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The World's Daily Newspaper 

Paris, Monday, June 30, 1997 

No. 35,560 


Tung ‘Guarantees’ Elections Next May 


HONG KONG — On the eve of Chinese rule, Hong 
Kong’s future chief -executive. Tung Chee-hwa. set a 
timetable for elections Sunday, and President Jiang 
Zemin of China pledged to uphold human rights and 

But Washington chided Beijing for its decision to 
send in 4,000 troops just hours after the handover. 
Secretary of State Ma^leine AJbri^t, visiting here, 
said it was not ’’the best way to start o^.*’ 

Mr. Tung told Foreign Minister Alexander Downer 
of Australia that elecriems for a new legislature would 
be held in May. The slipping magnate, chosen by 
Beijing to bridge the handover aher 156 years of 
British colonial rule, had earlier promised a vote 
within a year. But he had not named the month. 

‘ *Mr. Tung gave me a guarantee that those electicms 
would take place,' ’ Mr. Downer said, ‘ ‘and he expected 
the elections would take place in May of next year." 

The announcement drew scorn from his political 
o{^X)nents to the pro-democracy camp. 

A senior Democratic Patty member, Andrew 
Cheng, ciairned it was * ‘just a beautiful lie' ' to deceive 
the international community. 

Meaningful elections are seen here among Mr. 
Tung's opponents as a crucial test of the future chief 
executive's credibility, because he has rep^edly em- 
phasized that he would run Hong Kong affairs from the 
territory without interference from Beijing. 

Hong Kong's democratically elected Legislative 
Council, Britain's parting political gift to its (erritory 
and the focus of bitter Chinese-British feuding, will be 
rqjlaced hours after the handover at midnight Monday 
f 1600 GMT) with a provisional legislature appointed 
by Beijing. 

Several of the territory's most popular lawmakers 
will be out of a job. 

fn Beijing, President Jiang renewed China's vow to 

safeguard the freedoms and capitalist vigor that have 
maefe Hong Kong an economic powerhouse. 

Jiang, speaking at a ceremony Sunday in 
Beijing’s Great Hall of the People, vowed ro follow 
strictly (he promises China made under the 1984 
agreement handing Hong Kong back to Chinese rule. 

*'We will firmly uphold the principles of ‘one 
country, two systems' and ‘Hong Kong people gov- 
erning Hong Kong* as well as a high degree of 
autonomy," the official Xinhua press agency quoted 
him as saying. 

China will “safeguard the Hong Kong residents’ 
rights and freedoms in accordance with the law." Mr. 
Jiang said before setting off on the Hrst leg of his 
journey to recover Hong Kong for China. 

Mr. Jiang later flew to the border boomtown of 
Shenzhen, where he was to spend the night before 

See HONG KONG. Page 4 

One Family^ 2 Views: Fault Lines Come Clear 

By Keith B. Riebburg 

KisM»gfifH A>sr Service 

Abbi i»n<«Wrbp AsMiQMcd 

Tung Chee-hwa, the Hong Kong executive-designate, welcoming For- 
eign Minister Qian Qkhen of China, right, to the colony Sunday. 

■ >• •-•I 

,, I 

-I-' ‘t I 

— I 

. .. ;'-' 

Labor’s Equal Role Gets 
A 2d Look in Germany 

Keep Workers in the Boardroom? 

By John Schmid 

Iniemaihiwl Herald Tribune 

COlXXSfE — Thepresidentofthe 
Federadon of German industry wants 
to advance the oatim’s economic re- 
structuring by challenging a bedrock 
tenet of the Gennao ecorxxnic model: 
the aotomatic entitltuneat of workers 
to half the seats in rompany board- 

“This, thing that we celebrated 20 
years ago is not making it," said 
Hans-Olaf Henkel, refor^ to die 
landmark 1976 law that ensures a 
parity of w^er repcesentation, and 
influence, unique in the world. 

No one of Mr. Henkel’s stature has 
ever ksibusly dared to call the work- 
ers’ leiaeseDtatioa system into doubL 
Bat the leading lobbyist for German 
business is raising the issue now. he 
said, because Gennany faces its first 
signifinnt opportunity to hold a genu- 
ine nationa l (febate on the system. 

Speaking in an interview in his of- 
fice in Cologne, the fonner boss of 
IBM Europe said that two decades of 

experience had laid bare ‘‘a couple of 
serious disadvantages" in the system. 

But any effort to weaken MU- 
besrimmung. or co-determination, as 
the system is called, puts Mr. Henkel 
at risk of a powerful backlash. Co- 
determination is practically sac- 
rosanct in die German labor move- 
ment, a linctqiin of what many Ger- 
mans still proudly call their “social- 
market' * economy. Unions have con- 
sistently rejected the slightest en- 
croachment on their right to elea half 
of the members of a company's board 
of supervisors, portraying iiasthekey 
to industrial hannoDy. 

In the view of corporate Germany, 
opt-out clauses frexn co-determina- 
tion would give the nation back some 
of its competitive edge in the age of 
economic globalization. For years, 
entrepreneurs have grumbled about 
the mtsome ritual of binding social 
consensus, which forces managers to 
modify each initiative so it passes 
muster with the work force. 

See GERMANY, Pages 

HONG KONG — Asa counsel for the Crown and a 
justice on Hong Kong's highest court, Simon Li wore 
red robes and a powdered wig and impartially, dis- 
passionately di^nsed Britain's jnstice in its last East 
Asian colony. But in retirement, the former judge is 
opinionated and uncompromising — staunchly pro- 
Diina. highly critical of the territory’s “so-called 
democrats," he said, and bitteriy resentful of the 
British colonizers he long served. 

“With all humiliiy, I was window-dressing — the 
Chinese Crown coui^." he said of his earli^t gov- 
ernment post. And now that Hong Kong is about to be 
absorbed by China, Mr. Li is bursting with patriotic 
pride. “1 am Chinese." he said. “I have a sense of 
belonging. I am proud of my Chinese identify." 

A unique city peers Into an uncharted ftiture. 

• Europeans' deep roots In Hong Kong. Page 4. 
Asian envoys criticize West’s approach to China, 
e Can Hong Kong's dynamism survive? PageSr 

Gladys li is m many ways her father's daughter — a 
Cambridge-educated lawyer who speaks in British- 
accented English. But in their politics, father and 
daughter are poles apart Where the elder U eagerly 
awaits Hong Kong’s re mm to the Motherland, lus 
daughter feels anxiety and trepidation. 

‘T have very mixed feelings about it,' ' said Miss Li, 
a former bar association chainnan and an outspoken 
proponent of democracy. “A lot of people are ob- 
viously nervous about Hong Kong tiansfe^g to the 
sovereimty of a nation t^’s under Communist rule." 
She addkl: ‘ ‘I don't feel particularly Chines^ because 
I was bom in England. I don’t feel I'm return^ to my 

The differences between the Lis, father and daug^i^, 
reflect the ambivalence Hong Kopp as a whole is liKling 
on the eve of this colony’s transidai to role. 

See FAMILY, Page 4 

GKatMccnce Fimcc-Picne 

Police surrounding pro-democracy activists as they set up a banner of the Goddess of Democracy 
on Sunday near the Hong Kong Convention Center, where the handover to China will take place. 

Start of a New Era for China, and the First Test 

Beijing Leaders ’ Year of Judgment *One Country, 2 Systems Will It Work? 


For NATO Expansion 

By Patrick E. Tyler 

New York Times Service 

By Jeff Gerth and Hm Weiner 

■ New York Times Service 

WASHINGTON — Ai night, Bruce 
Jackson is'oesident of the U.S. Com- 
mittee to tkpand NATO, giving in- 
timate' dinners for senators and foreign 
By day, be is dhector of stra- 
tegic plahmi^ for Lockheed Martin 
Ccffp., the 'wQild's Inggest weapons 

Mr. Jackstki says he keeps his two 
identities Imit his ctxnpany and 

his lobbyiM gmnp aw. fi ghting the same 

but at a price: playing by NATO roles, 
wttich leqaire Western weapons and 

“The stakes are high" for aims 
makers, said Joel Johnson, vice {xesident 
for international affairs at the Aerospace* 
Indnstries Association, a trade groiq). 
“Whoever gets in first will have 

See NATO, Page 8 

BEDING — Like no other event in 
Qtina's. modem history, the return of 
Hong Kong to Chinese rale at midnight 
Monday nuiks not only the recov^of 
lost territories, but also die beginning of 
anew era. 

Call it the post-Deng er& 

China has been looldng for a starting 
pi^t since die paramount leader, Deng 
Xiaoping, died m Fetmraiy and left the 
fiMe of the nation in the hands of a 
younger generation of Communist 
Party ieatto whose stature will never 
rise to his cff Mao's level. 

T^ is peiiiaps why these youi^er 
men are so cage? to take credit for the 
^ of China's century and a half of 

shame, and to cronqiet the victory they 
have been fortunate to share in. Em- 
perors failed; China's Nationalist |ov- 
emmeots under Sun Yat-sen and Chiang 
Kai-shek failed. But a band of Com- 
munists — the successors, of Mao — 


have fulfilled the dream of every pa- 
triotic Chinese. 

The victory radiates out across a cen- 
tury of nartuied grievances that arise 
finm China's suffering at die hands of 
fore^giiezs, ftom the humiliations during 
the ^hun Wars in the 19th century to 
the anocities ii^cted by Japan in 
World Warn. 

See TEST, Pag« 8 

By Keith B. Richburg 

Washbigtan Post Service 

HONG KONG — At the stroke of 
midnight Monday, when Britrin relin- 
its prosperous Crown Colony of 
H<Hig Kong to the Communist-run 
People's Rc^blic of China, a bold and 
antested experiment to wed two vastly 
different systems and lifesfyles will be- 

Never before has an unabashedly 
capitalist, politically open society been 
alKcxbed peacefully into an avowedly 
communist state that rigidly controfs 
personal freedom. Vietnam's 

takeover of the capitalist South 22 years 
ago. by contrast, was a forced mar- 

China's leaders, keenly aware of the 

high stakes and the intense interest of 
the world, have signed a guarantee that 
Hong Kong can maintain its separate 
system and lifestyle for SO years, under 
a formula known as “one country, two 
systems." If it works here, Beijing's 
leadership hopes the same formula 
might one day be used tojsersuade its 
breriteway province of 'Taiwan to give 
up any i^ependence aspirations aiy j 
return to “the motiierland." 

But will it work? 

Even China's many backers here say 
the maniage will not be an easy one. 
Tensions inevitably will arise. There 
vrill be disputes between officials in 
Beijing and Hong Kong over the mean- 
ing and interpretation of the sometimes 

See FORMULA, Page 8 

create a'faage market for deir wares. 

BffiQpgQf dniiiiw arc at stake in the 
next globri arms bazaar, weapons sales 
to Csitral Eteopean nations invited to 
join NATO. Ararisskm to tiie Western 
fraternity will- bring political jnestige. 

A Plan With Teeth Backfires on Tyson 

He’s Disqualified for Biting Hoi jfield’s Ear 

By Tim Kawak^ 

Las Angeles Times 

W o w w tand Pliices 

Andim.,.^^FF Lebanon a3.000j 

Anaes.,.^12:»FF MorDCCO...,...;M.16Dh 
CBmeraarr'.TjnoCFA Qatar 
Egypt Mirion ._12.50 FF 

Fianbe....:....iab0FF SaudAiabia~.ia00R. 
Qabon....^T100CFA Senegai.._1.100CFA 

tlaly.„— Lka Spain ...22S PTAS 

hoty Coast. 'ijgso CFA TurSsia Din 

Joidan.....^.,...1'250J3 UA£ 1000 Dirh 

Kuwait 1,.700 Hb U.S. ML (Eir.)_$120 

LAS VEGAS —Mike Tyson drew blood, and the stain of his actions might 
never be washed away, for him or for the sport he once ruled. 

In what was billed as the biggest fight in boxing history Saturday ni^t, 
Tyson twice out .his moudqiiece and bit Evander Holyfield during 
cUnehes in the third round, apparently in r^bntion for a second-roimd bntt 
by Holyfield. This wasn't histoiy, it was hysterics. > 
lltefost bite trok a chunk out ofHolyfirid's earand the second, coming onfy 
23 seconds later, caused dte referee, MUk Lane, to disqualify hiin in tiiis World 

Boxing Association heavyweight fight the end of the third round. 

spit but his mou%iece and bit me on the ear," said Holyfield. who 
reacted furiously both tiroes he was bitten, the first time drawing a savage 
pitch into the ropes from l^n while Holyfield's back was turned. 

T anp ppnatiTftd TysoD two TOints (one for the bite.^me for the push) after 
the first bite — which occuired with 33 seconds left in the third round — then 
warned TVstmi that he would disqualify him if be bit Ifolyfield agam. 

After gave Holyfield a^t four minates to recover, with blood 
streaming from his ear, Tyson bh him again in another clinch with 10 

See FIGHT, Page 21 

Coy HeHnaffeidtn 

Evander Holyfield, after a piece of his 
right ear was bitten off by Mike Tyson. 


Albanians Vote in Bid to Restore Order 


Making Death Harder 

Asu/nu:inc page 7. 

14‘Yeaf‘Old Arrested in Beheading 

5 Killed in Pakistan 
In Muslim Bivaby 

LAHORE. Paldstan (Reuteis) — 
Gunmen on motorcycles kUled at. 
least five people, four of them in a 
mosque, in apparent Muslim sectari- 
an attacks here, the police said Sun- 

The attack at the Sunni mosque 
followed the killing of a Shiite sect 
activist, Jaffer Hnssain, who was shot 
at his office by two gunmen riding a 
motorcycle, tiie police said. 

After four months of virtual an- 
archy, in which 1,600 pieople have 
been reported killed, the people of 
Albania cast ballots Sunday for a leg- 
islature, hoping to return the country 
to orderly govemment Some polling 
observers ronatked that the vetting 
seemed to be going pro^y, but at 
least one election offtcial was shot to 
death while he was in a voting booth 

and there were reports of aimed bends 

intimidating voters in some eteedw 
districts. Other sites reported theft 
and damage to ballots. Page 6. 

Books Page II. 

Crossword Page u. 

Opinion Page 10. 

Sports Pages 20-22. 


Pagan 11-1& 

The IHT on-line htlp;// 


PAGE mo 

A ‘Deserted’ Patient / Loss of Suicide Option 

Making Death Harder 

By Amy Goldstein 

V^shingion Aar Service 

P ITTSBURGH — The pain had become 
gnawing, and the chetnomerapy was filling 
^nthia Ooan's days with Cttistant nausea 
but doing little to slow the march of cancer 
Arou^ her lower abdoneo. Seven months before the 
Supreme Court upheld laws that foibid doctors to 
assist in suicide, she sar in her physician’s exasa- 
inatioo room and tried to ask him to he^ her die. 

*T am aware I might go out in a singularly 
uncomfortable way,” the 62-year>old English pith 
flusor began. She wanted to mow ”how you reel 
you would treat me during my last days.” 

The young family doctcx' squirmra. Medicine 
had develops ways to keep padenB comfortable, 
he said. But he would never pull the plug, never 
break Ae law. It was not for mm to play 
Rrofessor Onan had not stated what she really had 
in mind: A prescription for a narcotic potent enough 
Aat when her life seemed intolerable, she could 
bring about her deaA. But in Ae ellipdcal way that 
patients and doctors ofien talk about deaA, she had 
the answer she had feared. He would refuse. 

Her cancer continues to advance, and stae'con- 
tinues to believe she eventually will take her own 
life. She is not certain how. She has begun to save 
painkillers but d(^ not have nearly enou^ she 
says, *‘Eo do the job aeatly.*' 

WiA its ruling last week, the Supreme Court 
made her intention more difficult to accornplish. In 
finding that patients have no constitutional right to 
physician-assisted suicide, the justices did not fore- 
close Ae possibiliQr that some states may l^alize 
Ae i^actice. Nor did Aey to curtail Ae debate 
among doctors, politicians and ethicists. 

But even the prospect of a vigorous debate is of 
no solace to Profbssor O nan , who believes she has 
perhaps a few months to live. “The court has failed 
me utterly,” she said, sitting on her dei^ in a 
Pittsburgh suburb Ae <^y after Ae decision. 

Permsylvania is one of 44 states that criminalize 
assisted suicide. In five states, Ae law is silent Only 
in Oregon, where voteis face an assisted-soicide 
referendum for Ae second time this fall, is Aere any 
likelihood Ae practice may become legtd soon. 

In such a climate. Profksor Onan said, Ae Su- 
preme Cooithas said, ” 'YouTI have to v^ait until 
we finish our dialogue,’ ” but as somebody who is 
dying, she said. “1 feel deserted.” 

She is, in some ways, an onlikely 
champion of suicide. A woman who 
treasure^ books and adventurous travel, 
she is 14 years into a btq)p;^ second 
marriage. From her first mania^, she 
has four daughters and a son. A faculty 
member at Ae University of Pittsburgh 
since 1966, she fael^ to found Ae 
women’s studies' program there. She is 
jascioated by mym and comparative re- 
ligions. She describes her own fslA as 
“Judeo-Christian Buddhist wiA a-litde 
bit of Sufi thrown in there.” 

She was unaware aiQrihing was wrong 
until her gynecologic felt a mass duiiira 
a routine checkup in December 1995. 
The following month, she made her hus- 
band, Lee, promise to tell her Ae oruA 
the moment she awqke from surgeiy. 
After a six-hour operatioo. in which doc- 
tors removed one-third of her large and 
small intestines, she looked ap at him as 
he said, “Dear, it’s cancer.” It was 
o\^uian cancer Aat had spread. . 

(^n/nv> (W 


IRST came leave from work, 
cbemoAeiupy and Ae bazga^ 
wiA God. Inen one clear spring 

.day a year ago, she was med- 
irating on the deck when she noticed a 
cloud form, then drift Aen dissolve. 

“As 1 will dissolve,” she recalls Aink- 
ing. DeaA seemed a natural thing. 

And she remembered a cousin, a big 
man wiA a booming voice who de- 
veloped colon cancer five decades ago. 

In his final i^ys, down to 90 pounds and in intense 
pain, his doc^ told the faimy be would ead bis 
suffering by mjecting air into a vein. The family 
considered Ae doctor merciful. her own life. 

Professor Onan came to believe, would spare pain 
for her family and herself. 

She found herself shedding possessions last sum- 
mer, She gave away a dozen trash bags filled wiA 
cloAes and two dozen cartons of books. 

A few months ago, she abandoned chemother- 
apy. It wasn’t slowing Ae cancer, and h filled her 
wiA such constant nausea Aat she ci^d not con- 
centrate even when her eldest daughter, Kate, sat by 
her side, rea^g favorite essays aloud. 

Now she has a new oncologist and has decided to 

Cynthia Onan of Pittsburgh, who is terminally 

months longer, feels that the Supreme Court 


iU with 

cancer and expects to live only a few 

The Norm: Passive Euthanasia 

By Gina Kolata 

A'rt' lijrl Times Service 


Aai states may continue to ban doctor-assisted sui- 
cide, it addressed the kind of deaA m which doctors 
actively help patients to kill themselves. 

What was not considered in that decision is Aat 
nowadays many, if not most Americans Ae because 
someone — doctors, family xnembos or Aey Aem- 
selves — has decided that it is time for Acm to go. 

What might be called manag^ deaAs, as dlstina 
fixrni suicides, are now Ae nonn in Ae United States, 
doctors say. 

The American Hospital Association says Aat 
about 70 percent of Ae deaths m hospitals happen 
after a d^ision has been made to withhold treat- 
ment. OAers Ae when Ae meAcation Aey are 
taking to ease Aeir pain depresses, Aen stops, Aeir 

There is less information on Ae deaAs Aat occur 
in nuraing famnes and m private homes. But doctors 
say they often discharge patients from a hospital 
wiA Ae implicit understanding Aat they are sending 
Aem home to Ae, wiA a raoiphine drip for pain or 
wiAout the ministrations of what they would call 
overzealous doctors at a hospital who might start 
antibiotics to quell a fever or drugs to stabilize a 
fluttering heart 

“It's called passive euthanasia.” said Noiman 
Post director of Ae Program in MeAcal Ethics at 
Ae Universiiy of Wisconsin. “You can who's 
mvolved and is it really consensual, but Aere is no 
question Aat these are planned deaths. We know 

who is dymg. Patients aren’t just found dead m their 

Doctors, Dr. Post saiA decide not to provide 
antibiotics to treat an infection, or Aey withdraw 
drugs that mainmin a patient’s blood pressure, or 
Aey remove a patient from a venAator. 

Maurie Marianan, a gynecological cancer spe- 
cialist at Ae Cleveland Clinic, s^ a typical case 
might AvoWe a woman wiA ovarian cancer who at 
first responded to chemoAerapy but whose cancer 
now seemed impervious to Ae powerful drugs, and 
bad developed bowel obstroctions. 

He could operate to try to remove Ae obstruc- 
tions, but the chances are that it woAd do no good. 
Or, be saiA “you can put a tube In to drain her 
stomach so she doesn't throw up.” But Aen, he 
addeA “you have to ask Ae woman, Is that what you 
really want?” She would have to live wiA that tube 
for the rest of her life. 

Dr. Markman tells Ae woman Aat he wants to 
focus on her symptoms laAer than on her un- 
derlying disease. He sends home wiA pain 
meAcations if she is m pain and anti-nausea drugs if 
she is nauseous, but Ae woman will never eat or 
drink agam because of her obstructions. Sbe will not 
return to Ae hospital for any sort of aggi^sive 

Dt. Markman said he never bluntly tells Ae 
woman Aat Aere is no hope and she is going to die. 
but he, and probably she, know what is going to 
hs^Tpen — and soon. 

“My intent Aways is to relieve suffering.” Dr. 
Markrnan sAA “If thA’s my goA, I can look myself 
m Ae eye. I can go to sleep ax rnght” 

“has fouled me utterly* with its decision 
upholding state laws - like Pennsylvania's - 
that crinUnalise physician-assisted suicide. 

try another chemoAerapy. But hope is tempered 
' tire fine of tire accompany^ pamphlet, in 
which she learned that Ae suivivA for 

ovarian cancer patients who try it is 3.9 monAs. 

Professor Onan’s pain is more controlled now 
wiA a fefltanyl patch, and she sAl has Ae soengA to 
walk in Ae wo^ on pleasant days. But Are avmds 
crowded places; her resistance to infection is too 
low. And because her digestion is iaqaireA she has 
not s^ral lowed solid food in seven months. A monA 
ago, ste told her English depaitment chairman she 
would not be commg back. 

She has a living No extraorefinaxy drugs, she 

has instructed. No ariificiA life support And A- 
Aou^ she is fond of Ae nurses arc Ae pastorA 
counselor who have begun to visit from a iocA 
h<CTree — and has been told of hospice workers* 
gkUi in controlling pain — she worries that her final 
suffering will be urunanageable. “That makes me as 
nervous as Ae devil.” she says. She has told Ae 
hospice workers of her plans. 

“Life is a gift f don't take it firom myself wiA 
anything like a flip attimde,** she sAA “But, my 
feeling is, I woAd damage people worse by hanging 
on and watching them watch my misery.” 

Yet Aven Ae state of Ae law, jt has difficAt 

to fmothe means to 1^ herself. After her con- 
versation wiA her family practitioner, she has not 
mendooed Ae topic to her other doctors. 

L ess Aan two months ago. she and her 
husband came across Ae book “FinA 
Exir“ by Derek Humphry, founder of the 
Hemlock Society. Inside, she discovered 
chans listing combinations of drugs that can prove 
fatA in ^recified amounts. Now her desk bolds new 
books on “Ae practicalities,” as she puts it 
She met recently wiA a Umtarion minister who 
has helped oAer terminally ill people find ways to 
commit suicide. She now' thinks sbe knows how to 
try to secure enough pills, perhaps fitxn a sym- 
paAetic doctor out of town. Her husband and 
daaghto^ are willing to be present at Ae end. So are 
her daughters. Bur sbe wants to be carefA not to 
implicate anyone else in an illegA act “I may go 
down tire road to a motel,” she saiA 
And alAough she is comfortable wiA her de- 
cision. sbe wonders how it will be judged 

''Wlty woAd there be some kind cu fiii^ Saint 
Hster sayii^. 'You can't come in here. You don't 
have Ae ri^t credentials.’ And all my credentiA 
would be is I sunned until Ae end. and I Adn't take 
my own life. If what I am doing is morAly or etfaicaUy 
or religiously wrong. 1 would have to trust in some 
sort of foxgiveaess. It will be an honest mistake.” 

Russia’s Space Progran 
Takes a Blow From Mir 

By David Hof&nan 

V.bshingm PosiService 

MOSCOW— VasiliTsibliyev, com- 
mander of Ae Russia si»ce station 
Mir, was twisting a joystidc m each 

hand Wednesday, trying tomanwvCT an 

unmaosed cazgo drone into a docking 

^But even wiA control directly ia bis 
hands, something went ^ng. The 
cargo drone. Progress M-34, 1*“®^ 
in© Mir at five times Ac normA speed. 
Ae PoR-giflng say, puncturing a rescMii 
nuxiule and lAsing agam quests 
about Ae viability ot Russia s troubled 

space program. . ^ • 

Once the pride of the Soviet Umon 
and a visible symbol of Ik superpower 
status, space exploration in pwt-Soviet 
Russia fragmented in ways Aat mir- 
’ ror deeper ■ rifts in this turbulent so- 

Yuri Gagarin, Ae first Russian cos- 
monaut, still stands prondly wiA his 

chest thrust forward and his hands swwt 

in a giant monument in Ae midme 
of Moscow, but all aroimd him is ev- 
idence of a new. more difficult era. 

In business. Russia has found its 
pi arft in space — wiA powerfA Rroton 

rocker boosters, which are a commeFciA 

success. But oAer space ventures have 
inHuding a Mars probe that fell . 
back © EarA shoitly after liftoff. 

The Buran, a Soviet copy of Ae 
American space shuttle, flew oAy once 
and was shelveA Now, a discarded test 
of Ae shnttie is an attraction at 
Ae Gori^ Pa^ recreation center. 

Strapped for cash. RusAa had © 
struggle for months to meet its com- 
mitment © financft and build compon- 
ents for Ae fetnre foteinatiouA Sp^ 
Station as part of a multinationA effort 
f nriivfing Ae United States, Canada, 
Japan and the European Space 

And the 1 1-year-old Mir. Ae world's 
firn space statim, lumbers through Ae 
cosmos like a erraky old bus, often m 
need of repair and plagued by emer- 
^ncies. including the fire AA broke out 
l^b. 23 m a solid-fiiA oxygen-gener- 
ating canister, spewing smoke into Ae 
station until it was extinguished 1^ Ae 

Russia has been forced © squeeze Ae 
vast, ambitions and well-fuQded Soviet 
space program m© a country, an econ- 
omy and a budget that ate far smaller 
than a decade ago. 

hi 1987, when Ae United States was 
reeling in the aftermaA of Ae Chal- 
lenger milosion. Time magarina head- 
lined: “The Soviets overtake AeU,S. as 
Ae No. 1 space-faring nation.” 

Now, the far-fioqg Soviet-era space 
design boieaus and factories are isolated 
and crumbling. Ae giant military-in- 
dustrial complex Aat supported the 
space program has dried up and Russia 
is left deqrerately trying to succeed wiA 
what it hA left 

“Space is ope of Ae few ilungs Aey 
can cluro world-power status in.’ ' said a 
Western specialist “Even in aAIetics. 
since the country got smaller. Aey can't 
count on dominating tire Olympics. 
They aren't going to Scathe car tnaiket 
away firom the Japanese any time 

This desire to remain an important 
player m space helps oqjlain why Rus- 
sian ofificiids are reluctant © abandon 
Ae Mir space station, despite the in- 
creasing frequency of dangerous mis- 
haps. Tbe 107 feet (33 meters) 
long, was launched in 1986 and was 
intended © remain m space only until 
1994. Later, its life span was recal- 
culated to 1^7. 

Now, Ae Russians hope to keep it 

aloft for two more yea«, makii^ re- 
pairs, as Aeir ticket to participation in 
Ae future international space station. 

Moreover, Ae Mit has been a suc- 
cess TTie Russians have nrn expe- 
rience wiA long-term survival tn space 
than anyone else, wiA a space stanon 
program str^hing back nearly three 

Except for two brief perio<te. Russian 
cosmonauts have lived aboard ^ 
tiniioiisly for nine years. The Mr is a 
nrecursor of the mternational space sta- 
Son to be assembled between mid-1998 

and 2003. ^ „ . 

At a time when Ae Russian gov- 
ernment is slashing most budgets, tiie 
Mir remains an important source of 
money for Ae Russian Sjwce Agency. A 
five-year agreement wiA the Natic^ 
Aeronautics and Space Administratirai 
will bring the Russians S473 million, 
wiA additional millions coming fiom 
French, German and oAer qwice pas- 
sengers. . 

The dollar payments are especially 
valuable because much of Russia’s gov- 
emment-fun^d space program does n ot 
fuceive <^gh. Rather, the govemmeDt 

The 11 -year-old Mir 
limibers throu^ the 
■ ; cosmos like an old bus. 

- gives out paper — usually promissory 
notes issued Arougb commercial banks, 
in exchange for goods and services. 
Ultimately, the notes are redeemed for 
only 85 percent of Aeir face valne, 
accorAng to Sergei Gitxnov. spokes- 
man forEnergiya, die Russian rocket 

“For us, Ae experiments on Mir are 
our main work. There is no way we can 
Aop it, give it up, or make it sec- 
ondary,” said I^. Gromov. Despite Ae 
seriousness of the accident, he added, 
“Itdoesnotfiightenus.” ; 

“Of course. It affects our prestige, 
not in the best way,” he added. “Whai 
Apollo 13. the feroous epic story, faced 
a failure, of tire engines, Ae difficult 
conAtions were presented as great hero- 
ism of the American astronauts.” 

' ‘From the pomt of view of our equip- 
ment. safe^ and hardships, Russian pet- 
soonei have all the reasons to be proud 
as well,” Mr. Gromov declared. 

The Mir has six laboratory modules 
and several docking pons, including 
one adanti^ for Ae American ^ce 
shuttle, m adAtion to Ae central 2()-ton 
core, there are qrecial scientific mod- 
ules — Kvant. Kvant 2, Krisrall. Spektr 
and Priroda — which have been added 
over Ae years. In the accident wiA the 
cargo dmoe, a liole was punched in 
Spdetr, which was launched in 1995. 

Americans on Mir often have com- 
mented on how much cf Ae Russians’ 
tune is spent fixing Ae ship. Jefty Lin- 
enger, who was on the Mir A February 
when the fire broke out, said later, ' 'You 
have © jury-rig some things, and you 
have to do repairs using less Aan ideal 
hardware.” Michael Fo^e, Ae Amer- 
ican aboard Mir, said before Ae ac- 
cident that Ae Russians were working 
“harder and harder” to fix Ae space ' 
station, mvolving “continuous r^>air 
work.” But be stressed that he enjoyed 
helpix)| Ae Russians “just fixing Abes 
and usmg a wrench.” 

When the crash occurred Wednes- 
day, the commander was testing a new 
manual docking system. Accoi^g © 
Mr. Gromov, it was being empli^ed 
because Ae olA automatic system, 
which had been m use for IS years, had 

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Flooding Hits North Italy 

SONDRIO, Italy (Reuters) — Forecasts of 
more rain Suiiday prompted fears of more 
flooding and mud slides m nonhero Italy, and 
civil protection officials wanied people to 
avoid unnecessary travel 

At least'two people have been killed by Ae 
floodi^ or road accidents caused by land- 
slides in the last days m Lornbardy and oAer 
northern r^ions. 

But the Areat of serious flooding of Ae 
Adige River in Ae Trentino and SouA Tyrol 
regions near Ae Austrian border abated as Ae 
level of Ae river began to fall. 

Transit Aid for Ae Blind 

ROTTERDAM (AFP) — BImd and partly 
sighted rail passengers are to^gin testing a 
new electroQic guidance system in a Rot- 
terdam train station Monday. 

The system, dubbed — Orientation 
of Persons through Electronic Navigation — 
uses infrared transmissions on a portable re- 
ceiver equipped wiA earphones. 

After the test in Rotterdam ends July II, 
the system w A be fried in Paris at the Qretelet 
Metro station, and at Heathrow and South 
Kensington on Ae Loidoh UndeigrounA 

Jordan has rqj^ed an Israeli proposal 
to hanAe securi^ at an expanded aiipon Aat 
would serve Eifot in Israel and Jordanian 

cities on Ae Gulf of Aqaba. A ^okesrrum for 
the Civil Aviation AuAority said Sui^y Aat 
Ae proposal was rejected as an infirmgemeot 
of Jordan's sovereignty. (AP) 

A typhoon fizzled out after cutting 
across Ae Js^anese islands mto Ae Pacific on 
Sunday, leo^s three pe^le dead or missing 
and 38 mjured in heavy winds and down- 
pours. (AFP) 

The first section of a new subway in Ae 
souAem Chinese city of Guangzhou opened 
Sanirday, a Beijing news report saiA It is Ae 
fourA city in China to have a subway, af^ 
Beijing, 'Tianjm and Shanghai. (AFP) 

This Week’s Holidays 

Banking and govenunear offices will be 
closed or services curtailed in Ae following 
countries and Aeir dependencies this week 
because of national ana religious holidays: 

MONDAY: Canada. Colombia. Xvpublw of Congo. 
QnaienuU. Hong Kong. Macau. Svydiells, Sudan. 

TUESDAY: Bangladedi. Bot&wona. Burundi. 

Canada. Cfiaiuh Guatemala. Hong Kong. Macau, mdsoin, 
Rwanda. Somalia. Surinanw. Taiwan, HiailaBd. 

WEDNESDAY: Hong Koig. Macau. 
FRIDAY: Bossia-Hcrargovina. Inn. Po t rro Rico. 
Rwanda. Smbo. United States. 

Saturday : Algena. Aimetua, C recti RepubUc. 
Slovalda. Venouela. 

Sources: yp Morgan, Reuters. Bloomberg. 













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Middle East 

Forecast for Tu es d a y through Thursday, as provided by AceuWeather. Asia 


North America Europe 

Weim and ttumid in the Windy and cool over Eng- 
East wtri) aeaiiered Oiun- land rtvough Thursday wlih 
darshowen: hsavt o r dmm> aomo shown n die south 
pouis an tifcely m die Car. iMoei ot Franca and Gar* 
elnas. Sunny, hot and dry many wm cloudy and 
Irom the Southwest into cool with showers, while 
iha somham Frame. Thur>. heavier rams vriii be likely 
dsrsiomis wtl rumM frorn in Poland and souiharn 
ihft norUiam Plains to me Scandinevie. Some ihun- 
Gieet Lakes; some wiR be darsiorma In the Balkans, 
severs with heavy down* but very warm and dry in 
pours. UkrakieandBelarua. 


Warm and humid in Tolqio 
with fust the chance of a 
thunderstorm each day; 
ihiindarstorms are more 
likely across Korea. Hot 
and dry m northeastern 
and western China, but a 
broad area of ram and 
thunderstonns will reach 
from near Xian into 
Sichuan province and 
noohem Myanmar. 

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J .’j 

• ‘.I- 

Bold hut Tired, Court 
Blazes Judicial Trails 

By Joan Biskupic 

U jsA/ffiiri'N P. •^r Senirt 

t Washington — one supreme 

-isL: 7 . ‘ }•- ^ justice went two nights without 

Ev " * lit", sleep. Another, struggling to write his 

' '"■■•'Ct'..' ‘ disseming opinion, repeatedly missed 

':r-’ -j'-r deadlines for passing a draft around to 

7 :r' . ^ •' colleagues. A few stumbled wearily as 

'i'" ■ -7 ir*T, 7 '^' they read aloud the court’s final rulings 
, •... ■ : ^nch. Chief Justice William 

jV-.j "■■'‘.7 ' ' ■‘''"ivisj. ' Rehnquisi caught himself announcing a 

‘ case with a citation from 1987, not 
;; k[, IW. corrected himself and sighed. 

week completed an exceptional rush to 
.r finish out the term, they delivered a 

series of decisions that, more than any in 
recent memory, will have an immediate, 
substantial impact on American lives. 


- • ; .1 




5 re 

Til*- n.yrar.^,^ 
likr an 

New Tax Law 
Abounds in 
Breaks for 
A Select Few 


By Clay Chandler 

Aur .^cn/(V 


WASHINGTON — To hear its pro- 
: ponenis tell it. the big winners of the tax 
c legislation appro\'ed by the House and 
Senate last week would be hard-work- 
: ing middle-class parents, students Strug- 
giing to finance a college education and 
businesses and investors who generate 
. new jobs. 

But a host of others would cash in, 

Clinging to both tax plans are scores 
of detailed proposals to slash taxes for a 
variety of ^ple and small businesses, 
includir^ bakery companies, apple 
cider distillers. Jow-income farmers, 
luxury boat owners, sky-diving instruct- 
ors and even whaling captains. 

Under provisions in the House and 
Senate tax bills: 

• Truck drivers, airline pitots and 
1 laborers in Alaskan fishing camps could 

claim more generous deductions for 
; meals away fii^ home. 

• Frienos and relatives of business 
executives would be spared the ejqp^se 
and inconvenience of reponing ^ge 

' benefits when they hitch a ride on a 
: corporatejet. 

• States served by the railroad 
Atritrak would be able to tap into a new 
federal Inter-city Railway Fund that will 
be financed by siphoning ofif half a 
penny a gallon feom taxes now collected 
on gasoline and other fuels. 

^oogiessional tax writers are often 
critici^ for raking "rifle shots" — 
care fully targeted proposals aimed at a 
liny group of benefici^es. But the tax 
cuts this year feature "bow" and "har- 
. poQo" shots as well. 

A proposal by Senator Onin Hatch. 
Republican of Utah, responds to makers 
and retailers of archeiy products, who 
have long complained about the excise 
tax on arrows. At their behest, 

Hatch has drafted a proposal to replace 
that tax. which is collected fiom diou- 
sands of sporting-goods retailers, with a 
new oue collected from the hundred or 
so companies that manufacture four ar- 
row components — shafts, points, 
knocks and yanes. 

Senator ^ank Murkowski, Repub- 
lican of Alaska, meanwhile, won Senate 
support for a provision that would grant 
whaling captains a credit of up to S7,S00 
for food and equipment expenses in- 
curred during hunts recognized by the 
Alaska Eskimo Whaling Commission. . 
The charge is urgently needed, Mr. 
MurkowsJd argued, to enable whaling 
captains to "continue the age-old tra- 
dinoQ of sharing whale meat^ muktuk 
whale blubber and skin with all mem- 
bers of their North Slope villages." 

The tangle of proposed provisions 
would add another layer of complexity 
to the already. Byzantine federal tax 
code and deprive the Treasury Depart- 
ment of tens of billions of dollars over 
the next five years. Some tax experts 
and economists warn that few of the 

The justices ^ke to the desperation 
of (he rerminally ill as well as to die 
anxieties of parents and concerns of 
civil libertarians struggling widi por- 
nc^phy on the Iniereet. They ad- 
dressed claims of religious bigotry and 
community fears of sexual predators. 
And they laid down new rul« for the 
interminable tug of war between Wash- 
ington and the states over their roles in 
d^ing with social concerns. 

This was a term in which the work of 
nine justices — individual, fallible, but. 
collectively, final — tborou^ly inter- 
sected with the lives of Americans. 

In an era when the federal govern- 
ment works incrementally and often 
without obvious consequence, this court 
moved decisively to setting brachmarks 
for the next centu^. It was not just 
another term affirming previous rulings 
on abortion protests (though there was 
that) or intsrpreting establisln^ anti- 
discrimination statutes (there was that, 
toot. This was a watershed, term for 
eniering arenas, cyberspace and assisted 
suicide, into which the high court had 
never been. 

A Stanfu'd University law professor. 
Gerald Gunther, characterized the term 
as one of great social and constitutional 

"The cases showed the mythology of 
the court, large in American life, and the 
actuality of the coun as a defender of the 
conslituiion," he said. 

Indicative of the difficulty of the is- 
sues in this October-tD-June term, 
nearly every big case — even some Aat 
were argued last fall — was decided in 
the past 10 days. And nor with ease. In 
any term, there is a last-minate rush 
when the justices are circulating draft 
opinions and trying to corral votes on 
their side. But there is a 5-to-4 rift on the 
coun that appeared often this term. In 
the final days on these emotional cases, 
justices on each side often jockeyed to 
state their case more powetfuUy. 

The five who most consistently stand 
together are Chief Justice Rehnquisi and 
the Justices Anthony Kennedy, Sandra 
Day O'Cbnnor. Antonin Scalia and 
Clarence Thomas. Justice Kennedy and 
Justice O'Connor sometimes swing 
over to more liberal positions but there 
was an unusual cohesiveness this term 
among the five. 

The signature of this group is an 
effort to strengthen stare sovereignty 
and diminish the reach of federal au- 

On social issues, the coun is harder to 

^ 051. Ruth Bader Ginsburg and John 
Stevens, for example, were in their 
oraditiona] roles standing apan from the 
Rehoquist five in a decision permitting 
public schoolteachers to provide re- 
medial help to students at parochial 
schools. (Tne majority said it did not 
violate coosdtutioaal separation of 
church and state.) But in a separate case 
both endorsed a standarcl that makes it 
easier for govemments to interfere with 
religious practices in some cases and 
said Con^ss had gone too far in 
passing a religious frorfom bill. 

In that case, City of Boeme v. Flores, 
the majority struck (Iowa a statute that 
would have allowed ^venunents to in- 
fringe on religiouspractices only if they 
have a heal£, safety or other "com- 
pelling interest" in doing so. Justice 
O'Connor ended up dissenting with 
ticular passion, saying the court had 
harmed religious liberty; "Our nation's 
fbaniiers conceived of a republic re- 


Qctaiip MlcalJntrttvgwn 

REMEMBERING A MASSACRE — Marina Reza placing flowers at a memorial to 17 farmers killed by the 
police ID 
of American 

/m iVAM llitt » UldglVt MU W A f gCU UftWa 9 AUlW MIV 

9 Aguas Blancas, Mexict^ two years ago- Two of ber sons were among those killed. The Organization 
rican States is investigating the shootings of the farmers, who were on their way to a protest meeting. 

Away From Politics 

• The army's top enlisted man tried 

to persuade a female sergeant whom 
he allegedly had solicited for sex to teh 
army investigators that diey "just talked 
about career development." acconhng 
to a tape-recorded fie made to her 
that was played at a military hearing. 
Sergeant Major Gene McKinney. 46. a 
popular figure who is both the cere- 
monial and practical leader of the anny 
rank-and-file, has been charged with 18 
criminal counts, including adulte^ and 
assault, for allegedly proposirkmmg 
four women. (WP\ 

• Monitor Radio, the public radio ser- 
vice of the Church of Christ, Scient^, 
has gone off the air. The network, which 
was strapped by huge financial losses, 
ended its news and feature reports after 
an effort to find a buyer fell apait. Mon- 

itor Radio’s shutdown marked the end 
of the church's effort to build a lasting 
electronic presence that began dui^ 
the Depression. "I think that Monitor 
Radio was a worthwhile experimeni on 
the pan of the church, since we managed 
to reach over a million listeners a week 
domesticaily and uncounted millions 
ovN shortwave." said David Cook, the 
edittM* in charge of broadcasting at the 
church and its weekday newspaper. The 
Christian Science Monitor. fNVT) 

• The countdown has begun in Florida 
for another launching of space shuttle 
Columbia on a science mission that was 
cut shon in A{^ by a defective feel cell. 
The countdown is supposed to end with 
Columbia blasting onTuesday with the 
same astronauts and same faboratory 
e.’Cperiments as before. But bad weather 
was a strong possibility. Thunderstorms 
are expect^ most of the week, putting 
dte chance of favorable w'eather for the 

launching at a mere 10 percent for Tues- 
day and only slightly better for the next 
two days. tAPi 

• .4 robot spacecraft from Earth will 
plummet to Mars on Jnly 4. giving 
humanity'. NASA hopes, its first contact 
with the surface ofthe red planet in more 
than two decades. The s^ce aeeacy’’s 
Pathfinder spacecraft is scheduled to 
bounce onto Mars inside a cocoon of 
heay>*-duty air bags on Friday. If it can 
avoid the catastrophic failures that have 
befallen its recent predecessor, the land- 
ing could mark the resumption of a 
steady, long-term eftbn to discover if 
there are any signs of ancient life on 
Mars. T^t question has been hotly de- 
bated since evidence of microscopic life 
was found in a fist-sized meteorite from 
the planet. The mission could also an- 
swer other questions about Mars, which, 
in the knouD universe, most resembles 
Earth. (WP) 

proposals would benefit the economy, 
ana dut they could do much hann ^ 
distorting ecbnomic decisions arid cor- 
roding ^Uic trust in government. 

America "is being pecked to death by 
ducks,’* said'Mancur Olson, an econ- 
omist at d)e University of Maryland; 

Whefeo' these finely calibrated in’o- 
posals will bwome law depends on the 
outcome of a conference committee fear 
will meet next monfe to reconcile the 
, Houk and Senate biUs. But it seems 
inevitable that many will survive. Re- 
publicans and Denrocrets alike defen- 
ded special-interest breaks in the bills to 
balance the distasteful spending cuts in 
this year’s balanced buoget plan. 

. The profii s i o n ^ tiny tax breaks “is 
all too characffiristic of what we've seen 
ftom past Congress^," said William 
Niskanen, chahraan of fee Chto Institute. 

‘ ‘The big surprise is how quickly we’ve 
seen the Republican agenda sl^ fttnn 
reform in the 104th Congress to business 
as usual in the 105th Congress." 

In letters to Republican leaders In 
CoogresSj Treasury Secretary Robert 
Rubin chtf ged last week feat fee House 
and Senate tax bills were ‘ .'heavily laden 
with special-ihteresi provisions." 

But the adrhinistration is backing sev- 
eral generous corporate tax breaks feis 
year, including an export tax credit that 
would be worth billions of a 
consortium of software manufacnirers. 
It also has indicated that it is against 
-eliminating fee inultibillioo-dollei fed- 
eral tax su&icly to producers of ethanoL 
a corn-based feel ^(litive. 

ceptive to voluntary religious expres- 
sion, hot of a seculv societ>' in wtuch 
religious expression is tolerated only 
when it does not conflict with a gen- 
erally applicable law." 

In fee Internet case, fee justices de- 
cide feat a broadly wrioen Jaw to k<^ 
indent materials off the Internet in- 
truded on fee free speech rights of 
adults. Id trying to deny nunors access 
to pomogn^hy. Justice Stevens s^. 
. fee law CTectively suppressed fee free 
speech rights of adults. "The level of 
discourse reaching 3 mailbox simply 
cannot be limited to feat which would tie 
suitable for a sandbox," he wrote. 

To prepare for feelr first case relating 
10 cvMrapace, fee festices signed onio 
fee fntemet, some for fee first time. In a 
place where old-fashioned is the fash- 
ion, this was itself remaricable; the coon 
gives away quill pens as souvenirs and 
some of fee justices still write draft 
opinions in longhand. 

The Internet case also shows how fee 
usual rules cd politics die at fee court's 
door. While Congress and Presideiu Bill 
Clinton enfeusiastically signed onto le- 
gislation banning pornography on fee 
feteniet, partly in fee name m family 
values, even two justices most often 

wife the ideological ri^t — 
Justice Scalia and Justice Thomas — 
did not hesitate to reject legislation that 
trod on free speech. 

So much of the court’s work is 
shrouded in secrecy tliM it is difficult to 
truly know what the justices were think- 
ino — b^ond fee final words of feeir 
qpinions — or how much those rulings 
(feanged in fee final days. 

Lights in some chambers were on 
well past midnight Until Friday, when 
‘ feecourt finally delivered its last decree, 
the staff did not know when the end 
would come. Chief Justice Rehociaist 
had hoped to hand down fee last ruling 
by Thursday. But last-minute judicial 
haggling on fee Bratfy gun-control law 
precluded feat Justices Stevens and 
David Souter, dissenting on fee case, 
jarred behind the scenes wife Justice 
Scalia, who wrote the majority. 

By fee tirqe that ruling, strilong down 
part of a handgun control law, was an- 
nounced I^iday morning, two of fee 
coun’s black leather chairs were empty. 
Chi^ Justice Rehnquist and Justice 
O’Connor already h^ left town. The 
chief Justice had put great pressure on 
his colleagues to mish last week and not 
trail into fee first few days of July. Mere 
discipline may partly have been his mes- 
sage, but be ^so had tickets for Rome. 



Nostalgia Fuels the Craze 
In Baby Boomers^ Discards 

The castoffs of Baby Boomers' 
youth are fetching big pices in flea 
markets, garage sales, art galleries 
and yes. junk shops. 

Buyers motivated by nosial^ for 
the '40s, '50s and '60s are finding fee 
sleek lines, solid craftsmanship and 
skUlftil combination of plastics and 
wood irresistible. Vinyl dinette sets 
are very popular. Dad's old bamboo 
w'et bar fetch a handsome price. 
And a sofa shaped like an amoete is a 
sure sale. rep(^ The Boston Globe. 

The trend appears to have begun in 
the late 1970s, when fee first Baby 
Boomers began aiming 30 and having 
to funiish houses of their own. Now, 
as more buyers scour shops for '50$ 
funiinire. prkes are soaring. 

"Why is it popular?" asked John 
Pasqninelli. owner of aftimimre shop 
call^ Johnny B. Wood. "Because 
’5Qs and ’60s staff is cool. man. 
Everybody wants to be different, and 
the '50$ were differenL" 

Short Takes 

Dennis Crabb had a dream — a 
pipe dream. A plumber by training. 
Mr. Crabb became obsess^ wife fee 
idea of using common plastic plumb- 
ing pipe to design a cheap, light- 
wei^t dome that could be used to 
bouse people left homeless by natural 
disasters. He immersed himself in the 
project, plowing rime and money into 
IT and neglecting his plumbing job in 
Topanga Canyon. California, until he 
couldn't ke^ up his rent payments ~ 
and was left homeless himself. But 
fee story appears headed for a happy 
ending. Mr. Crabb's dome-shaped 
sfaelrer has got good reviews from 
experts. "It’s a fascinating little sixuc- 
mre," an architect who specializes in 
domes told fee Los Angeles Times. 
Mr. Crabb recently lined up work as a 
limousine driver. He plans to save his 
earnings until be can afford a patent 

Speaking of shelter, the last time 
Aleece Whitcomb. 17, was at Grand 
Forks Air Force Base, in North 
Dakota, it was not to watch planes fly. 
An April flood bad left her and thou- 
sands of others in the area homeless, 
and air force officials provided a 
hangar until people coiud reclaim 
their bouses. "1 never really thought 1 
would want to go back." Ms. Whit- 

comb said Saturday. But that night, 
fee hangar opened its doors again, as 
the site of fee prom for her and hun- 
dreds of ofeer students firom the city's 
two high schools. The schools had 
suffered too much damage to hold the 
proms. So fee air force mroed its stark 
steel and concrete hangar into a huge 
ballroom. Designers donated 500 
dresses, and a Minneapolis fcsmal 
wear shop donated 250 rental tuxedos. 
A floral company i^ovided 500 white 
roses. "We’ve just been over- 
whelmed by fee generosity of the air 
base." said Tern Hcupedahl, activ- 
ities director for Red River High 

A wave-riding alligator has been 
captured off Myrtle Beach. South 
Carolina, after sending swimmers 
scrambling. The 6 -fboi (1.8-meter) 
gator led officers of fee Natural Re- 
sources Depaitmeni ob a wild 8 -mile 
( 12 -kilometer) chase before its cap- 
ture. Tlie animal's mouth was secuiM 
wife duct tape to be taken away. Dur- 
ing the May and June mating season, 
alligators tend to migrate in search of 
romance. But fee wave-surfer was the 
fifth gator captured in fee area in 
recent weeks. "It’s been a bit un- 
usual," said Duke Brown, a local 
beach safety' directOT. 

Brian Knowlton 

What About 2011 ? 

WASHINGTON -- The Repub- 
lican celebtations over tax bills 
were not finished before fee Clin- 
ton administration ancl RepnbUcan 
l^ers began talking, coimdently. 
about how to work out final le- 
gislation to balance the budget in 
2002. But that roure is easy com- 
pared wife fee effon required to 
^p fee budget balanced and avoid 
abysmal deficits when baby- 
boomers retire a decade later. 

By the time fee Senate finished 
adopting its tax bill late last week, 
chere was work undo' way on fee 
formidable short-term issues of 
Medicare costs and the tax treatment 
of capital gains. The administration 
likes fee House tax bill less than the 
Senate version, because it is stingier 
wife low-income taxpayer and 
more generous on capit^ gains. 

In some ways, the votes last 
week were easy. Cutting SI 35 bil- 
lion in taxes for more than 50 mil- 
lion Americans is something politi- 
cians find agreeable. 

As for fee long-term problems, 
experienced budgeters are not con- 
vinced that Congress has the cour- 
age to face them. Bob Greenstein, 
executive director of the Center for 
Budget and Pob'ey lYiorities. spoke 
of feem as "fee demographic 
tsunami of the baby-boomers re- 
tiring and the mushrooming of fee 
tax cuts at about fee same time 
around 2011 ." 

“Even if you have balanced fee 
budget before then," he said. ' 'def- 
icits return and renim with a ven- 
geance." worse than in fee mid- 
1980s. (NiT) 

High-Level Torpor 

monfes into his second term. Mr. 
Clinton is riding high in public ap- 
proval ratings. But current and 
former aides say there are signs feat 
he and fee first lady, Hillary Rod- 
ham Clinton, are eager for new 
advisers with new ideas. 

Later this summer, Paul Begala, 
a Clinton consultant during fee 
1992 campugn. and Sidney Blu- 
menthal, a journalist who advised 
Mr. Clinton's 1996 campaign, will 
take jobs as .senior fvesidential 
aides, ff all goes as planned, they 
will be playing influential roles 
crafting Clinton's second-term 
message and explaining it to a 
broader public. But there is some 
early grumbling, prompted in pan 
by confusion over what preci^y 
each man will do. 

Some staffers privately contend 
that fee White House is suffering 
from slumping morale and a dearth 
of caearive energy. The staff chief, 
Erskine Bowles, is atnmed to tm> 
cess but not politics, some of his 
suboitimates say. fWP) 

Quote /Unquote 

Representative David Skaggs. 
Democrat of Colorado, busy Dying 
to raise fee $4 million feat a race 
against fee state's Rqrublican sen- 
ator, Ben Nigbfeorse Campbell, 
would require next year; "It re- 
minds me of boot camp in the Mar- 
ine Corps. As daunting as it is, I’ve 
seen other petmle Lesser than me do 
it. If they could do it, I could do 
it” (WPi 

24 Catholic Groups 
Urge Church to End 
Annulment Process 

By Laurie Goodstein 

WmAirtjtRin Post Strvice 

WASHINGTON — Twenty^-four 
CafeoUc dissident groum Usu^ an 
open letter to fee nation’s Roman Cath- 
olic bishops Sunday calling for fee 
choich to abandon fee aonulnteor pro- 
cess and allow divorced Catholics to 
lemany in the church. 

*rbe groups are asking feat tte Cafe- 
oUc Church adopt fee practice fee 
Eastern Orthodox churraes, which al- 
low divorces. 

The groups were joined in a news 
conference in Boston by Sheila Rauch 
Kenne<ty, an Episcopali^ who wrote a 
book criticizing the annulment process 
after fee church, despite her opposirion, 
annulled her marriage to Repi^mative. 
Joseph Kennedy, Democrat of Mas- 

A divorced CatiioUc who has not re- 
ceived an annulment is iu)t peimitted to 
remany in the church, while those who 
reraany outside fee chorcli ere not sup- 
posed to go TO confession or r^dve 
Holy Coc^union. To obtain an an- 
nulment, one spouse has to prove m a 
church tribunal that the marriage was 
never sacramentally valid under church 
law. The other spouse does not ne- 
cessarily have to agree. 

"There is still a lot of pain out tirere 
caused by fee whole issue of fee way the 
church handles remamage,*' Slteila 
Kenedy said "Maybe nobody has the 
answer, but it's clear there's a 
problem here, and fee first step is to 
admit tiiere is a problem." 

Although 9 out of 10 divorcing Cath- 
olics do not choose to go ferough the 
process, the number of atuiulmeots 
erant^ has risen steadily in fee last few 
o^des. In fee United States, 54,463 
were granted in 1994. 

In meir letter, the 24 groups say the 
jxocess "forces many to violate their 
consciences’’ to convince fee tribunals 
to grant annulm ents. Asserting feat the 
church allowed divorce and remarriage 
until the year 1200 , the groups also cali 
for "a restoration of fee tradition of the 
first 1,100 years" of church history. 

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HONG KONG HANDOVER / Between Concern and Confidence, a Very Wide Chasm 

Unique City Peers Into 
An Uncharted Future 

Ibices of Anxiety orEnihmiasmEnuinate 
From Asians Most Varied, Complex Society 

By Edward A. Gaigan 

f/eHfYort Tims Service 

HONG KONG — Tben U in all of 
C hina, from the Gobi Desert tt) Man- 
chmia, tbe Forbidden City to the 
cloud-wr»ihed peaks of Ouhis; no 
place like Hong Kong. 

In ways proroond and trivial, in mat- 
ters of cdtuie and habit» in ejqMctations 
and certainties, Hong Kong is utterly 
iiniitrg any othra place in fTiina It is a 
place wim a press as wildly fiee as tbe 
markets diat oel^ fuel its growth, a place 
accustoned to ^ owrt mind, a place 
where people insist on controlling their 
own future. 

It is diis place and its 63 million 
pec^le, h^ refugees £rmn the waves of 
political and economic duos that 
marked the first three decades of Com- 
munist rule in Beijing, diar will be re- 
turned to the of the motherland 

at midnight on b^mday. 

ritorially Chinese, was very much 
somedimg else, a^ in 1984 said as 
much to Margaret Thatcher, then the 
Bri^ prime minister. ' ‘We had to con- 
si^ the actual situadoQ <rf Hong Kong, 
China andGreat Britain,*’ I^. Deogtold 
bfo. Thamher tbe day both countries 
agreed on Hong Koog's levosion lo 
Chinese rule. ‘‘The resolutkm that all 
three parties would accept was ‘one 
country, two systems,’ which wwld al- 
low HcKig Kong to retain.its caphalism, 
its status as a fim port and its position as 
a financial center/’ 

‘*lhere was,” intooed the Chinese 
leader, “no od^ posdble solutioiL” 
This formula, enshii^ almost litur- 
gi^y in the nieeches of the man who 
will rule Hong kong, a shipping ^coon, 
Tung Chee-hwa, and in the sermonettes 
of Bdjing leadeis, is uttered to reassure 
Hong Kongers that all will be well, that 
things will not change too much, diat the 
future is no cause for concern. 

But w<»ds alone will not bridge the 
cuasm between concern and confidence, 
between Bdjing and Hong Kong, fOT 
many people here have lived in t^ina- If, 
great numbers of people here beUeve, 
Qima so routinely, so instindively lies 

to its own dtizens about virtually 
everything, why. tiiey ask, will Beijing 
tell the trodi to Hopg Kongers. 

“Let me yon this,” shouted a 
secQiiiy guari at a housing |vpject who 
gave <^y ^ surname, Kjo, because be 
he was afraid of “retribation” for 
speaking his mind. “Hong Kong will 
become a colony. Hong Kong 

wiU become worse than ^en it was a 
British colony. The Communists can’t 
be trusted.” 

A very difiecent tune echoes fiom die 
aeries of Hong Kong's business com- 
muniiy. “Ihm's no lack of confi- 
denee,” insisted Nellie Fong, a partner 
in the American accoontum fom Arthur 
Anderson and a member incomiiig 
government’s cabineL “What Hong 
Ifong people regain on July 1 is our own 
identity, te regam OUT heritage.” 

The^ voices, whether suffused with 
flnriftly or rnrhiia^gm, mmnan* fiom a 
society and ecrmruny amr^ the most 
varied and conf^ in Asia. Fimn the 
larger economic iodicanKs alone, Hong 
Ktmg is a startling success story. Its per 
capita GDP of $^400 has kiag since 
ODtoaced diat of dte colonial sovensigD, 
and is 40 times larger than China’s. 

Hong Kong’s roads, while perhaps 
not ck^ged by them, are home to more 
Rolls-Royces than any otiier chy, and 
one tun every six Htmg Kong residents 
mries a cell jdiooe. And just Iasi mondi, 
the white colonial house owned by Eric 
Ebtang. a descendent of a rntmineiit 
I9lh ceotuiyooeyi/nd^nsoildiorafeadi- 
er over $ 1 00 milhon, die most eiqpensive 
house on earth. 

More cctetuxieis shuttte through Ho^ 
Kong's letixdnals than any odier port in 
the world. Themost feud^ investment 
in China is Ho^ Kmig’s, about 58 per- 
cent of all foreign money invested in die 

Buttressing wiTtnring <iynam- 
ic economy is a political system t^t has 
become open and democratic, a press 
that has boisterous and irreverent 
arid a dvil service \riiose incomiptibility 
is die envy of Aria's. 

At least 38 Chiocse-langu^ news- 
papers are published here daily, along 
widi 12 English-lanOTage papers. And 
none of thm are suqect to overt oeo- 


v. -. i .•.T'r'i-! V‘ 

■ ■t'. -< :%4|. ^ 

^y,., ; 'i,*: ■: .'r 


Prince Charies knigfatiiig Donald Tsang, Hong Kong’s financial sec- 
retary, at Govemmeot House on Sunday. Sir Dmiald sdd it would be up 
to his new boss, Tong Cfaee-fa wa, to decide whether he could use the tide. 

No less iiu^ral to Hong Kong^ suc- 
cess, at ksst acMrdingm the lastBritisb 
cokttial governor, Chris Patten, has 
been die dramatic transfofxnation of the 
temtoiy's politics, horn a secretive, co- 
lonialist authoritaiianisni, to a folly 
elected legislaoire that acts as a dedrive 
check on executive excess. 

Depute the contention of many busi- 
ness leaders dial Hopg Kong's people 
care only about mavin£ money and not 
politics, recent polls stow precisely tbe 
opposite to be true. The pereeniage of 
p^le giving to political |»rties is rising 
and four out of 10 people say they have 
put their names on polidcri sigoahn 
ical participation in the workl, according 
to the Hong Kong Transition Project, a 
multi-university study. 

Yd dte teaisiOQS between tto comply 
dynamism of Hong Kong and the rigid 
intotennoes of Beijii^'s leadership to- 
ward its own people will remain the fault 
line altmg which Hong Kong’s future 
will be charted. 

On Tuesday, the president of China, 

Jiang Zeanin, and Prime Minister Li 
Peog will arrive here, the first Chinese 
leados ever to set foot in cotonial Hong 
Kong. On the outride, tiie dty is an 
dectiic ennpany's dttam. 

Along the watearfiont of Victoria Har- 
bor, the glass-sbeazhed office towers 
have been dn^ied in swirls cf neon and 
popcorn strings of colored lights. 
Chinese slogans glow from atop banks 
and waterfalls of light beads stream from 
roof tops. But M die inst^ there is a zriix 
of wnftriftn, ftlatinn and indifference. 

‘T don’t have any paiticnlar feelings 
about diis,” said Yeung Hung Wing, a 
42-year-old taxi driver who was eating 
his breakfast in a small paik with agtoup 
of other drivers. “1 just feel the same as 
most people All I’m really concerned 
with is makiDg a living.” ‘ 

At midnight Monday, a test of identity 
commences as Hong Kong enters an 
unctianed foture, a foture replete with 
promises but no certainties. 

It is the end of one history and the 
beginning of another, a histt^ now em- 
bedded in die fate of rhina it^. 

In the Colony’s Soil 

3 Genoations of A Story of Survival 



hong KONG — When Michad 
Green, the boss of AmhoW «od ^ 
surveys the scorched landscape of his- 
tory, he recalls the number three. 

the Green fiimily lost everydiing, 
and three wnes th^ rebuilt fiom 

llietrs is a' story of Hong Kmig sur-. 
vivaL And as Hong Kong is set to revert 
to rhinftgft rule, me Greens are a ^ 
mipHftr that in this city populated mostly 
by iiifii n i gra nts , some <rf me oldest fa^ 
ilies are not Chiaese but Europeans wto 
eamg generations ago as nudm or 
nm smugglers or adventurers or just 
plain wanderers. . , 

Most, of course, were BritiriL _But 
they a^ were Germans, A ustria ns,. 
jErench, Scandinavians and Euxppem 
Jews. 7h^ are among Hong Koog's 
mfvgt {sominent old-money names m 
business, finance indusccy — the 
TTigafe, tfie Zimmems. the Jebseos, the 

Hftng Kong is 98 percent Chinese, but 
the Europeans many of them third-, 
even fourth-generation Hong Kongers 
— are an inextricable part of its colocful 
history. Unlike the majority of tbe 
rTiinfttft population, who mov^ here as 
refugees after Wold War n, foaoy of 
Emepeans 'prarehere throughout tbe war 
years. They experienced the turmoil of 
die Cultural Revolution in the late 1960s 
ato early ’70s. For most of diein, 1997 is 
jutt a blip (» die radar screen; few talk of 
lesv^ as China lakes contc^ 

“Not only am I bullish,” said 
chaei Green, “I have not sold my house, 

I luive not sdd my business. Pm oom- 

The first of die Green clan to land here 
was Getxge Green, a Romanian Jew 
who fled Europe to escape tnxn-of-die- 
centoty pogroms. He cocA a cattle boat to 
Ameri^ worked bis way aciou the 
continent to San Francisco and finally 
ended im on Hong Kong's Kowloon 
Peninsula, which was mostly swanqi in- 
fested with inalarial mosquitoes. 

George Green founded the Criteritti 
Hotel, moved to Shanghai befme Wodd 
War 1, and started a bar. where, ac- 
cordii^ to his grandson Michael, “be 
was his own best customer.” 

By that time, Geotge Green had a 
family, and in the 1930s, his son Maurice 

went to work for Amtold, a sprawling 
trading and msmance company mn by 
Ira^Jews with dozens ofbiandtes 
across Oiioa. . 

Wodd War n changed everything. 
T^e Japanese invaded and occnim 

Manchuria. Michael, just a toy, and his 
mother were captured as they, tried to 
esc^ m Austrato and were inmiisoiied 
ootto ontskirts of Manila. Michael 
Green still recalls bis rescue to Amer- 
ican troops who' parachuted into dieh 

prison. ^ ^ 

After the war. the Green family start- 
ed from scratch — for die second time, 
bfeurice Green was sent to- Tianjin, 
rihma to run the Amhold branch there. 
He was on a vacation in Lon d on when 
word that Mao Zedong’s trocm 
ha/l telrwn CTiong hai and China waS ^ 
most fully under Communist ctmtroL . 
“He lost everything, twice,” Michael 
Green said of hisfomer. “Everythinghe 
owned was in one suitcase.” 

Maurice Green reciinied m Hmg 
Kr^ in 1949 and began again. The 
that owned Amtold and Co. ww 
Dearly bankrupt, and he took die 
firm, debts and all The next decade was 
a struggle. Miriiael Green remembers 
Ihdng in a tiny apartment where to norer 
had a bedkoom but slept on a sofa in the 
living room. “It took me years to get 
over the embairassmcot 1 didn’t 
have a bedroom,” be said. 

Michael Green now lives in a mansion 
on Victoria Peak, a house he bought at a 
fire-sale price timing the Cultural Rev- 
olutiotL Red Guard units were rioting 
and setting off bombs in the streets ctf 
Hong Kong, and wealthy Europeans 
were cutting their losses and leaving, 
finding property prices plummeting. 
“Everyone turned around and ran Hitt 
hell,” Mr. (been said. “I was too young 
to worry. I dldn’c have morii to lose.” 
Mr. Green and his family received 
Britirii passports after die agreement to 
hand Houg Kong back to China was 
signed in 1984. But to does not plan to 
leave. Nor does to worry that thii^ 
might turn sour and that he will be me 
next Green to have to tebnild. 

“1 have a firm belief tiiat things will 
be better after the handover,” to said. 
“Ttore are thousands of dries in China 
— they don't want to mess this one 

E4MILY* iVew Bade Exp OSes Fault Lines 

Continaed from 1 

Tbe handover has exposed profound 
ideological and generational fault lines 
in this most affluent of Asian cities, with 
its overlay of Western-style politics and 
processes. For many ptople here, the 
letura to China is the tod of a long and 
humiliating colonial interlude during 
which, tiiey say, the indigenous Chinese 
population faced discrimmati^ open 
and subtle, at the bands of white Euro- 
pean interlopers. 

But for many others, tiiis historic 
turnover carries vritii it dtop misgiviDgs: 
Will civil liberties be cuHalled? Will 
Houg Kong's nascent democracy be 
crustod? the police and courts re- 
main inqMutial arbiters of justice, or will 
they be turned info tools of r^ession? 
Will die press be cenisored? mil cor- 
ruption increase? 

In the latest poll by the Hoi^ Kong 
Transition Project, 60 percent of re- 
spondents were optimistic about the re- 
union with China. But a sizable group of 
pet^le, 28 pezeent, were pessinii^c 
about the political foture oiider China, 
and 36 p^cent of respondents cfaarac- 
terizto memselves as having “no choice 
but to accept reality.” 

The Li family is in that so 

many of its members are so protninenc 
Simon Li is a d^ty chainnan of the 
offleiai group of Chma advisers called 
the Prectoaiory Committee, and two of 
his oeptows, David Li, a banker, and 
Arthur Li, a physician, are committee 
members. Another relative, Andrew Li, 
was just named the first chief justice of 
the new Bnal Appeals court Gladys Li 
chaired die tor association and her 
brother, Simon Li Jr., is foreign editor of 
tto Los Angeles Tiznes. 

But in many ways, the family em- 
bodies all tbe elements of die Hong 
Kong story — therags-to-riches success 
of die earliest Chinese immigrants wto 
ttoved under British coloouUsm; tbe 
disiiiptions caused by Wcsld War n and 
Japatose occupation; die turmoil of tto 
Cultural Revolution; the questions about 
race and identity, and now the political 
uncertainty of die transition to Oiinese 

“I think we're a typical old Hong 
Kong family,” said Araur ^ d^ty 
chancellor of the Chinese University dr 
Hong Kong. “We've been here a lorig 
time. That’s why we feel so passionate 
about Hong Ktog. This is our home. 
We’re not just here to make a fast buck 
— we’re here for keqps.” 

Li Shek-pang protobly did not sus- 
pect he was starting a dynasty when he 
fled here from Guangdong Province in 
the latter half of the 19th century at age 
13. Tbe son of a wealthy property owner, 
his uncles conspired to kilT him m pre- 
vent him from gaining his inheritance. 
He foiled their plot to drown him and 
came to Hong lung to seek protection 
under the British flag. 

Afrer unloading ships as a dock work- 
er, he eventually took over from a Scots- 
man the entire, neariy bankrupt shipping 
company, then built it into a major com- 
mercial success that controlled all the 
rice imports from French Indochina. 

Li Shek-paog’s son, Li Koon-chun, 
moved the family's interests into bank- 
ing and finance, it was a transfer that 
foreshadowed the changes in Hong 

Kong itself, as tbe city, too, later would 
shift from shipping and fnannfitrmring 
to become a global financial center. 

li Koon-toun’s son, Li Fook-shu^ 
was Hong Kong’s first Cfonese 
chartered accountant, and he became an 
official serving Her Majesty’s colonial 
govemmwL Id 1967, wton China’s 
Cultural Revolution sfrilled into Hreig 
Kong streets, he ended iqi on a Com- 
munist Party assassination list He sur- 
vived because of the piotectioa of tiie 
British coiomal govenunent 
Thirty years later, in ooe of tto fam- 
ily's oddtot twists of history, his son 
Etavid Li, wto nuts tbe Ba^ of East 
Asia, sits on the Gfama-^ipointed pro- 
risional legislamre. 

But even though the oldo- Us beu- 
efited from, and pr o sp e ie d under, tbe 
British colonial system, tiiey harbor deep 
resentments over decades of second- 
class treatment in dieir own city. 

E^vid Li. 58, said he was old enough 

tn Tt-fjgn th« disgriminatinfi fTiings^ hm 

suffered under the British. It took a trip 
to London to (pen his eyes. 

“When I first anrved in Britein, I was 
a youug boy of 12 or 13,” he srid. “Ibad 
never lealired titere were English porters 
to carry your luggage. Here, all tto Eng- 
lish were h^-op people. I never realized 
there wereEoguto garbage collators. I 
never reaZizecT there were Eoglirii po- 
lioemen — here, all the English on the 
police force were superimeodents.’ ’ 
“,We had to work very hard against 
the system,” he said, recounting his 
fomily’s battles to set up the first in- 
digenous Chinese bank, to conpete 
gainst the more power^ Britoh-run 
institutions. “I got into politics because 
of the injustice in foe baoidag system, ft 
was tilted against local banks.” 

Mr. Li falls into the cat^ory of older 
Hong K^ers who take a more benign, 
even positive view of foe cohmy’s return 
to China. According to the Htog Kong 
Transition Project, which has been mon- 
itoring public attitudes here for more 
titan a dtoade, people over 5S were mtoh 
more likely to say the letnin to China 
was a “morious” event, while those 
under 35 were more tikely to say 
they were nervous about the transition 

Will the Local Communists 
Now Come In From the Cold? 

CrS bta/Thr A)B4a>nl ne« 

A diild outside the Revoliitioaary History Museum in Bering on Sunday 
holding one of diousands of Chinese flags that have been given out to 
celebrate Hong Kong ’s return to Chinese rule at midnight Monday. 

or had no choice tot to Kcept it 
He also retains tto attitude toward 
Britain of those wto lived through the 
worst of colonialism. “We’re >my 
proud of tile reunificati<m, because I see 
many injustices,” to said, adding that to 
also had seen “many privileges granted 
to the cokMiialists.” 

"I've basically seen tto best and tiie 
worst of die British,” to said. 

But a youi^ser generation of Hong 
Kongers, bexn in economic prosperity, is 
less cooceraed with tbe abuses 
foe British. Of more immediate ccxicern 
is the foture under a Cluna stiU con- 
trolled by a Communist Party that 
severely restricts personal freedom. 

In 1 959 at the age of 1 1 , Gladys li left 
Hoqg Kong for boarding school in Eng- 
land. She grew up in a mexe privileged 
world than her famer, his success togely 
shielding her from the dlscriminuion he 

“I went to an English-speaking 
•sdiool, and most of my classmates were 

tbe childreD of expatuies. ' ' she said. “I 
was aware as a child that there were 
certain pareots who didn't want their 
children to mix with me socially.” 

She beard early on of her foiher's 
battles fix’ equal treatment in tbe colonial 
administration. But for her, discrimi- 
□atiOR was not a personal experience. 

“ft's very dinerent if you haven’t 
lived through it firsthand and lived with 
it day-to-day,” she said. 

For Mr. li, his humiliations at tbe 
hands of tbe British instilled a stronger 
sense of his own Chinese itontity. But. 
Miss, Li said, “Tto fact that my hutor 
used to crene back and tell me those things 
made me very anti-discrimination mysw 
ft didn't make me feel more Chinese.” 
She fauJis China for moving imme- 
diatdy to roll back some of Hong 
Kong’s civil liberties laws, “ft indicates 
asoiTofparatmia.” she said, “f think it's 
somewhat bizarre that China would 
want to treat its own citizens the way the 
' British oeated them.'* 

HONG KONG: Tung ^Guarantees’ Ibte Will Be Held Next May 

Continued from Page 1 

entering Hong Kong fate Monday. 

Mrs. Albnght tooke wiib previous 
caution to lecture Beijing on the im- 
portance of sending foe right signals to 
its 6.4 million future citizens. 

“I don’t think this is the best way to 
start off,” she said of foe decision to 
send People’s Liberation Army troops, 
armored cats, helicopters and warships, 
swe^tng across the border at dawn 

For many Htmg Kong residents, ar- 
mored cars will arouse memories of tto 
1989 massacre of Tiananmen Square 

Tto leader of foe Democratic Party, 
Martin Lee, also called tto deployment 

“It locAs like an invasion of Hong 
Kcxig,” he said. 

“Now, is that necessap^. really, un- 
less their intention is to intimidate the 

pe^le of Hong Kong into sUence?” 
^Afiiile China prepjued a aiumphaoi 
military en^ into its newly regained 
territc^, Britaia staged more final flour- 
ishes in foe style of enqilre's heyday. 

hi an elegant ballroom in foe hiUrop 
Government House, P^e Charles 
donned dress whites and cook up a ce- 
remonial sword to bestow knighthoods 
on three of tto colony's luminaries. 

The Chinese-tq^mved incoming gov- 
ernment, perhaps pointedly, scheduled 
similar honexs ceremonies for the day 
afrer tbe handover, with Foreign Min- 
ister Qian Qichen raiding. 

’ Streets in the Qiinese capital were 
festooned wifo bannera ptoclauniog 
“Wash Away 100 Years of National 
Shame,'' and a blimp high over the city 
declared “Celebrate the recuni of Hong 

A small group 'of pro-demoentey ac- 
tivists in Hons erected huge bar>- 
ners Sunday outside the building whm 

the hundreds of world dignitaries are to 
witness foe handover. 

Ooe banner deleted ito ‘ ‘Goddess of 
Liberty,” tto symbol of the doomed 
' 1989 Tiananmen Square dunocratic 

Mr. Tung made it clear that freedoms 
in Hong Kong would have- limits. 

He told ttoBBC that peaceful protests 
would to permitted, but that advocacy of 
independence for Taiwan and Tibet — 
regarded by Beijing as an act of sediticxi 
— would be another matter. 

Under laws prepared by foe new leg- 
islature and due to come into force at 
midnight, police ap^ovai will be re- 
quired for detnoostrations. 

Derek Fatchett, a British Foreign Of- 
fice official visiting Hong Kong, warned 
against overemph^izing tbe negative, 

“There's a real danger in the Hong 
Kong debate that we look for disaster, 
betrayal, before we look for success,' ' he 
said. (Reuters, AFP. AP) 

By Keith B. Richburg 

vauhingion Post Service 

HONG KONG — Exactly 30 years 
ago. Hong Kong was eiqiloding. Un- 
derground cells of foe Qunese Com- 
munist Party sparked violent strikes and 
street riots. Bombs were set off around 
the city. Marchers converged on the 
gates of tiie colonial rovemor's mansuxi 
waving copies of Mao Zedong's Lit^ 
Red Book, while a loudspeaker on a 
building in the Central Dis^t exhorted 
tbe masses to rise up against British 
imperial occupatfon. 

To many, it seemed the territory was 
abont to to China’s control 

Qn 'Tuesday, the Beijing government 
will indeed assume control of Hoag 
Kong — somewhat later than the Red 
GuaM units bereexpeetto 30 years ago. 
And as this teiritoty sits on ihie verge of 
becoming part of one of foe world’s few 
remaining Qxnmunist-ruled states, the 
people of Hong Kong are debating an old 
questi(xi that has taken on new currency: 
Is it finally time for Hong Kc^’s un- 
derground Communists to come in from 
tto cold? 

Tbe questi(xi is important because as 
long as the party stays clandestine, there 
are uDcertamties about tto Lines of ao- 
tbority, about the loyalties of its mem- 
bers, about special privileges its mem- 
bers may receive and about the ultimate 
center of power here after t^ British 
colcxiy reverts to Chinese control. 

For example, foe man Chiiia has 
chosen to be Hong Kong's chief ex- 
ecutive, Tung Cbee-bwa, is responsible 
for administering Hong Kong as of 
Tuesday. But on the Communist-ruled 
mainland, foe senior government ofiicial 
in a city or province £ways r anks second 
to tfaeparty secretary, raising the ques- 
tion of whose voice in Hong Kong will 
carry more weight in Beijing. 

Tlie Chinese Communist Party has 
operated clandestinely in Hong Kong 
smee the 1920s, but has never officially 
registered. Its local arm is foe Hong 
Kong and Macau W(xk 
which has the rank of a minis try jo ‘ 
Beijing, and it is acoap^ wisdom here 
tiiat foe Hong Kong due^r of tto Xin- 
hua press agency is also the local party 
secretary, ctxxdinatiDg the party’s vari- 
ous bureaucratic groupings. 

Xu Jia^, a ramer forector of the 
press service, said in hiis memoirs foat in 
1983 there were 6,000 Qxzimunist 
cadres in Hong Kong. Others in the 
intelligence and academic community 
have placed foe aumber now at as man y 
as 20,000, and diose are said to include at 
least a few hi|h-ranking civil servants in 
the local admmistratitm. 

“Pec^Ie talk about the importance of 
facing up to reality,” Governor Chris 
Patten saud tiiis mo^. “I guess part of 
that reality of life in Hong Kong ^ tbe 
best pan of50 years has been tii^tbero are 

Communists in Hong Kong (Operating in 
the way in which Communists custom- 
arily operate. uDdeigmmd and in cells 
and through united front operations.” 

The violence in the summer of 1967 
was foe highest-profile example of foe 
party’s influence here. But more re- ' 

cently, the party has been involved in 
lower-key, more traditional organizing 
activities among workers and students. 

After tto 19W agreement between 
Prime Minister Ma^axet Thatcher of 
Britain and the. Chinese leader. Deng 
Xiaoping, to nira Hong Kong back to 
Chu^ rule, tto local Communist Party 
embarked on a campaign to begin win^ 
ning local hearts aim minds. It opened 
tiirre offices in 1985 to coordinate activ- 
ities for Hong Kong islaiid, tbe I^wtoon 
Peninsula tod tbe New Territories. It also 
quietly backed candidates in Ifong 

elections and may have fielded its own 
candidates ihitHito ^ lag^lty registered 
pro-China parties that ran for seats on 
Hcxig Kong’s Legislative Coundl 

Stxne say that now is tto time for the 
Communist Party to shed its under- 
ground status and register as a Hong 
Kong political party. 


Ihose Not Invited 
Party in Beijing 

BEDING — As many as 200,000 
people poured into cetoal Tianan- 
men Square on Sunday night to 
watch a clock tick awty the final 
hours until die return of HcxigKong 
after a century and a half o^ritish 

“We aren't invited to foe official 
celebrations so this is our chance to 
enjoy foe return of Hex^ Kong,” a 

About 100,000 people are expec- 
ted to watch foe huge digital clock 
marie the end of cdohial rule Mon- 
day. But all of tiiem will be on foe 
official guest ^ and for those left 
out, Su^y night was the riinft to 
celebrate. (Reuters) 

Newspaper Pulls 
‘Sensitive’ Article 

HONG KONG — Hong Kong 
got a glimpse of how free expres- 
sion mitot be eroded under Chwiw. 
rule when a newqi^ier ed it or 
yanked an opinion-page article by a 
legislator btoause it was AmtovI 
too sensitive. 

The article was by Emily T an a 
crusader for denrocracy who has 
proved to be one of foe colony’s' top 
vote-getters. In U,-she argued foat. 
Hong Kong fod not need laws on 
subversion and sedition after the 
tecri^ reverted to Chinese rule. 

Liu Kin-ming, opinion pn gj*. ed- • 
tor of the Chimae> langHagifH»"g • 
Kong Ecooranic Times, had agri ™' 
to run Miss Lau’s article in. the 
newspaper Saturday,- 

But late Friday night, Mr. 'Liu 
said, he was told by bis supervisors 
that the Lau article had to to 
pulled, fWP) 

jJl tj* 




HONG KONG HANDOVER / Hard Questions Amid the Hoopla 


ly’j ‘•’Can City’s Dynamism Survive? 

jj ^ _ A Complex Mix Made This Capitalist Exemplar 

a. TV. 

By David E. Sanger 

.\(n Ytui Tiiw\ Si'f.ii I 

jjjg P*J»L There Joes noi upbear the sliahiesi 
Of W pw/w/n/j/y that, under cmy dnutn- 
stances, Hons will ever bixonic a 
“ place of trade. 

ison. *" ^ Aifc 

hma. lo pj- j|: 

cso'ji tiaTM i? LoS^ 


* — Robert Montgomery Nfartin, the 
British colonial (reusurer, reporting 
home during a visit to Hons Kong in 
IS-M. " 

di2:n:il>r,. rertienj: 

Mig rooo! •■!■ t 

Mig roon; 
er the ?- 

“ So perhaj5S not every Brir who sailed 
fanyy ^ into the glorious cavem of V'ieioria Har- 
Opium War immediately 
j* to grasped the magnificence of what his 
^brao(j^^ countr>- bad just stolen. Eventually. 

the defenders of the 19th cen- 
^•fcng’j lory's biggest drag cartel figured the 

China place out 

tuiiist And even today, at a lime when busi- 

ice; • ness lives by modem. Hong Ki>ns seri es 

Cvervi^ as living proof that in politics, trade and 

e." the creation of great cities, geography 

ned Id u still matters. 

in agam Though many have tried — from 
Id aajjT ^ Singapore to Vancouver to Taipei — no 
lofj^ ^ne has ever managed to replicate the 
formula that transformed Hong Kong 
•n frf*niascan:eIypopulaiedislandintoone 

‘hereh^' world's capitals of commerce, 

n a Mjf whateiwtly i$ the magic of Hong 

'■•‘■•Iv mt vcaix Kong? lis success, of course, is all about 

ihai I proximity — to the most complex, the 

most infuriaring and now the fasiest- 

niption and endemic cronyism of mod- 
em-day China. 

But it may take decades to answer the 
question looming over the ceremonies 
— whether as Hong Kong and China 
converge, the country will come to look 
more like the island or ihe island more 
like the country. 

in the sunny study of his official man- 
sion recently, Christopher Patten, the 
28th and last governor of Hong Kong, 
who w ill sail into the sunset Monday as 
President Jiang Zemin and his army lake 
control, fram^ the issue this way: “In 
10 years' time, will Hong Kong be more 
than just the richest city in China?" 

"The way China treats Hong Kong," 
he added, “goes to the heait oT* what 
China w ill he like — whether it can 
move from boomiown capitalism to a 
well-regulated, sophisticated economy 
that is able to accommodate politick 

China and the Hong Kong tycoons 
who have spent millions preparing the 
ground for its assumption of control say 
such comments are arrogant, h is 
Chinese energy more than British 
foresight that made Hong Kong, they 
argue, and that explains why Hong 
Kong's per-capiia income, an astound- 
ing S27..S00 last year, long ago out- 
stripped Britain's. 

Patten's departure Monday night will be 
his greatest contribution to Hong Kong's 

The markers don't exactly disagree: 
They hit heights last week so dizzying 
that the head of the colony's centr^ 
hank, in his last act as a sen^ant of the 
CrowTi. offered a warning to investors 
against “undue exuberance." 

The truth, though, is that no one is 
quite sure what will happen to Hong 
Kong because no one is quite sure which 
ingrraiems made ii Asians greatest trad- 
ing center and one of the world's most 
captivating cities. Maybe it's the 
majesty of the sening — the gbs.s set 
against rock, the winding streets, the 
cacophonous markets tmprotobly 
etch^ into a moundiin rising irom tlw 
South China Sea. 

Or peiiiaps the sty le of the place — the 
chic restaurants, the escalators that run at 
double speed so no one is late to a deal. 

Or maybe it is the sight of starched 
investment bankers and dock wortters 
simultaneously yammering into cell 

rf ¥ 

e , i.** .--rtaBsat 


. .‘V Stj 

A China .Airlines jetliner belonging to Taiwan making its landing approach on Sunday to Kai Tak airport. 

f ihones in English and Cantonese on the 
umberins Star Fe^r^'. where a commute 

lumbering Star Ferry, where a commute 
across the harbor costs only 13 cents. 

But the formula that has made Hong 
Kong work — fust as a British outpiKt 
and then as a Chinese ciiy W'ith Amer- 
ican and Japanese capital and British 

Having battled Mr. Patten's five-year eccentricities — is far more r^que. 

campaign to create democratic institu- 
tions. one of the city's pro-Beijing mil- 
lionaires suggested' recently that Mr. 

The obvious factor is location: Hong 
Kong is a quick boat and train ride from 
the biggest labor force and the biggest 

nuirket on earth, yet it has not had to pay 
the social costs of sustaining either. But 
there is more. 

British rate of law created an ad- 
vanced framework for capitalism in 
Hong Kong before anyone thought that 
capiulism comes in dltferem flavors — 
Asian. Western, global. 

British law meant rhe markets were 
regulated well enough so that investors 
were willing to take the risk of putting 
their mone>’ into companies. It meant 
ooni|:unies were willing to sign con- 
liactk. knowins that thev could seek 

enforcement through an independent ju- 
diciary where precedent mattered more 
than who your friends were. 

Those were only the sum. Hong 
Kong's taxes are among the lowest in 
the developed world. Until Mr. Patten 
introduced his democratic reforms, 
which China now threatens to undo, the 
lerriiory was ruled with an iron hand that 
limited'domestic politics, eliminarii^ a 
distraction from making money. (This is 
an inconvenient fact fo^ those who argue 
that democracy is integral to Hong 
Kong's economic success.* 

It's no wonder that .Milton Friedman, 
the famed economist, once ^aid that ’ 'If 
you want to see capitalism ut work, go to 
Hong Kong," 

And w hat of Hong Kong ? Perhaps ii.s 
tycoons are right; AU ihis handw ringing 
is the preoccupation of a Western press 
fixated on individual liberties instead of 
common prosperiry. Or perhaps Hong 
Kong's fa's! newspaper. Friend of 
(^ina. was closer to the truth in 1842 
when it said Hong Kong w as destined to 
■■revolutionize, or subvert, the cxisrina 
state of things in Chinn." 

he huugli,, 

growing emereing market on earth. The 
source of its dynamism, though, is far 

J-uTiih rKjp; 

to Chilli ij 
•• noipijjf 

hr Willies 

>■••••: lh!(l 2 i»; 

• -:'.iesiaCk 
ihu c 

more conmlex. 

Hong Kong thrived precisely because 
it was on the ^e of. but never mired in. 
(he politics and turmoil of China. 77131 
separateness allowed it to create one of 
the world’s most wired, global cities — a 
narrow', ridiculously crowded place 
where Western law. Asian culture. Jap- 
anese design. American financing and 
•jj^reed from seven continents all mixed 
together to make money. 

So China celebrates Hong Kong's re- 
turn not only because it ends a century 
and a half of humiliation, but because the 
barren island it lost to gunship diplo- 
macy returns to Chinese comrol as the 
city of the future. The question is wheth- 
er the ma^c can survive the transition. 

When Britain's soverei^t)' ends 
amid nreworics and network-^ special 
reports at midnight on June 30 — 1600 
GMT Mtmday — so does the detach- 
ment that Iw^ insulated Hong Kong 
from the politic comrol, rampant cor- 

To Asians, Softer ^Karaoke Diplomacy^ Plays Better in Beijing 

By Velisarios Katioulas 

/m/i rikituvijf Htrjld Trthunt' 

HONG KONG — Call it karaoke 
diplomacy. The lights are dimmed. A 
bottle of Scotch is passed around the 
table. The karaoke machine whirls into 
action and Chinese and other Asian ^p- 
lomat^ settle in for an evening of <£- 
plomacy away from the glare of the 
world's news media. 

In advance of Hong Kong's return to 
Chinese control on Tuesday, the I'nited 
States and Europe have very publicly 
urged Beijing tu leave the thriving me- 
tropolis as it is. economically, polit- 
ically and socially. 

Asian diplomats say they have de- 
livered the same message. But In con- 
trast to (heir Western counterparts, they 
have done so behind closed doors at 
foreign ministries, plush hotels and 
karaoke bars across the region. 

Disciples of the two approaches crit- 
icize one another for being too soft cn 
China or for failing to u^erstand the 
way it thinks. But many analysis say. and 
Asian diplomats insist, that Western pub- 
lic diplomacy is undermining eveiyone's 
interests in China and Hong Ktmg while 
karaoke diplomacy ts producing results. 

* 'TTie general approach of the West to 
China over the last several years, this 
confi'ontadonal approach, is very coun- 
terproductive." said Denis Simon, di- 
rector of the China Strategy Group at 
Andersen Consulting in San Francisco. 
"The approach through quiet diplomat- 
ic back channeb really does enable the 
issues to be discussed in much more 
substance." He called it “a more pro- 
ductive approach." 

Asian diplomats say the W^r's ag- 
gressive diplomacy toward China re- 
flects a fundamental misunderstanding 
of Ihe way Chinese and other Asum 

leaders think. “.Americans don't know 
much about China." an .Asian diplomat 
said. “The ethos of Asians is different — 
there is a culture of formality" that 
avoids open criticism because repuia- 
tireis are easily damaged and more highly 
prized in .Asia than in the West. 

In the view of some analysis, politi- 
cians in the West tend increasingly to 
play to the concerns of their constitu- 
ents. “Foreign policies in any state are 
driven by domestic issues to a lesser or 
greater degree, and in the U.S. to a 
greater degree." a second .Asian dip- 
lomat said. 

For their p^, W'estem diplomats 
privately criticize their .Asian counter- 
parts for what they see as a lack of 
commitment to push for China to honor 
its agreement with Britain to leave Hong 
Kong largely independent for 50 years. 

But Asian diplomats say their leaders 
prefer to solve disputes or raise sensitive 

issues behind closed doors. 

.Nations ranging from Japan. Korea 
and the Philii^ines to Indonesia and 
Malaysia have quietly encouraged 
China to preserve Hong Kong largely 
unchanged for the next'half-cenruiy to 
protect their commercial interests there, 
diplomats said. 

“We are afraid about how China will 

handle Hong Kong." a third Asian dip- 
lomat said. “If they handle it brutally, 
that will be a bad indication for the rest 
of Asia, revealing China's true nature. 
Hong Kong b a test case." 

The first diplomat said: “We share 
the same sentiment that Hong Kong 
should remain the old Hong Kong. But 
we don't have to shout out at China. It 
doesn't make sense." 

China's proximity and the hbtory of 
antagonism between China and its 
neighbors are critical points to Asian 

“It's totally counterproductive for 
our national «:ecurity.'' the first dip- 
lomat said. “It makes China more an- 
tagonistic and their shadow grows." 

Moreover. Asian leaders'fuce little 
domestic pressure to challenge China 
publicly: in many cases, ruling parties 
are entrenched and less accountable to 
voters. Even politicians from nations 
that have elections more akin to those of 
the United States and Western Europe 
face linie pressure from voters to chal- 
lenge China because of the impcrnance 
placed on saving face in Asia. 

Many Asian nations have little in- 
centive to join the West in criticizing 
China for what Washington and its Euro- 
pean allies call unfair trade practices 
because some of these nations have sim- 
ilar protective lariffs. And in most .Asian 
nations human rights remains a concept 
that Asian leaders view as largely West- 
ern in origin and of limited rdevance. 

. ■' -■ iCk^iveda 

r I: ornsizs 

• ■'.'’Xl"; .ml jUsifllE 
' - : .T;VTil‘r,: M»S5 

iiJjr. Ite 
:. Kor.i Mff 

• ...-J LwbJ 


N.-.1 r.'monis IriJ 

I ••• 

■ - rcJiS®! 

7.^ i'e: 

■ lb HI*- 

, i Hjs 




Albanian Official Slain 
As Nation Tries to Vote 

TIRANA — Afl Alhaniitn man wa*. 
shot dead Sunday in a polling bi30lh in 
the south of the country during ^’oting 
for legislative eleciii>ns. officials from 
the Democratic Part}' of President Soli 
Berisha said. 

Albanians were voting after four 
months of unrest follouing an armed 
rebellion against Mr. Berisha and his 
Democratic government. 

More fhan 1.60ft people hase been 
killed in the violence anil disorder that 
has suopi Europe's poorest country. 

Democratic rany ofliciais viid the 
slain man was the pie*<idem of the Ucal 
eie^mul ewnmi-sston tn u distrkr of 
Fier. 75 kilometers <5U milesi south of 
the capital. 

In a comniuniitu«.\ the p:irty <aid that 
the oflicial. Burhan Misirt. was shui b> 
a supporter of iJie nuitu oppo.sjnon So- 
cialist Pdpy and said the ulling '‘hod 
political motives.” 

Local police officials in Fier eon- 

New Turkish Leader 
Garners a Majority 

ANK.AR.A — Tw o more resignations 
from the Islanuc alliance appeared Suii> 
day to Give Turkey's new. pro-secular 
go'vemnieni the vot^s ii tleed^ tor par- 
Jiamenrary approval. 

The defections Jepnvei! ihc Islamic 
bloc, led by fiumer Prime Minister Nec- 
mertin Erbikan. of the porliamenijn 
majority it enjoyed only a week ago. 

Many of the'defeciors alreiuiy'have 
joined the parties that are coming to- 
gether to form a new goi emnient under 
(heeonsenative leader ami pnme-mui- 
ister designate. Mesut Vilnuz. 

Parliament will have to approve the 
new government with a \ote of con- 

Mr. Erbakan's co.'ilition collap^d 
under pressure tram the miliiaiy . w hich 
was angered by his unempis to give 
Islam a su>rarerrole in Turkey. 

The defections started a day after Mr. 
Erbakan and his coalition partner, 
Tansu Ciller, asked legislators to sign a 
pledge to vote against Ute new gov- 
eminent. .Although boih leaders have 
lost support, the latest defections came 
from Mrs. Ciller's True Path Pony. < 
Mr. >‘ilmaz is expected to subrnit his i 
cabinet list to President Suleyman De- ' 
mirel on Monday or Tuesday’ Tlie con- < 
fidence vole would come lU davs later. ! 

imposition Socialist's, said tliere was no 
cnance their parties w'ouid cooperate 
with one another in a government “A 

■*v. ^ 


lacieil b\ telephone coafinned that an 
incidem had taken place but would give 
no further details. 

Despite voting in the capital de- 
scribeo by one uitcmaliimiil ot^rvef as 
'good ail' any Western Eurowm coun- 
try-," .Albanian election ofticials said 
voting in other parts of the mountainous 
republic had not gone quite so well. 

Polls closed at 6 P.M. after the of- 
ficial news agency reponed earlier that 
on eslimated 50 percenl of the voters 
had turned out nationwide. 

The head of the Central Election 
Commission. Krisiuq Kume. issued an 
appeal for Albanians to vote in peace. 
He said the shooting was “an event 
which must be denounced and amounts 
to an attack not only on him and his 
family hut on ail of us." 

Bvith sides have complained of ir- 
regularities. mainly of voters who found 
they had been omitted from registration 

There have also been instances of 
armed gangs stealing ballot papers or 
tamFX'ting with ballot boxes. 

There were reports of gunmen pres- 
suring voters in at least three towns to 
V ole for memivrs ol the Socialist Party, 
the ccntnil election comniission said. 

Tlie Socialists reported pressure on 
their supporters from members of the 
dominant Democratic Party, and there 
were repi>rts of other intimidation 
around the country. 

••\Ve are very grateful that you are 
here, bui we u-jf) have nightmares until 
the results are known." one voter. Rufie 
Dishn. told Catherine Laluniiere. head 
of the .^Oi.t election observers dispatched 
bv the Organization for Security and 
C^oopHrraiion in Europe. 

The elections were planned as the 
first step in restoring oiwr in .Albania, 
where msideni B^isha's Democrats 
:md the Socialist-led opposition are vy- 
ing w ith each other — and with onned 
gangs — for control of the country. 

ill addition to choosing a new Par- 
liament. .Albanians are voting in a ref- 
erendum on whether to remain a re- 
public or to reintroduce the monarchy. 

Violent protests oi*er tailed invest- 
ment schemes degenerated into armed 
revolt across the country in the spring, 
w hen hundreds of thousands of guns 
w ere looted from government armories. 

.As they cast their biJlots. both Mr. 
Berisha and Fatos Nano, leader of the 

An Albanian in the town of VIore, a center of violence, reached up to cast his ballot in i^islative elections. 


Germans Assail Refugee Family French Raid Immigrant Sit-In 

cvKilltiou government is impossible." 
Mr. Berisha said. tAFP. Remos. APi 

! LUBECK, Germany — Rightist extremists attacked a 
I Protestant parish in the northern German ciO' of Lubeck, 
torching the oBlce and painting swastikas on the walls, the 
police said Sunday. 

They’ had earli^ reported a fire at a children’s play- 

The attack caused only limited damage but investigators 
discovered three swastikas and an inscription, “Hang, 
we'll get you," painted on the walls of the Sl Auguste 
parish office. r 

"‘Harig" is Che name of the Lubeck pastor, who is 
sheltering an Algerian family of asylum-seekers in his 

His name has already been daubed alongside swastikas 
on other religious buildtQgs. Including the St. Vicelin’s 
Catholic church in Lubeck, which was the target of an arson 
attack May (AFPJ 

Rome Expects Welfare Accord 

ROME — Prime Nfinister Romani Prodi was quoted 
Sunday as saying he was confident that the hard-left 
Communist Refoundadon party would eventually suppmt 
welfare reform. 

Mr. Piodi's center-left coalition govemnteat almost fell 
In April when Communist Refoundation, which gives his 
coalition a majority in the lower house of Pariiament, 
refused to support die deployment of a security force to 

Refbundation has threatened to rebel again over gov- 
ernment plans to ci^ social spending and ni^e up ludy's 
pension system in prqKuration for the launching of the 
single European currency in 1 999. (Reuters} 

PARIS — Five people, including a policeman, were 
injured when tiie police forcibly evicted ISO illegal im- 
migrants occupying a town hall in Paris, officials said. 

Violence broke out Saturday when the police entered the 
town haU of the 1 8di Airondissement to remove immigrants 
without official papers who were carrying oat a protest, the 
audiorities said. According to the police, some of the 
protesters demanding working papers from the French 
government became violent when the evacuation begrm. . 

A policeman was fiospitali^ after being fait on the head 
in the tussle that follow^, officials said. 

Two people were injur^ vi^en they broke windows in 
the town hall with their bare bands. It was unclear how long 
die immigrants occupied the building. (AP) 

The EU This Week: 

Intenwricnul Heruki Trihiofe 

Significant events in the European Union this week: 

• The Enrt^ean Commissiou meets with the Luxem- 
bourg govenuneor in Luxembourg on Thursday to discuss 
plans to Luxembourg's presidency of the Union, which 
begins diis wedt and runs through the end of the year. 

• The Commission briefs representatives of the 15 EU 
governments of its stance on the Boeing-McDoiuiell 
Douglas m^er in Brussels oil Friday. 

• bU social afrairs miniscers hold ah informal meeting in 
Luxembourg on Friday and Saturday to discuss ways of 
carrying out a recent agreement to step up Coordination of 
emplO}rmeat policies and start prq>araiipns for an EU 
employment summit meeting in November. 

By Tim Weiner 

fitfu' Yurk Tmes Senicf 

WASHINGTON- — National secu- 
ri^ officials expelled a Bosnian Muslim 
general from an elite U.S. Anny tnuain&- 
course after receiving uncoofui^ ac7- 
cusaiions that he was a wu cziminaL 
according to Clinton administration of- 

The man in question, Brigadier C^- 
eral Seimo Cikc^c, came to Washing- 
ton in December 1994 as the rotary 
attach^ at the Embassy of Bosnia-Her- 

The State Department sent him this 
month to the Command and General 
Staff College at Fort Leavenworth. 
Kansas, under a program to train and 
educate foieign nuiitary officers. 

The accusations against General 
Cikotic came from Croatia, according to 
a senior official. They' include uncon- 
fimned allegations that he commanded 
soldiers who killed and tortured pei^Ie 
in and around Bugojno, a town of about 
40.000 people in central Bosnia, in July 
J 993, when Muslim and Croatian forced ' 
were fighting to control of the town. 

General Cikotic, 34, served in the 
Yu^slav Army as a field commander 
before the breutup of Yugoslavia. He 
was chief of staff of the Bosnia ?d Corps 
during the war that followed. 

He also served as a senior member of 
the Muslim delegation tbar negotiated 
peace arrangements with die Groats in 

Ibe general declined during a brief 
telephone interview to respond to the 
accusaiioos against him. "This should 
be handled govemment .to govern- 
ment." be said. 

The Bosnian Embassy’s acting mil- 
itary attach^. Major Sur^ Cengic, said 
his govemment was preparing a re.- 
sponse. ' 

The officials who decided last week 
to remove General Cikotic from the 
rolls at the Command and General Staff 
College did not Imow whether the 
cti^ges against him were true, a Wash- 
ington official said. 

Officials at the United Nations war 
crimes tribunal at the Hague said they 
could not discuss wh^er Gener^ 
Cikotic was under investigation. 

The tribunal has indicted 75 suspec- 
ted war criminals — 54 Serbs, ISCroats 
and 3 Muslims. 

UN Aids War Crimes Tribimal in Croatia Arrest 



tt CBBWQBBv’;. 

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ZAGREB. Croatia — United Nations 
peacekeepers have for the first time helped the 
intemational War Crimes Tribunal in former 
Yugoslavia capture a war crimes suspect, a 
UN official has said. 

Tribunal officials arrested Slavko Dokman- 
ovic on Friday in the Eastern Slavonia region 
of Croatia. The predominantly Serbian region, 
monitored by a provisional UN administra- 
titm. is due lo revert to Croatian rule soon. 

'"We gave support to the officials on the 
ground within instructions from a UN res- 
olution," a UN official in the enclave said 

"It's the first time that has happened." the 
official said. 

"It was the tribunaL rather than UN peace- 

keepers. that carried out the arrest." said the 
officiaL who spoke on concUtion of anonym- 
ity. The officim refused to elaborate on the 
kind of support the peacekeeper jprovided. 

Mr. Ookmanovic was president of the 
Croatian townof VukovarinNovember 1991. 
when Yugoslav Army and Serbian paramil- 
itaries are alleged to have abducted from its 

ho5|H'tal and killed about 260 men. 

Ine Yugoslav' gavemment strongly pro- 
lesred Mr. Dokmanovic's arresi to the UN 
administrator, Jacques Klein describing it a^ 
an "most serious incident" that could "hav>/ 
serious consequences for the further course of 
the peace process." 

The UN administration’s mandate expires 
July 15, when Croatia wants to take full 
control of the enclave. 

Q 8c. A! Janes Drnovsek 

Slovenia Seeks a Guarantee 

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Slovenia, the most economically advanced 
country resulting fiym the breakup of the 
former Yugoslrrx'ia, is seeking membership in 
both the European Union and the North At~ 
lantic Treaty Organization. Prime Minister 
Janes Drnovsek met Mith EU leaders in Anh 
sterdam, and aftemvini spoke with Tom 
Buerkie of the International Herald Tribune. 

Q. NATO and the European Union are pne- 
raring to select .'potential new members from 
i Central and Easi^ Europe. Wb^ is at stake, 
and why should Slovenia be considered? 

A. It is diffiedt now after the United States 
announced ^tspositioa for a limited NATO 
enlargement, ^th only three countries. Slov- 
enia is cotisiddred everywhere as the fourth 
candidate. . We hem a last-minute compro- 
mise wLU.fbe.' reached just beforo or at the 

jMadildstinmit We don't see any threat, but ^ spow F™w Pie« 

we see NATO as some kind of long-term Prime Minister Janez Drnovsek says 

I guar^itee to stability in Europe. 

1 QiU tile U.S. view prevails, what do you 
■ seek from NATO? 

A.*^We would at least expect certain guar- 
rsmees or commitments that Slovenia will be 
'the itext monber, in a relatively short time 
1 span. That would be a minimum, considering 
mat we have the support of a majority of 
NATO members. 

' Q. Are you concerned that an enlargement 
process that was supposed to unite Europe 
risks.creating new divisions? 

A. It’s creating a certain ffiistraiion that we 
,are not being included. Th^e countries not 
;being include will have political difficulty in 
expliuaing this to (heir pubUc. Everyb^y 
knows that Slovenia is in a better economic 
position than Poland or Hungary, for ex- 
, ample. We have a good level of ctemocracy. 
So it's difficult to explain. The people are 
inclined to blame the government. 

I Q. Some EU leaders have criticized the 
i neaQi of Amsterdam, saying it could delay EU 
enlargement. Do.ybu share that concern'? 

A. We discussM that issue. There were not 
very dear answers to some vezy clear ques- 
tions. Should negotiations start with aQ 12 
caodidatK at the same or will negi>- 
tiations st^ wttii only lluee'toiive? We weire 
given only a gen^ statement that enlaige- 

the future of his goverument is at stake. 

ment will not be slowed down. 

Q. Are you convinced of that? 

A. It's very difficult to say. It’s very dif-.' 
ficult to get a consensus [within the £U]. 
especially on institutional r^orms. 

Q. Since the Union has left those reforms 
undecided, should candidate countries have u 
say on issues like voting rights? 

A. I think so, althou^ they have put us in a 
difficult situation. We have to compete with 
ourselves. We have tt^ut our energy into this, 
to show who is qualmed for membership. 


Q. Should negotiations start with a small 
group of countries or a large group? 

A. Negotiations should start witii all can- 
didates. ^ 1 2. If there vrould be a selection of 
three to five countries, you can imagine how 
difficult it would be for those who are left out. 
There will be frustration, and this could afreet 
the political pn^ess and the economic process 
in those countries. 

Q. How serious would'it be if Slovenia was 
left out of the fust round of both NATO and 
EU eoioigement? 

A. The government would not survive. We 
have put a lot of energy Into this. And I think 
that ourselves, we would take our re- 
sponsibility and resign. 





■7 I I. /'k'’ 

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Japanese Police Arrest 14- Year-Old in Beheading 

By Nicholas D. Kristof 

iVin- \WL Vim<\ Str th « 

TOKYO — The police announced 
ot'er ibe weekend ihai they had anesied 
a l4-year-old boy who ihey said had 
confes<^d to the beheading last month 
of an ]l-}'ear<o!d boy. ihe grisliest 
murder in rnemory in Japan. 

The arrest late Saiunuy night of the 
ninth grader, a neighbor and acquaint- 
ance of tte victim, stunned the Japanese 
and is certain to add to worries that 
many young people have lost their mor- 
al brings. 

The police did not identify the sus- 
pect, who lives in the western city of 

Kobe, or say much about him or his 

The kiUing of the 1 1 -year-old. Jun 
Hase. has transfixed Japan in pan be- 
cause of its savagery: his head was left 
resting on the front gate of a junior high 

school, with a defiant message stulfed in 
the mouth. Just as hotrifying. the killer 
went out of his way to taunt police and 
threaten more slayings. 

'T can relieve myself of hatred and 
feel at peace only when I'm kiUing 
someone,'* the muwrer said in a letter 
sent to a local newspaper. “1 can ease 
my own pain only seeing others in 

The police said that they were con- 
fident that the killer had written the 
letter because it included details not 
disclosed publicly. The writer also 
warned that ”if anything frusu^tes me 
again. I’ll destroy three vegetables a 
week” — apparently a reference to chil- 
dren. The letter included a threat to 
begin killing adults. 

After a schoolgirl was beaten to death 
nearby earlier this .year, and another 
attacked and badly iajur^ the author- 
ities conducted their investigation on 

the theoiy that a serial killer might be on 
the loose. 

But all (he speculation focused on 
adult men. and tne arrest of a youth — 
television networks imetrupied regular 
programming for a police news con- 
ference — shocked announcers and 
audiences alike. 

"I'm relieved thai a suspect has-been 
arrested, hut mostly I’m surprised that 
he i.s a junior high student/' Aldra 
Yokoyoma. the chief city officialfonbe 
district in Kobe where the kiUit^ 
happened, told NHK Television. 

llie police said that the>‘ had 
summoned the H-y'ear-bJd boy fo the 
police station early Saturday morning 
for questioning, and that he had even- 
tually confessed to stranglii^ Jun and 
cutting off his head. They said that in a 
search of tlie hoy's home and its sur- 
roundings. they had found the knife be 
described using. 

NHK quoted police oBlcials as say- 
ing that the boy had also used a handsaw 
in the beheading. 

The authorities would not comment 
on whether they suspected the 14-year- 
old in the attacks on the two girls. 

In Japan, people 19 and under are 
treated as juveniles before the law, and 
special protections are given to those 16 
and under. .As a result, there is no pos- 
siiNlity' of the suspect’s facing the d^th 
penalK', which Japan sometimes applies 
in murder cases for adults. 

A spokesman for the police in Hyogo 
Pmfeciure. which includes Kobe, said it 
would be possible far the boy to be kept in 
a detention center until the age of 20 and 
then released. But he said it might also be 
possible 10 detain him into adidthood. 

'I^e killing was only the latest in a 
scries of cases — including the nerve 
gas attack on the Tok>*o subway system 
two years ago — that have deeply 

The n-year-oJd victim,' Jon Hase, 
who was beheaded May 27 in Kobe. 

shaken Japan's sense of itself as a safe 
society. By intemationaJ standards, the 
country has veiy low crime rates 
and a remarkably safe feel to its cities, 
bur many Japa^se worry that order- 
liness and security are deteriorating. 

jsai I!; ; I'uaiiiiAiTf 

Hun Sen’s Guards 

Tied to 20 Kil lings 

By R. Jeffrey Smith 

U poii Si'fyu'f 

PHNOM PENH — In a classified report that could pose 
problems for l\S. policNmakers, the tentatively found 
bodyguards employed hy Hun Sen. one of Cambodia ru^o 
prime ministers, responsible for a deadly grenade attack 
here, according to U.S. government sources. 

At least 20 people were killed and 1 50 wounded in the 
attack March 30 during an opposition protest The pre- 
liminary. report, described by four U.S. government 
sources, was based on a two-month investigarion con- 
ducted under a U.S. law giving the FBI jurisdiction 
whenever an American is wounded in a terrorist attack. 

The agents were forced to leave last month before they 
could complete their inquiry. The U.S. ambassador, Keo- 
netb Quinn, said they l^n taigeied for assassination 
and could not be protected adequately, the sources said. 

Mr. Hun Sen. 46. is the most powerful man in Cam- 
bodia. and diplomats in Phrram Penn say that even if the 
charges were proven, he would not leave office without a 
figbL The chance of obtaining a fair trial for those 
involved in the bombing is considered slim, because his 
party controls the Interior Ministry and the judiciary. 

‘*lf Hun Sen ordered that act and the murder of more 
than 15 people, we want to know,” a senior U.S. State 
Department official said. “As a practical matter of how 
youproceed if it is proven. I don't know.” 

The protest organizer, Sam Rainsy, 4S. leader of the 
Khmer National Party, has called for an international 
commission to investigare. But Interior' bister Sar 
Khen^ asserted that was not needed. He said the local 
iflvesQgation was “going smoothly" and pledged to pur- 
sue the allegadoos by arranging for his investigators to 
interview officers of Mr. Hun &n’s bodyguard. Mr. Sar 
Kheng, a bi^-ranking official in Mr. Hun an's party, said 
on be^of the'party. “We did not commii this crime.” 

Aesop^s Fables: Life or Death in Cambodia 

By Seth Mydans 

/Vi-ir >'iir<t n</ii-\ Srny , , 

PHNOM PENH — Kassie Neou owes his 
life to Aesop and his fables, w hich he told over 
and over again, night after night . to tite teen-age 
boys who guarded him 2fl years ago in a Khmer 
Rouge torture chamber. 

■•you're the tortoise/" "You'rv the hare/** 
the boys teased each other, delighted with the 
story, Mr. Neou recalled. 

Every night, sometimes e.xhaustcd and 
bloody after a day of beatings and interrog- 
ation. he said, he told the stories to one shift of 
guai^ after anoihcr. 

’ i was lucky because 1 knew those stories by 
heart.” said Mr. Neou, who had been (he head 
of the English-language service for Cambodian 
radio and television and who is now director of 
the Cambodian In.sriiute for Human Rights. 

“1 told the stories all night long, with my 
ankles in leg irons like everybody else.” he 
said. “And ^ause of that. I beanie someone 
who was needed by the guards.” 

Then came the night when (he prisoners were 
roped rogedier and marched from the building 
to be killed. Above the loud squeaking of their 
leg irons. I^. Neou recalled, he heard the voice 
of the 13-yeor-old guard who was in charge: ”1 
need him. Quick! Pull him out.” 

One of tbeguards hid him, holding a finger to 
his mouth for silence. Another prisoner, riewly 
arrived, was roped to the others and killed in his 

Like Mr. Neou. virtually everyewne of a cer- 
tain age in Cambodia today is a survivor of the 
Khmer Rouge years — either a victim or a 
killer. And witK daily reports here of the pos- 
sible capture of Pol Pot, the Khmer Rouge 
leader, long-suppressed memories of the past 
are being stirred. 

From 1975 to 1979. driven by a radical 
Maoist phil(»ophy that quickly slid into mad- 
ness. the Khmer Rouge government turned on 
its pec^ie. rising society apart and killing 
perha}» more than a million Cambodians. 

Many weree.xecuted at torture chambers like 
Ttioi Sieng prison in Phnom Penh or the pro- 
vincial interrogation house in northw'eslem 
Banombang. wh<^e Mr. Neou was one of the 
few surx’ivors. 

Neariy two decades later, this is a nation that 
still seems unable to face that trauma. Piles of 
hones and ^uUs are still unburied, as if the 
people who were spared were too exhausted to 
lay them to rest. 

The victimizers still live, unpunished, side 
by side with their victims. 

Now. with the world mobilizing to prepare a 
tribunal that would tiy Pol Pol and other Khmer 
Rouge leaders, it is far from certain that the 
CambCHiiaa people themselves are ready to see 
justice done. 

The memories are already painful enough, 
many people say. A trial that could reach down 
to rupture their families and neighborhoods 
mighrlK more than they'* can bear. 

“They killed my husband and my family,” 
said RosChhenda. who owns a small restaurant 
in Phnom Penh. ■■But now I don't think about 
the past anymore." 

For IS years, since they were driven into the 
jungle by* Vietnamese troops. Pol Pot and his 
men have continued to wage a guerrilla war 
from ti^ jungle hideouts. Their legacy of 
bitterness and violence remains alive in a feud- 
ing and furious government that sometimes 
seems on tire verge of open warfare. 

Cambodian society' is still too fragile to 
support the burden of a trial, Mr. Neou said. 

“If facing the past will jeopardize the 
present, I do not think it Is a good id^' ' he said. 

■‘These people live among us, and we cannot 
wish them away. I support the national policy 
of reconciliation and building ^ace because 
this is what Cambodia needs first. 1 choose 
peace fust and justice later." 

For Mr. Neou. his own story has become 
something of a cautionary tale and he tells it as 
be once recited the fables of Aesop. 

Wiren he was being beaten and accused of 
working for the Cenmil Intelligence Agency. 
Mr. Neou said, he memorized the faces of 
torturers, sustaining himself with thoughts of 

“I told myself that when my time comes. I 
will t^e revenge five times worse than what 
they are doing to me," he said. ‘’As a human 
being, you have that kind of anger." 

Three years later, when the Khmer Rouge 
government collapsed, he said he joined a 
flood of hundreds of thousands of people across 
the border into Thailand. 

Among the refugees at the Kbao I Dang 
camp, he said, he recognized one of his tor- 
mrers. a yoong man he had known as Comrade 

‘ ‘He fumed completely pale when he saw me 
and he began to shake," Neou recalled. ”1 

asked him, 'Oh. when did you arrive?* He could 
nor talk because of his tear and be only said. 
‘My wife is sick and my baby is dying.' " 

Neou, one of the few educa^ Cam- 
bodians who survived the Khmer Rouge 
killings, administered an aid program at die 

“Because of his fear and because bis baby 
was dying.” he said. “I completely changed 
my Tzund about miring revenge through an- 

Instead, he took the man to a feeding center, 
wh^ he arranged care for the wife and child 
and gave the man money for cig^ites. 


Beijing Denies 
Dissident’s Beating 

BEUING^Reports that the vet- 
eran dissident Wei Jingsheng has 
been beaten by other prisoners and 
is in ill health are “sheer fabric- 
ations," the Chinese Justice Min- 
istry said over tiie weekend. , 

The statement Saturday through 
the state-mn Xinhua news agency 
was Beijing's first direct conunent 
on reports ^ Mr. Wei’s family and 
human rights groups diat he was 
severely injured by prisoners h<^ 
ing to get reduced sentences for 
attacking him. 

1^. Wei, 46, is China's most 
famous dissident and is serving a 
14-year sentence at a prison in 
not&em Hebei Province, near 
Beijing, for advocating democratic 

Reports of the attack drew an 
expression of “concern" from the 
U.S. government and protests from 
groups concerned with Mr. Wei's 
case. (API 

Virus in Malaysia 
Kills a 30th Child 

borne virus has killed a 30th child 
in Malaysia, and international med- 
ical experts are still unable to 
identify the mysterious killer, local 
newspapers reported Sunday. 

The eight-month-old victim died 
from acute viral myocarditis, or 
heart inflammation, in a hospital on 
Saturday in the Sarawak logging 
town of Sibu on Borneo island. The 
Sunday Star newspaper reported. 

All of the dead have been chil- 
dren in Sarawak, and all have been 
stricken by viral myocarditis linked 
to w^t health officials here said is 
a lethal strain of the Coxsacicie vi- 
rus. I Reuters I 

5 Die in Australia 

HOBART. Australia — An Aus- 
tralian man appears to have stabbed 
his four children to death and then 
shot himself dead in a murder-sui- 
cide at a farmhouse in the island 
state of Tasmania, the local police 
said Sunday. 

The police found the bodies of 
the four victims, aged from about 6 
to 18, in the bedrooms of the house 
on Sunday morning. The body of 
their father was found outside the 
sai^tone cottage, in the rural ham- 
let of Cambridge near the state cap- 
ital Hobart (Reuters) 

Style, Sounds, Dining, 


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Fighting in Brazzaville 
Shatters the Cease-Fire 


KINSHASA, Congo — Heavy arms 
and automatic weapons fire echo^ Sun- 
day through Braoaville. ct^itai of (he 
Congo Republic, shattering the relative 
ca}m brought in by the e:itension of a 
cease-fire, a ^plonoat said. 

The diplomat, speaking from the Con- 
golese capital by telephone, said ex- 
changes of heavy weapons ^ battered 
Brazzaville in the early hours of Sunday 
moming. wiA fighting probably cen- 
tering on the international airport. 

Intense automatic weapon and ma- 
chine gun fire also broke out in the city 
center near the French Embassy in the 
late morning. 

The clashes broke an often-violated sume." 

surrounded the home of a former pres- 
ident, General Denis Sassou-Nguesso, 
in an attempt to disarm his private nuiitia 
ahead of presideotiai elecdons. 

Both sides claim to have control of the 
airport but sources say neither has total 
control the strate^c site. 

Estimates of the number of dead range 
ftom 1,000 people to more than 2,000. 

Pope John Paul II on Sunday qdled 
for a cease-fire in the conflict. ‘"My 
thoughts turn once more to Africa, in 
particular to Brazzaville, where frghtiog 
continues,’' the Pope said. 

"I hope that a cease-fire can once 
again be established,' ' the pontiff added, 
“and that peace negotiations will re- 

TEST: For CMn(h Beginning of a New Era 

anmen Sanaie demociaCT moronait. 
Continued from Page 1 th^ 15th Party Coi^ ap- 

Continued from Page 1 ^ .. 

. manv Chinese and Westm 
But the return of Hong Ko^ a ^ ’say they sense Be^'i dt 

just a moment of so^ ^Son to adhere to ^ p^ of 

trion^h for China's Communist PaiV reform while 

leaders: t also marks the confh^^o^ SSmtal steps to enhance China -s de- 
major events: notably Mr. Deng , veloDinn l^el system and m^^modesi 

eafc this year and the com^ocanoarf the bottom 

the’ I5th Communist Party Cong^^ village elficuons^ ; 

for this fall, at which the post-De^- are Stive and hy no 

leadership wUI receive fortnal approval 1 ^ 

and the future ofChina’s economic rev- ^ 

dlution willbeupformbs. ^ faithful atthegradn- 

ThedecisionsmadeWinBeijmgon Central Pwy 

thfifateofHongKong,onrelationswith ^on cerOTony langaage of.k 

cease-fire that was extended by a further 
week on Saturday. 

Fluting first erupted on June 3 when 
the forces of President Pascal Lissouba 

Mobutu Is ‘Weir 
After Surgery to 
Stop Bleeding 


RABAT, Morocco — The former 
leader of Taiie, Mobutu Sese Seko. 
was “well’’ Sunday after an op- 
eration for serious bleedmg com- 
plications and was convalescing, at- 
tended by some of his family, said a 
doctor at a hospital in Rabat 

' ' He is well f^or the moment.' ' the 
doctor at Avicenne Hospital said by 

Asked bow long the 66-year-oid 
former leader was" expected to stay 
in the hospital, the doctor said. “We 
can't say at this stage." 

He said “about 10 of his family” 
were with Marshal Mobutu at the 
hospital. No further operation was 

Marshal Mobutu, who is suffer- 
ing from prostate cancer, was 
brought to the Moroccan capital 
from the northern city of Taller on 
Friday and admitted to Avicenne's 
cardiology ward. 

Morocco's official news agency 
MAP said Satunlay that he had 
suffered “serious bleeding com- 
plications" and underwent “radi- 
ological vascular intervention" Sat- 
urday morning. 

“The operation passed in good 
conditions and the patient was 
well." the agency said, quoting an 
auihorized medical source. 

Marshal Mobutu, his family and 
entourage had been staying at a 
hotel south of Rabat, near king Has- 
san's palace at Skhirat. since their 
arrival last month. 

But on June 18 they moved to Le 
Mirage hotel in the sea resort at Cap 
Sponel. about 20 kilometers (12 
miles) from Tangier. 

Ofricials then said they expected 
Marshal Mobutu to spend up to six 
weeks there. Diplomats said he had 
asked for asylum in Spain and Por- 
tugal but had received no response. 

Paris Parade Leads 
Gay Europride Day 

A fence Fiviice-Presse 

PARIS — - In colorful parades across 
Europe, gays and lesbians celebrated 
Europride day, kicking off in Paris with 
a march led by gay bikers and a drag 
queen astride an old fire engine. 

Organizers of the aimual Europride 
march put the total turnout in the streets 
of Pacts on Saturday at a recond 300,000 

The aiipon north of downtown is cru- 
cial to bringing in supplies and possible 

Valentine Olezzongor, a spokesman 
for General Sassou-Nguesso, said Sat- 
urday that the government had retreated 
to one end of die runway, while General 
Sassou-Nguesso's militia held the con- 
trol tower and an adjacent bailding that 
until Iasi week had been the headquarters 
of a French n^itary evacuation team. 

The French pulled out after helping 
nearly 6,000 foreigners flee the fighting. 
A truce that was to have lasted for a we» 
after dieir departure was quickly 

A 14-member mediation committee 
that includes rrareseniatives of Mr. Lis- 
sQuba and of General Sassou-Nguesso 
announce Saturday that Ae two sides 
had agreed to yet another truce. 

'The comminee said in a statement 
Saturday that both sides bad also aipeed 
to a government of national unity to 
ptep^ for and oversee presidential 
elections, and the tiqtloymeni of foreign 
peacekeepers. (AFP. AP i 


and the future ofChina’s economic rev- ^ 

dlution willbeupformbs. ^ faithful at thegtadu- 

^ TltedecisionsmadeWinBeijmgoo Central Pwy 

thefa«ofHongpng,Mrelat^w^ ShSol the langoage of a 

Taiwan, on the future of economc re- SS^wrsion^ economic refbnn that 

form on the mainland, and on t oleran ce Zhao Ziyang, had ad- 

for human rights and leligious fieoto mt Tiang argued that 

coimtnestoaccotniDodate— orresist— C2iin^ owoership, inclodina. 

China's rise as a world power. , ^ new 

HongKongisthefirattestinayearof ^ 

testing. Oiiiia’s leaders are going »!» ^|^^^*frefpnnist camp does 

iiiAsMsA ran VaAUf thMT ITISliaoe thft fraSllC TIUS Snilt lO IBC y f 

judged on how they manage the fragile 
enterprise of mcorporating the free and 
vibrant society of nong_ Kong into the 
much laiger body politic of the Com- 
munist Twnintand. 

In China, power is maintained by ro- 
bust police-state fbrces, and politico le- 
gitimacy flows from how successfully 
the leaders ride the tiger of economic 

Alre«^. Western governments are 
expressing alarm over the effect of this 
on HoogKong, where China's Ministry 
of State Security and die intelligence 
branch of the People's Liberation Army 
forces have set up shop to search for 
enemies of the state as the British get set 
to withdraw. 

Several Western countries have 

not appear to oc an ideological epi^y 

for aMoscow-trained engine^ who be- 
came party boss. Rather, it is a re<^- 
nition Siat there is simply no altentahve, 
if the cenn^ government wai^ to save 
the 15 000 largest state industries, which 

wovide 60 percent of its revenues. 

And that may be the key to under- 
standing Mr. Jiang, a moderatdy pro- 
eressive Communist Chinese leader 
who stands for.veiy little beyond what 
will keep him in power. , . 

The biggest threat to his power this 
ciminar is a disasttous outcome in Hong 
Kong. If democracy forces are cornered 
or fbi^ to mount protracted combat 
against die stTictUTes of Chinosc rule, it 
will only mire Mr. Jlai^ in tretwh.war- 

AjWEe Ft»x IW i a 

ALL ROCKED OUT — Fans covered in mud recuperaring Sunday 
after a night of revelry at the Glastonbury Music Festival in EnglancL 

GERMANY; Industry Challenges Practice of Workers on Boards 

Continued from Page 1 

tatives account for only “a fifth of die 
members of the management or super- 
“There is not a sin^ country any- visory board." 
where in the world that seeks to copy “Europe will o{)ea the debate whether 

German co-deieiminaiion." Mr. Henkel we like to sweep it under the carpet in 
said. “None. No one wants our modeL" this country or not," Mr. Henlrel said. 

For two decades, co-determination has “The German business communjt>' is 
shown it can bog decisions, delay re- quite happy with that proposal because it 
structurings, block divestitures, suppress has muen less co-determinatioa" 

German Federation of Labor. Unions 

already are fighting a proposal by the departing Biiti^ a large measure of 
Justice Ministry to r^uce the number of freedom. And if Hong Kong's leaden 

supeavisory board seats to 12 from 20, 
giving worker-elected members 6 seals 
instead of 10. Even such a technical 
change represents “an attack on co- 

structurings. block divestitures, suppress 
boardroom debate and even cause the 
creation of a cumbet^me tier of shadow 
shareholder boards that hold preparatory 

The EU is under pressure ro act on a 
company statute. Brussels oflkials say, 
because of cases like the compiication- 

detemunation," according to Karin the hard-liners with whrai he shares 
Benz-Grerfaage, abo^ member at the poweT,-whowillgoadhimto*‘5taodup'' 
poweriul JG Met^ union. to tbe nmeo oppress critidmi arid inSiuts 

Anticipating unitm resistance, Mr. 

urday moming. ed members. Mr. Henkel said. 

“The operation passed in good Candidates for board positions behave 

conditions and the patient "was like “poUcictans kissing babies" to win 
well." the agency said, quoting an votes of labor representatives, he said, 
authorized medical source. Explaining why the time Is to 

Marshal Mobutu, his family and review co-determinacion, Mr. Henkel 
entourage had been staying at a cited two trends that he said unions could 

hotel south of Rabat, near king Has- not ignore. 

san's palace at Skhirat. since their The first emanates from the divided 
arrival last month. heart of German labor itself. The Ger- 

ButonJune 18 they moved to Le hian wage cartel has weakened astoo- 
Mirage hotel in the sea resort at Cap ishingly faster than anyone bad seemed 

Sponel. about 20 kilometers (12 to expect or hope only a year ago. 

miles) from Tangier. Threatened with layoffs, worker coun- 

Officials then said they expected cUs now acquiesce to case-by-case, fac- 
Marshal Mobutu to spend up to six loiy-specific woiking tenns, undercut- 
weeks there. Diplomats said he had ting their traditional high-wue. short- 
asked for asylum in Spain and For- hour nation-wide contracts. Scores of 
tugal but had received no response. companies, including BASF, Bayer, 

Daimler-Benz and Ford of Germany, 

have their own in-house pacts. 

P/vvifi T Mrlo "Germany has moved more in the last 

JTiCrio MjfSUWS is months than it has in the last eight 

^ rt • I ¥> years," Hcnltel said. 

trO/y iLUTOliTtdjB lj€tV ^ second trend comes out of Bius- 
*7 ”17 sels. The European Union has laid the 

AfenceFrauce-Presse groundwork to establish an EU-wide 

PARIS — ' In colorful parades across company statute, opening an unavoid- 
Europe, gays and lesbians celebrated able debate on which aspects of the 
Europride day, kicking off in Paris with German model to incorporate, 
a march led by gay bikers and a drag German unions stand to lose whether 
queen astride an old fire engine. such Inlaws would include co-deter- 

Organizers of the annud Europride mination or not, according to a draft 
march put the total turnout in the streets proposed to the European Commission 
ofl^ts on Saturday at a reconi 300,000 last montii. The dr^ bylaws would 
— the police put the numbers at 120,000 provide a novel way aronnd equal labor 
— packing the parade’s path through the rights for any Geixnan manager willing 
eastern part of die city despite the uo- (oalcertheiegalscatusofiuscompanyor 
seasonally cool weather. his subsidiaries. 

The event, which moves to Stockholm The head of the comminee that pro- 

meetings in private without union-elect- strewn reorganization of the four-oatioa resident of the German Federation of 

Airbus Industrie consortium, not tomen- 
tion the growing number of pan-Euro- 
pean Joint ventures, holding companies 
and joint subsidiaries spawned by die 
advent in 19^ of a common currency. 
For business leaders, company laws are 
the next logical extension of the com- 
mon markeL 

Bui even modest anempts to tamper 
with co-dcterminaiion are “strictiy op- 
posed,' ' said Hans-Detlev Kueller of the 

Davignon included Ernst Breit. former Beihng. 
resident of the German Federation of li Mr. 
Labor, on his paneL Mr. Breit voted in screws, d 

favor of the bylaws. Mr. Davignon 
“1 feel obligMl to warn my European 
business partners" Over the drawb^ks 
of co-determinatioa, said Mr. Henkel, 

mivaiely warned Beijins ihat any whiff fare with rival facuons in Aj^jins ana 
of police state wafts over Hong with die United States and other coun- 
Kong will destroy the open environment tries that have declared an interest m 
that has been the key to fmancial success Hong Kong's future. . l . 

there. Success may allow Mr. Deng s neus 

President Piang Zemin may be feeling to take further political risks that have 
die greatest pressure. Thoi^h he is nom- been unthinkable up to now, one or tnem 
inally at the helm, he could be the weak- involving the most sensinye political 
est leader since the Communist state was issue of die decade; a possibte review of 
founded in 1949. But his best d^ense the official version oi wtot happenra at 
against his inter n* 1 critics is simply to Tiananmen Square in Beijing in 19^. 
succeed. Mr. Jiang seeks to accomplish by 

This will require the Hiyipiinft of stealth and indirection what be cannot 
g ranting to Hong iCong, and to the confront head-on. He would use local 
r^inetf! pffieiaii ljt who ta left iww from the governments and the courts to relMse 
departing British, a taf gn measure of the remaining Tiananmen-erd political 
freedom. if Hong Kong's leaden prisoners gradually, while hf^ tiie le- 
manag ft to establish tiieir credibility by gal and professional restrictions on 
protecting anH «>» panning <ji »fnngriirir man y Others SO they could return to 
rule, Mr. Jiang will share the credit. school or government jobs. 

But it s^nre be easy for him to resist As he begins his nintii year in power, 

the baid-liners with whom he shares Mr. Jiang certainly kraiws that the 
poweT,-whowillgMLdhimto*‘5taodup'' “qiesni^ up" pqli^ Mr. Deng began 
to the raucoDS press critidmn and inSiuts two decades ago -is founded on the cal- 
that Hong ¥^ng regularly hurls at culaied risk that China's closed and iM- 
Beijing. lated society could begin a modernization 

ff Mr. Jiang is forced to mm the drive even modernization might ul- 
screws, Ae consequences could be dis- timately undermine or destroy — the 
astrous for his imai^ and for China's. pre-eminence of the Communist Pmy. 
Optimism also abound. The successful return of Hong Kong 

manage to establish their credibility by 
protecting and «« panning democratic 
rule, Mr. Jiang will share the credit. 

But it will not be easy for him to resist 

that Hong Kong regularly hurls at 

screws, the consequences could be dis- 
astrous for his imai^ and for China's. 
OMimism also s^oimds. 
ff oeijing kecqis its {uomises to pre- 
serve Hong Kong’s way of life largely 

whose seat on the supervisory board of unchanged for 50 years, this could mark 

Daimler-Benz Aerosi»ce AG puts him 
at the center of the Airbus debate. The 
German cortqiany is one of the frw 
Airbus parmers. 

*'It is ray job to accelerate change." 

may prove that Mr. Deng's heirs are still 
willing to take tire iidr of tolerance, of 
admitting che “enemy" into the raoth- 
eriand. Deng admitted China's en- 

the opening of a new era of tolerance, erland. Mfr. Deng admitted China s en- 
It would strengthen Mr. Jiang's hand emies, not knowing whether- he could 

in making the case fbr resunecting 
political reforms smothered by the 1989 
military suppression of toe Tlan- 

ultiraately haihess' tiieir pdv^. but 
knewing Chiite wouM be vai^oisbed 
its baclwardness if he did not 


FORMULA; Will the Promises Be Kept? 

Troops in Algeria 
Kill 20 Guerrillas 

PARIS — The securit>' forces in 
Algeria killed 20 Musto guerrillas 
after tiiey ambushed a convoy car- 
rying m^cine in western Algeria, a 
newspaper reported Sunday. 

El watan reported that troops killed 
the rebels in Saida Province last week 
after the ambush in which four ci- 
vilians were killed. 

other ailocments because the United 
States bad blocked contracts under the 

The Trade Ministry, which is re- 
sponsible for the distribution, did not 
mve a reason for the increase, but the 
United Nations has required bigger 
allotments as pan of the agrosn^t 
that allowed Ir^ to resume its limited 
oil expOTis in December. (AF) 

Remains in Bolivia 
said suspacted Might Be Guevurtt’s 

uslirn rebels detonaiedhhoraera^ r a 

-packing the parade’s path through the rights for any German manager willing “ 

eastern ^ of the despite the un- tealretjhelegalstetusofhiscompanyor Jo^^^ 

seasonally cool weather. his subsidiaries. {JnsTi “ 

The event, which moves to Stockholm The head of the comnurree that pro- tKeuier. 

nexryear, has been held for several years posed die bylaws, Etienne Davignon, a 

and is mirrored each year by a series of tormer vice president of the Europe lj(lSh>dClCl iTlCfCdSBS 
smaller demonstrations in national cap- Commission and now chairman of m 1- « ^ t i n • 

Muslim rebels detonaiedh homemade TA*>*-y 

on a train in a week. Two earlier ones, ^ discovered under an 

in two cars ofthe same train, wouo^d “o«via. 

at least 46 people, white one news- 

paper also said rwo petmle were the skeletal fragments Sal 

Sled tReuters} ® common grave near the 

tneutersf Vallegrande, said Jorge 

I I I I r Gonzalez of the Cuban Institute of 

iasnaad Increases Leg»i Medicine. 

A- ^ . j n uj arc to be conducted to dctcr- 

lOnthly KatlOflS mine whether the remains are those of 

Guevara and some of his rebel com- 
BAGHDAD — The go^rrunent patriots. Dr. Gonzalez said, 
nounced -Sunday that it would in- Bolivian forces seized Guevara and 

sase most monthly rations to the other rebels on (3 cl 8, 1^7. near 


Marches took place in Austria and in 
the Netherlands, where organizers said 
14.000 marched. 

In Madrid, several tiiousand gays 

gium's big^t company, Sbeiete Gen- 
erate de Belgique, said they allow for co- 
determination opt-outs. At the time of 
incorporation, pan-EU companies 
would be given a chance to persuade 

conunemoraied the 20th anniversary of their workers' councils to reject co-dei 
their first gay pride celebrations, held termioation. 

Monthly Rations 

announced -Sunday that it would in- Bolivian forces seized Guevara and 

crease most monthly rations to the other rebels on (3cl 8, 1^7. near 
Iraqi people, who are still suffering VadodelYeso. in a remote area souib- 

June 28, 1 977, a year and a half after the 
deatii of Franco. Then, a march in Bar- 
celona was broken up with rubber bullets 
fired by the police. 

But if woikers insisted on boardroom 
representation, they would not get Ger- 
man-style equality. Mr. Davignon's 
panel propose that workers’ represen- 

widespread shortages despite the UN 
oil-for-food deal. 

The increase comes a month after 
Iraq cut in half the ration for rice and 
declared that it was unable to increase 

east of the capital. The captured men 
were flown about 500 kilometers 
(about 300 miles) away to Valle- 
grande. where he and some of the 
others were executed. (API 

Continued from Page 1 

conflicting phrases of tile handover 
treaty. Hong Kong’s autonomy wiU be 
test^ time and again. 

The success or failure of the China- 
Hong Kong experiment will be judged 
according to certain guidroosis. Taken 
together, they will show how Beijing 
measures up to its promises and guar- 
antees. The following are some of the 
most iii^xmam areas to watch and the 
main questions ro ask after the transfer 

• Is ^ng Kong's much-vaunted civil 
service allowed to operate widiout pres- 
sure from Beijing, ami will it remain as 
free from comiption as it is today? 

One measure of civil service morale 
will be the future of the chief secretary, 
Anson Chan. She tops almost all opinion 
polls as the most popular publicfirare in 
the temiory, and the new chief exec- 
utive. Tung Chee-hwa, has decided to 
retain her. 

But Mrs. Chan has lately been making 
noises that she w'ould be prepaid to quit 
if she disagrees with the new govern- 
ment on “points of principle." If she 
resigns, her move would prob^ly 
prompt an exodus of other top bureau- 
crats and would be a sign of trouble. 

• Are the teiriGoiy's financial man- 
agers — the head of the monetary au- 
thority. Joseph Yam. and the finan cial 
secretary. Donald Tsang — allowed a 
free hand in setting fis^ policy? When 
Mr. Tune announced he was keening 

A departure by dther man would send 
con^ence plunuoetiDg, because it 
might mean Chinese of^ials or others 
were trying to inject politics into eco- 
ooroic planning. 

• ^1 the incoming govemment keq> 
its pledge to bold legislative elections 
wit^ a year? Tbe decision to aboli^ 
the cutxent, democratically elected leg- 
islature and replace it with an appoint^ 
one has added a sour note to what might 
otiierwise be a time of celebration on 
July I. Now, inriead of celebrautL^, 
groups advocating democracy promise 
street protests and court challenges. An 
early aimounceraent of an election date 
might defbse some of the anger. 

• If elections are called, will the roles 
be fail? Or will the type of system, and 
tbe shape of electoral ^tricts, be efrawn 
to favor tbe pro-China parties.over.die 
Democratic Party and its allies? The last 
elections, in 1^5. showed friai wh^ 
voters had a choice in single-seat dis- 
tricts, they voted for democracy advo- 
cates by wide margins. Mr. T^g maybe 
tempted to redraw die districts to ynaim it 
h^er for tiie Democrats and easieribr 
his friends to win, but the world hardly 
would accept the result as genai^.- - 

• Will the courts remain fair un~ 

partial arbiters of justice? Hie departing 
British colonialists gave Hong: Kong a 
leg^ system that is considered ibcfbuD- 
dation of the territory’s ecbnonuC-. suc- 
cess. English common law ooniinoe 

NATO: Expecting Big New Market, 17.5, Arms Industry Lobbies for Alliance’s Expansion Into Former East Bloc 

Continued from Page 1 

a lock for the next quarter-century." 

Tbe potential market for fighter jets 
alone is SIO billion, he said. ’Those Jets 
will require flight simulators, spare 
parts, electronics and engine improve- 
ments. “Then there's transptm aumft, 
utility helicopters, attack helicopters,” 
Mr. Johnson said, not to mention mil- 
itary communicadbos systems, com- 
puters, radar, radios and the other tools 
of a modem fighting force. 

‘.'Add them together, and we're talk- 
ing real money,'* he said. 

'iTie first si^s of a military spending 
spree in Central Europe have led the 
managing director of the International 
Monetary Fund to raise the issue with the 
secretary' of the Treasiny. While the 
State Department says it is urging re- 
straint on the potential NATO nations, 
the Pentagon U enticing (hem to buy 
American warplanes. 

NATO leaders are to meet in Madrid 
on July 8 and 9 to vote on expwding the 
alliance. TTie Clinton administration 
says the. Czech Republic, Hungary and 
Poland should be admitted now. 

Some NATO memb^ say Romania 
and Slovenia should join now. too. But 
the United States says Romania's de- 
mocracy and Slovenia's military do not 
yet meet the alliance's standards. 

After Madrid, the issue moves to the 

isl a{^\ 

ipember states by a two-tiiiids vote. Slovenia in April/dnunnung up busi- 
“To make sure the Senate knew this ness and supporting the largest possible 
was an important aspwt of U.S. se- expansionofNATO.lnBucharest.fol- 
curity," Mr. Jackson said, his U.S. Com- lowing through on an S82 million radv 
mittee to Expand NATO recently gave a contract, he supported Romania's 
dinner for a dozen senators at the private entry. 

Metropolitan Club, two blocks from the “Norm has an eniodcmal commit- 
White House. meat to NATO expansion," Mr. Jack- 

Over lamb chops and red wine, the son said. . 
senators heard Secreta^' of State In May. tbe chainnan of Bell Heli- 
Madeleine Albright explain NATO ex- copter Textron. Webb Joiner, also pro- 
paasion. The guest list included Bernard moted Romania's bid as he sealed a SI 
Schwartz, chairman of Loral Space and billion deal to sell the Romanians marine 
Communications, a company partly attack helicopters. In Washington, the 
owned by Lockheed Mar&i. Mr. comrany’s. lobbyist. Dick Smith, ^d 
Schwartz personally donated S601.00Q that Bell Helicopter Textron was fight- 
to Democratic politicians for the ing for Ronunia's inclusion by “doing 
1996 election. Lockheed Martin itself evei^hing we can to tell their story to 
gave S2.3 million to congressional our friends here." 

tioos to Democrats from lSt92 to 1996. 

Lockheed Martin wants its F- 16 filt- 
ers to replace-ifae old Soviet-made MiG- 
215 in tbe hangars of Central Europe. 
Norman Augustine. Lockheed Martin’s 
chief executive, touted Hungary, Po- 
land. the'Czech Republic. Rontenia and 
Slovenia in April, dnunming up busi- 
ness and supptming the laige&i possible 
e?^)^ion of NATX). In Buchar«t. fol- 
lowing through on an S82 million radv 
contract, he supported Romania's 

“Norm has an eniodcmal commit- 
ment to NATO expansion," Mr. Jack- 
son said. 

Id May. tbe chainnan of Bell Heli- 
copter Textron, Webb Joiner, also pro- 
moted Romania's bid as he sealed a SI 
billion deal to sell the Romanians marine 
attack helicopters. In Washington, the 
comrany’s. lobbyist, Dick Smith, ;^d 
that Bell Helicopter Textron was fighi- 
ing for Roirunia's inclusion by “doing 

gave S2.3 million to congressional 
and presidential candidates in the 
1996 election, part of a five-fold 
increase in defense companies' dona- 

our friends here." 

Mircea Gasana, Romanian ambassa- 
dor to the United States, said, * *The most 
interested corporations are the defense 

corporations, because they have a direct 
interest in tiie issue." 

The U.S. administiatioa says the cost 
of a few nations' joining NATO may 
reach $35 billion over 10 years, with tbe 
United States paying about $2 billion. 
But the Con^ssional Budget Office 
sws tbe cost may reach S 125 billion over 
15 years, with the United States paying 
op to $19 billion. 

Depu^ Secret^ of State Strobe Tal- 
bott said in an interview that Central 
European nations would acmally spend 
less on weapons if they were admitted to 
NATO, thanks to the collective security 
offo^ by the alliance. 

“FeeJi^ more secure, they will feel 
less incentive to build up their arma- 
ments to deal witii real or perceived 
insecurities,” be said. 

But the Czech Republic, Hungary and 
Poland all project rising military budgets 
in doming years, although (hat spending 
is still a small ponion of their econ- 
omies, according to a Senate Foreign 
Relations Committee report by Senator 
Joseph Biden Jr., a Delaware Democrat 
who supports NATO expansion. 

Critics of NATO expansion say 

L L u ^ announced he was keeping as the legal code h er e,- iwnfiwtft from 
both holdovers from the British colonial Chinese law, and a court of final' aop^ 
government, businesses sighed in relief, will be established. ; • 

Lawyers and others .will be watefaiiog 
for any sign that Jud^ are 

to Former East Bloc 

are involved in litisation. One Idhi of 
w^ns spending could create poUtical troubte might be tf judges stan Wring 
Md economic problems in Central the bew* before retiremeiirafie. - . 

j. ^ • Will the press be allowedio operate 

Law. the docaSent 

cOTnines to shoulder these costs when laymg out the ground rules for TtIbPS 

Kong’s autonomy under OiS gu«' 
social Q^, said Jack Matlock, a antees that “Hong Kong resSSlsWl 
4“ba?sador to Moscow. have fineedom of speech, of them^ abd 

AmSS? Qf publication.” But Mr. T im 

Amw^ aims, he said. The ques- sig^ about areas that misS be'ebn- 
QOT IS how thCT pay for It. U *e Amer- sidered off-limits, such 
lean ^paycr^anew Aem, tins would independence for Taiwan or Tibk’ ot 

Iniemaaonal Monetary Fund, whose bil- the early monm^ours 
lions of dollars of loans in the region are to ram^thrwmh^MSSJ^^ 
conditioned on fiscal restraint, luxord- 

ing to the fund’s officials. poUce ^ 

This month, the fund’s manacins di- stand asirf,- 

ing to the fund’s officials. poUce niwe T. 

Tliis month, the fund’s managing di- stand aside and 
rector. Michel Camdessus, raised the nm their 
issue of mililary spending in Central early, m the iSi 
Europe with Treasury Secretary Roben hours. A lai«f u 

Rubin, according to a senior Treasury police agree to 

ims monm, me tuna s managmg di- stand aside and tet 
rector. Michel Camdessus, raised the nmthefreonree’^^f^SS 
issue of mililary spending in Central earlv. in rb.. 



PAGE 10 

MONDAS; JUNE 30, 1997 






Hong Kong Handover 

China’s Chance 

Madeleine Albright's datebook 
nicely captures America's ambival- 
ence aboat the return of Hong Kong to 
China at midnight Monday. The sec- 
retary of state will atmnd the tracer 

ceremony, properly honoring China's 
historic^ claim to Hong I^g. She 

will skip the inaugural session of the 
new Hong Kong legislacure, rightly 
snubbing an tmasmocEatic body ap- 
pointed by China's leaders. 

There is good reason for Americans 
to be troubled by the transfer. 

A relatively free society is being 
handed over to a Communist- dicta- 
torship not quite a decade after the 
Berlin Wall fell. The inglorious history 
of Britain’s claim to Hong Kong, es- 
tablished in 1842 after British forces 
overwhelmed Chin a in the Opium War, 
justiftes the transfer. A reasonable 1984 
agreement between Britain and China 
compels iL The acctvd, known as the 
Joint D^laraiion, provides for a hi^ 
degree of autonomy in Hong Koi^ until 
at 2047, including the main^iance 
of political auid economic freedom. 

The question of the hour is whether 
C hina intends to keep that promise, 
once succinctly described Deng 
Xiwpiog, then the Chinese leader, as a 
commitment to ‘ ‘one country, two sys- 
tems." The answer is not likely to 
come quickly or clearly. The reladon- 
sUp between China and Hong Kong is 
hi^y intricate, and not easily con- 
densra into the videotape or headlines 
of a 24-hour news cycle. 

Democracy support may be har- 
assed by the authorities if they stage 
demonstrations in the days ah^d, but 
that ^1 nor necessarily signal the im- 

mediate death of liberty in Hong Kong. 
Conversely, China's leaders ^y pub- 
licly reaftirm their plette to live with a 
largely autonomous Hong Kong, but 
that will baldly guarantee the survival 
of an independrat judiciary, profes- 
sional civil service and free j^s. 

In financ^ terms, Hong Kashas 
already been largely abscnbed by uiioa. 
Over tte last decade tiie colony’s 
bankers and businessmen iimted 
heavily in China. And the ectmonues of 
Che two societies are now dummighly 
interwoven. ^If-interest suggests a de- 
gree of restraint is likely in both ccm- 
munities. Bm the preoccupa^n with 
proftts among Hong fCong’s civic leadr 

e n; may also leave political fireedoms 
. No ot 

; to eiosiCHi. No one know how 
It China's grip can get before it starts 
ta*ctoke off the aureprnieurial oxygen 
that has sustained str^ growtit 
Cenainly, China’s initial political 
moves in Hong Kong have been alarm- 
ing. The new legislature is theoretically 
temporaiy, but China has left unclear 
whether it will eveotaally allow a freely 

elected body. Hong Kong's new chief 
5, Tting Chee-hwa, is a ' ' 


ping magnate with a fondness 
Singapore's anihoritarian political sys- 
tem. bas warned Aat "subver- 
sive " dissent will not be tolerated, leav- 
ing itself wide latitnde fc»: rqir^ion. 
Last week's decision to garrison 4,000 
Chinese troops in Hong Koi^ was a 
crude move to intimidate its dtizeos. 

Beijing, by habit and ideology, is 
quite capable of squashing freedom in 
nong Kong. But as Qiina steps onto 
the world stage, it has an opporomity in 
Hong Kong to present a dimerent face. 
Few nations get such a chance to define 


Stay Vigilant 

Wei Jingsheng. China's leading dis- 
sident, recently was t^ly beaten m jail 
by fellow inmates, with the apparent 
encouragement of his jailers, accord- 
ing to his relatives. The courageous 
Mr. Wei, 47, whose only crime is the 
peaceful advocacy of democracy, was 
already suffering from serious medical 

Hong Kong’s independence. The 
United States and, just recently in Den- 
ver, its allies among leading industri- 
alized nations all have pledged vigilance 

00 behalf of Hong Kong’s libecQr. 

ram both China and 

oblems. China's leaders, who have 

adulthood, witi not grant him access to 


ept him in prison for most of his 

adequate medical care. 

raise such an unpleasant subject 
on the historic occasion of Hong 
Kong's reversion from Britain to 
China? The transfer of audiori^ will 
undeistandably be a moment of pricte 
for many Chmese, die righting of an 
imperialist wrong. Many residrats of 
Hong Kong share a national satisfaction 
in seeing one of their ov>*n installed, for 
the first time, as Hong Kong's chief. 

But many in Hong Kong also feel 
ambivalence about the fact that the new 
‘chief, Tung Chee-hwa, was handpicked 
in Beijing. Hong Kong has evolyra into 
.one of the fr^t societies on earth. 
C^a, as Mr. Wei’s suffering reminds 
us, has not. Hong Kong's new. Beijing- 
approved legis&ture will soon pass 
' new laws on sedition and the protection 
'^'Of state secrets — the v^ statutes 
China has used to repress dissent 
“ This does not mean that freedom is 
about to be snuffed out ovemi^ in 
Hong Kong. Chinese leaders have 
promised to respect Hong Kong’s 
autonomy, if they don’t both their own 
international standing and Hong King's 
economic value to them may be di- 
minished. Mr. Tung, diough of uncer- 
tain commitment to democracy, is a 
businessman of stature who has selected 
able lieutenants and who may battle for 

Signals from both China and the 
United States are less clear than the 
promises themselves. Bedjing already 
has replaced Hong E^ong's elected Iqg- 
islattne witti an easily controlled ap- 
pointed version and has significanuy 
scaled back Hong Kong 's chm liberties. 
President Bill Clinton, while promising 
support, has never spelled out what 
be at stake — presidential sum- 
mits? China’s accession to the WTO? 
— if China tranqiles on Hcaig Kong's 
fr'eedoms. Sometimes it seems as if the 
administration wants to chan^;^ hu- 
man ri^ts without risking goMvrill in 
its relationship with China. 

This ambiguity is continmng right 
np through the transfer, as Secretary of 
State M^leine Albri^t announced 
she would boycott the swearing-in of 
Hong Kong's new puppet legislature 
but then decided to send a high-ranking 
aide to the event 

Mr. Wei has long understood that 
intemation^ pressure can influence 
China's behavior. When Beijing 
wanted to be chosen to hold the 2000 
Olympics. Chinese leaders released 
him; when the games went elsewhere, 
the leaders t^w him back in jail. After 
his recent beating, Mr. Wei told vis- 
iting relatives; "T%e United States and 
other Western countries have suc- 
cnmbed and stopped criticizing China. 
China feels it can now do wh^ver it 
wants to me and other dissidents." 

The Clinton administration and its 
allies should do everything tiiey can to 
ensure China does not feel emboldened 
to mistrsat. Hong Kong’s 6.3 oiillioo 
citizens with the same impunity. 


Other Comment 

Good-bje to AU That 

As Hong Kong’s 28ih and last gov- 
ernor, ChristophCT P^n was its first 
politician. Ap^inted to executive of- 
r flee, he used his bully pulpit to plump 
' fca-adenxicraticlegisjanueLAndt^^ 
he eschewed the traditional plumed pith 
' helmet and sword for the sober grey of a 
business suit, the sense of honor he 

• sought to ifiqiose on tiie end of Britain’s 
; colonial entet|ffise in the Far E^t em- 

• bodies tiw best Victorian virtues. 

Today, of course, colonialism has 
i come to be identifi^ almost exclus- 
ively with its Europe^ strains, often as 
a synonym for exploitation and racism. 
And surely the idea upon which all 
I colonialism rests — that one race or 
nation should rule another — isgrating 
. even in the best of circumstances. 

' As Hoi^ Kong has moved closer to 
reunification, die old slights and griev- 
ances have b^ resurrected. Ceiminly 
they constimte le^timate points of his- 
torical debate and inquiry. Yet it seems 
to us that a China which ^courages 
Hong Kong to put behind them 
the events cn just eight yeus ago on 
Tiananmen Square is not in a strong 
position to play the i^ium card of a 
century and a half ago. 

Whatever the wroi^s of tile past, the 
Hong Kong which Britain bequeaths to 
China is the most vibrant Chinese city 
in the world. Though no objective 
reading of Britain’s colonial record can 
be blind to its sins, neither should it 
prevent us from acicdowledging its 

— Far Eastern Economic Review 
{Hong Kong). 





RICHARD MeCLEAN, Publisher 4 Chief Executive 
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The Last Gasp of Britain’s Imperial Retreat 

M. V . * . 

L ondon — T he British ensure wUl 
eSectiyely come to an end v^eo 
easily is most populous lemaising 

By Denis Jndd 


.1- V » nesdte the horrors of partition and 

)le wodds all IS for the best. grubby deals surroniKling it, 

bothcasestiieimagewillbedeeply the often gruouy^^ 

^ . British goveinmmits 

flawed and to a lacgs extent fiaudnlmi. reljeat,^ro 

cokmy. Hoi« Koi^, is reclaim^ by the loss of Hong Kong, the final mean- Thb British leftlndiain 1947 not be- emuire as a singuto tri- 


islands like 
500 yeara of Briti^ iz^iedal histoiy will 
end not witii a bang but a wtnnqier. 

The vriiimper, whidi may ^ell to an 
embairassingly shrill ciy for help once 
the Chinese government is truly in con- 
trol, comes from Hong Kong. The signs 
are not good for the preservation of 
Western-style democracy in Hong 
Kong: The-Legislative Council will be 
dissolved at tiie handover, and al- 
though China has undertaken to hold 
elections for a less powerfully con- 
stituted assembly by die summer of 

1945-50 Dushed duough die ind^jcn- 

1998, a great deal can go wrong in the 
meantime. Dissent, both putme and 

private, will at first be a sternly rationed 
commodity and will very likely be 
crushed altogetiier in due course. 

Thar the British govemmem under 
Margaret Thatcher, that apparently 
doughty defender of Western values, 
should have set this process in motion 
in the early 1980s seems at first sight 
astonishing. Yet it is wholly consistent 
with the principles, or lack of them, that 
have marked the British retreat from 
empire whidi began in 1947. when the 
greatKt imperial possession. India, be- 
came independenL 

The demotion of tiie en 4 uie and 
commonwealth as a vital and enriching 
British interest has been caking place 
since at least the end of World War 0, 
when a victorious but bankrupt mother 
country could no longer sustain its 

global influence on anything like the 
fition, Sie crush- 

previous scale. In ad^lion, 
mg Labour viemty in the British gen- 
eral election of July 1945 seemed to 
demonstrate die electorate’s desire for 
social reform and full enqdoyment at 
home, not vainglorious posturing arid 
imperial vtxap overseas. The empire, 
af^ 1945, was on die way ouL and the 
welfere state was on the way in. 

By a neat historical coincidence, 
Tony Blair' s recent trinimh means that 
a Labour govemment will preside over 


dence of India and Pakistan in tiie sum- 
mer of 1947. Not that it matters a great 
deal which party is in power as the flag 
comes down. 

Blui^ pot, self-interest and a desire 
for profitable trade and national se- 
curity, not -high-minded philanthropy 
and a passion for democracy, were at 
the root of Britain's acquisition of the 
lazgestteQ{»re in world hiscozy. Asun- 
ilar sfllfishMM ^ac mariced tfia nmeesR 

of initial devolution. This hu not 
always been easy to discern, masked as 
it has been ^ the rhetoric of "orderly 
decolohization,*’ "tiie granting of in- 
dependence," "the establishment of 
democratic institutions," "the g^ of 
the rule of law" and equivalent Mami 
and comforting mantras. 

It is not duGcnlt to see why this 
should have been the case. Few gov- 
ernments, even tiie most ttitalitarian, 
feel able to justify their actions without 
some ritual reference to noble purposes 
and imlif^ vision. Such tactics help to 
muffle dissent at hrane and opposzoon 
abroad. They also look good on the 
public record and serve to oil the whe^ 
of various propaganda znac^es. Fur- 
tbetmoie, mey provide a cansouflage 
behind which painftii adjustments to 
national decline and the whhering cf 
global influence may be endured. 

Hong Kozig will be siurendered at 
the end of June 1997 in a ^le un- 
cannily teminiscent of tiie way in which 
the British withdrew from India ahnost 
50 years ago, in August 1947. There 
will be gc^ous, pemws moving ce- 
remomal. Hus wm be lowered; heads 
of state or feeir lepresenratives will 
shake hands; impratant figures firon die 
worlds of politics, defense and business 
will n^le and itemize; the socially 
ambitious will have secured their tick- 
ets of admission, and tiie masses will 
have been assured that in the best of 

Srmodern eoroire as a wi- 

all the signs dm dw 
Hong K<Jg he 

lUCV <uau HtfU wavu ' ■ ^.-..Uitpryaebftd. althOUgU tuOfl- 

and that ^ public at home wanted tiie 
welfare state and fuU eoqiloyment, not a 

bitter and costly war to retain the Raj. 
R|na11y feignificant, they had fOT SOUK 
time felt that they could hand over to an 
Tmtipn dite, 0^ Western-educated, 
that would ke^ the subcraitinent safe 
for bodi Brit^ investment and inter- 
national capitalism. 

Almost at the last miauie. however, 
this seff-serving forzoala looked 


'‘®&ntiaUy Britain has no radon ten 

to Bp Within the colony, 
Te&i« » 99 -year lease 

iSriS this yean thus the Bntish can 
leavine at least 

SS^a^good tenants, leaviM at le^ 

If the freedoms of 
several nuUion former 
British subjects are 

Britain in 1842 Jn p^^' 
and Kowloon 20 years later. . Why 

abandon them? .. w 

The irudi is that even if Bntam 
wanted to hang on to Hong Kon^it 
lacks the miS to dp so. In 
Hong Kong was originally acquired for 
tbepniposes of trade and the 
of adoor to the Chinese maml^ simh 

cynically abandoned, ^ 

this wiu be nothing nevo 

in British imperial nnwer than after an unsee^y airi 


doomed. Tte leader of the Muslim 
mizKxify, Mohammed Ali Jinnah, de- 
manded a sqiarate Muslim state — 
Pakistan. Hitherto British policymakers 
had convinced tiieniselves that they 
could hand over a united subcontinent to 
its new masters. Tmiiah was intiansigenL 
The transfer of power seemed stuck. 

In a decisive masterstroke, Attlee 
sacked the viceroy. Lord Wa^^, and 

E inted the king 's cousin Lord Louis 
Qtbatten in ms j)laoe. Mountbat- 
ten, vain, overweening and with few 
j^ciples save those of self-promo- 
tion, conceded partition and. hustled 
fridU to indepemfeoce in a few months, 
hi the {access of the creation of India 
and Pakistan, periuqis a million 
refugees were slaughtered in commun- 

power than after — , 

unwinnable spat with the People s. 

Regublk.^ process, the relatively 
democratic freedoms of several millm 
former British subjects are cynically 
abandoned, this wiU be nothing new m 
British imperial history, a* ibe onefest 
sciutisy of die empire's abandmimwt 
will show — firran Burma to Nigeria, 
from Palestine to Zimbabwe. 

The great Victorian prime minister 
Lord &nerston, an unscrupulous 

practitioner of "gunboat diplomacy, 

put all of rbis into a neat phrase, a 
soundbite before they were defin^ 
when he declared that "Britain s in- 
terests are eternal." The retreat from 
Hbng Kong is merely the latest proof 
that he was right 

The writer is a historim whose 

^ - recent book is "Empire: The British 

al mainly in the Punjab, as Imperial Ej^erience From / 765 to the- 

millions' trekked to their religious Present." He contributed this comment 

hnfni»iands acTO S S the ncw bo^eis. to the Insemational Herald Tribune. 

All Asia, and the West, Will Feel the Transfer’s Reverberations 

H onolulu — After the 

Union Jack has been 
hauled down and tiie Chinese 
1 ^ banner tun up, after the 
smoke fiom fire<^kers has 
cleared and the la^ drumroll 
faded away, after the speeches 
and parades and spmi^ events 
and political forzzKaiities, the re- 
turn of Hong Kong to China will 
have profound consequences 
for all of Asia — and the West 
At midnight between Mon- 
day. June 30. and Tuesday. July 
1, tiie British Crown Colony of 
1 SO years will become a Chinese 
Special Adniuusfrative Region,^ 
vnth Beijing having pledged that 
it will enjoy a "bish degree of 
autonomy" for SO years. Only 
foreign affaiis and national se- 
curity will su{^x»edJy come un- 
der China’s purview. 

The shift of Hong Kong to 

3y Richard Hallorazz 

Chinese governance, however, 
will be far more (ban a (tiiange in 
sovereignly for die city-state of 
63 milUon people clin^g to the 
underbeUy of China's southeast- 
ern coast The implications will 
show up in at least five ways; 

• Nationalism: The reversion 
of Hong Kong is the next to last 
gasp in 500 years of European, 
American and Japanese coloni- 
alism in Asia; the last will be the 
reversion of the Portuguese 
colony of Macao to China in 
1999. The prospect of these 
handovers 1^ tueied n JP^' 
oxysm of nationalism in China 
and applause across Asia, where 
national pride is the most power- 
ful political and social force. 

• China's future: Beijing's 
rule of Hong Kong wUl be 

watched everywhere as a mea- 
sure of whether China will 
abide by its treaty widt Biiuun 
and thus its other iatemational 
commitments. Further, China's 
governance will be agange as to 
whether Beijing wm use the 
wealth of its expanding econ- 
omy to assert itself aggressively 
or to inwove the lot of its 1.2 
billion p^le. 

• Hong Kong's fate: China 
has made clear ^t Kong 
will have no more political free- 
dom than the maiolaad. Be- 
cause Hong Kong is an eco- 
nomic center, its fete will affect 
the economies of Asian and 
Western nations. Hong Kong 
Chinese have express^ opti- 
mism because a thriving Hong 
Koi^ would benefit China. 

Look at the Movie, Not Snapshots 

Many Westerners fear that 
Chinese bureaucratic iocotnp^ 
tence, ^eed and corruption will 
jeopan^ Hong Kong. 

• Thiiiian: China contends that 

tie “one couniry, two systems" 
under which Houg Kong is in- 
tended to will entice 

Taiwan, which ^jing considers 
a breakaway ^vince, to reunite 
with China. Taiwan has expli- 
citly rejected that approach. 

• Foreign ii^uence: British. 
American and Japanese leaders 
have said they will support 
Hong Kemg’s r^ts after rever- 
sion. hi steik feet, no outside 
power will have much influence. 
The handover is the result of a 
treaty, but a Qiuiese official, 
Zhao Jlhua, has brushed that 
aside; "Hoz^ Kong will be (he 
internal afihir of China. No for- 
eign government, or foreigner, 
are in a position to interfere with 
the internal affairs of China." 

Of these 

ccnsequences, per- 
haps the most inqiortanc be 

W ASHINGTON — The re- 
version of Hong Kong to 
China is not merely a symbolic 
acL a quaint emt^h to enqiire cs 
a sinqtie mondity play about evil 
overtaking good. It is achanging 
of history's flight path: At one 
second midoi^t on July I , 
China emerges from a centuiy of 
humiliation to assume new 
force, wealth and restored pride 
as an Asian power. 

Those of us who are shi^ly 
critical of tile reginie in Beijing 
and ^iprehensive about its in- 
tentions toward Hong Kong 
cannot begrudge the Chmese 
natitm this day of restoration, 
even as we wish that Britain and 
the international community 
had negotiated better terms for 
the handover and stronger pro- 
tection of human rights. 

Besides, to deny that China 
has a historic right to regain this 
stolen tenitozy now would play 
into the hands of the hard-liners 
in Beijing who portray any crit- 
icism of them as a criticism of 
— and a plot gainst — tiie 
Chinese people. "We know 
tiiere are two kinds of people in 
America watching the return: 
Those who fear it will fa^ and 
those who want it to fail. We 
will remember," a high-level 
Chinese official told a recent 
Western visitor to Beijing. 

Such paranoia underscores 
the ^wing importance of the 
^uological dimension in 
ChiQa’5 tangled relations with 
tire West and its Asian neigh- 
bors. So does Beijing's deier- 
minarinn to US6 the restoration 
as a crowning moment of heal- 
ing a centmy-old wound that 
contributed to the pauperization 
of a once great empire. 

The govemmental alchemy 
that Wl occur in Hong Kong on 
Jufy 1 will move the territory's 
6.3 million people, and about 
$60 billion in foreign currency 
reserves, from an environment 
df unfettered gfobal capitalism 
to a still uncertain form of polit- 
ical and economic control by a 
distant, geriatric Leninist polit- 

That alchemy will also de- 
mand adjustments in the foreign 
policies of all major govem- 

By Jim Hoagland 

ments, especially in the Clinton 
administration's still evolving 
approach on China, which has 
recently shifted emphasis in 
two areas with direct bearing on 
Hong Kong. 

The first ch^e is K> empha- 
size to the Chinese govenunent 
and to the American people that 
official Wasbingmn is watching 
Beijing's beha^or on human 
rights, on Hong Kong and on 
destabilizing arms . purchases 
and sales, am can add sticks to 
an approach that has been almost 
entirely carrots until now. 

"It is very important that we 
watch this reversion as a movie, 
not as a snapshot,’' said Samuel 
R. (Sandy) Berber, President 
Bill Clinton's national security 
adviser and a key force in the 
shaping of U.S. Oiina policy, in 
a recent couversatiou. * * We will 

America has a duty 
to speak clearly. 

be watching over an extended 
period of time to see if the com- 
mitments the Chinese govern- 
ment has made" to avoid ab- 
rupt, autocratic change in Hong 
Kong will be honored, 

"This is a unique situation. 
Hong Kong rev^ to Chinese 
sovereignty, but it still has a dis- 
tina le^ stams," be continued. 
' 'How China handles this unique 
situation is a very important in- 
dicator of China's overall direc- 
tion and its integration into the 
intemational community, and of 
how our rd^oQship wiA China 

will develop. ' 

I took this as a very diplo- 

matically phrased warning to 
Beijing that a crackdown on 
Hong Kong in the coming 
months would jeopardize the 
midaunimn summit meeting be- 
tween Prudent Clinton and Pi- 
ang Zemin. In his comments, 
Mr. Berger portrayed that meet- 
ing and ^ other high-level con- 
tacts Mr. Clinton has authorized 
as tools b get the Chinese to 
change more, rather than as cel- 

ebrations of the change Beijing 
says has already occurred 

"We feel that as a practical 
matter we can get more done if 
we meet wife ^ Chinese lead- 
ers and try to figure out bow to 
promote change rather than giv- 
ing them a list of 14 precon- 
ditions they have to fulfill in 
Older to have a meeting.'' Mr. 
Berger said 

T^ might be a spiffed up 
version of fee old "quiet di- 
plomacy" excuse for doii^ 
nothing. But I was struck that in 
discussing human rights on the 
mainland and in Hong Kong, 
Mr. Beiger used more muscular 
verbs than leading Clintonites 
deployed in the second half of 
. fee president's first term; 

"We want to cooperate, but 
there are fundament areas of 
d^erence where we need to 
confront the Chinese, like hu- 
man rights. ... I’m not one who 
believes commercial engage- 
ment is a sufficient human ri^ts 
policy in itself. ... Any move- 
ment toward permanent most- 
fevored-nation status for ChW 
will have to be accotmanied by 
progress on human ri^ts." 

The administration is also 
now emphasizing that its policy 
toward Beging is part of a 
broader "Asia" policy that is 
' less focused on Qiina as a po- 
tential economic superpower. 
Woriting with China’s neigh- 
bors to influence Beijing’s be- 
havior is a paramount strand of. 
that policy. Defense Secretary 
William Cohen suggests. 

*’Wockuig with Japan and 
the nations of Southeast Asia 
gives us more influence with 
China. If we split off from them, 
we lose leverage on China,’’ 
Mr. Cohen says. 

The change in Hong Kong is 
foremost for Beijing a matter of 
righting past wrongs. But re- 
version also provides an oppor- 
tunity, and an obligation, for 
Washington to think and speak 
more clearly about the future, of 
China and of U,S. expectations 
in Asia. However small, the 
signs feat die Clinmn aebnin- 
istration is beginning to step up 
to that challenge are welcome. 

The Wuslungton Post 

the effect on nationalism in 
Asia. Hong Kong’s reversion 
symbolizes the end of Chinese 
humiliation the West and Ja- 

pan, and the stimulus to Chinese 
natimialism will be evident not 
only in fee extravagant celebra- 
tions of July but in years ahead. 

The Far Eastern Economic 
Review, published in Hong 
Kong, summed up Asian sea- 
timent: "Asian countries accept 
Beijing’s claim to Hong Kong 
and will cheer this prominent 
symbol of the coming Asian 

The immediate prospects for 
Hong Kong have become vis- 
ible as. the Chinese make clear 
feat steps toward democracy 
begun the British will m 
reversed. Freedom of spMch, 
assembly, the press and religion 
will be coDCralled despite 

“Hong Kong mil 
be the internal 
affair of Oiina. No 
government, or 
foreigners, are in a 
position to interfere 
tdih the interna! 
affairs of Oima.” 

Beijing’s promise of a high'de- 
gree of autonomy. 

Economically, most observ- 
ers believe the Chinese wiU 
strive to foster Hong Kong's 
mo^ierify because it serves 
Beijing's purposes, but tiiat 

Asian executives taken by fee 
Far Eastern Economic R^iew 
found a majority thufeing tiiar 
curtailed civil liberties and the 
legal system In Hong Kong 
would make it less attractive for 

Lastly, John Bull and Uncle 
Sam can bluster about what 
they consider excesses in 
China’s control of Hong Kc^, 
but feere is little they can do 
about iL Meifeer appears to have 
the stomach for economic sanc- 
tions and neither is about to 
threaten military action. 

A British officii, Hugh Dav- 
ies, emerged from last-minute 
negotiations wife Qii n^ to de- 
clare that if it reduced Hong 
Kong's ecmomic autonomy or 
restricted political freedoms, 
"we would blow fee whistle." 
Asked whac Bifrain could do, fie 

conceded tiiat any moves w^d 
be "largely d^lomatic." 

hueruarional Herald Tribune. 


1897: Lovers’ Suicides 

PARIS — A double suicide, fee 
cause of which is said by fee 
French press to be amour, was 
by the Temps. M. Emi le 


I — , after many y^rs of mar- 
ried life, deserted his wife and 
went to live with a dressmaker. 
After a time he wished to get a 
divoice fiom his lawfol mate 
and failing drowned hunself in 
company wife fee second object 
of his choice. After a last 
fee lovers bound themUlves to- 
gether and threw feemselves in- 
K) the Seine, expending their 
final strength in a last kiss. 

the communication of the reg- 
ulars with dieir bases at Begg^ 
Bush and ofeer barracks. A C!ab- 
iitet Minister said that fee 2^ 
visi on a l Goveanmeot was ready 
to rau fee buildings if necessary 
to drive out fee irregulars. 




fort may well fail because of 
bureaucratic red tape and cor- 
ruption. Qiina 's economy has 
been haoipered by inefficient 
government enterprises and 
rampant bribery. ' 

The Economist Intelligence 
Unit, an affiliate of the Econ- 
omist magazine in London, had 
censidered Hong Kong the 
world's most favorable place to 
do business over fee last five 
years. Over the next five years, 
Hong Kong will faU ta 14th 
place, it projects. Polls of 



1 :: 

i- -■■■ 

1947: Captive Let Go 

1922: . Dublin Fighting 

DUBLIN — The fighting of the 
rival factions of fee Irish Re- 
publican Army spread throu^- 
out fee central p^ of the city 
today [June 29]. New contin- 
grats of irregulars have occu- 
pied several buildings, fr^ 
which feey are able to ham^ 

PALERMO — Pal ermo police 
said toni^t [June 28] that An- 
gelo Alamia, reportedly an 
I^o->ynerican jfrom Brooklyn, 
New York, had been kidnapped 
^ held by the bandit leader 
Salvatore Giuliano. Mr. Alamia 
had come to many a S iriiian giri 
hvmg in fee village of Ca^. 
near Palermo. Mr. Alamia sail 
he was held in a richly furhirisfid 
room and treated wife eveiy 

ct^ideration fay tneo 

who brought . him 
food. He said feat fee jewels, 
money and watch he was car- 
tyiw when kidnapped were not 
stolra and chat he was set free 
without paying any ransom. 



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RAGE 11 



The Jade From Gem to Hack to Hussy 

By William Safire 

of men,** wrote the New 
York Times columnist 
Maureen Dowd in high 
dudgeon, “prompted by 
the president’s lawyer, 
come forth and accuse 
[Paula] Jones of beine a 
jade who wore short slurrs 
and flirted. Imagine. ' ’ 

A jade? Many of us have 
given a gift of ynde, which 
is a green gemstone. Its 
name comes &om the Latin 
ilia, “side,** bdsed on the ancient no- 
tion that the wearing of the green cumd 
a pain in the ribs. (That's a stitch.) 

whipped Jades led to the current sense 
of jaded, but the noun derogation of 
mares also took off in another direcdon 

And all of us world-weary soph- — to put down human females. 

k-~- — InAMif »«!•■.* :*>- i:i._ r__i TV.L <^dr\ _ ic^n 

isticates know what it's like to feel 
jaded — senses dulled from too many 
self-indulgent experiences, satiated 
with sex, booze, lies and videotape. 

But the noun jade, in reference to a 
woman? Sounded Elizabethan to me; 
sure enough, there it is in Shakespeare: 
“Iknowhe’Djrovea/flde," Petnichio 
is told in ’ ‘The Taming of the Shrew.’ ’ 
In “City Gallant" (1614), by John 
Cooke, a woman is derogated with 
“She's good for nothing, then, no more 
than a jade.” 

Why this sense of worthlessness? 
The origin is the Icelandic jaida or 
Finnish alda, “a mare." Star ting with 
Chaucer in 1386, it became a con- 
temptible name for a horse, like those 
that later dragged themselves around 
Hackney (whence hack, as in hack 
journalist). Tired, overw'orked. 

The OED gives a 1560 description 
ofa wanton: “Sucha/oc/esbe is. and so 
curst a quean. She would out-scold the 
devil’s dame 1 ween." The slang 
word’s meaning degenerated into 
"wom-out prostitute,'* though it 
sometimes means the less pejorative 
“hussy" or “minx." 

In the synonymy of misogyny, har- 
lot is a professional, now called a sex 
Hvrker: a strumpet, a bimbo and a slur 
are “unchaste to the point of being 
debauched" ; a trollop and a slattern are 
“sloppy but not necessarily immoral": 
a wench is archaically “sexy without a 
judgment of promiscuity." and a jade 
is “plain worn out," whether irorn 
honest or oldest-professional labor. 

“All three TV stations out here," 
writes Pat Quinlan Frye of Santa Fe. 
New Mexico, “are using closure for 

school closings. We des- 
perately need your help. ’ ' 
In New York, Duncan 
Steck, formerly of Merri- 
am-Webster, writes about 
closure from another angle; 
“Have you ever done any- 
thing on that word as it per- 
tains to relatives coming to 
closure afrer the cruel 
deaths of loved ones?" 

Even oontradidonalisi 
U.S. senators, straining to 
keep up with the most n^- 
em lingo, are invoking clo- 
sure. what they mean is 
cloture, a French word that 
NniK A^rnmir has come to mean, in Eng- 
lish, “a motion to end debate." Some 
grammarians objected to the nse of a 
French word when an English one ex- 
ists. but cloture, in Was^gton, is a 
word that has gained a specific le- 
gislative meaning, getting a big play 
whenever a filibuster is undertaken. 
Let’s keep cloture. 

Closure is an act that brings about an 
ending. It offers a sense of complete- 
ness, a conclusion. The reason the 
word is heard so often dsese days, 
especially in the wake of disasters like 
the Oklahoma City bombing and the 
death sentence given to the perpetrator, 
is that the tenn is a favorite of psy- 
chologists and pseudoalienists. 

When you shut the doors, you have a 
closing. When you cut off debate, you 
achieve cloture. When you wrap up 
and tie a ribbon around an emotion, you 
have closure. Nowhere is it written that 
you are forbidden to use completion or 

Sev York Tmus Sen ice 


The Gender Wars in the Military 

By Linda Bird Francke. 304 pages. $25. 
Simon d: Schuster. 

Reviewed by 
Richard Bernstein 

N obody will accuse Linda Bird 
Francke of bad timing in ‘ ‘Ground 
Zero/ * her well-reported account of the 
sexual wars in the military. Francke, 
who has written books on abortion and 
divorce and has collaborated on several 
books by women involved in politics, is, 
as they say, on the news wim this new 

The main thread of her interesting 
narrative runs ihraugh the long and, so 
far. unsuccessful campaign to repeal the 
ban imposed by law against women’s 
serving as combat soldiers. But as 
Fnmcke deals alrag the way with such 
matters as sexual harassment and other 
forms of anti-female discrimination, she 
makes it clear that she is really writing 
about the ongoing culture wars in Amer- 
ica, of which the battle over women in 
the military is especially hard fought 
Francke makes no secret of where she 
stands on the battlefield. She calls her 
book “a narrative of the cultural and 
biological forces at work within the 
miluary culture diat divide the sexes, 
dictate women's harassment and de- 
mean their achievements." 

The disdainful and sometimes violent 
treatmeni of women shows, she writes. 

“the male attitudes ingr^ed in the 
military culture — tiie institutional pro- 
motion ckF male dominance, the aura of 
hypennasculinity, the collective male 
imperative to disparage w<xnen in gen- 
eral and speciffcally women in the mil- 

Francke gives some graphic evidence 
of this untraimneled sexism and, as she 
does so, ste makes an nnimorable case 
that women would be discriminaied 
against in ±e army, the navy and the air 
force even if it conld be that they 

peiformed certain tasks better than 

“Ground Zero," in short, is a tough- 
minded de^se of the proposition that 
women should enjoy the same equality 
of opportunity in the anned forces as 
they have sought in other areas of life. 
Francke treats the armed forces as 
though they were the same as any other 
major institution of American life, say, 
college sports or medical school, as- 
suming that die objections raised to 
women’s performing combat roles are 
nothing more than rationalizations for 
underlying prejudice. 

“Succes^l Women, Threatened 
Men" is the subtitle of her concluding 
chapter. “Women cleared for combat 
portions are on a collision course with 
the male need for masculine reassur- 
ance," she a^ues. But as the ultimate 
defender of tte nation against outside 
enemies, the army is a unique insti- 
tution, one whose ultimate purpose is 
not to be fair to its members but to kill 

enemy soldiers, as many of diem as 
possible, and that task inevitably in- 
volves getting kilted as well. 

Francke does not weave that essential 
fact into her argument. She assumes that 
realizing complete sexual equality re- 
quires no cost in military effectiveness, 
an assumption that requires a good deal 
more scrutiny than she gives it 
She further assumes, in the event of a 
major conflict with substantial casu- 
alties. that there is no moral or practical 
difference if women do substantial 
amounts of the killing and dying, elim- 
inating what has until now been an 
exdnsively male area of responsibility. 

T his has the effect of limiting 
Francke's persuasiveness for those 
' readers who may be uncertain that sexu- 
al equidity ought to extend to the task of 
slaughtering enemies, or. indeed, to 
malcing the ultimate sacrifice. 

F^dte argues from the exanqile of 
the Gulf War, during' which there were 
IS female dead of the total of 375 Amer- 
ican fatalities, that the public is ready to 
accept casualties among women. But 
what would the public's reaction — in- 
deed, what would Francke's reaction 
have been — if the American soldiers 
beaien, killed, mutilated and dragged 
through the streets in the failed inter- 
vention in Somalia had been women, 
perhaps or two of them pregnant? 

Richard Bernstein is on the staff of 
The New York Times. 



By Alan Truscon 

O NE women’s team has 
claimed the right to rep- 
resent the United States in the 
Wm-ld Championships in 
Tunisia in OctoW. Marinesa 
Letizia, Lisa Berkowitz. Jill 
Meyera, Randi Montin, Tobi 
Sotolow and Mildred Breed 
won the final of the Women 's 
iDtemational Team Trials. 
The losers were Pam Wines, 
Stasha Colten, Cheri Bjerl^ 
Sue Weinstein, Shawn Quinn 
and Judy Wadas. 

Id die diagramed deal fii>m 
the final, (^inn, Soutii, 
jun^ied to four hearts after hCT 
panner’spassed-hand cue-bid 
promised siqiport with game 
interest After a diamond lead 
site {dayed the jack from 

dummy and the queen won. 
East shifted to the sjxide king , 
and South took the ace, led a 

♦ 93 
<70 363 

♦ 107654 
0 ID 0 7 4 

« KQ82 
O — 

« A Q 10 4 

4 A J 
0 97 


Nortli and South 

were vuloeraMe. 

West North 



Pass Pass 

1 0 

1 0 

Pass 2 0 



Pass Pass 


West led tbe diamond six. 

heart to dummy's jack and di- 
gested the bad news. She then 
cashed the king and ace of 
clubs, reaching the position 
shown at right: 

South led a club and Mey- 
ers, West, ruffed with Ae heart 
nine. South ovemiffed with 
the queen, led a trump to the 
king and played herremaining 
club. If West had ruffed. 
South would have tiirown die 
spade from dummy and made 
her game. But West correctly 
discarded a diamond and 
dummy ruffed. 

Now there was no way 
back to the closed hand, A 
diamond was led from 
dummy, and East took the 
diamond ten and the spade 
queen before leading her last 
club to promote the heart ten 
as the setting trick. 

If South discards dummy’s 
roade when West ruffs in ±e 
diagramed position, it takes a 
trump return to defeat the con- 
tract. The defense, however, 
succeeds quite simply if West 
discards a' spade on the club 
instead of raffing. 


♦ 9 





t TTvoat-cleanng 
a Fencing 
10 Actress 

14 Exploding siar 

15 Singer Page 

is Fairy tales 
second word 
17 St Paul and 
ie Require 
ao Comedians Bob 
and Dins 
21 In a wise 
23 Lawyers 

24 'Gee'' 

2 S Sweatshirt pan. 

27 Flush beater 

32 Writer Bellow 
and others 

33 Place for a 

34 Not the swiftest 

35 Postenor 

36 "Death Be Not 
Proud* poet 

37 Opera star 

38 Dog breeder's 

38 Imply 

40 Doled lout) 

41 Leaders of hives 

43 Like some tea 

44 Praise 

Solution to Puzzle of June 27 

4 10 76 5 
0 10 9 7 
0 3 


0 — 

4 A 10 4 


4 J 

0 9 

45 Santa — 


46 Refuse to 

54 Quickly, in 

SB Southern crop, 
from an 
S7 Writer Grey 
SB Writer Zola 
so Humorist 
soGotagood look 

01 Saw sodaily 
82 Profound 


1 Pot starter 
' a Loud laugh 

3 Mora than 

4 Pan of a car's 
exhaust system 

a Malice 
• bghi bulb unit 
7 Elevator 

a Road mapabbr 
0 Liquefy 

10 Very 

11 Penang 

IS Chnstmas song 

isRaggady Ann's 

22 Tennis great 

24 Quick flashes Of 

as 17'Syllable poem- 
20 Precious metal 
unit of weight 

27 Paid, as a bill 

28 Arm bones 

2e Come together 
eo Backed up on 

31 'Holy cow'’ 
S2TheN.B A.'s 
26 Exposed as 

37 Poured vnne 
Into another 
40 Actor Sal 
42 Ran for one's 

4S Moved like a 
Shooting star 
40 Stun 

47 British 

48 Having a» one's 
marblea - 

4S Tizry 
so Leer at 

SI To be. in 





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44l 22 735 S320FtoC 441 22 738 2671 

Al\ AD 


Contact the fisris office; 

nuu (83-1)4143 93 TO' 

on Page 12 

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

PAGE 12 



171 420 0348 

. : ;•.*: ^ z±< r*^: ;:::•> : r ■•*> < •*< ..< -f • v\-y- ■'■ -t-; v'<. :* a*:£ .•.** Si. ..iaa • 7 . .• .■.v «*. .• •.•.■. . .•■•■ ■•■ ..■-■•.v.-.-.- . . . ....... . > .tr^ 


Teiecofiununication. IntezziatiCTiaiity. Change. Trends. Future.* This is part of the 
environment you need to really perform at your best Consequently you are on 
top of the list of our aetomer, the leading ^h-european provider of network 
and carrier services. Based at their european head oSa near Zurich/Switser- 
land you are most welcome as ^ ■ 


(Internatioxial. Telecommunications Projects) 

Your diallenge: Within defined prefects (Switched Seriices, Bandwidth Services, 
Internet Services, Value-Added S^’ices) you have the responsibility for all 
actions to be taken to finalise the implementation process. This includes; Busin- 
ess support for sales, identification of the accurate customer needs, feasibility 
and risk analyses (technical/financial, legal), cemtbet proposals, negotiation and 
coordination with internal and external partners involved... and most impor- 
tant: prime contact to the customer for process implementation. 

Your profile: Ideally you -have a universit}* degree (economical, technical or 
legal), 5-10 years senior experience in project management, excellent know- 
ledge of the current forces in die international and domestic telecom market, flu- 
ency in English plus in a local language and are willing to ^vel (approx. 20 - 
30*?o). You have a professionai and entrepreneurial attitude, work disciplined, 
structured, performance oriented and in true fasam-spiiiL 

A unique opportunity for }tou to join a t<^ enteiprise. Kindly submit your CV 
in English to the following address: 

B-CONSULTING group AG - ASYLSTRA55E 39 - 8030 ZORICH - TEL 1 268 1 1 11 



Head of the Morkering ond Commercial Operations Deportment 

Tlie ESC Troifes is a 
Graduate School 
of Management 

the Chamber of 
Commerce and 
Indttstry of Troyes 
and Aube 

Through an innovative pedagogical prommme, 
jughly qualified faculty and state-of-the-art facilities, 
Troyes has rapidly established itself as an impor- 
tant plawr in the world of the "Grandes Ecoles de 
Commaw" in France. 

To pursue our pedagogical development, we are now 
looking for a Professor of Marketing for a position of 
three or four days a week. 

You will have a Graduate Business School degree 
with a "Doctorat" or a PhD., or a Master's De^, 

combined with considerable profbsional experience. 
Reeardless of vour nationality, you will teach in 

Regardless of vour nationality, you will teach in 
French and En^h. 




If interested, please smtd your curriailum vitae 
and Itand-writteii letter q application to: 
Francis Becard, DiTecteiir - ESC TTOyies - 
217 AtYnue Pierre Brossofett^- BP 71()- • 
10002 TROYES Cedex - PRANCE 
FAX +33 (01325 71 22 52 

8 " 0 « ^ * F/r/tcfi CoNipuier Compatv /wjvrf in 
OPEN C/iWn' is lo^n^ for it ful’iime. 


and repraserdttn. Arwnon, Hfif 
pcnorebie. 20 yaars avetiancB in in I 
tianaacllons. managnmeni A nans, in 
US. Eiim and Mafei Easi. W9 lapre- 
Mnt your rtneta par pRuea V pem» 

Send htuid-wriiren tener with C. V d plhiio in . 
Groupe OPEN - Nathalie MREJEN 
202 de Clieby - 92110 CLICHY - PraDce 

neniy. HiHigun. Pea tti naNf 
NEW YOfK F^. 1-212-SS&OS 

H( Ron. 1-2i2-Sa»S4S 
FiiCD.- 1-2t^673«49 


fAh a conyBiy m n aquntic tnaneh 
n the U a Can oiler oaninatdM and 
Kenolic eduEailsn (2 dptonat] and 4 
[Ktolypes oi new ner fysMriB. 

Jorge Ljogi. DdhauMT Stiastt 163 
(Msan Emm T* «48(Q)2n$92S» 


Our company: An American Information & Consulting Kim in the 

Energy business located between Concorde & Madeleine - Currently 
20 Stan in the Paris offices but over 1 79 staff in the various worldwide 

20 staff in the Paris offices but over 1 79 staff in the various worldwide 
company offices. 

Young, informal & friendly environment yet hard working, varied 
activities offered for chmamic & flexible candidate. Woriring papers 
necessary. We seek a full-time Secretary / Word Processor for a CDI 
(oontrat a dur£e ind£termln£et Anglo-Saxon native speaker. 

BUDDHIST. 44. PsIKh. «H vanfled 
sdh iiav years agiaiencd b HI ladA 
iokbyng a tnianees negoduians. seeks 
cid^g & sttniairn engbynen n 
Perce Of atnad. Avaiuie ixw. CoiiBa 
NtcolBS: Tel ■^^3 (0)1 45 83 75 11 
Far ,33 10)1 59 83 12 54. 

Genera/ Posdfons WSnted 

performed before final candidate is selected. 90% of time: Assistance 
to marketing team - Filing, processing of dacas ipiospectt & client 
info / activities), preparation of billing advices & dient relations in 
coordination with the US offices. 

Please contact as soon as possible Michelfne Manoncouit. 
CMrector of Administration, Ibi: ftris -*■ 33 fOl I 42 44 10 2 1 for Interview. 

Bwfnw AUn aid PcNb RMHofts. 
• Mb|^ toilms ptortig hr pirate 

- Meoalknl pUc knega entanEenM 

Starts ! 
on Page 11 


EigiorisrcM In dvenifisd Prateoy ki 
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sncHjAtbaltrmilp. m Pendv 
lom Gst^ TM VI linei b m 
Vtalm E4 mI adthorGiah. 


Executive Positions Avtilsbk 

invoilM niirig eeinpaffy d MBchOtt 
aHbonaft «d geripml esRpuars 
Hbdng cortniiBd sales peope M 
tMtt jm^ » poipeaUb^ 
nd negoua will wM leaden In Be 
TM^ aid Onpiar nduesy. 
ypu tti to osmaoin M oDnpanr 
CM bisH h USA, Aik Jilin fran 
M aiB A >MpiV k) ths taal tnia& 
Yu IBM a BJCOisaM enalnce ki 
nin 19 wepiim in he kauMM ». 
Ybu n cDiwIncina ponadous. 
nanlpp. gneigato am ngoiDus. 
Yu ai IM tie kbel otaea fltt anBMis 

ibQla. US i QamiaiBi dhea b 
PMdk Spanish i Biehesi aiMa b 
looring hr Waewiwgrannb ki US or 
Eiiope. Fax ,4M37174377 

RETAHV 19545 jneu. «el adurabd ir 
Genian eriiepansw. Sand ehon C.v. t 
olBl) fi Bgk 3E9. IKT. PrleMelr. 19. 
MQ3S Ranliliiilltti, Garrnaiy. 

A Cyprian lasedhii^ laeiihyenwni 

fled hMuM h dsrato pv tans h 
Kg^iia. Ui« hm MBiain 

YPu «i fbd lb kM plan M naien 
ypv desm b aiqnoiB yo^ ki a 
' nfiidi b ^umg 
Eiouibnaiy pottBa 
m uaiy « ndfinilng Goi^^ 
hand CV nd al ^i eairtinerte b: 


Seete a cBtn n ird. S yam eiqierini 
of ‘mega' yadts and Eurapaen shp 
yards wtli innccabla ratarancM. 
ms -33(Di4 ffi121337 

FRENCH CAPTAili 42 yen pH. My I- 
cencad, 20 yeaie eDertaice laaka pb. 
Expedia Survey. RafU. Coitid: *33 
10)4 994SQ033/ni{He *S {0I8OSB727B1 


Bxeeaim Available 

wd. ai ya aqanm. cpeila Enjjfeh / 
Chinen. aeelQ peUm Ma. Replr. Box 
313. IHT., 3SS21. talV Ctb Ranee 

^■y .PfcpHlagMcoiiMelDr. duM 
taPwly FHiA 

n nif coiiay. TetfFax >33(())493121337 

cU. AMtratasea, expenerced in corn> 
nunnim 8 hunsn. nab Id ppsSpn 
orpemiisto tm. .33 (ok pjsj saw. 



SALARY ENTRY: $94,693 - MAX; $154,834 Annually 

Metropolitan Dade County. Florida is seeking a highly qualified individual to 
Seaooft operations at the uante B. Fascell Port of Miami, the 9th busiest containenred cargo 

Corporate and Transactional Paralegals 

County Manager. Metropolitan Dade County’s Chief Administrafive utnesr. 
Rasponsibilfties of the Seaport Director include fiscaf nianagemgrt of a S26.6 

Hie Company : Microsoft European Headquaitm^^ ip 
Riris UMense, is looking for two e^enced Paal^ 

The Positions : Canttact administratis for ■ 

businesses. Management tnojects suA as 

bases, form files, martcrfifc ere. Acting as a 

far various aoups within the Company . 

ments for meetings and presentatioi^. CociJaM^ ‘v ; 
comp lianc e programs for 16 countries 

operating budget and a S265 million multi-year capital improvement plan. Directs the 
activities of 200+ employees involved in oiversified administrative, operational, port 

engineering, marketing, development, and security functions. Management objecbyes will 
include cortinued development of the infr^tructure for cruise and cargo market expansion. 

enhancement of the port as a transhipment hub of Caribbean Central and South AmenM. 
overseeing the proposed Maritime Park expansion project, and development of ne*.v trade 

The rafiMAatas : A university degree or equivalent Ic^ 

cation being a plus. Minimum 2/3 ^“ears 

legal sector, pi&ably wi^ a good knowledg e 

English is required (En^ fs mothez tongue preferred) ^ 

fluency in another language is an advantage. . . . 

Lucrative executive benefits package plus car allowance wnl be part of the total 
compensation package. 

Graduation from an accredited college or unlversih'' with a Bachelor's degree. Ten years of 
executive lev^l experience m ^e fiscal and operational management & a maior seaport 
flirty is requved. A Masier's degree in Engineenng or Rnance is preferred. Must possess 
excellent oral and wntton communication snils. Applicants will be subject to an extensive 
background investigation. 

INmAL DATE OF JUNE ^ 1997 TO JULY 11, 1997. 

Please send your CV to Coralie de Naiteuil at Microsoft 

Europe, Tour Pacific, 5^2977 Paris La Drfense, 

Please do not send hand-written letters. 

Educational Position AvaTaUe 

Appficants must submit two (2) copies of their resume Indicating title of this position 
and two /21 copies of proof of educational attainment fcooies of official transcripts 

and/or diplomas conferring 
number on each resume. Sut 

laqreest. ADDllcants must include their social security 
littals must be sent via certified mail by July 1 1 , 1 897 to: 

RBA Inti supplies senior pei^ 
sonnel to ei^neerii^ compi- 
nies woiidng on intematicna] 

pnqecs. Our client requires the 

Ms. Maria M. Casellas 

Acting Director, Employee Relations Department 
Stephen P. Clark Center. Suite 2110 
111 N.W. 1st Street 
Miami, Florida 33128-1907 


Engineering M| 

Middle East • 

Employment requires meeting medical & physical standards & residence in Dade 
County w/in 6 months employment. “EQUAL OPPORTUNITY EMPLOYER M/F. WE DO 
NOT OfSOR/M/NATE ON THE BASIS OF DISABILiTY". Benefits include Heefth A Dental 
Insurance plans. 2 weeks vacation, 12 days sick leave annually. Tuition Refund. 
Retirement Plan, 13 paid Holidays, & much more. 

‘TTs a New Game* 

The Baan Institute Symposium 
Julv 8-11. 1997 fatten, 
iTte Netiterlands- 


Friday July 11th, 09:30 - 17:00 
"Entrance Free" 

To work on the conversion of a 
diermal power plant to com- 
bing cycle, you mast have: 

• 8 to iO veais* experience In 
Power l4anis. praeraNy in 
Combined cycle; 

■ A 5 year background in Simi- 
lar functions; 

• A Recognized Er^ineering 

• Familiarity with the MkkDe 
Eastern culture and willing- 
ness CO relocate durit^ Che 

RBA [ittemational 
.49^ W Sie-Cuhenne Si . # 23 1 
lUstnmou. Qiidjer. Canada 
H32 IT3 

Tel- 1514)481-6*88 

A racann Bass lor a latonr 
la laa^ nattenoMs a al lewis 
in the Final Honour Sctacls of Plysks 
ad Engneerin^ The Cota irista la 
awo^ wft (to post ojfes of » 
admmisbafiw nahie h tto Seiior 
. Cvpmon Room and Cota SHwta 
(kitig parts of the v acsBra aswalas 
Sling tans. The successM axfcan 
«d to tad 10 todsf (to OtoR Mfi 
awnings. The satoy is £11,000 pa. Sw 
oi AptNcata ki wiitina aiekisiig a 
M oiiicdum viae and me nsffie and 
addesses of lao'refaiBes, aiixfU to 
' sent ^ ISBi Jd/ b The Doimsh; 
Manager. 9 Cadwrne^ Cotogs, ' 
Rd esdom. 0X1 3U) 



That ttnoieefor atndUJIa. 

BBLMGUAL EXPERTS needed educat- 
ed i sepsispaed fl tata inarksis for 
(j^ihi-iine. salarled/lreelancs postions 
as iianstalors or edlots Fax luH 
lasiiTe'wiHy (etanenims to TECTRAD 
*33 (04144928310. Tel tS3 (Q)144S2S31I 

Are you ready to play the game? 

'Do you have die knoivied^ vou need to survive and lhrh*e in the worlds «7f business and infonnatkin 
tedmdogv'? 9 yuu'ie about ^3 einf^ on imr IT caieec the Baan Institule wants in be^ you play the game. 
The Baaii Institute is an opa\, dubal kntnvledge center with a nesv, relationship-based aptnoadi b educating IT 
people. People otveh-ed with me Institute share a common of becoming a BcxindmifipanneT? — a new 
breed of leader u^i adds stiat^c value by spannirie the disciplines of business and technok^'. 

naedel Wming papers raqiired. Po- 
sonal vehcls appracialed. Mminium 
teaching tirne guareneed. Send CV » 
TELBANGUE. 9 Meunce GiBnoniing. 
943X) toy aur Seme. Ref. June 

bteM of leader u^i adds stiat^c value by spanning the disciplines of business and technok^'. 

Come and 01 wt thecxupanies that o&r great career opportunities to Baan Institute graduates. Attend breakouts, 
panel sestions and keynote speaker VYiQ^ Ta^loc Founding Editor cf Fast Company magazine. 

For the entbe 3-day Symposium, the 9XX) reggstradon fee has been reduced to ^ for university studenb. 
f^mcnvinfonnation,and toregisliQ; p/eatotasit(nl^i\tos^(rhHp;/^'mlTi:^aatt-tns^ttutoOlm 

I Unfixtunatelv I am imabie to attend Che Baan Institute Career Fair. Please send me more in/onna- i 

Cion about the Baan Institute Career Opportunities. 

Name. — . 

I am junder) Graduate { ) .MBA I } Other. 

Address: - - — 

pmailr ' _ _ _ _ 

Please return toCeor&ina ftwken, Baan Institute, P.O. Box231.3S50AErutten.TheNetherlandLs. 
Tel.: -*-31 341 37 5567. Fax: +31 341 375361, e-maU:^roekenebaan.nL 


4 w rvTEKVilKfVii.^^ » a 

ttcralo ,^i^felC bnbttttc 

Contact the Rtris office: 

TeL: (33-1) 41 43 93 85 - Ru; (33-1) 41 43 93 70 

E-nmil: rfassifredlffihC-coni • 





Your M.B.A. in PARIS and die U.S- 

The best from Europe ond America 
for your graduate studies in fnternotional Management 

M.B.A. Unnersitr •* e ^odwota prae^am of MonepenM ervoled 
m 1980 by itw Franee-Ameneon Iralitute of MeneBomoM (I.F.A.M.) 
and devotoppod hi auociotian wHh loading U.S. Urmenities. 

Cours Libre d’Ensd^ement Superieur (Acadduie de Paris) 

A certificate course in the heart of Paris for an intensive academic 
and professional training ui: 


Omrs Chisittjw: tor French speaking students seelting a professional qualification 
Cyclv An vr an innovative progranuiic for chose with less chan litOHn French 

For further information i>»i lorig or short courses, please coiitaa: 

1 1 to Id iiicnib o of alwdy 
4 m Pont. Franco • 7 lo 12 in Iho W. 
Oetobor la Soptombor or Docotnbor 


• M.BA. lAteltor ^ BwrnoH AdmMMrafien| 
from A/^B ocsoditod A in o r ico n IMvoriitie*. 
a GrodwoM coil ifi c o to from MAA. Univonity. 


M.0.A Ifaiveriifr/IFAM. l9weC^r 75015 
Tel.: 01 42 73 26 53 — Fox: 01 47 33 I 

i Fans. 
31 72 


Hotel Salomon dv RocliSL'Iiild fCI) 

n. rue Derrivr. 75nu8 Paris Tel: C33I) 42 25 in *w.i Fxv: (3311 42 25 In yi 



r/ilen«//a ana aarv-intana/va 
OcDMi are Cw-oo* 


M.. ara Anvil* kOSniit 


iniUbRFranpoli RI4ro 

a Nw* J W< C* 

r.06<00 CANNES 
To) woanassa 

F«> 334 I S3 W to 37 





Floriria (USA), London (UK), 
Strasbourg and Paris (France), 
Heidelberg (Germany), Madrid (Spain), 
Leysin and Engelberg (Stvitzer^nd) 




Awoebne, Bachelor’s ft Master's degree programs 
Intemaiiooal Business Admlnlscradon. International Hotel 
& Tourism Management, imemaiional Relations Sc Dlplomacs*. 
Management, Marketing, Arc. Computer Studies, Economics. 
Pre^Englneerfng, Pre-Mcdidne. Liberal Arts 




Coflegtom Paladnum 
Intensive English. Spanish, Gexman 
& French language counes 

' Counes begin Jaauaiy. June and September, 

ITaie toi 

Inidda MAUVE 
Herald Tribune, 
181, a\'. ChaHcs-de-Gaollc, 
92321 NeuiUy Cvdex, 

Royal Waterloo House, Dept IHT/iS/97 
51-55 Waterloo Road, London SEl 81X England 
Td: (0171) 928 8484 Fax: (0171) 620 1226 

Accredited member .\CiCS, VaHhIngion. DC L'SA 

Since 1982. IFAM has been preparing its students for the 
MBA diploma in the US. IFAM offers a complete 
program in management taught in English with both an: 

□ Undergraduate Program 1 2 to 3 years in Paris » 

and a 

□ Dynamic broad-based MBA Program (4 months in Paris. 
7-12 months in the VSi. 

□ IFAM is closely associated with Northeastern University, 
Babson College in Boston. University of Su Dieeo. Pace 
University in New York... 

□ Some students have completed their MBA at the 
prestigious US universities Harvard, Wharton 

UaiverBi^*ofCTiicago,Duke,McGiil NYU 



Eiablissement d'enseignement sup^rleuf technique pri^ 
19 rue C:4pr6 - 75015 Paris - France. 

Tel: 01 47 34 38 23 « Fax: 01 47 83 31 72 


International Herald lyibune ads work 


and/or Pretessofial status 

Fax: 44 181 336 1697 
or Phone: 44181 9478924 


• Teeiita Summer ftograms 

IlnLS^ ' Couis C Clemeneeau. 
EaUr ”wwBotde#OT- France. 



0^ jl)x> 



to Busnsss Psqplu. 

Dynank. Fnemn teara 
Innovaive Teacton Methods. 
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Key Alliances Are Forged Across the Globe 

In order to prepare for an open market, Portugal Telecom is linking up with partners in Eumpe, the Americas and Africa. 

. V 

P ortugsl Telecom has fbi;ged a parbership with one the 
leading global telecommunications alliances. The 
move is the latest stage in the group's successful 
strategy ofbecoming more competitive in preparation for Ae 
- full liberalization of the European telecoms industry. 

Q After a year of negotiations and catefU deliberahtm, 
^ Portugal Telecom, Portugal's national telecommunications 
operator, to link up with Concert, ^e partnership 

bttwera Brteh Telecom and MCI, one of the three glt^ 
telecoms alliances; the others are Global One and Uru- 
V source. 

At the same time, Portugal Telecom has reached a pait- 
nership agreement wifti Telefonica, the Spanish telecoms 
operator, aimed at developing services in the Iberian pen- 
imula and Latin America. 

“Briti^ Telecom, MCI and Telefonica are probably the 
^ duee most successful telecoms operators in the world,** says 

Francisco Murteira Nabo, who is die president of Portu^ 
Telecom. “These partnerships will give our groig> privileged 
access to die capacities we need to become a world-class 

Portu^'s planning and public works minister, Joao Crav- 
ioho, says Portugal Telecom selected Concert as the best 

1-: ,\D 

..j.’-n II 

\ PAM i 

rR;ir;wC. . — 

• vur' •• 

. L ••• ii 

-..t- • 

* ? r.n • . • l| 
• v»» ' 

- ’ -I 

. *■ 

'"'i I 

■ . 4b ^ . t a -9 


' -2''\ 

>Msnb f%riBrre% lteprteiTMsrorftvfMga( 

partner for developing Portugarstelectvnmunications sector 
“in an environment of free enterprise and healthy com- 

BT and MCI — the second-largest long-distance opermor 
in die United States — are die companies that best com- 
plement Portugal Telecom’s international strategy, which is 
focused on Ladn America, Africa and Asia, says Mr. Mur- 
teira Nabo. 

In addition, Portugal Telecom and Telebrds, the Brazilian 
telecoms company, have launched a joint venture called the 
Alianca Atlantica, a partnership that aims to develop business 
in Portuguese-sp^ing countries and other markets. Joint 
investments are to include die Adantis telecommunications 
cable linking Europe, Aftica and South America, expected to 
cost 40-50 billion escudos (S230-S285 million). 


Portugal Telecom's new partnerships are aimed at devel- 
oping more international traffic, stuping up exchanges of 
technology and expertise, irr^)FOving service and furdWring 
expansion into new international m^ets. 

Mr. Murteira Nabo hi^ights die main objectives; 

• Benefiting from die experience and know-how of 

companies op^ting in 
highly compentive n^rkets 
diat can provide Portugal 
Telecom widi new products 
and advanced technology to 
expand its services and im- 
prove efficiency. 

• Ensuring Portugal Tele- 
com's overseas expansion 
throng alliances with part- 
ners that share common 
goals in terms of intemation- 
d investments. 

• Developing die com- 
pany's international traffic so 
diat it remains an important 
source of revemte after lib- 

• Providing access to a 
global network that will en- 
^le Pbrtii^ Telecom to of- 
fer its customers global ser- 
vices at competitive costs. 

Establishing a place for 
onyoflteiUlmJUBnfica Portugal Telecom in die 

pJCv: * 

H/* V»iL: 


global alliances that are re- 
sh^ing the telecommuni- 
cations industry is a further 
stepin Portugal'spreparation 
for liberalization, ai^ a de- 
cade of strong investment in 
modernizing infrastructure 
and the corrqiletion in 1 995 
of a sweeping lestrocturing 
ofthe indi^try. 

# In Febru^, the Euro- 
pean Commission agreed to a 
Portuguese government pro- 
posal to bring forward the 
complete liberalization of 
Portugal’s telecommunica- 
tions market to 2000, two 
years after most other EU 
countries and one year later 
than Spain. 

The European Union has 
granted varying periods of 
exemption from the January 
1998 deadline for foil lib- 
eralization of voice tele- 
phony and telecommunica- 
tions infrastructure to 
Portugal, Spain, Greece, Ire- 
land and Luxembourg. The 
extensions were granted in 
order to help countries widi 
tess-develoi^ systems 
catch up. 

Over die past decade. Portugal Telecom has extensively 
upgraded the quality and doubled the size of its network. As 
a result, Poitu^ has one of most technologicaJly developed 
telecommunications systems in Europe. 

A total of 80.4 percent of local area networks are digital, 
compared widi only 14 per cent in 1990. All the inter-city 
systems and almost all interoational lines have also been 
digitalized. Portu^ now has 39 telephone lines for every 
100 inhabitants, slightly above the European average when 
weighted by GDP pCT capita. 

Later this year or in early 1 998, a diinf tranche of Portugal 
Telecom is expected to be sold in a global offering, reducing 
the state holding from 51 perc e nt to 25 percent Portugal 
Telecom was created in June 1994 by the merger of three 
state-owned telecommunication operators. In 1995, Mar- 

Digrauzation Has Expanded Telephony Services; Data and Images Also Benefit FkoM Technology 

Portugal Telecom operates in all the main 
tele(»nimunicatk>n$.busiriess areas in Por- 
tugal, ^ngllirough group companies in the 
fo/lovv^ areas: 

• FixecHink telephones. 

• Leased lines. 

• Data Iransrtrission. 

• Vahi&acided sendees. 

• Mobile communications. 

• Cable TV. 

• Intemational business. 

The group has a dominant position in the 
PortugMeset^ecommunications marltet ac- 
counting for more than 95 percent -of total 
tisnover. Valu&added services have grown 
at a cbrisiderably tester rate than traditiortal 
services, which account for about 80 percent 
of total revenue. 

Portugal Telecom Is the sole operator in 
the market for fixedfink telephone services 
and telex. Basic telephone services are the 
group's main activity, accounting lor 75 per- 
cent of overall consolidated revenue. Of this, 
about 73 percent of consolidated income is 
made from domestic calls and 27 percent 
from intemational calls. ' 

The group is one of nM^bafloal 
the most advanced 
companies in Europe In' samees^c 

terms of the digltaliza-. — iM.,g r fteee- 

tion of its netwoik. The 

local switching netvwxk 

is 80.4 percent digital- awsumcoiii 

ized. The rate Is 100 

percentfor Interop llnKs pnaanimtaai 

arid ^ percent' for .In- 
ternational calls- This places Portugal Tete- 
com above the European average. Between 
1990 and 1996, the digitalization rate of the 
local network rose from 14 to 80.4 percent. 

A h@i level of digitalization offers several 
advanteges, Includlrig use of foe network for 
value^dded services in addltioii to voice 
cornrnunications, more sophisticated In- 

vddng arid price structures, lowK" repair ^ 

malntenmce costs and quicker identification 
of faults. ' 

The di^ization of the network has en- 
abled Portugal Telecom to offer additional 
services on the fixed-link telephone network 

that are helping to increase traffic. These 
include call rerouting, call waiting, threeway 
calling, detailed billing, call barring, voice 
man and lines that communicate to onty one 
predetermined nurrtoer. 

Partly as a result of increased c^tteliz- 
ation, Portu^ Telecom's quality of service 
has improved rapidly. This can be measured 
by the aver^ time It takes to install a new 
telephone, the average number of teuHs per 
100 lines, the percentage of faults repaired 
within 24 hours and the success rate in 
making international calls. The group has 
exceeded almost all Its own targets for these 
parameters and in some cases achieved in 
1995 the goals it had od^ally established 
for 1997. 

Portugat Telecom’s mobile communica- 
tions business includes holclings in Ttie- 
comunicacoes Mdveis Nadonais (TMN), its 
cellular phone subsidiary, and in two p^ng 
companies. Telemensagem and Contactel. 
TMN, wholly owned by PoitugalTelecom. has 
benefited from the spectacular growth in 
cellular phone use in Portugal and currently 
accounts for about 



firadMeMiMf dunber 

_ half the natfonaf mar- 

Dt^CabatfonAasfMlwtfdnreiop ^ 

Global Astern for 


HfiMgeemaffaad adopted soon after 

uiuemawvmrf"" launched ki Ger- 

iMHbef many, covers 98 per- 

cent of the coiirtiy. 

Teiepac, whotiy owned by Portugal Tele- 
com, is the bluest operator in the data 
transmission sector in Portugal. Teiepac is 
actively developing and marketing products 
and services that indude areas like Internet 
access and satellite communications. Teie- 
pac has access to most packet sivftohlng 
addresses in the world through agreements 
with intemational (^rators that provide sito- 
scribers with access to 143 networks in 68 

TV Cabo Portugal. Portugal Telecom's 
wholly owned cable television subsidiary, op- 
erates as a holdlngd^mpanyfornlne regional 

cable TV comrranles. The aim of this stnx> 
ture is to allow other investors, such as local 
oompaiies and munidpa) authorities, to ac- 
quire holdirigs in the regional operetors. TV 
Cabo actiiaved an intocxtant advance on the 
competition by being 
the first oompeny to 
build a • cable net- 
work. The advant- 
ages indude: 

• The ability to es- 
tablish its network before Its competitors. 

• Licenses in areas wtto a high popufation 
density and h@i individual income. 

• National coverege, which -helps in ne- 
gotiating deals with prc^am suppliers. 

By the turn of toe century. TV Cabo Por- 
tugal expects to haw a million clients and an 
annua! tisnover of dose to 36 billion es- 
cudos ($206 million), ft is expected to supply 
senfoe to 45 percent of all potential sub- 
serfoers by 2003. Portugal has one of the 
highest TV vtewir^ rates and the highest 
proportion of satellite TV dishes in Europe, 
clear evidence that viewers en}oy foreign 

Ail the ffvup's international calls are now 
handled by Marconi, fully ownedby Portugal 
Telecom, which is also responsible for satel- 
lite technology and underwater cables. Por- 
tugal Telecom International brir^ together 
ail the Roup's overseas operations and In- 
vestments, Marconi's traffic volume ac- 
counts for about 27 percent of the group’s 

In Concert 

Portugal Telecom's recent accords wfth Brit- 
ish Telecom, MO and Concert the global 
telecommunications alliance, and Telefonica 
of Spam are an important dimension of foe 
group's intemational strata. Another im- 
port^ parfo^ship is the Alianpa AUintica, a 
joint venture holding company behveen Por- 
tugal Telecom and Telebris, the Brazilian 
telecommunications operator. One of the 
venture's alrre is to make joint investments 
in telecoms companies m Africa and Latin 

Portugal's plshning and public works min- 

ister. Joao Cravlnho. says that Portugal’s 
contribution to Concert, an alliance led by 
British Telecom and MCI of the United 
States, includes toe business capatity to 
unite telecpmmunicatlons markets in Latin 
America, Africa and 

“British Telecom, 
MCI and Concert will 
benefit from Por- 
tugal's historic rela- 
tionships with these markets,'' says Mr. 

“Portugal Telecom in turn gains access ta 
an entity with unique experience in liberalized 
mEVkets as well as a strong partner for In- 
ternational expansion," concludes Mr. Crav- 

Island finks 

In 1995, Portugal Telecom acquired 40 per- 
cent of the Cape Verde Islands' national 
teiecommunications operator, undertaking 
to develop the West African country's na- 
tional telecommunications network. The de- 
velopment plan, which runs until the year 
2000, calisfor investments of $90 rniliion — 
induing the installation of 35,000 new lines 
^triplingthe current number. 

Cape Verde is considered to be an im- 
portant market in West Africa, and Portugal 
Telecom will r^in a 30 percent stake In this 
operator, and Alianpa AtiSrttica will hold the 
remaining ID percent Poitu^f Telecom is 
also already present in GulneaBissau, and 
Sao Tom6 and Prindpe, two other former 
Portuguese colonies in West Africa. In ad- 
dition, Portugal Telecom has a stake in Mo- 
bltef. a Brazilian pa^ng company tiiat is the 
inaiket leader in most Brazilian cities, and in 
CTM, the telecommunications operator in 

The ffoup's intemational investment 
strata^ is based on makirg the most of 
opportunities in markets where it has com- 
petitive advantages. These fedude Africa 
(espedaily Portuguese-speaking countries); 
Latin America, through Alianga AOdntica; and 
Southeast Asia, through the Portuguesead- 
ministered territory of Macao. 

president of Pcrftjgaf 
Telecom, says th^lhe 
new teteeommunieatfcins 
parSiensft^ wV dbt«fc|p 
further aqiansion into 
One ofthese partnerships 
is wflh Concert— a weff- 

coni, which handled mtercontinenlal calls, was brought into 
the group through a ^are swap airangement during the fnst 
phaw of pnvatizarion. A new ^mtpany, Portugal Teleconi 
Intemational, now brings together all the groiq>*s htter- 
natioral investments. 

The Portugal Telecom group also includes value-added 
business areas within the telecommunications sector, in- 
cluding TMN, a mobile pbnte operator with a share of about 
half of the Portuguese market; Teiepac, a data transmission 
company: and Tv Cabo, Portugal’s cable TV operator. 

In 1995, Portugal Telecom was granted a 30-year con- 
cession for the basic telephone service in Portu^, com- 
prising fixedrline services, telex, telegraphy and leased cir- 
cuits. The group p^ an annual foe to foe Portuguese state 
amounting to 1 percent of operating revenues basic 
telephony services. 

The fond phase of privatization will cement Portugal 
Telecom's intemational alliances with Concert and Tele- 
fonica. The Spanish operator is to acquire 3.S percent of 
Portugal Telecom in foe offrnng. BT wiU buy 1 peicott and 
MCI 0.5 percrat The Portuguese group’s steke m-foe 
privatized Spanish operator will be 1 percent 

Tlte Alianga Atlantica mi^ involve a share sv^ between 
Telebras and Portugal Telecom when foe Brazilian operator 
is privatized. Telebr^ will directly and indirBctly no\d 1 
percent of Portugal Telecom’s ctq>i^ 

Portugal Telecom has set aade 2.5 percent of its capital, 
which could be used in that event, says Mr. Murteira Nabo: 
“Cementing these intemational alliances forough cross- 
holdings of shares underscores foe strong mu^ com- 
mitment of all foe partners and ensures more efficient 

Good figures 

The partnerships have been forged against a bacicground of 
strong profit growth, improvements in efficiency and tech- 
noiogukl moderoizatton for Portugal Telecom. The group 
reported a 51 .5 percent increase in net consolidated profit in 
1996, to 54.9 billion escudos, up from 3625 billion escudos 
in 1995. 

The increase was substantially above analysts’ forecasts. 
Financial costs fell 20 percent to 26.5 billion escudos, as a 
result oflower interest i^es^ and foere was a 2 1 .9 percent foil 
in net debt to 188.4 bilUort escudos. Portugal Telecom is to 
pay a 1996 dividend of 138 escudos a stere, up from 91 
escudos in 1 995. Earnings per share rose from 1 9 1 es^os in 
199^ to 289 escudos. 

Analysts say an mcrea/se in operating profit from 129.1 
billion escudos in 1995 to 142.8 billion escudos last year 
reflected foe success of foe groiqt's efforts to control costs, 
increase efficiency and reduce its workforce. The number of 
employees fell Ity 867 in 1996, to 19,374. G^mting costs 
rose from 325.8 billion escudos to 362.5 billion. 

Value-added services — including mobile telephones, 
data transmission and cable television — accounted for 1 1 .4 
percent of total revenue last year, up from 8.3 percent the 
previous year. Revenue from Portugal Telecom's mobile 
telephone company, TMN, increased 65.6 percent, to 35.8 
billion escudos. 

“Against this background of growth and modernization, 
the new intemational alliances Portugal Telecom has scaled 
provide foe group with a unique opportunity to make a 
qualitative leap fonvard and meet the challenges of the 2 1 st 
centuty,” says Mr. Murteira Nabo. 

“PoRTi<GAL Update: Part V“ 

Has produced in ifs e/i///cYr h}' the Adxvrtising Dcfiartincnf 
of i/hf Internationa/ llcru/d Trihunc. 

It Yos qtotuored by Ptvnigal Tclctmi. 

Writer: Keii Ptutingcr. HilslhI in /ivhiw;. 
Program Director: Bill Malukr. 

**f- . . 

ta-. *'«. 

e -• _ » ‘ •.^' 

. ••: :: 

'Tt' !\Trji\inuvM.ei» •< 

Hcralo ^-i^ fcnbunc 


MONDAY, JOVE 30, 1997 

Mercedes Tries ^All-New^ Plant in Alabama 

: '' : 5 

By Warren Brown 

Vhishiii'jitin Pi'.M iVn iic 


bama — Ii’s the son of challenge that 
sensible auto e\ecuiives usuallv tr>* to 
av'oid: assembling an aii-new product 
at an aJUne\\' $300 million plant usioe 
all-new processes. Even the company. 
Mercedes-Benz United Slates Intema- 
tional Inc., is all-new. Four years ago it 
didn't exist. 

The workers certainly are new>. 
Many of them, pulled from the foot- 
hills and valleys of northern Alabama, 
hod never woiiced in un auto assembly 
plant, had never worked in anv kind of 
a factory, until now. Many of the 
bosses are new. too, brought in from 
Mercedes-Benz's parent company, 
OaimJer-Benz AG in Stuttgart, or 
culled from the rank.s of automakers in 
E)eiroii and Japan. 

There’s a new role for the plant’s 65 
suppliers, w'ho are supposed to pro\'ide 
more than pans. They design, develop, 
engineer, manufacture and supply en- 
tire automotive systems, such as the 
driver's compartment, which com- 
prises the steering wheel, instrument 
panel and transmission gearbox. And 
they must get these systems to the plant 
“jusi-in-sequence,” meaning that they 
must arrive at a precise monfient. for a 
precise vehicle, as it reaches a precise 
point on the assembly line. 

All this would be dauniii^ enough if 
the product in question were an or- 
dinary econo-car. But this mix of vet- 
erans and novices is supposed to pro- 
duce a Mercedes-Benz, a vehicle from a 
company with a 1 1 0-year reputation for 
making the worid's besr automobiles. 

It’s no ordinary Mercedes-Benz, 
either. It's a s{^*utility model, the M- 
Class All-Activity Vehicle, scheduled 
to go on sale this fall. Priced from 
S35.000 to $40,000, *e M- 
Class is designed to steal 
sales from the likes ^ ff / 
Chrysler Corp.'s Jeep Grand (f J\ 
Cherokee. General -Motors U 
Coip. 's Oldsmobile Bravado, 

Toyota Motor Corp.’s Land 
Cruiser and Land Rover's 
Range Rover off-road vehicles. 

' 'They are doing what no other auto- 
maker wants to do,” said James Har- 
bour. chairman and founder of Har- 
bour <& Associates, an auto 
manufacturing consulting firm 
headquartered in Troy, Mchigan. 
“That tern), 'all-new.' is something 
car companies like to use in their ad- 
vertisements. But it's not something 
they actually like to live with. 'AU- 
new’ usually means headaches, prob- 
lems, lots of problems.” 

The man responsible for making it 
all work is Andreas Reoschler, a Stutt- 
gan native and president of the Mer- 
cedes-Benz subsidiary. But he said the 

newness of the workers, product and 
plant are pan of a deliberate effon to 
break with bis company’s pasL 
‘‘This is something mat die old 
Daimler-Benz would not have done,” 
Mr. Renschler told workers at a Com- 
paq gathering here. 

Ine “old Daimler-Benz” was much 
like America's ”old General Motors 
Corp.” Both companies had become 
victims of their success: both were 
__ shaken to their roots dK 
Japanese. The problem ft» 
i ^ M^edes-Benz was not 

L M product quali^. "It was 
jj price.” said Michael Basser- 
mann, chairman of Mercedcs- 
Benz of North America. 

'“People have always 
that Mercedes-Benz is the best car. But 
we needed customers to say. ‘Mer- 
cedes-Benz is the best car fcM* me/ ” 
Mr. Bassermann said. To get buyera to 
say that, " We had to better identify our 
customers' needs and wants and re- 
spond to them quickly, with exciting 
new kinds of vehicles” built and sold 
at compediive prices. 

That realization led to the construc- 
tion of the Tuscaloosa plant and the 
assembly of the M-Class sport-utiUiy 
vehicle 'in the United States. Mr. 
Bassermamt said. 

"Seventy percent of all of the sptm- 
utili^ vehicles sold in the world are so!d 
in this country,” he said. “So. it makes 

perfect sense for us to build oae here.” 

But do something all-new in an all- 
new factory? 

"When we started taUdng about diis 
in the early 1990s. we didn’t know if it 
could be dione/* Mr. Renschler said. "I 
said. ‘OJC.. it’s possible. We’ll see.’ " 

But how do yoD guarantee Mercedes- 
Benz quality with ao all-new approach? 
How, in other words, do you create 
systems that will allow inexperienced 
Alabamans to work like Getmans? 

"Very slowly,” said William 
Taylor, vice president of production 
for Mercedes^ U.S. subsidiary. 

Mr. Taylor is a Canadian with man- 
ufacturing experience ai Ford Motor 
Co, and Toyota. He said the keys to 
quality control at the Tuscaloosa plant 
are training, suppliers, patience and 
strict adherence to something called 
"standard methods and practices,” or 
SMP for short. 

At frrst glance, SMP looks brutally 
rigid. ' ‘Team members” follow ste^ 
by-step processes laid out in manuus 
for everything from installing drive 
train assemblies to where to place tools 
in the work space. 

A visitor joked that the process 
evoked the worst German stereotypes: 
"You vUJ put it here. Yon vill listen 
the bolt, just so,” he said. But Mr. 
TayltM- said the American ‘ ‘team mem- 
bers” actually wrote the SMP manuals 

One Sure Bet Remains in Hong Kong: Its Dollar 

By Velisarios Kattoulas 

Inurnumfiul HerjIJ Trihuit 

HONG KONG — As Hong Kong 
prepares to return to Chinese sover- 
eignty' Tuesday, fewer question marks 
hang over the stability of its cunency 
than oN'er any other aspect of life on this 
thriving temiory. 

Concerns- are mounting over the fate 
of Hong Kong's Judiciaiy. opposition 
parties and press at the end of 1 56 years 
of British colonial rule despite Chinese 
avovt^s eo give Hong Kong freedom in 
all areas except those encroaching on 
national security. 

But at the Hong Kong Monetary Au- 
thority. the central bank, there does not 
appear to be any anxiety. 

”1 wish v/e could be as certain about 
the other components of the Hong Kong 
system — the legal system, die civfl 
service, the low level of taxation and 
regulation— T as we are in the short-term 
stability of t^ dollar.” said Miron 

Mushkat. chief economist at Lehman 
Brothers in Hong Kong. 

For one thing. Beijing has repeatedly 
sald that it supports having the Hong 
Kong dollar pegged to the U.S. dollar. 

Dai Xianglcmg, the head of China's 
central bank, was quoted Sunday as 
saying be supported the link between 
the U.S. and Hong Kong dollar, which 
trades at a fixed exchange rare of 7.8 to 
the U.S. currency. 

"The central bank sup^rts the idea 
of its being pegged to the U.S. dollar.” 
the People's Daily, the Communist 
Party newspaper, quoted him as say- 

Albert Chan of the Hong Kong Mon- 
etary Authority said business execu- 
tives strongly racked the peg because it 
shielded trace and investments from 
sharp currency swings. 

The bulk of Hong Kong's 6.3 million 
people also support the link because it 
protected the value of their savings from 
falling, he said. 

Large foreign e.xcbange reserves and 
the srnali quantity of Hong Kong dollars 
in circulation alw make it hard fcM* cur- 
rency speculators to bet against it 

The currencies of countries have 
dropped sharply in value in the past 
because local people lacked confldei^ 
in them and rushed to convert their 
savings into U.S. dollan. But Hong 
Kong has seen no such rush leading up 
to its return to China. 

But if need be. the Hong Kong Mon- 
etary Authority could enlist the help of 
other .Asian central banks to protect the 
Hong Kong doUar against currency 
speculation. Under an agreemeni signed 
in 1 994. nine Asian central banks agreed 
to joint intervention in currency markets 
to repel speculative attacks. 

In Beijing on Sunday, Mr. Dai. gov- 
ernor of the People's Bank of China, also 
repeated earlier pledges not to use Hong 
Kong's huge foreign exchange reserves 
of more than $60 billion when it retunu 
to Chinese rule at midnight Monday. 

Those reserves, which represent six 
rimes the value of Hong Kong dollars in 
circulation, could be used to buy Hong 
Kong dollars to protect its value in the 
event currency traders tried m under- 
mine it by selling it aggressively. 

The Hong Kong dollar has been 
linked to the U.S. dollars since 1984. 
The year before, when Beijing and Lon- 
don were negotiating the terms of Hong 
Kong's return to Chinese sovereignty, 
the U.S. dollar rose sharply, to more than 
9 Hong Kong dollars from about 6. 

Since its introduction, the peg has 
weathered the 1989 bloody crackdown 
on pro-democracy activists near 
Tiananmen Square and the death of 
Deng Xiaoping this year. 

iU has come under attack from cur- 
rency speculators only once, following 
the Mexican peso cruis in 1994. The 
Hong Kong Monetary Authority de- 
fused tiiat crisis by doubling short-term 
interest rates, raising them to 1 2 percent 
in a week. 

Former Dai-lchi Chief 
Kills Self Amid Scandal 

Questioning on Loans Provoked Suicide 


TOKYO — A fornier chai/man of 
Dai-lchi Kangyo Bank Ltd., who was 
questioned Friday and Saturday in con- 
nection with allegations that the bank 
made illegal loans to gangsters, hanged 
himself Sunday, a bank spokesman 

The former official. Kuniji Miyazaki, 
died at a hospital nine hours afrer family 
members round him unconscious, 
hanging f ro m bookshelves in his bed- 
room. the spokesman and news reports 

Mr. Miyazaki’s death follows alle- 
gations that Dai-lchi Kangyo and 
Nomura Securities Co., Japan's largest 
brokerage, have links to organized 

Mr. Miyazaki was questioned along 
with Tadashi Okuda, another fonuer 
chairman of Dai-lchi Kang>'o, about 
loans worth S250 million — much of it 
uncollectible — to an admitted rack- 
eteer. Ryuichi Koike. 

Proseentors from the Tokyo District 
office had been planning to question Mr. 
Miyazaki again Sunday. 

'The police said that they had found 
several suicide notes to .Mr. Miyazaki’s 
family and to officials of Dai-lchi 

The bank spokesman declined to 
comment on the reports. 

The Kyodo news agency reported 
that a note to the president of the bank. 
Katsuyuki Sugita. declared: ”1 will ac- 
complish my responsibilitv with my 

On Friday, as Mr. Miyazaki was be- 
ing questioned by prosecutors, share- 
holders assailed Dai-Ichi Kai^yo. Ja- 
pan’s fourth-largest commerci^ bank, 
and Nomura over charges that their top 
executives paid 11.8 billion yen (S104 
million) in hush money to Mr. Koike. In 
Japan, both extortion and company pay- 
offs to racketeers are illegal. 

The tough questioning of Dai-lchi 
Kangyo arid Nomura came on a day 
when 2.355 companies started their an- 
nual sh^holders' meetings at exactly 
the same time — 10 A.M. — to prevent 
them from being disrupted by gangsters 
known as sokaiya. 

The prosecutors filed formal charges 
Thursday against four curreoi and 
former officials of Dai-lchi Kangyo. but 
Mr. Miyazaki was not charged. 

Mr. Koike also was charged with 
taking Ae money, disguised as loans 
backed with collateral, despite knowing 
ihar the payments were illegal. 

Prosecutors say Mr. Koike used some 

of the money from Dai-lchi Kangyo to 
buy 300,000 shares in Nomura, which 
made him a major shareholder with 
enough power to extort money from the 

Nomura is being investigated by 
prosecutors on criminal charges that the 
company paid more than S400.000 to 
Mr. koike to remain silent in 1995 when 
Nomura reinstated to the board the pres- 
ident and chairman who had earlier 
resigned in disgrace. lAP. Bloomberg i 

Taking the 
Long View 

C-mfHh'Jtn Our Ait 

FRANKFURT — The president of 
the Bundesbank, Hans Tietmeyer, said 
Sunday that he hoped Germany could 
meet tite 3 percent deficit gosd for a 
single European currency this year, but 
that sustainable budgetary discipline 
was more imponam. 

The centr^ bank president also in- 
dicate dial he was comfortable with 
current low inflation levels and saw no 
reason to change monetary policies. 

“TTie 3 percent is an important ref- 
erence number, there is no doubt of 
thau” Mr. Tietmeyer said in a radio 
interview. "But more important than 
one-time fulfrllment. or barely under- 
shooting or overshooting this number, is 
the question of whether countries' pub- 
lic finances " are in a condition that 
"can be viewed as sustainable.” 

A national deficit amounting to no 
more than 3 percent of gross domestic 
product is one of several criteria in the 
Maastricht treaty that prospective par- 
ticipants must meet in 1997 to adopt the 
currency when it is to be launched in 
1999. But key European Union mem- 
bers are having difficulty meeting the 
targets. France said last week that its 

dencii would probably exceed 3 percent 
of its output tms year, and Germany is 
struggling to meet the target. 

But a key ally of Chancellor Helmut 

See EURO, Page 18 

, Smut Ruling Backs Internet Founders 

By Rajiv Chandrasekaran 
and Elizabeth Corcoran 

tiushuigtm PeM Seri ttv 

WASfflNGTON — When Defense 
DepaitirantTesearchers wired together a 
$elofuaivers!tycomputers3i years ago, 
creating a communications network that 
became today’s global Internet, the goal 
wasn’t to make something that could 
deliver photos from a service called “Bi- 
anca’s Smut Shack.” 

But technology has a way of spawning 
uses oeverunagined. 

Afrer fierce debate in Congress and in 
American sociefy. the Supreme Court 
has made its frrst pronouncement about 
what is allowed on foe Internet and other 
computer' ra-line services. It struck 
down Friday as unconstitutional the 
Cofzimu/iications Decency Act. a federal 
law that impo^ criminal penalties on 
people offering "indecent” material to 
children on foe information medium that 
is now. ured. by millions. 

The decisioii upholds the network’s 
anything-gote tradition. From its earliest 
days, foose.who built it-saw it as a new 
frontier of ideas, one in which they could 
explore new' thoughts and theories on a 
strong base of individual and academic 
freedom, without fear oS censorship 
from Washington. 

The Defense Department enforced no 
ruin for what could be sent over the 

network. Rather, it generally left it to 
users to govern themselves. 

Today, foe Internet community is far 
bigger and more diverse than foe group 
t^t used the computer network to share 
science and engineering information 
three decades ago. These days, one can 
End fouith-graders, sky divers, histor- 
ians. politicians, astrologers and pora 
lovers on the network, all pursuing their 
various passions. 

Internet users hailed the court’s de- 
cision — that the law was too broad and 
would restrict legitimate expression — 
as confiiTnation that First Amendraem 
ri^ts extend into foe electronic realm 
known as cyberspace. 

“It is political coming of ^e for foe 
Imemet." said Man; Andreessen, a co- 
founder of foe Internet software company 
Netscape Commniucations Coip. "It 
demonstrates that foe Internet is becom- 
ing a very important thing in people’s 
lives and it can’t be controlled or be made 
to frt our preconceptions of it” 

The Internet had its roots in a 1960s 
ftatu conununicatioos network for aca- 
demic researchers and military contract- 
ors fun^ by foe Defense Department’s 
Advanced Research Projects Agency. 

In its early days, it was a fairly small 
com munit y, r ecJls Danny HiUis, a Walt 
Disney Co. fellow who used it at the 
Mas^husess Institute of Technology. 

"I still have my Arpanet directory. 

which was a half-inch thick,” Mr. HiUis 
said. Die directory included foe narnes 
ck everyone using the networks, he said, 
mosi of whom £iew one another per- 

Although foe aoverrunent h^ some 

guidelines for on-line behavior, foe early 
mtemet community generally policed 
itself, recalled Roben Kahn, dir- 

ected creation of the network for foe 
Defense Depakene. 

“Commercial aenvuies were ca”- 
tainly frowned on," he said. ' 'as was the 
use of foe Net for personal gain.” 

In foe 1970s, Mr. HiUis recalkd, a 
group of wine lovers began sending 
automatic messages to one another 
about their hobby — but stopped when 
other users let them know it was not 
considered suitable material. 

"Flaming,” or senfong sl»iply 
worded messages, was a common form 
of self-govemtnenr. said Dm Berners 
Lee, head of the Boston-lMsed World 
Wide Web Consortium. 

Government control was not entirely 
out of foe picture, however. There was 
"the (Ustant threat of the removal of foe 
funding because foe powers that be 
didn't tqipFove of foe activi^,” he said. 

In many new infonnation fonnats, sex 
has proven to be a powerful stimulant 
expansion. Not long afrer the first cam- 

See INTERNET, Page 18 


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lECU 1l» UBI« uatSl.91W Z2ie «6M. I iXI 12.971 TiW 

I SDR 1219 ftBMS 2M U1B UOTJ 17» • UBI 1S72i 1.9» aW* 


TV) tty aw t/oBoc "ObHs of UXt fiLO; not vnM NA-- la* 


Other Dollar Vtilues 

Cmciqf R«r s CmKy 
Argmt.pesp UMBs Greektfnic 
AiHtraUcmS ' 1230 HongKangS 
AosfrtunKtl. IMS Hw) 9 <tMRlt 
Eradnol iDTSa IndtanmM* 
CMnese vwn . Ban >ado< rapiBb 
CzKhkoniM 3iii irbb£ 
DonMikiaiit 6S92 Icnwasiek. 

Egypt, prami 33952 Kuw Snor 
nA.flMrtM 5.WS Mday.ilng- 

After Study, Renault Affirms 
It Will Oose Plant in Belgium 

PARIS — Rmaulr SA has decided to override protests 
by Belgium and go ahead with its plan to close a car plant 
in VUvoorde. Belgium. 

Louis Schweitzer, foe company’s chief executive, and 
the French carmaker’s boa^ announced foe decision 
foUowing a meeting Saturday. 

The Incision was based 'on foe fmdings of an in- 
dependent study on foe shutdown. Dtat study h^ been 
commission^ by the French govemment. Renault's 
minority owner, in an effon to make the company review 
the closing. 

Analysts said foe shntdown, in addition to saving the 
company money and putting it back on track toward 





PliiLpew ‘ 










TriunS . 




Forward Rates 

CumMl 30.pnv 40"dBf • PMW 

Cmaey .. <Mqr 

PoundMnttig ,^655 1.6638 li62S ^ S !!S 

canodtaRMar -ijtpo IJTW U738 SunssfraBC i-®® 

DeatschpMrk 1.7275 I.72M Ul9e 

lice’s Socialist-led government, thou^ elected on 
pled^ to preserve and create jobs, and stand up for 
workers'’ ri^ts, would not hamper conxrrate overhauls, 
even if job Tosses ensued. 

A spokeswoman for Prime Minister Lionel Jospin of 
Fr^ce the government had no cotnmem on foe 

” We regret veay much that there has been false hope in 
foe last few we^,” said Jean-Paul Verbeke or foe 
Belgian ACV labor union. “The French govemment has 
overestimated itself with its ambition to make Renault 
chaztge its mind.” 

^Igian trade uninusts were dismayed by foe decision. 


5ICAV (in liquidation) 

2 , boulevard RoyaL 


NOTICE IS HEREBY GIVEN UibI an Exlraordinan- Cvnerol 
Mcrtiiw of SharvhDiders of CT D£L'TSCHL\ND Fl’XD (tiip 

^Fuad'7 hHI bv hHd at thr oRIm.of Banquv (nlcrnauimaip b 
L uxrmbnurv. Socieie .Anonymp. 69, route d'£»rh. L-I-I70 
l^ixembourg. on July 8. 1997 'u 9 a.m. to i-onsider ihe report of 
the liquidator, and if thought fit to pa»» the following 


1. To approve dig report of the BqnSdafaw^ 

2. To appoint the auditors to the llqoldatiou in 
aceoroauce with Article ISI of the law on 
eommerclal eoaspaulesf 

S. To fix Jnly 8. 1997 at 4t00 p.m. as date for a 
ftirtber 9iareboldcT*s Meetliig to decide oa the 
close of Bqirfdadon. 

Shareboiders are infonDcd (hat at this Meeting no rfunrum i» 
required for the holding: of the meeting and the rioririon will be 
passed by a simple majority of the ahareholder$ present in 
person or by proxy and voting 

Holdcnr of bearer shares who wiah to attend the meeting should 
depobil their share certifieaiefs) witii Banijue iniernauonale a 
Luxembourz, 69. route d'Etfch. I. - 1470 Luxembourg by no 
later than 5:30 pjn. (Luxembourg time) on July 7. 1997. 

The Liquidator. 

So c iete Anonyme 

Rngisfered OfRco: 2, Boulevard Royal, 
L-2953 Luxembourg 

Sbireholdm we bneby' coovened to the 


of fhweholdere of onr eorapany which teill lake place at the 
offices of Baoepje Internationale k Luxembourg 69, route 
tTl^h, L-1470 Ltnembotirg, on July II, 1997 at I2HM) for 
foe purpose of considering and voong npon the following 

1. Submission of the Reports of the Board of 
Directors and of the .Auditor; 

2. .-Vpproval of the Statement of Met .Assets and of 
the Statement of Operatioafor the year ended as 
at March 31, 1997; Allocation of the net results; 

3. Discharge to the Directors; 

4. Stihitory Appointments; 

5. .Miscellaneous. 

The shareholders are advised that no quorum is required 
for the items of the agenda of the .Annual Cenvnil Meeting 
and that decisions wiD be taken at the majori^ of the rotes 
expessed by the sharefaoldeTS present or represented at (hr 

In order to attend the meeting the owners of bearer shares 
bare to deposit their shares Eve clear days before the 
meeting at the offices of Banque Inte’rnationalv I 
Luxembourg, 69. route tTEsch, L-1470 Luxembourg. 



SICAV (in liquidation) 

2, boulevard Royal, 
R.G Loxonbouri;; B-2S0S3 

\0TICL IS HEREB^ GIVEN that jn Extraordinsn Urnr-rul 
Mfptinff of Sliareholiler- of iT DKITSCHLWI) Kl'ND (ihi- 
"Kund'y will be held at the oFf1rr» of Banque Interndlibnali* k 
Luxembourg. Sorieic* Anonyme. 69. route d'K-eh. L-M70 
Luxembourg, on July 8. 1997 at 4 p.m. to rnasirier the repun »f 
the Mudilor lo ihe liquidation appoinled at Ihe pre\iuu.<i maviin^. 
and if thuiighl fit In pa$< llie following nsululion^: 


1. To anprove tbe report of the andilor lo the 
liqnJilatioik appointed at tbe prexlons Meeting; 

2. To give flischarge (o the Licfoidator, Andhors to 
the IlqnldadoB and Directors who had been In 

S. To elose the liqnidation and dlstribote the 
remaining net assets in cash; 

4, To keep die records ofGT DEXTSCULA.'VD Fl'.XD 
for a term of five years at the offices ofBanqae 
Internationale a Liucenibonrg. 

Sharebolder» are informed that at thb Meeting, no quuruni ii> 
required for iJu* holding of the meeting and the HeriMon will |>e 
passed by a •imple majority of the shareholders preirnt (i^ 
person or liy proxy and xotJng. 

HnlHerK of beurer "shurefc who wish lo allenrl the meeting, should 
deposit their share eiTlifleate wiiih Bunqtie Iniernmiiinale a 
Luxembourg. 69. route H'Eseh. I. ■ I47ll Luxemhuiirg hy no 
later than 3^30 p.m. (Luxembourg time] on JuK 7. I'^7. 

The Uqnidalor. 



Registered Office: 2, Boulevard Royal, 
L‘2953 Luxembourg 

Shareholders are hereby convened lo the 


of sliareholdrrs of oar company which will take place at the 
offices of Banque Internationale a Luxembourg, 69, route 
d'Esclu L-1470 Laxembourg, on July 11, 1997 ai ISdio p-m 
for (he purpose nf considering and voting upon the 
follow'ing agenda: 

1. Submission of the Reports of the Board nf 
' Dirrclorfi and of ibr .Aaditon 

2. .Approval of (he Statement of Net .Assets and of 
the Statement of Operalioiifor the vear ended as 
at March 31, 1997; Allocation of (he net results; 

3. Discharge lo the EKreetors; 

4. Statutory .Appointments; 

5. MiBCeIlBneou& 

The tihareholders are advised that no quorum » required 
for (he items nf the agenda of the .Annual CeneniJ Meeting 
and (hat dec'isions will be taken at the m^ority of the votes 
expessed b)’ the shareholders present or represented at foe 

In order lo attend foe meeting the owners of bearer shares 
have to deposit their shares frre clear davs before the 
meeting at the ofnees of Banque Internationale a 
Luxembourg, 69. route iTEscIl, L-14<0 Luxemluiurg. 




Rate Hike? Analysts Say Fed Will Stick to ‘Watchful-Waiting’ Stance 


By MitcheU Martin 

tnrenkiiiimal HeraU Tribune 

NEW YORK — America's central 
bankers are expected to re&ain from 
..pushing up interest rates at the two-day 
r policy-setdng meeting set to begin 
: Tues^y, although many analysts say 
'the U.S. economy is growing too 
; guickly for inilaiion to remain at bay 
- indennitely. 

; Late last month, on the eve of the 
‘.previous Federal Open Market Com- 
mittee meeting. Wall Street opinion was 
' divided about whether the Federal Re- 
serve Board's policy-making arm 
.'would move to slow economic growth 
• by increasing bonowing costs. 

Factors argning for an increase in- 
cluded an unemptoyment rate that had 
' f^^len to a 23-year low and an economy 
' growing at about 3 percentage points 
‘above the 25 percent rate generally 

considered consistent with noninfla- 
tionary growth. On top of Chat, Alan 
GrMnspan, the Fed chairman, bad hint- 
ed for months that the central bank 
would raise rates if die condidoi^ ex- 
isted that could provoke serious infla- 
tion — whether or not it had yet become 
apparent in consnmer prices — wd the 
policymakers bad voted at dieir pre- 
vious meeting to push interest costs up, 
a tightftning move that had been seen as 
the first of a series. 

But the countervailing arguments 
prev^ed: Prices were not lismg and 
i^adon-adjusted interest rates were 
therefore already high. 

Now, the unenq>loyineni rate is even 
lower, just 4.8 percent, and first-qaarter 
ecoaomic gnn^ has been revised up- 
ward, to S.9 percent. But the feeling on 
Wall Street is that a rate move is un- 
likely this week, although many ana- 
lysts say they expect the Fed to resume 

tightening its monetary policy this year, 
mth the absence of “on L^ndonary 
sraoldiig gun," Salomon Brodiers 

Treasury bonds and swap them for ^old 
the dollar conctnuea to depreciate 
against the yen, which makes it in- 

Inc.’s analysis wrote in a weekend ad- creasmgly difficoltfbrJwanesecompa 
visoiy, ‘^licymakers now have the nies to $eU their wares abroad. 

Immry of continuing — for the time 
being — their watct^-s^ting 


Bond investors seemed to be tafciog 
tins view at the end of last week. The 
yie^ on the 30-year Treasury bond, the 
credit-market benchmaik, ended at ti.74 
percent, down.from 6.75 percent Thurs- 
day. A week earlier, howe^^, ihe long 
bond was renxnung just 6.^ percent, 
reflecting a rise in prices since the pce^ 
vious Fra meeting. 

The bond and even more the 

stock market, were rattled last week by 
coimnentsfirtm Prune MinisterRyutaro 
Hashimoti), who was (raot^ by news 
agencies as Indicating max Japanese in- 
vestors might sell thra vast holdbgs of 

Most Active International Bends 

' ‘nie250iTK>slactiveintemation£Jbondstraded 
through the Euredear system for the week end- 
ing June 27. PitosssuppSetfbyTelefcuis. 

Rnk Nome 

Cpn Maturity Pdct YitM 

Argentine Peso 

. i96AitientirKiFRN sari o«dw toe.6000 

Australian Dollar 

* 186 Australia 

6« n/l&U6 98.97S0 6JB20Q 

Austrian Schilling 

tsi Austria 

54% 07/1 &Q7 99.6500 5.6600 

Briti^ Pound 

laOFHLB 06/Q77 Sz 98.6250 6.9700 

137 Fannie Mae 6tv (MV7/tQ 98.7500 6.9600 

20»Hy6er 9Vt 0W19/16 1114% 8J100 

2ZI lAOB 6M 96/tam 6ABOQ 

25DEIB 74% 12/07/06 lOISTSQ 7.4800 

Canadian Dollar 

)41 CofWltt 4 03/15/99 99.5456 iitZOO 

243Canodo 7U 0MIA17 108.1800 6.70M 

24aCanado 7 09/01/01 107.1169 6.5300 

Danish Krone 

7 0enmork 


03/1006 1124800 


' ISOenraork 


11/15/07 1055000 


27 DenmorK 


11/15A1 11X1800 


32 Denmark 




36 Denmark 


05/15/03 11X8500 




11710/24 99.1000 


44 Denmark 


12/15/04 107.0000 


46 Denmork 


13/10199 104.1800 




11/154)0 1138600 


63 Denmark 


11/154)2 UUJ700 


92 Denmark 


03/15/98 1018700 


103 Denmark 


08/15/97 1004100 


109 Real Kredit 


10/01/26 918000 


112 Denmark 


02/15/99 10X2800 




10/01/29 968500 







132 Denmark 


O2/1SA0 99.7500 


Rnk Nome 

80 Germany 

82 Germany 

83 Germany 

84 Germany 

95 Germany 

96 Germany 

102 Germany 
107 Germany 
HI Germany 
121 Germany 
139 Germany 
172 Germany 
mWesMeut LB 
191 Germany 
T94 Germany 
197 Cap Credit Card 
201 Germony 
21 2 Germany 
223 Germany PRN 
231 MltsuUshi nn 

Qin Molarlly Prtoe YM Ridi Name 

Cpn Moturtty Price YuU 

SU 0M1AH 103J3CC SM7O0- 
610 0V15AM 106.7300 6.0900, 
7 01/1W 107.7650 6J0W 
01/02/99 104.4700 62200 
31% 12/1S/9S 100.2000 3.4900 
6V 07/ISilM 100.8333 6JO0O 
6U 0304/04 106.0750 Si 
6Hn l^n/98 104J800 
7V% 12/2402110.7600 
8U 07/21/97 100.3000 
6 06^6 97MM 
6U 06/21/99 10641900 
0S28f99 104.0800 
6Vk OMSm 1028109 
5% 02/22991034)900 
5W 09/24/9810X7600 

5 12/17/98 1Q2JS00 48900 

6 02/2V98 101.7550 5.9000 

7 11/2W107J100 &S100 
1327 0491/02 99J531 3.2300 

6ti 02/24/99 105.4200 65200 
6M 102.1300 6.0000 

546 08/24/98 10X7400 55000 
7 120:^97 101.8000 68800 
5 12/1404 98.1500 58900 

7U 1M1/02 111JOOO 65100 
514 142498 102.4400 5.1200 
5%fe 0a/)54n 1035077 5U300 
6^ 04249810X7540 68000 
6U 020498101.9100 6.1300 
6tt 07/2498 1035100 65100 
7U Q2/2i/» 109J300 78600 
2871 043404 99.1508 X9000 
zero 0416/97 998985 X1400 
SU 0M497 1008500 58300 


239 Exim Bk Japon 



040403 773 X99O0 

07/2^ 10X7500 X8000 

Portuguese Escudo 

laOBcolfieimFRN zero 12/2408 110U 

142 BCO Inv Im FRN zera 0427/11 1118500 

Spanish Peseta 

101 Spain 64 04/1400 1048070 68700 

ISBSpdn 780 02/28/02 10980X) 7.1900 

232Spoln 785 03/31/071078^0 68500 

Wall Street tumbled Monday, al- 
though it recovered much of hs losses 
the next after other Japanese of- 
ficials said Mr. Hashimoto bad been 

whether be meant it not, according 
to C^titia Lana, an ecrmomist wi& 
DR!^cGraw Hill in Lexingmn, Mas- 
sachusetts, J^»nese investors are un- 
likely to engage in a wholesale un- 
loading of th^ S291 billiOQ of 
Treasuries, which accounts ^ about 8 
percent of the securities outstanding. 

"Neither the Japanese government 
nor tile nation's private Investois would, 
benefit from sodden and massive dump- 
ing of doUar-denominated financial as- 
sets,'* Ms. Lana wrote. * The process of 
selling would push prices down, caus- 
ing considerable loss, poshly in com- 
parisoo witi) poztih^ ^ces and cer- 
tainly relative to what nughi be realized 
on gradual and 

"Once the assets had been sold, the 
former investors would hold dollars that 
would have to be exchanged for yen or 
some other currency, pushing up tiie 
prices of those currencies. So losses 

on tire asset sales would be compounded 
by losses in tiie cunency xnarkets." 

After all tiiat, Ms. lAtta'added, the 
money would have to be reinvested, and 

it would he haid to fiirf ^r^diough flie extent of temis; 

paring vrifli *ose ui a ^aremenl is a subject of d(^ h 

Japanese l(Vyfrbod^o£footU^ ^ah the economy- can atp^only 

2.60 percent yielth^IMre^^ |s fast as the sum of podncnv|t and 

perc^toncam^b e t S^m^ 


putungtoftodsinanassetflialdoesnot for bond pices- . _ 
i pt erest payments and wh^ price 
is under pressure from antt-mnaticn 
policies in many countries. 

By the end of the week, investors 
seemed to have put the issue behind 
focusing Instead on the outlook 
for the Fed to keep short-ienn rates 
st^e. As did many oiho' analysts, Ms. 
iditta predicted the U.S. economy bad 
slowed considorably in the seoc^ 
quarter. She predicted .the expansion 
would pick up steam again over the 
summer, "firing that consumer confi- 
dence, as measured by tiie Conference 
Board, was at a 28-yrar hig^ 

At Salomon, the analysts said 
there were mflationaiy pressnres visible 
in the labor market, "where there is 
virtually no question tiiat lesoorces are 
sttetcheri to the limit and costs have 
begun a gradual ascent.” Unle^ the 
demand for l^xir rapidly diminishes, 

"the ninnb in compensation will push 
wen beyond gains m prodnetiviQ/.” 

American productivity is widely 
drought to be growing foster than the 

SmiA Barney Iuc.*s economic 
said that although the U.S. econony » 
expanding at a r^id rate, it sia^ m 
ehar n coniiast to all of tiie othei^ 
dusmalized countries, which 
crating wll below their napecii^ ca-- 
nacities** and are likely to do so atle^ 
STthe resi of the year. This, they said, 
helps keep "inflationary pr^ures .at 
bay by fostering inwnse global com- 
petition for maikM share." 

■ Japan Bonds Expected to ' 

Analysts predicted ftiat J^iaaere 
bond prices would probably ^ 
week on expectations that mdustnal 

production keeping the Bankrf 

Japan from raising interest races, 

Btoombeig reported from Toky^ 

Industrial production, which giw 
3.8 percent in May from April, is fo^ 
cast to foil Z6 percent in June, flic 
Ministry of Intemationd Tfode ^ 
dustry said Friday. Ministry t ^c ia l s 
attributed the decUne to a buildup of 

r r 

Swedish Krone 

195 Sweden 1036 
06 Sweden 
229 Sweden 

11 01^1/99 109.1600 1X0800 
1014 (U/Q4M 11X0630 9.0700 
51% 04/1X02 988403 S5600 
9 04O4U9 1178M0 7.6400 

1014 05/U/03 1202960 85200 

New International Bond Issues 

U.S. Dollar 

Dutch Quilder 

Deutsche Merit 

IGemKutY 6 0I/D407 10X7600 58400 

2Gemiony 6U 04X406 1045725 5.9800 

SGemnny 6 07/04/07 1025500 58600 

4 Germany 3U 03/19M 1005100 X7300 

SGermany 41i 11/2401 1018020 489M 

6Gemanr 3 01.G7<«2 1I389S0 7.0200 

8 Germany 5 0420ini 10X5167 48800 

10BumlaaWlgaKan4i4 02i3Z«2 1008433 45000 
11 Germany S QS/21/D1 10X7900 48600 

12Gennany 8 07/22/02 1138383 7.0500 

■ 73 Germany 3tt 05/12415 1078524 64000 

16 Germany 31% 06/1499 99.9700 35000 

17Germony 731% 01/0403 11280 65700 

18 Germony 6<% 1414SU 1068200 61100 

19 Germany 6l% 01/04/24 978033 64200 

20 Germany 6 02/1606 109.9767 58300 

22 Germany 9 10/20^10 1148633 78400 

.23Treuhond 72% 1X113^)21118800 65900 

24Gennany 6 OI/Q5A6 10X9867 58300 

25Treunond 71% 0409/04 11X9600 68400 

29GemKPiy 8U OBGOiOl 114.1625 78300 

SOGermony 09/1 S<99 1066400 63300 

nTieulMnd 07, VI/99 1055932 60400 

34Gennany 8% 0420tQni61950 75300 

SSGermony 8<% 02/2IM1 1161300 76S00 

38TreuDond 6^ 06^1/03 1095400 68800 

39 Germany 84% 0421/01 1163800 78200 

42Treuhond 61i 0Sf13AU 1085840 62100 

iSTreuhond 7U 1401/02 1135233 68300 

45 Germony 6U 04/22A13 109.0200 61900 

48 Germony 8V 05/22M 113 7.7400 

SOGermany 7V% 11/11/04 1U0567 66300 

51 TreuhQnd 64% 07/09/03 1088600 61200 

52Germany 81% 12/204M 114.9600 7.7200 

53 Germony 61% 07/15/03 1078000 60400 

55 Germony 86* 07/2000 11X45 7.7100 

56Gemrany 5Vl 11/21/00 103.1900 4.9700 

58 Germany 3M 09/18/98 1008375 34900 

59TreuhQnd 6 11/12A» 1069933 67100 

60TreutlQnd 7V% 01/294)3 110.7450 64300 

61 Germony 6 OSnSfOS 1054760 55900 

62Treuhand 6U 07/29/99 1058400 5.9300 

64 Germany 5U 08/22/00 1058300 54700 

66Germimy 9 01/22AI1 11 55900 78900 

68 TreuhQnd 51* 04/29/99 10X9800 55300 

73B0yVereInsbk 41% 06/24/02 995000 65300 

73Treuhand S 01/14/99 10X3800 48800 

74 Germany 6» 05/2099 1045294 58500 

76 TreuhQnd 6Vi 04/23/03 1078500 68300 

77GennQny 5Vt OS/TS/00 T05870Q 55800 

78 Germony 81% OB/2VDO 11X9600 75200 

26 Nethertonds 
37 Netherlande 

119 Netherlands 

120 Netherlands 
135 Netherlands 
143 Netherlands 

160 Netherlands 

161 Nethertonds 
W Netherlands 
211 Nathertonds 
21 6 Netherlands 
218 Ne/herlonds 
238 NetherloiMls 

6U 07/15/9810X8300 60800 
5M 03/19071015000 S5700 
8V% 091901 1148500 74500 
9 01/1901 115U 75100 

7 09l«99 1055000 66400 
SU 01/1904 1035500 55500 
6(% 04/1903 10880N 60200 
7V% 0919991078000 78000 
71% 01/I5« 1166000 65400 
54« 09/19021045000 55000 
61% 07/19981038200 63100 
7V% (U/1^0 1158000 65000 
a%< 09/1901 1168100 75300 
7 091905 11045 68400 

8U 0S/D1/DQ 1125000 7.7700 
au 06/15/02 1155500 7.1300 
61k 10/01/981038800 65000 
8U 02/15/00 1105500 74600 
6U 02/1999 104.9200 64300 
7W KW1/04 11X1500 64600 


97 France OAT 
123FroncB BTAN 
134 France OAT 
153 Britain T-blllS 
157 France OAT 
208 France OAT 
237 Italy 
233 France OAT 
236 France OAT 
244 Britain 

an 090902 1118300 74700 
6 09255)4 1(05000 55400 

5 0916/99 1014200 4.9300 

5V% 04^7 965700 55900 
zero 12/11/97 961972 4.0300 
7V» 092905 11180 67400 

91% 02/21/01 1161500 78600 
9*% 04/ZMKM111000 84000 

6 04/02A4 1015750 68900 

BVi 040922117.7975 78000 
10 02^1 1171% 85100 

8 Q1/Z7/98 10X0500 78400 

OBraACop S.L 
14 Argcfitlna par L 
21 Argentina FRN 
28 Brazil 
31 Argentina 
41 Meidco 
57 Brozn per Zl 
65 Venezuela por A 
69 BoyerlsCie LB 
TOVenesMla FRN 
7] Brad 56 FRN 
75 Brazil FRN 
81 Brazil SX FRN 
85 Bed Com Ell. 
87Sul9arid FRN 
91 SdiruMoe 
93 Mexico pw A 
99 Eeuddorpor 
113 Lloyds Bank 
U5 Bulgaria FRN 
122 Ecuador FRN 
124 Argentina FRN 
129AigefltbM FRN 
140 Fin Don Ind Fm 

144 Brttfsh Gas Ifitl 

145 Bonkers Trust 
147 Italy 

150 Bulgaria 
155 Venezuela parB 
164ltofy FRN 

41% 04/15/14 
5V% 03/31/23 
6U <a/2V0S 
101% 091927 
114% 01/3CVI7 
t1V% 05/15/26 
69k 04/1906 
514 04/15/34 
6U 0931^ 

79k O^MAI 100.1500 
66% 092S/D7 99.6900 
6U 12/1907 
64k 04^912 
61% 01/D1A1 
«/t 04/15/24 
714 02AQ/04 
6Vh 07/2911 
614 12/31/19 




tofy FRN 

8S44S0 58700 
698B13 75800 
91.1497 74100 


1144k 108500 
914303 75200 
654014 88300 
79J2S0 84800 
938300 78600 
82.7213 888M 
966625 65900 
844688 8.1400 
935000 77500 
7X6563 9.0300 
77.9688 S820D 
0^9021004123 65500 
0902/99 9662S0 45600 
12/31/19 77.9688 88200 
02/2925 4X6850 78000 
01/1907 1065625 98700 
01/1907 1055750 98300 
6567 12/31/19 938813 78600 
6 0916/98 995800 6.0100 
6%W 07/28/14 748938 85600 
5.959 06/11/04 995900 5.9700 
3Vk 02/28/15 674731 45000 
09/Q1/02 1178000 845900 
2«D 12/31/19 948409 0.0000 
69k 03^1/23 865438 7.9200 
644 0A/21/D2 100.^ 6.7100 
116109/1916 11m 1X0300 

6U 091901 1008500 6.7300 
zero 11/04/21 16U 77400 

zero 07/KV97 997921 11900 

6»h m/r/m 94.7500 inooo 

2U 07/28/12 55.1875 4.0600 
9W 11/27/01 1004250 9.1900 
6U 03/31/20 797SO0 84600 
6875 0916/9S 994336 X1100 

Compiled by Lourence Desvileltes 











Ptootins Rote Notes 

Bank of Western /kustreito 





Ovre^moRta Lteer. NocKoRobta Fere 020% Worson Sfturiir Ml) 


SI 50 





Over^flwrA Uber. Reoltered ot998X Noncoltabta. Fere XS0%. (CS Rnt BoslotO 

Hong Kong SAR Residential 






Onrl-ffionihlJbor.AMiagi llta 247 yean. Fere 089%. (HSBC MorkebJ 







Irdwretwin be taeXreDrith Ubor. Noneollobie. Fees X175%.OenomlnaHoreSia00X(UBSJ 

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Orera-monta Ltaor. Nencollabta Fere X17S%. Denonlnaltorrs lOOOOO rmtfes. (Letrrmn 

Den norske Bonk 






Over3«rDirth Ubre Nencdoblek Feee.X20%. nJBX) 

Rnance tar People No 1 





Mi«twlirbeX13ot«rXinonttiLlboreiim2n3,1lreiwRerD45 over. Avenge Be 48 yean. 
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poyOig.XriP Nicn T.71 FnsX 15% (Deotedw Margot GranteH.) 

Credit itEguipement des 
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Betow34no>ilh Ubw. Nonaloble. Fere X15%. (Credit Cemnaidd de FranceJ 

Benetton (Sroup 






Over 3-mMlb Uber. Reoftered rri par. Nomtlobta Free 089%. (IMI BonkJ 

KNP Leykran Grattcom 






Ovir12-(naiittiVBrer.NDMBlBbta.Ferenotdtectased.DertaminaNom1 millien ■dtSIngt. 
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2000 6'A 101.10 — Raoffimdor995S.NMiaiiabta.FetsmikL(YQmeitfdiin) 



2000 open open ~ senwwnuni^. NDncaBDMrL ftas 040kL Dcn en ilnaWei s siOflOX (Bankee Tmsl Inti J 

Bonco Nadonal deComerdo 


2002 8 10080 — SenAmiDlly.NcKKallDble;.FHKa375%.(BaiilDMTiistliil1J 

Boyerfsche Londesbonk 


2000 5VI 968605 — ReefhRdat9X87344ainilabte.ftcs1M1L(CBiBnKfzba)0 

BGB Finance [Ireland) 


1999 6W 100576 — ReDRBndotn576LNoacBltablB.Fees1MlkL(BaitiayBiieZoetoWedd} 



1999 6W 100.955 — RN(feiBdat99.1»5.NDncaaoblB.F«c*1)Mk.RtalWnDnSad«lntt) 

5.719 09I2AQ 995100 &7300 BNG 


2001 31% 9a925 — RMrftaRdoiepjzxNonaiiiiUfcFmlMnL.n^ 

Finnish Markka 

168 Brazil C2KindS.L 4M 
173 PNippInes Rx 8U 
175AOB 6U 

1 76 British TWeeam 6U 
ITBDeirlsctKBkRn 6H 
179Arge^na FRN 

04/15/14 918B82 4.9300 
1(M7/1< 1018000 84600 
09I1AI71O0JOO0 X7200 
042902 10)4067 6u6400 
0924AU 10042SO 6.7100 
5495 04/01/01 12X9000 44U0 
6U 0923A4 99.8750 6.7600 



1999 4H 9B512 -> lteoffmdm9781XNoncUlable.F^1VkkL(CDiiimeiZlNnk.> 



2001 99.852 — Nonaltabl&Pats08254L(DeutKheMon)nnGi%nfclU 

184 Finland Serials 

01/15/99 11046S6 9.9400 
04/18^161088154 X6800 

French Franc 

188 France OAT 
206 Prance OAT 
245 Prance OAT 

71% 040905 114 68ai0 

6U 1W2904 1098700 X1800 
8k% 0925/97 99.7500 88200 

Irish Punt 

213 Ireland 

8 OV1906 

110 78700 

Italian Lira 

149ltaly 6U 0901A2 1008900 68100 

247 Deutsche Bk Rn zera 01/2IV33 71% 7.9400 

Japanese Yen 

54 STB Cayman 
86TTB Rn 
162W(Vld Bonk 
174Eklm BkJapon 
182 Italy 

080 104)1/07 113U 04400 

0.75 12/31/99 1178342 X6400 
41% 06/20/00 109.1250 4.1200 
4%k 10/01/03 1121* X9000 

3« 06WQ5 1078000 34900 
440 05O7A4 998000 44400 

181BraznS.LFRN 6«1t 04/1909 874975 7.9300 
mCanmenbkFm 5.727 01/29/01 998800 5.7500 
187Polandpar 3 KV27/24 5X1250 S.1600 
190Canada 6U 0^2X06 1008000 X7200 

192 Fst CMC FRN XB84 0V11A)4 99.ti00 5.9000 
193VenezueloFRN V6 0V18/07 9X3750 78300 
INMond Inter 4 10/27/14 868000 48200 
200 Santander FRN X775 12/31/99 99.7S00 6J900 
203 Italy Rnist. 5 06/28/01 1028500 45900 
304PdlandMN 6Wu 1«27/24 ^8500 7.0600 
OOSftledcoDFRN 6^ 12/2VI9 9X1272 78200 
307WMdSk 588 09/27/99 99.0000 5.7400 
214Brazil 84k 11/0901 10X2500 X6000 

215Pemex 9 0«01A7 101.12S) X900Q 

217CdlseeDes|ordinszera 97/16/77 99.7W3 S8600 
230Nlgeile 61* 11/15/20 6X6563 9.1000 

323RhaInHyp0ltiek 6f» 06nXta7 1008500 6S600 
224A/IOIICOCFRN 652 12/31/19 9X1932 78200 
225EcuodorFRN 69i» (KV280S 738750 X7700 
228Araennm 8U 05/09/02 100.1418 8.7400 
230S9>landWPRN 5.781 09/24/99 995969 5.7900 
234TMCC 7 06015)7 1018195 6 l8900 

235EIB 71% 0VIX4)6 1025179 6.9300 

237Gold Sachs FRN 6Ve 06/02/04 998900 65700 
240EdF 6«k 06/24/02 1004726 68900 

241 Assoc N Amer 6tt 10/31/01 99.8750 6.7600 
246WorldBank 65% 0S/21/M 10X1^ 68300 

General /lAotors Acc^tanoe SSOO 


Jamoica $200 

2002 6U 101865 — ReafleradWW89.NencoUable.FeeKlieL(HSBCMaifee(sJ 



2002 9h 99.7B6 — S«miannuflly.NerKaaaUe.FRs057r)LC8ankeisTnatlnt1J 

1«W”''SS~!0U5^‘‘'''^^ RBeffinBdm99.97.Nonaito6ie.FMlR«.<5BCnfMui9J 

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2000 6V% 101.1315 — ReoffHvd el 99.944. NetKDlaUe. Fees 1Wb.(NUdDEimp6} 





2000 6Wi 101803 — ReefleitdetW.9a.NonciileUe.Feee1l%%.(UBS3 

PTC Inti Hrwnce 

$2538 2007 zero 59841 » 

Interest wll be ZBD until 200X when Itsve b oMeble ot 105H Ihenofler 1 semlonniM8y> 

Private ptBO w nent Fees 1 5645%. ISotemen Brattws liilll 

RgpoPunk Nedoriond 


2001 6 100845 — Re0fferedta99.)XNMC9ltaMa>Fecs1ta%.{UBSJ 

Seen Roebuck Acceptance 


2007 7 99837 — SenSamuoky.NenCDlobte. Fees 049%. (GeMmon Sachs Inll} 

Wortd Bank 


1999 6 100855 — Rea fl Wed ot 9955S. NoncolluWe. Fees 1 Wl%. [Peulsdie Merpon GrenteX) 

Credit Local tfe France 

D/M300 2001 4M I0I87B — Reefiered of 99553. NonaritoMe. Fees X1S%.(SecMeGeiMnrieJ 



2003 5 9982 — NsncoltoWe. Fees 0875%. [Lehman Bialhers Inti) 

Lend Sodisen-Anholt 

DMIrOOO 2007 5M 99466 — NDimHabte. Fees 0829%. (CommerztonlO 

World Bonk 


1999 7 100.71 — Reeffered el 9981. NemlleMK. Pees itMLCNWieEumpeJ 

Europeon Investment Bonk FFXOOO 2009 5U 101888 — 

Reo tl ered 0199438. Neneolleble. Issee may be redenomlnoted in euios oDer EMU. Fees 2%. 
(Coisse des Depots et Consignoflons) 

Merrill Lynch X Co. 

PFI800 2009 6V% 9941 — NoncoUoble.IssuelDbendinoinlneledineanBonerEMU.Fee$040%.(MerrnLyiichlnlU 

The Week Ahead s World Economic Calendar, June 30-July 4 

Asctie^leafdiisweek'seconomlBanrHlnandalevents. eemiaedtorlheintermtionalt^mtdrnbiinebyaoomteigBuiemiNems. 


FF1,700 2007 5M 99846 — NoncsHobl«.FeesiWtd'HdoeeX(IBJJ 


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EuropeanlnvestmentBonk 1T1_1,25(U)0D 2007 9 100.01 — 

This Week 


Tokyo: Alberto Fujimori, president 
of Peru, 'visits Japsui to meet with 
Prime Minister Ryutaro Hashimoto 
to discuss the hostage-taking at the 
Japanese ambassador's residence 
in Lima. Wednesday-Monday. 


Naples: Telecom iraiia holds a sem- 
inar on information communication 
technology. Thursday-Saturday. 


Wa^inglon: Federal Reserve's 
Federal Open Market Committee 
hokJe meeting to set interest rate 
poRcy. Tuesday-Wednesday. 

Intorestwfll bu9% wiffi 1999, lh«icoAer5M%. Reoffered 019X335. NoncdRoMo. Issu* moyb* 
redenominated in euros oHor EMU. Pets 2%. (Boiko Nadonola rfol Lovoraj 


ITL800800 2006 83% 101475 — Reoneiudarpar.Nonconobte.FaesT%v%.(ChaseManhoitanliilt) 

Conodo Zero 2009 


2009 zero 46U — 

DemMon Bonk.) 


AP500 2002 8U 99849 SemtamuWly.NoiKdtoble. Fees 0JS%.(Oeutedie Morgan GrenteX) 

Fedoraf Notional /Uortgoge 

AU8$14X)0 2002 6W 99.643 — Noncoaiible.Feeea25%.(SBCWkirbiRgJ 

Eurapeon Bonk tar 
Reconstruefion qfkI 

SAR1800 2017 zero 880 ~ 

YleM 1345%. Reoftered ot XQ5. NerteoDoble. Fungible wllh outetondbig Isio^ loistog total (oee 
omeunt 10 &5 bBlon roiKL Fees X40%. (Morgan Staidey Inti) 


Hong Kong: Transfer of sovereign- 
ty from Britain to China. 

Tokyo: Japan releases figures on 

Copenhagen: Denmark releases 

Lima: Peru releases inflati(xi fig- 
ures for June. 

Washington: U.S. reports personal 

Rabobank Nedertond 





— YteM 1288%. Reoftered of 285. Noneollnb4e.ProcMri8 62 mWhm rand. Fore 085%. fTbrante- 

Dominion Bonk.) 


Stwdlsli Export CradD 





— Yield 128/%. WoBCBUeble.Praeeeds3i iwiBtoniBiiitt^fl.>!W^ 

housing starts. 

Paris: France releases May unem- 
ployment figures. 

Rome: Italy releases first-quarter 
gross domestic product numbers. 

income and spending and new 
home sales for May. 

World Bonk 





— Reofferedatloa04.Neinotable.Fe«1%.(Terante-DHniraenBadc3 

gross domestic product for the Jan- 


uary-March quarter. 






— Noncolloble. Eodi S1XOOO note wHh two wononta, eneitteubte teteTMcyo Domeu elirare of on 

repeded 21«% pnmluin. Pees 216%. Terns to be HfJirty 1 • (YamakM Inti j 

July 1 

Sydney: Australia releases May bal- 
ance of goods and services; Coca- 
Cola Amatii holds an extraordinary 
general meeting for the exchange of 

Frankfurt: The Bundesbank pres- 
ident. Hans Tietmeyer, and Rnanoe 
Minister Theo Waigel ^eak at the 
Global 24 teleconference on Euro- 

Auburn Hills, Michigan: Chrysler 
Corp. reports U.S. car and truck 
sales for June. 

Caracas: Venezuela releases June 

Guongdong investmsn) 





— RedeemobteotRKnui!lyat13X74XNoncollalite.CoiivertfelearHICSl3Up6rslMiraa2282% 

premium, ond of HKS78413 per donor, ftere net dMored. (Jardlne Flemb^ 

Tolwon Semiconductor 





— R«teeinteteotniaturilyon3683toytaMX05belmwTreasuiles.NofKDiabta.Conv«fIbteat 
TSI 44 per shore n 20% pnRihim. and of T0788 per dollar. Fes 21%%. (GeMmon Sodte IrdU 

ihares with San Miguel Corp; Re- 
serve Bank of Australia board meet- 

pean monetary union. 

Madrid: Spain auctions 3- and 10- 

inflation figures. 

New Yorfc Conference Board re- 

Wing Tol Holding* 





— $enriannuony.RedeeniQbfeatnMlMflyat13181.NoncanaMe.Cernai1tatealSS485persiiarea 

1548% pramftmL andors«T43perdDaar. Fere nof dtedned. (Morgen Stanley Inru 

nfltdtedesed. (Nuter crt CepBoIMfltketej 

Wednesday Jekerta: Indonesia announces in- 
July 2 fiation rate for June and trade bal- 
ance for April. 

Seoul: South Korea releases June 
trade figures. 

Sydney: Australia releasee May re- 
tail sales figures. 

Bonn: Germany releases figuras on 
May Industrial production. 

London: Chancellor of the Exche- 
quer Gordon Brown presents his spe- 
cial budget in ^iament 

Buenos Aires; Argentina reports in- 
flation figures for June. 

Detroit General Motors Corp. re- 
ports U.S. sales for June. 

Santiago: Chile releases June In- 
flation %uree. 

Last Week's Markets Euromarts 

Stock Indexes 

Thursday ^^>^9 Kong: Government an- 
July 3 nounces first-quarter construction 

Tokyo: The Economic Planning 
Agency releases its household 
spending survey for May. 

Bern: Svritzeriand releases retail 
sales figures for May. 

Bonn: Germany releases figures on 
Ma^ manufacturing orders. 

Paris: Insee releases GDP esti- 
mates for 1997 and industrial price 
Index figures for May. 

Dearborn, Michigan: Ford Motor 
Co. reports U.S. car and buck sales 
for June. 

Washington: U.S. reports June un- 
employment and May housing <»m- 

July 4 

Tokyo: Japan Automobile Importers 
Association releases sales figures 
for imported cars in June. 

Cork, Ireland: Industrial production 
index for March »id unemployment 
figures for June are released. 
Vborburg, Netherlands: Industrial 
sales figures for May and first-quar- 
ter Dutch trade suipfus figures are 

Buenos Aires: Argentina's Associ- 
ation of Automobile Manufacturers 
reports details on June automotive 
production and sales. 

OJ indM. 

DJ Tnss. 





Notdoq Cp 





Cano do 






Horw toio 

7487 J7 







June 20 

Hong Seng 

3082X75 2038584 
443000 4593.90 
M264C 451X10 
2589.77 3757.10 
X79S41 378X27 
1&T9X79 1X15436 
944J7 94155 

















Money Rates 

Federal funds rate 






Bonk base rate 
Xinontti intetaonk 


imwvcnHwi rate 
S^montti intefbcmk 


Eurobond Yields 



Coil money 

June 27 











June 20 










Jwi27Jm»nHgk VrlMr 

Weekly Sales 

PrinwryMoi k et 


U8.XfHigtemi 6J2 
U5.XnxRntenn 643 
Pounds sterling 
PranUi frena 
Swedish kronor 
ECU& bag term 

F 43 






ECUknidmterni 551 









6JS 758 683 
642 582 4.76 
653 680 586 
758 7J5 759 
535 SJS 4M 
AS? 788 44) 
584 582 S5B 
X27 541 452 
6.22 642 X76 
5.35 582 486 
5J6 681 580 
6j65 736 636 
7.17 X39 7.13 
184 X14 144 


6 Nees s NeiS 
SbngMs 2S78 59.1 ejqsn 479,1 

Convert. — T,i ^ 

FRNi 4444 1,7541 ^ 

01078 009.9 202S98 I&8BX9 
Secondary Market 

— wsaHF^ 
1051 8 8400 





Total 61.1164 41^7^6053 
SewewunefflOowg steak oeteirve. SoweteEwodHaCbw/Sank. 

• •■vw.. 9,7754 40526 
61.1164 41^79^60530 

Ubor Rates 

COM June 27 Jurw20%Ch'ge 

London pJlLfbA 33685 33X20 -049 

WorttllndexfwmMofoaa Stanley CtomolInHPeiapeelfire. 


Oeutedta mark 










Pound starfeig 

6 *te 




SedKta; Lima Sdflk Rwtefs. 







^ -J 

f ' 


Machine Firm 
Goes Bankrupt 
In South Korea 

Blitomher}! \ini‘r 

SEOUL — Taesung Machinery & 
Construction Co. was declared banloiipt 
over the weekend 1^ its creditor bank 
after faiiing to honor proinissory notes 
totaling $1.2 million. 

Taesung’s failure to repay loans from 
the Korea Development Bank was re- 
ported in the Korea Stock Exchange’s 
public notice to investors. 

Trading in shares of the debt-ridden 
Taesung. which makes heavy'-consmic- 
lion equipment and heat exchangers, 
w as suspended earlier Saturday on spec- 
ulation that the company would file for 
bankruptcy. The stock had plunged 690 
won to 8,010 won ($9.02) a share. 

Separately, trading in shares of 
Keurnkang Leather Indusny Co. was 
suspended .^mid speculation the com- 
pany was on the verge of collapse after it 
failed to honor promisson,- notes. The 
stock fell 670 won to 8,250 won. 

A South Korean company that fails to 
repay debts for the second business day 
is automatically declared bankrupt. 

Trade Gap Clouds Dollar’s Prospects 

By Kenneth N. Gilpin 

;Vt-.r TinurS Ser\ icv 

YORK — As the first half of 1996 
draws to a close, opinions are mixed among 
currencv traders and analysts about how the 
U.S. dollar will perform in the remaining six. 
months of the year. 

In part the dollar's recent performance is 
responsible for the doubts. After rising to a 
four-and-a-half-year high against the J^a- 
nese yen in early May, the dollar has slum^d 
about 10 percent on reports that America's 
bilaterai tmde deficit with Japan is widening. 

And uncertainty about the prospects for 
European Monetary Union, scheduled to be 
implemented in January 1999. has prompted 
weakness against key Continental currencies 
like the Deutsche mark. 

“Six months ago 1 was very bullish on die 
dollar." said Russell LaScala, chief spot deal- 
er for Citibank in New York. “And 1 thought 
the trend would continue. But the foUow- 
thxough has been disappointing.” 

Nothwiihslanding its recent downward gyr- 
ations. the dollar performed well during the 
first six months of the year. Through the end of 
last week, an index compiled J. P. Morgan 
& Co. shows that on a trade-weighted basis the 
dollar appreciated by more than 4 percent 
against 12 major industrial country cunren- 

Despite wridening trade and current account 
deficits, economic condinoos in the United 
States wairamed a stronger dollar. But there 
are difterences of opinion about whether those 
positives will contmue. 

’’Overall, the main thing underlying the 
dollar’s performance is that the Unii^ States 
economy has been outpeifon^g economies 
in the rest of the worl^ in terms of growth and 
enqiloyment generation, most notably com- 
paikl with Germany and Jap^.” said Ron 
Leven, global cunencv strategist at J. P. Mor> 

Mr. Leven predicted that the dollar would 
strengthen in the second half, particularly 
against the yen, largely because the economy, 
which has slowed in die second quarter, will 
e>pand at a 4 p^ent rate on average in the 
third and fourth quarters. Hiat sort of growth 
will prompt the Fed^ Reserve Board to raise 
short-term interest rates by half a percentage 
point by the end of the year, he said. 

A number of other analysts said they too 
were expecting ftirtfaer tightening moves from 
the Fed. But all agreed the central bonk would 
not start the process at next week’s meeting of 
its policy-making Open Market Conuniitee. 

’Tt seems to its that the Fed will not move 
until August,” said Jim O'Neill, chief cur- 
rency economist at Goldman Sachs & Co. 
“Arid unless we see some strength in up- 
coming employment numbers, they mignt 

wait until the fourth quarter.” Unlike 
Leven at J. P. Morgan. .Mr. O’Neill said te 
exprcted the dollar to Call further, particularly 
against the yen. 

* 'The single most important determinant of 
a currency's value is the balance of payments, 
and the Llniied States balance of pa\Tnents 
d^cit is still 2 percent of gross domestic 
product.' ’ he said. Unlike some other analysts 
who said they saw the recent widening in 
Japan's bilateral trade surplus with the Unii^ 
States as temporary. Mr. O'NeilJ said he did 
not expect it to narrow. 

Over the next tw'elve months. Mr. O'Neill 
expects the yen to appreciate another 5 percent 
to 6 percent against the dollar. 

Political concerns will likely be the dom- 
inant force in deiemiining the dollar's per- 
formance against major European currencies 
for the balance of the year, analysts said. 

An executive at an American agribusiness 
concern, who asked not to be identified, re- 
cently returned from a trip to Europe. 

’ ‘ I was surprised by comments ptrople in the 
financial community' made there about wheth- 
er Helmut Kohl w*Ul survive the next elec- 
tion.” lo be held next year, he said. “If he is 
re-elected but weakened, or not re-elected, 
then 1 think the consensus of opinion is that 
there will be a delay in the implementation of 
the EMU. It is that sort of conftision that is 
beginning to impact the dollar." 

Technology Value Fund: High Profits From the Brat-Pack 

Changing of Guard for Small Firms 

By Edward Wyatt 

•Vi ii Y ort ritncs Sirvict 

NEW YORK — .At the annual 
meeting of Charles Schwab «S: Co. 
Inc, lost month, an angiy investor 
had a pointed question for the com- 
pany's founder: Why wasn't the 
Technology Value fund, the top per- 
former among :\U .American mutual 
funds ovenhe last three years, avail- 
able throush Schwab's One Source 
program, the no-fee mutual fund su- 
permarket for individual investors? 

Mr. Schwab confessed ignorance 
of the fund, which was already 
available through two rival fund su- 
pemiarkeis. one run by Fidelity' In- 
vestment Co. and the other by the 
discount broker Jack White Co. But 
he vowed to look into it. Less than a 
month later. One Source was car- 
rying the Technology Value fund. 

In coming weeks, many more in- 
vestors are likely to clamor to get 
into the fund, which is just over 
three years old and which just 
passed the SI 00 million level in 
n.s.sets. The fund produced an av- 
erage annual return of S5.8 percent 
in ibe three years ended in May. 
earning it a coveted five-star ratirig 
from Momins&iar Group Inc., the 
Chicago fund trackers. 

The brains behind it are Kendrick 

Kam and Kevin Landis, both in their 
mid-30s. Mr. Kam worked for sev- 
eral vears in medical technology and 
Mr. Landis in electronic technology 
before they decided they could 
moke a lot more money by investing 
in those indusuies. 

In 1993. they founded Interactive 
Investments, the parent of the Tech 


nology Value fond, and to date, their 
efforts have been a runaway suc- 
cess. partly because the ftii^ has 
remained .so small. If investors flood 
the fund w ith money, the question of 
whether those gains can continue 
looms larger. 

In addition, many recent in- 
vestors in the fund are about to be 
left out of a decision that could 
greatly affect its future. On July 21, 
shareholders will vote on whether to 
loosen some of the investment re- 
strictions laid out in the fond's pro- 
spectus and on whether to raise its 
maoagemenr fee by 50 percent. 

.Anyone who bought shares after 
May 22 will not be eligible to vote in 
the election. .And those shareholders 
currently hold 15 percent of the 
fund’s shares, a number that is rising 
each day. 

But if the fond keeps piling up 

I Was/iingron Post Service 

W ASHINGTON — For financial planners and investors w'ho use them, 
July 8 maiks the changing of the watchdogs. 

investment advisory firms, including financial planners who give in- 
vestment advice, have been regulated by the Securities and Exchange 
Commission. The commission rarely got around to checking planners, 
especially those with small firms, but the planners were making key 
disclosures requested on the commission’s form ADV, for “adviser." By 
law. new customefs got some of that information. 

But starting July 8. the commission no longer will oversee planning 
firms that manajge less than $25 million. A law passed by Congress last ye^ 
limits its jurisdiction to larger firms. 

.The siller films, which account for two-thirds of those now registered 
widi the securities coitimission, will be reflated by the states. Four states do 
not register investment advisory firms; Colorado. Iowa, Ohio and Wvom- 
ing. Until they do, firms diere conaoue to repon to the commission. 

such impressive gains, shareholders 
probably will not care about those 
proposals. After ail, when a fund 
gains more than 60 percent a year — 
as Technology Value did in 1996 
and in 1995 — few shareholders are 
likely to object to a raise for the 

“We feel die performance shows 
that we've earned it,” Mr. Landis 
said. “So we’re asking sbarehoiders 
what they think.” 

Mr. L^dis and Mr. Kam came to 
the mutual fund business with no 
money management experience, but 

dieir hands-on experience in the 
fields in which they invest gives 
them a background that many other 
technology fund managers do not 

After graduating from Stanford 
University with a Masters of Busi- 
ness Adr^istration In marketing. 
Mr. Kam became a co-founder of 
Novoste Corp.. a company working 
to make a diagnostic cardiac cath- 
eter that was bought in 1 992 bv a 
conqiany that is now part of P^r 

Mr. Landis, who has an MB.A 

from Santa Clara University, 
worked for two years at Dataquest, 
the Silicon Valley research firm, and 
then worked as a product manager at 
S-MOS. a semiconductor company 
based in San Jose. California, that is 
a unit of Seiko Epson. 

The managers say soch experi- 
ence. plus the fact that their fond, 
based in San Jose, is the only tech- 
nology mutual fund that actually 
operates in Silicon Valley, gives 
them a leg up on other technology 
fund managers. 

"If you ask most money man- 
agers to cite their experience, they 
will immediately tell you how long 
the>''ve been money managers and 
how many analysts they have out in 
the field.” Mr. Landis said. "I 
would rather have contacts at a com- 
pany's suppliers, its customers and 
competitors to give us red-time in- 
dusuy inputs. It was the pair's lack 
of money management experience, 
however' that k^i them out of the 
Schwab One Source supermarket 
for so long despite their srellar early 
performance record. 

Schwab denied their original ap- 
plication. citing the found^' lack 
(.‘•f experience as money managers 
and cne fact that the fond was so 
small that it might grow too fast to 
function efiectivelv. 

Dini Rules Out Top Role atfeBRD 

aS^brn't have no plans co l«v e my rfsHion as foreign 
Sier ofhaly and leader of Italian R^rewal. hs ne«; ; 
politu^ part)’. / ^ . 

Thailand Heads Off RunJon Firms 


heS^a run on Sing finance companies by annoanc™ , 
Monday that promisson' notes held . 

redeemable at Kningihai Bank, local .media reported San- ^ 

'^The notes will be convertible intoHie bank's ® 

12-monih negotiable cenificates ® ' i 

Accounts of the authorities mtenPions differed., howev^ - \ 

as to whether notes from aU 91 finance companies " oold te .. 
convertible or only those from the lo ordered Frida> to close 
for 30 days and seek merger partners. 

Mergers Climb 10%; Worldwide ; 

NEW YORK (Bloomberg! — .Mergers and acqoisiti^ , 
worldwide rose 10 percent in the second quarter, on a pace that . 
would make 1997 a record year fot corporate consolidation^ ; 
^ companies combined to enter ryj^imiirkets. cut costs and 

increase profits. /Jr 

Corporations around Uie globajinnounced consou^iOTS . 
valued at $332.3 billion in the sec?»nd quaner. agaircsr $301.2 - 
billion in the second quaner of 1996, and ahead ot last year s . 
record pace, when S 1 . 14 trillion of mergers were ontioun^ 
according to preliminary information provided by Secunoes ^ 

Data Co. of Newark. New Jen>ey. 

Goldman, Sachs & Co. was the leading adviser tor mergers : 
worldwide in the second quarter, arranging 69 transactions • 
valued at $90.6 billion, according to Securities Data Morgan - 
Stanley was second and Lazard Freres & Co. was third. ,j( 

Italy Enlarges Sale of ENI Shares 

MILAN (Bloomberg) — The Itali^ government >aid Sat- - 
urday that because of excess demand It had enhyged its sale of ■ 
a third block of shares in ENI SpA. reducing its '•take in the . 
energy company to 5 1 .5 percent . 

Instead of the I billion snares, or 1 2.5 percent, of the company 
it originallv planned to sell, the Italian Treasury said it w’llf sell - 
1.265 billion shares, or 15.8 perceni. It is also likeb to ha%’e an 2 
over-allotment option, which would mean selling ,i total of 1.4 
billion shares, or 17.5 percent, on higher demand.^ ■ 

If the full amount is sold, the offer will raise 13 trillion lire 
tS7.6 billion), the largest stare a.sset sale ever in Italy and the * 
world's largest equity sale of any type so far this year. ^ 

Insiders Retain Gazprom Board 

MOSCOW (Bloomberg) — R.AO Gazprom's annual gen- - 
era! meeting again elecied'ccmpany m.'magers to dominate the 
board of directors of the world's biggest gas producer. 

Company employees and two outsiders close to the com- ;; 
pany won seven of the 11 seats on the Russian company's , 
boafo Saturday and government officials won the remaining - 
four seats, tbwaning^y hopes outsiders had of gaining board ' 
representation . 

Attempts in future to install mdependeiit directors will be ' 
made more difficult by a new company bylaw limiting single a 
investors to a maximurn of 3 percent of Qiuprom shores. 

For the Record 

AT&T Corp. has broken off merger talks with SBC 
Communications Lnc. after a hailstonn of crincism from ' 
regulators and mounting internal disugreement about how to ;; 
structure a deal, according to several executives. iN)7l - 

EURO; An Appeal for Sustainable' Discipline 





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business Te! No:. 

Continued from Page 15 

Kohl insists that Germany 
must meet the debt ceiling or 
postpone monetary union. 

In an interview with the 
weekly newspaper Welt am 
Sonntag. Premier Edmund 
Sioiber of Bavaria, an influ- 
ential member of the Chris- 
tian Social Union parr> said. 
“If you say that the euro must 
conie on Januarv- 1. 1999. as 
agreed, and basically no 
longer say the criteria deter- 
mine the timetable, then of 
course you create the Impres- 
sion that the criteria ore con- 
sidered less important than 
the timetable." 

“If the requirements are 
nor fulfilled." he added, 
“then of course, we will have 
to agree on a thorough, con- 
uoUed postponement." 

Many conservatives such 
a.s Mr. Stoiber worrv that if an 

exertion to the ^ pi^vent 
ceiling is made for Gennany 
or Fi^ce. then exceptions 
will have to be made for other 
countries as well. 

“If we begin w ith 3.2." he 
said, “then come the next 
ones with 3.6 and the next 
countiy with 3.8 or 3.9. Thai 
savs everything. If we begin 
to' waver, then wc should 
know that 3 percent mean- 
while has become s>Tionv- 
mous with moneUtry stabil- 
ity." ‘ (Reuters. BlnondhVi i 

■ .4 Call for Flexibility 

Alan Friedman of the In- 
ternational Herald Tribune 

Rudolf Scharping. a lead- 
ing member of the Social 
Democratic opposition, said 
Sunday that the need for over- 
all convergence and a co- 
ordinated European fight 
against unemployment was 

more important chon a strict 
adherence to the 3 percent 
deficit target. 

“Tbe Maastricht, treaty 
does not speak of 3.0, per- 
cent.” he said, “hut of con- 
vergence and of other impor- 
tant economic factors. It is not 1 
important if the figure is ex- • 
actlv 3.0 percent or whether it [ 
is some decimal point above • 
that level.” 

Mr. Scliarping said he 
agreed with Wriie Minister 
Lionel Jospin of France that 
"it is crucial that we in 
Europe rake steps to figltr un- 
employment together/' He 
added; “We will have raon- ■ 
eian- stability only if we have 
stable employment levels and 
a stable economy. This is our- .* 

Mr. Scharping also said he 
agreed with France's position 
that Italy should join in the 
euro front the start. 

INTERNET: Ruling Upholds Founders' Ideas 

Conrinued from Page 15 

eras were invented in the mid- 
I9th century, secret studios 
were photographing nudes. 
The videocassette recorder 
got a sales boost in the mid- 
1980s from letfutg people 
view sex films at home. 

It was the same with the 
Internet. Not too Jong after it 
began, people were placing 
digital versions of sexual pic''- 
tures on Internet computers 
for others to see. 

No longer hidden in an ob- 
scure academic network, the 
Internet's sex sites, some of 
them now moneymaking 
businesses, caught the atten- 
tion of conservative and par- 
ents' groups. Citing cases of 

children downloading luid- 
core pornography, they began 
a lobbying campaign that cul- 
minate in passage of the 
Communications Decenc\ 
Act last year. 

In the view of these groups, 
the Internet should beVeafed 
like television or radii.', where 
content is closeK regulated 
by the govemmem. Just a.-i 
airing a television program 
with obscene content would 
mean fines for the bivtad- 
caster, people who operate In- 
ternet sites should have re- 
sponsibility for what they 
dtstribufe. the>' feel. 

Many in the Internet com- 
munity. however, advocated 
treating the medium like prin- 
ted matter, distribution 

Arts & Antiques 

Appears every Saturday. 

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

tv OTlHSiTliiNU 

iicralo ^-j^ fcnbmic 

Tiiii noRLirsnui) nets^pfr 

can be regulated for only very 
limited reasc»ns. They argued 
that the casual internet surfer 
Can't turn on a computer and 
immediately be bombarded 
with pornography. Users 
have to request siich infor- 
mation. they said. 

Civil libertarians and many 
in (he Internet industry cliam- 
pion the concept of individual 
regulation. Instead oriimiiing 
what people offer on the net- 
work. they advocate that par- 
ents should use special soft- 
ware that will filter what their 
children might see. Critics 
contend the software is not 
effective enough to block out 
all the unwanted material that 
J child might encounter on the 

"Right now-. it\ like a de- 
t'eLtivc condom," said Mari- 
am Bell, vice president of 
Enough Ls Enough, an anti- 
pornography group. “It 
dwsn'i work." 

Privacy advocates admit 
that filtering software does 
not provide an impregnable 
harrier against ohjeciionablc 
content, but thev say such 
!»-»oJs are constanflv bein« up- 

"If you went back lOvears 
ago and asked about’ the 
satety of jungle gvms and 
backyard swimming pools,” 
said George Vradenberg, 
.America Online Inc.'s gen- 
eial counsel, you would “sec 
dial. We \e come a lone way 
in how we think about 

Inierner addre%^- Cvher- 
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PAGE 20 



Indians Club 19 Hits 
In Scalping of Yanks 

TV Associated Press 

Matt Williama hit two homers and 
ded career highs widt four and six 
runs batted in as the Cleveland Indians 
chalked up 19 hits in a ]2>8victO!Yoyer 
^ Yank^ in New York. 

W illiams hit a two-ruu honer in the 
second inning off the Yankees' starter, 
David Wells, and a duee-mn homer off 
reliever Jim Mecir to cq) a six-run sixth 
in Saturday night's game. Williams also 
had two singles as Cleveland snapped 
New York’s four-game winning str^ 

Sandy Alomar went 3-for-S to extend 
his hitting streak to 25 games. Marquis 

Grissom mamhed his canet high with 
five hits, including two doubles, and 
drove -in three runs. Eric Plunk, Che 
second of fonr Indians* piKhets, won in 
relief of Brian Anderson with two in- 
nings of one-hit balL Albie Lsspez al- 
lowra one run over three innings. 

THm 9^ Rad Sas 2 Tooy Qaric and 
Melvin Nieves ea^ homered bn the 
first pitch of an inning to lift visiting 
Detroit to its third consecutive victory 
over Boston. 

Felipe Lira, winless in four starts in 
June after going 4-0 in May, held the 
Red Sox to two runs and six hits in six 
innings. Phil Nevin drove in four runs, 
three on a ninth-inning homer. 

Rfawar a S, Reiy^ 3 Jeff D*AmiC 0 
WOO his foudb straight dedsioo and the 
American League's worst road team 
recorded a rare victoiy away fimn 

The Brewers stopped a four-game 
losing streak and ra^d their road rec- 
ord to 11-27 with just their fourth vxc- 
xory in their last 16 starts away from 
County Stadium. 

BhM Jays S. Orielas 2 Orlando 
Merced hit one of Toronto’s three solo 
home runs and the visiting Bine Jays got 
another strong perforaiance from their 
bullpen in handing Baltimore its season- . 

Woody ^^Uiams allowed two runs in 
five innings, and duw relievm com- 
bined to ke^ Baltimore scoreless the 
zest of the way. Mike Timlin got four 
outs for his ei^tii save. 

TwiRs 11 , WhMs Sox s Brad Radke 
von his fifth straight Stan and cooled off 
basebaU’s hottest team as host Min- 
nesota en(M Chicago’s seven-game 
winning streak. 


Chuck Knoblauch, Pat Meares and 
Terry Steinbach hit solo homers for the 
'Twins, wto got 19 hits in halting a 
three-game losing screak. 

Ranipais A AttiMiea 0 Juan Gonzalez 
homered twice and Dairoi Oliver com- 
bined with three relievers on a five- 
hitter. leading Texas over host Oak- 

Oliverblankedtfae A's for five shaky 
inning s for his tot victory since June 2, 
a span of five stalls. Dan ^ttsrson, Eric 
Gunderson and John Wetteland held the 
A's hitless the rest of the way witii 
Wetmland pitciung a perfect ninth for 
his 16th save. 

Ansala 6, Mwrtaan 1 Allen WatSOn 
allowed tiiree hits in eight-plus innings 
and Luis Alicea homered to lead Ana- 
hdm over host Seattle. 

Watson gave up a double and a walk 
in tiie first inning before retiring 18 
straight until there were two outs in the 
seventh. The left-hander took a two- 
hitter into the ninfe before giving up a 
walk and a single. 'Troy Perci^ fin- 
ished up, allowing Edgar h^utinez's 
sacrifice fly. 

In the National League: 

Cubs s, AsifQ* 2 Jeremi Gonzalez and 
thr^ relievers ccKnbined on a two-hitter 
as host Chicago defeated Houston. 

Mazk Grade hit a two-iun homer in 
die first inning, and Sammy Sosa added 
a two-run shot in to eighfo- 

Cwdinal* 12 , Rads 6 Rod Gant 
homerni as St. Louis scored seven runs 
off Jeto SmU^, the starter, and held on 
to beat host Cindnnati. 

Dmitri Young matched his career 
hi^ with four hits and WUIie McGee 
lad four singles and drove in three runs 
as to Cardinals piled up 18 hits. St 
Louis rocked Smiley for eight hits and 
seven runs in only two and a third in- . 

PadMs 9, Dodgera 3 Steve Finley 
drove in thrM nms with a pairof homens 
and Tony Gwynn added a two-run shot 
as San l^go beat host Los Angeles for 
the lOfh consecutive time. Pete Smith 
started for Cincinnati, allowing two 
runs and three hits in five innings with 
four strOteouts and two walks. 

yarlins4,Bxpo»2 livan Hernandez, a 
Cuban defector "taking his second smrt 
of to seastm, earned his first majm: 
league vicroty as Honda beat visiting 

Hernandez (1-0), who sigzied a four- 
year, S4.5 znillioa contract with Florida 

I • ' . 

Ewings the Free A^niy 
Is About to Strike^old 

%. . ^ 
% % 


Derek Jeter, file New York Yankees* shortstop, taking to the air in the 
fourih inning to tOTC6 oiit Marquis Grissom of fiie IndiMS at second base. 

after leaving to Cuban national team 
two years ago, struck out six and walked 
two in seven innings. 

Mels 8, piratoe 3 Bernard Gilkey and 
John Oioud drove in two runs smiece 
and New York beat host Pittsbui;^ for 
the fbnrtii time in five games over two 

Brews 9, PhaReB 1 Michael Tucker 
hit two of Ariana’s four home runs off 
Curt Schilhng and John Smoltz won for 
the first time in five weeks as the host 
Braves beat Phil^lphia. 

Smoltz allowed six hits and struck out 
seven in seven innings. 


Major League Standings 












New York 































Kansas City 




















































. 44 









































SanFranetaoD 4S 





















OmlBRd ON on 0M--3 7 S 

NwYM m ON oo»-a 7 e 

HenMier and S. Noman Geedew Stantan 
W, MJUhto (9) and dronU. W— Goodtii. 3 . 
a L— HeffihSor, 7-4. Sv— M. Mroa (26). 
HR-OwSond. TTioint 03). 

DGntt ON IN ON m—a t o 

BoNm on on in Ofr-> i 2 

(11 hnlngtt 

Blolr. M. Mywi MIcoR (KD. TaJonN 

(11) ond CoHiMva.- Geidan Sloomib (lU, 
HMi(Mntfar)oridHafMei 9 .W--MtaeftI- 
1 . L— HoRimind. 3-4. Sw— TUones m. 
Taranto ON no tm-a « o 
Mtonora ON ON 010-1 S 0 

Paraon. PtoHc (8). TDiUto (91. SpoSorfe (9) 
ora) a. SonDossa KnmlcnieM Rliodaa W 
and Utetator, Lokar (9). w-Penoiw 3-5. 
L— KonientacM. 6-4. Sa— Spa fl oilc <2). 
CMBOio 2N 3M 103—10 IS 3 

Mnaaaata ON IN 213—6 0 1 

Navuiiu. T. CtsOUe (9. WJ ltww ndaz (9) 
and FabTNoe Tewhsbur)!, Sarindefl tA 
TramUey (9). UuoidadB (9) oM SMnbactv 
W--Noi«iu M. L— Tawkibuni, 4-7. 
HRs-.CMcooft BSto (10). MhvMsata. 
CBcmarS (8). 

MIsbNm on no 101—3 t 3 

Kanwaif 1H 633 ON-16 IS 1 

UMcDMitol Flwle (4), vnhxM (6). Feltora 

(7). OoJones (8) and Motheny, SHmett (7)> 
Apptor, Mk.WBtanK (7). J.Walhv (9) and 
MadarlaiM. W-Jopm 6-5. L— B. 
McDonald. 6-5. HRs— Koims City; J.Bell 

03), Paquette 3 O)- 

Anaheim ON IN 000-1 7 • 

SaoNto 4« 1M OOx^ 8 8 

CFWnk Hasegatm (6) and KreutBp 
Fossenv S.SoiidefE (8) and DaWKson. 
W— Fassan. 0>3. L-<. Finlay. 3-6. 
HRs— Seolttb A.RodrSiaaz nO). Buhner 
(21). Btoweis (3). 

Taxes 003 BSO 000-4 9 3 

OSdonO 020 Ml ON-J 13 1 

Buifcoa Vosbeio WMtosIde (6), 
Pidlaniin (D and IJtodifdiMB (3qirist> 
ASmoR (7). GRxan (89. Toyfcir (9) and 
GhWaHoas. W-OqutA 2J. L-JIurkatt 5- 
7. Sv— Toytor OS). HR— Tam I. Kodrigua 


Haostan 010 ON NO-1 7 1 

CHeOBO 2N ON OOK-3 6 1 

Honndoib MogNnte (8) ond Aasnwi; 
Foster. R. Tdllt (7). WondSI (8) and M. 
HubbCHd. W— Foster, 9-S. L— Homptoa 3-7. 
SiMMndeO (4). 

P Moda M N ON ON 001—1 6 3 
Aflonta 4N 021 N»-7 10 0 

StNl wno ft EHoiler (6). Bicwor 0). 
Gemeo (Q and UebarUnL- GJAoddus ond 
Edd.Paraz. W— G. Moddin, IM. 
Lp-StoptiSBOiw 3-4. HRa-Aflonta. Bknuer 

MwtnG ON 003 000-3 10 0 
Florida ON ON ON-0 6 1 

t tomi uiis en M. VoMes (3). D.vani (6). 
UrUno (9) and IVidaer. Choiw it); 
KJ.B(awa Cook (8), PowaO (0) ond 
CJefHiOBn. W-M. VaMei M. 

t-iOBliMffl. 7-S.Sv-UlHM 04). 

St.Leals ISO IM 000-4 S 2 

Ondiiail 010 om on-s 5 i 

, AI.Banaa. Beltran (8) and OSafloe 
LnvMn (7); TbnlRb RemSioar (7J, Show 
O) and Taubenace, J. OBwt (7). W— Temko. 
4-1. Lp^ALBanea, 7-7. Sv-SInw OS). 
HRa-St lAUla, DlWIce (3). Ondniafl, IN. 

NawVsik ON Ml ODO-i 5 1 

Pllhhurgh 402 8N Ma-6 14 I 

MHda R. Jeraon (S), Udto (6), Aeevedo 
ffh KdaMwoda (89 «id Hundtep Sdanidf 
and KandoL vr-SchmMl 34. L-MlkM 4- 
K. YUuno (6). Swum (4) j 
SNRoKim ni Ml 031-6 10 1 

Culer a dB ON om 003-3 • 2 

Raatob Beck (9) end BairyhM; Tlwmsoa 
Scatt (7), M. Munoa (8). SJtoad (9) end 
Manwailni^ W— Ruetoa 54. L— Thomsoa 
3-S. Su Back (26). HRa— Son Prandscu. 
Vbaiine(2],Banifc (l8).Snaw(7).C6toiiidib 

SwDlagt 001 ON 030-7 12 1 

LHAnoatos ON 3N 0I3-.S 12 1 

J.Hiimmeib UWamO (0), BocMIw (9). 
Noffinoff f9) and Bokarfiy Porto Oralfert MV 
GulMa (7h Tu.Wamn (8), RoGmliy (R. 
Hoikay (9) and Ptaao. W-J. HamRtoa 54. 
L— Pork. 5S. Sv— HeHman (IS). HRs-Soi 
OieoQ, J. HenBkn (2). Los Anselsto PSzn 
nsVZaila 06). 

« AnM N A r»« LSI aj CO AM 


CMatand 041 806 001—12 19 1 

NawYotK 313 101 000-0 II 3 

SrAndeison, Ptunk U)> A.Lape> (6). M. 
Jackson (9) and S. Atomor: O.WellK 
KiLRogen (4). Medr (6), Natson (8) ood 
Poeodo. W-Phmk, 3-3. b-KnJiagers. 4-4. 
HRs— Omtond. AHo-Winons 3 (17). Hevr 
Ytvfc. FMder (9), T. Marttnei Cfft- 
DatraN 1R OR 114-4 11 0 

Boston on in 000-2 7 3 

Lira. Sracod ffj, MlaeS ffl ond CBsonowE 
Seto Esiwlniiin (7). Lacy (9) and HulMrcrB- 
W— Uro 54. L-Me, 06. HRa-Dolroit 
TojOark cm Navin (3), Niewt (10). 
MlwentM 002 013 ID0-fi 10 1 

Kaaosaiy ON 110 100-3 IS 1 

PAmhA DiLJones (81 and Motheny: 

Rosocto. Bona (8) ond Fdsona Mactarlene 
(S). vS-OADifca 64. L-Roaodo, 7-4. 
5 v Do J unra (II), HR— Kenoi Clty^ C 

ihraoto 002 0)0 flO-S 9 0 

BotHnara . ON 110 108-3 t i 

W.wnDom. OiniiMU (9, SpoTiaric (7), 
Tinribi (8) end B Jonllaoia Kei6 MUebnaon 
(S). Oiaace C7J, TaJMofhem (8) and 
Webster. W-W. WNiini, 3-7. L-4Cao 1 1’d. 
Sv— Timlin (6). HR^Teionto Merced (7), 
A. (tonniez (7), C Goide (1). Bo U bnwe. 
SuitafrnDifioiOdi (3). 

CSdeaN ON 2N 308-S 10 0 

MbneiaM 270 Oil oon-ii i9 o 

Orabato McEliDy (2), some (4), C CoaHUe 
(7) ond FobraeoA Knkewice (7); Radke 
FrAodilouai (7) and SteinbodL W— RocEo 
9-& Lp-Drobdi, 55. HRs-Mbmesota. 
KnuMoiich MJ^ Stehibodi Q9. Madras 17). 
Tb» 010 IN ON-3 7 0 

Oobtond ON IN 006-0 s • 

DjMwa Paltemn (6). Gundaiaon (8). 
VMatand (9) and UtodMouae Rf^ 
MoMar p). D. Jetinsan (9) and GaWMoms. 
W-D. Olfrar, 59. L-Rfgby. o-i. 

Sv * We l tol and (16). HRa— T bob. 
JuJSonBda2 06). 

Anabatoi 00) QIO 400-6 9 0 

SaoNto IN ON 001-4 3 1 

Woiioto Perdml and K/mheif Lam 
McCortliy (7). B. Wetla (9) and DckWHsoiw 
Monona (9). VMValsoib 7-4. L-LowsM. 
HR-AnahSm AOcea (3). 


Hoaatoa ON ON 200-2 3 4 

ChiCMa 3N IN 123-5 6 2 

Rnorda HudMc (7) end Auanws; 
JeXtonzokz, TAdorn (7). R.ibfto (7h 
BattenlMd(7)andSannia.W— JeGontoiaz. 
5Z L— R. Gaicto. 3-6. Sv— auttenRaW 0). 
HRa-Odago. Suaa 06), MoAroee (7). 

St. LiOia 31S oil 016-12 II 2 

otciMn 201 m . 000-6 9 1 

vatemuela. RatfcuvaN (a. Ballran (9) and 
DIfeOee Smfleyi Conasco (39, FaJlodfIguaz 
(5). Sufltomi (6), BeOndo (9) and Fontyce, J. 
Ollwr (5). W-PalkeiaM, 3-4. l^-SmOey. 5- 
1IL HR-5t LMto Cant 02). 

SoaDtosa IN 233 000-9 13 1 

LNAagttos ON 111 00(k-3 0 • 

P Jmltth Botetieler (6), Cumune (9 and C. 
HernondeB Namo. Hoikay (5). Guthito (7). 
Hoff W and Ptea Rdneam. W-P. sndfto 
2-1. L— Noma 7-7. HRa -Son Diego. S. 


































































Nippon Ham 


















Honlitn I Z Yblnluma 6 


Nippon Hamto Lotte 1 

auiiBiAT*a eisum 

ItoketHiiie IZ HansMnS 



Kfertetsu z Salba 4 , 12 InnlnN 
Mppun Ham 7. Latte 1 




ROce dtotanee: 72 taps O0Z814 kph) 

1. NL SdtuniQUKb Gar. Fanori. 72 taps, 
305S14 km h I h. 38 m. and 50J92 to (overage 
spued lBJ39hph> 

Z H. Fnnbea Gar. WBUoms at 22537 6. 

Z EJnrine NJiatanA FeneA at I m. 14.NI. 


^Jcmorablo >Ioniciil> ,|oliiiiile Walker: DTR C l P irillt HcnianI (.allorlu- 

oH.mtrw/6 tuacmw 

Hf$fUJS9$cME5MmArTHB i^zyRC^ymwv^w\^Nexrw^YHOVi&ia>% 
g^vmA05R mu -m 

Roekies9,Giaiits 2 Dante Bichette hit 
a pair of thiee-nin homers and Kevto 
Ritz pitched a six-hitter to lead host 
Colorado ovtf San Francisca 

Viiiny Castilla added a two-run 
homer and Larry Walker hit a solo shot 
for dieRockies. Bichette homered in to 
tot and third innings for his I2th career 

jUtz struck out five and walked two in 
his first cor^lete game since June 27, 
1996. The ri^t-hander had lost tus last 
three decisions. 

Marie Gardner was the losing pitch- 

By Mike Wise 

Nev YorkTmei Seryice 

Hitrick Ewing is about to play the 
free-agent game, a can’t-lose propos- 
ition mfee New Yoik Knicks’ All-Star 
center in which he is to be paid an 
enoimous sum of money. 

Ewing is not knocking over Fort 
Knicks; the franchise is giving hto the 
keys to the vaiilL Along with Michael ' 
Jordan, Ewing towers over a mediocre 
cre^ qS fdayeis whose current contracts 

are expired and are about to nuke them- 

^ves available to other teams. 

Thus, he will be paid handsomely. 

“Any off^ we put out there will not 
be insulting,” said Ernie Gninfeld, to 
Knicks' general manager and teampres- 

'the Knicks and to Bulls are not 
averse to paying two of to league’s 
superstars almost whatever they want. 
David FaUc, to agent for both players, 
has ^pareatiy convinced to Bulls diat 
Jordan is worth more ton $35 million 
for one more season and New York tot 
Ewing is worfo between $45 imllion and 
$60 fnilHf>n over three or four more 

Anydiiog less than what it costs to 
fito Russian space-station repairs is 
said to be a baeg^ for Jordan. 

As for Ewing, the ^estibn of what is 
frur for a soon-to-be 35-year-old center 
on sometimes creaky Imees- is moot 
Ewing's post-up peers and friends from 
Georgetown, Alonzo Mourning and 
Dikembe Mutombo, signed deals last 
season that pay tiiem an annual salary of 
$16 million and $12 millioa, reflect- 
ively. ShaquiUe O’Neal averages $17.1 
million a season. 

The Knicks, to keep their champi- 
onship hopes ^ve, must indeed show 
Ewing the money. 

The first day a free agent can be 
offered a deal is Tuesday. Given tiiat 
there has been oo public acrimony be- 
tween Falk and GiWeld, Ewing could 
sign a Knick-fbr-life deal before to 
Fourth of July weekend. 

"I think we're going in with the at- 
titude we'd like to get it done,” Grun- 
feld said. ”And Iknow th^'d like to get 
it done. But there is no time frame on 

Falk said recently tiiat Ewing’s 
longevity witii the franchise should p&y 
a rme in how long it takes to wrap up to 
negotiations. ‘ 'As a gesture of good will 
for Patrick's service and costritartions 

over to last 12 yeaW* he said,;Td 
Itotosceitgetdoncmooe Jty. 

Giunfeld said: ' ‘tf it could done m 
one day, that would begreaL 
EwiM does oocJiave all tofeveti^ 
in the world, because few teairocan pat 
logethfiT a decent deal under Qfe salary 
cap this season fcff his services. There U 
always the slim possibility of playing . 

cheaply for a title-contendmg/team and ^ 
thentesting the ^agent market again,. * 

but that is unliJ^y- . 

By putting players around bun last 

suimner and refusing to toss his name 
aroundintracksnesotiationsthepasttwo - 

seasons, to Knicks have done:, 
eveaything to- make Ewmg s last years 
in New Yotk enjoyable; Ew^has,^ 
sponded by playing some of me roost 
tSishedba^iB^ of his career. / 
Aifliough |he has still not won a title, 
Ewing lem^s one of the few icons fe 
the gameWo has managed to stay with . 
one team 1^ entire csireer. Age and . 
ta^th cooceims aside, no one b^^udges 
him a mons^ contract 

And besides, when your free-agent 
center competition is Duane Caoswell 
and Marie West well, it’s a good bet that 
Ewing canj get almost everything he 

wants. 4 _ „ * • 

A year dfter the Great Fiee-Ageot ; 
Summer of796, to talent has drof^ 
off severely. Most teams have already 
begun creatiDg room under to cap for 
1^8, the summer in which a ^lethoriaf 
All-Stars, iiicluding the rookie class of 
1995, will M available to to highest 

begun creat ng room under me cap tor 
1998, the su nmer in which a plethora of 
All-Stars, iiicluding the rookie cl^ of 
1995, will 1 e available to to highest 
bidder. _ , 

After Jordan, to pool oi stooting 
guards ged awftiUy shallow this snm- 
- mer. BobbiPhills of the Cavaliers may 
command fbme decent offers, but Nidc 
Anderson pd such a sub-par year srilh 
Orlando iSm to Magic could re-rign 
him for a lot less than a year 

Hubert ^vis, a long’<listance spe- 
cialist for Ihe Knicks before he was 
traded to to jRaptozs, is also a 
flgftfir , as arewfalik Sealy, with the Clif^ ^ 
pers last sesisoii, and Joe Dumars. *The 
Pistons pla^ to keep Dumars until ^ . 
retires. J 

There nay be a bai^gain 0 |r two out 
there' — p^t guard Erick Sirickhto of 
to Maveri^ is a low-risk propositloa; 
and Rex f^ gpinan of to Suns can still 
energiTg y^uT offense for a pittance of 
what many scorers might cost — but (XT 
the whole, it is Ewing, Jordan and a lot 
of ni ce role players who do not have a 
cologne najzied after them. 

Montraol ON 2N 000-2 3 1 

FMN 201 ON 01A-4 6 0 

BuKngM; L Smilh (7), Telfoid (8) and 
OuvcB LHemondeL F.Heredta (6). 
Stan Her (8). Men (9) and C Jotinsan. L 

Hefflomiez. 1-0. L— BuHnger. 57. Sv— Nen 

( 22 ). 

NMrVerii ON ON oso-6.11 0 

FRMwrgb ON ON 210-3 9 0 

ReynoH) Aemdo (7). McMlctioel (B). 
JoAanoD (9) and Hundl^ Unbiv Shn (7). 
Qiil a ltan a en (9) and Kendall. W— Reynoso, 
51, L — Loatzv. Sa 

PWiHMpMa ON ON NI— 1 8 1 

Altonto IN 111 28a-9 II 8 

ScMOnsKConKS (6). Spradln (7), BoIINcd 

(8) and Uaberlliab SmoRz, Embna (8), Byrd 

(9) and iJUifW. W— Smoltb 7-7. 
Ir-SddIBno, 9-7. HRs--Attanla, Tuckart (8). 
ChJonas (13). JJ.opaz (13). 

SNFnodMa 018 001 ON-3 6 1 

Cohaode 3N 120 Ota-9 9 8 

Goranar, Curtson (3),TavarBz (7), Poole (8) 
arte R.WIkiw»te ond JeJtaed 
7. L— Ganineb 8-4, HR»-San Pranctaa 
&KW (S) . Coiorada L vitalw (Sd). Bkti^ 2 

•lAPANESE Leagues 

A J. Vflieneuvb Con. WRBotns, im J84. 
&J.AtesLPr.Benetloa 1:21735. 

A R. Sdwmadieii Gar. Jontan 1 :29571 
7, p. CoulltMRL Sent. McLorciv 71 taps. 

& J, Herbert Eng. Savb» 7] 

9, G- Foidwlii, It JOidoh. 71 
UkiJ.Tnilil Italy. Pros). 70 
imivsRSSTANDWQSs l.lVLSdiumodi- 
IS 5. Pcods. pr. Pnsl-Mugen-Honda IS; He 
Ales1 1 S 7.CoultlK)rd 1 h &G.Beiger, AtisIriOL 
Senetton-Renouto HoAMnen. Ririoml 
Mdaren-Mercedea. IS 
MIcLonn 21; 5. Frost le 6. Jordan iz 7. 
SootMT e 8. Stewart 6; 9. Tyrrell Z 




LKlHNnia 76. Stoventa 67 
nNAL STAMDMQS: Uthuoida 3 VidD- 
ftas Israel Z France 1; Stavanta 9 
UNwonta . Israel and France goto 3d raund. 

POtAC OTAlNMMOnc Sgoin 3 vtetaries- 
Oaotta 1; Germany 1: Utoolnei. 

Spain OoelSa ond Gennaiv go to 2d raund. 

(tairsa Poland 65 

PINAL RtMBMOSi HolySvIdoriesYu- 
gofknta Z Poland 1; Latvia ft 
Italy, VliNslavta and Petond go lo 3d raund. 

(Siaeca Ulhuanln Russia. Israel Turkey and 

italy^ Spain VugestavkLCiQalin Poland and 

Top d leemt ovosfy tor ouortofBnals. 

Tuikav 81. Israel 71 

Yugestairta BZ Germoy 73 



*tai«dinos: Altazomblque 4 wMs 

Nomiirio 4t Zambia Z TonzonM Ti Mohniri I . 

aiAiea isAocM oocciR 
Tampa Boy Z L03 Angalea 2 
Kansas Qty 4 Colondo 3 
San Jose X Dallas 1 

standoiog: Eostani Cenfeioncei D.C 
39points : New England 22; Tompo ^ 22; 
Gdumbus 17, NY-NJ IX Western Confer- 
aacK KoiBiBOy25;Colorado2ZDoIta3lBr 
Stei Jose 14; Los Angels IOl 




Uiugeoyl, Fionoel 
(ftvgooy won F6 on penoWes. 




Ghana wonM in sudden death exinillnie. 

World Cup 


New Zeotand a Aushalta 0 



Japan 1, Oman 1 

FMUL GiMNBiNea; Japan 16 pointai- 
Onwi 13; M0C004; Nepol 1. 

Jopan quaMed forseand round. 

Copibodta 1. UsbeWston 4 
STANDHsao; Uzbekbton 13 petals 
Yemen Z* Indonesia 7) Comhodta 1. 


KazataBtonX Iraqi 

FMiAL GTANDoiata Kazakhstan 12 
petals Iraq 6; Paklslan 0. 

Kazakhstan quoBM tar second raund. 



GeriMnibZI, retired tabled; CondhAaAtoF - 
ttaez (Id). Spites dec YOka Yoshkta, Japan. 

Sabine Appelinans, SelipuiiL det Loura 
Gotano. Italy. 6>Z 6-<k Brenda SCHuSzJWC- 
Corthy (14). Nettwilandb deL Amy FraOer, 
U.Sm 7-6 (7-3). 6-X Gigl Famemdez, UX« daT. 
Notholle Dechy. Fnmcb ^ 4-L 6-1 
Anke Huber (71, Germony, iW. Joannette 
Kruger. Soirih AMCo. 6-Z 6-0> Koran CresL 
Britain, def.Moila-Antenfci Snneha Lorenzo. 
Spain, 6-4, 6-Oe Irina SpMeu (1Z)i Rocnanio. 
def. Eieaa Makarova Rvsml 4^ 04, UMl 
UL Austrto, 6.x 6.x Anno KouinBcava, Russia, 
def- Anka H uber (7), Geimoity. 3-4 64, 6^ 

Suigis Suigstan. Aimenta, def. Johon Van 
Hardb Belgiunit 7-6 (7-4), 6Z 64; Alexander 
Radulescu, GermariK def. Adrian Voinea 
Romonlu. 74 (7-5). X4 6-1, 34. 64; Renzo 
FurkeL Italy, del. Jon Semerbik, NettWP 
landA 6-7 (5-71,6-7 (4-n, 64 6-4 64; 

Dermy SoNford. Brttain. def. NIcolos 
PeieiRL Venezueta, 3-4 6-X 74 (7-S), 6-X - 1 
Patrick Bour,(Sarmony. def. Jeff Sobenstein. { 
U.S. 74 (7-5), 34 Z4 64 9-7) Jevtar{ 
SondKA Spoirb def. MIdnH Tebbult, Aus-', 
tralla 3-4 44 64 7-4 14.1Z- 

Cedric PtannN Franca, def. Javier Frana 
Argentina woBiever. Tim Hanmon (14),. 
Britain, def . Jarame Gotawnt Franca. 74 (7 - 2 
4), 6-1 6-3. Riehay Renebaig, Mimwep^, 
def. Corioc Moya (11). Spain. 64 6-X 6>X { 
Brett Stevea New Zeokina def. Frederfn 
Fetlerieta, DennnK4-4 7-5,6-X 6-2. Sandoif 
Stala AtfsimDa def. EmNio Ahnie& Spoftb 6*. 
4, 64 64 Alexender Rodutasca Ganrianyf 
del. MoizIoMartolil Italy, 6-a 7-5, 64 4 

Paul Heorholi, NHh^nds, def. Todil 
LaiWiom, AustreOa. 3-4 6-X 6-1. 62. BorH 
Becker (8), Gefflierqn def. Thenns Johans^ 
son. Sweden. 61, 64 64 Mldnel sutf, 
Gennany, def. JuNn (XmaMatL U.5. 7-X £• 

DmN Riu Czeoi Republic del. Frandsco 
Oovel Spain. 64 74 (7-5). 64 Qirtatopte 
Vbn Geissa Belglvm, de£ Alognus 
soa Sweden 64 64 61. Gieg Ruseddh 
Britain. Del. Jonoltian Sknk. U.S^ 44 6^ 
1l).646XI1-9. > 

GutBamw Roouk France def. (Joug. 
Ftach. U.S. 6-X 67 167). 6X 61. Amoud 



licalos KtaFer.Germomfr dec Patrick Bouu 
G many, 7-4 74 (7-2), 61; Yevgeny Kafel- 
nl w (3). RuBBkL dec Javier Sanchez. Spobw 
6 , 44 6X 64 John Von LottuoL Nefher- 
k ds. def. Renzo Furioiw Italy. 6X6X63. 
'odd Woortaridg^ AusIiiAl def. Moicos 

0 dtucka SovRi AfriCD, 74 61. 74 (7-3|)t 
h treteo Rios (n. OiRc dsf. Derede Van 
S ^epptagcft Ne l tieiloncl»,6Z 64 67 (1-7). 
brill SwedecL 64 34 6Z 63. 

lAtax O^rleiL U4. def. NavEe Godwin, 
^iilh Africa, 6X 6X 67 (68), 74 (7-5); 
Marie Patchey. BriWrv def. 'nanmy Han 
dhlte. deL Dermis Van SCheppingen. NaltK6 
£pdc 6Z6X 67 n-7). 74 (9-7). 

1 Patrick Raflw (13L AnaWicL daf. Jena 
fcnippschn4GarRnny,6-X44646fl, . 


Rtalmd KraDcak (4), Nattiedands, daf. 
DaiM RIU Otacft RepebiG 64 64 74 
Cedric PtaliriN Franca def. Wayne Fanaira 
0 5). South Africa. 64 6X 63; mchotl SHdi 
Gennany, deL SniKton SIoRb AuUidBo, 6X 
67 (67), 6Z 74 (74). 

Ridley Reneb^ U.S. def. GeEaiine 
Rooux, ProncN 7-X 67 (67), 74 <9-% 6-3i 
Gng RunadsUBiiun, drf. Andrew R)deB6 . 
son BiMil 6-X 64 64 Bidtt StoNG Naw 
ZaotarU dM. Mogmn Nonnan Saiadm 67- 

Tim Henman (14, Britato def. neri 
Hwi1wta.NelherlandB.67 (70), 6X6Z44 
161Z* Mark Wtoodhnie. Australia dcL AN 
noud Oemaiit Franca 6Z 6X 63. • 



CLEVStARD-Pirt RHP Paul Shuoy on 16 
day dbeWed Hat latniocllvo to June 19. Re- 
called LHP Slevt KSne from Bufiaio. AA. 

MiurAUKEE-^lgrBad to terms 3B Jeff On 
fto to Xyear euidmcz eadenrion Duough 

OAKLAND-Tmded OF Gerordmu Banadta 
Bammorefor RHP Jbnmy Havneaund pl^ 

ssAmM-Put RHP Mike Maddux on 16 
doy disobled Iteb nrlraodlve to June 2Z Ac- 

Mreire 1 . Para 0 

Clement Franca def. /Martin Lea Bill^ 4 - 

tfwitod SS Altec Rodrigura tram is-day dis- 


1 A f P 


6 6Z 61 64. WdNid Kroileek (4), NettM6 

abled ItaL 


1 Q 0 L r 

T E U iJ 1 C 

M tandcdef.AndielPo^Refflanta.3-X6-66 

W /O-Vl 5 re J re 

TOiONTd-FIrad Karl Kueli dlmder of 

^ 4 

French Open 

1 t N tw t S> 

B Wayne Fsneire 115), Seuta Africa def. 

playar develepritenl end Rldi Putarwa ml* . 
noiHeagiM pitching aonEnotar. Nomad Jkn 

LMdIng eeurea tewr tourUi and llnal 
round of gggxOM Frenuh Open on 8,526 
meter. (7,122.yard) pan-72 Fmch Nattanal 
come, ftaiyNKCHiit viaN of Parie: 

R. Geosen SJIMcd 
J. Spenen England 

R. RUSSUH. SeoKond 
D, Ctarlnb Ireland 
V. PMM^ England 
IH. Galw EniPaiMi 

S. Vtobsler.EnglQnd 
R.M(Faitonn Eng- 
R. Cotas. Eiratand 
E-Romsm Argenlfna 

T3-6669. 70-277 


Leral ta gdnM sc orasSundrafInIWmBBon 
yen (S87T4KKI) Maew Open get! 
taumamora on B,B2S-yard (6A06ineiur), 
pw-72 TaUnoiM Coimy Clite Bourse in 

B. Wetla, U.S. 
T.lzuwn Jrat. 

T, Nakamura Jup. 
$. Hlgakl Jup. 

R. GtfasoA Canada 
KMIyuM Jop. 

E. Mta^uchl Jig. 
B.Jebn U6. 


72- 65-73-70-280 
73*71 -69-60-281 

73- 73-7069-383 

74- 69-72-70-385 
69- 7I-7S. 70-285 


sarwiDAr, m ORtaGAire. australm 
AusIrsOo 24 France I9 
Auabeta wen tost series 24. 

Saturday. DURBAN. SOUTH afibca 
South Africa IX BflHsh Duns 18 
BriM Lions lead sorieS 2-0. 


Saturday, Hamilton, new zealano 
Hew Zwkuid 6X Argentina 1 0 
New zaalirad won scries 3-fl. 


wtettemSomeodZ Tonga 13 


Borcetom X Reel Bells 2 1 after etera) 





Etana UMtavtaeva Russia def. Natasha 
Zvereva, Bdenis. 64. 64 Marla Alcfondra 
Venta Venezuela, def. Annabel EDweo4 
AastrofliL 7-467.' Ginger Hwlgeso n NhriseiL 
U.5^ def. Lucte Ahl Brttola 6Z 64 

Nolboae TouzIol France, deL None Mlyo- 
gi Japan. 6X 64* Sondrtae Tested, Franca 
def. MbltanSehnqzsr.Cennany.6-X6lk Ines 
Gerradulegul Aigentiin. dof. Melten Tu. 

Nooko KVrauta. Jopea def. Lorise Nte- 
tend Latvia 7-4 62 Mogdeleno Crtybows- 
ka Pehind deL Venus wnitamA U.S. 44 6 
Z 64i Ftarende Label. Argentina dal. Rlto 
Gnn(iaitai)L64 64 

Judith WiHRer. Austria oef. Jane Kondorr, 
Gennany, 7-4 6-Z Magiil Serna Spola def. 
kb U.X. def. CtakaTayldii Britafn 6Z 61. 

Els CoOena Beiglum. def. Paolo Suarez. 
Argerdlna 64 6Z Mary Pierce (9), Franca 
def. Ouminiaue von Rooeb Beigtera 6X 64* 
SaraoRi Paulas (id), Austria def. Krt^ 
Boegea NelheilaiKla, 6X 1 4 6X 

TomorineTonasogata Ttiofland,def. Lud- 
irdta Rletitoimn, Czech Republic 6Z 6); 
Sarah Pltkewsfa Franca def. Francesco Lu- 
UMb Itahb 6X 44 61; Vk^lo Ruano Pos- 
ciraL Spoia def. Sandra Dnpfer, Austria 6Z 
6 Z 

LomaWuodieHa Britata, def.PettvSdmy- 
des SwNzeriaml 64 6-4 Nooko Sowbiiiatsu. 
Jopoa daf. Samontho smntL Britata. 61, 63; 
Eimnenoefle Gogfkinfb SHtlzarSHiX def. 
Catalina Crtetea Romania 34 7-4 61 . 

AtetBondra Obza Petand def. Lenka Ne- 
meckova Czedi RepubllG34 6I.6X Rodho 
Zrebokova Skmdda def. Nancy Ftawr. Bd- 
gtain,6i, 7-&MgiyJoa Fernandez (1 1), U.S. 
del. NocAe Von Latteia Franca 6Z 62. 

Krtsnaa Brundk U.5. def. Ann Gnssraon 
U.S. 6Z 74 (7.51: NKDle Pratt. Austndta. 
del. Kotaitaa Studentaeva Slovakta. 6X 64 
64 Pertrida Hy-Boutals. Conoda def. Mttio 
Sookk JopA 6Z 1 4 62. 

Borbeira Sdietl Austria del. Aso Coitasoa 
'Swertoa 346X64 


Murilnu Htagls (I). SwOzeiloiML oef. Olgo 
BarabonseMkova Betani^ 6-Z 63; Holeno 
Sukovta Czech R^bk, def. Shl-Tliiq Wonq, 
rbiwoa6(k6X Nicole Armdb U.S. def. Lisa 
RayniomL U.S. 146463. 

Amro KgumlluHa RusMa det. BaibamRiF 
tner. Cormony. 4-4 7-6 (9.7), 6Z Mvta Ale- 
tundra Venia Venerueta. cM. Andrea Gtass, 

34 67. Andrew Rlehotrim BrItabL def. 
Juan ARieil Vlluca Spola 6X 34 64 24 6 
Z Mognus Nerniaa SnedeiL def. Goran 
Ivantaevic (2), Ctaoila6a Z4 74 {7-4K 64 

Andrei Medvedev (13), UkrnIna daL Soigb 
Sorgalaa Amwnta. 61. 64 7-S. Byron Btocfc, 
ZkiibabHe def. Doniy Sopstord, Bdteia 6Z 
WllWmoa Britata, 67, 67, 6Z 64 61 . 

Pair Korda (16), Czech Republic def. Merc 
Roaset SwHzectaiMl.6X 6-a 74 (104). Pete 
Sampras (1). U.S. def. Hendrik Oreekinana 
Germony, 74 (7-2), 7-& 7-S, 


Nathalie Tauzkit Franca del. Keny-Anne 
Gusa Australia 64 6-3. Ybyuk BaeukL Ire 
dorwMa def. Ines GonachateguL Argeattaa 

6- Z 6-4 Mogiri Serna Spoia det. semh 
pmuarau. Franca 6Z 6-0. 

Tofflorine Tanasugara Thoftond, deL 
Nooko Suwematsu. Jopaa 6-Z 6Z Mow Jua 
Fernandez (11), U.S. deL Aiakaandia Obza 
Pelan4 64 64. Judith Wteaner. Auslifa def. 
Lmim Woodnffa Britola 6Z 6Z 
Patricio Hy-Bovlota Canada def. Amanda 
Coeizer (A), Soutn Africa 6Z 61. Dmtaa 

Chtadkeiia Czech Republic del Ltadgoy Oov- 

enport (SL US.. 7-4 62 Rodko Zrubokova 
Slovakia def. Nicole Pmlb Austiola 64 74. 

Sondrine Tested. Franca def. Corim 
Muroriu. U.S.. 67 (67). 6-X 61, Jana Nevol- 
no {3}. Czactr RepubBc def. Eteno Uttiovk 
sova Russia 61. 6a. 64. Magdalena Gn^ 
bowska Poland ditf. Barbara Sdiett Ainlrta, 
44 6-X 62 

Mmv Pierre (U), Franca def. Virginia Ru- 
orn Peecuel Sputa 64 34 63, Cota Leon 
Garda Spoia def, Crisflna Torrera-VolanL 
spoirv 64 6Z 6X'Me9rieaeiw Mefeevd 

Butgoiia def . (ainger Helgeson NIelm U£„ 

7- S 7-S, 

Aiontxo Sonchez Vtairia (B), Spola def. 
EnmunuefteGHliaRd SwItzolM 64 6Z 
Momeo Seles (31, u.S. det. Kristtaa Brandi 
U.S. 67, 6X 6-3 Ftaienda Lobot Aigenttaa 
def. Eta Cdiiena Baigivnv 6Z 61 
Nooko Kijtaiuia Japaa det. Barbara 
Paulua (16), Austria 67. 61 61 

HateitaSciknaCzactiRepolillcdBr Core 
cMM Morilnez (10). spobL646Z Irtaa Spir- 
leu (13). Roinonia del. Glgl FemmdaL U.S. 
6X 6 1; Martina Htaqb (I ), SwItzeiteiiA dpf 
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PAGE 21 


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Mike TysoD taking a bit« out of Evander Holyfield’s right ear in the third round of their championship fight 

FIGHT: Tyson Disqualified After Biting Both of Holyfield’s Ears 

ContiDDed from Rage l 

seconds left in the roujid . HoJyfield, Worker Gives Eerie Gift to Holyfield 

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seconds Jeft in the round. Hoiyfield, 
who won ihe first tworound* .on all three 
judges' cards, said it was «'iear Tyson 
act^ oot of despera.tion it. a fight he 
knew he amid not win. 

*‘It doesn’t show any cc.urage when 
you foul and uy to get out of it,*' said 
Holyfield, who headed to a nearby bos> 
pital after die bout 

Said Duane Ford, who w ^ one of the 
judges: "He bit a hunk ou.( of his right 
ear, and be spit it on the fit ,or." 

The disgnalificatioo trig£ ?.ned a chaot- 
ic scene in tbering, when Tyfr;(xi and Tim 
Hallm ark, Hriyfield’s comet, man, start- 
ed scieamiog at each other triggering 
Tyson to chffl^ H all mark aik-j Holyfield 
a^ knock over at least one po 1 jce officer 
hired by the hotel for securir . 

Tyson, who was being cor|,tFoLled by 
Hot^eld in the three round's that to^ 
place, was pulled back by a , swarm of 
s^uriQr guards. But minute..; later, the 
fighters were still in the ring, . and Tyson 
unsuccessfully charged at the ; Holyfield 
comer emee again. 

When Tys(» and his grouf . finally left 
the ring — about a minute /after Holy- 
field had left to cheers — ^ th^r were 
booed raucously and hit iwith liquid 
thrown from the seats abov4 the MGM 
Grand Garden areha wallc.way. Then 
someone threw a bottle of nuperal water 
at the group. Security officers flooded 
the area to. prevent a smaEI riot after 
Tyson and ms handlers nufide a brief 
atten^nsjump into the stands. 

Witnesses said Tyswi niLide it a few 
into the stands, and sv. 'ung at sev- 


• . reiy and into ^ drying room.'; 

. ;J., Half an hour af^ die idisqoalific- 
;. -•/. ation, Ty^'scbffed at die seriousness 

_ of his actions; 

"Holyfield’snol the touglk'\ warrior he 
says he is," Tyson said. "He ;got a little 
I nick cm ^ and be quit .Holyfield ' 
, ■ , ' didn’t want to fight." 

Tyson’s camp had compla.?**®*! that 
Holyfield pui|^ely butted in 

• ' I*; their first in November. 

On Saturday, Tyson (45-3; i- said he 

. ‘"r* ^ acted in retaliatitm for a seco ,nd-rouzd 
■ clash of beads that opened a cu 

righteye. “He butted me in ih|® second 

round andhe butted me a g ain j." Tyson 
said. “No w took points ft ']C^ hint 
Whar am I supposed to do? T his is my 
career. I’ve got children to rah 'f- 
■_ ‘ ‘Regaidless of what he did, he butted 

’ me for two fi g hty. l.^ > ok at mf :• Look at 

me. Tm going logo home anc ™y 

The Associaied Press 

LAS VEGAS — A hotel worker 
gave Evander Hoi}^ld a present 
after bis fight with Mike Tyson — the 
piece of Holyfield's ear that Tyson bit 
off in the tiiird round. 

Mitchell Libonati went into the 
ring afto' the fight ended in chaos 
afECT the third round and found the 
piece of ear on the canvas. He 
wrapped it in latex ^oves and took it 
to Holyfield's dressing room, where 

are going to be scared of me. I addressed 
it in the ring." 

Tyson's $30 inillioD purse was being 
withheld pending a Nevada State Ath- 
letic Commission hearing, said Marc 
Rattier, tte commission’s executive di- 
rector. The beai^g is scheduled for 

Hol^^eld, who raised his record to 
34-3 and received $35 mlLUon for the 
bout, said Tyson simply looked for an 
easy way our; ’ ‘Fear causes people to do 
things to get out of it" 

line, the referee, said he took two 
points away from Tyson after the first 
bite and the push. He said he told Tyson 
that a second bite would result in dis- 
qualification. “How many times do yon 
want a guy to get bit?" Cane sud. 

Tyson, who began the fight trying to 
avoid the recklessness that led to defeat 
in his first contest with Holyfield last 
November, bobbed and weav^ But he 

and hooks missed Holyfield re- 

Lane, who r^laced Mitch Halpem as 
the referee after a protest by lyson’s 
managers caused Halpem to bow out, 
was pres^ into action early when ±e 
filters clinched 39 second into the 

As in the first bout, Holyfield looked 
biggerand stronger than Tyson, shoving 
him aside when he wanted to and land- 
ing the harder shots despite Tyson’s best 
defense. A lefi hodc-Ieft hook-straight 
right combination at 1:45 of the ^t 
caused Tyson to stop in his tracks and 
shake his bead. 

Die ban by Holyfield — ruled ao- 
cidentalbyLane — occurred early in rbe 
second round, and Tyson ’s right was 

sliced and pou^ blood imnwdiately as 
Holyfield dominated the actUm. 

Tyson came rc&ring outofeoroerand 

be told the boxer's trainers, “I have 
something he probablywants." 

Libonati described the ear as “oot 
bloody, like a piece of sausage." 

Hol^ield was taken to a hospital 
after the fight, where surgeons were 
expected to tiy and rqiair his ear. It 
was not known if they would use die 
part Libonati found. “All 1 wanted 
out of it was to meet Evander," said 
Libonati, who worked tte fight as a 
glove cutter and ring cleaner. 

into the middle of the ring well before 
the start of the third round, but he did not 
have his mouthpiece and had to return to 
his comer. 

But for what happened later, he 
needed no mouthpiece. 

Tyson was having his most efiective 
round in the third, and would have won 
it on all three Judges' cards he hadn’t 
earned the two-point penalty. 

After the first biting incident. Holy- 
field yelled in disgust, pulled away and 
jumpM up and down several times in 
rage as be showed his ear to Lane. 
Holyfield 's comer protested tbroagbout 
the ensuing delay, and they had orUy to 
wait seconds before Tyson acted up 
again. "The first time, my comer told 
me to just lu^ cool," Holyfield said. 
"Then be spit his mouthpiece out and 
bit me again." 

After the second bite, Holyfield 
screamed something at Tyson, who 

to come and get hun. Holyfield surged at 
Tyson, the two exchanged big shots in 
the middle of the ring, dieo the third- 
round bell rang. 

With the round was over. Lane 
marched to Tyson's comer and waved 
off the fight as the crowd roared in 
outrage wfiUe watching the large-screen 
replay of die first bite. 

■ Gunfire Heard After the 

Thousands, of people panicked when 
shots imig out at &e MGM Grand Hotel 
following the Holyfield-Tyson fight. 
The Associated Press reported from Las 

A Nevada Highway- Patrol spokes- 
man. Steve Hamey, said no one was 
wounded during the 10:30 P.M. shoot- 
ing. The police sealed off a two-bloric- 
long strip of Tropicana Avenue to try 
and di^jeise the crowd. 

British Li ons Win Series in South Africa 


Stout defend under extren • 
and the accurate boot of Weis P j 
Neil Jenkins gave the Britisl } 

Lions only their second series ■ victory m 
South Africa. ' . . 

The Lions spent much of y®®*®** 
defending on . their own gt 
Duiban on Saturday. TT 
outscored by three touchdow j "® “ 
but won the match, 1 8-1 5 /- q 

Tte Lions lamed fiom 1 f 
witii under half an hour left to 


Jenkins, who kicked five p ^ 
of five, brought the Lions 
English center Jeremy Gu' 
slotted a drop goal three ir 
time to give tile Lions the \ 

m Jo^bujg. July 5 ^ 

a- from the 
Sliced well- 

“^jMsfromscrtimhalfJ. Moni- 
debutant P« Sbeit 

j andflyhalf 
>em missed 
Ida penalty 
concede irossedhalf 
«^*^R^??.time tiie Lions c lore intense 
funder farm I The South 
very few |al — three 
^K^had^mkicksaigG frsions- 

u^.^*tenali. retelling 


field with some poweifril driving and die 
Lions took the in the 17tb minate 
when Jenkins kicked a penalty from just 
inside the Springb(& b^. Ten minutes 
before the break he added a second. 

South Africa hit back when van der 
Westbuizen bunowed over the line from 
close range for a try. Mmitgomery 
missed the cmiversion, but at the start of 
the second h^ he scored the try that 
gave South Africa the lead. Jenkins then 
kicked his third penalty but Joubert 
shrugged off John Bentley and dien Jen- 
kins to score South Africa’s third try. 

Joubeit nnssed that conversion and 
after Jenl^ leveled the score, the Lions 
finally mounted a threatening attack that 


Jeremy (fuscott, who kicked the 
winning goal, celebrating victory. 

ended with Guscott kicking the winning 

Asked how good he thought the Lions 
were, Carel du Ptesis, the South Africa 
coac^ could only offer "You have to 
credit them for staying in the match." 

AustraBa 36, Franca 19 Australia's 
coach, Greg Smith, said his team had 
done the Prraefa a favor by beating them 
in the second and final test in B/ishane 
on Saturday. 

Smith, who had accused French play- 
ers of repeatedly breaking the offside 
rules and illegally trying to their 
t^^nents’ possession, said they could 
learn from their experience. 

“I know they have reacted fairly an- 
grily to what I said, but we are Bying to 
do &em a bit of a fhvor," he saio. 

Australia, which won, 29-15, in 
Sydney a week earlier, took a 17-0 lead 
in the first 20 minutes with tries 
forward Richard Harry, winger Ben 
Tune and center Jason Little. 

Ibomas Castai^nede replied with 
France’s only try in the 36di minute. 
Christopfae Limaison converted that and 
kicked five penalties, but Australia de- 
fended well late on to protect its lead. 

Referee Clayton Thomas twice 
warned the captains about rough play. In 
the worst incident, Troy Cc&er and Fa- 
bien ^lous wrestled each other to the 
ground before die Australian landed sev- 
er^ punches to his c^rponent’s head. 

“When you've got scxneone's 
knuckle buri^ in your eye socket, the 
first thought is self-preservation," 
Coker said. 

How rf i al a n il fi?, A rim i tina lOThft All 

Bl^ks scored nine tries, by nine dff- 
ferent players, as they beat Argentina in 
the second test in Hamilton, New Zea- 
land, on Saturday. (AP, Reuters, AFP) 

Argentina Stops Boys From Brazil 

High-Scoring Favorite Falls in World Youth Cup 



Brazil’s goal-scoring spree 
at the world ycxith soccer 
charapionshm came to a halt 
Sunday in Kuching, Malay- 
sia, when it lost, 2-0, to Ar- 
gentina, the defending cham- 
pion, in cbe.quarter-fuals. 

Argentina defended for 
most of the match, then struck 
twice in the last JO minutes 
with goals by the substitutes 
Lionel Scaloni and Martin 
Perezlindo. That knocked out 
Brazil, which had scored 10 
goals in each of its previous 
two umes in the worid nn- 
der-^ championship. 

Adailtoo Martins, who had 
scored 10 goals in the tour- 
nament, acid Alex De Souza 
coissed easy scoring oppor- 
tunities as Aigentioa 
weatiiered the Brazinan at- 
tacks. Diea, on a rare Ixeak- 
away in the 81st minute, Ar- 
gentina put the ball where 
Brazil hadn't — in the net 

Scaloni, who had come on 
in the first half after an inji^ 
to the captain Di^o Mamc, 
beat the Brazilian goalkeeper, 
Marcelo Moieira, with a stun- 
ning shot from a narrow 

Perezlindo, who replaced 

Diego Quintana, converted a 
pa w from Pablo Aimar in the 
last fflinuie to seal Argen- 
tina’s victoiy. 

“I don’t know if we de- 
served to win," said ScalonL 
"We're tiutw^ and, lament- 
ably for BraziL they’re not 

Socciit Roonbvp 

1 wouldn’t like to be in their 

Jose NestOT, the Aigoitina 

coac^ said, “We h^ two 

rhanetm to SCOre and W6 tOOk 

And Antonio Barroso. the 
Brazilian coa^, s^ “In 
footiiall diere is no friira^ but 

tmW a Winns and a loser." 

fo the next round Argentina 
faces the R^xiblic of freland, 
which beat Spain, 1-0, in 
Shah Alam near Kuala Lum- 

pur. Ghana faces Uruguay on 
Wednesday in die other semi- 
final in Johor Bahiu 
Ghana, which wcui the 
Wmldunder-17 title two years 
ago, Japan with a golden 
goal fiom the striker Peter 
Uori-Quaye six minutes into 
extra-time. The two sides 
were level at 1-1 at ftiU-time. 

The Japanese striker At- 
sushi Yanagisawa had scored 
his fifth goal of Ae tourna- 
ment to equalize Joseph An- 
sah’s eighth-minute goal. 

Uruguay beat France, 7-6. 
in a pa^ty shootout in Shah 
Alam. France had taken the 
lead with a goal by David 
TTezeguet in £e 27A minute. 
Uniguay drew level with a 
strike by l^colas Olivera, in 
the 68dL France held the ad- 
vantage fOT most of the game 
but was unable to score. After 
extra time, tiie match went to 
penalties. It was the first 
shootout of the touruament. 

France began the shootout 
badly when goalkeeper Mick- 
ael Landreau’s luck was 
saved by Gustavo Munua. 
But Uruguay's second shot 
by Walter Coelbo then hit the 
to. ]toh team convened six 
penalties before Munua saved 
against Nicolas Anelka of 
Rrance and Carlos Diaz 
scored for Uniguay. 

Spain, which had won all 
three of its group matches, 
could not crack the tough Ir- 
i^ defense. TYevor MoUoy, 
who stai^ despite a thigh 
injury, scored the match-win- 
ner wi& a penalty five 

PnnwwiliKali/tpnBrp Fi»nrr"IViw 

Nicolas Anelka of France dribbling past Walter CoeUio of Uruguay on Sunday. 

minutes after half-time and 
was (hen promptly replaced 
by Stephen Muiphy. 

WORLD CUP Uzbekistan 
beat Cambodia, 4- 1 , in nmom 
Penh on Sunday to finish at 
the top of Asian Group 5 and 
advance to the second Asian 
round of qualifying for the 
1998 World Cup. 

Uzbekistan has one group 
game left, against Yemen, but 
cannot be caught. 

Kasikstan also advanced, 
li beat Iraq, 3-1. in Almaty on 
Sunday to clinch fust place in 
Asian Group 9. 

Japan moved a step closer 
to a first appearance in the 
World Cup finals when it 
drew, 1-1, with Oman in 
Tokyo on Saturday to clinch 
first place in Group 4. 

Japan took the lead with a 
first half header by Hidetoshi 
Nakata but Oman substi&ite 
Maidi Fatah Samir leveled in 
the 64th minute. 

Hernandez scored his sixth 
goal of tite Copa America as 
Mexico beat P^, 1-0, in the 
third place play-off in Omro, 
Bolivia, on Saturday. 

Hernandez settled the 
game with an 81st minute 
header that also put him two 
goals clear of Brazil's Ron- 
^do as the competition's top 

snuN Luis Figo scored 
five minutes from the end of 
extra time to give Barcelona a 
3-2 victory over Real Betis in 
the Spanish Cup Final in 
Madrid on Sanmray. 

ll gave the Catalan club a 
record-equaling 23d Cup vic- 
tory. Athletic Bilbao has also 
won the Cup 23 times. 

The victory brought to an 
end Bobby Robson's year as 
Barcelona's coach. Rotom 
has another year left on his 
contract with the club, but he 
has already said he will not 
stay on in Us present role. 

Barcelona was outplayed 
for much of the match and 
twice trailed. 

Alfonso Munoz put Beds 
ahead after 1 1 minutes. After 
a bruising first half, Figo 
equalized in the 43d minute. 

Finidi George put Betis 
ahead again in the 82d 
minute, but three minutes 
later Juan Pizzi scored Bar- 
celona’s second equalizer. 

BASKETBALL to the Vaiih for Free Agents Eiying and Jordan p.30 SOCCER Boys From Brazil Are Beaten p.21 

PAGE 22 



World Roundup 

Goosen Wins Easily 

GOLF Re6ef Gooses double bo- 
geyed die final hole Sooday but still 
woo die Fco^cb Open by strokes. 

Despite going into the lake oo 
the lak bole, Goosea ■ won bis 
second EoFOpeao Tour, title by 
three strokes. The 28’year-old 
South African never trailed after 
his secoix) shot ou) IJunsday’s fust 
iDDod found die hole feu an e^le 
two before the rain interniptUKis 
forced a two-round final day. 

Goosen shot twcHinder-pv 70 in 
both romds Sunday for a 17-under 
tc^ of 271 on die Nadtnal golf 
course near Paris, tiiree better that 
England's Jamie Spence. (AFP) 

Thai Keeps Tide 

boxuhg Thailand’s Pitchit Siii- 
wac defended his WBA juniorfly' 
weight championship with a 12- 
rocind anaoirnous d^iskRi over 
Sooth Korean Lee Sang-chol in 
Bangkok on Sunday. 

mchh dominated mneh of the 
12-round bout with punishing 
percots. It was his defense of 
the dde he woo in December/APJ 

• Herbie Hide of Britain poun- 
ded Am^can Tony Tucker to de- 
feat in the second round to win the 
vacant World Boxing Association 
b^vyweight tide in Norwich, 
Eogi^, cm Saturday. (Reuters) 

Turkey Beats Israel 

BASKETBALL Turicey Opened 
the second round of the European 
chainpioDShips wife an 81-71 vic- 
tory over Israel in Gerona near 
Barcelona on Sunday. In the other 
second-round group, six 
Yugoslavs scared in dwble fig- 
ures as feeir team beat Germany, 
88-73, in Badalooa. (Reuters) 

Spfto IVua j Ku^ji 

Heiuiing Harniseb cif Gennuiy 
dnnkiiig against Yugoslavia. 

Red Wing Out of Coma 

ICR HOCKEY Detroit Red Wing 
Yladuoir Konstantinov and the 
team's masseur are emera^g fioci 
comas, doctras said Sunday. 

Konstantinov and Sergei Mnat- 
sakanov have been npgis^d to se- 
rious condition. They h^been listed 
in oitical ctmditioa since June 13 — 
sfat days after the Red Wit^ won fee 
Stanley Cbp — when fee iimdusine 
feey were in crashed into a tree. 

Koostaotinov is able to open his 
eyes, sit in a special chair foe a few 
hours a day and is "more wnkeftil*' 
in the presence of his wife, Irina, 
said Dr. James Refebins. (AP) 

I)esGEt IxkAi Dedy 

HORSE RAcmo Deseic King, 
winner of fee Irish Guineas 2,000 last 
mooih, completed a Qassic double 
far Iri^ trainer Aiden O'Brien by 
ndnning the Irish Derby tm Sunday. 

The fevorite, Silver Patdar^ 
feared the lead wife The Fly fra most 
of fee l^miie race. But Desert King 
came fiom the middle of fee pack w 
sw^ past die slowing levees. He 
finished a half-lengfe ahead of Dr. 
Jfenson, wife Frmh entiy Loup 
Savage diini. (AP) 

Victory for Henman, the People’s Choice 

By Ian Thomsen 

/luenutianat Herald Tribuie 

WIMBLEDON. England — The 
great tournament, almost drowned, 
abandoned for days to fee elements, was 
startled awake by 27,500 previraisiy un- 
invited observers. Wimbledon pro- 
ceeded to amaze experts by jump^ out 
of its sickbed and then — against its 
bener judemeni — cheoing, chautiog, 
occasionaiUy berating and altogefeer 
driving Tim Herunan through one of fee 
most extraordinaty matches. 

Henman, a Bnton and the No. 14 
seed, beat Pan! Haarfaois of fee Nefe- 
erlands, 6-7 (7-9). 6-3, 6-2, 4-6, 14-12 
— a victory of fee people, by fee people, 
fbr the p^le. Most of the pc^le at 


Center Court had spent Saturday n^t 
sleeping on fee public walks in a line five 
miles (eight Idlraneters) Icmg. leading up 
to fee usially impaietrable gates of the 
world’s oldf^ tennis tonixiameot 

They had come because Wimbledon 
had no choice but to 1^ them in. Two 
days in a row had been washed out 
entirely by rain for die first time since 
1909. For only die second time in 1 1 1 
champiraish^s, fee gates were thrown 
open for a maximum of £15 ($24) a 
customer, regardless of his ra her fiui^y 
connections. As a result, those who 
came really wanted to be tiiere. 

Ihey attached themselves to an over- 
achieving 22-year-old from Oxford 
with raie title in his young career. If 
Henman somehow becomes fee first 
KngMshman to Win Wimbledoo in 61 
years, be will know whom to thank. 

AU-told, four British men had made it 
to the third round as of Sunday, an open- 
eta zeooid at Wimbledon, and one better 
than fee survit^ group of Americans. 
The contifluatioa of tiiat success was 
built step by st^ as the gates were 
ra)ened for a ' 'Petmle's Sunday" fbr fee 
f&t rime since 1^1, which many be- 
lieved to have been Wimbledon ’$ finest, 
most enthusiastic day. 

This tiore tiiiiigs did iiof run as prem- 
isingly. The &is began strearmng 
dirough slowly at 10 Aid., held im by 
security searches, and when No. 3 Yev- 
geni Kafelnilcov of Russia be^anplay an 
hour later wife a fora-set victory over 
Javier Sanchez of Spa^ half the seats at 
Center Court were still en^. Across 
the grounds only a couple tbousaod 
were watching No. 9 Maiy Pierce beat 
anotiier Spaniard, Virginia Ruano Pas- 
esd, in straight sets. 

On one of ^ craner courK, where 
No. 3 Jana Novotna was winning a 
difficult 6-1, 4-6, 6-4 over a Russian — 
Na 24 Elena Likhovtseva — there were 

mg her loss to Denisa Chisdkova. 

maybe 200 people. Every hour was pre- 
cious to feose who had spent the night 
waiting, though fee All England Club 
doesn't really like fee idea ^ the com- 
mon people taking over. Never miiKi 
their statements to the craitrary. 

As Henman was fighting fra his 
counuy on Center Court, Greg Rusedski 
was beating a follow Briton, Andrew 
Richardson, 6-3, 6-4, 6-4, in a tiiird- 
roond match on court No. 1. The crowd 
gave the louda support to Rusedski, 
affirming lum as a true Brit after bis 
inmiigradoo' from Canada just a few 

Outside Center Court in fee late af- 
rernoou, many spectators stood around 
watching play on the smaller conns wife 
blauik stares. The night before wu start- 
ing to catch up wife feem, and, for one 
example, they had little to cheer for 
peisonally as Magnus Norman of 
Sweden was losing to Brett Steven of 
New Zealand, 6-7 C7-9), 6-2. 6-3, 6-1. 

On Saturday, Norman had upset No. 
2 Goran Ivanisevic, 6-3, 2-6, 7-6 (7-4), 
4-6, 14-12, despite a Wimbledon-record 
46 aces by the CTOatiaxL In fee filfe set 
Norman bad sufiered an irregular heart- 
beat, wl^h he must deal wife from time 
» rime, and required medical attention 
on court as he clutched hv chest. 

Tliis was fee same Nonnan who 
knocked Pete Sanyras out of Che French 
^lecafow wedcs ago. He was unable to 

consult wife his doctor before losing in 
the third round to Steven. Every fow 
minutes his audience would look away 
frran him toward Center Court, and tbie 
scoreboard that described the cheering 
and groaning tnairift. 

Henoiaa created fee groaning in fee 
first set, when the support seemed teo 
muchftrhim to cany, ne wasted a sextet 
of set points, double>-faalting on three of 
them before Haarhuis broke him to take 
the lead. 

Tbe 31-year-old Dutchman seemed 
more comfortable than Henman. In the 
1991 U.S. Open quarleifinals, Haaihuis 
had been in the same kind of difficulty 
during a four-set loss to Jimmy Con- 
nors. As he entered Center Court he took 
in the surroundings. When he left al- 
most four hours luer. he did so without 
bowing to fee Royal Box. so spent and 
upset was he. But then Henman forgot 
protocol too. R was that kind of day. 

Henman had won the next two sets, 
then was overtaken and dragged by 
Haarhuis into a fiffe set. The largest 
moment of Henman’s career seemed 
be>'ond him when, in fee seventh game, 
he badly jerked an overhead into fee net 
to lose serve. Three games later, Haar- 
huis was serving for fee match. 

The two players were sitting in feeir 
chairs, pretending to be oblivious as the 
crowd chanted "Henman, Henman." 
When play resumed the emotion spilled 

Declaring Queen Steffi Dead, 
Princess Hingis Marches On 

By lao Thoinsea 

Imemarvivl HemU Tribune 

WIMBLEDON, Eogland ^ After 
moving into fee fourm round wife 
linie trouble, it was pointed out to No. 
1 seed Mar^a Hingis that she was 
plowing through the Wimbledon field 
without fee injured Steffi Graf, fee 
seven-time efajunpioo, in ber way. 
The 16-year-old Hingis would have 
none of it. 

"If she’s going to comeback again, 
fbr sure it's not going to be the same 
Steffi as sbe was before," Hingis said 
after her own 6- 1 . 6-3 victory over fee 
Afflericao Nicole ArendL 

"You could see it already now, that 
she didn't play as well as before. 
She's not fee youngest player on fee 
mur anymore. 

"What sbe achieved, it's great, she 
won all the Grand Slams, and she had 
a great career. And if she’s going to 

come bade it's going to be very 
hard," Hingis went on. "For me. I 
can’t really talk about it because her 
career is almost over and I'm at fee 
beginning, so 1 don’t really care be- 
cause tbm are so many ocher play- 

In the other half of the draw, Na 2 
Monica Seles came back from a Sat- 
urday-night deficit to beat ber Amer- 
ican compatriot. Kristina BrandL S-7, 
6-3, 6-3, on Sunday and advaiKe to 
fee third round. 

No. 4 Richard Krajicek, the de- 
fending ebampioo, beat David Rikl ^ 
fee Czrab R^blic. 6-4, ^3, 7-S. 
Krajicek will now meet No. 14 Tim 
Henman of Britain in the fourth 

Michael Stich of Ger man y, fee 
1991 chanmion who is retiruig this 
year, beat Justin Gimelstob of the 
United States, 6-3, 6-7 (5-7), 6-2, 7-6 
(7-4). to reach the fourth round. 

over onto the grass court more severely 
than any number of days* rain. There 
was yelling as Iftrarhuis served, cheer- 
ing as he double-faulted twice in a row 
— once on match point, the only such 
chance he would earn. 

Haartais played too quickly, driven 
under fee currents of the British crowd, 
while Hbninatt learned to surf. He broke 
back and they played another 16 games 
on serve;, evenly, the equivaleat td an- 
other set and a half under the most 
murderous circumstances. 

This was tennis as it should be. There 
must have been cringing from members 
of the club, but feeir CraAre Court is not 
a labraatory. and fee players should not 
be scientists, feeir wh^ clothes aside. 

Wife a strong serve, Haaihuis beat 
back one mateh point by Henman in the 
24fe game. In the 26th Haarhuis missed 
his first three volleys. Three match points 
for Heoman. Ete wasted no time passing 
Haarfams down fee line wkb a fbrdiand 
and the enonnous noise awakened fee 
inenMsty of I^ Perry, t»feo never would 
have beard such a racket in his day. 

Outside, elsewboe oo the grounds, tte 
other thousands could bear and they 
cheered, too. weai^ fedr round purple 
suckers — on their foreheads, on feueir 
jackets; "Fve (Queued at Wnnbledoa 
1997. " The sticks were everywhere, on 
die stairs, aloiu fee patte, fee walls. It’s' 
going to be beu to gk rid of them all 


^ms f reach 


iVew Ferf^^ 

Powers ^rman to 


• Associated Press 

1 ,. .^^70URS. France — Mi- 
Sfecr drove ferougb bofe 
cl^l Senurn^^^ Sunday to capture the 

u and open up a 14- 

French drivers’ 

pomt lead tnj^ 

chmtyiOTS^ used a new Fcnari en- 
Scht^ti,y strategy to beat Heinz- 
who drove a Williams- 
HaraldFMr^ fean 23 seconds. Ed- r - 

RmaulL by |jj ^ Ferrari, finished* V- 
die Irvine, > 

-jomeot; Ferrari is a lot more 
fitey were at the be- 
season, and Michael is the 
Frentzen said. 

‘^Ser finished 72 laps of the 
(2.6 mile) circoit in 1 
J'^^W“Jfjotes, 4.92 seconds. He av- 
IW® Idlometers on hour (115 

standings, Schumach- 
^ 17 points, ahead ofJacqves 

Irvine is ^ 

,Kr shot ahead from the pole 

drove soprtty 
late ut race. He said he 
change to wet-weather • - 
thought fee rain might 
w ray position, it was about 


dark, but up further bac^ so I 

_!aild be a short shower. 

lap, Schumacher slipped 
isiv «k* But he controlled his car, 

Iz the roadway, and still had 

gap over Frentzen wife four 
“'Strain slowed. 

it was tite right decision." 

not to take'*® ^ ^ *® 



on to his 2Sth career For- 

.‘•'W diis season. 

He has won 

six times in a Ferrari 

Rrtiii Fptran cars were using new 
m^eng^ for the first time in a 

™5i.aa s.irjpy moved Schumacher into 
« Clark and Niki Lauda for 
RM ^ rfil all-time Fonnula One vic- 
wumph ahead of fee five- 
-hampioa Joan Manuel Fan- 

fee! rain, Scbumacber was 
-fastafeanF^ "Def- 
a lot quicker when it was 



was fourth in a Wiliiams- 
D-rslnUffSdiug on the final turn while 
2S!?Tri5tertSe Irvine. Jean Alesi was 

trying to 
fifth in a 
time to 
of Alesi. 

ced^, wj 
lap but 

eiiettoa-RenaulL Schumach- 
bffotber, Ralf, was sixth in a 
t almost a hm behind. 

I] cars skidded in ^ last lap. 
slid ofi attempting to para 
begot back on the track in 
Id bnro fourth place just ah^ 

in a McLaien-Mer- 
|s in fSfe place enteiiira the last 
' ^ and finish sev- 

[hmnaefaer also slidoff. But his 
brother, on his own last 1^, 
let Rg|f rf^ before finishi^ 

tlterace. L 
from Mic! 
one. Or 
present ft 
er Schu 

y lucky to get fee extra lap 
I," Ralf said. "I owe him 
ips this is his birthday 
me tomoriow." llie yoong- 
her turns 22 on Monday. 

T act wwld champion, Danon 

Hill, skidd sd off on fee first cuiyeafer 

the start, t amaging his front mag. ne 
reSiJSda tbe?nd of the first 

"I am ra 

Hill said. 

so far this 

' flliaim -Rgigufc 

we got a finish in," 

Ttef isprei^tes. I suj 



Evety coumry has its own AT&T Access Number which 
makes coiling from France and other countries really 
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JTET Access Nonben 



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