tee 
and green Saturday, Lopez sprinted to 
a momentary tie with Nicholas when 
she eagled the par-5 fourth hole. But 
her iron play was sporadic, and she 
red the next two holes. In an up- 
I-down round, she putted just well 
enough to stay in contention. 

“I felt great because the crowds 
were wonderful to me." said Lopez, 
who just one year ago miss ed the cut 
at the Open, leaving die course in tears 
after a first-round 77. “My goal today 
was just to play relaxed, and I did.” 
she said. “Even when l struggled, I 
never felt in trouble. I guess I was, but 
I didn’t let it get to me." 

All around Lopez and Nicholas, 
contenders were wilting under the 
pressure of third-round play. 

Liselotte Neumann of Sweden, 
the 1988 Open winner who began 
Saturday tied with Lopez, shot a 76 
to fall off the leader board. 

. Kelly Robbins, who won the Jamie 
Fair Classic last weekend in Ohio, 
bogeyed three consecutive holes on 
the back nine after pulling within 
three strokes of the lead. Robbins, 
who was also tied with Lopez and just 
one stroke back after the first two 
rounds, finished with a three -over-par 
74, eight strokes behind Nicholas. 

Hind behind Nicholas and Lopez 
was Lisa Hackney, an English player 
who is playing in just her second 
Open. Teeing off well before the lead- 
ers on Saturday, she eagled the fourth 
hole and sneaked up on the field with 
a 67, moving her to five under par. 

K*i PlilhM/Rnm 

Alike Huber of Germany returning a shot from Iva Majoli of Croatia on Sunday- 

French Finally Reach Final 

After 7 Failures, Will Face Dutch Women in Fed Cupl 

Ctm^tird by cfcr Staff Fmm Digwtrtra 

Nathalie Tauziat and Alex- 
andra Fnsai rallied from a set 
down in the doubles on Sun- 
day to give France the clinch- 
ing point in a 3-2 victory over 
Belgium in the Fed Cup 
World Group semifinals. 

The French pair won eight 
straight games at one point to 
beat Dominique Van Roost 
and Els Callens, 3-6, 6-2, 7-5 
in die deciding doubles. Van 
Roost had beaten Fusai in the 
last of die singles, 6-3, 6-3 to 
square die semifinal at 2-2. 

France reached the Fed 
Cup final for the first time 
after losing in the semifinals 
for the last four years and 
seven times in all. 

Both Van Roost and Fusai 
had an hour's rest before the 
start of the doubles. 

Fusai played with Tauziat, 
who was bypassed by French 
captain Y anni ck Noah for the 
singles. Tauziat, who made 
the quarterfinals at Wimble- 
don, could not adjust to clay 
in time for singles play. 

In the doubles the Belgian 
pair won the first set 6-3 and 
was up 2-0 in the second. 
Then the momentum turned as 
Noah, who led France to vic- 
tory in the men's Davis Cup in 
1991 and 1996. exhorted his 
players. From 0-2 down. 
France won the next six games 
to win the second set. then 
went up 2-0 in the third. 

France had three match 

points with Belgium serving 
at 3-5 . However on each of die 
advantages, Ta uziat send 
backhand returns into the net 

Fusai served for the- match 
at 5-4, but Belgium came back 
to even it at 5-5. However, 
Belgium lost the next service 

Tennis Roundup 

game, and Tauziat won her 
service game at love to give 
France foe victory. 

Testud easily beat Appel- 
mans in foe opening singles, 
6-2, 6-4. 

fiance will face foe Neth- 
erlands in the final. The Dutch 
beat the Czech Republic 3-2 
in Prague on Sunday when 
Miriam Oiemans and Manon 
Bollegraf beat Jana Novotna 
and Eva Martin cova 6-4 7-6 
(7-51 in the deciding doubles. 

In foe day’s two singles 
matches, Novotna beat 
Brenda Schultz-McCarfoy 7- 
6 (7-3 ) 6-3, and Oremans beat 
Adriana Gresi 1-6, 6-2, 9-7. 

Arantxa Sanchez Vicario 
and Maria Luisa Serna won 
their reverse singles matches 
Sunday to give Spain a 3-2 
victory over Australia in a 
world group playoff. 

The victory means Spain 
will stay in foe elite eight- 
nation world group next sea- 
son, while Australia remains 
in group two. 

Sanchez Vicario outclassed 
Australia’s Annabel Ellwood 

6-2 6-0 before Serna gave foe 
visitors an unassailab le 3-1 
lead when she beat Rachel 
McQuillan 6-1 6r3. 

The United States made 
sure of its place in foe world 
group next year when Lind- 
say Davenport beat Ai Su- 
giyama of Japan 6-4, 7-6 (7- 
1) on Sunday in Brookline, 
Massachusetts, to clinch a 
winning 3-0 lead. On Satur- 
day, Mary Joe Fernandez beat 
Ai Sugiyama 4-6, 6-2, 6-2; 
and Davenport beat Naoko 
Sawamatsu 6-1, 6-3. 

In Frankfurt, Anke HubeG/ 
and Meike Babel beat Iva Ma * 
joli and Miijana Locic of 
Croatia 7-6 (7-4), 6-7 (4-7), fi- 
lm foe doubles to give Ger- 
many a 3-2 victory ahd a place 
in next year’s world group. 

Huber started foe day by 
beating Majoli 4-6, 7-6 (7-2), 
6-0. Then Lucie leveled the - 
match, beating Babel 6-4 6-1. 

■ British Men Win 

In Kiev, Greg Rusedski of 
Britain beat Andrei Rybalko 
of Ukraine 7-5, 6-3, 6-3 in foe 
closing singles Sunday, to 
give 'Britain a 3-2 victory in 
its Europe- Africa group one 

other division one play- 
offs, Japan beat Uzbekistan 2- 
1 in the Asia Oceania zone in 
Tashkent, and Ecuador led 
Argentina 2-1 in Buenos 
Aires in foe South American 
zone. (AP. Reuters. AFP ) 




Majoh League Standings 












New York 




4 1 * 





































Kansas Qty 
































Ana mo 



4 44 







New York 














31 S 












St. Louis 















San Francisco 





Los Angeles 










San Diego 






Toronto 100 000 043-0 12 2 

100 100 200—4 10 1 
Hcnttwn and OSrten Avery. Coral <81, 
EsAeknan (8), WovSn (81 and HcttcberO- 
W-Hentgen 9-0. L-Wasdi* 3-4. 
HR*— Toronto C. Delgado (17). Boston. 
OLeory 191. 

Detroit 000 000 MM 6 8 

Nrw York 201 000 OCx-J « 1 

Moenler. M. Myers <BJ and WOUMdc 
PrtWtto Ncbon (8), M. Rivera (9) and 
Girardi. W— Pettittc. 10-5. L— Moefrler. 6-7. 

Sv— M. Rivero OBJ. HR— New York. T. 
Martinez 00). 

Milwaukee 101 100 000-3 9 8 

Bdtinore 000 000 010-1 3 2 

BJVtcOorKto Fetters <71, VKone 18). 

Qo Jones (9) and Mammy: Key, 

TeJAamevra (7). A. Benitez <8>. Mills <91. 
Orosco (9) and Webster. W — B. McDonald. 

8- 6. L— Keft 12-5. Sv-DoJanes (21). 
HR — Milwaukee, Valgt (3). 

Oevefcnd 002 101 100-5 4 0 

Minnesota 001 000 000—1 9 0 

Jocarto Mesa (6). Assenmadier (9) and $■ 
Alomac Robertson Fr.Rodnquez (6). 
Aguilera (9) and Stetabodi. VY— Jo come, l -0. 
L— Robertson 7-7. HRs— Owetand. 

Grteom ft), Ju.Fronco ft). 

Chicago Oil 000 400-6 11 0 

Kansas City no 010 000-2 8 0 

Alvarez. Simas (8) and Perns Rosado. 
Perez (7). Casion (85. Olson (9) and 
Ml-Sweeney. W-Afvarez, 8-6. L-Rusada 7- 
5. HRs — Chicago Durham (7). F. Thomas 
(181. Baines (10). Kansas City. CDavk (14). 
Texas 000 012 004-7 11 0 

Seattle 020 221 001—8 13 0 

O.Ofiver, Whiteside <61. -X. Hernandez (8) 
and I. Rodriguez. H .Mercedes (2j; Fassero 
Chariton 19). Ayafo <9) and Do.Wiison. 
W — Ayala. 63. L— X. Hernandez 0-3. 
HRs— Tews, Pointer 19). Seattle, DaWHscn 
(7). R. Davh (13). Cruz Jr 001. 

Anaheim 502 051 100—14 17 I 

Oakland 001 010 011—4 8 I 

Dickson. Holtz <Bj. P. Hants (9) end 
Ley rite kbraay, C. Reyes ft). Wenger! (SI. D. 
Johnson i9) and Ga-VtiHroms. Vi— DnXscn, 

9- 4. L— Karaay. 2-9. HRs— Anaheim. Phflip* 
(51, Edmonds (16). Salmon 116). Oakland. 
Brosius <41. GaWOSams (2J. 

national LEAGUE 

St. Loots 000 000 010-1 5 0 

CWcogo 300 010 30*— 7 8 0 

Morris. Petkovsek 17), Frascctore 18) end 
Lampkin JeGonzatez. T Adams (Si. Rojas 
(9) and Servers. W — JC-Gonzata. 6-2. 
L— Morris, 6-4. HRs— St. Louis. Lankford 
(18). CJiieoga Sosa (18], Ounstoo (4). 
Houston 200 003 122-10 14 0 

Pittsburgh 000 000 000—0 S 2 

Hampton and Ausmes Loaizn. IA. Wilkins 
(7). Ch ri stia n sen (8). LsxseBe ro) ore] 

Kendall W— Hampton. 5-7. L— Loaiza 6-6. 
HR— Houston. DcAeB (6). 

PModrtpWa 203 Odd 008-12 15 1 

Hondo 000 020 001—3 8 0 

ScJilBng. Spradlin (7). B re w er (9) and 
Lieberthal- KJ.Bjowto HeUtag (6). Cook (6). 
Hutton IB), Whsenant (9), F. Heredia (9) and 
C Johnson. W— Settling, J0-8. L— K. 
J .Brawn, <W. HRs— Phltodeiphia. Rolen 
(111. Florida. C. Johnson (7). 

New York 000 014 040-9 12 1 

AI karts 021 020 181—7 11 I 

Reynoso. Kashhvudg (6). Udle (7), 
McMJchael I®, Jo-Franco (9) and Pratfe 
GJovfne. Gontz (8). Embree (8). Byrd (9) and 
Edd. Perez. W— Udle. 4-1. L— Gtovine. 9-5. 
Sv— Jo.Frnnco (22). HR— Atlanta. McGritf 

Montreal 000 on 210-5 8 8 

Gadnafl 000 010 100-2 12 0 

Bultinget Telford 16). Dad (7), D. Veres 

(8) , Urbina (8) «md Fletcher Burba Suftvnn 
(7). Rerofinger (8). Cano sen (8), Beflnda (9) 
and J. Oliver/ Taubensee (9). W— flukingcr, 
6-8. L-Burba 5-9. Sv— Urbina (16). 
HR-Monbeot Segul (8). 

Son Diego BOO 010 Oil 00-5 11 4 
Colorado 000 004 100 01-6 11 1 
(11 fnnlngsfcHitchcw*, Cunnonc (6J. 
Botched* (7). Ti.worretl (8), Hoffman HO) 
end Flaherty; Thomson, AL Munoz (01 
Leskanic (9). Drpoto (10) and M armoring. 
W— Ofpota 3-1- L -Hoffman. 5-4. HRs-San 
Dreqa. Gwynn 2 US. 

San Francisco 000 ooo 011-2 11 0 
Los Angeles 000 060 Oto— 6 10 1 

Footke. Tavctez (5). VsnLandinghm (61 
end BerrvtiilL Homo, Guthrie fbj, Radinsky 

(9) , To Worrell |9> and Piazza. W— Noma 9- 
7. L— Fonlkc. 1-3. Sv- To Women (211. 
HRs— Son Fronoso. ken) 1)9). Uzs 
Angelos. 2ciletl7). 


Tews J00 015 000—9 12 1 

Seattle 010 000 Ml-2 B l 

Burkett. Gunderson (9) end H Mercedes. 
Lowe. Mammilla (6). B .Welts 18) and 
MaiTono. W— Burkett, 7-7. L — Lowe, 2-4. 
Anahoira 710 201 8CO — 6 0 1 

Oakland 080 010 070-3 18 0 

CFintcy, Grass (7), Hohz (81. Pertlval IB) 
and Td Greene. Prieto. Groom Mi. A. Small 
!R, Taytor (9) and Go.V/i*oms. Vi— C. 
Finley. 6-6. L— Pncta, 6-6. Sv— Peruvol 

Detroit 000 010 010-2 4 1 

New York DOO IM Z3»— « 15 0 

Lira. M. Myers (7), Mroeb (7). Damn (8) 
and Casancnc Cone, Stanton (83. M. Rivera 

(91 and GironS. W-Cona 9-4. L-Ura, *6. 
Sv— Ai Rivero (29). HR— Detroit Hamefin 


Toronto 000 800 210-3 < 1 

Boston 100 >00 000—1 4 2 

demons. Escobar P), Pfc sac ffl.Quoalrl 
(9), SpoJJortc (9) and OBrierc Sete. B. Henry 

(8) end Hotteberg. W— Clemens, 14-1 

L— Sete, 10-7. Sv— SpoQoric (3). 

HR-Taronta. S. Green (81. 

MBwoukaa 100 002 080-3 12 1 

Bottome ago 008 200-2 6 0 

EkfmL Wkkman (7), VZtane (8), DaJones 

(9) and Matheny: Erickson. Rhodes (7) and 

Webster. W-Eldred. 9-8. L— Erickson, 1 1-5. 
Sv — Do Jones (22). HRs — Milwaukee, 

Nisson (8), Js-Valenttn (7). 

Oevetand 010 110 201—7 13 • 

Minneso ta 001 Ml 008-2 8 0 

Hershisw Assernnochev (7), M. Jackson 
18) and S. Alomar Tewksbury. Guardado (7). 
Ritchie (9) and SteWioch. W-Herahlser. 8- 
5. L— Tewksbury. <>8. HRs— Oevetand. 
Thome (25), Justice (18). 

Chicago 300 140 002-11 14 1 

Kansas Qty 112 *08 200—7 14 0 

D -Darwin, MeFlnry (7). Karehrwr (7). T. 
CasSBo (8), Senas (8), R. Hernandez (8) and 
Fabretjas; Belcher, Bones (5), J. Walker (9). 
J Montgomery (9) and Madartana 
Mi-Swecney (9). W— O. Darwin. 4-6. 
L — Betahcr, 8-8. Sv — R. Hernandez (22). 
HRs— Chicoqo. F. Thomas (I9i. Fabregas 
M>. Kansas City, Klmj (16). C Daws (IS). 


New York 120 000 010-4 7 3 

Atlanta 103 080 12X-7 10 1 

M.dark, Acevedo m. Crawford (8) and 
Hundley; G-Maddux, Embree (8). BtefccU 

(8) . Wohlers (9) and Edd. Perez W— G. 

Maddux 12-1 L-M. Clark. 7-6. Sv-Wahkira 
121). HRs— Alkwla, Tucker (9J. Klesko (15). 
SL Louts 00* 000. 1M 001-2 10 0 

Chicago 0M Ml OOO 000-1 7 0 

(12 tarings) 

AzLBencs. T. jAAathews (10), Eckeratoy 
(12) and DHeflce Lumpkin (9): MuDtoHand, 
Bcttenfietd (8). Rojas (9), Wended III). 
Patterson (12) and Serirals. W-T. 

J Mathews 4-1 L— Wended 2-5. 

Sv—E deers ley, (20). HRs— St. Louis. Goeflf 

(9) . Chicago, Dunston (5). 

Son Diego 402 220 000-11 16 2 

redo 600 033 ML-) 14 I 

J.HomOton, Bruske (71. Hottmon (9) roidC. 


-Memorable Moment* from Jolmnie Walker: RYDER CL P irit/i Bernard ('•allarhcr 

_ lYmm m>Ar&&,/moNLy7wo z//Ji 


^ — 1S7 VB-N£VBR-&y-PIE'5tf0raFMMY 

m wrwouip ZFCUfze viewer we , t _ 





r $BZ& miMlAflVZ miANmWjULffi r^k 
FTQi H&M 70 Yfc.P&PPtttG X BALL-yfdtfE-* - A 

us. l 


] 1D&67UE mvrWAPKlNS HAD V\KENi 

ZE$m-.V$A 14-5-BVROPB /?-5 


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li li At li fkvru«l A IKHkN It„r / .Sbi ill ’ tiMHtMNf limb! fulfill.- : IbfwMof I'.tfTm-nJm/* Ij,I. 


JOHNNir Jf-I^ 

Hernandez. Fkrhetfy (A): Swta DeJean (4). 
McCurry (5), S. Reed (7). Leskanic (8). 
MMunoz (9) amt Je.Reed W— J. Harrdton, 
7-3. L— Swffl. 4-2. Sv— Hoffman 07). 
HRs— San Dtega S. Finley ()7). Cotoroda 
Bichette (13). 

Montreal 000 306 000-3 6 0 

andnotl 003 010 Oito-4 8 0 

C Perez and Wkigec Saritoy. BeSndo (B). 
Show (9) and J. Othrer. W— Smfcy. 7-10. 
L— C. Perez, $-6. Sv— Shaw 09). 
HRs — Montreal, H-Rodrigua (17). 

Cincinnati M. KeOy CJ). Edu.Perez (5). 
Houston OHM 100 M I I 

Plttsbw*! 000 000 OM 3-3 6 0 

00 kmlnBS);HoR. B. Wagner (85, Hodek 00) 
ond Ausmus; F. Cordova Rincon (IQ) and 
Kendall W— Rincon. 3-4. L — Hudok, O-l. 
HR— Ptttdwrgls Mimdh □). 

SanFnaKtaco ooo on 007— o is 0 

Lo* Angeles ZOO 000 003-5 9 2 

Gardner, R. Rodriguez (7). Tovarez (8). 
Beck (9) and R. Wilkins; Condlatfi. RwCnsky 
(7), OreHort (8), To.Worreti 19), Osuna (9) 
and Ptazxo. W— Tavarez. 3-1 L— To.Wonell 
1-2. HRs— San Franosca Kent (20). M. 
Lewis (7). R. Witidns (5). Los Angdes. 
Hollands worth (3). Piazza (18). 

Japanese Leagues 



Magnus Gu^afsHm and Magnus La rason) / 
Sweden, def. Jeff Tarango 0) and Jack 


Nicklas Kuflt and Mikoei Tmstronv Swe- 
den. del. Gusto fsson aid Laisson 6-4 6-3. 


Austrata: 27B-9 Innings dosed 
Scotland: 9S6 In 21 S overs. 

Match abandoned due to ram. 















































L T 





















Nippon Ham 



















Charrichl 7, Hon3hm5 
Yokohama 3, Yokuti 1 10 birdngs 
Hiroshima vs. Yomtorl ppil. rain 
Daiei 12. Ora 3 
Nippon Ham 5. Kintetsu 1 
Setae 14 LatteO 



Yakuti A Yokohama 3 
ChunkM 7. Han&hki 4 
Hkoshinta 7, Yamiun4 

SelbuA Lotte 4 
Nippon Ham 9, Kintetsu 3 


British OwtmPwx 

1. Jacques vtBcneuve. Canada. WBItoms. 59 
tops. 30336 Utametera HSUS nutos) m 1 h. 
78 m. 01465 s. 704703 kpb 028445 mptl). 
Z Jeon AJest France, Bencttws at 10705 i. 
1 Atonnder Wurz. Austria Bcnertoa r 1 79* 
A Dcnrid Coudhart S«f< McLorea 31 .279 
i RnH SdwmocheD Gff. Jardorw 31 . WO 

6, Daman H8L England. Arrows \:\ZSS3 

7. Gienunto Ffektidto. Italy. Jordan, one top 
8 Jama TiwM Italy. PrasI Muom one top 
9. Norberta Fontana Aig- Sa^' ** 
14 ToraoMoreucs. BnizH. MmanKonelap 

oanrcits STAMnNtkd; 1. Mrchocl Schu 
mother. Germany. Fcmiri 47 panto. 1 VH- 
bnewe 41 * Atesl 91: * Hemr HoraW 
Freatzm Germany. Yt&am. 19S 4 Erkhr 
Inrmc. Northnn I retard. Fcirori. 14 4 OUwer 
Pants. FrwiCG ProsL li 7. Cotilttiord l« 8. 
Gerbard Bwgcr. Austria Benritan. (0: tw 
Mtka Hakkinca Finland McLurca 14 14 


eoMRweTOM stawuiosi i. Far 
101 6i 3. WiOiOms 6 31 1 Benetton JS. 4 
McLaren 34; 5. Prosl 16’ 4 J«don li 7 So 
u&crM.Stowart4 9 Tyrrell 10 Arrow*. I 

Tour pe France 

Leading ptadngs in 161 5 tons. 100 nAm. 
0th stage of fha Tbur do Franco ovor I6t J 
kms tram Ssutemes to Pau: 
l. Er* Zabel Germany. Telekom 3 li. 22 m. 
ond 24 sz 2. Nicola MMali ftoty. Batik 3. 
Jerocn B^tevens. Netherkmds. TVAit 4. 
Frederic Mancassln. France. 6Aft 5. Lcuri 
Am, Estonia Casinoc 6. Gian Matteo Fogn'mi. 
Italy. Sacco: 7. Andrei TchmlL Ukraine. Lotto. 
8. Massimo sirazzor. IWy. RosJotta 9. Nico- 
las Jaktactt. Franca CofkJfck 1 4 Adrian BoHL 
Italy, ILS Postal oil same time. 

Leading ptadngs in 294 Wlommom, 1246 
mllos, 7th stage trom Uaronnos to Bour- 

I. Erik ZoheL Germany. Telekom 4h. it m 
IS s. 3. Joan Kirsrpuu. Estonia. Casino; 3. 
Jerocn BhJJevcm. Ncthertands. TVM. 4. Rob- 
bie McEwen. Auslraba Rabobank; 5. Mas- 
simo Stzazzcr. Italy. Roslotta’ 6. Francois St- 
em France. GAN.- J. Honk Vogels. Aus- 
tralia GAM 8 Frederic Mancassln France. 
GAN; V, Nicolas Jotabert France. Cofidfi. 10. 
Mario Tro revet ml Italy. Mcreatonc Una on 
same time. 

overall: 1. Codric Vosseur, France. 
GAM 41 h. 46 m. and 41 sj l Zobeiat I m 21 
s.- 1 Chns Soonlman. Brttora GAN. 734. 4. 
Jan UMitdi, Germany. Tc4ekom.3afc 5. Stuart 
O’Crady. AirsfroOa GAM 2:S9. a Moncassin 
3.-04; 7. Abraham Otorxx Spain. Banes/a 
same time; 8. Laurent Jotabert. France. 
ONCE. 3:04 9. Oscar Canwnzind. Switzer- 
land. Mo Pd. 3 72. 10. Dovtdc RcbrtHn. itatv. 
La Franca ec des Jcux 3:34 

Vowex Open Hirosiriwa 

LaaOrtg Itnal acoras Sunday in 00 nutilon 
yon (5708.000) Vone* Open Hkoohmu on 
6.965-yard (6 J36-mctorL par-72 Toner 
Country Club course m Santo. Japan: 

N. "Joe" Ozaki. Jap. 49.71^468-774 

Hkayuki Fo#to. Jap 77*0-70-60-770 

5. Hiqala Jap. 77*4*7-76—779 

K-MuroiaJap 73 70-70-68—280 

S. Kuwobora. Jap 70-«9 71 70-280 

M. kknura Jap. 69-/3-73-70-283 

T. Fukuzowo, loo. 73 73-6871-284 

Tatsuo TakbsokL Jap. 72-70 7O77-78J 

5. Kntayama Jap. 70- 73 73-70-784 

Selkl O* Uda Jap. 71-74- tt)-71 -786 

Todd Hnmlltan UJi. 71-73-49-73—384 

*i KonayomaJap 71 74A8-73-786 

Loch Lomond Invitational 

F*n»l scores otter SeoanSay’s fourth round 

at toe Guitotreom World mviMWcnat « the 
par-71. 7.050- yarn Loch Lomond. Scotland 

Tom L pitman. US. 65-4647 47-265 

FrmeEK, S. Atm 70-49 4546-270 

R. Goosen. S. Ainu 71 7669 67-372 

G Norman. Aire hoi*, 6B6B6968-773 

ftcireFuiie. Sweden 7064 «6- 73-373 

Paul BroadhuraL Eng. 48-704848-2/4 

Payne Stewart U.S. 73 6/-6M8-37J 

M. Hallberrj, Sweden 67-71-71 45-3/4 

Payne Strwmt U 5 73-6 J *568-774 

Stare lanes. U S. 49+S 6A 73-375 

African Nations Cop 


Algeria I.MaOO 


Namibia 0, Cameroon 1 
Ethiopia Ol Monica I 


Tanzania 1. Republic of the Congo I 

Zwnbio 1 Malawi 1 
Mauritius I. Mozambique 3 
STANOINOSc Cameroon 9 points; Namib- 
ia 7: Kenya 4 ; Gabon 3. 

Women’s European 


Germany 2, ttaly 0 



Airetroba 7\ Eng I and 4 


Unitert btalrs 31 ■.lfaies 70 

New England 2. Kansas Coy 0 
Los Angeles 1 Washington D.C l: 
STANDINGS: EnMrrn Coatvrence: DC 
35 potato. New England Tampa Bay 25: 
ColumbiK 17. NY-NJ 11 Western Cotttar- 
ence: Kansas City 28 points Cotozodo 25; 
Dallas 21; Son Jose 1 7; Los Angeles to 

Aotborg. Den. 2, Dynamo Minsk. Betaniu I 
Duisburg. Gez. 2 Hccrenveea Noth. 0 
group z 

Casino Omt. Aust. 1. H Drogavoiiac Cro. 3 

Lausanne. &w>tterian<t 4 Ards. N I retain! 0 
AuAerre. Fr. S Royal Antwerp. Belgium. 0 

Cork Criy. tretand. a Cotagne. Germany. ? 

Dynamo Moscow. Kus. 1 C-cn It. Bcfcjfum. 2 
PonochaiVj. Greece. 4. Boitfctogid Faroes ? 

Somsunspor. Tuifccy. 1 Idrattatetagld Led- 
tar. Iceland. 0 


Osiers. Swe. Z Umvetsdale Riga. Latirm, I 
Welder Bremen Gcr. 0 isianbuispor. Tur. 0 

Hajdok Rodic. Yug. 2 Kanasvmgef. Nor. 0 
Turku PaBooeura. Fm. 1. Lommel Bd. 1 

Odra Wodzislmv. P atamt a 2 lima Slovakia 0 
Lyoa France. 2 Austria Vienne. Austria 0 

Spartak Voma Bulg- ». Montpeffler. Fr. 1 
Grorringen, Nctn. 4 Gtozio Bislnta. Ram. 1 

P rower. Vuq . 0. Ccl*e. Slovcroc. o 
Niznny Novgorod. Russia I. Antatvosnor. 
Turkey, 0 


Ftormna fikolcL a Torpeda Moscow Rus. i 
SV RmL Austria 1 Me rani. Guonna 3 



Brett Steven fzcw feaiond del Work OL Ausiralra. 6 0. 6-0 
Grant Stafford ill. South Africa del. David 

Wheaton United Slates, e-a a 263 


Samis SarQSian (5 :. Armenia del. Lramter 
Poes (7). India, /-* [7 3>. 7 \ a Z 
Steven def StaHwd. a. j. 5.7. 



Kefir Kmncar. U S. and Alcksandor Kib- 
!»»■ RffVW. del Bryan 5h>.>iion and David 

Brett Staven Nw ;.-akmd and jusim 
Ginn^stob. U 5. (4J. Ori. Daw.-] Finch and 1 j 
MNZfiC-tNV U5- 46. 6-3. ? s 



Juan Antonro .'A ana ipom. art korel 
K ik era (S). Slowtaa > 6I7 41.A1 
Magnus Narmon mi Sweden, del Cartas 
Costa. Spain. .'54 3. (hint 

Norman del Mann .* ■> 


Juan ABwrt VHoca 5pat»s def. Alex Cor- 
iwja (2), Spain, 3-4, 7-4 (7-5), 6-4. 

Fe8x Monfilla (6). Spate, def. Wayne Fer- 
retei (8). South Africa 6-1 6-4. lab) 


FeSi Mantilla (6). Spain, def. Juan Albert 
VBoca Spain 4-1, 64 6-4 


Yevgeny KafeMkav, Russia and Daniel 
Vaeefc. Czech Republic (1 J, def. Trevor Krp- 
neroann United Slates and David MocPher- 
son Austraha- 4-6. 7-6 (7-5) 6-1 

Davis Cup 

nme/AiMCMI Zom 


Britain 3 Ukraine 2 


Bahamas and Venezuela level 1-1 
Ecuador lead Argentina 2-1 


GROUP 1 ptay-efl 

In Tashkent: Uzbekistan 7 Japan 3 

EURO/AmcAM zom 

In Bytom Poland A I vary Coast 1 
in Tbilisi Georgia 1 Nigeria 0 
In Jurmola: Lai*to4, Ghana 1 
In Dubkn. Ireland 4. Greece 1 

Fed Cup 
wens group 


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der. Sandra klemova Oech Republics- 1. 7^ 

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Pittsburgh pitchers Francisco Cor- 
dova and Ricardo Rincon combined on 
a JD-inning no-hitter againsr Houston 
before Mark Smith won the game for the 
Pirates with a three-run homer. 

It was the second best-pitched game 
in the Pirates* 1 1 0-year history, bettered 
onJy by the 12-inning perfect game Har- 
vey Haddix pitched before losing in the 
13th on Joe Adcock’s homer for Mil- 
waukee on May 26, 1959. 

But the Pirates didn't win it until 
Smith, a spring training pickup in an 
unnoticed trade, hit his three-run homer 
off Astros' closer John Hudek — Pitts- 
burgh's first run after being shut out-for 
the first 2736 innings of the series. Hous- 
ton won the first two games by a com- 
bined 17-0. 

Cordova and Rincon, former Mex- 
ican League teammates, couldn’t have 
picked a better night to pitch what was 
only the third no-hitter in Pittsburgh by 
a Pirates pitcher. The crowd of 44,1 19. 
lured by a Jackie Robinson tribute, was 
the Pirates’ first sellout outside of an 
opening day since June 5, 1977. 

The big crowd mused Cordova 
through bis nine no-hit innings, explod- 
ing after each of his 10 strikeouts. 

Cordova was lifted after throwing 
121 pitches, and Rincon, who also once 
pitched for the Mexico City Reds, came 
on for a hitless 10th inning. They com- 
bined for 1 1 strikeouts, three walks and 
a hit batter. 

Red* 4, Expos 3 In Cincinnati, 
Eduardo Perez hit a three-run homer, 
and Mike Kelly added a tie-breaking 
solo shot, powering Cincinnati to vic- 
tory over Montreal. 

.V The Reds blew a three-run lead be- 
fore Kelly homered in the fifth off Car- 
los Perez, who had allowed just one 
homer in his seven previous starts. 

John Smiley overcame one bad in- 
ning to get his second consecutive vic- 
tory. The left-hander gave up a run- 
scoring single 10 David Segui and a two- 
run homer to Henry Rodriguez in the 
fourth, when Montreal tied it 3-3. 

Smiley allowed six hits over seven 
innings without walking a batter, con- 
tinuing his emergence from a month- 
long slump. 

Padres 11, Roc ki«s 7 Tony Gwynn 
topped the .400 mark and extended his 
hitting streak to 17 games, going 3-for-5 
to help San Diego win in Denver. 

Gwynn singled twice, doubled and 
walked as Sah Diego won for the second 
lime in she games. He is hitting .4017, 
just .0001 behind Colorado’s Larry 
Walker, the major league batting leader. 

Walker went 3-for-5 to raise his av- 
erage to .4018. 

Qiant* a, Dodgors 5 Mark Lewis and 
Rick Wilkins stunned closer Todd Wor- 
rell with consecutive one-out, ninth- 
inning homers, triggering a seven-run 
inning as San Francisco rallied to win in 

Los Angeles. The loss ended the 
Dodgers' eight-game winning streak. 

Lewis drove Worrell's 2-2 pitch to 
left-center for the tying run. and his sev- 
enth homer. Two pitches later, Wilkins 
hit his fifth homer to dead center. 

Jeff Kent added a two-run homer off 
Antonio Osuna to make it 8-2. Kent has 
20 homers and 68 runs batted in. break- 
ing records for San Francisco second 
basemen previously held by Robby 

Brave* 7, Met* 4 Ryan Klesko hit a 
three-run homer, and Greg Maddux sur- 
vived a shaky start for his 1 2th victory as 
Atlanta beat the visiting New York 

Maddux (12-3) allowed six hits and 
three runs in seven innings. He walked 
two and struck eight before leaving for a 
pinch-hitter in the seventh. 

• Maddux walked Todd Hundley in the 
first — his first base on balk in 36 
innings — and gave up five hits and 

Ba«kbah Roll HP up 

three runs in the first two innings. But 
the right-hander settled down and re- 
tired 12 straight and 16 of the last 18 
barters beiaced. ... 

Cardinals 2, Cub* 1 Pinch-hitter 

Danny Sheaffer singled in the go-ahead 
run in the top of the 12th inning as St. 
Louis won in Chicago before the largest 
crowd of the season at Wrigley Field. 

Tom Lampkin and John Matey 
singled with one out in the 12th, and 
Sheaffer followed with a line drive to 

The Cubs loaded the bases in the 
bottom of the 1 1th, but T. J. Mathews 
struck out Kevin Orie on a 3-2 pitch. 
Mathews pitched two scoreless innings, 
and Dennis Eckersley pitched the 12th 
for his 20th save. 

In the American League: 

Hangars '9, Mariners 2 In Seattle, 
Texas avoided being swept by the 
Seattle Mariners for the second time in 
less than a month Saturday. 

The Rangers ended a six-game losing 
streak to Seattle that included the first 
two games of this series in the King- 
dome. A loss would have dropped Texas 
eight games behind first-place Seattle. 

John Burkett pitched eight strong in- 
nings, allowing one run and six hits to 
quiet the Mariners, who had scored a 
total of 20 runs in the first two games of 
the series. Burkett walked one and 
struck out seven. 

Texas broke the game open with five 
runs in the sixth. 

Angels fi, Athletfes 3 In Oakland. 
Chuck Finley pitched six effective in- 
nings as Anaheim beat the Athletics for 
the ninth straight time. 

Finley gave up seven hits for the 
Angels, who failed to hit a home run for 
the first time in 10 games. 

Anaheim has won five in a row to 

move within three and a half games of 
firsr-place Seattle. 

Yankees 6, Tigers 2 In New Yotk, 
David Cone pitched four-hit ball over 
seven innings, and New York won its 
10th straight over Detroit. 

Paul O'Neill drove in the go-ahead 
run with a sacrifice fly in the seventh 
inning for the Yankees, who won their 
third in a row. 

Cone (9-4) struck out 10 in winning 
for only the second time in his last six 
starts. Mariano Rivera struck out two in 
the ninth for his AL-leading 29th save. 

Luis Sojo went 3-for-4 with a sac- 
rifice for New York. 

Blue Jays 3, R«d Sox i Roger Clemens 
made his first start at Fenway Park since 
leaving Boston for Toronto in the 
winter. He attacked his former team- 
mates and the record books with equal 
vigor, striking out a club-record 16 in 
eight innings. 

Although the total was his best so far 
with the Blue Jays. Clemens (14-3) fell 
short of his major-league record 20 
strikeouts, which he accomplished first 
in 1986 and then again last season. It 
was his third 16-strikeout game. 

Boston's Aaron Sele (10-7) matched 
his career high with 11 strikeouts in 
seven innings, losing his chance for a 
win on Shawn Green’s two-run homer 
in the seventh. 

Brawan 3, oriole* 2 David Nils son 
and Jose Valentin hit home runs on 
successive pitches as Milwaukee won in 
Baltimore. It was the Orioles fifth con- 
secutive loss. 

It was the 400th victory for Mil- 
waukee manager Phil Garner. 

The Orioles’ loss, combined with 
New York's 6-2 victory over Detroit, 
cut Baltimore’s lead in the AL East to 
four and a half games — the closest the 
Yankees have been since May 18. 

Indians 7, Twins 2 In Minneapolis. 
Jim Thome hit bis 25th homer — a 455- 
foot shot into the Metrodome’s right- 
field upper deck — and had two of 
Cleveland's season-high seven doubles 
as the Indians beat Minnesota. 

Orel Hershiser pitched six strong in- 
nings. allowing seven hits for his First 
victory in three weeks. He struck out 
five, and was helped by two double 
plays in the first five innings. 

David Justice. 6-for-8 since coming 
Off the disabled list July 10, hit his 18th 
homer leading off the second. Justice 
added a double in the sixth and had a 
single in a three-run seventh. 

White Sox ii. Royals 7 In Kansas 
City, the Royals tied a club record with 
their 11th consecutive loss as Frank 
Thomas hit a three-run homer for the 
second straight night 

The streak, longest in the AL this 
season, matches the 11 -game slide the 
Royals endured from June 27-July 8, 

1 986. Thomas went 3-for-5 to raise his 
league-leading average to .376. 

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Lewis Wins Heavyweight Farce 

Akinwande Disqualified for Hugging (At Least He Didn't Bite) 

ij h iiii i niy 4i»i»nl IW 

Lenny Webster of the Orioles tagging out Brewers' Jack Voigt, who was thrown out by left-fielder B J. Surhoff. 

Pittsburgh Shuts Down Houston 

Pitchers Cordova and Rincon Share a 10- Innin g No-Hitter 

CiyupIleJ to LW SuJ Fntn Itn 

Two weeks after referee Mills Lane 
disqualified Mike Tyson in Las Vegas 
for biting Evander Holyfield’s ears, he 
presided over the next heavyweight 
world title fight here at Caesar’s Tahoe. 
And again, despite his efforts, it ended 
in farce. 

This time Lane disqualified Henry 
Akinwande in the fifth round of his 
World Boxing Council title fight Sat- 
urday night. Lane warned the Nigerian 
heavyweight six times ro stop holding 
Lennox Lewis, but the challenger per- 
sisted and was disqualified at 2 minutes 
34 seconds of the fifth round. 

Lewis’s previous fight, in Las Vegas 
five months ago, also ended in bizarre 
fashion when his opponent, Oliver Mc- 
Call, broke down in tears. 

*‘He never tried to fight, never tried to 
fight,” Lane said of Akinwande. “And 
the thing is the guy can fight, the guy can 
figbL Never seen anything like thar be- 

“I even tried to show him whar step- 
ping back was. 1 deducted a point, what 
else could I do? I tell you. 1 have great 
respect for his trainer, Don Turner. 1 
went to Don and said, ‘Don, tell him, tell 
him.' And Don told him. ’Fight, 
fight.' ” 

Lane penalized Akinwande a point in 
the second round and stopped the fight 
in the third, fourth and fifth rounds 
before finally calling ir ro an end. 

“I did the best I could to let the fight 
go on, but the time comes when enough 
is enough, and that was enough,” Lane 

Even after Akinwande. who had nev- 
er lost before, was penalized for holding 
in the second round he continued to 
hang onto Lewis every time the cham- 
pion tried to punch. 

Even Akinwande’s trainer. Turner, 
pleaded with his fighter not to hold after 
Lane called another time out in the fifth 

“All you got to do is fight the man.” 
Turner said. 

“I didn’t think I was holding,” Ak- 
in wand e said. “I was trying to fight 
inside. I wanted to get inside but he 
didn't want to back up.” 

Lewis, who fought with abandon for 
one of the few times of his career, re- 
tained his World Boxing Council 
heavyweight championship, and now 
awaits the winner of a match between 
Michael Moorer and Holyfield — as- 
suming they fight this fall. 

“If I could’ve knocked him out, I 
would’ve knocked him out,” Lewis 
said. “I wish he could have fought so I ■ 
could show more of my talents. Ak- 
in wande can't hit hard. He wanted to 

hug all night-” 

Lewis avoided a disaster of his own in 
the third round when Akinwande landed 
a monumental right hand and, although 
H-a ne did not rule it a knockdown, Lewis 
fell to his band. 

“His right hand hit the ground, bis 
glove,” stud Marc Ratner, the executive 
director of the athletic commission, 
after watching the replay. “It should’ve 
been a knockdown. ’ 

But at least Lewis, who earned SI. 5 
million, had rude intentions for once. 
Criticized often for fighting from his 
heels, he charged Akinwande from the 

At the tail of the fourth round, Lewis 
(31-1, 25 knockouts) landed a heavy left 
that dazed Akinwande (32-1- 1 ). 

Akinwande. who is 6-foot-7 (2 me- 
ters) with a reach of 86 inches, didn’t 
use the reach at all except to wrap his 
arms around Lewis. He threw only 107 

1 lunches, landing 30. while Lewis 
anded 87 of 174. 

Akinwande lost all four rounds on 
wo scorecards. His Sl-million purse 
was being withheld pending an inves- 
tigation from the Nevada State Athletic 
Commission. Under a state law enacted 

Friday, the commission can strip him of 
his entire purse, not just 10 percent 
“This is a different ball game” from 
Tyson, said Dr. Elias Ghanem. the com- 
mission chairman. “The commission 
will have to decide what to do.” 

Ratner said a hearing would be set, 
probably next week, to begin possible 
disciplinary' proceedings against Akin- 

“J could just see everything hap- 
pening all over again.” Ratner said. 
“Bur boxing is the most resilient sport 
there is. It will come tack-” 

The operative word all along had 
been awkward. Even Don King, Ak- 
inwande’s promoter, who now has no 
important heavyweights under contract, 
stumbled down a short staircase while 
leaving the ring before the opening bell. 
And then, absurdly, both fighters 
tripped down together during a first- 
round exchange. 

Promoter Dino Duva said Lane did 
the right thing in a fight that did nothing 
to bring back credibility to the sport in 
the wake of the Tyson debacle. 

“I’m ashamed, and I’m sorry to say 
this sport is in trouble,” Duva said. 

(AP. NIT) 

• . 

*> T *. * 




N' , -»Jhrji'h Tire \ 

Referee Mills Lane warning Henry Akinwande to stop holding. 

.u . . , 

GOLF Open Contenders Hit Top Formp. 18 BOXING Heavyweight Debacle p. 19 BASEBALL A 10-Inning No- Hitter P*^ 

^ iicral6»tnbunc^ 


PAGE 20 


World Roundup 

Boldon Up To Speed 

athletics Ato Boldon of 
Trinidad and Tobago blazed to the 
tbird-fastest 200 meters Sunday 
ever at the Stuttgart International 

Boldon finished in 19.77 
seconds in his tuneup the Worid 
Championships in Athens. 

Boldon also won the 100 meters 
in a fast 9.90 seconds, easily beat- 
ing U.S. champion Maurice 
Greene, who finished at 10.04. 

In the 200 meters, Boldon 
pulled away from Greene and 
FranJde Fredericks of Namibia on 
the last curve to win. The winning 
time bettered his own best mark 
this year of 19.82. 

Greene finished second at 
19.89, Fredericks third at 
19.93. (AP) 

Them. Kieiuh/Tlie Anocwed Ptoa 

Ato Boldon celebrating his 
200-meter victory in Stuttgart. 

Mantilla Untroubled 

tennis Felix Mantilla beat Juan 
Albert Viloca in the all-Spanish fi- 
nal of the Swiss Open in Gstaad on 

Mantilla, the No. 6 seed, won the 
final 6-1, 6-4, 64. He did not lose a 
set in the tournament. 

It was the sixth time in seven 
rears a Spaniard has won the title; 
ussia’s Yevgeni Kafelnikov 
broke the streak in 1995. 

• Magnus Norman won his first 
ATP title, beating Spanish rookie 
Juan- Antonio Marin in the Swedish 
Open final in B as tad on Sunday. 

The first set went to a tiebreak. 
but Norman dominated the second 
to win 7-5, 6-2 in little more than an 
hour. (AP) 


The Real Tour Begins 
As Mountains Loom 

But Sprinters Enjoy Flat Stage 
And Zabel Wins in Photo Finish 

By Samuel Abt 

International Herald Tribune 

PAU, France — After nine days and 
more than 1,700 kilometers ? 1.054 
miles) of- racing, the Tour de France 
arrived Sunday at its real starting point. 

Forget Cedric Vasseur, the man in the 
overall leader’s yellow jersey. Forget 
Erik Zabel. Nicola Minali and Jeroen 
Blijlevens, the sprinters who have dom- 
inated the first week along with Mario 
Cipollini, now a dropout with knee 
miseries. Forget the tumultuous charges 

Wales Holds Off Eagles 

RUGBY union Fly half Arwel 
Thomas scored a try with just over 
10 minutes to play to give Wales a 
28-23 victory over the United 
States at Balboa Park in San Fran- 
cisco on Saturday. 

The Eagles dominated posses- 
sion, but could not contain the 
Welsh winger Wayne Proctor, who 
scored three tries. 

The Eagles scored two tries; the 
second, by winger Vaea Anitoni, 
leveled the score at 23-23. 

• Australia scored three tries in 
the last 20 minutes to beat England 
25-6 in a one-off international in 
Sydney on Saturday. 

After an hour’s' play Australia 
led 8-6, but then its backs cut loose 
as the English, 12 of whom had just 
Finished the British Lions tour of 
South Africa, grew tired. 

Ben Tune, Matt Burke George 
Gregan and Tim Horan scored Aus- 
tralia’s tries. (AP, Reuters, AFP) 

Germany Keeps Crown 

soccer Sandra Minnen and 
Birgit Prinz scored as Germany, the 
reigniRg champion, beat Italy 2-0 in 
the European women's champion- 
ship final in Oslo on Satur- 
day. ( Reuters ) 

to the line by several dozen riders. 

Starring Monday, the Tour eaters die 
mountains, where the favorites will take 

“In three days, we'll know who has 
lost the Tour,' predicted Laurent Du- 
faux, a fine climber with Festina who 
finished fourth in the Tour last year. 

Who has won it is a question that 
should not be answered, at the earliest, 
until the race emerges from the Alps on 
July 22. The answer may not even be 
given until the last long time trial. July 
26, a day before the finale in Paris. 

In their last fling for a while, die 
sprinters were at the forefront again 
Sunday in the eighth of 21 daily stages, 
161.5 kilometers in hot and sometimes 
showery weather from the sweet-wine 
center of Sautemes to the hospitable city 
of Pau at the foot of the Pyrenees. 

Once again it was Zabel, a German 
who rides for the Telekom team, who 
crossed the line first, a hair ahead of 
Minali , an Italian with Batik, an H Blij- 
levees, a Dutchman with TVM. Fourth 
was Frederic Moncassin, a Frenchman 
with Gan, who has been seeking his first 
victory all season and who was eighth 
Saturday into Bordeaux, the sprinter’s 

Zabel won there, too, the second of 
his three victories in the opening week. 
In Pau, be and the three other top fin- 
ishers crossed the line nearly perfectly 
aligned. The cameras and die judge gave 
the verdict to Zabel, who used the track 
trick of throwing his bicycle across the 
finish to get that minute but precious 
margin of victory. 

Moncassin. who was charging hard- 
est bat from behind, looked like a winner 
if the course had lasted another meter. 

Zabel was timed in 3 hours 22 minutes 
42 seconds, as was most of the 186man 
field. Vasseur continued to wear the 

forced the withdrawal from the Tour of 
such dark horses as Tony Romioger, 
Evgeni Berzin and Ivan Gotti. 

Another man to withdraw was Alex 
Zulle, who has finished as high as second 
in the Tour and who started this 84th 
edition with 12 screws firmly imbedded 
in his left collarbone and shoulder and. 
many suspected, a screw loose some- 
where. Zulle, a Swiss with ONCE, broke 
his collarbone in a crash in die Tour of 
Switzerland last month but. after sur- 
gery. was back on a stationary bicycle 
two days later and made it to the start of 
the Tour in Rouen 10 days afterward. 

He was a throwback to the days when 
Tour riders soldiered on despite weath- 
er. injury, bad roads and faulty equip- 
ment Suffering and persevering are 
what the Tour de France, and bicycle 
racing in generaL is all about — suf- 
fering and persevering for hours, day 
after day. especially in the mountains. 

In an age when the riders have to be 
asked by the Tour’s organizers not to 
use their mobile phones during a stage 
to call their agents, girlfriends and hab- 
erdashers. Zulle stood out in his de- 
votion to the old ways. But, uncom- 
fortable and fearing further injury in a 
crash, he admitted finally that he risked 
too much to make it to the mountains. 

He went home Thursday. 

Erik Zabel, second from left, wearing the green jersey as the Tour's best sprinter, pushing his bike over 
finish line Sunday ahead of Frederic Moncassin. left, Nicola Minali, middle, and Jeroen Blijlevens, ri&frt. 

Drugs: A 1967 Lesson Unlearned 

By Samuel Abt 

International Herald Tribune 

PAU, France — Far from the action 
of the Tour de France, a man and woman 
made their way Sunday up the desolate 
Mont Ventoux in Provence to honor a 
rider who'died during the bicycle race 
30 years ago. 

He was Tom Simpson, the 30-year- 

I’jinrl Kiiunl/ VpT. - Kniw-i-IVrw 

Erik Zabel of Germany showing his margin of victory in the eighth stage. 

old British star who collapsed on July 13, 
1967 during the 13th stage, from Mar- 
seilles to Carpentras, during a climb up 
the Ventoux in abnormally hot weather. 
Taken by helicopter to a nearby hospitaL 
he did not come out of his coma. 

Simpson was found to have had vials 
of amphetamines, two of them empty, in 
the pockets of his jersey. Doctors ruled 
that the drugs had allowed his body to 
override its warning mechanisms 3 gainst 
suffocating beat and fatigue. Ineffect be 
rode past exhaustion into death. 

There is a monument to Simpson on 
the Ventoux now where he fell, a couple 
of kilometers from its scree-covered top. 
His widow. Helen, and her second hus- 
band, Barry Hoban. a British teammate of 
Simpson’s that day. drove up toe moun- 
tain Sunday to lay flowers at the monu- 
ment- Simpson’s daughter. Joanne, was 
scheduled to attend toe ceremony after 
she ascended toe mountain by bicycle. 

Simpson’s was the most dramatic in- 
cident of doping in the Tour but hardly 
toe only one. Drags have been a problem 
in bicycle racing probably since the sport 
started a century ago, and they continue 
to be so. Only Friday, the Tour’s or- 
ganizers announced toe disqualification 
of Djamolidine Abdoujaparov, an Uzbek 
rider with toe Lotto team, for a positive 
drug finding earlier in toe week. 

He was caught by toe Tour’s daily 
inspection of the overall leader, the win- 
ner of that day’s stage and three riders 
selected at random, as he was. Although 
his was the first doping disqualification 

announced in toe Tour this decade; a 
handful of riders are caught in other races . 
each year. Many use amphetamines,^ - 
Abdoujaparov’s urine showed be had.- - ' 

A more sophisticated drug, not. yet- 
discernible in urine tests, is EPO, which 
was developed nearly a decade ago ^ 
people with kidney diseases. It produces' 
an elevated number of red blood peps^': 
which cany oxygen to the muscles. 

More oxygen is just what riders alSc£ 
need to let them ride longest at their - 
strongest But EPO sometimes makes ■ 
the blood so thick with red blood cells! ; 
that it is suspected of having cost s:, 
couple of dozen riders' lives by shutting .' 

down their hearts as they slept 
in the 

It has been no secret 
sional sport that some riders, moxutqred 
by their team doctors, use EPO as well . 
as the human growth hormone. This 
spring, at the urging of Italian riders 
especially, the sport’s governing body, . 
toe International Cycling Union, began 
spot checks to monitor EPO. . ! • 

In surprise visits to’ team hotels, tech- 
nicians draw a bit of blood from des- 
ignated riders. If their hematocrit levels ' 
the number of red blood cells — is more 
than 50 percent, toe riders axe banned, 
from competition for two weeks. 

Nearly a dozen riders have been sane! 
tinned this season. The most prominent 
was Claudio Chiappucci, who was forced' - 
to sit out the start of the Giro d’ltalia in 
May. His absence there was a major 
factor when his Asics team was passed 
over by the Tour de France organizers. * 




yellow jersey, leading by 1:21 over Za- 
frorn a 20-second 

bel, who benefited 
time deduction as the stage winner. 

Neither is likely to star in the Pyren- 
ees, where the racing will change. After 
all their time on the plains, toe riders 
will have to adjust to climbing, to using 
muscles they have not called on for 
more than a week and to pushing huge 
gears that were not needed on the flat. 

In addition, toe two days in toe Pyren- 
ees will demand different strategies. 
"On Monday," Dufaux said, "the dif- 
ficulties will come in a regular order. 
Tuesday, toward Andorra, they're all 
concentrated toward the finish, ’ ' 

The Monday stage will comprise four 
huge climbs, evenly spaced. On Tues- 
day, the riders tackle five peaks, three of 
them within 50 kilometers of the finish 
in the principality of Andorra. That stage 
is scheduled to last nearly eight hours. 

On Wednesday, the terrain descends 
from the Pyrenees into a long downhill 
to Perpignan, where the sprinters — or 
those who lasted through toe mountains 
— may star again. 

Before then, the riders to watch for 
include Bjarne Riis. Jan Ullrich. Ab- 
raham Olano, Richard Virenque, Luc 
Leblanc, Laurent Jalaben. Davide Re- 
beltin, Oscar Camenzind. Marco Pantani. 
Peter Luuenberger and Dufaux. 

None of those climbers and all- 
around riders has been mentioned often 
in toe first week while they were content 
to stay in the field and try to avoid being 
injured in crashes. That was a fate that 

Despite Pit Delay, Villeneuve Wins in Britain 


The Associated Press 

Jacques Villeneuve won toe British 
Grand Frix on Sunday to come within 
four points of Michael Schumacher at 
toe top of the Formula One drivers’ 

The Canadian gained his fourth vic- 
tory of the season, in spite of a slow pit 

Fomuu Ons 

stop, after Schumacher and Mikka 
Hakkinen both dropped out when lead- 

Schumacher went out on the 38th 

lap with a problem at the left rear of the 

car. and Hakkinen went out on the 53d 
lap with a blown engine. 

The victory for the Williams- 
Renault gave Villeneuve 43 points to 
47 for Schumacher with 9 of 17 races 
completed. Villeneuve has failed to 
finish four races this season as he has 
tried to live up to his billing as toe pre- 
season favorite to win the world title. 

Second place went to Jean Alesi. a 
Frenchman, in a Benetton. Alexander 
Wurz, an Austrian, took third, also in a 
Benetton. It was only Wutz's third 
Formula One race after taking over for 

Gethard Berger following Berger's si- 
nus surgery last month. 

David Coulthard finished fourth in a 
McLaren-Mercedes followed by Ralf 
Schumacher for Jordan and defending 
worid champion Damon Hill in an Ar- 
rows- Yamaha. Sixth place is worth 
one point in the drivers standings — it 
was Hill’s first point of the season. 

Hill was wildly cheered by home 
fans as he crossed the Finish line. In the 
days leading up to the race the Briton 
had been embroiled in a public dispute 
with team owner Tom Waikinshaw. 

Walkinshaw said Hill was unmo- 
tivated and Hill answered, saying his 
car was underpowered. 

Villeneuve took the lead from the 
pole position and led through (he first 
22 laps. He and Schumacher had pulled 
almost 30 seconds ahead of the rest of 
the field when Villeneuve made a dis- 
astrous pit stop. Villeneuve dropped 
back to seventh after the stop took 33.6 
seconds as the crew wrestled with a 
sticky lug nut on the from left wheel. 

Schumacher seemed bound for vic- 
tory with a 35-second lead when his car 
stalled on the 38th lap. 

Villeneuve moved into the lead, but 
after another pit stop, yielded to 

Jacques Villeneuve racing ahead at the start of the British GradPriS 1 

Hakkinen. who took over the lop spot 
on (he 45th lap and stayed in front until 
his engine blew on the 5 3d. handing the 
lead back to Villeneuve. 

The race had to be restarted after 
Heinz- Harald Frentzcn in a Williams 

stalled ar the starting line. The race was 
reduced a lap to 59, and Frentzen was ; 
voiced to stan from toe back. He spun,: 
out on the first lap after the restart along 
with Uyko Katayama, forcing the first-, 
four laps to be run under a safety flag. 

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mtikes colling home or to other countries really easy. 
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