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The World’s Daily Newspapei 

Paris, Monday, June 23, 1997 

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No. 35,554 

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Weak’ U.S. Environment Policy Annoys Partners 

President Clinton bolding a cowboy hat as be bugged Prime Minister Tony Biair in front of a Denver restaurant 

. By Brian Knowlton 

International Hmld Trihmc * ’ 

i ■ — ■ 

DENVER — Ending a summit meet- 
ing that saw (be admission of Russia as 
an almost equal member. President Bill 
Clinton said Sunday (bat die eight na- 
tions would take *' ‘new straw to prepare a 
new foundation for die 21st century." 

The final oommuniqnd from tbe Sum- 
mit of the Eight represented a defeat for 
die Europeans on fee environmental is- 
sues of global wanning and deforest- 
ation- They had argued for tougher lan- 
guage than the Cfinton administration 
was willing to accept 

The leaders also warned foe Chinese 
that they must protect democracy in 
Hong Kong once they rake over the 
British colony cm July L 

But Mr. CUnton’s claim at foe open- 
ing of the event that foe vibrant U.S. 
economy provided a model for other 
industrialized nations produced sim- 
mering dissent and pointed wants from 
some Europeans. 

Prime Minister Jacques Chirac, asked 
if France should emulate foe U.S. econ- 
omy, replied bluntly: “No. of course 

not Each country has itsrrwu model.” 

Discussion of foe “American mod- 
el'’ persisted throughout foe weekend. 
Most Europeans Said they admired foe 
U.S. economy’s capacity for job cre- 
ation, but had serious concerns about foe 
quality of jobs being produced, foe 

yawning income gap 'in America, the 

. B 

Despite - triumphalism, is American 
model best? Page 2.* Yeltsin sod 
Chirac hold talks. Page 2. • Russia 
joins Paris dnb. Page 12. . 

insecurity of older workers and even of 
American values. ... 

“How can you have a country where 
2 percent of foe adult population is 
incarcerated?” . asked Dominique 
Stranss-Kahn, foe French, minister of 
foe economy, finance and industry. 

Added Mr. Chirac: “We have oar 
traditions, our model, and we plan to 
Stick with it” 

The gathering’s brief discussions on 
the euro, the planned single currency 
that will form the focus of European 
monetary ration in 1999, were summed 

up in a sing le paragraph in the final 
economic statement 

“We discussed EMU, including its 
intfanari nnal implications,” foe state- 
ment said. “We welcome foe efforts of 
European countries to achieve a suc- 
cessful introduction of foe euro and a 
well- functioning EMU, underpinned by 
sound macroeconomic and structural 
policies, that would contribute to foe 
St ability of the international monetary 

: Comments from the Europeans went 
even further, brushing aside any weak- 
ness-in the language of tbe statement to 
make clear that the euro should be 
treated as a feet of life. 18 months before 
its inception, wife no chance now for a 

Chancellor Helmut Kohl of Germany 
said to reporters that there could be no 
question that monetary union would 
start as planned in 1999, despite the 
problems many European countries are 
racing in meeting the economic targets 
to .qualify. . 

“I have never doubted this,” Mr. 

See SUMMIT, Page 4 



■ »■* 
■ ^ Atl 


i * 

Protocol Gaffes at the Talk-a-Thon 

By Peter Baker 

Washington Post Service 

DENVER — Maybe it was an in- 
ternational having ntoal for the new 


As world leaders at the Group of 
Seven summit meeting gathered in the 
blue-carpeted conference room of the 
Denver Public Library on Saturday 
morning, foe recently elected prime 
minister of Britain. Tony Blair, ap- 
proached foe large wooden circular 
table only to discover he had no chair. 

Aides scrambled to find the weU- 
stnffed, high-backed chair that should 

have accommodated foe perplexed La- 
bour leader at his first global summit 
meeting bat found only a smaller one 
instead that made him look, well, 
something less than dignified compared 
with his counterparts from Europe, Asia 
and North America. 

Despite months of planning and the 
involvement of thousands of U.S. and 
foreign officials in preparing fob three- 
day talk-a-tbon in foe Rocky Moun- 
tains, some of the tittle details seem to 
have eluded White House organizers. 

Take the opening dinner ceremonies 
Friday night, for example. The metic- 
ulous schedule called for President Bill 

Clinton to arrive first at the massive, 
red-brick Phipps House estate so that he 
could greet each foreign leader, one at a 
time, on a red carpet while a four-man 
military honor guard stood at attention. 

The first limousine arrived carrying 
the presidents of the European Union 
and European Commission, who attend 
as observers. After Mr. Clinton escorted 
them inside, he re-emerged in time to see 
Mir. Blair’s car pull up precisely four 
minutes later, as planned. Then another 
four minutes later came Prime Minister 
Romano Prodi of Daly. But Prime Min- 

See GAFFES, Page 4 


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LarVaoiW to nt 

Hie smnmiteers posing in juenver mis weeneno i [rom mi): Jacques sanier on me curopean commission, mine 
Ministers Tony Blair and Ryutaro Hashimoto, Chancellor Helmut Kohl, Presidents Boris Yeltsin, Bill Clinton 
and Jacques Chirac, Prime Ministers Jean Chretien andRomano Prodi, and the EU’s president, Willem Kok. 

in Denver this weekend (from left): Jacques Santer of the European Commission, Prime 

Socialist Moderate 
Succeeds Gonzalez 

Party Picks Joaquin Almunia 

Comf/Urdbf &ar Stiff From Dap&rha 

MADRID — Joaquin Almunia, a reform-minded moderate 
who is a fen of Rime Minister Tony Blair’s new-look 
socialism in Britain, was elected leader of the Spanish So- 
cialist Party on Sunday, party officials announced. 

Mr. Ahnunia, 49, the party’s parliamentary spokesman and 
tbe sole candidate for the job, replaced Felipe Gonzalez after 
receiving 73 percent of the votes at foe 34m congress of the 
Spanish Socialist Workers’ Party. 

More than 24 percent of tbe 1,000 delegates had cast a 
blank ballot 

Mr. Almunia’ s triumph followed intense negotiations that 
went into Saturday night, brought about when Mr. Gonzalez 
dropped foe bombshell Friday, foe first day of the party 
congress, that he would not be running. 

The announcement by Mr. Gonzalez, Spain's prime min- 
ister from 1982 to 1996 and foe Socialist leader for 23 years, 
was followed by a similar statement by foe party’s deputy 

The defeat in the March 1996 election to foe Popular Party 
of Jose Maria Aznar sounded the poli deal death knell for Mr. 
Gonzalez, whose party had been ravaged by myriad cor- 
ruption scandals. 

The current congress had set the goal of renovating foe 
party before the next elections in 2000. An executive bureau 
committed to renewal as well as adherence to Mr. Gonzalez's 
legacy was created. 

A member of Mr. Gonzalez’s inner circle since foe late 
1970s, Mr. Almunia was appointed labor minister in 1982 in 
the Socialists' first government Four years later, he was 
named to the Public Administration Ministry. 

Mr. Almunia, who was bom in the Basque region, has been 
a Socialist deputy from Madrid since 1979. 

In tight of recent opinion polls that give tbe Socialists 
almost as large a following among voters as the Popular Party, 

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Maprifad/.lpwr Fr i tter ft idte 

Felipe Gonzalez, left, and Joaquin Ahnunia on Sunday. 

a revitalization of the party’s leadersMp-could translate into a 
victory in the next general elections. 

As prime minister, Mr. Gonzalez shepherded foie Socialists 
from persecution under Franco’s dictatorship through its tran- 
sition to democracy and active rale in European integration. 

Mr. Gonzalez’s withdrawal was interpreted by various 
aides as an effort to remove Mr. Guerra from foe party 
leadership. Tbe two men have drifted apart ranee Mr. Guerra 
resigned as deputy prime minister in 1991 under pressure 

of the party, which favors generous government 

minority left wing 
cut welfare spend- 

ing and state intervention in foie economy. Throughout his 
career, Mr. Gonzalez has tried to move the parly to foe center. 

The accusations of influence-peddling in Mr. Guerra’s 
family were just foe beginning of the financial and political 
scandals that steadily eroded Mr. Gonzalez’s popularity. 

The most serious charges have been made against about 20 
political and police officials under Mr. Gonzalez, including a 

death squads that killed 

fanner intenor minister. 

They await trials over o 
Basque separatists in foie 1 

Ex-Followers Are Said to Hold Pol Pot 


Former Dictator ‘Very Old and Tired add Sick, General Reports 

By William Branigin 

WuMitgtffi Post Service 

PHNOM PENH — Appearing ex.- 
bausted and ill, Pol Pot, the Khmer 
Rouge guerrilla leader, was earned 
into a jungle base Sunday fay former 
followers who pledged to cut their ties 
with him and support foe Cambodian 
constitution, a government negotiator 

After flying back from talks with 
the rebels at their northern Cambodian 
stronghold of Anlong Veng, the ne- 
gotiator, General Nhiek Bun Chhay, 
the deputy army chief of staff, said he 
had seen' Mr. Pol Pot and his ailing 
No. 2, Nuon Chea, after they were 
earned in hammocks into the base by 
Khmer Rouge guerrillas who captured 
them about IS kilometers away. 

It was a rare glimpse of one of the 
world’s most reclusive leaders, who 
presided over a reign of tenor that 
killed mere than 1 millio n Camb o dians 
in the late 1970s and has not been seen 
in public by an outsider in 17 yean. 

As wi th previous reports about Mr. 
Pol Pot, however, there was no in- 
dependent confirmation of Sunday’s 
sighting. And General Nhiek Bun Ch- 
hay has a reputation amongjonmalists 
for sometimes giving incomplete or 
inaccurate information. 

The general. Who has been nego- 
tiating with the Khmer Rouge on behalf 
of foe firet prime minister. Prince Noro- 
dom Ranariddh, described foe former 
dictator as under house arrest in the 

custody of about 1,000 guerrillas who 
had turned against him after be ordered 
the massacre of the Khmer Rouge de- 
fense chief. Son Sen. and his family. 

Tbe general sdid the rebels had 
agreed to stop supporting Mr. Pol Pot 
“politically and militarily,” dissolve 

Pol Pot’s shrouded path from 
jungle to power and back. Page 6. 

the Khmer Rouge “provisional gov- 
ernment’' in the area and reconcile 
with King Norodom Sihanouk. 

But he made no mentioa of any 
agreement by the rebels to turn Mr. Pol 
Pot over to government custody so that 


Pd Pot, the rebel leader, in 1979. 

he could be tried for crimes against 
humanity before ah international 
tribunal, as demanded by Prince 
Ranariddh and his rival co-prime min- 
ister, Hun Seh. It appeared that this 
may still be under negotiation. 

“I did not talk to Pol Pot, but I saw 
him today sitting in a house.” foe gen- 
eral said. “His health is not very good. 
He is veiy old and tired and side ” Tbe 
visit suggested that while Mr. Pol Pot’s 
days as behind-the-scenes supremo of 
foie Khmer Rouge might be over, the 
remnants of foie organization were still 
seeking a political role in Cambodia. 

The Khmer Rouge rebels want their 
political organization, the National 
Solidarity Party nominally headed by 
Khieu Samphan, to' be admitted into 
Prince Ranariddh’s National United 
Root, an umbrella group the prince 
formed to compete with Mr. Hun Sen’s 
poweritii Cambodian People's Party in 
local and national elections over foe 
next year. Mr. Hun Sen has vowed to 
use force to prevent such an alliance. 
Instead, Mr. Khieu Samphan, for years 
a political front man for Mr. Pol Pot, 
appear to be playing foie same role 
now for the rebels in Anlong Veog. 

The general said Mr. Khieu 
Samphan would hold a press confer- 
ence in the next couple ofi days at Preah 
Vihear, northeast or Anlong Veng, and 
announce an agreement to abandon Mr. 
Pol Pot and support the constitution. 
But diplomatic sources said foe Khmer 
Rouge were showing no intention of 
giving up control of their zone. 

% i 

4 ! 

Support for Radicals Wanes in Seoul 

By Sheryl WuDunn 

New York Times Service 

SEOUL — Yang Hyun Ju’s bedtime 
ritual has been a bit different these last 
flew days, ending with her chaining her- 
self to a fence outside a cathedral here 
and lying down to go to sleep for foe 

The ritual was part of a hunger strike 
calling for tbe resignation of President 
Kim Young Sam. Ii was meant to show 
commitment and gain sympathy, but not 
many South Koreans are paying atten- 

For students like Miss Yang, that is 
difficult to accept. As she lay weakly on 

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Kuwait 700F3S UBlML(Eut.)^120 

a mat near the Myongdong Catholic 
Cathedral, a longtime protest center and 
the base for the Latest hunger strike, she 
insisted that the radical student move- 
ment in South Korea was still relevant 

“People react to us in various ways,” 
said Miss Yang, 21, who was later sent 
to a hospital after church officials called 
off the strike Friday evening. “People 
support us a lot psychologically. The 
Korean people know in their hearts that 
what we are striving for is right.” 

But do they? 

For decades, radical South Korean 
students, sometimes throwing fire- 
bombs and wielding metal pipes, were a 
symbol of a nation struggling toward 

democracy. Their passion and defiance 
of riot police helped bring foe end of the 
military dictatorship and foe election of 
Mr. itim, a civilian and former dis- 
sident, in 1992. 

The great victory of foe students 
came a decade ago this month, when 
Roh Tae Woo, soon to be elected pres- 
ident, called for free elections and far- 
reaching changes. At the time, many 
South Koreans felt that the students had 
helped accomplish something impor- 
tant for society. 

But now the radical students hardly 
have a voice in society. Many South 

See KOREA, Page 9 


Albright Sees Mideast Relations at ‘Low’ 

WASHINGTON (AFP). — Refe- that the P alestinians want as the capital 
lions between Israelis and Palestinians of a future state of their own. 
areata “lowpoliit,” U.S. Secretary of “It is important-for them to make 

State Madeleine Albright said Sunday, some hard decisions," Mrs. Albright 
Asked if she planned to travel to me said. “The United States plays a key 
region, Mrs. Albright said on ABC role but we cannot play that role if the 
television that * ‘when foe time is right parties do not make some hard de- 
I obviously will.” cisions,” 

“The issue here is we clearly are at a Meanwhile, frustration over the im- 

low point- at the Middle East peace passe has led to renewed violence in 
process," she said. Palestinian areas, particularly -in the 

The peace process has been dead- West Bank town of Hebron. For several 
locked since Israel Started work in days, yonng P alestinian demniwtTainry 
March on a new settlement in eastern have lobbed rocks and gasoline bombs 
Jerusalem, the historically Arab sector . ax Israeli soldiers in foe town. (Page 4) 



Martial Stresses in foe US. Military 


El Salvador’s Ecological Devastation 

ARIA PagaS. 

Bong Kong Escape Route Is Closed 

EUROPE Page 6. 

foeiM Join NATO Security Pact 

Books — — __ — . — « Page 11. 

Crossword Page 1L 

Opinion .nu.iHhinHH.H.wu..ui Page 8. 
Sports ; Pages 22*24. 

ThelHT on-line http :/Avww. 

One Big Battle May Be Won, but Tobacco War Is Far Front Over 

By Marc Fisher and John Schwartz 

Washington Pax Service 

WASHINGTON — The challenge is monu- 
mental — the Hionanrling of a culture. Using 
money , media and medicine, anti-smoking forces 
are trying to undo the work of centuries of literature 
and seven decades of Hollywood and Madison 
Avenue, to eliminate the automatic connection be- 
tween a kiss and a curling column of smoke, be- 

tween a shout of rebellion and the flick of a butt. 

The tobacco industry is willing to bet $368.5 
billion that links so deeply embedded in foe col- 

Critics line Up to denounce tbe deaf. Page 3 


lective consciousness simply cannot be broken. 
The settlement between the tobacco industry and 
state attorneys general, though far from final, may 

turn out to be “foe most historic public heahh 
achievement in history,” as foe Missistippi at- 
torney general^ Michael Moore, called it But anti- 
tobacco activists, cigarette makers and histori an s 
of the habit say such hyperbole is premature: The 
future of the cigarette is largely shrouded in 

■ 1 From G Everett Koop, foe former surgeon genb 
eral, to foe historian Richard Kluger, those who 
have studied the savvy seductions and addictions 

that make up the culture of smoking say foe deal is 
no panacea, but-may weli be a turning point. 

'^Viewed from 35,000 feet, the biggest 
effort ever to regulate a' recalcitrant industry,” Dr. 
KoopsakL “Wifi it be good for public health? Yes. 
llte Tobacco Institute ydll .be gone, but foe tobacco 
lobby will still be therc. Andmey will never stop." 
- . “Smoking, ain’t going, to go away,” said Mr. 

" See SMOKING, Page 9 

i « i _* . 

•* - a 




Denver's Summit of the Eight /Drawing Russia Closer 

America’s Economy: Could a Model for the World Be Oversold? 

Reminder About Cycles 

By Louis UchiteUe 

Ateu- York Times Service 

NEW YORK — Not so long ago, 
Americans were envious of Japan. Its 
products seemed so superior, its cor- 

porate practices so effective. Western 
Europe, too, spawned juggernaut indus- 

Europe, too, spawned juggernaut indus- 
trial economies. And looking abroad, 
Americans were caught up in self-crit- 
icism. For all the wealth of their own 
giant system, it seemed pitiful and help- 
less. And they turned to emulation. 

The mood has flipped, of course. Tri- 
umph and self-satisfaction are the rising 
American themes. Profits are strong, 
unemployment low, jobs multiplying, 
inflation inconsequential, the stock 
marker booming, product quality much 

Japan, by comparison, is digging it- 
If out of a stock market crash and a 

It is corporate America that now de- 
mands emulation. After years of travail, 
the United States has finally fielded the 
right formula for generating wealth and 
prosperity in the highly competitive 
global economy. Or so die argument 

And just as Americans once spoke of 
emulation, there is talk now in Japan, 
Germany and France of emulating die 
United States. Some companies are 
even doing so. 

The self-congratulation emerging 
from this comparison is exuberant, 

"We are the most flexible, adaptable 
economy on earth,” declared Bruce 
Steinberg, chief economist at Merrill 
Lynch & Co. 

"Let us celebrate on American tri- 
umph,” wrote Mortimer Zuckerman, 

not show conclusively that the U.S. 
model is the best. What's more, the U.S. 
edge today might be cyclicaL While the 
United Stares is in die seventh year of a 
recovery, Japan and Western Europe are 
just beginning to emerge from years of 
recession or weak economic growth. 

Then, too, some of Europe’s prob- 
ms seem tenmorarv. Rebuilding East- 

self out of a stock market crash and a 
collapse in real estate prices. And al- 
most everywhere in Western Europe, 
sluggish economies and high unem- 
ployment make for something less than 

the real estate developer and publisher, 
in an editorial in U.S. News & World 

in an editorial in U.S. News & World 
Report, which he owns. ‘-‘The mantra,’* 
he added, ‘‘is privatize, deregulate and 
do not interfere with the market ” 
Despite the triumphalism, various 
statistics measuring national wealth do 

SiqJicn Jaffc/Agone Fmr-Pmt 

President Boris Yeltsin of Russia and President Bin Clinton waving 
Sunday from a balcony in the Brown Palace Hotel after their meeting. 

Yeltsin, After Health Scare , 

Meets Chirac as Scheduled 

Koayslnl by Oar Stiff From Dtspurhn 

DENVER — Prime Minister Boris 
Yeltsin of Russia and President 
Jacques Chirac of France mer Sun- 
day, as planned, after some moments 
of concern. 

Reporters allowed into the room to 
observe the start of the meeting said 
the Russian leader stood up to greet 
Mr. Chirac and looked welL 

“It’s good to see you in good 
shape. ' ’ Mr. Chirac said. * ‘ When 1 see 
you I’m always in a good mood. 

Asked later whether Mr. Yeltsin 
was in good health, he replied, 'Ex- 

Mr. Yeltsin missed a gala concert 
for Group of Seven leaders Saturday 
night, and a spokesman, Sergei 
Yastrzhembsky, said he was tired. 

"He was tired, what do you ex- 
pect." Mr. Yastrzhembsky re- 

The Russian leader spent eight 

months away from his office, from the 
middle of last year, after heart prob- 
lems, bypass surgery and pneumo- 

Mr. Yeltsin left a dinner about 20 
minutes ahead of G-7 leaders. Jour- 
nalists had been told that the leaders 
would all leave together. 

"This has all been stressful," the 
spokesman explained. 

“He's tired because of the stress, 
the temperature, the altitude. It’s not 
so easy for someone of his age or for 
any age." 

Stephanie Denning of the Denver 
Health Medical Center said the hos- 
pital was put on alert late Saturday 
and was asked by someone from the 
Russian delegation to make an am- 
bulance available. "His personal 
physician took care of everything, 
and we didn’t have to step in. thank- 
fully." she said. ‘ ‘They just told us he 
wasn’t feeling well." (AP. Reuters) 

Jems seem temporary. Rebuilding East- 
ern Germany has dragged down Ger- 
many as a whole. Andthe steps being 
taken to bring about European union and 
a common currency have been a drag on 
national economies. Once they disap- 
pear, so could the U.S. lead, along with 
the claim that it is the enduring result of 
a better formula for doing business. 

"We must take a longer perspec- 
tive," said Dani Rodrik, an expert in 

international economics at Harvard’s 
Kennedy School of Government. “Our 
trium phalism is actually an obstacle be- 
cause it prevents us from seeing prob- 
lems that in fact need to be ad- 

The essence of the American for- 
mula, as described by its corporate 
boosters,' is this: Business must be free 
to innovate, restructure, relocate. Those 
are necessary ingredients for baking an 
ever larger pie, however distasteful the 
downsizing and wage inequality that are 
part of the process. 

By comparison, in this view, the Jap- 
anese and Europeans, constrained by 
custom and law, field a faulty model. 
They are held back by uniform pay 
scales, strong unions, generous unem- 
ployment insurance, costly benefits and 
Inefficient regulations thaf limit shop- 
ping hours, for example, or prevent en- 
trepreneurs from rapidly establishing 
new ventures. 

The accuracy of this formulation is of 
enormous importance to millions of 

In the name of a successful, laissez 
faire formula for generating prosperity, 
most corporate executives justify the 
painful upheavals that result from in- 
come inequality, restructuring, down- 
sizing ana relocation to cheaper labor 
markets. These are necessary steps, they 
say, en route to a richer economy that 
will eventually help everyone. 

Others, including the Clinton admin- 
istration, would not tamper with the 
formula, but would repair the damage 
after the fact, through tax policies that 
redistribute income to the working poor. 
The earned income tax credit is an ex- 
ample of this approach. So is the call for 
more tr aining , so the unskilled can move 
to the higher end of the unequal pay 

But is the U.S. formula really the best 

The most comprehensive measure of 
success is national income per capita; 
that is, gross domestic product — the 
value of all the goods and services pro- 
duced in a country in a given year — 
divided by the population. 

By that standard, according to the 
Labor Department's Bureau of Labor 
Statistics and the Organization for Eco- 
nomic Development and Cooperation, 
the United States has been the world’s 
wealthiest country ever since World 

But from 1960 until the early 19S0s, 
Japan and Western Europe closed the 
gap. Their per capita national incomes 
grew faster than that of the United 
States. Since then, no country has 
gained on another, or lost ground. And 
in this standoff, each side in this debate 
sees victory, 

William Lewis, director of the Global 
Institute at the consulting firm Me Kin- 
sey & Co., and a former official in the 
admini stration of President Jimmy 
Carter, has published studies critical of 
what he describes as market obstacles in 

These Boots 

Were Made 

For Balking 

DENVER — Chancellor Helmut 
Kohl of Germany reacted with honor 
when President Bill Clinton asked 
him and other leaden to wear cowboy 
boots to an entertaiantent gala Sai- 

"We had a long discussion about 
boots and Kohl said tint he would 

never wear them, absolutely never,” 
Prime Minister Romano Prodi of Italy 
said at a news conference during the 
meeting of the Group of Seven big 
industrial nations. 

Mr. Prodi said leaders were told at 
an afternoon meeting that they would 
be given boots and cowboy hats in 

time to pot them on for an evening 
event dubbed "Saturday Night at the 

Arad Wicftnjna/Rettfcn 

A bootless Mr. Kohl examining Mr. Clinton's Western-style bolo tie as 
Hillary Rodham Clinton looked on before the G-7 dinner in Denver. 

event dubbed "Saturday Night at the 

True to the best traditions of G-7 
summitry, where officials spend 
hours debating the exact wording of a 
communique, a face-saving compro- 
mise was eventually hammered out 

* ‘There was no diplomatic incident 
because a compromise was found,” 
Mr. Prodi said. 

The compromise: Mr. Clinton and 
Prime Minister Jean Chretien of 
Canada "agreed to wear the boots on 
b ehalf of eveiyone,” Mr. Prodi said 

The Italian leader was almost as 
relieved as Mr. Kohl at not having to 
don the boots. 

‘ ‘The idea of being confronted by a 
pair of boots terrorized me,” lie 

Japan, Germany and France. In the most 
recent, issued last month, Mr. Lewis 
urged, among other things, that France 
and Germany move toward greater de- 
regulation and a lowering of their 
"comparatively high minimum 

Income distribution, he said, should 
be handled through lax policies, not 
mandated pay scales. 

Western Europe and Japan, Mr. 
Lewis said in an interview, stopped 
gaining ground on the United States in 
per capita national income because 
America has moved steadily since the 
Carter administration toward deregu- 
lation and unrestricted business prac- 
tices, which "weed ont firms that are 
unable to get better.” 

He added, "The reason there is high- 
er competitive intensity in the United 
States is that there are fewer restrictions 
on die ways businesses can organize and 

Such reasoning incenses Richard 
Freeman, a Harvard labor economist. 

The Japanese and Western Europeans 
may no longer be closing the income- 

per-capita gap with the United States, he 
says, but Americans are working longer 
hours to keep their lead, while the oth- 
ers, being more productive, are working 
fewer hours without losing ground. 

“What you don’t see in national in- 
come per capita is leisure time,” Mr. 
Freeman said. "That gap is closing. 
You don't even hear anymore that the 
Japanese are overworked.” 

There are in fact flaws in all the 
models. The United Slates creates mil- 
lions of new jobs, and unemployment is 

very low. Bur the highest-paid people 
take home growing chunks of the na- 

take home growing chunks of the na- 
tional income while wages at the lower 
end have fallen in recent years, when 
adjusted for inflation. 

The income spread is far smaller in 
Western Europe, but unemployment in 
most countries there has grown from 
low levels IS years ago to double the 
U.S. rate, or more. Various subsidies 
keep die unemployed afloat, but the 
young are particularly hard-hit, stunting 
their skills, and even in Western Europe 
benefits eventually run out for those 
without work long enough. 

The Japanese, like the Western Euro-, 
peans. manage to keep wages rising 
across the board and more evenly dis- 
tributed than the United States does. 
Unlike Western Europe, Japan has a low 
unemployment rare. 

That is partly because of the Japanese- 
resistance to layoffs and partly because 1 
most women stay out of the labor force, 
or drop out in hard times, while men in' 
their 50s are often forced into retirement 
in greater numbers than in the West. 

Given cultural and political differ- 
ences, none of these labor models seem 
likely to change much in the foreseeable 

Still, deregulation is gaining ground 
in Japan and Western Europe — not to 
mimic the United States, but to move 
toward some middle ground. 

"There is a very strong feeling that 
something is wrong, that tire cost struc- 
ture is too high,” said Shuzo Nakamura, 
chief representative in New York of the 
Japanese Finance Ministry. "Some 
people believe we have to emulate the 
United States but most feel we have to 
find our own way.” 

After Wooing Russia, U.S. Wins a Victory Against Iraq at UN 

By John M. Goshko 

Washington Post Sennet 

After President Bill Clinton intervened 
personally with President Boris Yeltsin. 
Russia withdrew its threat of a veto and 
cleared the way for the Security Council 
to impose new sanctions on Iraq if it 
continues to interfere with UN inspec- 
tion te ams . 

The resolution was adopted on a 
unanimous vote of the 15-nation coun- 

The agreement between the United 
States and Russia called for a resolution 
warning President Saddam Hussein's 
government of the council's “firm in- 
tention to impose additional measures 
on those categories of Iraqi officials 
responsible for noncompLiance” with 
UN orders. U.S. officials said that the 
term "categories” is meant to apply to 
all Iraqi military and intelligence of- 
ficers and senior officials of Iraq’s mil- 
itary-industrial complex. 

The resolution gives Iraq until Ocl 1 1 
to cooperate with UN inspections. If it 

remains defiant after that, U.S. officials 
said, the council will ban international 
travel by the Iraqi officials by ordering 
UN member states to bar their entry. The' 
United States initially had wanted' these 
new restrictions to go into effect im- 
mediately. Passage of the resolution was 
a major diplomatic victory for the 
United States, which has suffered sev- 
eral setbacks in its efforts to maintain a 
united international stance against Iraq 
until it complies fully with the demands 
of the United Nations following die 
1991 Gulf War. 



Have you been to Radiation on KLM Flight Disclosed 




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

LONDON (API — Passengers aboard a recent KLM flight 
to London from Amsterdam were exposed ro excessive 
amounts of nuclear radiation, a newspaper reported Sunday. 

KLM acknowledged never telling the passengers, but as- 
serted that the radiation was not excessive. The authorities in 
Britain said the incident was being investigated. 

Flight KL129 on May 2 was transporting technetium gen- 
erators used in X-ray equipment from the Dutch manufacturer 
Mallinckrodt Medical destined for a hospital in southern 
England, The Observer reported. 












Russia Plans to Upgrade Air Safety 

Living in the U.S.? 

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

To subscribe, call 

1 - 800-882 2881 

MOSCOW (Reuters) — Russia's aviation authorities plan 
to introduce new rules by the end of this year aimed at 
improving air safety standards. 

Yuri Karetsky, head of the pilots’ department of the Federal 
Aviation Service, said the rules were intended to reduce the 
number of safety-related incidents involving Russian carriers. 

i amm 


Lora Palma* 


This Week's Holidays 


pm >mf VI UA fcAl 


Banking and government offices will be closed or services 
curtailed in the following countries and their dependencies 
this week because of national and religious holidays: 

MONDAY: Esonu. Latvia, Luxembourg 

TUESDAY: Andorra. Canada. Congo. Estonia. Latvia, Macau. Vene- 

WEDNESDAY: Mozambique. Slovenia. 

THURSDAY: Madagascar. Ukraine. 

FRIDAY: Djibouti. 

SATURDAY I Djibouti. Hong Kong. 

Sources: JJ*. Morgan. Reuters. Bloomherg 









Sl Paunbwg 








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Forecast tor Tuesday through Thursday, as provided by AocuWeather. Asia 






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lor Scandinavia Monday 
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of central Europe eerty tfva 
week, white warm weather 
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Greece through Ukraine 
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Critics Denounce ‘Empty Promises’ 


:#■ ' 

, *■ v 

By John Schwartz 
and Saundra Tony 

Mwjtotg/W ftgfjmfe 

WASHINGTON — Having had 
a look ar the fine print of the 68- 
page settlement proposal between 
J tobacco companies and state at- 
torneys general, the critics are lin- 
ing up to take their shots. 

“Overall, tins is a .document 
filled with empty promises and un- 
filled commitments/' said David 
Vladeck, a regulatory law expert 
and head of the Public Citizen Lit- 
igation Group, expressing the view 
f . of consumer groups that the'' agree- 
ment was too favorable to the to- 
- bacco industry. 

David Kessler, the former Food 
and Drug Administration commis- 
sioner who is now consulting with 
(he federal government on tobacco 
regulation, said there were some 
* ‘wonderful’" provisions in the plan, 
including the pan that provided for 
anti-tobacco education campaigns. 
But he also said he had “very se- 
rious concerns” about the parts of 
the deal he has seen so far — those 
regarding the food and drug 
agency's jurisdiction over tobacco 
and other components of cigarettes. 

“We will ask the public health 
groups to come back this week and 
review the details of the settlement 
line-by-line,” Mr. Kessler said. 

Mr. Vladeck said the document 
"reflects the technical sophistica- 
tion of the tobacco industry law- 
yers” compared with the “neo- 
phyte" status of the other side on 
regulatory issues. “I am not saying 
the attorneys general deliberately 
took a fall, but they came in second, 
and not even a close second. ' ' 

He was particularly critical of 
provisions in the settlement that say 
the food and drug agency would 
have to prove that attempts to limit 
nicotine or other substances in to- 
bacco products would neither be 
detrimental to public health nor 
create a black market. The attorney 
general of Mississippi, Michael 
Moore, and his colleagues said the 
provisions simply reflected con- 

ttabb WlDianoitftadefi 

A billboard in Denver showing the Marlboro Man about to light 
up. He would vanish under a deal hammered out last week. 

corns expressed by health officials 
that they did not yet have scientific 
evidence to justify tatting such 
moves against tobacco products. 

Mr. Vladeck said that rule set the 
bar almost impossibly high. 

Other phrases and concepts 
scattered throughout the document, 
Mr. Vladeck said, turn seeming 
public health advances into reg- 
ulatory traps that weigh heavily in 
die industry’s favor. For instance, 
any attempt by die government to 
limit nicotine would require a 4 'for- 
mal rule-making” procedure, as 
opposed to the easier procedure the 
food and drug agency uses for most 
regulations, including its 1996 to-, 
bacco rule. 

In addition, Michael McGinnis, a 
former official of the Department of 
Health and Human Services, said 
the $1 billion annual fund for 
smoking cessation programs could 
well be too small to meet the needs 
of the nation's 45 million smokers. 

Other critics of the plan — which 
must gain the approval of Congress 
and President mil Clinton — say 

the proposed fines against the 
companies if they miss targets for 
reducing youth smoking are too 
low. “Look at all those smokers 
they can get just by paying that 
money,” said Richard Kluger, au- 
thor of "Ashes to Ashes,” a 
Pulitzer-Prize- winning study of the 
cigarette industry. 

More fierce criticism came from 
Barnett LeBow, head of the cig- 
arette maker. Liggett Group Inc. 
Earlier this year, Mr. LeBow' 
signed a separate settlement with 
22 attorneys general. Mr. LeBow 
said that he saw a lot of good news 
in the public health portion of the 
larger proposal, but that the in- 
dustry got off .easy, especially 
when it comes to the kinds of in- 
ternal papers it will have to make 

The companies involved in the 
negotiations agreed to turn over 
scientific documents, but not the 
highly sensitive documents Mr. Le- 
Bow agreed to provide. “They are 
giving up zero/’ be said. 

The other companies are fight- 

ing release of Mr. LeBow’s doc- 
uments, which could shed light on 
the entire industry. Noting that the 
tobacco giants began negotiations 
with attorneys general just weeks 
after the announcement of his deal, 
Mr. LeBow said it was easy to 
figure. out “why they're Dying to 
rush to a deal quick. ” . 

While die tobacco companies re- 
ceived some protection from die 
federal regulation in the deal, in its- 
pact the weaker Liggett agreed to be 
governed by the fuff food and drug 
agency rule. Recalling the remark 
by the attorneys general that they 
had held up the deal to protect a 
whistle-blower, Jeffrey Wigand, 
because they did not want to “leave 
anybody on the beach,’ ’ Mr. LeBow 
said: "They leftus on the beach. We 
are the ultimate whistle-blowers.” 

■ ‘Bitter Pill 9 for die Industry 

Bamaby /. Feder of The New. 
York Times reported: 

In reaching an agreement that 
would cost diem billions of dollars 
a year and poses the potential to 
chase away customers, cigarette 
companies calculated that they still 
would be left with sufficiently lu- 
crative business and would not con- 
tinue to be haunted by lawsuits that 
have depressed their stock prices, 
consumed ever more of their re- 
sources and given their industry an 
image as America’s corporate 

The tobacco settlement would 
cost the highly profitable industry 
an average of $14.7 billion a year 
over the next 25 years, more than 
twice its profits from domestic cig- 
arette sales in 1996. The industry 
called that and other terms' of the 
deal a “bitter pilL” 

But the companies’ stock prices 
have risen in the two months since 
negotiations on a settlement began, 
a sign of investor recognition that 
the companies have much to gain 
from an agreement even as they pay 
whar looks like a steep price. 

Although die combative tobacco 
industry has had great success in 
die courts at defeating lawsuits 

brought by sick smokers, it came 
under enough pressure in the last 
several years to force it to the bar- 
gaining table for die first time in 
four decades of nasty battles over, 
the health effects of tobacco. 

.Central elements of that pressure 
were the lawsuits brought by more 
than three dozen states in an effort 
to recover Medicaid costs of 

smoking-related illnesses. 

■ At die same time, the industry 
was confronted with the very real 
prospect of vasdy expanded federal - 
regulation, which is not the case 
under the agreement. 

Wall Street has no doubt that the 
manufacturers, whose cigarette 
sales in the United States amount to 
$45 billion a year, would be able to 
survive the costs of the agreement 
by raising prices, though just how . 
prosperous they would, be under the 
restrictions in die settlement is still 
very much in doubt. 

in the end. Wall Street is betting 
there will still be tens of millions of 
American smokers, and the in- 
dustry leaders — die Philip Morris 
Companies, RJR Nabisco Holdings 
Corp. and BAT Industries PLC, the 
British parent of Brown & Wil- 
liamson Tobacco Cotp. — will- 
continue to enjoy domestic profits 
that many other industries dream of 

Investors are further betting that 
whatever those cigarette makers 
lose in die United States they will 
make up for overseas, where they 
are already enjoying strong growth. 

Emanuel Goldman, who fellows 
the industry for Paine Webber, said 
if Congress enacts the deal, "the 
companies’ stock prices could 
up another 20 percent” over 
next 12 months. 

Although Philip Morris, for ex-, 
ample, has nearly half the domestic 
cigarette market, and so would 
have the biggest liabilities from the 
settlement, its tobacco business de- 
rives.] ost 30 percent of its earnings 
from the United States, compared 
with 50 percent fra: Reynolds and 
even higher percentages for other 



^WASHINGTON — When the chief Republican tax 
writer. Representative Bill Areher.of.Texas, pushed a tax- 
cutting bill through - the Ways and Means Committee 
recently, he did it without a single Democratic vore._ 

His counterpan in the Senate, William Roth Jr. ot 
Delaware, the chai rman of the Finance Committee, took a 
different approach, and last week it paid off. AH nine of the 
committee V Democrats joined 9 of the 1 1 Republicans in 
approving his version of fee bifl. The legislation would 
provide more than $135 billion in tax cuts over five years, 
offset inpart by more than $50 billion in revenue from new 
and extended raxes. 

Like the House version, the Senate bill would create a 
credit of $500 a child for most families, offer tax breaks for 
College tuition, reduce the top rate on capital gains for 
individuals to 20 percent from 28 percent and cut the 
federal inheritance -tax. -Both bills rely heavily on ex- 
tending and expanding a tax on airline tickets.' (NYT) 

m • " » 

Dispute on Gulf War Illnesses 

WASHINGTON — Eighty-six members of the House 
have urged a special White House panel of expens to 
reverse itself and conclude that Iraqi chemical weapons 
were responsible for some of the health problems reported 
by veterans of the 1 991 Gulf War. 

Hie lawmakers, responding to (he draft of a new report 
by tine General Accounting Office that linked Iraqi nerve 
gas with the sorts of illnesses seen amongtbe veterans, said 
in a letter to the White House committee Friday that "the 
evidence is clear that exposure to a wide variety of 
chemicals” in the Gulf “may be a significant factor” in 
the illnesses. (NYT} 

Wilson Attacks Clinton on Race 

LOS ANGELES — Taking up the call for a dialogue on 
race, -Governor Pete Wilson or California has accused 
President Bill Clinton of undermining equality through 
continued discrimination. 

Addressing an audience of radio talk-show hosts in Los 
Angeles on Saturday, Mr. Wilson charged Mr. Clinton 
with -fostering divisiveness by supporting affirmative ac- 
tion prog rams that undermine color-blind competition. 

"President Clinton’s support of preferences, if it is in 
fact genaine and not simply pandering to an important 
political interest group, bespeaks a strange and unhealthy 
pessimism about Americans and America's future,” the 
governor saii (LAT) 

Quote / Unquote 

President Clinton, . describing Chancellor Helmut 
Kohl's reaction to the denim shirt, bolo tie and cowboy 
boots that he wore to d inner at the Denver economic 
summit meeting. “The chancellor said I look like the 
president of the farm association.” ' (AP ) 

Furor Over Adultery Overlooks Real Marital Stresses in the Military 

By Dale Russakoff 

U jsJrin$ron Post Service 

military adultery overlooks a larger rise because of the increasing and un- cases, he said, both spouses could plan anics. The captain gave notice that he general. He said that 63 percent of 

point: die unique and growing stress that predictable nature of deployments — ahead and families bad certainty. will leave the military, the memo said, today's army is married, compared with 

life in the armed services imposes on although there is no statistical data to "We’re getting to the point that a lot after his battalion commander "read 22 percent ar the end of World War II. 

MOUNT HOLLY, New Jersey — He marriages and families. support feat belief and some defense of soldiers are looking at family sac- him fee riot act for leaving fee motor But Mr. Isaacs said he saw no ev- 

was a young, married enlisted man in fee While military marriages exhibit le- experts dispute fee extent of the read- rifices they’ve had to make and saying pool late one evening to go pick up his idence of a crisis, and David Segal, a 
U.S. Army, stationed in Germany. She gendaiy strengths, some senior officers iness problem. they can’t stay in the army,” Colonel daughter from day care.” University of Maryland sociology pro- 

was the civilian wife of an enlisted man have begun warning that the post-Cold The family-life section of fee House Steve Robinette, chief .of staff rat Fort 
in his unit. She was lonely; be was vul- War military is pushing these stresses to report, which was based largely on an- Leavenworth, Kansas, said in a tele- 
nerable. So began a garden variety case a breaking point. Fewer soldiers are be- 
of military adultery, distinguished only ing sent to more and more countries, 
by fee aggrieved wife's reaction when Operational deployments in fee army, 
she found out: She seduced fee husband for example, have tripled since 1989 

fell. Soldiers may 

‘We’re getting to the point that a lot of soldiers 
are looking at family sacrifices they’ve had to make 
and saying they can’t stay in the army.’ 

The captain, a 1991 West Point gradu- fessar who specializes in fee military, 
ate, reached by telephone, said he had said there was no empirical evidence of 
been sent on eight t raining rotations in rising attrition or lower morale as a result 
five years — the average, he said, used to of increasing deployments. Mr. Segal 
be one rotation every 18 months. observed feat fee 10th Mountain Di- 

He said he was on rotation while his vision, one of the most deployed units, 
wife was in bed wife a problem preg- had the highest re -enlistment rate after a 
nancy, returned in time to hold his infant recent deployment to Haiti. - 
daughter and then was deployed to Haiti. “Certainly there are people who say: 

Evenat home, he said, he often has had to ‘This is too hard on my family. ’ But this 

of the “other woman ' ’ in revenge. when fee Berlin Wall 

The affair drew no media attention, no return from Macedonia, then ship out on 
pronouncement from feminists or politi- short notice to Bosnia-Herzegovina. At 

cians. Bur to the soldier, now a sergeant their home posts, officers and enlisted Evenat home, he said, be often has had to ‘This is too hard on my family. ’ But this 

in a reserve unit at Fort Dix, New Jersey, men said, they generally work longer ecdotal evidence, quoted air force phone interview. "It is a national se- work beyond his children’s bedtime be- does not to my knowledge indicate a 

it was far more typical of what underlies hours to do more wife less. spouses in Germany complaining, as one curity issue. The two places we’re losing cause his battalion is so short-handed. trend," Mr. Isaacs said, 

adultery in the military than fee publicity A little-noticed section of a widely put it, "The workload is breaking our officers are fee very talented young lieu- . Recently, he said, his company was Along with fee increase in marriage, 

drenched cases of First Lieutenant Kelly quoted report of fee House National Se- relationship.” An army spouse said fee tenants and captains and some of fee best granted a day off, and his immediate fee military has significantly increased 

Flinn or General Joseph Ralston. curity Committee — “Military Read- uncertainty 4 ‘just drives your emotions and brightest lieutenant colonels. And boss gave him permission to attend a its investment in family support pro- 

mess 1997: Rhetoric and Reality” — up and down, up and down.” Weekly family stress is a common thread.” private conference of the Promise Keep- grams, from counseling to dependent 
Jo warned: “Given the overwhelming ev- mental health appointments at Pope Air He read from a memo he recently ers,- who try to help men rearrange their dental insurance, 

lor idence of fee stresses being suffered by Force Base in Nor* Carolina doubled received from a young officer “I’m lives so as to spend more time wife “The old saying in the army was feat 

■ - C* — — — ■ ~ — — — — — — -- — E ~ JT A ' ' 1 V O W* VI UM, H UliU k ...... .j J VIM VUU L I IIOU Oil Uil" V UlULUMfl LUlkW 

me reus civilian spouses, fee national spread perception among military per- families than even one-year assignments taining equipment because he had only Support Center, said it partly reflects the that's 60 percent married if families are 
furor over recent, high profile cases of sonnel and families that divorce is on the common during the Cold War. In those half his authorized number of mech- changed demographics of the military in unhappy.” 

Away From 

• Heavy rain and 90-mile-an 
hour (145-kilometer) winds hit 
fee American Plains, where the 
weather was blamed for three 
deaths and widespread power out- 
ages. People in Milwaukee paddled 
boats' a long flooded streets. (AP) 

• A power outage caused an 

emergency closing of the surviv- 
ing reactor ar Three Mile Island in 
Pennsylvania, the site of fee worst 
U.S. nuclear power plant accident 
two decades ago. During the dos- 
ing. the plant released steam con- 
taining trace amounts of radio- 
activity. The incident was 
categorized as “an unusual 
event.” the lowest of four alert 
levels set by the federal nuclear- 
power agency. (Renters) 

• Water rationing has been 

ordered in San Juan. Puerto Rico, 
and nearby areas of the island be- 
cause of low rainfall. That means 
some residents will have no water 
services on some days. The ra- 
tioning reminded Puerto Ricans of 
1994. when a drought, combined 
with deteriorated infrastructure 
and the near-bankruptcy of fee 
Aqueduct and Sewer Authority, 
forced more than l .6 million 
people to undergo rationing for 
nearly six months. (NYT) 

• An accused mobster, Vincent 
Giganie. is to go on uial in Brook- 
lyn. New York, after seven vears of 
court battles over whether he was 
faking mental illness. Mr. Gigante. 
69. u he* faces charges he ordered 
murders and led rackets as a power- 
ful Mafia boss, became known for 
strolling around his neighborhood 
in a bathrobe and pajamas and 
mumbling incoherently. (NYT) 

Green Groups Give Gore Black Mark 

By Richard L. Berke 
and John H. Cushman Jr. 

ftV* Yivi. Turits Sen ice 

WASHINGTON — Vice Presi- 
dent A1 Gore, one of the environ- 
mental movement’s steadiest allies, 
is under attack from major conser- 
vation groups in an unlikely turn that 
carries important implications for 
environmental policy as well as pres- 
idential politics. 

The groups say they are frustrated, 
even angry, that, in their view, Mr. 
Gore has failed to exert strong in- 
fluence on two of the environmental 
movement’s top priorities this yean 
toughening air pollution standards 
and negotiating deep cuts in world- 
wide emissions of greenhouse gases. 
In the next few days. President Bill 
Clinton, who defers to Mr. Gore on 
most environmental matters, is ex- 
pected to spell out his positions on 
both questions. 

Although environmentalists form 
the core of Mr. Gore’s political base, 
organizations feat have sided with 
fee vice president throughout his 
public career are now using extraor- 
dinarily blunt language to warn that 
"green” voters might abandon him 
in fee Democratic primaries in 2000 
unless he delivers now on these cru- 
cial issues. 

Environmental lobbyists have 
even met with Representative 
Richard Gephardt, the House minor- 
ity leader and a rival for fee Demo- 
cratic nomination, urging him to de- 
mand that fee White House display 
more leadership on their issues. 

In an interview Friday, Mr. Gore 
defended his environmental record 
and said that his job demanded that 
be work behind the scenes. 

“Everybody knows ray views,” 
he said. “But I am not going to 
publicly try to back fee president into 
a comer.” 

Mr. Gore acknowledged that the 
pressure from environmental groups 
had been intense in recent weeks. 
The Sierra Club has begun, television 
advertising campaigns in early 
primary states, urging Mr. Clinton 
and Mr. Gore to “stand up to the 
special interests.” 

Environmental groups have dis- 
tributed a polemic to editorial writers 
that derides remarks by the president 
and fee vice president on global 
wanning as “hot air.” And in a letter 
last week on the air standards, 84 
environmental and health groups 
wrote, 4 4 We are deeply disturbed and 
perplexed by fee apparent lack of 
visible and vocal suppoit from fee 
White House for fee proposed new 

In fee interview, Mr. Gore did not 
seem distressed by fee barrage of 
criticism. “I quite understand why 
some group feat feels passionately 
would decide to pull out all the stops 
to try to gain leverage in any way 
they can,’ ’ he said. 4 4 And that is their 
job. My job is not to publicly argue 
for a specific policy feat has not ye( 
been formally recommended to fee 
president and take options away 
from him.” 

But as fee complaints have in- 
tensified. fee vice president has 
scrambled in fee last few days to 
reassure environmental leaders 
privately. And his aides have begun 
to signal that Mr. Gore was weighing 
in behind fee scenes for a decision on 
dean air standards feat would satisfy 
fee environmentalists. 

Carol Browner, the Environmen- 
tal Protection Agency administrator, 
said in an interview: “There is no 
doubr in my mind feat the vice pres- 
ident is in there doing whar he has 
done on many difficult issues. 

“He is moving fee ball," she said, 
"providing fee leadership, making 
the case for strong public health pro- 

tection.” For months, Ms. Browner 
advocated tougher air quality rules 
without a word in her defense from 
fee White House. 

Mr. Gore’s advisers accused his 
newfound critics of an orchestrated 
drive to prod him even further on 
their issues. 

“I guess the problem is, you al- 
ways hurt fee one you love, ” said 
Kathleen McGinty, fee senior en- 
vironmental aide at fee White 

The administration's proposals on 
air quality and global warming have 
come under intense criticism in Con- 
gress and from major industries, es- 
pecially oil, coal and car companies, 
and White House economic advisers 
are battling with environmental of- 
ficials over how aggressive a stance 
to take. 

Hie debate has become feverish as 
two of the environmentalists' top pri- 
orities — clean air standards and 
global warming — have come before 
fee White House. 

Hie administration is' under a 
court order to decide within a month 
how lightly to control emissions of 
smog and soot, and fee White 
House's economic advisers, heeding 
pleas from industry, have been ur- 
ging the Environmental Protection 
Agency to ease its earlier proposals. 

The other pending environmental 
issue, strengthening fee treaty on cli- 
mate change, will be at the forefront 
at a UN conference in New York 
beginning on Monday. Signatories to 
the treaty, written five years ago in 
Rio de Janeiro, are trying to negotiate 
by year-end a tougher version setting 
mandatory limits on fee emissions of 
carbon dioxide and other greenhouse 
gases, which are implicated in global 
war ming and are continuing. to rise. 
But the United States has refused so 
far to commit to a timetable for re- 
ducing greenhouse gases. 

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'PAGE 4 



With No Talks in Sight , 
Young Turn to Violence 

Clashes Mark Israeli-Palestinian Impasse 

By Barton Ge liman 

Washington Past Service 

XIV -v . 

■WTJr- • . 

* Ty 

» a 

Ecological Devastation 
Ravages El Salvador 

T waiting Cause of Children’s Death: Breathing 

Netanyahu to Name 
Panel to Offer Plan 
On Jewish Converts 


clashes began as a protest against a re- 
cent U.S. congressional vote demanding 
recognition for all of Jerusalem as Is- 
HEBRON, West Bank — Helmet reel’s capital That was a calculated act 
shield lifted and arms spread wide, a of taking sides, as Palestinians see it, in 
broad-chested Israeli sergeant, the the dispute at the center of the broken- 
biggest man in his squad, stood exposed down peace talks, Israel’s building of a 
on Shalala Street and called to the young Jewish neighborhood in the section of 
Palestinians heaving stones and flaming Jerusalem that Palestinians want as their 
bottles of gasoline. capital 

’’Give it to me in the eye!' ’he roared It was Palestinians who picked the 

in Hebrew, pantomiming his challenge, fight with soldiers Friday, returning to 
‘ ‘Give it to me in the ear!” the L0- year-old pattern of uprising. And 

Two sharpshooters of his military po- it was Palestinians, as usual, who bore 
lice squad, one high and one low, the brunt. 

crouched undercover nearby. Whenever A big purple bruise from another 
a torso or limb poked out from behind day's stone marked one Israeli soldier's 
makeshift Palestinian battlements, the cheek, and an Israeli border guard was 
soldiers opened fire with steel-cored carried off with light wounds to his leg, 
rubber bullets. but most of the bloodshed came on the 

“We did good shooting today,” said other side. About 150 Palestinians and 
the sergeant's platoon leader, who iden- eight Israelis have required medical 
tified himself only as Lieutenant Ron. treatment since the latest clashes 
"Yes,” affirmed a corporal laughing began, 
nearby. “You can check Alia Hospit- At Alia Hospital here, three pre-teen- 
al. ” age boys were admitted after being shot 

For more than a week, in Hebron and at such close range that the rubber bullets 
sporadically at the Jewish settlements of penetrated their flesh. A skinny 12-year- __ ... 

the southern Gaza Strip, street clashes old wrapped in bloodied sheets, Munzer WEST BANK VIOLENCE — A Palestinian policemen Bring into the air 
have illustrated the degenerating state of Natsche, had a round lodged in his chest. Sunday to break up a riot outside the courthouse in RamaUah. Among 
Israeli-Palestinian relations. No direct He said Israelis are “dogs,” and no the rioters were the relatives of nine Palestinians on tr ial in the killing ’s 

talks are taking place, and there are none peace can come with them because "the G f seven people who had been accused of collaborating with Israel, 
in prospect Egyptian efforts at medi- Jews have guns and they took our b 

atioD are flagging. That leaves the ex- land.” In the week's fighting, Israelis and the Patriarchs. “For 1,000 years it has 

change of insults and bone-breaking vi- The same insult was used by the an- some Palestinians suggested that Yasser been a Muslim and Arab city." 

olence. onymous Jewish settlers who posted a Arafat's Palestinian Authority tolerated Friday was the “day of the Mo- 

This time there is an American twist, sign, badly written in Arabic, over the an organized effort to bus young men in lotovs,” several Palestinians said, and 
Taking a cue from their leaders, nearly entrance to Hebron's wakf. or Muslim from the southern hill towns to Hebron, they threw dozens of crude gasoline 
every Pales tinian interviewed said the religious trust, some months ago. which is the last West Bank city under bombs toward Israeli troops. Young men 

“Hebron is our country, and the Arabs partial Israeli military rule. Palestinian lined up in an alley to ml bottles with 

are our dogs,' ’ the sign said. police did not try to stop the youths from fuel from a can, then stuffed in rags to 

The sign is still there because * T want moving toward soldiers guarding the serve as wicks. As the bombs blossomed 

visitors to see our sufferings,' ’ said Sa- Jewish settlement of Beit Hadassah. into flame and black smoke, Palestinians 

lah Natsche, Hebron's senior Islamic “The Palestinian police can prevent shouted such slogans as “God is great” 
authority and a distant relation of the it, but they are not doing their job. so we and, in En glish, “P-L-O. Israel no!” 

wounded boy. ' 'The West is throwing its do it,” Major General Uzi Dayan, chief Young boys gathered fist -size hunks 
Jews at us and getting rid of them be- of Israel’s Central Command, said in an of stone and concrete. Older ones wiel- 

cause they know their nature. The West interview. ded slingshots with marbles or whirled 

wants to get rid of their evil. ' ’ Inside the mosques for Friday prayers, old-fashioned slings. 

Hebron has never lacked for preach- sermons egged the young protesters on Jewish settlers complained all week 
JERUSALEM — Prime Minis ter era of hatred on either side, but in recent with angry talk about the congressional that rubber bullets were an insufficient 

Benjamin Netanyahu’s government said years opponents of compromise looked resolution on Jerusalem. response, demanding the use of live am- 

Sunday it had signed an accord with as if they were Fighting strong tides. "Not the American Congress, not the munition and the reconquest of the four- 

Reform and Conservative Jews in an Now, nearly four years after the first European Union, not the Kremlin and fifths of Hebron handed over to Pal- 

effort to resolve their dispute with Or- Israeli-Palestinian accord, voices like not ml of them together can mak e Je- estinian self-rule five months ago. 

thodox Jews in Israel over recognizing Mr. Natsche ’s are strengthened by the rusalem the capital of Israel!” preached “The Israeli army hasn't been al- 

converts. broad impression that the process of Sheikh Fawzi Khateeb in the Ibrahimi lowed to act as an army in years," said 

Under the deal, Mr. Netanyahu is to political accommodation has collapsed. Mosque, the Muslim side of the Tomb of one settler, David Wilder, 

create a committee to draft a proposal 
that would satisfy "‘all parties ' f in what 
has been dubbed the “Who is a Jew?” 
debate, officials said. 

Parliament approved preliminary le- 
gislation in April to enshrine in law the 
long-standing practice whereby people 
converted in Israel to Judaism would be 
officially recognized as Jews only if the 
conversion was performed by an Or- 
thodox rabbi. That recognition is im- WASHINGTON — The reported 
portant here because conversion to Juda- capture in Cambodia of Pol Pot, leader 
ism opens the door to Israeli of a notoriously brutal political party that 
citizenship. held absolute power for a dark, four-year 

Though the law would effectively period in the 1970s, may finally give the 
confirm the unofficial stams quo, it world a closer look at a shadowy man 
angered non-Orthodox Jews in the widely held responsible for the worst 
United States, home to the world's episode of mass murder in the last half of 
largest Jewish community, who saw it as the 20th century, 
an attempt to relegate them to second- A French-educated militant who be- 
class status wi thin Judaism. came obsessed during the 1950s with a 

The legislation, part of a coalition deal vision of remaking Cambodia into a 
between Mr. Netanyahu's governing radical communist agrarian nation, Mr. 

Likud party and religious factions, has Pol Pot has for most of the last 20 years 
not yet been presented for a final vote, been a scorned figure in his own country 
Under the new deal a seven-member and a corrosive, distracting force in its 
committee, including one representative turbulent domestic politics, 
each from the Reform and Conservative If he is delivered for trial to an in- 
movements. will present its recommeo- temational tribunal, it would be the first 
dations to Mr. Netanyahu’s coalition by time he would be confronted in person 
Aug. 15. Then, if necessary, it would by the abundant evidence of massive 
offer a proposal for consideration by atrocities committed during his rule 
Parliament. from 1975 to 1979. 

Government officials said Israel Although the exact death toll is un- 
would in any event go on accepting as certain, most experts estimate that at 
valid conversions done outside its bor- least 1 million and perhaps as many as 2 
dera by rabbis in the Reform and Con- million people were killed outright, 
servative movements. Countless others were tortured, im- 

prisoned or financially ruined under Mr. 

Pol Pot’s movement, the Khmer Rouge. 

In the annals of modern war crimes, 
the Khmer Rouge’s crimes are probably 
second only to those committed by the 
Nazis in World War Q, which led to the 
deaths of as many as 1 1 mil lion Jews and 
others over a 12-year period. 

According to various estimates, as 
many as one-fifth to one -quarter of all 
Cambodians alive at the outset of the 

By Douglas Farah 

WashiHRum Post Service 

By R. Jeffrey Smith 

Washington Post Service 

H Salvador being die most densely pop. 
ulared country in die hemisphere, with 
■ about 243 people per square kilometer. 
SAN SALVADOR — Throughout Deborah Barry, director of the Sai- 
the 1980s. El Salvador's civil war was a vadoran Program of Investigation of De- 
focus of inte rnational attention and bil- velopmem and the Environment, said 
lions of dollars poured into the country the problem of population density is 
to support the military that was battling a particularly serious in die San Salvador 
Marxist-led insurgency. urban area. According to a 1995 study by 

Now the country, although at peace the group— widely regardedas the most 
and out of the international spotlight, is reliable to dare — the urban area has 30 
facing a more common problem dial percent of the nation’s population, with a 
threatens more permanent damage than density more than twice that of foe na- 
the war ecological devastation that is tion as a whole, 
turning parts of the once-Iush nation to "The state of the Salvadoran envir- 
deserr. causing a severe water shortage onment and its ongoing degradation are 
and making respiratory disease from air a threat to the economic and political 
pollution a leading cause of death among stability of the nation,” the study said, 
children. "It is a serious impediment to finis? 

And, Salvadorans complain, there is development.” 
almost no outside aid available to com- In part, too, the war is to blame for the 

bat the threat because the United Stales crisis today. Tens of thousands of 
and other nations do not feel their stra- people, mostly subsistence farmers, 
tegic interests are directly threatened. were driven from their homes along the 
“Our ground water is running out, our northern border with Honduras, areas 
surface water is increasingly polluted where the fighting was most ferocious, 
and we have less than 2 percent of our Most migrated toward towns and urban 
forest cover left, ’ ’ said Ricardo Navarro, centers. 

director of the Salvadoran Center for Those who remained in rural areas. 
Appropriate Technology, a prominent and those who have returned, Ms. Bany 
ecology group here. “The most dan- said, have to clear more land than before 
gerous thing a child can do in El Sair because the soil is poor. In addition, 
vador is breathe. We will have to take most fuel is unavailable or extremely 
radical measures if we want El Salvador expensive, leaving wood the cheapest 
to live.” ana most available means of cooking. 

The nation now ranks just behind The deforestation accelerates soil 
Haiti as the Western Hemisphere's most erosion, which in turn causes rivers to 
deforested country. Only about 1.5 per- fill with sediment, killing water life, 
centof its tropical forest cover is left, and “There is serious desertification sei- 

about 7 percent more of the land is ting in in some parts of the country,” 
protected only somewhat by coffee Ms. Barry said. “That leaves behind 
trees. Even these trees are disappearing land that is no longer recoverable for 
at an alarming rate, environmental ex- mankind's use.” 
pens said. The nation's river ways and ground 

At die same time. Mr. Navarro water are fouled further by unregulated 
warned, “water is a serious problem, dumping of industrial waste and 
and it will only get worse.” He added, garbage, often toxic. And deforestation, 
“Just in the capital the subterranean especially close to urban areas, is ac- 
water supplies drop a meter a year, and celexated because there are no codes 
sooner or later those aquifers will run regulating how land should be used. In 
dry.” recent months several of the few re- 

Unlike other nations in Central Amer- maining stands of trees on the hills 
ica, El Salvador has no undeveloped around the capital have been razed to 
frontier because its small territory has make room for apartments and coin- 
long been occupied from corner to mercial buildings, 
comer. But like the rest of the region. Environmental experts say another 
more than 30 percent of the people live growing problem is the inability of urban 
in extreme poverty. centers, especially San Salvador, to dis- 

Much of the current crisis stems from pose of garbage in an environmentally 

sound way. At the main dump, near the 

suburb of Nejapa, the garbage is piled in 
huge mounds, where poor people fight 
with each other and clouds of vultures 
over the right to scavenge goods. 

According to the study, the San Sal- 
vador metropolitan area generates 1 .255 

found evidence that confessions obtained royalists in Phnom Penh for the jungles of The party's leadership was sustained tons of garbage a day. of which only 37 

atTuol Sleng were sent — sometimes on eastern Cambodia in 1963. There he by a profound sense of destiny about its percent is collected. The garbage that is 
a daily basis — to Mr. Pol Pot and other helped build the Khmer Rouge. military conquest over the U.S.-backed collected is thrown on porous, volcanic 

senior Khmer Rouge leaders, who di- The rebel group of fewer than 5,000 government, an ideology of class hatred soil, where it decomposes and filters into 
rectly managed what one researcher de- poorly armed peasants grew in less than that celebrated the wisdom of the poor the water table, 
scribed as a “nationwide system of ex- a decade into an army of perhaps 70,000. and ill-educated, and a confidence that Uncollected garbage is dumped di- 
ecution centers.” The centers disgorged In a foreshadowing of the brutality of its its absolute control could be maintained rectly into streams and rivers, further 
bodies into more than 20,000 mass subsequent rule, the Khmer Rouge sub- indefinitely. fouling them, or left to rot in piles, also 

graves, according to the Yale program, jected Phnom Penh to months of in- According to the historian David posing a health hazard 

Saloth Sar was bom in northern Cam- discriminate artillery and rocket attacks Chandler, author of “The Tragedy of Reforestation is difficult, with wood 
bodia in either 1925 or 1928, while the before the city fell in 1975. Cambodian History,” the Khmer Rouge so scarce and valuable. Environmental 

territory was under French control. He Within a day after taking die capital, even ordered the borders of rice fields workers say trees are stolen, or cut as 
studied carpentry and industrial educa- the Khmer Rouge ordered most of its 2 realigned to match the pattern of the soon as they are big enough to bum. 
tion in Phnom Penh before heading to million citizens into the countryside to party's symbol In recognition of the growing prob- 

Paris on a scholarship to study radio plant rice, create new villages and per- In late 1978, a border skir mish with lem, tire government recently created the 

electrooics, where he fell in with com- form other menial labor. All private Vietnam provoked that country to mount Ministry of the Environment to prepare 
munist youth groups and devoted him- property was confiscated. a full-scale invasion. The Khmer Rouge legislation on emission control s tan- 

self to their causes. “We worked seven days a week," were toppled in two weeks and Mr. Pol dards, rational land use and control of 

On his return to Cambodia in 1953 after said Seath Teng, who was separated Pot fled to the jungle. water use and pollution, 

repeatedly failing his exams, be joined a from her family by the Khmer Rouge at A trial held in 1979 by the Viet- “There simply are very few laws 
resistance movement seeking an end to the age of 4 and later wrote about the namese- backed government sentenced now, and those tbai exist are not en- 
French rule, and after the country won its experience in the book, “Children of him to death in absentia for genocidal forced," said a foreign environmental 
independence in 1954, be shifted his act- Cambodia's Killing Fields.” crimes. But he has never taken direct expert “We are looking at years, maybe 

ivism to opposing the monarchy. He be- “The only time we got off work was responsibility for these abuses, and in- a generation, before things even begin to 
came a leader in the nascent Communist to see someone get killed, which served stead blamed his subordinates for ex- turn around, and by then it may be too 
Party before fleeing repression by the as an example for us,” she said. cessive zealotry and insubordination. late.” 

Paris to the Jungle: Pol Pot’s Deadly, Shrouded Path 

Delors Condemns 
Kohl ‘Arrogance’ 
At EU Gathering 


PARIS — Jacques Delors, former 
president of the European Commis- 
sion. said Sunday that he had been 
“shocked by German arrogance” at 
the European Union summit meet- 
ing in Amsterdam last week. 

Mr. Delors, a French Socialist, 
said on Europe 1 radio that the meet- 
ing had been a “fiasco" and that 
French and German cooperation in 
the European Union, traditionally 
the mainstay of the bloc, was not 
working well. 

“The German arrogance at Am- 
sterdam shocked me,” Mr. Delors 
said, adding that he felt able to 
speak out because of long ties with 
Germany and early support for Ger- 
man reunification. 

‘"It deserved a stronger reply 
from France." he said. 

Mr. Delors said the German 
chancellor, Helmut Kohl, had de- 
manded unanimity voting on justice 
and home affairs, an area where 
Bonn had previously favored ma- 
jority voting. 

And he said Mr. Kohl had refused 
“a French demand on economic 
and monetary union that was com- 
pletely justified.” 

Mr. Delors said France’s request 
for “a true coordination of eco- 
nomic policies” as a counterbal- 
ance to an independent EU central 
bank after the creation of a single 
European currency in 1999 was jus- 
tified by the European Union's 
Maastricht treaty. 

party's rule had, by 1978, been killed by 
its forces or perished from famine, dis- 
ease or starvation provoked by misbe- 
gotten economic and social policies. 

Although some of the Khmer Rouge's 
more brutal social policies — such as the 
forced migration of millions of citizens 
— were well known during its reign, the 
magnitude of the tenor it inflicted and 
the number of people who were killed 
was kept hidden through self-imposed 
isolation and rampant xenophobia. 

The mastermind of this policy of ob- 
sessive secrecy was a Khmer Rouge lead- 
er named Saloth Sar. who hid his own 
role from the Cambodian people for years 
before acknowledging in 1977 — in a 
five-hour speech that he delivered under 
the nom de guerre Pol Pot — that he was 
the country's ruler. His reign was marked 
by authoritarian and arbitrary policies 
arrived at with no tolerance for dissent. 
Internal purges were frequent, and any 
hint of disloyally to the party elite — or 
even to the youthful, gun-toting, local 
party activists — routinely provoked dis- 
appearances or public executions. 

Sobering evidence of this fanaticism 
can be found at a Phnom Penh museum, 
known as Tuol Sleng. situated at a 
former high school the Khmer Rouge 
used as a central facility for processing 
the condemned. The names of as many 
as 20,000 enemies of the regime were 
meticulously recorded there, torture was 
conducted, confessions were wrung and 
photographs were taken before they all 
were driven to nearby “killing fields” 
and buried in mass graves. 

Researchers with the Cambodian Gen- 
ocide Program at Yale University have 


Oops at the Summit 

Continued from Page 1 

ister Ryu taro Hashimoto of Japan in- 
explicably arrived a full minute early, got 
out of his car and, with Mr. Clinton still 
inside, found no one to welcome him. 

In diplomatic circles, this is an un- 
mistakable breach of protocol, although 
Mr. Hashimoto seemed unruffled and 
simply cruised into the building on his 
own. As a uniformed guard stepped for- 
ward to replace the Japanese flag with 
the Canadian for the next arrival, an 
anxious official waved him back, and 
Mr. Clinton, trying to recover, hustled 
Mr. Hashimoto back out of the mansion 
arm in arm for the ceremonial wave to the 
dutch of international photographers. 

By the end of the dinner, protocol was 
abandoned altogether. The leaders 
strolled out en masse and milled around 
on the driveway, causing a bottleneck of 
motorcades. Finally, Mr. Blair and 
Chancellor Helmut Kohl of Germany 
simply took off on foot, with the tank- 
sized Mr. Kohl searching for his ride, 
which couldn’t have been too rough to 
find because, rather than a limousine, he 
travels in a full-scale passenger bus. 

Perhaps the most personally embar- 
rassing gaffe for Mr. Clinton, though, 
came before the official start of the sum- 
mit. During a scene-setting address here 
Thursday. Mr. Clinton tried to use stat- 
istics he often throws into his speeches to 
-make the case for international trade. 
“We are now slightly less than one-fifth 
of the world's population but we have 
slightly more than 20 percent of the 
world’s wealth and income.” the pres- 
ident said. 

Oops. Of course, the United States has 
5 percent of the world population, not 
one-fifth, which would be 20 percent. 
Otherwise, there wouldn’t be much of a 
point. Without realizing the error, Mr. 
Clinton went on to say, “This is not a 
matter requiring Einstein to calculate.” 
Then again, people say Einstein failed 
high school math. 

- - — — _ # - t - .Slrjihm JjIfiV tpainr Fran- D* - * 

Mr. Hashimoto, center, dozing between his wife, Kamiko, and Mr. Kohl during a performance in Denver. 

SUMMIT: Denver Talks End in Discord Over Environment Policy 

Continued from Page 1 returning refugees and allowed known vowed that the “international commu- 

if ki -a , war criminals to remain free. nity will maintain long-term coramit- 

Kohl said. My colleagues are in ab- Russia s almost foil participation at a mem’ in Bosnia. This sidestepped the 

solutely no doubt about this. Group of Seven meeting, a first, over- U.S. position that its troops should leave 

Britain said Sunday that it would de- shadowed the meeting, held at a time next June 
yore the next summit meeting, in Burin- when the eight countries faced no over- They aiso agreed to increase aid and 
rngharn. England, to seeking a third arching political or economic crises. investment in foe poorer African coun- 
model a way to have both healthy Deputy Prime Minister Anatoli tries, and in their final statement op- 
growth. as in foe United States, and Chubais called Russia’s expanded role posed all human cloning 
generous social protections for workers, “outstanding, extraordinary.” There was discoid, notably on NATO 

foe elderly and l the unemployed, as m The Russian delegation left with at enlargement and ^environment. Most 
Europe. The nations repressed in Den- feast one amcrete benefit. In a surprise, of th? Europeans want Romania, and 
VCr ^ er " [h e United States said it had helped possibly Slovenia, to be included when 

many, Italy, Japan and the United States, hroker a deal to include Russia in the the North Atlantic Treaty Organization 
along with Russia and foe European Pans Club of creditor nations. Robert decides next month which ca^dates to 

ISS 8 “ qgenda of R “^; l f^ etar y of the U.S. Treasury, accept. But the United States stuck by its 

o ... railed that an enormous step forward.” stand that only Poland, Hungary and 
, called on Beijing The group also endorsed eventual Rus- Czech Republic were ready for mem- 

to hold democratic elections for a new sian membership in the World Trade bershiD ™ * 

legislature in Hong Kong "as soon as Organization. * ‘jit c„„ohTfirm 

fo^British^onv to Chi rcvers, °" 11 ™ fire! summit meeting for foe targets to limit carbon dioxide emissions 

the British colony to Chinese control, new British prune minister, Tony Blair. — a 15 percent reduction by 2010— but 

*** 10 reV1VC ** “ 44 * e ingest leader here. After a the Ufo^rato^e factories are 

mejibund Middle East ptace process. bombing Saturday in Northern Ireland, foe Ss St aSe of the pol- 

unS^ffid^eKi offiS' " tUation . lhere . dominated his one- lutant, resisted^ did Canada and Japan, 
ic reconstruction, done .00 little to help The eight, in their closing document, dSce/^cS srUd ' 



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Hong Kong Escape Route Dies Out 

'Underground Railroad’ Aided Hundreds of Dissident CM 

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By Patrick E. Tyler 

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HONG KONG — For hundreds of 
dissidents. spirited out of China in a 
modern-day version of an underground 
railroad, it worked this way: The dis- 
sident received a coded message to 
travel quickly to a fishing pier aidn° 
China’s jagged southern coastline and 
slip aboard one of the nondescript junks 
rhar ply the South China Sea. 

With the dissident hidden below 
deck, a dark and tense passage across a 
few dozen kilometers of rolling swells 
ensued, as the boat's captain, often a 
common smuggler, evaded Chinese 
patrol boats and pirates. 

If luck held, the dissident emerged to 
scramble ashore at a deserted beach an 
hour’s drive from central Hong Kong, 
where British intelligence officers and 
diplomats provided temporary resident 
and travel papers — the equivalent of a 
passport to freedom. 

Now this escape route, through which 

nearly 500 dissidents and defectors have 
passed since the crushing of the Tianan- 
men Square democracy movement in 
1989. is being shut down with the end of 
British role on June 30. 

After decades during which Hong 
Kong provided sanctuary for political 
and religious refugees from mainland 
China, its special role as an escape route 
for those fleeing persecution will all but 

close with the withdrawal of the co- 
lomal government that discreetly tol- 
erated iL 

A small group of determined political 
activists saythey plan to stay on in Hong 
Kong after China takes over on July 1 in 
hopes of providing some semblance of 
tne safety net that has rescued so 

“ We hope a shadow could contin- 

ue, a senior Western diplomat said. 

But others fear that Beijing will try to 
crush the escape route once and for all* if 
only to stamp out the image of Hong 

Kong as ■ ‘base of subversion* 1 against 
Communist rule on the mainland. 

Publicly, Hong Kong’s fiiture leader. 
Tung Chee-hwa, has shown no sym- 
pathy for the fate of political refugees. 
Anyone who has not entered Hong 
Kong “properly and legally,” he said 
this month, will “have to so.” meaning 
back to China. 

Robin Munro. director of the Hong 
Kong office of Human Rights Watch, 
said. “We believe there should be some 
mechanism that allows a valid asylum- 
seeker to leave the territory with the 
permission of the new Hong Kong gov- 

He added that “it could be worked 
our. if there is a will" among the foreign 
governments that will continue to be 
represented in Hong Kong and if the new 
Hong Kong government allowed it. 

At its peak of activity, in 1989-9 1 , the 


underground pipeline was known as 
Operation Yellowbird. But it was really 
an amalgam of efforts that featured a 
collaboration of political activists in 
China and Hong Kong working in al- 
liance with human rights organizations 
and crime syndicates willing to smuggle 
human cargo for profit. 

At the end of the pipeline was always 
Her Majesty's colonial government 
working in unspoken complicity with 
gangsters and spies. 

The successes were often spectac- 
ular. They frequently bedeviled China's 
powerful Ministry of State Security', 
whose hapless agents could never plug 
all the routes out of the country . 

But there were also betrayals and 
failures, the most notable of which com- 
promised the escape of two longtime 
democracy advocates. Chen Ziming and 
Wang Juntao, in October 1989. 

Both were captured and sentenced to 
13 years in prison. Mr. Wang was al- 
lowed to go into exile in the United 
Stales in 1995 after the personal in- 
tervention of President Bill Clinton and 
more than 50 senators. 

Mr. Chen has been living under house 
arrest in Beijing since receiving a med- 
ical parole last fall. 

Some of the most famous student 
leaders of the Tiananmen movement, 
like Chat Ling, Li Lu and Wuer Kaixi. 
escaped through Hong Kong or Macau. 
But the Yellowbird networks have also 

fti’l Jtj . j* R 

GEARING UP — Workers in Beijing building a stage Sunday for a party 
in Tiananmen Square on June 30 to mark the return uf Hong Kong. 

assisted scores of other dissidents, labor 
activists and even Chinese government 
officials seeking to defect. 

One of the most recent refugees to 
pass through the pipeline was Wans 
Xizhe, a longtime pro-democracy cam- 

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CIA 9 s Arrest of Murder Suspect Angers Pakistanis 

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By Kenneth J. Cooper 

U ’jsh/ni} ft »n Pus f Sifrvii r 

QUETTA, Pakistan — Beyond the 
tall metal gate of the recessed driveway, 
the oldest brother of Mir Aimal Kansi 
has been receiving his clan's elders and 
other relatives who have streamed into 
the walled compound to deliberate on 
bow to aid a family member jailed in a 
distant land. 

In the week since Mr. Kansi was 
captured and later flown to the United 
States from Pakistan by FBI and CIA 
agents with assistance from Pakistani 
authorities, family members and res- 
idents of his hometown have tried to 
make sense of the arrest of a member of 
Quetta's most prominent family. 

Mr. Kansi is accused of killing two 
Central Intelligence Agency employees 
and wounding rhree other people in a 
1993 attack outside the agency’s 
Langley, Virginia, headquarters. If con- 
victed. he could face the death penalty. 

"The family is highly disturbed,” 
said Hamidullah Kansi, 43, the eldest 
brother of the murder suspect and by 
tribal tradition the head of his extended 
family since their father’s death in 1989. 
"There is a lot of tension. They're in a 
state of shock." 

The elder Mr. Kansi also disputed 
suggestions that his brother was mo- 
tivated to attack CIA headquarters be- 
cause he blamed the agency for his 
father's death. 

Hamidullah Kansi said Abdullah Jan, 
their father, never worked for the CIA 
during the Afghan war against occupy- 
ing Soviet troops, as has been reported, 
ana died a natural death at 68 from Ever 
cancer complicated by heart problems. 
He also denied that any Kansi relative 
was killed in Afghanistan in 1984 dur- 
ing the war, an incident also cited as a 
possible motive. 

In Quetta, a city of 800,000 near the 
border with Afghanistan, the reaction to 
Mr. Kansi 's arrest, predominantly 

worry and anger, has reverberated in 
concentric circles from his immediate 
family, to the prosperous extended 
Kansi clan that numbers more than 
20,000. to the larger Pashtun ethnic 
group to which they belong. 

Leaders of minor political patties in 
±e capital of Baluchistan Province also 
have taken up the issue, criticizing the 
national government for ignoring its 
own extradition laws and permitting a 
foreign country to haul off a Pakistani 
citizen without giving him a court hear- 
ing, as provided by law'. 

“Why did our government hand over 
Mir Aimal Kansi? That is the question. 
We want to know,” said Tariq Mah- 
mood. who until recently owned a video 
store in Quetta. “Of course, we are 

Pakistani newspapers have described 
the swift transfer of Mr. Kansi to the 
United States as a loss for the nation’s 
prestige and the rule of law, which has 
yet to be firmly established in a country 

directly ruled for half its history' by the 
military. A front-page article in Satur- 
day's edition of the Nation, for instance, 
charged that the fugitive’s capture “be- 
littled a nation of 1 30 million, making it 
look like a tin pot island republic which 
has neither laws of its own nor respect for 
itself or its sovereignty.” 

■ General to Sue Government 

Pakistan's former military spy master 
said Sunday that he would sue the gov- 
ernment over the Kansi case, Reuters 
reported from Islamabad. 

General Hameed Gul, former director 
general of Inter Services Intelligence, 
said he would submit a petition to a high 
court Monday to protest the way Mr. 
Kansi was captured and delivered to his 

“I want to raise the sovereignty issue. 
The sovereignty of Pakistan has been 
violated.” General Gul said. “The law 
of land has been flouted with impunity as 
no legal requirements were fulfilled.” 

paigner who tied China fast fall after he 
wrote a public letter criticizing Pres- 
ident Jiang Zemin and demanding that 
the government enforce freedoms en- 
shrined in the 1982 Constitution. 

On Oct. 8. he was at his parents' home 
in Guangzhou in the middle of shaving 
his invalid father's mustache when his 
beeper w ent off and he got won! that the 
co-author of the protest letter. Liu 
Xiacbo. had been arreMed in Beijing. 

“I finished shaving m> father's mus- 
tache. and then I leli.” Mr. Wang said. 
“I told mv mother I had something to 

“1 went to Hong Kong on a smug- 
gler's boat.” he said by telephone from 
New York, where he is studying Eng- 
lish. “It was so sad to w arch the Chinese 
coastline disappear.*’ 

Once he landed in Hong Kong. Brit- 
ish officials quietly issued him travel 
papers, and the Clinton administration 
just as quietly arranged passage for him 
to the United StatesT 
Virtually every Western consulate in 
the territory- has confronted the problem 
of accepting political refugees from 
China at the” risk of offending Beijing’s 
hypersensitive Communist lenders, who 
do not like to admit that they imprison 
their citizens for their political or re- 
ligious views, or that a significant per- 
centage of Chinese, if given the choice, 
would emigrate to the West. 

“On the record. it"> not something we 
talk about.” said Richard Boucher, the 
U.S. consul general in Hong Kong. 

Hong Kong's Laics 
To Change at Once 

HONG KONG — Hong Kong's 
future chief executive. Tung Chee- 
hun. made il clear Sunday that new 
laws restricting demonstrations 
would go into effect from the 
minute the lemion becomes part of 
China on July I. 

“Laws passed during the early 
morning ot the first of July will take 
effect as of the beginning of that 
particular day.” he said. 

Martin Lee and other democracy 
activists have said they would de- 
nounce the new Beijing-appointed 
legislature from the outside bal- 
cony of the chamber u hiie mem- 
bers were being sw orn in. 

Mr. Tung did not say whether the 
demonstration would be tolerated. 
Talks between his office and Mr. 
Lee's Democratic Party were con- 
tinuing. he said. i Reuters i 

India and Pakistan 
Chart fifty to Peace 


MURREE. Pakistan — Pakistani 
and Indian negotiators said Sunday 
that they w ere close to agreement oh 
a joint statement after a session of 
peace talks held w uhin sight of the 
mountains of deputed Kashmir. 

"We are wry close to a final 
agreement.” said Shamshud 
iMimad. secretary for the Pakistan! 
Foreign Ministry. His Indian coun- 
terpart. Salman Haider, voiced hope 
earlier of an accord on the “ma- 
chinery of future negotiations.” 

“We will finalize this documem 
in the closing session tonight." Mr. 
Ahmad sa id? » Renter* t 

China Courts Rival 

BELI1NG — Beijing urged 
Taiwan on Sunday to regard the 
handover of Hong Kona as the 
model for its reunification with 
China, promising it greater 
prosperity under communism. 

The commentary, issued hours 
before Taiwan was to begin two 
days of military maneuvers in a 
southern district and the Taiwan 
Strait, showed no sign of anger over 
the exercises. 

Referring to the handover, the 
Xinhua news agency said: “This is 
a major step toward realizing the 
reunification of the motherland un- 
der the 'one country, two systems' 
guide, and is extremely useful in 
setting 3n example for solving the 
Taiwan problem.” i Renters/ 

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By Stephen Kinzer 

Nr*' York Times Service 

ISTANBUL — Traveling between 
Turkey and Iran these days produces an 
odd sensation of dissonance. 

In militantly secular Turkey, a 
Muslim-oriented political movement is 
thriving despite intense efforts by gen- 
erals and others to suppress il In or- 
thodox Iran, a relatively moderate cleric 
who preaches tolerance and studies 
Kant and ToequeviUe has been elected 

It would be too simple to suggest thar 
the two countries are changing political 
places. Turkey is not entering a period 
of religious rule, nor is Iran about to 
embrace Western values. 

Yet in both countries, people seem to 
be sending a similar message. They 
want a government that respects in- 
dividual rights but also gives religion an 
important role in public life. 

Turkish generals, who consider 
themselves the guarantors of the secular 
state, detest Necmertin Erbakan, the Is- 
lamist leader, and last week, finally 
yielding to their pressure, he resigned as 
prime minister. The generals and their 
secular allies rejoiced, congratulating 
themselves for saving the country from 
fundamentalism. No longer, they said, 
was Turkey in danger of becoming * ‘an- 
other Iran" or "another Algeria." 

In some quarters, however, disquiet- 
ing questions were being asked. By us- 
ing their power to block the rise of an 
Islamic party, weren't the generals fol- 
lowing the same policy as the late shah 
of Iran, and more recently the Algerian 
military? By repressing that party, 
might not they be radicalizing it and 
driving some of its members under- 
ground, laying the groundwork for far 
more serious trouble in the future? 

The generals believe thar by forcing 
Mr. Erbakan from office, they have 
crushed a grave threat to Turkish free- 
dom. To them, Islamic political power 
means obscurantism, fanaticism and ul- 
timately dictatorship. 

Others see it as simply a response to 
what a growing number of Turks want 

"This is a democracy," said Abullah 
Gul, a minister of state and influential 
aide to the departing prime minister. "If 
the people want religions schools, or if 
they want other changes in society or 
politics, how are you going to tell them 
in a democracy that this is not al- 

The founder of modem Turkey, 
Mustafa Kemal Ataturk, forged his' new 
nation in the 1 920s by ripping it from its 
Ottoman religious roots. He issued a 
series of revolutionary decrees de- 

signed, among other things, to eliminate 
all vestiges of religious influence over 
government and politics. 

It is now becoming clear that such a 
radical action would inevitably produce 
a reaction. After a delay of three-*quaf- 
ters of a century, the reaction has begun. 
Through Mr. Erbakan's political move- 
ment, the Welfare Party, millions of 
Turks are saying that they want to re- 
claim some of their Muslim traditions. 

This terrifies Turkey’s generals and 
the rest of the secular elite. 


These people have been brought up to 
believe thar catastrophe will follow if 
they allow female civil servants to wear 
head scarves, permit soldiers to pause 
for prayers or give students the right to 
attend Koran courses as they please. 

During his 50 weeks -as prime min- 
ister, Mr. Erbakan proved to be remark- 
ably mild, and took no strong steps, 
toward establishing an Irani an -style 
theocracy. But the generals were not 
satisfied. They consider him to be a 
conniving hypocrite and are certain that 
he is hiding his true fundamentalist 

Turkey is a highly dynamic society, 
just as Iran was in the period before the 
Islamist takeover. Huge numbers of vil- 

lagers have flooded into big cities, 
bringing their religious beliefs with 
them. They have slowly become, ali- 
enated as the tired and corrupt political 
establishment fails to meet their needs. 

■ Many of them vote for the Welfare 
Party. Its leaders are certain that as 
migration continues and other parties 
continue squabbling among themselves, 
their own appeal will grow even more. 

Secularists, on the other hand, hope 
that this marginalized mass will slowly 
be integrated into the- mainstream and 
not feel the kind of strong disaffection 
vital to Welfare's success. 

Just the opposite son of disaffection 
is visible across the border in Iran. 

Iranians are tired of being ruled by 
dour mullahs who want to regulate not 
just the clothes rhqy wear on the streer. 
but also the music they hear 1 and the 
movies they watch inside their own 

Many remain committed to the idea 
that religious leaders should play a role 

“ ■ ■■ i “ ^ ■ . _ ■ 

in public life, but they want mat role to 
be less all-encompassing. 

Keep following Allah, they seem to 
be saying, but lighten up. 

Mohammed Khatami was elected 
president in a landslide last month partly 
because he advocated easing of some of 
the nation's religious restrictions. 

The key to his political nSsumiS, 


Majority Hunt: 

nfn-'lhTiijnjn -ii* ■■( F’i-- 

EMBASSY BLAST — Security was tight Sunday at Turkey's embassy in 
Brussels after a bomb exploded near the building. No one was hurt in the 
attack, which was claimed by a man in the name of an Armenian group. 

An Opponent 

Shifts to Yilmaz 

r»ii AiSiS UiiJ Pb*!' 

ANKARA — A lawmaker 
defected Sunday from an Is- 
ijmic-led alliance to a pro- 
Wesiem bloc that supports 
Mesut Yilmaz. the prime 
minister-designate, but Mr. 
Yilmaz was still short of the 
support he needs to w in a ma- 
jority in Parliament. 

Haluk Muftuler. front the 
True Path Party of Mr. Yil- 
maz ‘s rival. Tansu Ciller, 
resigned a day after Mr. Yil- 
maz called on parties to join 
with his Motherland Party 
against the Islamic Welfare 


Mr. Muftuler was expected 
to join Motherland on Mon- 
day. Mr. Yilmaz said he ex- 
pected more defections from 
True Path in the coming days. 
For a majority, he needs the 
support of at least 10 more 
True Path legislators. 

however, is the fact that he was forced 
from his job as minister of culture and 
Islamic guidance several years ago be- 
cause ultra-conservative ayatollahs con- 
sidered him too tolerant, for example, by 
approving the screening of films that 

were not fully favorable to Islamic rule 
and allowing a female singer to give a 
solo show in Tehran. 

If Mr. Khatanu manages to move his 
country toward a balance between re- 
ligious and secular power, the resulting 

equilibrium will be one for which Ira- 
nians have paid a huge price. 

The challenge facing Turkey is to find 
an equilibrium without suffering 
through a nightmare like the one in 

FightLooms Over EU Farm Aid 

BRUSSELS — Plans to slash aid to wealthy wheat farmers are 
likely to be pushed aside at an annual European Union farm price 
marathon starting Monday in Luxembourg. EU diplomats said. 

Farm ministers, except Britain's and Sweden’s, are expected to 
block Farm Commissioner Franz Fishier’ s bid to cut payments to 
cereal and oilseed farmers by 1.4 billion ecus (SI .6 billion) to help 
finance aid for beef producers crippled by the "mad cow" crisis. 

The cereal aid cut is tbe most contentious issue in a package of farm 
prices and measures for the coining 12 months which, if an EU ritual is 
respected, will be thrashed out at an all-night session after several days 
of hard bargaining. 

Germany, France and other countries argue that it is unfair to make 
cereal farmers foot the bill for damage caused by bovine spongiform 
encephalopathy and that there are sufficient savings in tbe farm budget 
to cover the cosl (Reuters} 

Bandits Rob 2 Reporters in Albania 

TIRANA,- Albania — Two reporters were robbed by armed bandits 
in lawlessness that is intensifying just a week before national elec- 

Joanna Robertson, a reporter for the BBC and Alphin Resimi. who 
writes for the English-language Albanian Daily News, were robbed at 
gunpoint, a Greek military spokesman said Sunday. (API 

Swedish Social Democrats on Rise 

STOCKHOLM — Sweden's governing Social Democrats clawed 
back some popular support in June, regaining the lead from the 
conservative opposition for the first time in five months, according to 
a poll released Sunday. 

The survey by the Swedish Institute for Public Opinion Research 
showed support for the Social Democrats rose to 33.7 percent in June 
from 31.3 percent in May, putting the party back at the top. i Reuters t 

The EU This Week; 

Inh’niJtto/Hil Htmild Tnfruiw 

Significant events in the European Union this week: 

• Prime Minister Wim Kok of the Netherlands, representing the EU 
presidency, and President Jacques Santerof tbe European Commission 
meet Prime Minister Ryu taro Hashimoto of Japan in The Hague on 
Wednesday for the annual EU -Japan summit meeting. 

• Mr. Kok meets with leaders of 10 Central and East European 
countries, Cyprus and Turkey in The Hague on Friday tQ discuss the 
result of the Amsterdam summit meeting last week. 

• EU social affairs ministers meet in Luxembourg on Friday for a 
first discussion of how to cany out the new commitments to coordinate 
employment policies that were made at the Amsterdam summit 


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» g I » « 



World Business Council 
• for Sustai nable Development 



From ideas to action 

In 1 992, sustainable development was a difficult-to- 
grasp concept for everyone, and maybe even more 
so for businesspeople. It was broad in scope, calling 
for a major rethinking of economic, environmental 
and social priorities within companies. 

Today, it is encouraging to see how business has 
clarified a long-term vision into concrete and work- 
able solutions toward environmental progress and 

capsulated by sustainable development. 

World Business Council for Sustainable Development 

!60 route de Florissant 
CH-1231 Conches, Geneva Switzerland 
Td.: (41 22) 839 3100- Fax: (41 22)839 3131 
E-mail: mfo(S)wbcsdch 

Business is at the heart of the sustainable de- 
velopment debate. Its challenge is to achieve 
growth, wealth creation 
and jobs in a manner that is 
■ sustainable for future gen- 

Companies have the 
technology, ski! Is, re- 

sources and creativity to 
provide solutions that can 
benefit society at laige, and the World Business 
Council for Sustainable Development (WBCSD) is 
a testament to this. It shows how companies are 
taking the lead in finding answers to global en- 
vironmental problems. 

Trends show that society is increasingly con- 
cerned about hdw companies manage the envir- 
onment and that markets reward eco-efficient 
companies, i.e., those that fulfill their economic, 
environmental and social responsibilities. 

United to solve global problems 


Conserving healthy ecosystems and biodiversity, 
ensuring that people have access to clean water, 
using natural resources sustainably, producing and 
trading goods and services eco-efficientiy, reducing 
greenhouse gas emissions, developing environ- 
mentaUy-ftiendly technology.. . all these issues and 


But business cannot do it alone. Though it can 

develop and implement strategies for sustainable 

development, as WBCSD ’s member companies are 

demonstrating, it has to work wi thin the framework 

conditions set by governments. 


Yet, in order to accelerate progress toward sus- 

tainable development, governments should consult 
with business leaders and others to devise enabling 

framework conditions that 
allow consistent and real- 
istic goals to be developed 
and met 

There is much scope for 
collaboration between 
governments, the private 
sector and others. Build- 
ing bridges between those who bold different views 
is therefore central to the achievement of sustainable 

For more information about Eco- Efficiency', see 
pages 17-21 of today s IHT. 

During the UN General Assembly Special Session 
(UNGASS), the WBCSD will take the lead in the 

• High-Level Roundtable: involving WBCSD CEOs, 
high government and UN representatives, to review 
the progress achieved by business since Rio. 

• Business Panel Forum: open to NGOs to ask 
questions of a selection of WBCSD CEOs on how 
their companies have responded to the challenges 
set forth by Agenda 21. 

e Plenary Session: two WBCSD Executive Com- 
mittee members, Eugenio Clariond Reyes, exec- 
utive president of Grupo IMSA, and David Kerr, 
chairman and CEO of Noranda, will address del- 

e Launch of the WBCSD-iUCN primer “Business 
and Biodiversity: a Guide for the Private Sector," 
which looks atthe implications of the Convention on 

Biological Diversity for business and suggests ways 

for companies to be involved in the convention 
process atthe international, national and company 

has aligned its practices with the aspirations en- many more are at the forefront of business priorities . 

"We cannot afford to sit on the sidelines and allow 
others to set the environmental agenda . Business's 
active involvement is essential if progress is to be 
made. " 

Livio D. DeSimone, Chairman and CEO, 3M 

What Is the WBCSD? 

A business group of 123 companies from 37 coun- 
tries , sharing a commitment to the environment and 
the principles of economic growth and sustainable 
development It encourages high standards of en- 
vironmental management in business. 

The World Business Council for Sustainable De- 
velopment also benefits from a regional network 
located in developing countries and countries in 
transition, representing more than 700 business 

The WBCSD aims at developing closer cooper- 
ation between business, governments, NGOs and 
other organizations concerned with sustainable de- 
velopment. We also seek to encourage high stan- 
dards of environmental management in business 

WBCSD Publications 

WBCSD publishes reports and books on a wide 
range of business and environment related topics. 
The latest WBCSD publications include: "Signals of 
Change: Business Progress Towards Sustainable 
Development” which records the progress busi- 
ness has made toward sustainable development 
since 1992; “Business and Biodiversity: A Guide for 
the Private Sector," which explains why business 
should be involved in the biodiversity debate and 
suggests how it can participate; "Environmental 
Performance and Shareholder Value," which 
bridges the gap between environmental and finan- 
cial performance, and provides practical guidance to ’ 
investors and analysts. 

Copies may be obtained from E&Y Direct, Fax: (44 
1202) 661999. Please contact E&Y for a complete 
list of WBCSD publications. 

WBCSD Member Companies 

3M • ABB Asea Brown Boveri • Akzo 
Nobel - Anova Holding - Aracruz Ce- 
lulose ■ Assurances G&neraJes de France • 
AT&T • Avenor • Axel Johnson Group • 
Bank Umum Nasional ■ BEWAC • BG ■ 
The BOC Group • The British Petroleum 
Company • The Broken Hill Proprietary 
Company Limited • Caemi Minera$2o e 
Metahirgia • Cargill • Chemical Works 
Sokolov • CH2M Hill * China Petro- 
chemical Corporation (SINOPEC) • Clif- 
ford Chance * COGEMA * Coois Brew- 
ing Company * DAN Hotels Corporation • 

Danfoss • De Lima & Cia ■ Deloitte 
Touche Tohmatsu International • The 
Dow Chemical Company • DuPont * 
Eastman Kodak Company * EBARA 
Corporation • The Environmental Re- 
sources Management 1 Group • ESKOM * 
FALCK Group - Fiat Auto • Fletcher 
niHilpngft * Fimdacion Juan March . • ■ 
Garovaglio y Zondquin * General Motors • 
Gerling-Konzem Insurances • Glaxo 
Wellcome • Grupo IMSA • Heineken ■ 
Hemz-Wattie • Henkel • Hitachi • Hoechst - 

F. HoSmann-La Roche * Imperial Chem- 

ical Industries • Indonesian Forest Com- 
munity • Interface * International Paper 
Company * Inti Karya Persada Tehnik • 
Itochu Corporation • John Laing • John- 
son & Johnson • Johnson Matthey • 
Kajima Corporation • The Kansai Electric 
Power Company ■ Kikkoman Corpora- 
tion ■ Kvaemer • Lafarge • LG Group • 
Mitsubishi Corporation ■ Mitsubishi Elec- 
tric Corporation • Monsanto • National 
Westminster Bank * NEC Corporation • 
Neste • Nestlfe • Nippon Telegraph and 
Telephone Corporation * Noranda • Norsk 

Hydro • Novartis • Novo Nordisk ■ 
Ontario Hydro • Philips Electronics * 
Pirelli • Pliva • PoweiGen • The Procter & 
Gamble Company * RAO Gazprom * 
Rbone-Poulenc • Rio Doce International - 
Rio Tmto • Saga Petroleum - Samsung 
Electronics * S.C. Johnson & Son • Scu el- 
der, Stevens & Clark • Seiko Group • 
Severn Trent ■ SGS Societe Generate de 
Surveillance Holding • SGS-THOMSON 
Microelectronics * Shell International ■ 
SHV Holdings * Skanska * Sonae In- 
vestimentos ■ Sony Corporation • 

SOPORCEL • Statoil ■ Stora • Storebrand ■ 
SulzeT * Swiss Bank Corporation • Taiwan 
Cement Corporation ■ Texaco • Thai 
Farmers Bank ■ The Tokyo Electric Power 
Company • Toshiba Corporation * Toyota 
Motor Corporation • TransAlta Corpo- 
ration • Unilever - UPM-Kymmene Cor- 
poration • Vattenfall • Volkswagen • Waste 
Management International * Westvaco 
Corporation • Weyerhaeuser * White Mar- 
tins • WMC • Xerox Corporation ■ The 
Yasuda Fire & Marine Insurance Com- 
pany * Zurich Insurance Group 




t • 






Temper the Boasting 

President Bill Clinton was feeling 
pretty good about things this weekend 
as he hosted his fellow leaders from the 
industrialized world in Denverfor their 
annual get-together. The U.S. eco- 
nomy just keeps on ticking, while Ja- 
pan and Europe seem mired in prob- 
lems. At these affairs, the Japanese 
used to primly lecture the Americans 
on their unmoral profligacy as reflec- 
ted in U.S. fiscal deficits. Now Amer- 
ica’s budget deficit is under control, 
while Japan's is ballooning. 

Well, we wouldn't begrudge Mr. 
Clinton a few minutes of good-natured 
bragging- After all, U.S. unemploy- 
ment is at a two-decade low, economic 
expansion is challenging records, and 
the stock market continues to astonish. 
Still, too much gloating would be out 
of place. On some of the really hard 
questions, after all, America's political 
establishment doesn't seem much 
more capable of finding solutions than 
Europe's or Japan's. 

All three are facing similar demo- 
graphic crises, with aging populations 
needing in coming decades to be sup- 
ported by fewer and fewer active work- 
ers. and that long-term challenge — 
known in America as the Social Se- 
curity and Medicare crisis — has con- 
founded eveiyone so far. On what may 
prove the world’s most serious en- 
vironmental problem — climate 
change caused by industrial activity — 

Mr. Clinton so far has proved similarly 
incapable of leadership. 

Moreover, the much trumpeted 
American model has its weaknesses. 
Mr. Clinton and his economic soul maje, 
Prime Minister Tony Blair, are p ushing 
a recipe of deregulation, open trade and 
supposedly smaller government to spur 
entrepreneurship, innovation and job 
creation. There’s a lot to be said for their 
model But was it only last year that ' 
Patrick Buchanan and so many others 
wane decrying the cruelty of this ap- 
proach? The Europeans pay a price, m 
unemployment and stagnation, for their 
well-padded social safety net. But 
Americans pay a price — in inequality, 

insecurity and a growing umfereiagg — 
for their freewheeling system. 

In foot, none of the leaders in Denver 
could claim to have all or even most of 
the answers for this new era of glob- 
alization. It brings the promise of con- 
stant change and widening prosperity, 
as Mr. Clinton preaches. But the mo- 
bility of capital across borders also 
undermines governments’ ability to 
tax fairly, to protect the environment 
and to shape societies consonant with 
national values and desires. Accom- 
modation will have to come through a 
combination of new forms of inter- 
national cooperation and locally suit- 
able national adaptations. Everyone in- 
volved still has much to learn. 


Take Warming Seriously 

Five years ago, more than 100 world 
leaders came together in Rio de Janeiro 
for the first international Earth Summit, 
leaving a diaphanous trail of promises 
to clean the earth’s atmosphere, save its 
rain forests and otherwise collaborate 
on common environmental challenges. 
Many of these leaders or their suc- 
cessors will convene at the United Na- 
tions this week to review their work. 
There is little to celebrate. The oceans 
are as polluted as ever, and deforest- 
ation proceeds at a ruinous pace. Per- 
haps the most conspicuous failure, 
however, involves the hugely conten- 
tious subject of global wanning. 

Bill Clinton cannot avoid address- 
ing that issue when he speaks on- 
Thursday. With only 4 percent of the 
world's population, die United States 
produces more than a fifth of the 
“greenhouse gases" like carbon -di- 
oxide that are contributing to a gradual 
and potentially disruptive warming of 
the earth's surface. Moreover, the 
United States has fallen well short of 
its Rio pledge to stabilize greenhouse 
e miss ions at 1990 levels by the year 
2000. Only two of the industrialized 
nations that joined in that pledge, Ger- 
many and Britain, are expected to meet 
their targets. The United States will 
exceed it by 13 percent or more. 

The administration has already con- 
ceded that die voluntary approach en- 
dorsed in Rio is not working and that it 
will accept "binding." enforceable 
targets on greenhouse emissions if oth- 
er industrialized nations go along. Mr. 
Clinton does not have to go much be- 
yond that in his speech. A global treaty 
will not be signed until a final meeting 
in Kyoto; Japan, in December. But he 
has to sketch the outlines of a credible 
and economically feasible plan aimed 
at the earliest possible reductions. He 
must also send a strong signal that if 
there is a final agreement' in Kyoto, he 
and his vice president, Al Gore, will 
work hard to get it through Congress. 
Any serious plan to reduce greenhouse 
gases will cany political risks because 
it will not be cost-free. Mr. Clinton’s 
audience will want to know whether be 
and Mr. Gore are up to the challenge. 

The president has one important 
thing going for him. There is a far 
broader scientific consensus on global 
warming than there was in Rio five 
years ago, and there are many more 
creative ideas about how to address iL 
Here is where the issue stands. 

The science. One reason why die 
industrialized nations opted for vol- 
untary targets in Rio was that main- 
stream scientists simply could not 
agree whether man-made emissions 
had contributed to the small rise in 
global temperatures that began late in 
the 19th century. In 1995, however, the 
UN Intergovernmental Panel on Cli- 
mate Change, consisting of about 2,500 
scientists, concluded that they had. The 
scientists' language was cautious, their 
forecasts gloomy. Unless the current 
rates of combustion of carbon-based 
fuels — coal, gas, oil — could be 
reduced, they warned, temperatures 
would rise by between 1 ana 3.5 cen- 

tigrade degrees over the next century. 

Changes in the middle level of that 
scale could cause a 50-centimeter rise 
in sea levels that would flood coastal 
lowlands and tropical islands, an in- 
crease in weather extremes, and dam- 
age to forests and croplands. Despite 
challenges from businesses, which 
have attacked the science in tobacco- 
Lodustry fashion, the UN panel has not 
retreated from its basic findings. 

Remedies and costs. About one- 
third of the atmosphere's greenhouse 
gases is produced by electric power 
plants, one-third by cars and trucks, 
and one-third by other commercial en- 
terprises and ordinary households. Re- 
ducing these gases not only means 
using less energy. It will also require 
expensive investments in cleaner fuels, 
cleaner cars and new technologies. 

Some industrial spokesmen have 
said that this is a recipe for national 
bankruptcy. Earlier this year, however, 
about 2,000 economists signed a state- 
ment asserting that the benefits of ac- 
tion on climate change outweighed the 
costs and that a well-tailored plan re- 
lying totally on market mechanisms 
could actually improve productivity. A 
study by the worm Resources Institute 
reached the same conclusion. Both the 
economists ami the study suggested 
that one mechanism could be a carbon 
tax that would make coal and pet- 
roleum fuels more costly and discour- 
age consumption. The revenue from 
the tax would then be recycled into the 
economy in the form of lower payroll 
and corporate taxes, thus encouraging 
new investment. 

Since a carbon tax is unlikely to fly 
in Congress, both the economists ana 
the study suggested a more politically 
palatable option that the administra- 
tion has generally embraced — an in- 
temarional emissions- trading scheme 
that would set a global ceiling ou emis- 
sions and give each country a national 
ceiling. The idea behind thus scheme is 
that rich nations which cannot keep 
within their limits without crippling 
financial investments will be able to 
“buy" pollution permits from poorer 
countries whose economies are so in- 
efficient that even the tiniest adjust- 
ments can achieve big reductions in 
greenhouse emissions. 

This mechanism is not without 
flaws, and it remains to be seen wheth- 
er eveiyone can agree on such a com- 
plicated scheme before Kyoto. 

But in the long run Mr. Clinton's 
greatest problem may be to convince 
Congress, which must ratify whatever 
emerges from Kyoto, to take tbe issue 
of global warming as seriously as the 
scientists do. That means taking it se- 
riously himself and getting his vice 
president, who has been silent on the 
issue of late, to speak out It was Mr. 
Gore, after all, who asserted in “Earth 
in the Balance" that global warming 
“threatens to destroy foe climate equi- 
librium we have known for foe entire 
history of foe human race." He added, 
“The longer we wait, the more un- 
pleasant our choices become." 


INTER WluNU-#** * 4 


|W M« )Mk m* **» 





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•‘.n> . *. 

A UN Deal Made 


W ASHINGTON — Bill Clinton is 
engaged in a curious and mis- 
guided quest for bipartisan support on 
foreign policy. He is making untenable 
deals in Congress that strengthen his 
bitter ideological enemy. Senator Jesse 
Helms, and weaken the position and 
power of foe members of Congress 
who should be his natural allies, the 
moderate Republicans. 

When foe Senate voted 90-5 last 
Tuesday no pass a bill that mentions 
s&ible U.S. withdrawal from the 
nited Nations and cripples foe au- 
thority and independence of foe ad- 
ministration’s foreign aid program, the 
lonely opposition to this legislative 
monstrosity was led by Senator 
Richard Logar, Republican of Indiana. 

Mr. Lugar, one of die Senate's lead- 
ing internationalists, warned eloquently 
that his colleagues were playing with 
fire by adopting an approach to the 
United Nations that not even America's 
closest allies are likely to support. He 
spoke convincingly of foe importance 
of principle and of U.S. leadership in 
foe world body. And he was then ig- 
nored when it came time to vote. 

The natnral leader of foe opposition 
to Mr. Helms's openly avowed aims of 

m* * 

By Jun Hoagland 

eliminating foreign aid and bringing 
the United Nations to its knees should 
be Joseph Bided, Democrat of Del- 
aware. But Senator Biden, strongly en- 
couraged by di e administration, was 
instead showering fulsome praise on 
foe North Carolina Republican and 
rounding up votes for the bill, which 
lists Joseph Biden as co-author. 

Clinton aides explain this curious 
situation by asserting that they and Mr. 
Biden are dealing with the realities of 
iwer. Mr. Helms is chairman of foe 
Foreign Relations Committee 
and has frequently held Democratic 
policies and diplomatic appointments 
hostage. He has elevated legislative 
blackmail into stale terrorism. 

He has blocked funding increases for 

the Stale Department for the past two 
years and was threatening to do so 
again until foe administration reached a 
“compromise** with him through Mr. 
Biden. who is foe new ranking Demo- 
crat on the committee and eager to 
mak e his’mark as a forger of consensus. 
To achieve this, he 1ms joined with Mr. 
Helms in mixing apples and oranges. 

linking die future of U.S. 
w ith finding far tbe United 

The bill clears the way far new find- 
ing for two hems: a reorganized. Sswe 
Dep artm ent that would get tiusjpkw 
control of ftenow independent Agency 

Administr ation 
that they the 

to accept soc 

bffl in a legislative conference as 

so fte ni ng of tig 

for International Development, and 
payment of $819 millio n of America's 
$1.2 Milkman back debts to the IMfesd 
Nations over three years. 

But included in the hill is an 1 8-page 
list of conditions that the United Na- 
tions must meet to get the money. UN 
Secretary-General Kofi Annan sugges- 
ted to influential Washingtonians he 
saw here last week that tbe General 
Assembly was unlikely to accept such 
American umlateralisiB over money 
that is clearly owed! 

Of the arrears, $658 million is owed 
to Britain, France, Germany, Italy and 
other countries that took pert in peace- 
keeping operations approved by the 
United States. Only 5percent of foe total 
is owed to the United Nations itself. 

Failure by the United Nations and 
foe United States to reach agreement on 
Mr. Helms’s conditions would trigger a 
<4>*in of events that ultimately could 
lead to an American exit from the 
world organization, foe bill suggests. 

solve differences with 
House-passed version. They fed ft*, 
he is increasingly concerned withy* 
place m history and is now read* mik -1 
constructive if treated with tbe 
defe re n ce that Secretary of 
Madeleine Albright has shown bank. 

Bat Mr. Clinton’s people 
tactics, while Mr. Helms wages 4b' 
ideological war. As Mr. Lugar del- 
icately hinted os Tuesday, Mitt hfc 
Helms and this legislation aim to erode 
is the mtemationalist philosophy that 
has guided U.S. foreign policy for foe 
past hatf-cennny. 

The vote on Tuesday "imperils the 
United Nations," said Mr. Lugar, a 
man not given to overstating his case. 

In gening the Senate to approve foe 
Chemical Weapons Convention last 
month, foe White House stood on prin- 
ciple and refused to bargain with Mr. 
Helms on his own terms. But principle 
was abandoned this time. The White 
House let him link UN financing and 
foe future of U.S. foreign aid. 

.The Washington Post. 




S*f«T • 


Taiwan Isn’t Hong Kong and Doesn’t Want ‘Two Systems’ 

T AIPEI — As Hong Kong 
prepares to return to China, 
Taiwan is busy revising its na- 
tional constitution and estab- 
lishing foe groundwork 'for 
democratic development These 
divergent paths underscore foe 
impossibility of applying to 
Taiwan foe “one country, two 
systems” formula that China 
has devised for Hong Kong. 

Beijing has said that after the 
handover of Hong Kong next 
week, and of Macau in 1999, it 
regards annexation of Taiwan 
as foe final step in realizing a 
unified China. 

The people of Hong Kong 
generally welcome foe end of 
British rule and foe return of 
Chinese sovereignty. Taiwan’s 
people, who have no recent ties 
to China, do not have similar 
feelings of welcome. 

More than 85 percent of 
Taiwan's population of 21 mil- 
lion are descendants of pioneers 
who migrated from China sev- 

By Feng Min g - min and Phyllis Hwang 

eral centuries ago. The Chinese 
who fled to Taiwan after foe 
People’s Republic was estab- 
lished by foe Communists in 
1949 are less than 15 percent. 

In Hong Kong, one- third of 
the population was bom in 
China. Most of foe remainder 
are foe sons and daughters of 
immigrants who came from 
China in foe past 50 years. 

Another significant differ- 
ence lies in foe relative levels of 
political awareness. 

Since 1842, Hong Kong has 
been administered as a British 
colony, with the governor ap- 
pointed by the Queen in London 
and foe main governmental 
bodies appointed by foe gov- 
ernor. For close to 150 years of 
British rule, the Hong Kong 
people did not organize any 
movements for democratic re- 
form. Demands for greater 
political participation emerged 

only in recent years. When 
Governor Chris Patten opened 
Hong Kong’s Legislative 
Council to elections in 1995, a 
mere 36 percent of registered 
voters cast ballots. 

Although Taiwan has a sim- 
ilar history of colonialism and 
foreign domination, it has a 
long tradition of active demo- 
cratic opposition. After colon- 
ization by foe Spanish and: foe 
Dutch, it fell under Chinese rule 
in 1683. For tbe next two cen- 
turies the local population led 
68 revolts against officials of 
the Qing dynasty, an average of 
one every’ three years. 

After its defeat by Japan. 
China ceded Taiwan to Japan in 
perpetuity in 1895. A group of 
Qing officials and Taiwanese 
leaders defiantly declared the 
island foe Republic of Taiwan. 
Japanese troops swiftly crushed 
the republic. But persistent 

Taiwanese demands for repres- 
entation within foe Japanese 
government produced foe For- 
mosan Home Rule movement. 

After World War B, Japan 
was forced to relinquish Taiwan 
to the Allied powers. Expelled 
from China in 1949, foe anti- 
communist Kuomintang as- 
sumed control and plunged foe 
island into one of the darkest 
eras of its history. Yet neither 
foe brutality of foe Feb. 28 Mas- 
sacre in 1947, in which more 
than 20,000 Taiwanese died, 
nor 38 years of martial law de- 
terred foe people from seeking 
their histone destiny — a demo- 
cratic republic on Taiwan. 

Despite Beijing’s attempts to 
intimidate Taiwanese voters 
with military exercises and live 
missiletests, foe turnout of more 
than 70 percent in Taiwan's first 
presidential election in 1996 
showed foe extent of popular 
commitment to democracy. 

From next month, China will 

have responsibility for Hong 
Kong's defense ana foreign re- 
lations, while promising to re- 
spect the existing political eco- 
nomic and judicial systems for 
50 years. Similar pledges of 
autonomy made to Tibet did not 
prevent China from invading it 
in 1959 and subsequently vi- 
olating foe human rights of foe 
Tibetan people. 

The Taiwanese reject foe 
“one country, two systems" 
model. They have not struggled 
for foe past 400 years to achieve 
their current level of democracy 
only to risk tyranny under 
Chinese communism. 


Peng Ming-min was the op - 
position Democratic Progres- 
sive Party candidate in Tai- 
wan's first presidential election 
in 1996. Phyllis Hwang, his as- 
sistant, studies international 
Ian 1 in the United States. They 
contributed this comment to the 
International Herald Tribune. 

JMHMC , *•* 

A Good European Start for Blair, but Lots More to Be Done 

B russels — Six weeks 

after taking office, Bri- 
tain's new prime minister faced 
his first big Eurotest — foe final 
stage in negotiation of a suc- 
cessor to the Maastricht treaty. 
John Major's confrontational 
style would have wrecked foe 
Amsterdam conference. Tony 
Blair negotiated robustly, but 
his style was constructive. 

• After many years, Britain had 
come back in out of foe cold. 

Now the Blair administration 
feces in Europe foe long haul. 
Will this new chapter turn out to 
be a success, for Britain and for 
Europe? Ir depends on foe an- 
swers to four questions. 

The first is what Britain 
wants. W alter Hall stein, foe first 
president of foe European Com- 
mission, outlined Europe’s fu- 
ture 40 years ago with foe phrase 
“customs union, economic un- 

By Roy Denman 

ion, political union.” But Bri- 
tain has always given every .im- 
pression of wanting nothing 
more than a free mule area. 

Robin Cook, foe new foreign 
secretary, recently said he 
wanted : ‘to make Britain a lead- 
ing player in a Europe of in- 
dependent states.” 

But that is not where Europe 
is heading. In 18 months foe 
action will switch to an eco- 
nomic and monetary onion of 
1 1 member states — all foe cur- 
rent members minus Britain, 
Sweden and Denmark, which 
do not want to join, and Greece, 
which cannot. 

Among these countries, the 
Europe of foe Eleven, economic 
and monetary union will mean a 
massive pooling of sovereignty, 
a major step to a confederal or 

federal Europe. For Britain 
much will depend on whether it 
says “We would like to join bat 
we need first to get popular con- 
sent," or “We are not joining 
and do not know whether we 
shall want to.” In foe latter case, 
Britain will not be a player, 
leading or otherwise, but a spec- 
tator in foe wings. 

Second, in talking to his part- 
ners, how far will Tony Blah- 
reveal a sense of history? The 
torch of history lights not only 
foe dusty past but also foe path 
ahead. Has he ever read foe 
memoirs of some who started 
foe European adventure — Jean 
Monnet, Walter Halls tein, 
Robert Marjolin? How can be 
understand foe aspirations of 
those around foe European Table 
if he has not? 

Netanyahu Has Angry Friends 

T EL AVIV — You think 
Yasser Arafat and Ben- 
jamin Netanyahu don't trust 
each other? You think Ehud 
Barak, foe Labor Party's new 
top man. and Prime Minister 
Netanyahu don’t trust each 
other? Those fierce feelings 
are as nothing compared with 
the depth of distrust felt for 
one another by Bibi and almost 
all foe longtime leaders of his 
own right-wing coalition. 

Benny Begin, high-prin- 
cipled son of Menachem Be- 
gin. bailed out with a blast 
after the Hebron partial pull- 
out Moshe Arens, Bibi’s 
longtime mentor who was 
frozen out foe minute Bibi 
gained power, calls the mist 
factor his former protege's 
“character flaw.” 

Last week the internecine 
warfare escalated with foe in- 
duced resignation of Finance 
Minister Dan Meridor. a mod- 
erate Likudnik “prince" re- 
spected by intellectuals and 
foe media, who had shown 
lokewann support for Bibi 
during foe ordeal of the * ‘Bar- 
On affair." The day after Is- 
rael’s Supreme Court closed 
that flimsy case, a financial 
policy crisis was precipitated 
and Mr. Meridor, overruled by 
Bibi, resigned. 

After a year of wincing 
whenever he heard tbe prime 
minister ask, in English, how 
he could "control foe spin,” 
Mr. Meridor was glad to be 
able to erase his wimpish 
reputation with a gutsy de- 
parture. As Aiik Sharon 
nearly put it * ‘Dan leaped out 
of a ground-floor window.” 
Mr. Netanyahu surely 

By William Satire 

knows that Mr. Sharon trusts 
him as little as Mr. Meridor 
does. Exactly a year ago, after 
Mr. Sharon's help with foe 
religious vote helped pur him 
in office, Bibi tried to double- 
cross Alik with a minor post, 
and then had to create a min- 
istry when .friends of foe 
white-haired lion of Likud 
threatened a revolt. 

But now Bibi needs Arik’s 
far-right influence again, and 
has — at this writing — slot- 
ted him into Mr. Meridor's 
empty Finance posL Clever 
maneuver Out goes foe ir- 
ritating centrist on a policy 
pretext, and into that top slot 
goes foe hard-liner whose 
straight talk is trusted by rab- 
bis and Arabs. 

Yet maybe not so clever. 
The waltzmg-out of Mr. Me- 
ridor upset tbe one cabinet 
member Bibi cannot afford to 
lose, Natan Sharansky, whose 
party of immigrants has seven 
votes in foe Knesset. Should 
the former Soviet dissident 
decide to take a walk, Bibi's 
government would fell. 

And Mr. Sharansky is 
sore. Not only were 
tbi’s promises to his con- 
stituents broken, bur foe 
promise ro clear appointments 
— such as ambassador to Rus- 
sia — through a Meridor- 
Sharansky filter was ignored 
He has one foot out the 
door. “Bibi takes us for gran- 
ted Because I am his friend, 
because I share his political 
vision, immigrants have to 
suffeT?’’ He no longer mists 

■ ■ i i\i 



his friend and no stranger to 
dissent, won't accept coalition 
discipline in Parliament. 

When tbe irate Mr. Shar- 
ansky boycotted Friday's cab- 
inet meeting, Bibi got foe mes- 
sage. Mindful of his friend's 
own worries about Mafia-con- 
nection smears, he showered 
foe absent man with more 
power to review appointments, 
foe source of so much Net- 
anyahu grief so far. That takes 
him past foe current flap 

My purpose hoe is to il- 
lustrate what happens when 
one voter-friendly political 
leader dares to try to turn a 
parliamentary system, built on 
foe British model, toward a 
presidential system adapted 
from foe U.S. model. 

Combined with a turn from 
Israel’s semi-socialism, that is 
a wrenching systemic change. 
People who deride his per- 
sonal ambition do not realize 
how ambitious is his goal. 

His animus toward foe es- 
tablishment that launched him 
is a weakness. His relish in 
defeating it in detail is self- 
indulgent, foe mark of foe sore 
winner.- Because his manip- 
ulation is so transparent, his 
spinning falls shon of deft 
■democratic devioosness. 

He may fail. Israelis may 
decide that a greater concen- 
tration of executive power and 
diminution of splinter-party 
power is not right forthem. Or 
they may be waiting for a lead- 
er who inspires more trust. 

But 1 ! 
in this 

daring greatly," in Theodore 
Roosevelt’s words. 

The New Yori Times. 

uiuj uu nuiLut^ftvi u ivxiU" 

ho inspires more trust, 
it if Mr. Netanyahu fails 
lis arena, “he fails while 

When he lectures foe Con- 
tinentals about foe need for 
greater labor flexibility and de- 
regulation, he makes some sen- 
sible points. But Continental 
social history is different from 
die Anglo-Saxon model. It has 
echos of Bismarckian social re- 
forms, of Erhard and the Ger- 
man postwar social consensus, 
of foe Popular Front and the role 
of foe stare in France. 

Of course, foe Continental 
model needs to be trimmed. But 
its inheritors will insist on keep- 
ing some sense of social co- 
hesion, of consulting workers 
and treating them like human 
beings. They will never move 
over to a hire and fire, devil take 
foe hindmost capitalism 

Third, how will foe British 
ministers shape up in foe nu- 
merous Council meetings in 
Brussels? Under previous gov- 
ernments, Tory and Labour 
alike, their record has mostly 
been poor. Many have felt and 
seemed about as mnch at home 
as Huckleberry Finn at foe court 
as Sl James. . 

To most of foe new team, 
Brussels will be a foreign 
world. Traditionally, few Brit- 
ish ministers have spoken a for- 
eign language. When taking 
foeir seats in Brussels at Coun- 
cil meetings, they have greeted 
with irritation foe quick ex- 
changes In French across foe 
table before foe start of foe 
meeting. In discussion they 
showed clearly that their un- 
derstanding of foe historical 
background to what their col- 
leagues were saying was zero. 

When they read out foeir 
briefs, written by civil servants 
in London, they gave the im- 

pression of painfully decipher- 
ing an Assyrian inscription. 
Their French colleagues in par- 
ticular, far better educated at foe 
great, meritocratic French 
schools, would habitually eat 
them for breakfast. 

Fourth, will Britain look a 
again at its attitude to foe staff- 
ing of the European Commis- 
sion? British politicians and 
Whitehall mandarins are defen- 
sive agains t what they perceive 
as athreano their authority, and 
thus foeir attitude is one of ar- 
rogant and insular disdain. 

No high flier now in White- 
hall would dream of becoming a 
director general of foe Com- 
mission, even if helping to for- 
mulate policy for a union of 370 
million might be more influ- 
ential than a top Civil Service 
job at home. 

France, which also has a first- 
class career civil service, saw 
from foe start where its interests 
lay and consistently sent to 
Brussels some of its best and 
brightest. The result has been 
that Britain's influence ar foe 
top of foe European Commis- 
sion’s staff has been signifi- 
cantly less than that of France. 

On the answers to fosse ques- 
tions will depend Britain’s 
power and influence in Europe. 
Either Tony Blair joins whole- 
heartedly in the construction of 
Europe, or he will find himself 
on foe sidelines watching the 
Europe of foe Eleven move from 
economic to political union. 

The writer, a fonner repre- 
sentative of the European Com- 
mission in Washington, contrib- 
uted this comment to the 
International Herald Tribune. 

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1897: A Tragic Scene 

PARIS — The Temps relates a 
tragic scene which was enacted 
yesterday [June 22}: A man 
named Eugene Gessel fired six 
revolver shots at his wife and 
mother-in-law. Both women fell 
to foe ground seriously injured. 
Gessel and his wife were always 
quarreling about her illegitimate 
■Child and this led to foe woman 
leaving her home to live with her 
mother. Gessel tried to persuade 
hertoreium to him. He men tried 
to obtain a divorce, but foe au- 
thorities took no notice of his 
letters and this induced him to 
take the law into his own handy 

1922: Wilson Slain 

LONDON — Field-Marshal Sir 
Henry Wilson was assassinated 
today [June 22] on foe doorstep 
of his West-End residence, by 
two men in civilian clothes. 
Struck by three shots, he fell 
and died. The two men were 

arrested after a sensational run- 
ning fight, in which they 
wounded two policemen, a taxi- 
driver and a child. The men are 
James O’Brien and James Con- 
nolly, both twenty-four. They 
refuse to make any statement, 
but documents found on them 
indicate that they are connected 
with the Irish revolutionaries. 

1947: A Wait in Vain 

NEW YORK — A former staff 
sergeant waited at tbe pier today 
[June 21] fra* a Swiss girl he had 
courted in Paris for two years, 
but foe ship's surgeon met th* 
ex-GI and stunned him with the 
news that the girl didn't love 
fri m any more and intended to 
many the surgeon instead.-* 4 !’ 01 
sorry about this thing,” Dr. Tir* 
man told foe youth. "Jeanene is 
going to many me." Later foe 
doctor told reporters that the 

couple had requested a marriage 

ceremony at sea but that foe 

request had been refused. 











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Takeover, Handover or Reversion? 

By WiUiazn Satire 

W ASHINGTON — “Where you 
stand depends on where yon sit” 
is a political adage. In the same way, 
where yon stand often determines the 
word you choose. Take the impending 
transfer of Hong Kong on July I. after 
the British lease on the island territory 
runs out 

If you look at the change as a legal 
seizure by China, you tend to use the 
grabby noun takeover, with Us hostile 
connotation based on American fi- 
nance. “This is an area that views the 
takeover of Hong Kong by China," an 
old Asia hand told a financial reporter 
this month, “as the end of the Onium 
War started in 1850.” 

If you think of it as a British action, 
more of an old empire’s giving than a 
new empire’s talong, then you are 
likely to prefer handover. “Business- 
men . . . involved in Hong Kong’s 
handover, n noted a New York Times 
dispatch from Shanghai, “say they 
must try to bridge the gap.” In The 
Wall Street Journal, die British gov- 
ernor urged the United States not to 
impose trade restrictions “after the 
handover" He also used another term: 
“after its reversion to Chinese sov- 

If you are eager to make obeisances 
to the Chinese, who want it re- 
membered that the ancient city spent 
only 150 years under the British Sag 
then you use the word Beijing prefers: 
reversion, which means “going back 
to a former state." 

If you want to be scrupulously neu- 
tral and are attracted to the colorless, 
you use return. 

In the past year. The New York 
Times chose return about half the time, 
takeover a fourth, reversion and its 
van ants a little less than a fourth and 
handover about 5 percent. (Zero for 
reunquis hment, a word that reveals 
more of a pedantic affectation than a 
political slant) 


“Lying prone on beds or cots” was 
tne caption of a drawing in Newsweek 
showing a body lying toes upward, 
accompanying its coverage of suicides 

in the ‘Heaven’s Gate" cult near San 

I sent a rather cranky com plain t to 

Newsweek,” reports Donald Crosby 
of Springfield, Virginia, “that it had 

Which you use to refer 
to Hong Kong depends 
on where you sit. 

incorrectly used die word prone to de- 
scribe the ter minal position of die sui- 
cide victims.” 

The m a g a zi ne responded: "While 
your suggestion, supine, would also 
have been correct our use of prone was 
based on the m eaning ‘lying ^ nt or 
prostrate, in a horizontal position' giv- 
en in Webster’s New World Diction- 
ary — We stand by our usage, though 
we appreciate your concerns.” 

Crosby is not placated. "When my 
drill instructor screamed at me to as- 
sume the prone position when 1 was 
firing the M-l rifle in 1945,” he writes, 
"his physical well-being (and mine) 
would have been jeopardized had I 

arbitrarily chosen to fire my M- 1 in the 
supine position on the assumption that 
prone and supine are synonymous.” 

TTiey are not Newsweek chose to 
cover its error by pointing to (he Web- 
ster’s New World second, or fuzzy, 
definition, ignoring its first “lying or 
leaning face downward.” 

Moreover, in a nqte about synon- 
ymy, the dictionary reports that "prone, 
-in strict use, implies a position in which 
the front part of the body lies upon or 
faces the ground; supine implies a po- 
sition in which one lies on one’s back." 
WNW goes on to illustrate the latter 
with “he snores when he sleeps in a 
supine position,” an observation with 
which my wife grimly agrees. (A pil- 
low acts as a kind of muffler when one 
mores in a prone position, but it makes 
it hard to breathe.) 

•Supine has another sense of “men- 
tally or morally inactive; listless.” 
That does not describe the irate 
Crosby, a retired university professor, 
who asks: ‘ ‘If prone and supine can be 
used interchangeably, what’s next? In- 
fer and imply? Loan (the noun) and 
lend (the verb)? Will hot and cold 
become synonyms, with their once- 
specific qualities regulated by the sub- 
jective caprice of the user?” 

Nosirree, professor, not with MASS 
— Mothers Against Semantic Shift — 
manning the ramparts. Only recently, 
at a meeting of the Judson Welliver 
Society of Former White House 
Speechwriters, an editor of The New 
Yorker assured me that his publication 
will never again confuse flaunt, “to 
make an ostentatious display,” with 
ft out, "to show scorn.” Tlie good us- 
age fight is always worth fighting. 

New York Times Service 


Breaking Tradition 

Continued from Page 1 

Kluger, whose 1996 chronicle of Amer- 
ica’s cigarette wars. "Ashes to Ashes,” 
prescribes a settlement virtually identic- 
al to the one announced Friday. “But the 
cigarette itself may become much less of 
a killer.” 

The 68-page agreement — which still 
must be approved by President Bill Clin- 
ton and Congress — proposes to govern 
everything from bow much nicotine is in 
a cigarette to how much tobacco compa- 
nies would have to pay in fines if reenage 
smoking does not decline precipitously. 

By increasing cigarette pices as much 
as SI a pack, the companies would raise 
money to compensate smokers for eig- 
arette-relaied illness, reimburse states for 
their smoking-related medical expenses, 
pay for health insurance for children who 
lack coverage and finance anti-smoking 
campaigns. The plan would tag cigarette 
packs with bigger, bolder warnings and 
drastically reduce the industry’s mar- 
keting, eliminating the Marlboro Man, 
Joe Camel, product placement in movies 
and sponsorship of sports events. 

But the most audacious aim of the deal 
is to freeze and eventually supplant the 
deep cultural affinity for tobacco in the 
United States, to so stigmatize the cig- 
arette that, 500 years after Euro 

linul *Vrl • I r.d . I'l 

The attorney general of Mississippi, Michael Moore, center, walking 
with his counterpart from Arizona, Grant Woods, and Washington** 
attorney general, Christine Gregoire, to announce the deal on cigarettes. 



The Nature of the Beast 

By Patrick McGiiiigan. 548 pages. $30. 

St. Martin’ s. 

Reviewed by Robert Sklar 

\X7 AS Fritz Lang the greatest director 
YY of the movies’ first century? He 
rates consideration for that honor as one 
of the medium’s master stylists, whose 
tragic vision encompassed human 
grandeur and folly. 

He forged two remarkable careers — 
first as a leading light of pre-Hitler Ger- 
many’s legendary film industry, with 
works such as "Metropolis” and “M”; 
(hen over several Hollywood decades (in 
a new language and citizenship), with 
American classics from “Fury" to 
“The Big Heat." Many film notables 
have chosen emigration or bean forced 
into exile — among directors, think of 
Hitchcock, BnnueL, Wilder and many 
more — but Lang’s dual achievement at 
home and abroad was perhaps unique. 

It's unlikely , however, that he would 
get Patrick McGiiiigan ’s vote. With this 
work McGiiiigan farther strengthens his 
statns as an outstanding film biographer, 
combining felicitous writing with an ex- 
pert’s command not of celebrity gossip 
but of movie history. But more than in 
previous books (on Jack Nicholson, 
George Cukor and Robert Altman), his 
subject here poses the challenge of 
reaching out to readers who are not buffs 
or medalists. 

Thus the subtitle: ‘ ‘The Nature of the 
Beast.” Lang’s beastly nature cast a 
wide net He was a toady to superiors. 

according to McGiiiigan, and a tyrant to 
everyone under him. He was notorious 
for working his film crews long hours 
and refusing them meal breaks, while he 
was surreptitiously supplied with coffee, 
pep pills and secret snacks. 

That’s just the everyday Lang. Then 
there are die major issues. He was, says 
McGiiiigan, amythomaniac, an obsess- 
ive publicity hound who created tri- 
umphant fables starring himself while 
relegating troublesome past events to 
oblivion. Most prominent among the 
la tt e r was- the sensational Haath of his 
first wife, who was completely oblit- 
erated from all subsequent authorized 
accounts of his life. In Berlin, in 1920, 
she discovered Lang and his scriptwriter 
Tbea von Harbou in intimate embrace, 
then died from a gunshot wound later the 
same day. The death was ruled a suicide, 
but Lang-hateis darkly suspected his in- 


F considerably greater historical 
significance- was Lang’s story, 
which the director began telling during 
World Warn, thatin 1933 Goebbels had 
offered him leadership of the Nazi film 
industry. He claimed to have fled to 
Paris on that very day. In recent years 
scholars have demolished the second 
part of this tale, having discovered mul- 
tiple border-cross ing s stamped in the 
director’s passport which was deposited 
after his death in a German archive. 

McGiiiigan ’s further gloss is that 
Lang, prominent among Hollywood's 
anti-fascists, may have demonstrated 
Nazi sympathies prior to 1933. Von Har- 
bou, for instance, whom Lang married in 

1922 and who scripted the director's 
great films of die 1920s, was a stalwart 
Nazi and a leading writer-director of 
Third Reich movies. (They divorced in 
1933, after Lang’s departure.) 

Was Lang blowing hot air with this 
oft-repeated legend? Goebbels publicly 
admired "Die Niebelungen” (1924), 
the director's epic version of the Nordic 
saga. But he also knew that Lang bad 
Jewish ancestry. Bora in 1890 in Vienna 
to a Catholic father and a Jewish mother, 
Lang was raised a Catholic, to which 
religion his mother converted when he 
was 10. McGiiiigan 's treatment of this 
sensitive subject leaves a gap, to my 
mind, by reporting every reference So 
“the Jew” Lang without offering his 
own considered judgment on what such 
racial (or racist) typing signifies, when 
its target is a man baptized in infancy, 
who always regarded himself as a Cath- 

From so astute a film historian one 
also wishes some relative ranking of 
Lang’s faults alongside those of the 
movie world’s many other ogres and 
tale-spinners. And while the author 
makes insightful analyses of Lang’s 
films, the focus on personal transgres- 
sions ultimately precludes full acknowl- 
edgment of what the man achieved 
Such a beast could never be the 

explorers picked up the habit 'from 
American Indians, the allure of smoke 
would no longer symbolize individu- 
alism, sophistication and romance. 

“The tobacco industry spent close to 
$50 billion in the post 20 years on im- 
age,” said Gregory Connolly, the phy- 
sician who is director of the Massachu- 
setts Tobacco Control Program, the 
nation’s most aggressive public anti- 
smoking effort “To think that a ban on 
Joe Camel and billboards is going to 
undo that is naive. This is an investment 
that's going to have a long-term effect. H 

Uniter the agreement, the elimination 
of the addictive chemical within tobacco 
will be possible in 12 years — a de- 
velopment that cigarette makers have 
warred against for decades, even as they 
quietly prepared for it 

A decade ago, Philii 
nies spent more than $300 million on a 
factory designed to remove nicotine 
from cigarettes much like decaffeinaring 
eliminates that drug from coffee. The 
resulting product DeNic, flopped in test 
marketing: Without the nicotine kick, 
the cigarettes had all the appeal of 
smoking wheat 

But in Chattanooga, Tennesse, RJ. 
Reynolds Tobacco Co. is testing the 
opposite approach with Eclipse — all the 
nicotine and almost none of the car- 
cinogens. Smokers say it tastes like an 
“ultra- light” brand — and far better 
than the company's earlier low-smoke 
effort, the disastrous Premier. 

The new battlegrounds will be here — 
pitting tobacco industry -financed public 
health campaigns against the industry's 
own new products — and on the nicotine 

Reducing the amount of nicotine in 
cigarettes — and perhaps eliminating it 
entirely — may create a new form of 
American addict, ami-smoking activists 
warned- “We'll have nicotine addicts 
who rely on the very things we use to 
wean people from smoking — patches, 
gum, nasal sprays.” Dr. Koop said. “But 
if you eliminate the smoke and the car- 
cinogens, you’re ahead of the game.” 

From the perspective of the tobacco 
companies, the settlement — coming 
after 33 years of devastating publicity — 
is a chance to cleanse their multina- 
tional , diversified conglomerates of the 
lingering odor of cigarette smoke. 

In the case of Philip Moms, which 
makes everything from Kraft Macaroni 
and Cheese ro Miller beer, more than 
half its business is outside the United 
States. Tobacco provides a gusher of 
cash dial keeps the companies healthy, if 

KOREA: Radical Students Lose Support 

Robert Sklar, who teaches cinema 
studies at New York University and is 
author of "Film: An International His- 
tory of the Medium " and other books on 
film, wrote this for The Washington 


By Alan Truscott 

P LAYING in the World 
Bridge Federation’s 
Worldwide Fairs, Joe Lrvezey 
and jCcmie Goldberg, were 
North and South in the 
diagramed deal. They collec- 
ted 86 predetermined points 
out of a possible 100 by bid- 
ding, and .making a slightly 
optimistic six spades. A trump 
lead would have been un- 
pleasant, removing a crucial 
entry from the dummy, but 
West led the diamond queen. 

Goldberg won with the 
king and led the heart queen. 
East took the ace, and could 

choose to attack any of 
dummy’s three entries. 
Whatever he did, Sonth could 
ruff a heart end eventually 
score d umm y’s fifth heart to 
make the slain. 

The official analyst made 
an interesting point in the of- 
ficial booklet The slam will 
be defeated, he suggested, if a 
defender has four hearts 
headed by the ace-jack or ace- 
ten or ace-jack-ten and holds 
up when the queen is led. 

This is not necessarily true, 
however, if West has one of 
those holdings. Switch the 
heart two and die heart ace in 
the diagram and South CSU 
survive the duck of the heart 

One way, if she is sure 
heart ace is on her left, 
is to overtake with the king 
and gain an entry. But that is 
not the only way. Instead, 
after winning the heart queen, 
she can cross to the spade 
jack, ruff a heart and draw 
trumps, throwing chibs from 
the dummy. 

Then she leads a diamond, 
and maneuvers to lose a dia- 
mond trick to WesL If West 
plays an honor, he is allowed If heplayes low, South 
takes the ace in dummy, raffs 
a heart and rives up a dia- 
mond. In either case. West 
can eventually be squeezed in 
hearts and clubs. 


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North and South were vulnerable. 
The bidding: 

West Nora 



Pus 1 9 


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Pass 2* 


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Pass SO 



Pass Pass Pass 

West led the diamond queen. 


Continued from Page 1 

Koreans barely noticed media reports 
about the hunger strike. 

Public disenchantment with the rad- 
icals heightened recently after students 
reportedly admitted that they bad beaten 
two men to death while interrogating 
them about accusations that they were 
police informants. 

The students apparently did not intend 
to kill either man, but tortured them so 
brutally that they died of internal in- 
juries. It is not clear whether the men 
were indeed informants. 

"As long as what the students are 
doing is positive and acceptable, it’s 
OR.., but violence and killing are not 
O.K.,” said Kim Sang Ho, 65, head of a 
construction firm. “Their radical ide- 
ology is isolating them.” 

Kim Dae Jung, the main opposition 
leader in Sonth Korea, called this week 
for the radical students to disband vol- 
untarily and start afresh. Other dissi- 
dents are echoing the call, and the gov- 
ernment says it will outlaw this 
particular radical group in August. 

The organization, called Han- 
chongnyon, is a national group made up 
of the student associations of 155 uni- 
versities across South Korea. In recent 
weeks, about 35 student associations 
have said they intend to withdraw from 
the national umbrella, mainly because 
they disagree with the extreme direction 
and the violent tactics it has adopted. 

One of the challenges for the students 
is that they are steeped in the idea that 
their college years should be meat 
protesting, but the longtime aim of de- 
mocracy is basically attained. So now 
die radical students are striving for re- 
unification with North Korea on North 
Korean terms. 

They preach the teachings of Kim II 
Sung, the North Korean leader who died 
in 1994. and they uphold communist 
values of class struggle. 

But their new goals are too extreme 
for the masses, and even many students 
find it difficult to work up much en- 
thusiasm for North Korea as it undergoes 
an economic crisis and severe hunger. 

Once students enter the movement, 
however, it is difficult for them to break 
away, said Park Hong, a Jesuit priest and 
former dean of Sogang University. 
"They are like fanatics of a religion,” he 

Their recruiting methods are quite so- 
phisticated. For instan ce, when students 
begin college, they are sometimes given 
two bills — one for tuition and the other 
for entry into the student association, 
with a notice of the orientation trip. 

Most pay the bills together and end up 
joining the field trip orientation, which is 
nor a school-sponsored outing, but a 
recruiting session, with pro- North 
Korean chants and songs and an evening 
filled with propaganda sessions. 

The leaders of student groups are 
elected, and so the radicals often battle 
with moderates. Yoo Myong Jong, 23, a 
theology student who is vice president of 
the student association ai Yonsei Uni- 
versity, is trying to redirect the once- 
radical student movement at his col- 

He proposed that his group withdraw 
from the radical student organization. 
When some members protested and de- 
manded an open hearing, he held one in 
from of the public library in Seoul and 
defended his beliefs. 

In the end, his association derided not 
to break with the national group, but it 
declared its disapproval with the group’s 
radical principles and tactics. 



i Deep steeps 
• Abbr. before an 

» Fragrant al 

w. — --garde' 
.ft Push roughly 
ia Afflicted with 
strabismus ■ 

20 Traffic tangie 
ai The first Trot 
HRS! ' 
sorting event 
a Cautious 
Jtt Open s bit 

te Come down 

31 Clinton's #2 

32 Sigma follower 
as Blue birds 

M Grown-ups 

as Snares 

as Shooting 

36 BH setters 
« Coating metal 
4i * Are we there 

«2 They're 

exch an ged at 

43 Building block 

4« Goofs up 

• . * 

SeNtktn to Puzzle of June20 

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Dsnanaa aPEKDaa 
□23BQS0Q nsQsaa 
0S3 saisBasn ass 
aaaaa aaaa 
ass asssa 


□20 ana sasss 
223 G assss aana 
Eos □□sagas agai 
assess QBsaassQ 
acussas Bsasaaa, 
qoosgo aoasaai 

46 Second-year 
student, for 

47 Not a beglnper 
46 Get down (ram 

so Thesaurus 
53 Show with . 
Richie and the 

86 Dancer Astaire 

» Banish 
saGun grp. 
ai Brusque 

60 ‘For sake!" 

ai Opposite NNE 
62 Industrial dtyol 
' Germany 


i Long-rurvwng 
• Broadway show 
i Turkey roaster. 

3 Paul Reiser; 
Helen Hunt 
« President 
Jackson or 
. Johnson 

5 Do. as hair 

6 Architectural 

t Ones with Seoul 

e-All — r 



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is Where Dutch 

royals five 

ii Plaything 
is ■ Mana" 

13 Ure Time's 
border ■ 
is Crafty 
as Pirate flags 

27 Bowling alley 
la Enter 

xs The Great White 

30 Swimmer's 
•_ regimen 
si Place for 

34 time 


se Nov. follower 
3? Fasten papers 

40 Gentle 

«■ — Run’ 
(1978 sd-fi film) 

44 Wears away 

46 Rock singer 

47 Chatter 
61 Caustic 

•1. Otherwise 

Karl Ridderbusch Dies at 65; 
Bass Noted for Wagner Roles 

©Aew York TwnesfEdited by Will Shorts. 

83 Wise, man 

84 Chop 

88 Orchestra's 

The Associated Press 

VIENNA — Karl Ridderbusch, 65, 

the heroes of 
eoces world- 
wide, died Saturday of heart disease in 
Weis, Austria. 

Mr. Ridderbusch. whose voice was 
once praised by Herbert von Karajan as 
“the most beautiful bass voice in the 
world,” had been ill for many years. 

He was trained to follow his father as 
an engineer at a brickwork in his native 
Germany, but turned to music when he 
entered a sin ging contest as a young 
man the news agency Austria Presse- 

In foe 1960s and 1970s he toured the 
opera and concert houses of Europe and 
North America, and was especially 
nixed for his interpretations of Wagner, 
Baron Ochs in Richard Strauss’s 
“Rosenkavalier,” and King Philipp in 
Verdi’s “Don Carlo.” 

Lawrence Payton, 59, Vocalist 
Who Led Motown’ s Four Tops 

NEW YORK (NYT) — Lawrence 
Payton, 59, who sang with foe Four Tops 
for more than four decades, died Friday 
of liver cancer at his home in Southfield, 
Michigan, -Abdul Fakir, a Four Tops 
member, said. 

Tbe Four Tops were one of Motown 's 
most forceful groups. From 1965 to 

1974 nearly 30 of their singles reached 
foe pop charts, and they continued to 
make hits into the '80s. 

Mr. Payton was bom in Detroit and 
grew up there. In 1953 he joined Levi 
Stubbs Jr., Renaldo Benson and Mr. Fakir 
in a group they called foe Four Aims. 
They changed the name to the Four Tops 
when Chess Records signed them in 1956. 
They signed with Motown in 1963, and, 
with Mr. Stubbs’s exhortarory lead vo- 
cals, began a string of hits, begriming with 
“Baby, I Need Your Loving” in 1964. 

Fidel Velazquez, 97, Patriarch 

Of Mexican Labor Movement 

Velazquez, 97, foe iron-fisted patriarch 
who dominated Mexico's union move- 
ment since foe late 1930s and helped 
keep tbe ruling party in power, died 
Saturday after being hospitalized for 
severe gastrointestinal infections. 

Often criticized for his authoritarian 
on a labor movement he steered 
;ely along pro-government lines, Mr. 
Velazquez typified a style of politics that 
may not outlive him 
Ten presidents came and went during 
his tenure, and he tod a big hand in 

getting seven of them elected. His strike 

threats were usually bargaining chips in 
the struggle for power within tbe In- 
stitutional Revolutionary Party. 

tbe settlement dramatically reduces the 
danger of massive judgments against the 
cigarette makers, their stocks are ex- 
pected to shoot up in value. 

And to counter the expected onslaught 
of anti-smoking messages, the industry 
can rely on the proven staying power of 
this century's pro-cigarcne images and 
slogans. Just think of the television ads 
that are pan of the American vocabulary 
26 years after they were banned. 

Some anti-smoking crusaders worn 
that warning labels and educational ads 
may actually backfire. In Massachusetts, 
for example, teenage smoking rose by IU 
percent in the first three years of an anti- 
smoking campaign. 

From the mid-1970's decision b\ 
Johnny Carson to hide his cigarette un- 
der his television desk, to the I^Gs 
phenomenon of smokers standing alone, 
staring into the sidewalks as they huddle 
outside office buildings, the stigmatiz- 
ation of smoking has reached an ap- 
parent zenith. 

The United Slates has become an “is- 
land of extremism” on tobacco control, 
said the chief executive of Philip Morris, 
Geoffrey Bibie. Cigarette manufacturers 
are free to seek easier profits in more 
friendly foreign markets, such as 
Europe, where airplanes and restaurants 
still choked with smoke elicit nary a 
complaint, or Asia, where the smoking 
population is still expanding. 


Cease-Fire Broken 
In Congo Republic 

BRAZZAVILLE. Republic of 
Congo — Gunfire and occasional 
shells were heard Sunday, violating 
a cease-fire that the secretory-gen- 
eral of the United Nations. Kofi 
Annan, says is necessary so that on 
intervention force can arrive here. 

After several days of relative 
calm, government troops and militia 
forces resumed fighting around foe 
capital of this central African coun- 
try that has been devastated by 
heavy combat. Sporadic gunfire 
continued into foe morning. 

Mr. Annan wrote to the UN Se- 
curity Council on Saturday, recom- 
mending that at least 1.600 troops, 
plus military observers, be sent to 
secure the city airport. But he stip- 
ulated that foe warring sides would 
first have to promise to abide by a 
cease-fire and try to resolve the 
crisis peacefully. 

Both sides agreed to hold their 
fire for 72 hours as of midnight last 
Tuesday. On Friday night, foe may- 
or of Brazzaville, Bernard K ole las, 
brokered a last-minute seven-day 
extension to the cease-fire. (AP) 

A French Woman 
Is Slain in Algeria 

PARIS — The body of a 
murdered French woman has been 
found in a well in foe Algerian vil- 
lage of Bouzeguene, 90 kilometers 
east of Algiers, an Algerian news- 

55-year old woman, married 
to an Algerian, had regularly spent 
her holidays in foe Berber village, 
said Liberte newspaper, quoting lo- 
cal residents. It said the woman was 
killed “some days ago.” 

Hex suspected murderer had been 
arrested as he was trying to flee to 
neighboring Libya, the newspaper 

It was not clear whether the 
murder was linked to foe fighting 
that has pitted Muslim guerrillas 
against the government. (Reuters) 

Many Brazilians 
Can’t Cite Leaders 

RIO DE JANEIRO — One-fifth 
of voters in the greater Rio de 
Janeiro area cannot name Fernando 
Henrique Cardoso as the president 
of Brazil, according to a poll pub- 
lished Sunday. 

The survey, conducted by foe Rio 
think tank Getulio Vargas Foun- 
dation, also found that 30 percent of 
the 1 .578 people surveyed could not 
identify the Rio state governor, 
Marcelo Alencar, and that 31.5 per- 
cent could not name foe mayor of 
their municipality. 

The survey was conducted be- 
tween December 1995 and August 
1996, but foe results were not re- 
leased until Sunday in the Rio daily 
newspaper, Joraal do BrasiL It did 
not give a margin of error. 

Pollsters were baffled by foe re- 
sults since 97 percent of the re- 
tdents had a television and.ieg- 
ly watched foe news. ( Reuters ) 



PAGE 10 



More Flexibility, Less Fatigues U.S. ‘Cure’ Works | Detroit Papers Ordered 

- _ ______ «• - _ ? aU nrnAramc A 

By Susan J. Wells 

New York 7una Sen tee 

NEW YORK — Last year, Tim Perry 
was approaching buraouL As a lam- 
ina tor operator for a packaging com- 
pany in Edinburgh , Indiana, he had been 
routinely logging 12-hour days, seven 
days a week, for five years. The sched- 
ule left hardly any room for family 
obligations and dashed his hopes of 
someday going back to school. 

*T felt like my kids grew up during 
that time — without me knowing them 
or them knowing me,” Mr. Perry, 36, 
said. “The job was eating me up, both 
physically and mentally. I knew I had to 
make a change.” 

Then he heard about a plant that was 
promising a 30-hour workweek — at 40 
hours’ pay. 

“I’d never heard of anybody giving 
away 10 hours of pay for free." Mr. 
Perry said. He applied and landed a job 
working from midnight to 6 AM., five 
days a week, at Metro Plastics Tech- 
nologies Inc., a 200-employee company 
based in Noblesville, Indiana. 

He can now spend more rime with his 

• • Q 

wife and two teenage children, and he is 
working toward a college degree in 
business administration. 

* ’The 30-40 schedule is a great deal,” 
Mr. Perry said. 

The company is happy, too. The new 
schedule is a recruiting tactic, one of 
several used by American companies in 
areas of low unemployment to get and 
keep workers. The results, according to 
companies using such strategies, in- 
clude increased productivity, lower 
turnover and higher morale. 

Since Metro Plastics started the 
schedule last July, the plant manag er, 
Sam Morris, has filled 30 job openings 
and has nearly 300 applications from 
qualified workers on file. 

Last year, Mr. Monis said, ‘‘We 
couldn’t find any qualified workers. We 
were seriously understaffed, and ads we 
placed got next to no response.” 

With a state unemployment rate av- 
eraging 3.1 percent in the first four 
months of 1997. he said, the plant had to 
do something. 

Shorter workweeks at full pay are still 
an exception in American business, but 
they are not new. Kellogg Co., in Battle 

Creek, Michigan, put a similar plan in 
place in the 1930s. More common, 
however, are compressed, workweeks 
— four 1 0-hour days, for example — - as 
well as flexible working hours and job 

Companies see these plans as cures 
for staffing problems and the growing 
conflicts that employees feel between 
work and personal time. 

In large part, the trend is a reaction to 
labor shortages. The U.S. unemploy- 
ment rate dropped to 4.8 percent of the 
work force in May, the lowest since 
1973. And more than 100 of the 272 
metropolitan areas tracked by the Bu- 
reau of Labor Statistics are reporting 
unemployment rates below 4 percent 
All 12 districts reported trouble attract- 
ing and retaining qualified workers, ac- 
cording to the Federal Reserve’s May 
report on economic conditions. 

Sixty-eight percent of 1,050 employ- 
ers surveyed by Hewitt Associates, a 
consulting firm in Lincolnshire, Hi inois, 
offered flexible scheduling in 1996. up 
from 53 percent five years ago. And 
compressed workweeks are under con- 
sideration or development at 12 percent 

of companies without such programs, 
according to a poll of 800 companies by 
William M. Mercer Inc., a consulting 
firm based in New York. . 

Ralston-Purina Co., based in SL 
Louis, saw improvement in morale after 
it began a program Jan. 1 thai allows 
flexible scheduling for its Z500 
headquarters and sales employees. The 
plan encourages employees to feel com- 
fortable about going to managers with 
flexible work options. 

“We increasingly realize 'that em- 
ployees aren't signing up for a job for 
life,” said Ron Sheban, vice president at 
Ralston-Purina, ‘‘And conversely, we 
may not be able to promise them one, 
either. What we can offer is a number of 
options to make their work life more 

Shorter workweeks are inevitable for 
two reasons, says Jeremy Rifkin. pres- 
ident of the Foundation on Economic 
Trends in Washington, in his book, 
"The End of Work.” 

Labor-saving technology is cutting 
jobs and work hours, he says, and so- 
ciety is demanding more balance be- 
tween work and family life. 

To Rehire 1,000 Strikers 


DETROIT — A ILS. labor judge 
has issued a sweeping ruling in favor 
of more titan 1,000 former Detroit 
newspaper workers, finding that the 
Detroit News and the Detroit Free 
Press had engaged in unfair labor 
practices in forcing a 19-month strike, 
and ordering the two dailies to put the 
strikers back to work, even if that 
means laying off replacements. 

Tens of thousands of former Detroit 
newspaper workers and their support- 
ers marched in favor of the ruling 
Saturday, a day after an administra- 
tive law judge. Thomas Wilks, issued 
the order. But the newspapers will not 
be required to rehire any strikers while 
the ruling is under appeal* which 
could take months or years. Detroit 
Newspapers Inc., the operating 
agency for the two separately owned 
dailies, said it would file an appeal. 

Judge Wilks upheld a Compton 
from the Detroit regional office of the 
National Labor Relations Board that 
Detroit Newspapers Inc. had bar- 
gained in bad faith on economic mat- 
ters, failed to provide the six striking 
unions with information they needed 
to bargain effectively and had im- 
posed unilateral merit pay changes 
without bargaining with the unions. 

The companies had argued that the 
strike was over purely economic is- 
sues, which are not subject to unfair 

labor practice rulings. 

The strike starred July 13. 1995, 
when Z500 workers walked out In 
February, the unions made an uncon- 
ditional offer to return to work. The 
papers rehired 225 workers but refused 
to displace those hired during the strike, 
including several hundred former 
strikers who crossed picket lines. 

fMT. APt 


171 420 0348 


Job Advertisement 


1 .Head of Conference Department : 

Develop and implement a program of research- based conferences, seminars and informational workshops on issues of 
strategic significance to the UAE and the Gulf region. 

The selected candidate will have a doctorate in political science or relevant higher education qualifications; more than 5 years of 
appropriate experience in coordination of research activities, conferences and seminars on regional and international issues; full 
command of the Arabic and English languages is essential. 

2. Conference Coordinator : 

Must be able to organize conferences, symposia, workshops and lectures and have good public relation skills. 

The selected candidate will have a university degree, preferably a master’s with 3 years experience in the field; fluent in Arabic 
j and English with a good knowledge of computer software especially databases. 


3. Distribution Expert : 

Must be able to organize work involving distribution of the Center's publications in the local. Arabic and international 

The selected candidate will have a university degree, preferably a master's with 5 years experience in the field; fluent in Arabic 

and English; good public relation skills and good knowledge of computer software especially databases. 


i 4. Journal Editor 

To manage the development and publication of a Scientific Journal, with the ability to prepare research papers, and excellent 
editing skills. 

■ The selected candidate will have at least a master's degree in social sciences; 5 years of experience in the management of 
Academic or Scientific journals and excellent knowledge of Arabic and English languages. 

> 5. Publications Editor 

i The selected candidate will have a social sciences Master's degree or relevant higher education qualifications; appropriate 
experience in editing and reviewing literary work in any of the social sciences; excellent command of the English language; 
knowledge of appropriate computer software, preference will be given to persons with publishing houses experience 
specialising in scientific books and periodicals. 

The positions offer a competitive compensation package that includes a salary commensurate with qualifications 
and background. A detailed curriculum vita citing background, professional experience, education and 
publications should be forwarded within one month from the date of issue citing position applied for on 
envelope to: Head of Personnel Department 

P.O.Box 4567 Abu DhabL UAE 




The Futures Group International, a health management 
consulting firm specialising in reproductive health and pop- 
ulation issues in the developing world, requires experienced 
professionals for short and long term assignments in Africa. 
Europe and .Asia. 

Wc are looking for senior individuals with expertise in pop- 
ulation. reproductive health, medicine, primary healthcare. 
STDS. HIY/AiDS prevention and care, economics, sociolo- 
gy, health sector reform, gender issues, counselling and 
training, research and marketing. 

Previous experience of working in the public sector and 
with donor organisations is essential. 

In addition, suitable candidates will: 

• Hold a passport for anv of the EC. member states 

American Financial Service Company 

based in Paris searching for candidates for the position of 

Regional Operations Manager, MEA-210 kf+ 

The candidate wd be both sales and operators orientated, a self starter 

launching our products and related services. 

The successful candidate must be fluent in French and English, Arabic 
would be a plus. Travel 60% of the time, must hove a 4 year cottage 
degree or higher, age from 25 to 30. possess 2 to 5 years business 
experience. Including some international i ravel, preferably to Africa or the 
Midcfle East, possess strong administrative, and communication skUs. 
Be a citizen of the EEC. know Windows 95. Word, Excel. PowerPoint 
some knowledge of X25 A X28 telecommunications systems would be 

hatful, but not obligatory. 

Phase respond by (attar or tax to: 

WESTERN UNION FSf : 33 Avenue Wag ram, 

75017 Parts or Fax: 33 (0) 1 45 72 77 21 


* Have relevant post-graduate (or equivalent) qualifications 
reflecting an advanced knowledge of anv of the abuve 


• Have at least 5 years professional experience, preferably 
including some gained in the developing world. 

Respond in the first instance with C\ and a envering letter 
addre-ring each of the above points. Suitable candidate* 
only will be contacted within I month. 

Tbe Futures Group International. Roval Albert House. 
Sheet Street. Windsor. Berkshire SLA l BE. 


Columbia TriStar Films (France) 

Seeks an 

to work for the President. 

Must have ar least 2 years experience in a similar position. 

English mother tongue. 

Needs to be available to start in July (end of July at the latest). 

Please send a C V with photo & a handwrinea motivation letter to; 

Jackie Page - Columbia TriStar Films 
131 avenue de Wagram - 75017 Paris 

Find A Job Fast! 



Available /or a challenging position 


with more than 15 years of experience in glob- 
al sales and marketing of capital goods sold to 
various industries in Europe, Asia and North- 
America in addition to extensive experience 
starting up and managing sales offices and 
subsidiaries in Europe, Asia and North- 
America. Fluent in German, English and 
Dutch. Currently residing in Atlanta, USA but 
willing to relocate. 

Tel.: (001) 770 521-1725, FAX: (001) 770 346 9219. 

General Positions Available 

ASPECT International 
k a mrtMde etiuca&ona) organization 
with othces and active representatives 
sound ttegtate Sra our offaai faun- 
<sng n 19W. w orgnaftn has jwn 
laser than any other n the iekL We on 
offer you a liaoee pastor a one d or 
offices n me US. Austrate. Canada, or 
Europe. You wi be assignat a petition 
dai ml bad id a fane rote h manage- 
moi fie postal «A be Dated on eou- 
catfom. previous expenance end future 
anti ere We uoiid lie you o haw a 
masters degree or equivalent, ensfert 
language skflts art some international 
non expenence Sent shod cover teller 
and resune b 

350 Sawma Street, State 900, 
San Francisco, CA HIM USA 
E-Hal: irjimeaepacamidjoom 

seeks bUngual asssiart lor ns Parts 
aofeMn office, tan JUy Infcpmfert 
■Other onafert computer stalls Model 
Bov 336 WT. 92521 Neuffly C*. Frame 


seeti an Assisted Commercial Analyst 
lo assisl in preparation of line Ests. 
priong, order morfic&ons and 
other admnstratm tasks kr 
<s Customer Sente Department 

H you are organised. mefbOous. 
have sacra oorputer and rath stfls, 
an Miguel IFtanch. En0sh] 
ani able to motk inter pressure, 
please send tear of apptutor, 
photo and resume to 

Hunan Resources Department 
97 avenue de b Grande Aren 
75762 Parts Cades 19 
Far +33 (0)1 44 17 48 00 

General Positions Waited 

seats postal in Bmps. Espenence n 
business tides, etaorcr* delivery, 
mb page dnetopmn. Cal Bob m u& 
802/257-7505. E-maB- ppressGsorer.nel 



RBA Inri supplies senior per- 

Sn nw 


SALARY ENTRY: 394,693 - MAX: $154,834 Annually 

Metropolitan Dade County. Florida rs seeking a highly qualified individual to direct total 
Seaport operations at the Dante B. Fascell Port of Miami', the 9th busiest containerized cargo 
port in the United States and the cruise capital of the world. This position will report tc trie 
County Manager. Metropolitan Dade County's Chief Administrative Officer. 

Responsibilities of the Seaport Director include fiscal management of a S26.6 million 
operating budget and a S265 million multi-year capital improvement plan. Directs the 
activities of 200+ employees involved in diversified administrative, operational, port 
engineering, marketing, development, and security functions. Management objectives will 
include continued development of the infrastructure for cruise and cargo market expansion, 
enhancement of the port as a transhipment hub of Caribbean. Central and South America, 
overseeing the proposed Maritime Park expansion project, and development of new trade 

Lucrative executive benefits package plus car allowance v/ill be part of the total 
compensation package. 

Graduation from an accredited college or university with a Bachelor’s degree. Ten years of 
executive level experience in the fiscal and operational management of a major seaport 
facility is required. A Master's degree in Engineering or Finance is preferred. Must possess 
excellent oral and written communication skills. Applicants will be subject to an extensive 
background investigation. 

INITIAL DATE OF JUNE 20, 1 997 TO JULY 11,1 997. 

Applicants must submit two [2) copies of their resume indicating title of this position 

and twoJ2Lcfipj^s of pLQPlpigdMgationaUttainfiignt (fopto of officia l jra pscripts 
and/or diplomas conferring degrees). Applicants must include their social security 
number on each resume. Submittals must be sent via certified mail by July 11, 1997 to: 

Ms. Maria M. Case! [as 

Acting Director, Employee Relations Department 
Stephen P. Clark Center, Suite 2110 
111 N.W. 1st Street 
Miami, Florida 331 28-1 907 

Employment requires meeting medical & physical standards & residence In Dade 
County w/in 6 months employment. "EQUAL OPPORTUNITY EMPLOYER M/F. WE DO 
NOT DISCRIMINATE ON THE BASIS OF DISABILITY''. Benefits include Health & Dental 
insurance plans, 2 weeks vacation, 12 days sick leave annually, Tuition Refund. 
Retirement Plan, 13 paid Holidays, & much more. 

S ejects. Our derJ requires the 

Project Mgr 
Engineering Mgr 

- Middle East ■ 

To work on the conversion of a 
thermal power pLanr to com- 
bined cycle, vou mus have: 

• S :o IC years' in 
Power Plants, preferably in 
combined cycle; 

• A 5 yea; background In simi- 
lar functions; 

• A Recognized Engineering 

« Familiarity with the Middle 
Eastern culture and willing- 
ness to relocate during the 

RBA InremaiUiuJ 
49W w. Ste-Caihenttc St . =* 231 
Weamounf. Quebec. CjtuJj 

Td t514i-JS1-A45$ 


The* S noxcfQr&r£d*ta 

Secretarial Positions Available 

Seeks English motfBMiflgus sersa," 
Staten and witter French necessarii 
See d ettong 5 carpdsr stiS reginsd 
Send CV & dote More rth Jura tc 
Japanese Oetaofioii Id the OECD, 
Generel Adairs Section, 

11 Arenua Hods, 75008 Paris. 


my busnessfe 
in Chinese. E 



expertise FIubih 
F rench, Italian, 

Spanish Waked as ML Liaison deaing 
with Crtna/Eurape. Runfet/manager at 
viable bus trass tar to yis. For CV 
Ematjagohct tonemet or leave message 


a 20 yis experience, speaks Engfch / 
se. soaks postal Ada. Reply: Box 
315. IHT., 92521. Neiffiy Cdx France 


Seeks a command. 25 years esqxrterce 
of ’mega' yachts and Eiaopean ship- 
yards with impeccable references. 
Ttffin +33(0*4 83121337 

Just back Irani USA, seeks marketing 
commercial fob In Paris region. 
Fax+33(D]1 40 B4 39 48 

SALES-0 RENTED MBA International 
Marketing paduate. age 22. USA and 
Bribsh cman. raised n Europe, nuttn- 
gua), French & Engfch mother tongues. 

S references tan UK, Renee. USA, 
ertand. seeking satashnaitaing Job 
■rii growing company covering 
Biropen couttss or USA or Far East 
Home-base fertte. Lon handteap gder, 
member London gal Ob. Please cored 
Geoffrey Swartz, e-mat 106660 36870 
C0PUSERVE.COM or UK fa* 44 181 
776 9456 MtnGS 


on Page 1 3 





Semmdweis University of Medicine has been training students 
for over 200 years and its alumni include a Nobel laureate and 
world renowned researchers and clinicians. Semmelweis offers 
degree courses in general medicine IM.D.1. dentistiv iDMD.). 
pharmacy IMA:) and Ph.D. programs in English and German. 

Programs for foreign students run for five to six vears with an 
average annual tuition fee less than USD 7.000. ' 

Accredited by the World Health Organization, our diploma is 
accepted by major western countries. 

Graduates of Semmehveis can apply for hospital residencies in 
Germany, the U.K., Greece, Israel, Norwav, e.Lc. and sit for the 

ECFMG certification and the PLAB examination in the U.S. and 
the U.K. 




Y*. "hT 

a CERAM ESC NtCE cf^- ' 

School of Management 

with : ■ 

• The Lhtiivrsfty ofPbomtx - Arizona - USA 

• Tbe Shanghai Institute of Frjrmgn Trade ■ CHINA 

Executive Part Time / Full Time / On Line 
MBA Programs, 

at Sophia Andpoiis on the French Riviera. 

English Programs last year drew 760 students tiom 31 countries 
with strong representation from Greece, Israel, Cyprus, the U.5. 
and Scandinavia. 



MBA Admissions Office : 

: (+ 33) 4 93 95 45 20 • fax : (+ 33) 493 95 45 29 

e-mail :* internet : htlpy/www.ceramir/mba 

German courses drew a total of 300 students mainlv from 

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with 200 years of tradition* 

For more information please contact: 

fcmmelwres University of Medicine, Foreign Students' Secretariat 
OHoi stir. 26, Budapest 1085, Hungary 
i Phone/Faxt 06-1 ) 26MM52 or (36-1) 1 170-932 a 


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F-08400 CANNES 
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f i in Bergerac £ Biamtz. 

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ads work 


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Tn advertise contact 
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MONDAY, JUNE 23, 1997 

PAGE 11 

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As Air Show Ends , Paris Leaves Privatization Route Uncharted 

By Barry James 

■ Inwmiiionul Hetvti Tribute 

420 0348 

<■* an 


> ^ 

* ti f f : 

i .. , 

■■: A/p 


PARIS — In a speech that had been 
impatiently awaited at the Paris air 
show, which ended Sunday, Prime Min- 
ister Lionel Jospin called for closer 
aerospace cooperation in Europe. 

Bat once again, Mr. Jospin offered no 
clue whether his government would 
agree to privatize French aircraft and 
military industries. 

The sale of the state-owned aircraft 
maker Aerospatiale and its merger with 
privately owned Dassault Aviation has 
been regarded as a prerequisite for re- 
structuring the European Airbus con- 

Airbus, which is owned by aircraft 
industries of France, Germany, Britain 

New Wealth 


jj Is Uneven in 

Rich-Poor Gap Wider 
h the Free-Market Era 

Mid Spain, is trying to turn itself into a 
single corporate entity. 

But the nationalized status of 
Aerospatiale and its reluctance to hand 
over its assets to the proposed cor- 
poration are stumbling blocks. 

Our partners will not accept us un- 
less we have the same status as they do, 
that is to say privaie," said Serge 
Dassault, president of Dassault Avi- 

Mr. Jospin beads a left-wing coali- 
tion government that opposes privat- 

This has cast doubt on a sale of 
Aerospatiale as well as of the military 
electronics company Thomson-CSF. 

In his speech Saturday at the Le 
Bourget air show, Mr. Jospin said that 
restructuring an Industry employing 

100,000 people “cannot be done with- 
out the state.” 

But he did not directly address cither 
the Aerospatiale or the 'Thomson issue. 

Mr. Jospin said restructuring must be 
earned out from the first stages within a 
European framework. “No future pro- 
gram, whether it be civil or military,” 
he said, "can from now escape the 
imperative of cooperation.” 

However, he added that his govern- 
ment needed time to study the issues 
before making decisions. "1 know the 
delays,” Mr. Jospin said. “I am weigh- 
ing the stakes. I know the deadlines.” 

Over 20 years, Airbus has designed 
and produced a range of airliners able to 
challenge Boeing Co.’s dominance of 
civil aviation. 

But to achieve its aim of winning half 

the sales, it needs to break Boeing's 
stranglehold on the jumbo airliner mar- 
ket by going ahead with a projected 
550-seat jet. 

Restrictions on the amount of gov- 
ernment money it can receive to" get 
started means that it must seek outside 
capital as well as international partners 
for die $9 billion project. 

Vance Coffman, who will become 
chief executive of Lockheed Martin 
Corp. in August, said that he, for one. 
would not become a risk- sharing part- 
ner with Airbus as long as it was linked 
to the state. 

Like the stormy weather that hovered 
overhead much of the week, the mood at 
the air show was unpredictable. The 
aerospace industry is out of recession 
but not yet out of the clouds as it faces 

more consolidation and downsizing. 

* ‘There are so many suppliers,” said 
Graham Thornton, strategy director for 
Smiths Industries, “and so few pro- 

Boeing and Airbus reported receiv- 
ing only a third as many orders during 
the show as they did two years ago. This 
supported indications that orders have 
slowed after a euphoric year in which 
airlines ordered more than 1,000 air- 
craft with ] 00-seat capacity or more. 

Airbus came out ahead with an an- 
nouncement that Northwest Airlines 
planned to buy 50 of its smallest A3 1 9 
jets — worth an estimated 52 billion — 
and would take an option for a further 
100 . 

The European consortium sold 12 
A3 20 jets to Finnair, with options for 

another 1 2, and broke the dominance of 
McDonnell Douglas in that market. 

It scored a breakthrough in Latin 
America by selling five of its wide- 
body A3 30 airliners to the new Brazili- 
an airline TAM, w-ith options for five. 

Boeing, meanwhile announced sales 
of 21 aircraft, including the continu- 
ation of options for five 777s by British 
Airways, a longtime customer. 

Observers said Boeing was unchar- 
acteristically low-key at the air show . 
Its new 737-700 twin-engine jet stood 

among the parked aircraft all week 
while the rival Airbus A3 1* 3 flew in 
displays every day. 

This is a politically delicate tune for 
Boeing, which faces anti-trust hearings 
in the United States and Europe over its 
plan to absorb McDonnell Douglas. 

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By Anthony Faiola 

‘ Washington Post Service 

BUENOS AIRES — In the chic Re- 
covers district here, Cartier and Tiffany 
are the latest signs of Argentina's new 
era of private enterprise. But across 
town are other signs — like the one in 
the hand of a hunger striker, Cristian 
Flores, 24, demanding that President 
Carlos Menem curb such changes. 

"The rich are getting richer, and 
we’ve become the forgotten people 
again,” said Mr. Flores, a teacher from 
the country’s poor rural provinces who 
is helping lead a popular hunger strike at 
the steps of Congress. 

The protesters, on the heels of two 
months of the most violent anti-gov- 
ernment demonstrations of the decade 
here, have lured soccer stars, celebrities 
and schoolchildren to join in exposing 
the gaps in Argentina's new prosperity. 
The protests underscore increasing ten- 
sion below the surface of South Amer- 
ica’s move toward free -market econ- 
omies during the 1990s. 

Workers here and in other South 
American countries have become dis- 
illusioned with government promises 
that rewards from the new economic 
policies would trickle down to the lower 
classes. They are making their ffus : 
nations known in violent outbursts. 

For the United States, the success of 
these policies is important — not only 
because U.S. firms have millions of 
dollars invested but because of the per- 
ceived link of these plans to democracy 
and stability south of the border. 

Mr. Menem and his then-economic 
y.-rt- minister, Domingo Cavallo, did an 
THE IN Ten MAW* about-face, on Argentina’s long-stand- 

continues “S policy , 0 ? state ownership and eco- 

Domic isolationism beginning m April 
art Pa9 e ™ 1991 by putting up for sale virtually 

Zenib Diix/RrtiliTH 

Some. of a groupof38 teachers on a hunger strike in front of the Congress in Buenos Aires marching toward- the Casa Rosada government house. 

every government-run company and en- ' 
couraging foreign investors. To curb 
wild inflation, they installed a convert- 
ibility plan that fixed the Argentine peso 
to the U.S. dollar. Together, the mea- 
sures lured investors from all comers of 
the world, who ignited the engines of the 
Argentine economy, sparking the 
strongest economic growth the nation 
had witnessed in decades. 

Right now, that performance is show- 
ing signs of stress. In .contrast to slickly 
dressed businessmen who tote cellular 
phones in both hands as they cruise the 
streets of central Buenos Aires, mobs of 
unemployed workers who once labored 
for state-run industries continue to block 
roads in Jujuy, a poor, rural state on die 
Bolivian frontier. In the western state of 

Neu quen, which bore the brunt of a lay- 
off of 45,000 state oil workers, a woman 
was killed in a clash with police. 

Mr. Menem said in a recent discus- 
sion with foreign correspondents that 
the country would tty to jump-start large 
infrastructure programs to create more 
jobs and increase social assistance pro- 
grams, but added that he would not veer 
from the current economic path. 

“Nor will we accept the criminal 
methods thar are being used" by the 
protesters, he added. “We will take the 
necessary steps to make sure that any 
demonstrations here will be done in a 
lawful maimer.” 

Mr. Menem, whose Perooist party 
facek difficult congressional elections in 
October, hardly is alone in dealing with 

frustrated workers in South America. 

Critics say the millions of dollars 
generated in South American nations 
from privatization — from telephone 
companies to oil industries and perhaps 
eventually in Argentina the postal ser- 
vice — is still overwhelmingly con- 
centrated in the hands of foreigners and 
the old, ruling elites. 

Meanwhile, many argue that the tran- 
sition to free markets in some pans of 
the region has happened too quickly: 
Private industry simply cannot grow 
quickly enough to absorb hundreds of 
thousands of workers laid off as private 
investors trim the fat from companies 
that were once state-owned. 

For instance, in Argentina, accus- 
tomed to the highest standard of living 

in South America, unemployment has 
soared to almost 18 percent, np from 7 
percent before the economic shift six 
years ago. Much of that increase came 
from privatization and government 

Today, the federal government em- 
ploys 300,000 people, compared with 1 
million in 1 991. The honest joke on the 
streets these days refers to a recent visit 
by the magician David Copperfield — 

the ponenos, as residents of the capital 
and port are called, say he begged Pres- 
ident Menem to teach him how to make 
an entire middle class disappear. 

“The huge profits from privatization 
are not reaching the average person,” 

See ARGENTINA, Page 13 

Wham! Pow! Icahn Ousts Perelman at Marvel Entertainment 

By Floyd Norris 

New York Times Service 


V. r 


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NEW YORK — Bondholders led by 
Carl Icahn have taken control of Marvel 
Entertainment Inc., seven months after 
they erupted in anger over a proposal 
that would have frozen them out while 
leaving control with Ronald Perelman, 
the financier who had overseen the com- 
ic book and trading card company while 
it first prospered and then fell into bank- 

On Friday the bondholders took con- 
trol of Mr. Perelman ’’s stock, which had 
secured the bonds, and promptly re- 
placed the board Mr. Perelman had 
chosen. Mr. Icahn became the new 

chairman. A former Marvel executive, 
Joseph Calamari, will head a transition 
team to run the company. The current 
chief executive, Scott Sassa, is expected 
to resign. Mr. Sassa joined Marvel only 
last fall. 

“The bondholders have now been 
vindicated,” Mr. Icahn said. “This is a 
great day for Marvel Entertainment and 
those of us who want'to help this once 
great company emerge from Chapter 1 1 
and make the most of its superb char- 

The move came after a bankruptcy 
judge in Delaware refused to block the 
action. Efforts by Marvel’s board to get 
another judge to intervene were un- 

The victory for Mr. Icahn, who 
bought a large stake in the bonds after 
they plunged in value in November fol- 
lowing disclosure of a reorganization 
plan backed by Mr. Perelman. effec- 
tively severs Mr. Perelman ’s ties to the 
company. But while it embarrasses the 
financier who controls Revlon, among 
other companies, it does not mark a 
debacle for him. He made more than $50 
million on his Marvel investment, in 
large parr by selling the bonds. 

Whether 'or not Mr. Icahn can keep 
control of the company will be decided, 
in bankruptcy court, where his group is 
pushing a reorganization plan that is 
opposed by bank lenders, led by Chase 
Manhattan The banks argued in court 

that Marvel was insolvent, but the bank- 
ruptcy judge refused to see that as a 
reason to keep the bondholders from 
stepping in. 

There was no immediate comment 
from the current management of Mar- 
vel. A spokesman for Mr. Perelman 
expressed disappointment over the 
court decision. 

Marvel's assets include a large stake 
in Toy Biz, a company that owns the 
right to make toys based on such Marvel 
characters as the Fantastic Four, Cap- 
tain America and Spider Man.. 

Marvel has had eight of the 1 1 seats 
on the Toy Biz board, and Mr. Icahn said 
that he and seven colleagues would re- 
place the Pere iman-chosen directors. 

The plan is to name Mr. Icahn chairman 
of that company as soon as its board 
meets again. 

Toy Biz executives declined to com- 
ment, but they have argued in the past 
that a change in control at Marvel would 
invalidate that company's right to pick 
eight directors. 

Mr. Icahn, a former chairman of 
Trans World Airlines, is known for act- 
ing promptly. He did that with the Mar- 
vel bonds at a time when most people 
thought Mr. Perelman would prevail 
He persuaded the bankruptcy court in 
Delaware that it was the bondholders 
who held-the real stake in the Perelman- 
con trolled shares, and therefore should 
be able to control the board. 


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The Antidotes to Electronic Game Mayhem 

Bloomberg Sews 

ATLANTA — Douglas Adams's video 
game "Starship Titanic” features a 3-D space- 
ship, puzzles and smart-alecky robots who tie. 

The author of “The Hitchhiker’s Guide to 
the Galaxy” says he wasn't interested in cre- 
ating the son of fare that dominates the scene at 
Atlanta’s “E3”. Electronic Entertainment 
Expo. That more typical fare includes, games 
such as “Space Bunnies Must Die," which 
stars a track-stop waitress who nails mutant 
rabbits during on -hours. 

“You wander around E3 and you see an 
incredible amount of imagination has gone into 
different ways of dismembering people,” Mr. 

Adams said. “I don’t tike that very much. I’m 
not a guy for violence.’ ' 

Mr. Adams is a guy who wants © be a 
pioneer. He is one of the increasing numbers of 
developers bawlring electronic games beyond 
the traditional marker that the chairman of Intel 
Carp.. Andy Grove, defines unhappily as ”8- to 
17-year-old boys.” 

“The potential market is bigger than that 

group ancTits fascination with action games,” 

Mr. Grove said at the show. “There's a lot more 

“wnomif.: lJZ3a IJITO i-rur 

Jflwa* m flank eAmMatenU; ' 

involved here. 

With hits like “Tomb Raider," shoot- ‘em- 
up and gore still rale the $5.3 billion Industry. 

which includes video games,- computer games 
and other entertainment software. E3 has acres 
of the violence showcased in fake jungles, 
makeshift tunnels and pop-up zoos. 

Ripcord’s “Postal,’ * as in “going postal," a 
reference to homicides at post offices, served as 
an icon for this year's show. 

Onlookers crowded the “Postal” booth, 
waiting to play a three-minute demo while 



watching the game’s hero shoot and lob gren- 
ades on the big screen. 

As each demo drew to a close, a grinning 
announcer reminded participants, in a tone of 
voice normally reserved for American break- 
fast cereal commercials, “Remember, you can 
always end the game by taking out your gun, 
sticking it in your mouth and blowing your 
brains out!" 

. Whew. 

The antidote could be found by talking with 
Mr. Adams or at Mattel Inc.'s “Barbie" in- 
teractive software booth. 

Barbie software was last year's break- 
through hit, jolting entertainment-software de- 
velopers into thinking about alternatives to 
mayhem and pillaging. 

i-.T, * ^ 

The software lets users talk with a Barbie that 
talks back, search for buried treasure with the 
help of “friendly sea animals” and “style, 
color and even grow Barbie’s amazingly life- 
like hair." 

U.S. girls are a coveted “lost” audience that 
could constitute a 560 million market annually, 
said Nancy Deyo, chief executive of Purple 
Moon, a new software developer for 8- to 12- 
year-old girls. 

Purple Moon products like “Rockett’s New 
School, ’ ’ about a young girl’s first day of junior 
high school, stem from research and interviews 
with thousands of girls who found traditional 
action games simplistic and dulL 

“We value little girls,” Ms. Deyo said. 
“We're nyihg to give them something mean- 
ingful that they’re interestedin.” 

That doesn’t mean girls are locked out of the 
action genre. Denise Brown, who produced one 
of the three “Lost World” video games for 
DreamWorks SKG, said girls are just as drawn 
as boys to the adventure game, which features 
two female characters. 

“Girls aren't stujrid.” Ms. Brown said. 
“They obviously enjoy the strategy, and they 
enjoy problem-solving elements.” 

Internet address: 

Hong Kong 
Braces for 

A Sell-Off 

New Rules by Beijing 
Worry Stock Market 

Guq'vJrJ Ota Si.r F r > a . 'u 

HONG KONG — Investors were 
bracing for a sell-off on the Hong Kong 
Stock Exchange on Monday after China 
announced it would tighten control of 
overseas listings of mainland firms. 

The State Council announcement late 
Friday came only hours after Hong 
Kong's Hang Seng index posted a re- 
cord close at 15,154.36, up 4.47 percent. 
Analysts said the move was aimed 
largely at “red chips,” Chinese-con- 
trolled companies listed in Hong Kong. 

Hong Kong's red chips have soared 
over the past year, in pan because in- 
vestors bet billions of dollars that the 
listed companies would be furure be- 
neficiaries of cheap asset injections 
from their mainland parents. 

Chin ese authorities gave few specif- 
ics on due proposed clampdown except 
to warn of “ tough penalties' ’ for compa - 
nies found to be violating regulations. 

If enforced, any rules curbing the 
transfer of underpriced assets to for- 
eign -listed companies could rattle Hong 
Kong investors' confidence in the main- 
land-controlled red chips. 

“It was going to happen sooner or 
later,’ ’ said Geoff Galbraith, institution- 
al sales trader at NAVA SC Securities. 
“The aim is to control their assets. " 

The Xinhua news agency said 
Chinese-controlled companies planning 
to sell shares abroad would be checked 
by Chinese securities organizations, 
which would then report to China's 
main stocks watchdog, the China Se- 
curities Regulatory Commission. 

Chinese companies will only be eli- 
gible to issue stocks abroad if they have 
had their assets in China for more than 
three years. 

Analysts said thar. with only 10 days 
to go before Hong Kong's return to 
China, they were surprised by Beijing's 
timing. But some said the new rules 
would help the market in the long run. 

“There is a frenzy over buying red 
chips. It is just like a bubble — if there is 
no regulation the bubble will burst.” said 
Patrick Chia, research director at China 
Everbright Research. “With stricter reg- 
ulations hopefully share prices can cor- 
rect ro a reasonable leveL” 

(AFP, Bloomberg, Reuters ) 

China Firm 
To Lay Off 


Agent v Fruuce-Presse 

BEIJING — China Petrochem- 
ical Corp. will lay off about one- 
thiiti of its 650,000 employees un- 
der a p r o g ram to upgrade and 
stre amlin e fts businesses, the China 

Daily Business Weekly reported 

"We are overstaffed compared 
with petrochemical firms in de- 
veloped countries,” Shcng Huaren, 
the company's president, told the 

He did not provide a timetable 
for the layoffs, but the report said 
jobs would “be created by new 
businesses from other industries to 
employ the laid-off people." 

He said the company, known as 
Sinopec, also would “hone its 
competitive edge to keep its leading 
position in the domestic market by 
speeding up technical progress.” 

The modernization thrive would 
be carried out as petrochemical gi- 
ants tapped into the Chinese market, 
with competition in the lubrication 
oil market from such multinationals 
as British Petroleum PLC and Roy- 
al Dutch/Shell Group, the report 
said. To meet the competition. Mr 
Sheng said Sinopec “would not es- 
tablish new refinery enterprises in 
the next three years." 


•PAGE 12 



Russia Wins Place in Paris Club 

and New Chance o 






I. “ 

(* ^ ' 


CivfftJn/ tor Gw Sutf fi*w DTOufc bn 

DENVER — Russia has achieved a 
long-sought goal: Admission to the Par- 
is Club, a group of wealthy countries 
■that negotiate debt terms with devel- 
oping nations. 

i Russia’s inclusion will give it more 
leverage to seek repayment of the big 
loans it has extended to Cuba, Iraq, Iran 
and other nations. 

“1 cannot name the precise figure of 
■the debt we are going to collect within 
the Paris Clnb framework, but I can 
-definitely say the amount wilTbe much 
grater than what we would have col- 
lected without joining die club,” said 
Anatoli Chubais, a deputy prime min- 
ister and minister of finance. 

The progress achieved here at the 
.summit meeting of the Group of Seven 
■industrialized countries was hailed by 
President Bill Clinton as a “happy de- 

Mr. Clinton said this meant Russia 
would “now be a partner with the other 
members” in trying to promote global 
economic growth by relieving the debt 
of developing nations that , adopt re- 

“What you see here is a sweeping 
integration of Russia into the major de- 
cision-making networks of the world in 

former Soviet Union for military hard- 
ware and materiel. 

“This agreement represents the fi- 
nancial end of the Cold War,” Mr. 
Summers said. 

He added that the exact nature of the 
debt forgiveness would be worked out 
by the Paris Club over the coming 
months, but under the terms of the 

a way that is very positive for die rest of- agreement Russia also has agreed not to 

us.” the president said. 

Russia is owed about $140 billion by 
40 developing countries and, in order to 
join the Paris Club, Moscow agreed to 
reduce the debt owed by individual 
countries by between 25 percent and 75 
percent, Mr. Chubais said. 

Lawrence Summers, deputy U.S. 
Treasury secretary, said the amount of 
debt write-off would depend on the in- 
come level in the debtor country and the 
makeup of the debt stock, including 
what percentage of it was loaned by the 

ligations so Russia by more than 90 

Mr. Chubais rebuffed bis critics at 
home by insisting that the reduction of 
the debt owed to Russia would not harm 
its interests. 

“We arc not writing off these debts/* 
Mr. Chubais said. “We are simply es- 
tablishing discounts. This is inevitable 
as many of these debts trade at 15 per- 
cent. 10 percent and even 4 percent of 

their nominal value on the fmftfiCfeT Mr. Oh^ »Sao said debt ren«ysBft| 
markets. But we'll be getting seal witten the ParaOab framework wouH 
moaty which willeM MeortS^ ^S ' MtM* *#•«»' 
arrears to our teachers, doctors andcOai tWipsKWen oe 

attempt to collect debts owed it by the cent, 10 percent and even 4 percent of 
so-called “pariah” nations — Libya 
and Iraq, for example — that have sub- 
stantial debts to Russia. 

A fact sheet released by the White > ~B IT 

House said the adjustment would be ■ m Q 

implemented after negotiations be- %JF am/ ■ • * 

tween Russia and the individual debr- 
ois, “but it is now likely that for the 
heavily indebted poorest countries, par- 

ticularly in Africa, these adjustments NEW YORK — Optimism that die 
combined with Paris Club treatment U.S. economy is slowing enough to 
will lead to reduction in debtor ob- restrain inflation and keen the Federal 

miners. v _ 

The Russian official said^be fi gHc es- 
of the discounts granted to every*. 
dividual country-debtor would be re- 
vealed as soon the final agreement be- 
tween Russia and the Pans Club -had 
been signed. 

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Outlook Is Rosy for Bond Prices 

Most Active International Bends 

The 250 most activelnternational bonds traded 
through the Euroctear system for the week end- 
ing June 20. Prices supplied by Telekurs. 


Maturity Price Yfckt 

Austrian Schilling 

191 Austria 

54* 07/1507 99.0500 5.6600 

Belgian Franc 

T48 Belgium 7 

0429/99 1 06.0000 6.6000 

British Pound 

146 World Bank, 
-159 World Bank 
190 Abbey Nan TS 
240 British Land 

zero 07/1700 79.B750 73700 
6.10 03/17/00 97.7500 63400 
74* 12/3002 100.1250 7-6200 
fit* 11/1707 1013000 6.4000 

Canadian Dollar 

161 Canada 4 \ 

224 Canada 7ft \ 

Danish Krone 

1 Denmark B 

12 Denmark 7 

26 Denmark 8 

29 Denmark 9 

' 36 Denmark 8 

41 Denmark 7 

43 Denmoik 9 

1 52 Denmark 7 

56 Denmark 6 

68 Denmark 6 

' 71 Nykredl!3Cs 6 

76 Denmark 6 

100 Denmark 7 

107 Real Kredit 6 

‘llZNykredlt 7 

116 Denmark 4 

234 Denmark 7 

248 Nykredlt Bank 7 

Deutsche Mark 

2 Federal Tsy 3ft 

3 Germany 6 

5 Germany 6 

6 Germany 6 

7 Bundesobtigatlar 4ft 

8 Germany 5 

9 Germany 6ft 

10 Germany 67* 

13 Germany 416 

14 Germany 6ft 

15 Germany 9 

16 Treutiarid 67 b i 

. 18 Germany 8 i 

20 Germany 71ft J 

21 Treuhand 73* 

-22 Germany 5 

23 Germany 6ft . i 

24 Tteuhand 7ft 

28 Germany 5ft i 

30 Germany 6 

31 Germany Btt 

32 Germany Bft 

*35 Germany 816 

37 Treimand 63* 

- 42 Treuhand 5 

44 Treuhand 61* 

45 Germany 3ft 

46 Germany 6ft 

47 Germany 5ft 

48 Treuhand 7ft i 

50 Treuhand 51* 

51 Germany S3* 

54 Germany 61* 1 

55 Germany 8?* 

57 Germany 6 i 

■ 58 Germany 6 ' 

60 Germany 59b 

61 Germany 81* 

62 Treuhand 61ft 

64 Treuhand 63* i 

66 Germany 81ft 1 

67 Germany 9 ‘ 

- 70 Germany 71ft 

72 Germany 61* i 

73 Germany 6ft 

75 Germany 61* 

77 Germany 5ft < 

82 Treuhand 6ft 

83 Treuhand 6 

84 Germany 7 

85 Germany 6ift 

03/15/99 99-4792 4.0200 
06/0107 1073254 6.7200 

0^15/06 11230 7.1300 

11/7507 1043300 63800 
17/1501 112.0600 7.1400 
11/15/98 1063400 8-4200 
05/1503 1123400 7.0900 
12/1504 1065500 63700 
11/1500 113.6300 7.9200 
11/10/24 98.7000 7.0900 
12/10/99 104.0700 5.7700 
11/1502 103.9500 5J700 
1001/26 903500 6.6500 
02/15/99 103.9500 5.7700 
08/15/97 100.3700 6.9700 
1001/26 90J500 63100 
1001/29 95.7500 73100 
02/1500 99.6000 4.0200 
02/15/98 1024)300 63600 
1001/26 97.7000 7.1600 

0VI9/99 983916 3.8000 
010407 102.7600 5.8400 
070407 102.1200 53800 
01/2102 113.7700 7.0300 
02/2202 99.8617 43100 
08/2007 1013940 43800 
04/2606 104.3933 5.9900 
O5/T205 1083184 6.3400 
11/2001 101.1100 4.7000 
1 VI 405 106.2250 6.1200 
10/2W0 1143200 7.0400 

Rr* Name 

86 Germany 

87 Germany 

89 Treuhand 

90 Treuhand 

92 Treuhand 

93 Germany 

94 Germany 

95 Germany 
99 Germany 

105 Germany 

106 Germany 
113 Germany 
120 Romania 
127 Germany 

147 Tokyo Elec Pwr 
154 Treuhand 
158 Treuhand 

165 Treuhand 

166 Credit Local 
168 Germany 
173 Germany 
179 Germany 
186 Germany 
189 Germany 

200 Germany 

201 Spain 
206 Germany 
211 Slovenia 

223 Mitsubishi Fin 
239 Cap Credit Card 
241 KFW Inti Rn 

243 Germany FRN 

244 Germany 
246 Russia 

Qhi Molarity Price Yield 

7ft 12/2002 110.5900 63400 
31ft 12/18/78 100.1600 14900 
5k* 09/24/98 102.7900 5.4700 
61* 07/29/99 1053200 5.9300 
7U 700102 1134336 6.8400 
61* 1202/98 1043300 63600 

6 0620/16 965800 65100 
5% 05/28/99 1040500 5-5300 

8 09/22/97101.1800 7.9100 

7 12/22/97 101.9503 65700 
6ft 05/2009 104.7995 55400 

7 11/25/99 1075200 65100 
5ft 02/22/99 103.1000 55100 
71* 06/1702101.7500 75200 
71* 1 Q/2102 111.1700 65200 
4ft 06/1602 995500 4.7700 

5 12/17/98 1023B00 45900 
6 Vi 06/25/98 96.7899 65300 
6 Vi 03/26/98 102.1630 65000 
51ft 10/1800 1025927 55600 

6 02/20/98 1015200 55900 
67* 02/24/99 1055600 65200 
51* 10/20/96 102.4700 5.1200 
71* 02/21/00 109.7100 7.0600 
716 1V2Q/97 1015200 7.1600 
64* 08/14/98 1035100 6.1600 

7 010500 1075000 65200 
84 05/2200 112-9900 7.7400 
51* 06/1604 1005000 5.7200 

3527 05/2102 99.7759 35300 
zero 09/16/97 995285 11200 
54* 08/1501 1035373 55500 
41* 050702 100.1396 4.7400 
3.05 040600 995800 10600 
8ft 07/21/97 1D0 5900 85200 

9 03/2504 102.1500 85100 


Cpfi Maturity Price Yield 

South African Rand 

53 EBRD 

zero 06/17/27 3X009113900 

Spanish Peseta 

180 Spain 
194 Spain 
207 Spain 

6ft 04/1500 104-3330 65700 
755 03/3107 1075200 65700 
7.90 02/2802 1095110 7.1900 

Swedish Krona 

NEW YORK — Optimism that the 
U.S. economy is slowing enough to 
restrain inflan and keep the Federal 
Reserve Board from raising interest 
rates in July should keep Treasury bond 
prices on the upswing this week. 

“It's highly unlikely the Fed will 
tighten,” given recent reports showing 
little inflation, said Barbara Kenworthy, 
a fund manager at Prudential Mutual 
Fund Investment Management in Ne- 
wark. New Jersey. 

The market “will probably continue 
to be on a roll, and die yield curve will 
flatten,” said Ward McCarthy, a man- 
aging director of Stone- and McCarthy, 
Inc. in Princeton, New Jersey. 

The yield on the benchmark 30-year 

issue finished last week at 6.65 percent 
down from 6.73 Dement the previous 
week, as prices rallied. 

The market has been underpinned by 
government reports showing a slow- 
down in consumer demand and tame 


inflation. On Friday, a semiannual sur- 
vey of economists from industry, gov- 
ernment finance and academia by the 
Federal Reserve Bank of Philadelphia 
predicted that growth would slow in (he 
second half of the year and inflation 
would remain quiescent. 

A decline in home building and a 
drop in the value of stocks are expected 
to help to dampen consumer spending 

and slow the economy, the survey 

“It’s a terrific environment for 
bonds.” said Bill Gamba, head of gov- 
ernment trading ax Cowea Sc Co. “We 
have low inflation and an economy that 
is moderating.” 

One element that might temporal)- 
stall bond-price gains this week is the 
Treasury’s sale of two- and five-year 
notes, the Treasury will sell SIS J bil- 
lion of two-year notes Tuesday, and 
$11.5 billion of five-year paper 

“On Monday we might; see a small 
concession ahead of the auctions,” said 
Marie Sauvigne, a senior trader at a 
Chase Securities in New York. 

(Market News, Bloomberg) 

69ft 06/1103 1095000 65900 

8 07/2202 1135605 7.0400 

71ft 410305 112.0050 65800 
73* 120202 111.7100 6.6000 

5 05/2101 1025300 45700 
61* . 0104/24 965000 64600 
7ft 090904 1127650 6-6500 
5ft OV220O 104.9500 54800 

6 010506 1025050 55400 
8ft 080001 1165825 75400 
B’ft 02/2001 1145200 7.4500 
81* 09/2001 114-3933 75100 
61* 0701/99 1035185 6.1800 

5 01/1409 1025500 4.8900 
63* 05/1304 1063677 63500 
3ft 09/18/98 1005300 34900 
6lft 07/1503 1074300 6.0500 
57* 05/1500 1055300 53800 
7ft 01/2903 1105300 64500 
51* 04/29/99 1005995 5.7200 
84* 05/2101 1143000 73300 
64* 09/15/99 1066500 63300 
8ft 120000 1143900 7.7200 

6 02/1606 1023100 5.B400 

6 09/15/03 1055800 5.7000 
5ft 11/2100 103.0800 4.9700 
81* 07/2800 11340 7.7200 

61ft 04/2303 1074800 6.0500 


Dutch Guilder 

25 Netherlands 6> 

59 Netherlands £ 

80 Netherlands S 

95 Netherlands 81 

98 Netherlands T 

1 14 Netherlands 5; 

125 Netherlands 7 

129 Netherlands i 

T31 Netherlands 7 1 

141 Netherlands 1 

149 Netherlands 7! 

156 Netherlands 8= 

157 Netherlands T 

163 Netherlands 7 

164 Finland 51 

182 Netherlands 5 1 

183 Netherlands £ 

199 Netherlands 61 

209 Netherlands 7i 

21 2 Netherlands T- 

232 Netherlands 8< 

236 Netherlands s 

07/15/98 102.8600 6.0800 
02/15/07 100.9000 5.7000 
01/15/01 115.2000 7.8100 
03/15/01 114.0000 7.4600 
01/15123 1110500 65900 
01/15/04 103.1500 55700 
06/15/05 109.9500 63700 
01/15/06 103.1500 5.8200 
10/01/04 111.7000 6.4900 
0V1 5/99 1055600 64300 
06/15/99 107.2000 7.0000 
09/15/01 116.1500 75300 
04/15/10 1145500 65500 
03/01/05 1144500 6.7600 
06/1 V07 100.8000 55300 
09/15/02 1045500 55200 
11/15/05 1085000 63400 
04/15/03 107.6000 6.0400 
11/15/99 10BL2500 6.9300 
01/15/00 1093000 7.1000 
09/15/07119.6500 6.9000 
07/01/00 11344 7.9100 

78 Sweden 11 

119Sweden 1036 10 H 

128 Sweden 516 

171 Sweden 10W 

175 Sweden 9 

210 Sweden 6 

233 Sweden 6^i 

U-S. Dollar 

4 Brazil Cap S.L 416 
1 1 Argentina pgr L 5fe 
17 Argentina FRN 61* 
19 Brazil 109) 

27 Brazil par 23 5U 

33 Argentina It V 

34 Venezuela FRN 6% 

38 Venezuela par A 6% 

39 Mexico life 

40 Brazil L FRN 6ft 
49 Brazil S3J FRN -6ft 
63 Brazil FRN 6ft 
65 Brazil S.L FRN 6*Vv 
69 Mexico par A 614 
74 Bulgaria FRN 6ft 

79 /Mexico par B 6M 
81 Ecuador FRN 3W 
88 Argentina FRN Oft 
91 Ecuador par 3ft 
97 Tokyo Elec Pwr 7ft 

101 Mexico FRN 7ft 

102 Russia 9tt 

103 Rhein Hypottok 6ft 

104 Bulgaria FRN 6ft 

108 Lloyds Bonk 6 
111 Ecuador FRN 6ft 
118 Bar Com Ext. 7ft 
124 Brazil QiondS-L 4ft 
126ADB 6ft 

130 Mexico A FRN 646 

132 Nestle Holdings 3 

133 Mexico lift 

1 34 Venezuela par B 6ft 

136 Ford Motor 730 

137 Poland par 3 

138 Shanghai Invest 

139 Bulgaria 2ft 

140 Brazil S.L FRN 6<ft 

142LK OeffenTBk 6ft 

11 01/71/99 1 093440 1 05700 
10ft oyOSZM 113.0240 9.0700 
516 04/12/02 98.4660 55900 
1014 04*0403 120.0220 B54Q0 

04/20/09 1173650 74700 
02/09/05 97.1390 6.1800 
10/25/06" 98.7320 65800 

New International Bend Issues 

Compiled by Laurence Desvileftes 


4ft 04/15/14 88.1027 5.1 100 
51* 0301/23 594901 7.9100 
51* 030905 914225 73800 
101* 05/15/27 973000 103800 
51* 04H5/24 653472 8.0100 
lift 01/30/17112.116410.1500 
6H 12/1807 913600 73000 

109 Britain 
115 France OAT 
1T7 France OAT 
121 Britain T-Mfls 
123 Britain T-bllls 
735 France BTAN 
144 France OAT 
170 Maly 
1 72 France OAT 
174 France OAT- 
181 Britain T-note 
231 France OAT 
242 France B.TAN. 
250 France BTAN 

m 02/2101 116.1500 7.8600 

6 04/2504 103.1000 5.8200 

7 04/2506 1074700 6.5200 

zero 12/11/97 9841522 4.1200 
zero 09/11/97 99-0930 3.9900 

5 03/1099 101.3300 4.9300 
SVz 04/2507 96.1300 5.7200 

6 04/0204 101.3750 5.9200 

61* 03/1502 113.7300 74700 
71* 04/2505110.3400 6.8000 

5 01/26/9? 101.1083 4.9500 

10 02/2601 1174000 8-5200 

6 03/1601 1042900 5.7500 

7*6 03/16/98 102.1400 7.1 QOQ 

65* 070903 1075933 

080100 112.9100 75300 
01/2201 11545 7.8000 

1 1/7104 1122500 64500 
042203 108.7400 62100 
03/1500 106.7200 6.0900 
07/1504 1064150 65100 
02/2101 1 0341 00 5.0900 
030404 1054200 5.9100 
11/1203 1044025 5.7300 
01/1300 107.7500 64000 
0102/99 1044800 62200 

Finnish Markka 

187 Finland Serials 7ft 

French Franc 

214 France BTAN 7 

218 France BTAN 4ft 

225 FranceOAT 5Vfc 

6ft 03/31/20 79.6563 8^4700 
111* 05/15/26 114ft 10.0200 

&Vl 04/15/06 91.4822 7J5200 
.6% 04/15/24 84J6Z5 B.1300 
6Vr 01/m/tn 98.7042 6J900 
6*Ti6 04/1 ¥12 82.9688 8J600 
6ft 12/31/19 78.75ft) 7.9400 
6V» 07/28/11 73.5938 8.9200 
6ft 12/31/19 78.7500 75400 
3ft 02/28/15 69.0776 4.7000 
6% 03/31/23 87.1875' 7.8900 
3M Q0/2B/25 49.7500 7.0400 
7ft 06/13/07 102.1250 6.9800 
7ft 08AW01 1007810 77500 
9U 11/27/01 1007250 9.1900 
6ft 06/18/07 101.0000 67100 





69.0776 4.7000 
87.1875' 77900 
49.7500 7.0400 

69ft 07/28/24 

75.0913 87500 
99.9500 67000 

6 06/16/98 99.9500 6 7000 

69ft 02/20/25 747250 87300 
7ft 02/02/M 937582 77600 
4ft 04/15/14 92.0997 47900 
6ft 06h 1/07 101.00ft) 67800 
6767 12/31/19 937938 7.3400 
3 06/17/02 1027833 2.9200 

lift 09/15/16 1 1 3ft 1 0.0300 

6ft 03/31/20 797875 87700 
770 06/15/07 101.1250 7.1200 
3 10/27/24 577750 5.2300 

06/12/02 1017240 
2ft 07/28/12 557438 47300 
6<*V 04/15/09 87.7475 7.9100 
6ft 05/21/02 1007437 6J100 


Floating Rate Notes 

Bakrie Indonesia 

Banco Popotare detf Emilia 

Bank of China 

Bankers Trust New York 

Banque Internationale a 

Banque Paribas 

BES Rnana 

Den noreke Bank 

Rrst Franklin Rnarrcral 

Keybank Natlonft 

Kookmin Bank 
Korea Development Bank 
Mexico ~ 

Wizard Rnance 


(mfllions) Mat. 






* .ȣr II 






2001 3.00 100.00 — 

Owr6-ffl«ift Lfcor. CoSobkatpar Own 1998. Fees not ActaMd. DswaWnHom SS0OC00. 
(SamUotM RnaxeJ 

' * ■. J 




2002 0.10 99725 — 0*w 3-roorttti Libor. Noncaltatrt*. Fws 0.175%. OenondnoSns SI 070B. (Ghbank litflj 

2002 0-30 99.95 — Ovtr6-iaoiTth Lfcor. Noncofiabtc F«fs (LSO^fc. (Oaiwo SecurtSesJ 

99.794 — 

Over 3-mooth Libor. Conabte at par in 2000. Fees 0175^. Deuuswutioiadl (UQ1 (Deaftebe 


, ; lir 

SI 700 2002 

9974 — Ow3-month Lfcor. NonccAable. Fees 070%. CJ.P. Morgan Securities^ 

99748 — Over3-nwrth Libor. NoncpfloMe. Fees 0.15%. Deoom i iiat l o n s SlOOOa tBangue PoifcosJ 




99.766 — 

imenstwfll be ft over 3-nwrth Ubor untfl 2002 when issue is coikMt of poc meneofler2;i 
ncr. Fees 0425%. Denondnaflons SlQTtXL fJ-P. Moigai SecuritiesJ 

2002 075 100.00 — 0*er34north Lfcor. ftoneoflaUe. Fees 0.1 75%. Dw»niinations SI (UM0. ILehmon Bntteis.1 

Si 41 7 2028 0.24 open — Over 1-month JJbor. Avenge Bte3J7 years. Fees 070%. (Merrill LyndilntlJ 


SI 00 


99.793 — 

2000 (W0 100.00 — 

SI TOO 2002 

99.95 — 

99367 — 

43 British Columbia 7ft 06/11/07 102.1250 6.9800 

45 Mexico 

01/15/07 1057787 97300 

socommrzbk FRN s.727 01/29/01 997900 5.7500 Acres Number 3 


04/18/06 1087014 6.7000 

11/12/99 1077800 67400 
04/12/99 101.8600 4.6600 
04/2M37 98.9200 5 7600 

152 Peru Pdl 4 

1 53 Banker Trust zero 

160 Venezuela 9ft 
162 Quebec FRN 5.951 
167 Argentina FRN 5791 
169 Panama 3ft 

7 76 UBS Rn 2ft 

177 Italy FRN 5.71« 

1 78 Bay Landesnsht 6ft 

184 World Bank 6ft 
185Centauri 6.07/ 

188 SI Petersburg 9ft 

192 British Gas Rn zero 

193 Credit Local 6ft 

195 British Telecom 6ft 
196IADB 6ft 

198 Mexico D FRN 6*« 

202 Quebec 7 

203 Argentina 11 

204 Fst Natl Bk Chic 7 

205 BGB Fin Ireland 6ft 

21 5 Canada 6ft 

21 6 Poland Inter 4 

4 83/07/17 65.6250 6.1000 
zero 07/10/97 99.6904 57400 
9ft 06/1W7 1007000 97800 
5.955 06/1 1/04 99.9797 5.9600 
5795 04/01/01 1287000 4.4200 
3ft 07/17/14 77.0000 47500 
2ft 06/164)2 1047368 27400 
5.719 05/12/02 99.7605 5.7300 
6ft 06/10/02 100.7500 6.7000 
6ft 08/21/06 1007000 67900 
6775 06/16/98 99.9706 6.0800 
9ft 06/1402 100.0000 97000 
zero ll/M/21 16ft 7.7000 
6ft 02/1 a/D4 99.1250 67600 
6ft M/25/02 1017994 67400 

196IADB 6ft OV07/D7 100.1594 67100 

198 Mexico D FRN 6>V« 12/28/19 937457 72900 

202 Quebec 7 01/306)7 997750 77100 

203 Argentina 11 1 0/09/06 111ft 97800 

204 Fst Natl Bk Chic 7 05/0800 1017500 6.9100 

205 BGB Fin Ireland 6ft 12/30/99 1007000 67900 

21 5 Canada 6ft 08/28/06 101.1977 67700 

21 6 Poland Inter 4 1Q/27/14 86.0625 47500 

217Cregem Nth Am zero 09/11/97 98.6897 5.7600 
219 Goldman S FRN 6 Vh 06/02/04 997500 6.0700 
220Gleneagles FRN 6.129 06H 7/12 99.1211 6.1800 
221 Fin Dan Ind Fm 6ft 06/15/01 1007750 6.7200 

Japanese Yen 

122 World Bank 
151 Italy 
155 Spain 
208 Fannie Mae 
226 World Bank 
237 Exlm Bk Japan 

49s 0600001095248 4.1100 
31* 060805 1082500 14600 
3.10 09/2006 103.3750 2.9800 
41* 02/2003 113** 3.9600 

2 12/20/99 102.1250 1.9600 

4 Yz 12/22/97101.8750 4X200 
2ft 07/2805 103.3750 2.7B00 

222 Philippines Fix 

227 Venezuela FRN 

228 Nigeria 

229 E\B 

230 SEK 

235 Rossini FRN 
238 Mexico B FRN 
245 Ecuador FRN 

8* 1007/16 101.7500 &6000 
61* 03/100)7 913750 73900 
6 Vi 11/15/20 69.4063 9.0000 
7ft 09/1806 104.0283 63500 
631 06/1900 98.8990 6.0800 
02/1308 99.9000 
6336 12/31/19 94.4300 73300 
3tt 02/28/15 733746 4.4700 
6V* 05/3007 1003750 63400 
7 06/1206 1013250 63900 

The Week Ahead; World Economic Calendar, June 23-27 

A setwdute of ffus mak 'seconontocandfinAncfat events, complect for me Ini&naocruJ Herald Tntwne by Bloomberg Business News 


Expected Hong Kong: Far Eastern Economic 

This Week Review holds annual “Countdown 
to 1997: Roadmap to Hong Kong's 
Continued Prosperity" conference. 
Speakers include Hong Kong's gov- 
ernor. Chris Patten, and Singa- 
pore's senior minister, Lee Kuan 
Yew. Monday and Tuesday. 


Brussels: European Parliament be- 
gins session. Wednesday to Friday. 
Madrid: April trade deficit; April cur- 
rent account. 

Zurich: Swiss National Bank releas- 
es money supply figures for May. 

June 23 


June 24 

Tokyo: Bank of Japan releases In- 
put and output price index in each 
manufacturing sector for May: re- 
turns on principal saving products 
data; Tokai Bank Ltd. forecast on 
Japanese economy in 1 997 and 

Hong Kortg: Hong Kong Interna- 
tional Aerospace Forum; retail sales 
figures for April. 

Earnings expected: Chen Hsong 
Holdings, Melbourne Enterprises, 
New Asia Realty & Trust, Shina- 
gawa Fuel. 

Wednesday Manila: National Power Corp. 

June 25 opens bids for Bataan nuclear pow- 
er plant's uranium fuels. 

Tokyo: Masayuki Matsushima, di- 
rector of the Research and Statistics 
Department at the Bank of Japan, 
comments on “tankan" survey. 

Munich: Pro Sleben news confer- 
ence to release price, details of com- 
pany's initial public stock sale. 
Prague: Czech Statistical Office re- 
leases revised macroeconomic fore- 
casts for year and May foreign trade 

Pails: Jean-Claude Trichet, gover- 
nor of Bank of France, presents an- 
nual report 

Brussels: Jean-Jacques Kasel, rep- 
resentative of Luxembourg to EU, 
outlines Luxembourg's plans for EU 

The Hague: European Commis- 
sion's president, Jacques Santer, 
and Trade Commissioner Sir Leon 
Brittan meet Japanese leaders. 

New York: United Nations summit 
on ecology. President Bill Clinton 
and world leaders discuss mea- 
sures to reduce pollution levels. 

Sian Francisco: Annual Conference 
of Mayors. Speakers include Pres- 
ident Bill Clinton, Vice President Al 

Santiago: Central bank reports May 
trade balance and economic growth 
tor March. 

June 26 

June 27 

Wellington: Treasurer Winston Pe- 
ters releases government's 1997 
budget; government releases de- 
tails of its budget position in the 11 
months ended May 31; overseas 
trade for May. 

Tokyo: Bank of Japan's governor, 
Yasuo Matsushita, gives lecture at 
meeting on international economies; 
Bank of Japan accounts released. 
Earnings expected: Oriental Press 
Group, Korea Electronics, Broken 
Hill Pty., Konaml. Sumitomo Realty. 

Zurich: Swiss Association of Busi- 
ness Economists releases quarterly 
forecast for Swiss economy. 
Earnings expected: Asda Group, 
Bundeslaender Verslchewng, Great 
Universal Stores. 

London: First-quarter balance of 
payments and national accounts. 
Pans: June business confidence 

Mexico City: First-half inflation rate; 
foreign-reserve levels. 

Washington: Treasury Secretary 
Robert Rubin speaks on national 
agenda for rebuilding cities', Con- 
ference Board releases consumer 
confidence index for June. 

Washington: Yu Shuning, spokes- 
man for the People's Republic of 
China, to discuss the transfer of 
Hong Kong to China; Commerce De- 
partment reports May durable 
goods orders. 

Washington; Commerce Depart- 
ment reports final estimate of eco- 
nomic growth for the first quarter. 
Earnings expected: General Mills, 

Fleming Overseas 
Investment Trust 

Merrill Lynch 4 Co. 

Robert Fleming Capital 

Fixed -Coupons 

Abbey National Treasury 

American Express Co. 
Banco Inter-Aliarrflco 
Bayerische Landes bank 

Credit Local de France 
CSN Iron 



DSL Bank 

Dow Chemical 

Hitachi Credit 

Development Bank 

Japan Rnance Carp- for 
Municipal Enterprises 



Lebanon ~ 


Russia ™ 

Sodete National des 
Oiemins de Fer Francois 



General Electric Capitol - 


British Columbia 
World Bank 

World Bank 

World Bank 

wrzard Rnance 


Mticerich Co. 
Samsung Electronics 

2000 0.18 99.94 — 

2006 0.T5 99.92 • — 

2007 0363 100.00 — 

Ovtr 3-motifft Libor. Noflcallabfe Few 020%. Denominations STOLOOD. CJ.P. Moigsn 

Qtfer3-montti Lflior.Reoffefednt99.9S R cdec nioblcotporinl99a.FeoOig p b. De nominq teo t 
S25&OOQ. {ABN-AMRO Home GavelL) ' ~ 

Over 3-monfli Lftior. Goflato ctper in 2000 l Fees 0.15%. DenotnlnoHons SI&000. (Goldman 
Sadis IntU 

Owr 3-monlh Ubor. Coftafale at par In 2000. Fees 0375%. DerKxnbcrftoasSiaOOO. (HS&C 


Over 6* month Ubor. NonoofloWe private placement Fees 0459b. Denomtadtons STfMXKL 
(TokfthMKsubbM Inttl 

Owr 3-mcntt\ Ubor. Average Wt A15 yean. Also £14.1 criBon paying 0>Q w Ubor. Fees 
0JS%. Denonrtwflons £10300. CUBSJ 

Over 3-monlh Ubor. Caflable at par in 1999. Fees not tfsdaud. Denomtaattans £100000. 
{Robert Fl em i ng &CoJ 




2002 0^075 99.768 — Over 3-nwtrth Lfcor. Noncallflbte.F«*0Ll75%.(M«iffl Lynch inMJ 



Start 5 

:i Pace *! C 


100.00 — 

Oer 3-morrtii Ubor. Nonc o fl oWa . Fwsfl.15%. Denwninall oi a £100,000. (Drasdner KSeinwod 
















Si 00 













100.7945 99.65 Reoffend al 99407. NMcallaMe. Fees CSofoaiwiSrottwsIntll 

99.824 100.00 NoncoUobte. Fees 0.35%. CLehnwn Bronwfs IntU 

99JS18 100.® 

993696 — Semlanmxitty.NanaAible. Fees 030%. (Cxedlt Agrfoole IndosuczJ 

Semiannudltr. Noncafloble. Fees 0 l 325%. Denonriradions $250,000. (MeaBI Lynch Inti) 

101.113 9950 Reoffered at 9948$ NanasBable. Fees)ft%. (ABN-AMRO HoareGwett.) 

101 J25 100.05 Reeffered at 99535. NonoaDcible. Fees 1 W%. (ABN-AMRO Hoare GoveA) 

99.55 — SemkmfwaBy. NoacaBabla. Fees (U0%.(j-P- Morgan Securities.) 

99J91 — Semiannual?- Noncaltabta. Fees 0^75%. Dmominations S1EUXXL (CHfcank Inti) 

101.025 99-50 Reoffend at 9940 l Noncalkfcta. Fees (SBC Wortwrg.) 

101,22 99.85 Reoffend at 9942. Nonaollaeie. Fees iVt. (UBSJ 

■ *n.m **m 

— r* rtt 
-ft r*m 


101.318 99.80 
101 ^24 99.90 
101JE7 99.70 

Reoffend at 99 J43. NoncaBobJe. Fees lft%. (MerrS Lynch IntU 
Reo ff wed at 99324, NoncaMobte. Fees lft% DP. Moiyw SeoiraieflJ 
Reoffend of 99.702. NoncaUoUe. Fees 1 5ft. (Laftman Brnttwn 

2007 6U 99.998 10030 NoncdkitHe. Foes 0325%. {M«nfU Lynch irttio 
2001 6ft 101.225 99.75 Reoffend at 99325. Noncaltoble. Fees 1%. (DG BankJ 

2007 7ft 99.716 - 

fVi 99.716 — NoncoUable. Fees 0625%. (MemB Lynch fnnj 

2007 9 % 105339 — Serntanmwfcy. Honcattatote. Fees 0.75%. (Satomon Brolhere lntl.1 

2007 T6 99.164 — NoncallabEe. Fees 1 (JJp7Moryon Secarflles.) 

6 100J3375 99-25 Reoffered al 99.15. NoncaHabie. Fees 1 Mft. (Deutsche Maroon GraidU 

DM500 2002 

DM500 20W 


S 101359 9935 Reoffend of 99359. NoaaaRoble. Fees 2W%e(CS Ftef Boston.) 

5 101.745 — Reoffend at 99395. Nonooflable. Fens 2ft%. (Deutsche MotyanGfenfeU) 

7 100.897 — Reoffend ot99372- NoncaRohle. Fees 11*%. (SBC WtarbuvoJ 


FFZD00 2009 SVt 101 J55 99.10 

FF3.000 2009 5% 100.794 99.75 

iTUOamO 2004 7 .Q 5 101.53 IOOjOO 
DF400 2009 6W 101.035 = 

DF750 2003 

101 Vi 9920 

SAR750 1998 15% 100.95 99.95 

SARI, 000 2027 zero 320 Im" 

Y33-SOO 2000 1.62 100.00 — 

51 SO 2002 TJ* TOO .00 — 

S3 00 2007 zero 100.00 — 

Reoffend of 99.905. Noncallabte. Fees 2%. (Banque ParibasJ 
R e offend at 99.144. NcraalfaMe. Fees 2%. (Moiqan Stanley ItifU 
CaBabfeotporFn 19S^Fees 1u%.(Sanwa IntiJ ^ 

Reoffend or 9936. NoncoMde. Fees 2%. (ABN-AMRO Hoare Goveft) 

Reoffend at 9935, NoiK&Uafale. Fees lift HNG Barings^ 
ReoffeM<rilOQjQ5.Nmdtabie.Fees1^h (Ciedtfe ItaKana) 

YWd 1228%- Reaffered at 3. 10. Noncafloble. Fvsigible with autsfandlng l&uti ratslng total foo 
amount fo 3 bfflen ramL Fees 030%. (Morgan Stanley Inti) 

Noncolloble prhrofe ptoms Fees (UJ%. (TUqoMMM KnTU ’ 

Setnlonmally- CaBable at par in 2002. Convertible of S31 ft per sharer a 10.18% pnnriuin. Fees 
notdhdosM. (Laard Capital Moriuefcj 

Redeemable of 131357 In 2002. Convertible at 121635 won perstureand at B8&50 won per 
dottgr. Fees 2ftV (Deutsche Morgon GrenfefU 

~ % 



— - 

Last Wook's Markets Euromarts 


Stock Indexes 

DJ Indus. 
DJ Uffl. 

DJ Trans. 
Nasdaq Cp 
J ppan 
NMsef 225 

June 20 

June 13 


















Money Rates 

United States 

Eurobond Yields 


Prim rate 
Federal funds vote 

June 20 

June 13 
- 5ft 

AwMje>itl>YrM9> Yflow 

Washington: Commerce Depart- 
ment releases first-quarter gross do- 
mestic product. 

Ottawa: Statistics Canada reports 
April survey of manufacturing and 
releases its Mayfield crop reporting 

iit Indus. 



Hong Kong 
hang teng 

20^534 2052835 -0.0 

459190 4*783.10 -196 
631010 A55O30 — 0J3 

1757.10 180832 —133 

178827 074444 +1.17 

15.15436 H11235 +738 

Call money 
3-mnth Interbank 


Bankoaw rate 
3-monlh intecbank 


Interventfon rate 
QA money 
3-month ntetbonk 

U3. 0 long term 
U3.0 mdmfem) 
Pounds sterling 
French francs 
Danish kroner 
5 wodfeh kronor 
ECUs, mdm terra 




675 635 

632 630 
672 674 
738 ?M 
535 534 

633 6.92 

534 530 
577 130 
632 631 

535 5-43 
5.76 634 
635 635 
7.17 7^0 
1.94 Z14 

738 633 
633 6.10 
650 536 
775 739 
535 436 
778 633 
5.92 538 

531 432 

630 5.96 

532 476 

631 &7D 
736 632 
§39 7.13 
2.U 134 

Weekly Sales 
PrtnwiY Mamet 

iMBt anww 
s Hons * 

Strafthts 3093 1523 W210 Z969-1 

Convert. 3183 53 5173 TJ 

FRNi 5053 mj 
ECP 143353 73023 123273 97554 
TcffaJ 15367.9 7,9913 106003 100654 

— . * 




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Can money 
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Source i-uwaitowD sfec*«cfjanga. 

Libor Rates 

FRNa 2&1Q12 7,9073 
EUP 17,9183 17,1493 
Total 69/2103 45,70031. 

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Q & / Ralph- Werner Jaeger 

Ananespace: Getting a Lift From Asia 

Ananespace. the European space 
transportation company, has estab- 
lished a dominant position in launch- 
ing communication satellites. In 
Singapore, Ralph-Wemer Jaeger, se- 
nior vice president of Ananespace for 
marketing, customer service and in- 
ternational affairs, discussed future 
business prospects with Michael 
Richardson of the International Her- 
ald Tribune. 

Q. What impact has the boom in 
satellite communications in Asia in 
recent years had on Arianespace’s 

A. Asia is increasingly important as 
a satellite market. It now represents 
between 20 percent and 25 percent of 
oar worldwide business. Of the 38 
satellite-launch orders on our books 
worth nearly $3 billion, eight are for 
the Asia-Pacific market 

Q. Why are communication satel- 
lites for television broadcasting, tele- 
phone services and data exchange in 
such strong demand in Asia? 

A, Hie region’s rapid economic 
growth, and development has called 
for major improvements in infrastruc- 
ture pf all kmds. including telecom- 

Many developing Asian countries 
have very limited fixed-line telephone 
services. They may be large contin- 
ental nations like China and India or 
widely scattered island states like In- 
donesia and the Philippines. It would 
take years and huge expense to extend 
the cable networks in these countries, 
especially to remote areas. 

Satellites can provide much q uicker 
and cheaper nationwide coverage for 
telephony and broadcasting. The di- 
versity of cultures in Asia means dial 
demand for a wide array of satellite 
television channels catering to dif- 
ferent languages and tastes is even 
sponger than in Europe or the United 

Q. How does the Ananespace suc- 
cess rate for launching communica- 
tions satellites compare with those of 
rival launchers in the U.S., Russia and 

A. Ariane rockets are the leading 
systems in terms of reliability, fol- 
lowed by Delta and Atlas in the U.S.. 
ana Proton in Russia. We have a sue- 
cess rate of about 97 percent. Theirs is 
around 96 percent. China's success 
rate is in the vicinity of 80 percent 

The Chinese are working har d to im- 
prove it. 

Q. What advantages over the cur- 
rent Ariane-4 rocket will the Ariane-5 
have for customers when it comes into 
service in early 1998?- 

A. A 3 or 4 percent failure rate for 
launches is relatively high compared 
to failure rates of satellites once they 
are in orbit. Launch failures are costly 
when you consider that, on average, 
each rocket carries two satellites in- 
sured for as much as $500 million. 

Ariane-5 is designed to give even 
higher reliability than Ariane-4 and 
carry heavier and larger payloads. 
With Ariane-5, we will give custom- 
ers a launch guarantee that no other 
rocket operator so for provides. In the 

very unlikely event of failure, our 
guarantee provides a relaunch free of 
charge at a time to suit the customer 
when the replacement satellite is 

Q. There are seven space launch 
organizations operating in Western 
Europe, Russia, China, the U.S. and 
Japan. Isn't that too many for the 
amount of business likely to be avail- 
able over the next decade or two? 

A. It depends on how the space 
launch business develops. 
Ananespace has so far concentrated 
on large communication satellites for 
geostationary orbit high above the 
equator. We have about 60 percent of 
the global market for launching such 
satellites. Our market forecasts show 
that berween 30 and 35 of these satel- 
lites will be launched each year over 
the next decade. 

There is also an emerging market 
for launching constellations of smaller 
communication satellites. 

Q. Will there be additional con- 
tracts from governments in Europe 
and elsewhere to launch military satel- 
lites for intelligence-gathering, sur- 
veillance and arms control? 

A. This is already big business in 
the U.S., where about 50 percent of 
Adas and Delta launches are for the 
government, mainly for military satel- 
lites. For Ananespace, government 
contracts amount to less than 10 per- 
cent of our total business. 

Future space-station building and 
resupply could open up a major new 
business avenue for rocket operators. 

Seoul Unveils Financia 



SEOUL — South Korea disclosed 
Sunday a detailed plan for the first phase 
of financial reforms, but analysts said 
the program avoided the important 
moves needed to improve the nation's 
backward financial industry. 

'‘The plan showed the government 
does not want to face problems head- 
on." said Lee Hahn Koo, president of 
Daewoo Research Institute. "It simply 
does not want to lose its power in the 
financial industry." 

The Ministry of Finance and Econ- 
omy said it would lower business bar- 
riers between banks and nonbanking 
institutions in line with recommenda- 
tions proposed in April by the Pres- 
idential Commission for Financial Re- 

Under the plan, brokerage houses 
would be allowed to issue corporate 
bonds and underwrite, trade and broker 
commercial paper beginning in July, 
while banks would be permitted to raise 
funds through financial bonds. Insurers 
would be allowed to engage in foreign- 
exchange operations. 

“We accommodated the commis- 
sion’s proposals as much as possible," 
the ministry said. 

But conditions would be attached to 

the liberalization moves, it added. 

The ministry said securities houses 
could only issue corporate bonds with a 
maturity of one year or longer within 
400 percent of their shareholders’ 
equity. Commercial paper should be 
issued by listed companies with high 
credit ratings, the ministry said. 

The issuance of financial bonds by 
banks would be possible only after the 
ministry's consultations with other fi- 
nancial authorities, it said. 

The ministry also said it would delay 
deliberation on the issue of liberalizing 
bank ownership until a revised bill on 
the bank law was prepared. 

"We set aside items that could cause 
disorder in the financial industry," the 
ministry’ said. 

The presidential commission recom- 
mended that, in the first phase of re- 
forms, each of the top five business 
conglomerates, or chaebol, be allowed 

to have one nonpermanent directorship 

on the board of one bank. 

Chaebol are currently not allowed to 
own banks or to participate in bank 
management to prevent an even greater 
concentration of power in an economy 
already dominated by large conglom- 

Commission members agreed in 

April to limited chaebol participation in 
bank management, but decided to study 
further the question of ownership ol 
banks bv the chaeboL 

"All 'major items were put aside for 
later discussion." said Mr. Lee of Dae- 
woo Research. 

"It looks obvious that the Finance 
Ministry wants to keep its clout, visible 
or invisible, in the sector forever," said 
Koo Kyong Hoi. analyst at Dongwon 
Economic Research Institute. 

■ Emergency Loons to Bonks 

The South Korean government will 
extend SI billion in emergency loans to 
2 1 local banks that face difficulties bor- 
rowing overseas after the collapse of the 
Hanbo Group, Bloomberg News report- 
ed from Seoul. 

Korean banks are being forced to pay 
more than other Asian borrowers be- 
cause the failure of Hanbo in January 

raised concern about their finances. The 
bankruptcy of another steel company. 
Saxnmi Group, only heightened in- 
vestors’ concerns. 

The foreign-currcncy-denominated 
loans will cany interest rates that are 
0.25 percentage point less than the rates 
they are being charged overseas, a cen- 
tral hank official said. 

Warning for Investors in Foreign Funds 

By Carole Gould 

Am York Timts Senirr 

ARGENTINA: Many Are Left Out of Nation New Prosperity 

Continued from Page 11 

said Arturo Valenzuela, director of the 
Center for Latin American Studies at 
Georgetown University. "You have so- 
cieties in L a ti n America that continue to 
be very split berween the rich and the 
poor, and that’s not changing fast 
enough for many people," 

At the same time, in Argentina, al- 
most no one is advocating a full return to 
the old days. 

For example, although the “convert- 
ibility plan’ ’ that pegged the peso to foe 
U.S. dollar has madeBuenos Aires one 
of the most expensive cities in the hemi- 
sphere, residents say Me still is prefer- 

able to the years of four-digit inflation, 
when the cost of a piece of butter could 
double in a few mini T tw? 

Officials in the governing party argue 
that protesters conveniently have for- 
gotten bow difficult life was, and how 
much the standard of living has improved 
during privatization. In six years, die 
number of phones in Buenos Aires has 
soared to 6 million from 1 million, and I 
million cellular phones are registered in 
the country. The number of households 
with cable television is exploding, and 
upscale restaurants and boutiques pepper 
the finer parts of town. 

* ‘The people on the street have a short 
memory," said Oscar Lamberto, a Per- 

onist congressman who heads the 
Budget Committee. "Nothing was as 
bad as the inflation years. We have 
stability now.” 

Bur for people like Mr. Flores, the 
hunger striker, privatization has taken 
its toll. With less revenue coming in 
from state-run industries, his home 
province of Jujuy must pay part of his 
salary in government “certificates,” 
worth less than the peso, reducing the 
value of his salary by 50 percent since 
1991 . "Now, we must liveon eight days 
of food for an entire month," he said. "I 
had hope for my 1 -year-old son before, 
hope duit he could escape a poor life like 
me. Now, there is no escape.” 

NEW YORK — Because of the 
strong run-up in the U.S. stock market, 
investors may be eager to add to their 
stakes in overseas markets, expecting 
more value abroad. But they will not 
achieve the diversification benefits 
promised by advisers if they buy shares 
in the typical foreign fund, warns Tricia 
Rothschild in a recent edition of Mom- 
ingstar Mutual Funds. 

Here is why, according to Ms. Roth- 
schild. the international editor of the 
newsletter: Asset-allocation formulas 
that show the advantages of diversi- 
fication are usually based on the Stan- 
dard & Poor's 500 stock index (the 
proxy for United States stock markets) 
and Morgan Stanley & Co.’s Europe, 
Australia. Far East index (the proxy for 
overseas markets). 

While the S&P is a good marker of 
large-cap American equity funds, the 

average foreign stock fund looks nothing 
like Morgan Stanley's EAFE. The 
primary' reason, Ms. Rothschild explains, 
is that the Japanese market accounts for 


nearly one-third of the EAFE. but less 
than 20 percent of the average foreign 
fond. Japanese markets tend not to move 
in close relationship to U.S. markets. 

So if s no wonder that foreign funds 
fail to deliver diversification benefits. 
Over the last five years, the S&P index 
showed declines in 15 months, while the 
average foreign fund lost money in 80 
percent of those months, too. 

And returns can be disappointing: 
The average foreign fund has not per- 
formed as well as the EAFE over the last 
20 years. 

Ms. Rothschild says a small group of 
foreign funds holds out the possibility 1 of 
better diversification: international 
small-capitalization funds, a relatively 

new group that focuses on smaller 
companies that are not tied to mul- 
tinational trends. 

5uch funds also are more likely to hold 
stocks in emerging markets. .And when 
the U.S. stock market has struggled, the 
foreign small caps have held up slightly 
better than their larger-cup cousins. 

■ Wage Increases at Top 

American workers may be saining 
only slight]} on the wage front, but the 
top officers' of mutual-fund companies 
are doing quite well. 

The median income for chief exec- 
utives of mutual-fund companies rose 
IS A percent in 19%, compared with 30 
percent the previous year, according to 
Fund Action, an industry newsletter in 
New York. The findings are based on 
information from 15 publicly held fund 
companies. The median income, includ- 
ing base salary and short-term bonuses, 
was SI .45 million, up from S 1 .23 million 
in 1995 at the surveyed companies. 

ft Q 



E 8 +44171 420 0348 


on Page 10 

Executive Positions Available 

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The European Roma Rights Center 
fERRO seeks a StiR Asomwfcr is 

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RACE 17 

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ECO-EFFiCiENCY : Business and the Environment 


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The bastoass community is 
taking on a greater role in 
preventing environmental 
hazards, as woB as hi 
cotrocting them when they 
do occur. Mote and more 
companies take htto 
account economic, 
mtmofogfcal and social 
implications when 

designing, producing and 


marketed tbdr products. 
This week's Earth Summit 
+5, a UN Special Session, 
wm look at what has been 
done since Rio and what 
sttt needs to bo done to 
protect the environment 
At right, an environmental 

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chemical plant 

Business Leaders Respond to Rio With Self-Regulation 

It is in everyone's interest whether government, business leader or consumer — to promote a healthy environment. 

F ive yens have passed ciety to prefer “eco-effi- agreements (covenants) es- 

Nafaore cienOy" produced goods and tablished in particular in- Oadbau niAvine EaueeiAue 

held die Earth Summit services — fr* huemAcc Wiwtn. CARBON DIOXIDE EMISSIONS 



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F ive years have passed 
since the United Nations 
held die Earth Summit 
■in Rio de Janeiro, Brazil. In 
: ttet time, governments, busi- 
nesses and consumers have 
become more aware of en- 
vironmental issues. 

“In general, there has been 
L an evolution of most groups 
— whether industry, govern- 
ments or nongovernmental 
organizations — toward a re- 

^cogjiition that everyone plays 
■ apart in reaching a solution," 
- says Livio DeSimone, chief 
/ executive officer of 3M and 
• chairman of the World Busi- 
ness Council for Sustainable 

' The Earth Summit became 
the first major global con- 
ference with strong business 
attendance, partly because 
■ business was ready for sus- 
tainable development and 
partly because governments 
, and many NGOs recognized 
the essential role of business 
in debating these issues — 

; and indeed that it was in their 
' interest to move the agenda 

This was not the scenario a 
decade ago: Those con- 
cerned about the environ- 
. ment often cast business in 
the role of villain: the 
1 primary source of pollution 
and the main misuser of re- 
sources. Today, however, the 
-countries in which business 
has been most successful in 
creatirg wealth for society 
are those most able to clean 
up pollution and manage re- 

Now ; these same countries 
must encourage developing 
nations to avoid the more 
polluting aspects of the early 
northern industrial revohi- 
; tions and of the industrial- 
ization of .centrally planned 

. “So/mtich of the world 
-needs to improve its standard 
of living,” says Mr. DeSi- 
mone. “Unless that growth is 
..controlled in a sustainable 
way. we will put undue stress 
on the- planet’s scarce re- 
' sources.”. 

; Freer trade offers success- 
jjully developing nations the 
l opportuBhy to create the 
; wealth and to obtain the tech - 
■ nology and skills to manage 
..their .environments more ef- 
yficiently; . ' 

t Given, the right signals- — 

8 from governments to reduce 

i wasteful subsidies and to 

properly, cost resources and 
1 pollution sinks, and from so- 

ciety to prefer “eco-effi- 
ciently''' produced goods and 
services — the business 
community will respond via 
market mechanisms and im- 
prove eco-efficiency. 

Partners in protection 
The World Business Council 
for Sustainable Development 
is committed to being a part- 
ner m protecting the envir- 
onment In a recent report 
entitled “Signals of Change: 
Business Progress Towards 
Sustainable Development" 
the group notes a number of 
changes in direction and mo- 
mentum toward sustainable 

“We think that these 
changes signal a paradigm 
shift in the way in which 
business does business.' It is a 
shift from a fractured view of 
environment and develop- 
ment issues to a holistic view 
of business and sustainable 
development,” say the au- 
thors, Stephen Schmidheiny, 
chairman of Anova Holding, 
and Rodney Chase, man- 
aging director of British. Pet- 
roleum — both former chair- 
men of the WBCSD — and 
Mr. DeSimone. 

The report discusses a shift 
from sustainable develop- 
ment costs and challenges to 
savings and business oppor- 
tunities; from end-of-pipe 
approaches to pollution to the 
use of cleaner, more efficient 
technology. Environmental 
issues are seen as company- 
wide responsibilities. 

The road from Rio 

Increased voluntary govern- 
ment-industry cooperation, 
leaner and greener use of re- 
sources by companies and 
more vigilance on the part of 
consumers are also signs that 
the road from Rio has been 
paved wife more than good . 

“I think many govern- 
ments have seen feat it’s bet- 
ter to move in a cooperative 
direction rafeerfean issuing a 
set of regulations,” says Mr. ■ 

Some governments are 
providing opportunities for 
business to avoid costly and 
innovation-stifling bureau- 
cracy by encouraging self- 
regulation and pacts wife ' 
government agencies, Tather 
than new environmental 


The Dutch, for example, 

have had considerable suc- 

cess with legally binding 

agreements (covenants) es- 
tablished in particular in- 
dustry sectors where com- 
mitments are made to reduce 
emissions and improve en- 
vironmental performance: 
the Energy Conservation in 
Industry program is one of 
these. A similar agreement 
aimed at increased efficiency 
in fee use of energy and raw 
materials is in force in Ger- 
many. And Canada has suc- 
ceeded in designing volun- 
tary pacts wife industry to 
eliminate toxins and tackle 
climate-change issues. 

Shining examples 
In fee United States, the En- 
vironmental Protection 
Agency has started some 50 
voluntary partnership pro- 
grams in different industry 
sectors to encourage fee re- 
duction of emissions and 
wastes and to devise more 
environmentally efficient 

The idea behind fee pro- 
gram is to set challenging but 
achievable targets and then 
allow companies to devise 
their own strategies and 
choose their own technol- 
ogies to reach fee goals. Both 
DuPont and Dow Chemical, 
for example, are among the 
Fortune 500 members that 
have joined the WasteWise 
program, designed to reduce 
solid wastes sent to landfill. 

Companies participating 
in the 33/50 Program had 
jointly reduced their toxic 
emissions by 355 million 
pounds as early as 1994. The 
computer industry has been a 
keen participant in the En- 
ergy Star program, which en- 
courages energy efficiency in 
computer and electronic of- 
fice products. 

Waste minimization and re- 
source optimization were 
management’s early re- 
sponse to environmental 
pressures on manufacturing. 
Put simply: use less, waste 

The central tenet of good 
housekeeping and cutting 
costs was epitomized by 
3 M’s Pollution Prevention 
Pays (3P) and Dow Chem- 
ical's Waste Reduction Al- 
ways Pays (WRAP) pro- 
grams. 3M’s program, begun 
in 1975, has been widely 
copied. 3M estimates feat it 
has saved itself at least $750 
million as a direct result of 
reformulating products and 
processes, redesigning 
equipment and recycling. 

Etiltions of metric tons ■ 

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UN Session to Review Rio 

Progress will be assessed and new action plans 

The United Natrons General Assembly is holding a Special 
Session in New York from June 23to June 27 to review and 
appraise the implementation of Agenda 21. This is the 
comprehensive plan for global action in 3 II areas of sus- 
tainable development that was adopted at the UN Con- 
ference on Environment and Development, held in Rio de 
laneiro in 1992 . The Rio conference is popularly known as 
the Earth Summit. 

This month's Special Session is called Earth Summit 
+5. It is expected to draw 70 heads of state. 

Agenda 21 contains strategies for preventing envi- 
ronmental degradation and for establishing a basis for a 
sustainable way of life on the planet into the 2lst cen- 

“The special session should take a hand, honest and 
critical look at what has been done and what has not been 
done since Rio." says Razali Ismail, president of the 
General Assembly. “We need to recall and reemphasize 
the compact that brought about the Earth Summit.” 

On the agenda 

Earth Summit - 1 - 5 will: 

• Assess global progress made in sustainable de- 
velopment since Rio. 

e Show that sustainable development works by high- 
lighting stones of successful efforts that people around 
the world are making. 

e Identify- reasons that goals set in Rio have not always 
been met and suggest corrective action. 

• Highlight special issues — such as finance and 
technology transfer, patterns of production and consump- 
tion. use of energy and transportation, scarcity of fresh- 
water — and identify priorities for future action. 

• Call on governments, international organizations and 
major groups to renew their commitment to sustainable 
development. These groups include women, farmers. 
NGOs. industries and indigenous peoples. 

Large roles 

In 1992. the representatives of the 172 governments 
attending the Earth Summit agreed that urgent action was 
needed to promote economic and social development 
while preserving and protecting the environment. After Rio. 
the United Nations established the UN Commission on 
Sustainable Development which monitors and guides 
implementation of Agenda 21 and other Rio commit- 

As a result of the Summit, the United Nations has held 
a conference on small island developing nations, ne- 
gotiated a convention on desertification and set up an 
intergovernmental panel on forests to promote the sus- 
tainable management of forests worldwide. The UN Con- 
vention on Biodiversity and the UN Convention on Climate 
Change also emerged from the Rio conference and are 
now in force. 

As at the 1992 Earth Summit, nongovernmental or- 
ganizations, as well as business and industry groups, are 
expected to play a major role. 


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Source: Carton Dioxide Information Corner. 7995 

State of the Art: 
Reporting on 
The Environment 

Envimnmental reports document the problems — 
and point to some solutions. 

ever before has the world faced such an array of grave 
environmental problems, and never before have so 
many programs been faking effective action to al- 

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essenoa Snk for curpwom 

Procter & Gamble, the are demanding comprehen- posures that could affect the 

maker of detergents and per- sive environmental and so- company’s market value. Tk t ever before has the world faced such an array of grave 

serial products, has over the cial information on the More use is being made of l^k] environmental problems, and never before have so 
past five years reduced dis- products or materials they conomic instruments L N many programs been faking effective action to al- 
posable wastes by more than purchase — a practice that liketradable pollution per- leviate them. 

50 percent while increasing has become known as sup- mits, charges and taxes to A large number of institutes are involved in reporting on 

sales by 25 percent. ply-chain auditing. encourage improvements. both the problems and the problem-solvers. Their individual 

Industry in developing Green alliances between reports are woven into wide-ranging, incisive overviews by 

countries is also reaping ben- Partnerships environmental groups and leading environmental organizations, 

efits in the drive toward By auditing fee environmen- businesses are continuing to Many ofthese organizations belong to the United Nations, 

cleaner production. Environ- tal quality of its suppliers, grow. One example is the The UN's Department for Policy Coordination and Sus- 
mental improvements at a companies can choose to successful partnership be- tainable Development recently published “Critical Trends 
sugar factory in Mexico, work with suppliers that tween McDonald’s Corp. — Global Change and Sustairikble Development." a cogent 
such as reducing water con- comply wife fee relevant le- and fee Environmental De- analysis of the world's economic and demographic mega- 
sumption and cutting the gislation, exploit market op- fense Fund to cut waste and trends, covering such subjects as trends in world population, 
amount of effluent dis- portunities and recognize improve recycling efforts. energy and materials consumption, and water as a mul- 
ebarged, saved fee company that environmental quality Investors warn to invest in tifunction resource. 

about $220,000 in the first can be as important a market environmentally, responsible “Critical Trends" presents statistics of great pertinence to 

year, and the investment was differentiator as price. companies, fee best and environmental protection, including those on carbon dioxide 

paid back within two years. “Our partnership with brightest people want to emissions and rises m energy consumption. Its focus. 

Cutting waste and making suppliers has proved valu- work for them, and fee public however, is not on fee environment per se, but on how 
efficient use of raw materials able in creating significant is using its buying power to economic development is governed or limited by the en- 
have always made good improvements in quality and encourage business to fulfill vironment and by such human-caused environmental prob- 
busmess sense. The increas- environmental perfor- environmental and social re- lems as the growing lack of potable water. Status reports from 
ing cost of waste disposal, mance,” says Paolo Can- sponsibilities, according to other UN organizations take detailed looks at the problems 
driven partly by tougher tarella, chairman of Fiat Auto the WBCSD's report “Sig- themselves. 

laws, has underscored fee fi- S.p.A. nals of Change.” The Rome-based Food and Agriculture Organization of 

nancial benefits of waste re- Several trends suggest that Change will be influenced fee United Nations recently published a definitive study on 

duction and therefore the im- business will pay more and by fee extent of fee political the destruction of forests. According to fee report, the world's 
proved value to shareholders more attention to the sustain- and societal will to encour- forests covered more than 62 billion hectares some 100.000 
of such management. able development agenda in age change. Freer and more years ago: today, less than one-quarter of them still exist in 

Companies that align order to remain competitive, open markets, stable and pre- their original state. More than half have been destroyed, with 
themselves with fee goals of Environmental regulations dictable trade rules, interna- fee other quarter converted to commercial use. 
sustainable development are getting tougher, and so is tional standards, economic Forests still account for 26 percent of fee earth's surface 
cannot afford to be tainted at enforcement For example, instruments that motivate, but will continue to decline, reports fee FAQ, because of 
any level. They must be vi- companies operating in fee fast dissemination of tech- deforestation in fee tropics and the spread of acid rain from 
gilant at every stage of fee United States (and non-U.S. oology and voluntary agree- Europe and North America to most of the industrializing 
production phase. Their sup- corrmanies listed on fee U.S. ments are all examples of world In terms of total hectares destroyed. Brazil has been 
pliers, for example, must 3lso stock exchanges) are re- policies feat help business the world's deforestation leader, losing nearly 1. 3 million 
qualify as “green.” q aired by the Securities and support sustainable develop- square kilometers (493,000 square miles) in a single frve- 

That is why an increasing Exchange Commission to ment year period (1990-95). That represented 23 percent of fee 

number of corporate buyers disclose environmental ex- Amy Brown country's total forest area. During fee same period some 1 6.2 

percent of the Philippines’ forest cover was cut down — this 

^BaRRRHRRURdRURRRRRUUU^KBRUaUHHHUKMHUUHURHKUEEBEUUEMRURRUnM was fee highest percentage among fee world’s nations. 

EcoirnoENCY: Bisif^AroTHEEmiiiftNMENT Wha can be done to help roreree tfiis trend? “In fcreshy, 

was produced in its entirety by the Advertising Department qf the International Herald Tribune. e guiding pn ncip c should beone of stewardship, where the 

Wrftcrs: Amr Brawn, based in Sockholm and rtportingfirm Rhode Island; Heidi Ellison, based l rf. rep ^r? S cL ™ 

in Parti; James Fahn. based In Bangkok and Terre Swanabe, g, based in Munich. wlth $*."“? ® mamtamthe quality of the sot , air 

. PhotatAMoSoRiMMahto . ^wat er- end also t oeonservebiodiyOTiiy, protect arnma! 

habitats and preserve the forest s aesthetic qualities* savs 
"Eco-Ejfidency ” is a Joint initiative cf the International Herald Tribune Paul Gagne, president and chief executive officer of Avenor 

and the World Business Council for Sustainable Dewlopmenl. supported Adams Associates and co-chairman of the World Business .Council for Sus- 

(Swttserland). ft was sponsored M 1 3M Compam', Ano\a Holding AG, A\vnor Inc., The Dew tainable Development's working group on sustainable forest 
Chemical Company, FiatAuio S.p.A„ Fktcher Challenge Forests. Genera! Motors Corporation. management 
Hoechst AG. Monsanto Company. Norsk Hydro ASA. The Procter & Gamble Company. 

Scitdderf Stevens & Clark. Sony. Storebrand ASA, Unilever N. V. Attention to Insects 

Waste Management International and the display advertisers. The rain forests being destroyed in Brazil, the Philippines. 

# Thailand and Malaysia cover 7 percent of the worlds land 

surface. According to an exhaustive survey recently con- 
ducted by the United Nation’s Environmental Program, fee 
* lK * **'*%&£? &* Ii mm w«id Bub* Ceuta rain forests are home to 90 percent ofthe 1.75 million species 

for Susninah le Dwriopment 

« .. ■■ ■ — — ■ Continued on page 19 

Eco-£maEN€Y: Business and the EnvuiOnment 
was. produced in its entirety by the Advertising Department of die International Herald Tribune. 
Wrtteks: Amy Brown, based m Stockholm aid reportlngfiom Rhode Island; Heidi Ellison, based 
in Paris; James Fahn, based in Bangkok: and Terry Swartzberg, based in Munich, 

- Program Director: BiU Mahder. 


“Eco-EffiderKy ” is a Joint initiative of the International Herald Tribune 
and the World Business Council for Sustainable Dewlopment. supported fy Adams Associates 
(Switzerland). It was sponsored by 3M Company, Anova Holding AG, Awnor Inc.. The Dew 
Chemical Company, Fiat Auto S.p.A.; Fktcher Challenge Forests. General Motors Corporation. 
Hoechst AG. Monsanto Company. Norsk Hydro ASA. The Procter & Gamble Company. 
Scvdderf Stevens A Clark. Sony. Storebrand ASA, Unilever N. V. 

Waste Management International and the display ad\<ertisers. 



World Bta ma. Com al 
for Susoinahie DafHopmcot 

. h . 

...... . ■ * 


_ ■* 1 1 I " • 

PAGE 18 




ECO-EFFICIENCY: Business and the En vironment 



To Be Responsible, 

Take Initiative 

Business is teaming up with environmental 
groups, to the benefit of both parties. 

T he business world has never been seen as the domain 
of saintly do-goodeis. while die environmental move- 
ment has. So how do vou convince comoratinns to 

-1- ment has. So how do you convince corporations to 
cooperate with environmentalists? By showing them that it 
makes good business sense, of course. 

It's not the miracle of the fish and loaves, but the fishing 
industry provides a clear example of business helping to- 
protect the environment for the mutual good of both. Ac- 
cording to the United Nations Food and Agriculture Or- 
ganization. fully 70 percent of the world's commercially 
important marine fisheries are either fully fished, over- 
exploited, depleted or slowly recovering. 

Obviously, is it not in the interest of a multinational 
corporation like Unilever, which controls 20 percent of the 
world's frozen fish market, to let fish stocks disappear. To 
deal with the problem, Unilever has teamed up with an 
unlikely partner — the World Wide Fund for Nature. To- 
gether they created the independent Marine Stewardship 
Council, which sets standards for sustainable fishing and 
awards certificates to fisheries that meet those standards. 
Beginning in 1998, consumers will know that they are buying 
environmentally sound fish products when they see the MSC 
label on the package. 

Corporations are finding ways to make environmental challenges, work for them. 

P ersuading investors to take the 
environmental, performance of 
comDanies into account when 

X companies into account when 
they are making decisions about where 


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to put their money is; no easy task. By 

definition, investors are most interested 

A Vm* 

Voluntary reform 

A.S. Ganguly, director of Unilever’s research and engi- 
neering division, says that there has been “a groundswell of 
support for the MSC, encompassing industry, nongovern- 
mental organizations, politicians and others. These groups 
and individuals believe that the MSC has the potential to have 
a significant impact on the biological sustainability of fish 
stocks worldwide." 

Unilever has appointed an independent project manager to 
ensure that the MSC is fully operational by the end of this 

Corporations like Unilever, in this case, are referred to as 
"responsible companies," meaning that rather than wait till 
government regulations force them to take action to protect 
tiie environment they take the initiative themselves. In the 
end. whether their motives are selfish or altruistic, or a- 
mixture of the two, is irrelevant The result is the same and is 
beneficial to the environment 

The World Business Council for Sustainable Develop- 
ment an umbrella organization for corporations committed 
to the protection of the environment and to economic growth 
and sustainable development defines a responsible company 
as one that is "built on the concept of eco-efficiency, with its 
emphasis on doing more with less. It is profitable and 
continues to add environmental and financial value for its 
shareholders and to create wealth in society." 

improve its performance: have a transparent relationship 
with its employees and shareholders; and always base de- 
cisions that affect the environment on sound scientific anal- 


Stand and deliver 

Lip service to these ideals is not enough, however. 

"One cannot simply sell one’s products without assuming 
responsibility for them," said Konrad Henkel, CEO of the 
HENKEL company, as early as 1972. 

According to tire WBCSD, a responsible corporation 
should create management systems to measure, monitor and 

The paper industry provides a good example. The third- 
laigest industry in the world, it contributes 2 percent of world 
trade, with around $260 billion in sales, and employs 3.5 
billion people. Long a target of criticism for its destruction of 
forests, the industry has the potential to transform hselfinto 
a sustainable industry by putting into practice forest stew- 
ardship principles. 

Through the continued development of new wood plant- 
ations in die tropics and sub-tropics, the industry could 
produce enough paper to supply world demand (expected to 
double over the next 50 years) without jeopardizing a 
sustainable future. 

Two reports issued by the WBCSD, “Towards a Sus- 
tainable Paper Cycle" arid “A Changing Future for Paper," 
provide a detailed analysis of the industry. 

Heidi EUison 

definition, investors are most interested 
in a return on then - money, so envi- 
ronmental awareness has to improve the 
bottom line and increase share value. 

In general, it makes good business 
sense for a company to avoid causing 
environmental problems that it will 
have to pay to clean 14 ) later, but the 

economic' benefits of environmental 
awareness have been demonstrated 
more clearly by many companies. 

Dow Chemical Co. provides a 'good 
example of how investment in the pro- 
tection of the environment can actually 
create value for a company, rather than 
just cost it money. In April .1996, the 
company launched a 10 -year program 
whose goal is to improve its environ- 
mental health and safety performance 
worldwide. Dow’s projections show 
that the environmental improvements 
will result in savings of. nearly $ 1.8 
billion, or 1 percent of its total revenues, 
over the 10 -year period. 

According to a just-released report 
entitled “Environmental PerfOTnance 
and Shareholder Value," published by 
the World Business Council for Sus- 
tainable Development, more than 50 
funds with a total value of $2 billion in 
the United States and Europe take en- 
vironmental criteria into account This 
represents only 015 percent of managed 
funds, but as bankers and asset man- 
agers (notably in insurance companies 
and pension funds) increasingly stay 
away from companies with bad en- 
vironmental reputations, they will nat- 
urally 'favor companies known for their 
eco-efficient policies. 

While the effect of good environ- 
mental performance on shareholder 
value is difficult to isolate and measure, 
there are indications that there is a pos- 
itive correlation. In 1996, Storebrand, 
Norway’s leading insurance company, 
and the Boston-based investment firm 
Scudder Stevens & Clark launched the 
Storebrand Scudder Environmental 
Value Fund. June 20 was the first an- 
niversary of the fund, and the results are 
impressive. According to Carlos Joly. 
Storebrand's senior vice president in 
charge of environmental policy and in- 
vestment, the fund achieved a net return 
ofbetween 20 percent and 21 percent in 
U.S. dollars in its first year, 2 percent 

■ ““ 

higher than the MoiganStahley _ Capital 
International World Index, putting it m 
the top 20 percentile among global 
equity funds. 

The Storebrand Scudder Environ- 
mental Value Fund’s results were also 2 
percent higher than those of the 800 
companies'analyzed by Scudder Global 
Equity, a difference that can only be 
explained, says Mr. Joly,- by the en- 
vironmental analysis, as the funds are 
managed and analyzed in the same 

Debunking the myth 
Mr. Joly points out that there is a pop- 
ular misconception about environmen- 
tal funds. “There is a myth that holds 
that the incorporation of social or en- 
vironmental analysis criteria leads to 
poor performance. This is not true. The 
results of the Storebrand Scudder En- 
vironmental Value Fund show that not 
only does an ^plication of eco-effi- 
ciency criteria not have a negative effect 
on performance, but can provide en- 
hanced returns.” 

He adds that many people think of 
environmental fundsas being restricted 
to the pollution-control technology sec- 
tor, a niche market that does not always 
perform as well as might be hoped. 

“Our fund is different," he says. “We 
invest in companies throughout the 
economy, picking those with the best 
environmental performance in each 
sector, whether iit is pharmaceuticals, 
chemicals, airplane manufacture, etc." 

Mr. Joly’s contention that eco-effi- 
ciency can have a positive' effect on 
financial performance has been sup- 
ported by other data. A study conducted 
by ICF Kaiser looked at more than 300 
of the largest public companies in the 
United States and concluded that en- 
vironmental improvements might lead 
to a substantial reduction in the per- 
ceived risk of a firm, accompaniedby a 
possible increase of 5 percent in the 
stock prices of public companies. . 

' Hot on the heels of the announce- 
ment of the Storebrand Scudder En- 
vironmental Value Fund’s successful 
first-year results, Swiss Bank Corp. an- 
nounced the creation of two new funds 
that will invest in companies with high 
financial and ecological performance. 

SBC Eco Performance Portfolio- 
World Equities, an equities fond, and 
Aktien Welt Oeko-Performance, an in- 
vestment group being launched by 
SBC’s investment foundation AST, are 

unusual in that they will invest in both 
ecological leaders and innovators. 
"Ecological leaders are generally la*S e 
groups (so-called ‘blue chips’),” says 
Franz Knecht, director of Environmen- 
tal Management Services, “which lead 
their sector both financially and eco- 
logically, and continually improve their 
ecological performance. Ecological in- 
■ novatora are mainly younger companies 
that have been selected on the basis of 
their innovative and environment- 
friendly product range.” 

In choosing the companies, both .tra- 
ditional financial analyses and eval- 
uations of their ecological activities are 
used. SBC, working with outside sci- : 
entrfic experts, has developed a sector- 
related method of ecological analysis. 

The Domini 400 Social , Index, 
launched in 1991, screens large U.S.' . 
companies on environmental and social .. 
responsibility criteria. When its annu- 
alized returns as of September 1995 
were .compared with those of Standard 
& Poor's 500, Domini 400 showed 
results of 15 percent over the previous ’ 
36 months, compared with S&P 500’s 
1 4 percent For the previous 60 months, 
the respective figures were 17 percent 
and 15 -percent. The study was con-' ‘ 
ducted by Kinder, Lyndenberg, ■ 

A study- by Yamashita, Sen and 
Roberts looked at the other side of the; 
co in,. suggesting that companies with ; 
the worst environmental conscientious- 
ness scores have a lower average per- 
formance on stock return and conclud- 
ing that “there is a positive relationship : 
between higher long-term environmen- 
tal conscientiousness scores and higher; ‘ 
stock returns over the long run.” 

While green investment funds are .; 
just starting to come into their own, it is 
safe to say that environmental con- '. 
siderations will eventually play a great- : 
er role in mwktment decisions. 

Companies would be wise to heed - 
the advice of Stephan Schmidhemy and 
Federico J.L. Zorraqutn in their book 
“Financing Change: The Financial 
Community, Eco-efficiency, and Sus- 
tainable Development” (The M.I.T. 
Press); “We urge company leaders to 
build a sustainable development reflex 
into corporate activities, so that when 
the markets come to reward eco-ef- : 
ficiency more systematically, company 
leaders will have their strategies in 
place, the teams trained and fit, and their 
stakeholders loyal." H.E 

Even the most severe critics I WoRLD TRADE ISA WlN '- WlN proposition 

like our drilling fluid. 

Increasingly, trade pacts and environmental laws support each other, benefiting business and nature. 

W henever global 
trade expands, new 
environmental is- 
sues and priorities emerge — 
with new environmental 
laws not for behind. Ex- 
amples include environmen- 
tal taxes, eco-labeling re- 
quirements, and laws on 
packaging and recycled con- 

Environmental concerns 
often pose a major challenge 
to trade liberalization and ac- 
cess to foreign markets. 
Some environmental groups 
see placing restrictions on 
trade as a key to preserving 
and expanding existing en- 
vironmental laws. Their 
pressure has been an impor- 
tant factor in drafting Euro- 
pean Union law, forging the 
North American Free Trade 
Agreement and developing 
World Trade Organization 

When trade and environ- 
mental laws collide and af- 
fect efforts to liberalize trade, 
industry tends to cry foul and 
environmental groups to 
claim victory. A growing 
□umber of companies and in- 
dustry groups, however, such 
as the World Business Coun- 
cil for Sustainable Develop- 
ment, reject the notion of a 
trade vs. environment de- 

In a recent report, “Trade 
and Environment: A Busi- 
ness Perspective," the WBC- 
SD asserts that trade and en- 
vironment are neither 
mutually exclusive nor areas 
that must be in conflict with 
each other. 

Trade can help optimize 
the efficiency with which re- 
sources are used, a key re- 
quirement in achieving sus- 
tainable development It can 
also provide higher levels of 
wealth to support environ- 
mental activities. In addition, 
open trade enables the flow 
of technology, which in turn 
encourages new environ- 
mentally beneficial technol- 

A business environment 
geared to supporting sustain- 
able development needs tp 
depend on freer and more 
open markets, and stable and 
predictable trade rules. From 
industry’s point of view, 
open, competitive markets 
create the most opportunities 

■ ■ <' I >4C I T'jh, 


Petrofiree* by Henkel: completely 
biodegradable under water. 

No drilling fluid, no new oil wells. 
Drilling fluid is the substance that 
lubricates the drill head and car- 
ries the rock upward on a drilling 
platform, for example. 

From there, however, 
some of the fluid gets into rhe 
sea. And this is exactly where the 


problem begins. 

Because up to a few years 
ago, there was no alternative to 
poorly degradable, petroleum- 
based fluids. The pollution in the 
North Sea alone amounted to 

30,000 tons a war. 

This no longer needs ro 
happen today. Now there is a dril- 
ling fluid made from palm kernels: 
Petrofree* - developed and pat- 
ented jointly by Henkel and the 
international oilfield service com- 
pany B-aroid. This drilling fluid is 
folly biodegradable, even without 
oxygen and, as long-term studies 
show, it harms neither fish nor 

other marine life. 

And on top of that it's 
even more efficient. Two good 
reasons whv more and more oil 


companies are using Petrofree 1 
To the silent applause of even the 

most severe critics. 

Henkel KGaA, Dus&eldocf 


Our environment 
serves a new quality. 

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for the most people. This re- banning trade in the regu- trade bans between de- 
quires rules that help guar- lated substances and any veloped and developing 
antee tbe conditions for freer products containing them be- countries, particularly tbe 
and fairer competition. The tween a party and a non-party ban on recyclable waste 
World Trade Organization, to the protocol. The intention products. Industry was 
for example, attempts to do is to avoid shifting produc- firmly opposed to this ban, 
this through limiting trade re- don from one country to an- but in the face of claims that 
stri ctiorts. Environmental other, in which case global foreign hazardous waste was 
standards should be designed consumption of the sub- causing damage in develop- 
to avoid creating barriers to stances would not be re- ing countries, industry had 
trade, and eco-labeling duced. It was felt that most no alternative strategy for 
schemes should, especially countries should participate dealing with the potential en- 
avoid being distorted into and that the absence of a vironmental effects of the 
trade barriers, the WBCSD trade ban would frustrate the transboundary movement of 
cautions in its report achievement of the goal. recyclable products. The les- 

Work on harmonizing in- son learned is that it is not 

temational environmental Hazardous wastes pact enough to be opposed to 

and trade law is being done The 1989. Basel Convention trade measures simply on 
by the. United Nations En- on the Control of Trans- principle, but that environ- 
vironment Program and the boundary. Movements of mentally focused alternatives 
Organization for Economic Hazardous Wastes and Their must be offered. 

Cooperation and Develop- Disposal was designed to 

ment among others. The eliminate tbe risks arising Biological diversity 

WBCSD has made recom- from the transboundary The 1992 Convention on 

Biological Diversity pro- 
. . vides a somewhat different 

approach to the trade issue. 
Its focus is on conservation, 
which includes the sustain- 
able use of global biological 
diversity (biodiversity). It in- 
cludes no bans on trade in 
any products but reverses the 
previous presumption of free 
access to genetic resources in 
developing countries. 

Tbe natural genetic re- 
source is based on the prior 
informed consent of the re- 
ts source-owning country. It 
I can make tins consent subject 
| to conditions on sharing ben- 
| efits that result from the ac- 
S cess, depending on the goals 
* and market issues that- pre- 

7he Basel Convention afrns to e&nfnafe hazardous waste problems. va ^- 

This convention estab- 
lished a new basis for trade in 

mendatiohs to the WTO. for movement of hazardous and -biological resources. It is in- 
developing measures to other wastes. The risks in- tended particularly to 
bridge the two. The 1987 elude those associated with provide developing countries 
Montreal Protocol on pro-- transportation, handling, dis- with benefits that reflect die 
tecting the ozone layer, the posal and recycling of die global value of the resources. 
19S9 Basel Convention on waste. Movements from de- over which they have ter- 
transboimdary movement of veloped to developing coun- ritorial responsibility in order 
hazardous wastes and the tries were the central concern to support their conserva- 
1992 Biodiversity Conven- throughout the negotiating tion. 
tion have all wrestled with process. The convention re- A bridging mechanism is a 
the trade-environment di- quires the parties to establish . major requirement for fur- 
lemma. \ a "prior informed consent” tbering die constructive re- 

procedure that must be fol- lationship between trade law 
Ozone protection . lowed before any export or and multilateral environmen- 

Tne Montreal Protocol was import is allowed. to or from ■ tal agreements. Such a mech- 
designed to protect the ozone another party. This trade re- anism. would allow for the 
layer from continuing deteri- striction was. designed to al- least trade-restrictive inter- 
oration by human -nude low the parties to ensure die national regime consistent 
chemicals, primarily chloro- safe handling, tran^jortatfon ' wife" achieving the intended 
fluorocarbons, which -are to and disposal of the- wastes. environmental protection 
be phased out this year. The . Considerable controversy and sustainable develop- 
protocol includes provisions remains over die' adoption of men! A.B. 






j .-- .~r 

ECO-EFFICIENCY: Business and the Environment 

PACE 19 


r* >■ 

■ i t 

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State of the Art: Reporting on the Environment 

Biodiversity Countdown 

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Cbrrtiniied from page 17 

0 f life forms now known to sci- 

As UNEP notes, however, a 
further 12.000 species are dis- 
covered each year. According to 
the JUCN {the World Conserva- 
tion Union), this is because sci- 
entists' are shedding their pre- 
dilection.- for investigating 
vertebrates and starting to devote 
rrtore attention to insects, which 
account for 55 percent of all the 
world's species. 

in scientific reports, the current 
ra te of species extinction is 
pegged at anywhere from 70 to 
3130 a day, with UNEP putting it at 

1j 7. This wide variation derives 
from the magnitude of the task of 
chronicling the fare of each spe^ 
cies, as well as the length of the 
tunc frame used as a base ijf 


Volunteers for survival 
Oneof the largest task Forces coh- 
ering this subject is made up df 
7,000 scientists, field worker*, 
government officials and conser- 
vation officers. They all work -i- 
on a voluntary basis — for the 
IUCN's Species Survival Cora- 
mission, one of six such bodies 
within the international organi- 
zation. ’ 

The SSC's “Animals in the 

"W- .. 

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Safe Water 

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Red: Mounting Evidence of Jeop- 
ardy to the World's Species” (Oc- 
tober 1996) found drat a full 
quarter of all mammal species are 
“at risk of extinction,'' that 23 of 
the 27 orders of birds contain 
Threatened species and that just 
less than half of all species of 
niollusks are classified as 

When forests are destroyed, the 
land formerly occupied by them 
is converted into agricultural 
fields, meadows for grazing and 
settlements. Unsatisfactory meth- 
ods of cultivation, overgrazing 
and population pressure have se- 
riously damaged these lands. 
UNEP has classified 1 5 percent of 
the world’s land surface as “de- 
graded.” Number one in this cat- 
egory is Europe, with 23 percent 
of its surface seriously impaired. 
The major cause of land degrad- 
ation is erosion due to water. 

Overflows of water are largely 
caused by the destruction of the 
forest-based ecosystems, the 
leading freshwater-retention sys- 
tem in the world. Without forests 
to slow down the process, rainfall 
very quickly becomes flood water 
that strips away valuable topsoil 
as it rages toward the sea. 

Rivers often pose a serious en- 
vironmental problem. The first 
impartial audit of Poland's rivers, 
for instance, found 92 percent of 
them “beyond classification” — 
meaning that their level of pol- 
lution was worse than that de- 
scribed by any existing category. 

More thirst, less water 
While the world has been busy 
destroying its reservoirs and 
rivers, its thirst for water has been 
dramatically increasing, reports 
the FAO. Over a recent 44-year 
period ( 1 950-94), the world's 
consumption of water increased 
sixfold. As a result of falling sup- 
ply and increasing demand, the 
per-capita availability of fresh 
water declined 57 percent be- 
tween 1950 and 1995. 

The consequence of all this is 
that 2 billion people do not have 
access to clean water or sanitary 
facilities, causing 250 million of 
them to foil ill — and 5 million of 
them to die — every year. 

Published by the United Na- 
tions Commission on Sustainable 

Development, the “Comprehen- 
sive Assessment of the freshwa- 
ter Resources of the World” has 
somewhat different findings. Ac- 
cording to the study, “20 percent 
of the world population does not 
have access to sale drinking wa- 
ter. and 50 percent lacks water for 
proper sanitation. At any given 
time, approximately one-half of 
the people in the developing 
world are suffering from a sick- 
ness associated with bad water.” 

The divergence in the sanit- 
ation and sickness figures stem 
from differing definitions and 
methodologies. Some studies rely 
exclusively on die official data 
issued by individual nations, no 
matter how doubtful the proven- 
ance of that data often is. Others 
extrapolate estimates pertaining 
to the entire w-orld from statistics 
put together by “reliable report- 
ers” — counfries widi credible 
environmental information. 

There arc no quibbles about the 
accuracy of the data issuing from 
the worldwide network of air- 
quality and temperature-mcajiur- 
ing stations. There is still no cer- 
tainty. however, about what the 
data means, although the accu- 
mulating weight of evidence is 
increasingly bearing out early 

In its First Assessment Report 
(published in 1990). the Inter- 
governmental Panel oil Climate 
Change says: “Humanity's emis- 
sions of greenhouse gases are 
likely to cause rapid climate 
change. . . . Climate models pre- 
dict that the global temperature 
will rise by about 1 degree-3.5 
degrees C by 2100. This pro- 
jection is based on current emis- 
sion trends and contains many 
uncertainties, particularly at the 
regional level.” 

These trends continue today. 
According to the 1PCC. the con- 
centration of carbon dioxide in 
the earth's atmosphere in the 
year 2030 will be twice that of 
the pre-industrial era. unless this 
rise is checked by sweeping 

The increasing influx of green- 
house gases into the atmosphere 
is now expected to cause the 
mean sea level to rise by some 1 5- 
95 centimeters (5.91 -37.4 inches) 
by 2100. The lower figure would 

suffice to produce flooding and to 
unleash a wide range of changes 
in the temperate zones' ecosys- 

Little uncertainty exisu. as to 
the state of the world's ozone 
layer. In a re-enactment of what 
has happened in the southern 
hemisphere, the northern hemi- 
sphere’s ozone layer “will 
achieve an unprecedented thin- 
ness in the summer of 1997.’" 
stales a report issued in prep- 
aration for the Ninth Meeting of 
the Parties to the Montreal Con- 
ference. to be held Sept. 9-17. 
1997. It will once again he held in 
Montreal, the venue of the first 
International Conference on the 
Ozone Layer. 

Reversing the depletion of the 
ozone layer is probably the most 
pressing problem lacing the 
w orld. At the same time, no prob- 
lem has proven more tractable to 
concerted action by the govern- 
mental. consumer "and corporate 

International agreements 
The production by the world's 
industrialized countries of fully 
ltalogcnated chlorofluorocarbons 
(CFCsl — the single most sig- 
nificant cause of the deterioration 
— w as halted on Jan. 1 . 1 996. The 
world's nations have agreed to 
cease all production of CFCs by 
2010 and of the five other main 
destroyers of the ozone layers bv 
2002 to 201 5. 

Many of the world's leading 
companies have shown them- 
selves capable of replacing CFCs 
and similar compounds with en- 
vironmentally friendly materials. 
In its 1997 Environmental Re- 
port. Sony, for instance, states that 
it “was able to eliminate all 
ozone-depleting substances from 
its worldwide operations bv April 

Issued by an increasing num- 
ber of companies, whose actions 
have a tremendous impact on the 
environment, these reports detail 
the status of the companies' en- 
vironmental protection pro- 

Employing nearly 1 60.000 
people, the Sony Group in 1995 
consumed energy equivalent to 
that contained in 836,000 kilo- 
liters of crude oil. as well as 23 


H aeordKl number 


of extinctions 


In pxst years 







Reptiles • 


■ ■ 


Amp totems 

. 124 






.... 1,891 



■ ■ 


• ■ ■■ ■ 


/ 4 

E * ■ : . 

3 V 

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dt *. »■ ' ' - - 

5 - «. 

' • ■ 

; ■ ' .■* . . ■ 

:v ■ ■ 

■r • f ^ ** »!■"*? , „*■ ■ *.» 

million tons of water, at the sirne 
time, it generated I9U.IHNI tons of 

The company has achieved 
substantial reductions in all three 
of these items and made major 
improvements in all of its other 
areas of environmental impact. 
These achievements highlight a 
second function of these envi- 
ronmental reports: They provide 
hiahlv useful benchmarks anainsi 
which other companies can mea- 
sure their own environmental 
protection programs. 

For all parties involved in en- 
vironmental protection, such re- 
ports have a highly instructive 
message: By deploying advanced 
technologies and womb-to-iomb- 
to-womb environmental plan- 
ning. companies can achieve eco- 
nomic growth without having a 
negative impact on the environ- 

Sojrie IL’C V T: 

ment. No imcnvauonal organiza- 
tion lias v et issued a report adding 
up all of the individual, quan- 
tifiable environmental improve- 
ments achieved by companies 
such as Sony into u single set of 
statistics. The World Business 
Council for Sustainable Devel- 
opment. however, has published a 
w ide range of reports that, by their 
breadth and depth, provide highly 
informative and qualitative ana- 
lyses of the status of corporate 
environmental protection. 

In addition to presenting per- 
tinent ease studies, the World 
Business Council for Sustainable 
Development's reports also mar- 
shal the evidence available to 
show that profitability and en- 
vironment-friendly business con- 
duct are increasingly linked to 
and dependent upon each other. 

Terry Svvartzberg 

N in- W in Proposed 

t T> ■ — 

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if 5*. J 

e " ■ w . r 1 ;. ’■ "iV ; 

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PAGE 20 




ECO-EFFICIENCY: Business and the Envl 

. ■ - x* 

ft* * 



Companies Are Learning to Do More With Less 

What is eco-effidenc\\ and why is it good for bttsiness? Companies are putting sustainable-development principles to work. 


T he 1 987 report of the 
World Commission on 
Environment and De- 
velopment (known as die 
Bruntland report) defined 
sustainable development as 
progress that “meets the 
needs of the present without 
compromising the ability of 
future generations to meet 
their own needs." 

The report brought togeth- 
er environmental and devel- 
opmental concerns in a way 
that i ntroduced new actors — 
including business — into 
the debate. The Bruntland re- 
port called firmly for eco- 
nomic growth with a new 
technological and social con- 
tent Five years later, the Rio 
conference spurred a further 
“conscience movement" 
among business leaders. 

Putting ideas to work 
Today, the principles of sus- 
tainable development are be- 
ing converted into ideas that 
business can understand and 
put to work. Chief among 
them is eco-efficiency. a 
management approach de- 
veloped by the World Busi- 
ness Council For Sustainable 
Development and promoted 
by the United Nation Envir- 
onment Program's Cleaner 
Production Program. Eco-ef- 
ficiency calls for economic 
efficiency — using fewer re- 
sources and producing less 
waste mean saving money 
and generating profits. It also 

calls for ecological efficiency 
— less waste and fewer raw 
materials protect the envir- 
onment by conserving non- 
renewable natural resources 
and reducing pollution. Eco- 
efficiency encourages busi- 
nesses to become more in- 
novative, more competitive 
and more environmentally 
responsible than ever be- 

The concept designed to 
help companies support sus- 
tainable development, has 
been adopted by many cor- 
porations and business 
schools. It is one of the de- 
fining principles in a new in- 
vestment fund, the 
Storebrand Scudder Envi- 
ronmental Value Fund, 
which has found that eco- 
efficient companies in gen- 
eral provide a greater return 
on investments. 

The concept of eco-effi- 
ciency makes several de- 
mands on companies: reduce 
the material and energy out- 
put of goods and services, 
reduce toxic waste, make 
materials recyclable, maxi- 
mize sustainable use of re- 
sources. increase product 
durability' and increase the 
service intensity of goods 
and services. 

Eco-efficiency challenges 
businesses to find new ways 
of working without imme- 
diately sacrificing their tra- 
ditional practices. The philo- 
sophy capitalizes on the 

business concept of value 
creation and links it to en- 
vironmental values. “More 
and more companies are in- 
corporating these concepts 
into their operations," says 
Livio DeSimone, chief ex- 
ecutive officer of 3M and 
chairperson of die World 
Business Council for Sus- 
tainable Development 
“Even if they have not yet 
translated eco-cfficiency into 
action, they are at least ask- 
ing. “How does this affect 
me? What should I do 

The goal of eco-efficiency 
is to create value for society 
and the company by doing 
more with less over the life 
cycle of a product or service. 
Eco-efficiency is reached by 
delivering competitively 
priced goods and services 
that satisfy human needs and 
improve quality of life while 
progressively reducing eco- 
logical impacts and resource 
intensity throughout the life 
cycle to a level in line with 
the earth’s estimated carrying 
capacity. “The challenge for 
business is to keep up die 
momentum of continuous 
improvement in perfor- 
mance.” says Rodney F. 
Chase, managing director of 
British Petroleum. “This ap- 
plies as much to the envir- 
onment as to business results. 
But today, environmental is- 
sues and the agenda for sus- 
tainable development have 

an increasingly international 

Some companies, such as 
3M, are putting eco-effi- 
ciency to work by preventing 
pollution at fee source and 
strengthening the company 
by conserving financial re- 
sources. Each new product 
and its associated production 
process are developed with 
consideration for the ele- 
ments of eco-efficiency. re- 
ducing the impact on the en- 
vironment and improving the 

use of natural resources 
while meeting customers’ 
needs and returning a profit 
to the corporation. 

Life-cycle analysis 
Life-cycle analysis is among 
the tools most frequently 
used by businesses to mea- 
sure fee eco-efficiency of 
their products and processes. 
Life-cycle analysis involves 
listing the various positive 
and negative environmental 
aspects of a specific product 
or process. I fan environmen- 
tal choice has to be made 
between two or more 
products, it can be achieved 
by looking for a product that 
has a greater balance of 
points in favor of the en- 

Xerox, for example, is us- 
ing product life-cycle envi- 
ronmental assessment as a 
tool in its design-fbr-envir- 
onment tool kit One life- 
cycle analysis study demon- 

strated that paper manufac- 
turing and the use of energy 
in a small mid-volume copier 
were the primary contribut- 
ors to the copier’s environ- 
mental impact throughout its 
life. These findings will be 
used to support research and 
technology investment de- 
cisions and to serve as a 
baseline to identify oppor- 
tunities to improve environ- 
mental performance. 

Significant efforts have 
been made to improve the 
cco-efficicncy of electronics 
equipment. The Comprehen- 
sive Approach for fee Re-, 
cycling of Electronics ! 
(CARE) was founded in 
1993 under the aegis of 
Europe's EUREKA research 
initiative. This grouping of 
125 companies is busy im- 
plementing its “Vision 
2000" program. The pro- 
gram has two interrelated 
components, says Lirtz-Gun- 
feer Scheidt, who directs 
Sony's Environmental Cen- 
ter Europe. “One is to pro- 
duce fully recyclable elec- 
tronic goods," he says. 
“Doing so entails meshing 
fee individual parties' devel- 
opment activities. And that, 
in turn, involves delineating 
the parameters of such 
links." Strongly supported 
by Sony, many of these de- 
lineations were performed at 
CARE Innovation ’96. a con- 
gress held in Frankfurt in 
November 1996. It will be 


,i _ 






T - 

In 1996, LG invested over US$9 billion to grow its business. 

By reducing waste and 

followed by further events in 
Vienna and Hannover. ; 

The other kev objective of 
CARE’s “Vision 2000" is to 
compile product descriptions 
feat draw consumers in® the 
life-cycle process, says Mr. 
Scheldt. “Informed con- 
sumers are looking j for 
benchmarks feat they can use 
to ascertain how recyclable 
and eco-friendly a product is. 
Listed on the products them- 
selves. CARE's product in- 
dicators will provide fee con- 
sumers with these 
benchmarks — and promote 
the purchase of environment- 
ally friendly items." 

Eco-efficiency is In Iso 
about finding new energy 
technologies. While it is clear 
feat many of the world’s 
people will need greater ac- 
cess to eneigy, it is not Clear 
how much of this can safely 


be derived from carbon- 
based fuels. Given fee right 
market signals, businesses 
will provide new energy’ 
technologies. Eneigy effi- 
ciency in fee future is very- 
likely to include pricing sys- 
tems feat provide incentives 
for efficiency, as well as to set 
energy-use and pollution- 
control performance stan- 
dards for modes of trans- 

Guidelines for sustainable 
industrial processes include 
adopting low-waste technol- 
ogies. recovering and recyc- 
ling waste materials (both 
during and after fee manu- 
facturing process) and prac- 
ticing material life-cycle 
management for wastes. 
Most of these guidelines are 
within the reach of existing 

— and economically viable 

— technologies. 


To increase cco-efficicncy. 
several European nations 
have endorsed the idea of 
“Factor 1 0." This is a goal of 
tenfold improvement in pro- 
ductivity in fee long term, 
wife perhaps an intermediate 
goal of “Factor 4." a fourfold 
improvement over the next 
two or three decades. 

Eco-efficiency encour- 
ages people to think not only 
about preventing pollution 
from reaching the environ- , 
ment once it has been pro- 
duced. but also about cre- 
ating less waste from start to 

Producers and consumers 
are now beginning to think 
about what is being produced 
and consumed, and how it 
affects fee environment. This 
once-radical way of thinking 
is the ultimate goal of eco- 
efficiency. A.B. 

SustainKble Marketing 

Consumers are now rating products on an ecology scale. 

We pat people first 

Chan-Su Yu Has created something unbelievable. 

Imagine a device that combines the functions of a computer, a fax m ac h i n e, a modem, a web browser, an electronic organizer and 
more— so small it rests comfortably in the palm of your band. 

What Chan-Su likes most about" "LG Electronics new Handheld PC is the freedom rt gives you to work bow an4 where you like. 
Freedo m from the expense and inconvenience o (the long line of machines it replaces. 

LG’s other many technologically-sophisticated products include one-time programmable microcontroller units and digital mobile 
telecommunication systems. Everything we make exists because we listen to you. 

Now, bow can we help you? % LG 

A s environmental con- 
cerns have gone 
mainstream over jhe 
past decade, marketers have 
learned more about selling 
“green" products. First, be- 
ing green is not a luxury I — 
consumers now expect it, 
along with quality, perfor- 
mance and price. Second, 
consumers want plain facts, 
not hype, about products. 
And third, companies should 
be prepared to back up fee 
claims that they make. 

“Environmental attributes 
have largely become an Ex- 
pectation of overall quality 
and performance," says Jac- 
quelyn Ottman. president ;of 
New York-based Ottman 
Consulting. Inc., which ad- 
vises marketers on environ- 
mental and consumer issues. 
“It's impossible to walk 
down a supermarket aisle 
these days without finding a 
laundry detergent feat 
doesn’t make a "no phos- 
phate' claim. The bar has 
been raised. Now it’s a matter 
of going one step further." 

That next step involves a 
move from environmentally 
sound products to environ- 
mentally sustainable prod- 
ucts. For example, once 
toothpastes are in recycled 
packages, fee next step is to 
make fee package smaller; or 
to concentrate the liquid to 
make fee product smaller. 

According to recent poUs, 
U.S. consumers are likely to 
respond to such efforts. The 
environment is among the 
top five factors consumers 
think about when making a 
purchase, and 10 to IS per- 
cent- of all new products are 
making some sort of envi- 
ronmental claim in their la- 
beling and advertising. ' 1 
The United States Federal 
Trade Commission has issue 
guidelines for companies feat 
wish to make those claims, 
and as a result, says Ms. 
Ottman, marketers are more 
confident about making 
green claims. The Interna- 
tional Organization for 
Standardisation (ISO), in 
ISO 14000, is compiling 

guidelines for terms relating 
to manufacturing, pro- 
cessing. and product-in-use 
characteristics that should 
also help. 

just as important in a com- 
pany's green marketing ef- 
forts is a company’s overall 

“Companies that don't es- 

tablish a positive environ- 
mental reputation are likely 
to be left behind because 
many consumers don’t un- 
derstand what makes a spe- 
cific product green, so they 
rely on a company’s repu- 
tation for corporate environ- 
mental responsibility.'' says 
Ms. Ottman. 

Even given consumer con- 
fidence in a company's repu- 
tation and the company's un- 
derstated yet convincing 
advertising campaign, green 
products might not sell. In 
England, for example, con- 
sumers professed their will- 
ingness to spend more for 
green products — but British 
supermarkets were over- 
stocked with products feat 
those same consumers later 
claimed were too expensive. 
In the United States, study 
after study has found that 
consumers do not buy the 
products they claim to prefer. 
Some of fee reasons, accord- 
ing to James A. Roberts, as- 
sistant professor of market- 
ing at Baylor University in 
Texas, are that green 
products are more expensive: 
price, quality and conveni- 
ence are still important 

www.susTRinflBLSDgygLQpmgnT net 

factors: 70 percent of Amer- 
ican adults say they disbe- 
lieve comparative environ- 
mental claims: and 

businesses hesitate to offer 
green products because of 
stria state enforcement of 
deceptive-claims legislation. 


Despite these findings, there 
is a large enough segment of 
interested consumers to war- 
rant the attention of compa- 
nies wishing to market fee 
environmental aspects of 
their products, says Prof. 

“Environmental perfor- 
mance alone is not enough to 
sell a product.'’ says Bjorn 
Stigson. executive dircetorof 
the World Business Council 
for Sustainable Develop- 
ment “The consumer is not 
buying a green product un- 
less that product . is price- 4 
worthy and performs the 
same function. Consumers 
are not paying form 
something just because it w 
green. But if the price is the 
same and it performs the 
same function, people will 
select the green product" 

The WBCSD has a work- 
ing group to study these is- 
sues. The group is headed b> 
Antonia Ax:son Johnson, 
chairwoman of Axel Johnson 
AB. and Edwin G. Falkmafl. . 
chairman of Waste Manage- 
ment International. 

Growing environmental 
consciousness among con- 
sumers is likely to shift fee 
balance in favor of green 
marketing. Consumers know 
feat they share responsibility . 
for a clean environment Ac- 
cording to a Roper poll. 88 
percent of Americans agreed . 
that “protecting the environ- . 

ment will require most of us 
to make major changes in the 
way we live." 

Companies that educate 
about environmental benefits 
also improve their chances. 
Wife education, consumers 
are more willing to pay . a 
premium for some types of 
goods and services. Alii' 
anccs between private and ‘ 
public groups also help to 
extend an organization's re- 
sources and influence. 

One key difference be- 
tween today's green con- 
sumers and those of yesteT' 
day is a strong belief m 
technology 1 to solve environ- 
mental problems. They ex- 
pect state-of-art products, ac- 
cording to Ms. Ottman.. and 
are pragmatic, take-charg? 
consumers wife a mission. ■ 
Industry should take fe^ 
mission into account in fe e ^ 
next wave of green market- 
ing, die says. A***' 

: B 

1 . . 


ECO-EFFICIEN CY: Business and the Environment 

There’s No ‘M agic Bullet’ i T * roKim 1 1 


PAGE 21 

-’- ^?; MV* lt s0 chaUen mg to transfer environmental know-how ? 

■ -*i- -<S^Jji7 . 


■-■ L*.‘ 

'-■ l.T-Z 


\ .'{ 

. -n 

-'r-* r 

. -<M 
S- rt 

V"C Then it comes to 
; \\f solving envimn- 
■: .V ^:r mental problems, 
j^ere is often nothing that a 
^vernnient official from a 
^developing country likes 
more than a “magic bullet” 

— a technical solution, usu- 
-*any : brou^it in from abroad, 

that does not require the mus- 

- ■ ■• * 

■ -a? — 


* 1 > 

« * • 

i . *. 

\i\ aHc sacrifice. 

V v indeed,- governments in 
^ anany developing countries 
A I ifikie to view the environment 
\\-as soiely a technical issue. 
..TThatVFrobably why envi- 
‘l;| ipnmfi?tel agencies tend to 
M J^jarEpedinto science and 
:a technology; ministries, and 
^ ;why environmental officials 
'can talk for hours on the sub- 
ject of technology transfer — 
the process of importing 
know-how from developed 
countries to their own. 

Transferring environmen- 
tal technology to developing 
countries has turned out to be 
difficult, however. One prob- 
lem lies in the ability of these 
countries to assimilate so- 
phisticated equipment. Suc- 
cess requires more than the 
supply of physical hardware. 
- Experience shows that incul- 
cating the skills to use the 
equipment is crucial to suc- 
cess. Without the training 
programs for maintenance, 
for implementing appropri- 
ate management systems and 
for environmental protec- 
tion, the “hardware” almost 
■always disappoints. 

■"■ “Environment technology 
■ ■ has grown up laigely m re- 
sponse to local needs in the 
.West and Japan. The basic 
'problem in Asia is that the 
technical and engineering 
base is not there,” says Paul 
Clements-Hunt, head of re- 
search for die environmental 
information unit of SGS 
(Thailand). “There is a short- 
age of technicians and plant 
^operators who can solve 
mechanical failures, and 
--simply a lack of appreciation 
--of operations and mainten- 
.-ance procedures.” 

■ P u i, ot * ier major problem 
is rinding the money to pay 
for ail this technology. Fol- 
lowing the Earth Summit 
^ lve years ago, there was a. 
great deal of hope that 
massive flows of green aid 
from the North would clean 
up the South — or even bet- 
ter, help developing coun- 
tries to avoid repeating the 
mistakes industrialized 
countries have made. But. to 
the bitter regret of develop- 
ing countries, the promises 
made ait Rio have proven to 
be illusory. Only a few coun- 
tries — such as Denmark, 
which has undertaken major 
environmental aid programs 
in Thailand, Malaysia anH 
South Africa — seem to be 
hving up to their Ear* Sum- 
mit pledges. In general, of- 
ficial overseas aid of all 
stripes has decreased anH 
given the mood in many 
donor countries, looks set to 
decline further. 

That may not be a bad 
thing. Aid money is often 
misdirected or used ineffi- 
ciently. Most of it goes to- 
ward development projects 
that can have a negative im- 
pact on the environment and 
local communities. Even 
when it is explicitly targeted 
for green purposes, it some- 
times seems aimed more at 
improving a donor country's 
exports than at meeting the 
needs of developing coun- 
tries. As a proportion of the 
funds flowing into develop- 
ing countries, private capital 
has risen from 33 percent in 
1991 to 75 percent last year, 
according to the World Busi- 
ness Council for Sustainable 
Development; this trend is 
also being seen when it 
comes to environmental mar- 
kets. Officials from develop- 
ing countries now generally 
accept that they need to set up 
these markets for green 
goods and services, and then 
let private investment flows 
decide where the money 
should go. 

The WBCSD has been in- 

Amount destroyed {in ttnusands of square 
wiameiers and as % of total forest coverage) 

thousands ol 

square kilometers 


stromental in promoting this 
new trend. Established be- 
fore the Earth Summit under 
the guidance of Swiss indus- 
trialist Stefan Schmidheiny. 
it has brought together more 
than 600 business leaders 
concerned about the envir- 
onment from around the 
globe into 15 national and 
two regional networks, along 
with four partner organiza- 
tions; it includes chief ex- 
ecutives from some of the 
world’s largest corporations. 

A global network 
The WBCSD’s global net- 
work is spread throughout 
Africa, Latin America, the 
Gulf ofMexico, Asia Pacific, 
and Central .and Eastern 
Europe. In addition to influ- 
encing governments to 
change policy frameworks 
and carrying out training pro- 
grams to help eliminate de- 
structive business practices, 
the councils also implement 
projects for sustainable de- 

Speaking of technological 
cooperation with developing 
countries, Harry J. Pearce, 
vice chairman of General 
Motors Corp (a WBCSD 
member), says: “The Gen- 
eral Motors systems ap- 
proach combines education, 
cooperation and collabora- 
tion, and technology as keys 
to success and sustainable 
development in developing 

The Thailand BCSD is 
headed by one-time Prime 
Minister An and Pan- 
yaraebun, a former business- 
man and diplomat who is one 
of the country’s most popular 
statesmen. Mr. An and reg- 
ularly speaks to audiences on 
the need to promote eco-ef- 
ficiency, and he has helped to 
establish the Thailand Envir- 
onment Institute, a local 
think tank that works closely 
with business on ways to im- 
prove the environment 

Eco-efficiency projects 
can range from sustainable 
forestry programs to CFC- 



















19.4 ; mi 


13 2. 




■ ■ _aJ Dr 1 



*■ ■ . 

substitution work. There are 
examples spanning the 
globe. General Electric 
Lighting of the United States, 
for instance, helped Tungs- 
ram. a formerly slate-owned 
lightbulb manufacturer in 
Hungary, bring its environ- 
mental standards and quality 
control up to levels seen else- 
where in the West. (The U.S. 
firm is now a majority owner 
of Tungsram.) 

The BCSD in Colombia, 
meanwhile, has been helping 
small and medium-sized 
businesses to improve their 
efficiency by cutting pollu- 
tion — a key target since 
such companies typically 
make up a developing coun- 
try's industrial base but lack 
the expertise to improve their 
environmental performance. 

North-South projects 
The WBCSD is also a key 
supporter of Joint Implemen- 
tation — projects using in- 
vestment and technology 
from the North to help coun- 
tries in the South avoid emit- 
ting greenhouse gases 
(GHG) that lead to global 
wanning. Forests that can 
serve as carbon sinks grow 
faster in the tropics, for in- 

stance. and there are more 
opportunities to improv e ef- 
ficiencies among utilities in 
developing countries. A con- 
sortium that includes Tokyo 
Electric Power is already 
working in Indonesia to de- 
velop an electrification proj- 
ect using renewable sources 
of energy. 

JI is still in its pilot phase, 
and many hurdles remain: 
There is no agreement yet on 
how much credit for redu- 
cing GHGs the Northern in- 
vestors would receive, and 
some Jl — such as mono- 
culture plantations of fast- 
growing tree species — 
could prove controversial 
with local environmentalists. 
Nonetheless, if carried out 
with sensitivity, JI has huge 

So do environmental mar- 
kets as a whole. Although all 
estimates of their size prob- 
ably need to be taken with a 
pillar of salt. Helmut Kaiser, 
a German consultant, esti- 
mates the global market for 
environmental technology at 
$400 billion, with a thin) of 
that going to the developing 
world. To realize this poten- 
tial, Mr. Clements-Hunt re- 
commends that foreign 

Scu’X-FAO '996 

companies go local, first by 
working with local academ- 
ics to adapt the technology. 

The next step is ro set up a 
local fabrication plant. Even 
ifit is high in added value, the 
proprietary material that is 
actually transferred is usually 
quite small. As a result, most 
equipment can be manufac- 
tured locally, where devel- 
oping countries have the nec- 
essary -skills and low-cost 

“They can bring in appro- 
priate technology, polish it 
down, make it work in a trop- 
ical environment. The equip- 
ment generally should be 
stand-alone and mechanic- 
ally sound because there 
simply is not going to be the 
same level of operations and 
maintenance.” Mr. Clem- 
ents-Hunt points out. “In 
general, the technology does 
not have to be very complex. 
The issue is largely high- 
voiume organic waste.” 

In the end. therefore, tech- 
nology transfer is not going 
to happen with machine-like 
efficiency; it is rather a pro- 
cess of trial -and-error. In real 
life, it seems, there is no such 
thing as a magic bullet. 

James Fahn 

Joint Implementation Promotes 
Cooperation on World Cumate 

Industry in developed countnes often pays top dollar for 
energy. This, coupled with government regulations and 
incentives concerning greenhouse gas emissions, nas 
encouraged industry in these countnes to icck i™ more 
efficient ways of generating and using energy . 

This is where Joint Implementation ici Activities, im- 
plemented Jointly) comes in. JI is official-speak for s simple 
concept; Companies in industrialized nations v.ifo 
businesses -in developing countries to ne'p them reduee 
their greenhouse gas emissions. In return, the romp am 
that is lending a hand receives credit toward fulfilling ns 
environmental obligations at home. Thus, the oonor com- 
pany gets environmental credits: the country in transition 
receives investment, technology and jobs: and the ’.voria 
benefits from cleaner air. 

"Our customers are increasingly embracing eco-effi- 

ciency. They generate less waste, reuse c-r recyrie more 
matenals and place greater emphasis or. conser. mg en- 
ergy and resources.” says Edwin G. Falhman. chairman cf 
Waste Management International. 

The JI concept was introduced at the 1992 Earth Summit 
in Rio de Janeiro and was formally adopted into the of 
the United Nations Framework Convention on Climate 
Change. It is hoped that a marketplace ter these credits 
could eventually be established. 

in 1996. the World Business Council fc r Sustain able 
Development issued a call for proposals toi piofoace 
greenhouse gas reduction projects, v.hicr Drought m more 
than SO responses. 

The pilot projects will be evaluated in 2000. and there is 
some concern that the project will not be a success unless 
a market is developed and more incentives are offered to 
attract investors to JI projects. The main cn=iienge right 
now, however, is convincing the governments cf indus- 
trialized nations to accept the idea of giving then industry 
credit for helping reduce emissions in other countries. 

The WBCSD's Working Group on Climate and Eneig> 
Issues sees JI as one of the most practical ways tc deal 
with climate change and greenhouse gas emissions .’.rule 
injecting investment capital into developing nations. 

In evaluating the proposals submitted, the WBCSD 
found that while many had potential as profitable green- 
house gas emission reduction projects, they often neg- 
lected to adequately assess project development costs 
and potential risks or to recommend mitigating measures 
or anticipate shanngof project development costs. 

Many also needed more work in identifying the ca- 
pacities of organizations to develop and implement proj- 
ects. providing for greenhouse gas emissions monitoring 
methodologies, guaranteeing that projects will qualify as 
A1J pilot or potential Jl projects, and assessing economic 
returns and the size of the total greenhouse gas offset. 

The World Bank Group, which also evaluated a sample 
group of 14 projects, found that many of them were not fully 
developed but that there is potential for substantial in- 
vestor returns once the pilots are fully developed and risk 
management is taken into consideration. 

For more information or to submit proposals, visit the 
WBCSD's Web site ( The international Util- 
ity Efficiency Partnerships, which cooperates with the WBC- 
SD and has received 44 project proposals, has a Web site 
of its own ( H.E. 





■L £■ 

• j. _ 1 

. 3^.- 

’The Balance Sheet 

A s more and more companies become aware of en- 
vironmental issues, both in their own interest and 
because government regulations require them to, it is 
becoming increasingly obvious that environmental factors 
must be taken into account on a company's books. 

They may represent substantial costs — cleaning up 
damage to foe environment, tor example — or they might 
. represent large savings incurred through recycling, the reuse 
of waste materials in the production process or the cutting of 
waste. Knowing where foe environmental costs and' savings 
arecoming'from is also important in evaluating products and 
production processes. 

Accounting for foe environment has wider implications as 
well. A company's market value can be affected by en- 
vironmental factors, making these of great interest to in- 
vestors, Bankers are looking at both environmental risks and 
environmental market opportunities when they evaluate a 
company's" credit rating. A country's economic health can be 
affected by environmental costs, and organizations like foe 
- World Wide Fund for Nature are calling for such factors ro be 
accounted for in a nation's gross domestic product figures. 

The advantages of accounting for environmental factors 
. may seem obvious, but there are many obstacles. How should 
an environmental cost be defined and accounted for? If no 
standard is set and universally applied, there can be no basis 
• for comparison of figures. 

Because the accounting profession is conservative, change 
will come slowly. But come it will. According to Knut Ore, a 
partner in Deloitte Touche Oslo, defining an environmental 
■cost is an extremely difficult but necessary process. 

“The acc o unti n g and auditing professions are moving 
slowly toward developing standards,” he says. He mentions 
international auditing organizations as possible sources of 
such standards, as well as bodies like foe Securities and 
Exchange Commission in New York, which requires some 
companies to report certain environmental costs. 

Many corporations are already making efforts to take 
environmental factors into account. The Swiss Bank Corp-, 
for example, has specialized Environmental Performance 
'Rating Units to improve- the quality of financial analysis of a 
companyfoy- including environmental criteria. - . ■ 

Georges Blum, chairman of foe board of directors of SBC, i 
points to increasing demand for such services: “Our cus - 1 
tomers are starting to ask for more information about foe 
environmental performance of investments in stocks. 

• At Norsk Hydro, audits are considered an essential man - 1 
agement information tool to encourage good performance. 

Other efforts are under way to push for environmental 
accountancy. The World Business Council for Sustainable 
Development has setup a Working Group on Environmental 
Assessment In its report, “Environmental Assessment: A 
Business Perspective.” foe grotto says: “Environmental 

profits 1 through reduci ng waste arid liabilities, raising pro- 
ductivhy and demonstrating a company's sense of duly 
towad$ hs customers and neighbors. ~ 

StK& asg e ss m e n ts are a vital first step in qianmymg 
environmental factors so that they yw e\'enh^J]y be trt- 

accounting procedures. And, as the WBC.bU 
report statfrj “Fa v pr a b^ a<ressro ent can lead to companies 
getting advanta geous lending and insurance rates, ■ and en- 
fianced jfew 4>rttw^r value.”Environmental factors alSo come 
into -pfc^wfcen accountants are. advising companies on 


Eco-efficiency, and SustainaWe Dwelopiromt £1^ 
M.LT. PressF authors Stephan Schmidhemy and Federico 
J-L Zorraqafe say: *nTie accountancy profession remains 

environmental spotlight, mainly 
foaction^aa interpreter, verifier, and, to a certom ^tent, 
jPonerp^ness information to the markets. It is, afte aJU 
jti f ate r on whnt constitutes the bottom, lme. 

/today is Earth Day^ 

And so is tomorrow. The next day too. And 
the day after that. Let’s think about our 
planet and its environment every day. And 
not let a day go by without doing something 
positive to conserve our resources. Whether 
it’s recycling a soda can, doing volunteer work 
in your community or leading the research in 
the field of industrial ecology, it all con- 
tributes to making die world a little healthier. 

How much longer 
can the world afford 
to be power mad? 

It’s all within your reach. 

The AT&T 1 996 Environment. Health & Safety 
report can be found at 

No-one^ tang of sound mind, conKknufr 
Ka ouz to vtffite scarce natural resource*. 

For uKraflttpWho learn a hearing system 
on fall dnflAE the honest dsjn or wooer? 
Or a ’tar engine running 24 hours «. day, cten 
when ft’s parked? 

But aitfatfUBh tfl been no deliberate act 
of global vandalism, industry for decades has 

bran deriving chc power it needs from ihe 
fuel it bums btn in the process has been 
allowing $0% of it to go up m smoke. 

In economic terms alone it isn't very 


teo&iblc, md in terms or wastage it’s 
alarming, in terms of global damage, it’s 
positively frightening.. 

That's why, in die UR for example, BP 

Encigy i& already cunrcrnug iniiuvr;. :«■ the 
benefits of Combined Heat and Power 

Zr’s d system which harae^e* ihc hr at 
dut industry traditxujiaJlr alLv* rv escape, 
prcvxdmg a valuable source of beanos ^nJ 
useable steam fur the y ate burning At 
fuel m the fira place. 

It's not only a clever case i»f gening 
your own back. Ii also helps cum cm global 
warming into a more local version. 

A case of BP helping I he world to 
help itself. 

e 1997 ATAT 


CL. *■ . . "i ■ 

PAGE 22 



Alomar’s Blast Lifts 

Indians Over Yanks 

Ripken Gets His 500 th Double 

The Assttruunl Press 

Sandy Alomar hit a three-run home 
run and Brian Anderson pitched seven 
strong innings Sunday as the Indians 
beat the New York Yankees, 5-2, in 

Cleveland took the final two games of 
the series, but is just 4- 1 3 at Jacobs Field , 
against the Yankees since the ballpark 
opened in 1995. 

Following singles by Julio Franco 
and Manny Ramirez, Alomar hit the 
first pitch from David Wells (8-4) into 
the left-field bleachers to give Cleve- 

land a 4-0 lead in the fourth inning. 
Alomar, who extended his career-high 
hitting streak to 21 games with a 
second-inning single, is batting 373- 

Anderson (2- 1 ) made his third start 
since being recalled June 1 1 from Class 
AAA Buffalo, where he was. 4-0. He 
allowed two runs and seven hits. Paul 
Assenmacher and Mike Jackson each 
pitched one inning of relief with Jack- 
son getting his eighth save. 

New York scored twice in the fifth 
after loading the bases with none out on 
consecutive singles by Charlie Hayes, 
Mariano Duncan and Chad Curtis. 
Hayes scored on a sacrifice fly by Derek 
Jeter and Duncan scored on a bloop 
single by Pat Kelly. 

Orioles 5, Blue Jays 2 Cal Ripken hit 
the 500th and 501st doubles of his ca- 
reer and drove in two runs as visiting 
Baltimore beat Toronto. Jeffrey Ham- 
monds had a two-run homer and Brady 
Anderson bad three hits and scored 
twice for the Orioles. 

Ripken moved past Goose Goslin into 
3 1 st place on tbe career doubles List. He 
bit a run scoring double in tbe first inning 
and scored on a single by B J. Surhoff. . 

Anderson led off the sixth with an 
infield single. Two outs later, Ripken 
doubled into the left-field comer for a 3- 
2 lead. Suihoff singled off Paul Spol- 
jaric with two outs in the seventh and 
Hammonds hit his eighth home run. 

Scott Kamieniecki (6-3 ) gave up two 
runs and seven hits in six innings. He 
struck out four and walked two. Randy 
Myers pitched the ninth for his major 
league-leading 25th save. Myers has 
299 saves, ninth on the career list. 

Red Sox 2 , Tigers t Brian Johnson was 
thrown out at the plate for the final out 
on a perfect relay by Boston as the Red 
Sox held on for a 2-1 victory over host 
Detroit Tom Gordon (5-6) pitched sev- 
en solid innings as the Red Sox salvaged 
the finale of a three-game series. 

Willie Blair (4-4) didn't allow a run- 
ner through the first four innings but left 
with two outs in the seventh after giving 
up two runs and five hits. 

In games Saturday : 

Expos 4, Marlins a Vladimir Guerrero 
and Henry Rodriguez homered, and Jeff 
Juden won his third consecutive start as 
Montreal beat Florida, for its 12th vic- 
tory in 14 games. 

Astras 7, Cubs 3 Tim Bogar hit three 
doubles and Houston chased Frank 
Castillo after just four outs, sending 
visiting Chicago to its fourth consec- 
utive lOSS- 

JLuis Gonzalez went 0-for-3 with a 
walk in the seventh, stopping his bitting 

streak at 23 gomes. Chris Holt (7-5) 
allowed three runs and five hits in 6!A 
innings. Castillo (4-9) Lasted 35 pitches, 
allowing five runs apd seven hits. 

Mots 3, Pirates 2 In New York. Butch 
Huskey , Carlos Baerga and Todd Hund- 
ley combined on a spectacular play at 
the plate to prevent the tying run from 
scoring in the ninth. 

Edgardo Alfonzo erased a 2-1 deficit 
with a two run homer off Marc Wilkins 
(5-1) with two outs in the eighth. But 
Pittsburgh, which lost its fifth straight, 
nearly came back in die ninth when Kev- 
in Folcovich tried to score on Jose Guil- 
len's double into the left-field comer. 

Huskey overthrew the cutoff man, 
shortstop Edgardo Alfonzo. Baerga, the 
second baseman, was backing up and 
caught Huskey's throw, relaying a per- 
fect strike to the plate, preserving Greg 
McMichael’s third save. Dave Mlicki (4- 
5) won his third consecutive decision. 

Dodgers ii y Giants 0 In San Fran- 
cisco, Tom Candiotti (4-2) allowed four 
hits in seven innings in his first 2997 
start, and Raul Mondesi drove in three 
runs and scored three times. Darren 

If. • '.J 11 j j I: I I • ltd! r-lY- IK 

The Sparks 1 Mwadi Mabika, left, and the Liberty's Kisha Ford chasing the ball in the WNBA s inaugural game. 

Dreifort pitched two innings to com- 
plete the five- hitter. 

Cardinals 6, Rads 2 Royce Clayton 
drove in two runs as host Sl Louis 
stopped a five-game losing streak. Todd 
Stottlemyre (5-5) won for the first time 
in four starts, giving up two runs and 
eight hits in six-plus innings. St. Louis 
scored five times off Dave Burba (4-7), 
who lasted just 3'A innings. 

Bravos 9, PfifliiesS Andrew Jones be- 

Historic Tip- Off for Womens Sport 

Lai Angeles Tims Service 

I NGLEWOOD. California — Sparta 
were flying at the Los Angeles For- 
um. On a sunny, summer afternoon, 
14,284 fans came inside to watch a pro- 

Vantage Point/B ill Plaschkk 

came the first player to homer into the fessional basketball game featuring fast 


~ mm H 


r- u 

i -.yte 

Kimberly Agcnrc Francc-Pre*c 

The Indians 1 Orel Hershiser hurl- 
ing a pitch against the Yankees. 

upper deck in center field at Veterans 
Stadium since Mike Schmidt did it in 
1975, and visiting Atlanta beat Phil- 
adelphia to hand the Phillies their sev- 
enth straight loss. 

Rockies 9, Padr es 4 Andres Galarraga 
had four hits, including a two-run 
homer, and Larry Walker also homered 
as Colorado defeated host San Diego. 

Indians 13, Yankees 4 Manny 
Ramirez led a rejuvenated Cleveland 
offense with four hits, including a grand 
slam and career-high six RBLs as the 
Indians beat the visiting Yankees, 1 34-, 
ending New York’s seven-game win- 
ning streak at Jacobs Field. 

Orioles 5, Blue Jays 1 B.J. Surhoff S 
two-out, bases -loaded single in the 
eighth broke Baltimore’s siring of 25 
consecutive scoreless innings and 
sparked the Orioles to a 5-1 victory over 
the host Blue Jays. 

Tigers is, Red Sox 4 Tony Clark 
homered and drove in a career-high five 
runs, leading host Detroit past Boston in 
a rain-delayed game. 

Damion Easley and Travis Fryman 
hit consecutive homers in a five-run 
second inning. The Tigers broke open 
die game with four runs in the sixth for a 
10-2 lead and added five more in the 

Mariners 15, Rangers 8 Jay Buhner 
homered and drove in five runs, and 
visiting Seattle scored nine times in the 
seventh to beat Texas. 

Buhner, who hit a three-run homer in 
the first, ignited the Mariners' biggest 
inning of the season with a two-run 
single off Ed Vos berg (1-2) for an 8-7 
lead. Texas had taken a 7-5 lead in the 
sixth off Mike Maddux (1-0) on a run- 
scoring double by Juan Gonzalez, who 
spent die night in a hospital after being 
tut in the helmet with a pitch the pre- 
vious day, and an RBI groundout by 
Dean Palmer. 

White Sox 5, Twins 3 James Baldwin, 
Tony Castillo and Roberto Hernandez 
combined on a five-hitter as host Chica- 
go defeated Minnesota. 

Baldwin (4-8), wbo already has lost 
two more games than be did during his 
fine 1-996 rookie season, allowed four 
hits in 616 innings. Rich Robertson (7-4) 
was the loser. 

Chris Snopek keyed a three-run third 
inning for Chicago with a two-run 

Angsts 5, Athletics 3 Tony Phillips 
struck out with two outs in the seventh 
inning but reached on an error, then 
scored the go-ahead run on Dave 
Hollins's double as host Anaheim beat 

Jason Giambi went 2-for-4 and ex- 
tended his hitting streak to 24 games, 
tying the Oakland record set by Carney 
Lansford in 1984. 

Rich DeLucia (5-2) was the winner in 
relief. Ariel Prieto (5-5), who was vic- 
timized by catcher George Williams ’s 
throwing error trying to throw out Phil- 
lips, was the loser. 

breaks, floor bums and fearlessness. 

A game played entirely by women. 

When layers of multicolored confetti 
settled on the court after the New York 
Liberty's 67-57 victory over the Los 
Angeles Sparks on Saturday in die in- 
augural game of the new Women's Na- 
tional Basketball Association, it was clear 
that this league is about many things, 
basketball being only one of them. 

This is about Jaime McMillen, a 15- 
year-old in baggy gym shorts and T-shirt, 
shooting baskets in die Forum parking 
lot. McMillen, from nearby Torrance, 
has long dreamed of a career in bas- 
ketball. Finally that dream has a shape, a 

“This is my opportunity," she said. 
"This is my future.” 

on a fast break. She grabbed a pass, 
stuck the smaller-than-regularion 
brown -and -white ball in her palm, 
leaped toward the hoop as the crowd 
roared and ... missed- Didn't jump high 
enough. The ball clanked against the rim 
and fell off. 

But it didn't matter. 

If you go to one of these games to see 
dunks, you’re wasting your time, You 
come here to see — on a good day, 
anyway — crisp passing and old-fash- 
ioned offensive plays and traditional 
zone defense. 

“This can’t be another version of the 
man's game, it has to be the woman’s 
game; that is what has become so pop- 
ular on the college level,” said 
Gobrecht, referring to the sold-out wom- 
en's national championship Final Foot 
each year. 

This is about the first two people to 




a Sparks' guard, Jamila 
for her autograph before the 
game. Two little boys. “That brought a 
smile to my face,” Wideman said. 

As it would to anyone wbo has ever 
wondered where sexism begins, and how 
it can end. "This game is probably more 
important for boys to see,” said Chris 
Gobrecht, the new University of South- 
ern California women's coach who 
brought her young daughter and son to 
tbe game. "This is a good start to chan- 
ging their perception of women, to see 
them in athletic, powerful roles.” 

For the first time, a women's sports 
league is being supported by a major 
men 's sport organization — the National 
Basketball Association. 

For die first time, a woman's league 
has major sponsors and a television con- 
tract that will include about three na- 
tional telecasts a week during its 28- 
game summer season. "It’s hard to ima- 
gine that any more can be done than what 
we are doing,” said VaL Ackerman, the 
league's president 

This is not tbe only women's league 
trying to capitalize on the momentum of 

T HE SPARKS' Tamecka Dixon 
put it another way. “If you can 
dunk, more power to you,” she 
said. “But the girls' game is to lay it 



Later, Leslie said, "I tried to dunk, 
but my legs weren’t ready.” But “If 
you miss, at least you tried.” 

That same attitude has been adopted 
throughout the league, which opened 
just two days before the 25th an- 
niversary of former President Richard 
Nixon's signing of Title IX. a law that 
has led to increased equality in women's 
sports in the United States. 

Some ideas have worked, others have 
clanked off the rim. 

In advertisements that flooded the 
airways throughout the NBA playoffs, 
the women players proclaimed, “We 
Got Next,” street slang for a team wait- 
ing to enter a playground game. It was 
grammatically incorrect, overused and 
finally put to rest by the Liberty's star, 
Rebecca Lobo, after Saturday's game. 
"I’m glad there was no more worrying 
about ‘We Got NexV " she said. 
“We’re here now.” 

When the players took the floor, they 
were greeted by sights and sounds that 
surprised all veteran basketball observ- 

The crowd was largely women, many 
with young children. 

“One thing 1 have never seen at the 
Forum before, I have never seen so 
many families,” Magic said. 

That was one of only many differ- 
ences on an afternoon when such things 
were embraced. 

When is tbe last time that the final 
minutes of a sports event were punc- 
tuated by an announcement that players 
would be signing autographs on the 
floor? When is the last time the Forum 
scoreboard showed commercials during 
time-outs that featured pleas for more 
women policeman? 

That future star. 15-year-old McMil- 
len, was asked what excited her most 
about watching the new league. “I want 
to see women do a guy's job,” she said. 

In NBA Draft, Decisions 

Are Made by Salary Cap 

By Mike Wise 

New York Times Service 

The Chicago Bulls tried a novel ap- 
the 1996 Olympic gold medal in worn- preach with their first-round draft 
en's basketball. The rival American Bas- choice last year. They waived the rights 
ketball League began last year, plays in to the rookie center T ravis Knight. Their 
smaller towns and in the autumn. But thinking seemed to backfire as Knight 
even with better players, it is not ex- developed into a sol id role player for the 
peered to survive in the wake of this Los Angeles Lakers, but there was logic 
summer's national WNBA push. behind the transaction. 

“I think the WNBA will buy that other Why develop and commit three years 
league,” said Magic Johnson, the former of guaranteed money to a player who 
Los Angeles Lakers’ star who was may not help you in the immediate 
among several celebrities at courtside future? Why not parlay that salary and 
Saturday. “I think this league is going to roster spor into helping secure an es- 
be around a long time.” tablished veteran or a ritzy free agent? 

As long as the women don't collapse As Tuesday's National Basketball 
from exhaustion. Association draft approaches, many of 

Despite countless mistakes and poor the general managers and player-’per- 
s hooting, the game was still two hours' sonnei directors are asking themselves 
worth of sprinting, diving, shoving 3nd the same questions. In the year of Tim 
the sort of sideline cheering normally Duncan and Everyone Else, the motives 
found only in the NBA playoffs. are no longer geared solely toward bet- 

All for salaries that range from tering your roster with a young player. 
$ 15,000 to $50,000, which is what many “People may be thinking about get- 
NB A players make per game. ting rid of guaranteed dollars and trying 

Yes, the Sparks' 6-foot-5 inch (1.9 to move in position for a big-time play- 
meter) star Lisa Leslie even tried a slam er," said the Orlando Magic's general 
dunk. Late in the first half, she was alone manager, John Gabriel. ‘ ‘A lot of w hat's 

going on is salary cap-driven for die 


Memorable Moments from Johnnie Walker? C L P with Hmumi (,a!!aciu>r 

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1998 firee-agent year. The philosophy 
that it takes a couple of All Stars to win in 
the league is prevalent. People are chink- 
ing, Why not start planning early?” 

Duncan, the poised and polished cen- 
ter from Wake Forest University, is a 
shoo-in to be selected No. 1 by San 
Antonio. But after Duncan, there are no 


clear-cut impact players. Enter the rook- 
d, which ena 






ie salary cap, which enables players to 
become free agents after three years in 
the league. 

Installed in 1995 as pan of the col- 
lective- bargaining agreement, it will 
spring talented young players for the first 
time next summer, players whom many 
teams ore already starting to make room 
for on their payrolls. As this year's 
draftees prepare for their three-year hitch, 
many teams are holding their breath. 

“it’s a scary circumstance for most 
teams, especially the small market 
teams," said Jeny Reynolds, the Sac- 

ramento Kings’ player-personnel direc- 
: all these 


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Jfriitm i nth ft Summm. Ik^pnnl & Hholntlrt by Ihae F Smith « hlrnttinml HmU TriUu* t ftafn^bpnrt* IWtnrnkp* litL 


:up i 97 


tor. “You have all these guys clearly not 
ready for the game. You have to spend 
more time in development. By the time 
you're done and they go somewhere 
else, you almost feel like the colleges 
themselves. You got diem ready, all 
right. But not for your team.” 

Most league officials are character- 

izing the draft as deep in talent but very 
shallow in future superstars. As evi- 
dence, Milwaukee, Vancouver and 
Toronto, all teams with substantial 
need, have shown' interest in moving 
down in the draft. 

“You can get the same guy at 16 
that's available at 10,” said Gabriel. 
“This draft is deep, but it's not very solid 
beyond 5 and 6. The guy at 22 may not be 
much worse than the guy at 12.” 

Most league officials also agree that 
the underclassmen issue is no longer 
worth complaining about. It is the rule 
rather than the exception. Forty-seven 
players yet to reach their senior year 
applied for the draft this season. Al- 
though seven withdrew late last week, 
six have a legitimate shot at being se- 
lected in the top 10. 

Among them are the 6-foot- 11 -inch 
(2 meter) center Tony Battie from Texas 
Tech and the Colorado point guard 
Chauncey Billups, both or whom are 
almost certain to go in the first five 
picks. Of the 4 1 players who applied for 
early entry last season. 7 withdrew be- 
fore the draft and 15 were not selected. 

"It's a bad trend. I'd like to see 
everyone stay for four years.” said the 
New York Knicks' team president and 
general manager, Ernie Grunfeld. 
“They’re emotionally and physically at 
a more developed stage. It’s just better 
for the pro teams and everyone in- 
volved. At the same time, some of these 
players have responsibilities to their 
families. It's reality now.” 

Tracy McCrady could go as high as 
No. 6. Less than a month removed from 
his senior prom at Mount Zion Christian 
Academy in Durham. North Carolina, he 
signed a $12 million endorsement deal 
with Adidas last week. That’s S7 million 
more than Last year’s No. 6 pick. Antoine 
Walker, will make in salary for his first 
three years with the Boston Celtics. 

Duncan would be the first senior to go 
No. 1 since Larry Johnson in 1993. 
Keith Van Horn of Utah and Antonio 
Daniels of Bowling Green, both seniors, 
are also fop-five candidates.. A senior 
n0 * picked until No.8 last year. 

“Why can't Ron Mercer be as good 
as Antonio McDyess?” asked John 
Nash, the New Jersey Nets' player-per- 
sonnel director, referring to the Uni- 
versity of Kentucky forward who will 
enter the draft this year and the Denver 
Nuggets star. "You'll see a major star 
m Duncan eventually. But I don’t know 
about rhe rest. You might find one at 22 
instead of 6 and 7." 

Bruins T; 

6 Big Bird’ 

The Aiwr tautl Prra . 

PITTSBURGH — The Boston 

ins don't envision Joe Thornton itapr 
other Wayne Gretzky, even if the 
year-old threatened some of the Cheat 
One’s junior scoring records 

They ’ll be perfectly satisfied if the 
they chose whh 

player drey chose whh the NHL's sap 
draft pick Saturday turns canto be £ 
other Eric Lindros, a physical presence 
with a deft scoring touch who revives*, 
struggling franchise. * 

Thornton, whose nickname is Big 
Bird but perhaps now should be Bit' 

Hope, won’t be 18 until next month, but 

still expects io be wearing the Bruins' 
No. 6 jersey in October. 

‘Til go back to juniors if they warn 
me to, but I want to play in the NHL, 
said Thorcuon, who stood out at die draft- 
held at the Pittsburgh Civic Arena, be-’ 
cause of his 6*foot-4 1 1 .93 meter) frame 
and curly blond hair. 

Thornton, so clearly the top player in’ 
a talent-deep draft dial the Bruins kfcn-* 
lifted him as their choice weeks ago, has' 
been rated as die best player available- 
since Alexandre Daigle in 1993 — and. 
before that, Lindros m 1991. 

Tbe NHL's scouting director, Frank' 
Bonello, called Thornton “a franchise 
player, a complete player at 17, if tbenrf 
is such a thing.” 

Thornton joined Pierre Turgeon as 
the only 17-y ear-old selected No. Land* 
did so on a day filled with firsts. 

Roberto Luongo, chosen fourth by 
the New York Islanders, went higher 
than any goal tender since the draft 
began in 1969. And the winger Michel. 
Risen became the first Swiss- bom first- 
rounder when Edmonton took him with 
the 14th pick. 

There were first rounders drafted 
from a record seven countries: Canada,- 
tbe United States, Finland, Slovakia.. 
Russia, Switzerland and Sweden. 

“My goal my entire life has been to 
play in the NHL,” said Thornton, who- 
played street hockey in Sr. Thomas.) 
Ontario, with his two older brothers'- 
while still wearing diapers. “Bui there's 
no pressure on me — yet I haven't even 
stepped in the Fleet Center yet.' ' 

Once he does, the expectations may! 
be higher for Thornton than any Bruins- 
player since Bobby Orr. Coming off' 
their worst season in 30 years, the Bru- 
ins need help. They could get it not only 
from Thornton, who had 71 goals and 
127 assists in two seasons for Gretzky's 
old junior team, the Sauk Ste. Marie 
Greyhounds, but the player known as- 
the Russian Gretzky. 

The Bruins used the No. 8 pick over- 
all on an 18-year-old wing, Sergei Sam- 
sonov, the top scorer for die IHL cham-, 
pion Detroit Vipers and perhaps the best- 
offensive player available except for 

“I can understand the allure of a guy! 
who is 6-4," said the Vipers' general 
manager, Rick Dudley. “But it is in-', 
conceivable than anyone has more tal- 
ent than Sergei.” ■ 

Samsonov first stepped on the ice. 
with NHL-caliber players at 15 and- 
might have gone higher in the draft if it,' 
were not for his size: at 5-S 1 ^, he is seven 
inches shorter than Thornton. Sam-; 
sonov first attracted NHL attention! 
when he piled up 46 goals and 83 points* 
in 24 games during a Russian junior, 
team tour of America. 

The shoot-out begins in The Bruins'' 
.camp in less than two months. “Train- 
ing camp, that will be the big test,” said; 
Thornton, whose dirty blond hair soon 
may be as recognizable around the NHL; 
as Jaromir Jagr’s shoulder-length" 

And Luongo must play with the no-; 
toriety of being the highest-drafted 
goal tender ever. Until Saturday, only 
three goalies had gone as high as fifths 
Ray Marriniuk (Montreal, 1970); John 
Davidson (St. Louis, 1973) and Tom 
Barrasso (Buffalo. 1983). 

“I think I have great style and great 
technique, sothar is to my advantage,” 
said the 1 8-year-old Luongo, who had a 
lower goals-against average in the high- 
scoring Quebec Major Junior League 
than either Patrick Roy or Mardn 

"But I’m not going to put any pres- 
sure on myself. When I play hockey 1 
have fun, so this is not any pressure.” 

The San Jose Sharks followed the 

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NHL scouring ra rings and chose the 
Seattle Thunderbirds’ forward Patrick 

4 e Open de 

Marleau with the No. 2 pick overall. The 
center- wing OUi Jokinen of Finland, the 
top-rated European player, weni to the 
Los Angeles Kings with the third 

After choosing Luongo. the Islanders 
also had the fifth pick and used it on a 
defenseman, Eric Brewer 

11 ' !•: from the 

•- 'ft nrtnry fttf HtfbiM KftlU 
"■ ' *f ' ft* duriflft ftr i* 

M-inr •! aurr 

• •: >. 42^ mngsfs.r i 

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Gene P**MrO* Aw.** 11 Pto “ *4. 

Joe Thornton after the Boston Bru- * 
ins picked him in the NHL draft* 





uio S | 

^Feisty Argentina 

T.:! Falk to Pena 2-1 


RAGE 23 

ft \ SANTA CRUZ, Bolivia, Sted^TavS? 5^° «“ 

\h\ playS «q*ncd and wasT SdSlEt 
U 1 wived in a mass brawl on its repeat SIS taa l° ma 
H last visit to Bolivia loss than dE? Performance Satur- 

three months ago, was the The fioh* *§,.* . . 

pot^onWmMmaiei chaotic 

far^2 J 3 s ® ! 

The Argentines had three afrv whJ^h° awar ^ a peo - 

fiTiS? 1- S *^ ?l,y “ Ma ™>„ C3aSb’ DVened ^ 

. they suffered a surpmutsM GahartVS^hedtothe 

■ to retrieve the ball and eer 
v '/ Co>* America the game restarted quickly, 

■ ’ quarterfinal defeat to Pen. 

• >. after once agaia getting into a at theamte teTte “ 

; , ^ Daniel Passarella, &»£*[£££ 

to have become incapable of minntes an / jS h l g£f 

• H “ C ^S * WBhout knio and Eduardo b«£o 

gemog into trouble. being given red carts 

• ■ Its previous defeat had Shortly aftexwSdT >. ta 

■ vv been fa April’s Wortd Cup one of 

•-•"-r W^Ba re La Paz when £ in La Paz h. AprilT^S 
lost 2-1 to Bolivia. pelled. F ^ ^ ““ 

'" r 1 9? ° CCaS * 0 n l^ vo Argentina was outplayed 

genunes were sent off, goa i- for Jong periods by 

' r - fffK *?* 00 Gonzalez Eddie Cairazas puTp^ 
hea^M^ an opponent and ahead after half an hburwSI! 
tC 3 K 1 die ball was passed to him by 

' - W S a b ? wl * at ^ 311 ArgentinaV^andM^- 

.. quart r»hce retervahon. fin Hidalgo finished off 

FIFA, the world sower bghtfiil move with a Jow drive 
- ■- . federation, suspended in the 62d minute. 


. 'i. i.-. s ■ ■ P - . : _ . .. 

$ Sport 


T . • • 

* V 

y tap 

atrne same time. The two 
began poshing, other players 
amved and a brawl ensued 

Late Surge Lifts British Lions 

Australian Substitute Scores Twice to Beat France 

Bolivia also reached die 
semifinals. It beat Colombia, 
2-1, in La Paz. 

Colombia had played Brazil 
at sea level in the first round 
less than 48 hours earlier and 
arrived in La Paz only two 
hoars before the start to try and 

Urisikiro p^pii/ 4p-tirr Itjiht- FVsm- 

sbot by Ai^entina’s Marcelo Delgado. 

reduce the effects of altitude. 
But it fell behind in three 
minutes, when Marco 
Etcheverry scored from a free 
kick. Erwin Sanchez increased 
the lead 20 minutes later with a 
shot that bounced under the 
arms of Farid Mondragon, the 

1 w. 



Herman Gaviria pulled a 
second-half goal back for 
Colombia, but the highlight 
wasprovided by Bolivia's Ju- 
lio Cesar BaJdivieso, who hit 
the crossbar from near the 
halfway line. 


The British Lions rugby team withstood a 
South African onslaught for more than an 
hour before scoring two tries in the last eight 
minutes to win the first test, 25-16, in Cape 

Scrum-half Man Dawson scored the first 
late try on Saturday , scampering in untouched 
after picking the bail up from a scrum on 
South Africa's 22-meter (25-yard) line. A 
wing, Alan Tail, scored the second to seal the 

“This was probably the best victory I have 
ever played in,” said' Toit. who has the dis- 

Ruaiv Union Roundup 

traction of being the first man to play rugby 
league and ru«by union for the British Lions. 

Gaiy.Teiscnmann, die South African cap- 
tain. said: “What bothered me was that we 
spent long periods in their half but the points 
didn't come. 1 ' 

The Lions trailed the Springboks, 16-15, 
when Dawson broke away, faked a pass and 
kept going as four defenders went for the fake. 
South Africa responded with increasingly 
desperate attacking moves, but it was the 
Lions who scored again. 

In the first half. Os du Randt, the huge 
South African prop, had bulled over for a try. 
But the Lions* lea. 9-8, at halftime thanks to 
three penalty kicks by Neil Jenkins. 

Teichmann brushed off on attempted tackle 
by Scott Gibbs to set up a try for a replacement 
back, Russell Bennett, who raced over in the 
lefthand comer. But South Africa was unable 
to tum territorial superiority into a match- 
winning lead. 

Australia 29, Prance 15 In Sydney, Mitch 
Hardy scored two cries in a brief but mem- 
orable lest debut to give Australia a victory 
over France. 

The winger came on for 12 minutes in the 
second half as a temporaiy replacement for a 
full-back, Stephen Larkham. and transformed 
the match. 

Hardy was called onto the Wallabv squad 
just a week ago as a replacement "for the 
injured fullback. Matthew Burke. Hardy's 
two tries in the space of three minutes broke a 
15-15 deadlock. 

But immediately after he scored his second 
tty. Hardy was taken off the field by the 
Wallaby’s coach. Greg Smith, since Larkham 
had been treated for a facial cut and wanted to 

Both sides scored two tries each, and John 
Eales, Australia's captain and lock forward, 
kicked 19 points. 

Hardy scored his first try when he took a 
short pass from scrum-half George Gregan 
before beating two defenders and diving over 
near the posts in the 6 Sth minute. Three 
minutes later, he used his soccer skills to kick 
the ball forward off the ground after a break- 
away by the right-wing, Ben Tune. Hardy beat 
the French defenders in a race to the ball and 
touched down with his fingertips. 

France scored one tty in each half, thanks to 
scintillating breakaways from the wineer 
Philippe Bemat-Salies and the center Thomas 

New Zeeland 93, Argentina 8 In Wellington, 
New Zealand gave a brilliant display of 
passing to obliterate Argentina in the first test. 
The All Blacks ran in seven tries in the first 
half and another seven in the second half. 


Mjmob League Standi nos 

W L Pet. CB 

.■"“BoAnont fJ 72 j6S\ ~ 

- New Yoft 40 31 K3 8 

Tonoto 33 35 .485 1314 

-liMMoft 33 37 AU 15 

BcsMI 31 iO X37 17 


~ -Oewtaad 35 33 S39 

bootee 34 34 J00 3 

, Kansas Or 33 35 .485 3 

Qtcago 33 37 471 4 

Mhnesofc 33 38 465 4M 


-SeflB 41 31 369 - 

/An&ekn 37 34 .531 3fc 

Tans 36 34 .514 4 

■ -JMttnd 30 44 405 12 


w L Pet GB 

Undo 46 26 439 - 

Fbrida 43 29 JPl 3» 

Montreal 41 30 j577 4'A 

veevom 40 33 JS56 6 

22 48 314 23 


'toe** 36 37 493 — 

Vttdmgti 33 39 458 2 M 

St Louts 32 39 451 3 

Orchratt 30 41 423 5 

/Otago 28 44 .389 7U 


_ian FrdcUcb - 41 -- 3) - .569 — . 

.Aten* -39 34 434 VA 

'jm Angeles 36 36 400 5 

SmOteas 30 42 417 11 

--Basie on 810 080-6 10 1 

\ OM M2 210 211-12 16 1 

WoMML Bnamabvig O), Hudson M), 
-Stocorefc (5L Wmdin (7) end Hntlebaw 
. ^lu-Tbompiav Sage (6) and Casanova 
#-Ju.1taBps» 7-5. L-Wakefield 2-7. 
<*-Soger OX HRs-DetnA Kevin G), 

towYWr' no 010 001-7 12 1 

ame nd 00) 000 000—1 5 1 

Gooden, Nelson C7X Mendoza (9] and 
- -toadQ Nagy, Mesa TO, Mormon {7). A. 
«■ R. MJodmn (9) and Borden. 
*-&»dav 20. L-Nogy, W. HR-New 
: T. Martinez C2Z. 

010 000 000-0 6 1 

' in m ioo-3 to o 

: r.Mtndna TeJtaffimn (7). WBs (8) and 
. WHtecHenJgencM)dC>BfteaW^enloefL 
‘ AL-JtawfrWrSi 


W 0 tio 100—2 5 0 
010 000 000—1 3 1 
and C_ Johnson PJJUarHnsf 
ond WWger. Yi—A. Fernande z . 7-6. l^-p. 

HR-flortdo, C Johnson («. 
5,*"* 11 . M0 DM 000—4 8 0 

000 000 001—1 7 2 
Gtorinft and EddPerec JVLLetav 
Ptadwilwg (S3, Gomes CB) and Lieberthal. 
W-Ctavtafk 7-4. L-*L Left* 4-8. 
rnrshargh 000 000 rrlji a i 

NowYer* 000 001 00 x -1 9 1 

S"** 1 ^ m and 

Kendcfe BJJom JoJ=ima C9) end 
A Cosftfla Huodfey (0), W — B. J Jones, 12-3. 
L— CooIqb, M. Sv— JoLFnmaw (18). 

« 001 001-4 9 1 
St Loan 000 ZOO BOO— S 7 j 

Monte 1 , 5ufl*an (7), Shaw C9) and J. 
Ww Mcrris, PetfcoKefc (7), Fawws (7X 
Edcersiey ( 9 ) and LampkJn. w— MenJkK 5- 
S. L Morris, 5 , 4 . Sv — Show (131 
HRs— Cincinnati D. Sanders {3X Reese £25." 
0*2190 021 000 100-3 9 ] 

Houston 114 ]00 Ote-7 13 0 

Tracteel BottenflMd C3X WendeO C 6 X 
Rofas (83 and Senmis.- Kflw Lima (ffi and 
Eusetda. Ausmus <81. W — Kite, 8 - 3 . 
L-Trodael 6 A HRs — CNcaga Orta (33. 
Houston. BagweU £21), D&Bdi (3 3. 

Colorado 000 200 BOO— 2 9 0 

Son Keg# OM 101 B3»-j 11 1 

Buflu, S. Read (7). MJHmaz CB, DcJeaa 
( 8 ), Dfpoto CB) and JeJ?e«t Ashby, Hoffnun 
(93 and noberty, C Hemamtaz [ 9 ). 
W— Artbn, 3-3. L— M. Munoz, 1 - 2 . 
5v— Hofliaun (17). HRs— Cdorodo, K. Perez 
(1). San Dtoga, S. PWey (B. 

Lbs An g ele s 043 000 000 4—11 13 0 
SmFnsKfsco 000 0 Z 2 111 0-7 11 0 
LVaUeSv Radtnsfcy ( 6 ), Hog (BkOsuna CB, 
To.Wanefl (93, Guthrie ( 10 } and Plans 
O-Fenxmdaz, Rna (33, Tavw ( 8 ), 
RJtodriow (93. O. Henry OOX Poole ( 10 } 
and Banyhfl, R. WBUns (9X Jensen (103. 
W— To.Worofl, l-l. L 1 — O. Henry, 2-1 
HRs— Los Angeles, K. Gceda flX Gagne «). 
San Fnmdsca Bonds 2 (15X MJjewb (53, 
Snow (53. 

Ropo, PoowO (73 and Zourv Judea U rhino 
(8) and Widow. W- Judea 8-2. L— Hopp, 4 - 
4 5 u— Urbina 03). HRs — Florida 
Dunwopdy C8. Montreal H. Rodriguez ( 151 , 
V. Guerrero GO. 

ChkeooOUJ oil ON 100-3 4 0 

Hoostoe 231 000 ife — 7 12 I 

PCastOta, BoflenfieW CD, R.To1te (4). 
Pallotson (73, T .Adams (0) and M_ Hubbard; 
Holt Magnarde (7) and Ausmus. W— Hod. 7 - 
5. L— F. CasNa 69. 

PBtobmob 001 ON 010-2 8 8 

New York (NL) 010 000 OCte -3 6 0 

Sdirahtt, M. WSUns (B and Ostt; MZdcL 
MdWehoel (9) and Hundley. W— MUdd 4-5. 
*£*■ WMctatB. 5-1. Sv—McMfchad (3). 
HRs — New York, AHonzo (5), HunWey (16). 
Los Aageles OH 203 040-11 15 0 

SanFraedsa 000 OH 000-0 5 3 

QmdMfl, Dreifort (8} and Piazza Prin ce 
(83; WmLamflngiMia Poole (W, R. 
RaAtguez (8), Tavarzz (9) and R. WIBitas. 
Jenswi . (81- W-Candtattl 4-z 

L— VanLundlnuftara 4-5. 

AMoafa 210 122 010-9 10 I 

PHtaMpbio *30 130 110-0 14 0 

Neagfe. donb (53, Bldedd (63, Borawskl 
(8X Embree (8X Wbhhss (83 and EdrtPerez; 

Beech, Blazier ( 6 X R. Hants ( 6 L Spradlin ( 73 , 

Botla Boo (8] and Ueberthd. W-Cbatz, 3-1. 
L— BtaHen o-l. Sv— Wohfeis 053. 

HRs— Aflanin, A. Jones (53, EdiPerez ox 
Graftrtno (I). Phflodelphla Lieberthal (10). 
Ctadaafl ON 101 000-2 9 0 

SLLofls 112 IN Six— 4 11 0 

Burba Suttvim (4X Cotosco ( 53 , 
FaRodrtguez (7X Belndo O) and J. Olives 
Stottlemyre, Possas (7), T. J -Mathews (ffl, 
Frascatore (93 and Lonuzkbv 
W-Stotfterayia 5-5. L — Burba 4-7. 

HR— CtadnnaA W.Greene (10). 

Colorado 102 020 022 — 9 16 I 

Son Diego ON ON 101 — 4 8 2 

Rotor, S. Reed (6X BJhiffin (7). DeJean 
GBX . MJUuncz (8), Leskanic (9) and 
Manenrina; Bagmaa P. SnNtti m. 
Batchrtar (9) and Ftahorty. W— Rekoc i-a 
L— Bergmaa 1-2. HRs-Cokunda EcYoung 
M, L Water (21), Gakuiaga (31). San 
Diega Oantaora £31. 


England: 77 
Aushalla: 213-7 


German Opeh 

HwiMte Sunday tram Si .14 mOfion Vbho 
Gflmun Opan herfd af 6.283 raster (6JSO 
fKdm) p»71 ScMoaa Mpponburg Golf 

Ignodo Gorrida Spate 65-47-67-72-271 

Russel Ctaydoa Eng. 68-69^72^-275 

M«t JameSi England 68-67-69-72-^276 

Bernhard Laigeo Ger. 7069-69 69 J77 

R. GieaL AusMta 71-66-71-69—277 

Eduardo famra Arg. 67-67-73-70—277 

P. Hcmgsniit Norway 70^68-71—277 

7068-70-70— 27B 


Solomon tel«sid&le ToMti 1 
™ UL itamnnow AusfraUa 1? points; 
Sotamon Islands^ TaWUl. 


Ffl1» Papua New Guinea 0 
HIUL studiv«qse New Zealand points 
9s Ffl 6; Papua New Gutaaa 1 
Austmfia med New Zoakmd In Oasaria 
ployaff final In Jane and July, 

Hefcules 1 Athlete de Bilbao 2 
Hoyo Vallecano 1 . Barcelona 7 
Oviedo a Sporting de G^on 0 
Rodng de Santoder 1. Sevilkxi 
Real 5odedad Z Logiones l 
Zaragoza 1, Compostela 3 

Peru Z Aigentlna \ 
BoMaZCotombla 1 

Brtan Davfa, Engtend i 
Aloe Carta, Germany. t 
Sam Tovranca Scot 2 

Bony Lon* Engtend i 


LBKfing Aral scorn Sunday to 100 nOon 
yen (5880,000) Yoraiuri Open on GjB7-yard 
(*J«*Hnw*erX par-71 YOmluri Country Club 
courao m Haftinamlya: 

5. NUmrynma Jap. 67-68-66-66—267 

N.^Joe^OzoW, Jap. 69-696665— 269 

F. Minora, PfMtepfnes 71676667^-271 

Brandt Jobev U^. 71686567 — 271 

Tom Suzuki Jon 
Cate Franca Parag. 
SotesW HteashUap. 
Y. MbmakL Jap. 
Beta WattaU^. 

M. Kowamuia Jap. 

67- 686666— 267 
69696665— 26(9 
71676667— 271 
71686567— 271 
70-716667— 274 
68686969— 274 
72676669— 274 

68- 7265-70-275 

Angola 1. Ghana 0 

mwwflfc Zteibabwe4potaris;GlMM 
4; Angola 3. 


MamanL Egypt 0 




Kenya a Namtela i 


Tanzania 1, Togo 0 
Ubeiia 2< Repufafic o< Congo 1 

Midawt 1 Mauritius 2 
Maramblqve Z Zambia 2 
RWWHW Malawi 9 points Zambia 8; 

Mozambique * MavrtNm 1 . 

Emmen 4, RKC Waahvfpc 5 
Zwolle 1, ADO den Hoag 1 
RNU STAMMHoae RKC Wbtfwqfc 15 
pointer Zwofie 10? Emmen 7; Den Hong 2. 

Canbuur Ueuwonten a NEC Nijmegen 4 
Go Abend E ogles Deventer Si VW Venlo 1 
points Go Ahead Eagles Demder l Ss Cam. 
buur Leeuwaidra A' VW Verdo a 
RKC Woalwflfcand NEC Nfriegen wil ptey 
in EMtfi 1st dlvhJon next season. 

Sugtynma, Japan 6-2. 6-7 (861. 66 
Natasha Zvereva Belarus def. Nattiobe 
Tauzim Franca 6-4 5-7, 64 
Brenda ScbuOz-McCartby (B). Nefticrtand% 
def. Monica Seles (1), ll.S« 7-5. 7-5 
Aronbas Sanchez Vkorto (41. SpoaL del. unto 
SoMea (6L Romania. 6-4 6J. 


Sanchez- VKraia def. Scnultz-McCarihy 7 S, 
6 - 1 . 

Novotna def. Zvereva 6-7 (9-7). 6a 7-S 

Novotna ted Sanchez- Vicono U j. 65. 

Match was abandoned beanne of rate. 


Rusedski def. Kucera 64 7-5 


MllfRlCAH L£AGll£ 

SEATTLE— Put 55 Ain Rodriguez on 16 
day dsabled list reboodhw to June 11 Re- 
adied LHP Greg McCarthy from T acom a 

Tampa Bay 3, San Jose 1 
Colwnbas Z New Yart-New Jersey 1 
Krnisas Qty a Washington D.C 1 

Colorado Z Las Angefes 1 
S T AND iw a m Erafira Copterances DX. 
29 potato New England 21; Tampa Boy 19b 
Columbus 171 NY-NJ 13. Westm Conte 
once: Kansas City 23t Colorado 22; Dallas 14 
San Jose 11; Las Angeles 10L 



Richard Knsiicek (3). Netheilonds. dd. 
Michael Chang 0). US- 76 (7-5L 64 66 . 
GattMme Rooux. France def. Jom& Bjork- 
mm (4). Sweden, 6 -Ot 61. 


Kiapcekdei Room 64 76 ( 9 - 7 ). 


Philadelphia— A cquired C-F Ohio Rodja 
Tram the Boston far C-F Michael Cage and F 
Ctotence Weather spoo n . 


Mlrtain Oiemans. Netherlands ddL Aidte 
Huber (1). Gennany, h 64 mitred. 
RiAGTHtra Dragumlr C3). Ron mva def. Asa 
Cartason (81. Sweden 6462. 


Dmgomir def. Oranans 67, 61 6 - 4 . 

buffalo— Signed DE Marcettus Wiley. 
Detroit— Released CB Robert Baffey and 
S Harry Colon. 

green bay— S igned OB 5trve Bono. Rtb 
signed FB Dorsey Levens. 

Indianapolis— S igned DL Don Foatmia 
NEW enoland— R esigned DL Ate Lane. 
TE John Burke and WRHason Graham. 

Rotsl Bette Z VoOadoOd 0 

EspanyalX Votacia2 

CeBa 4 Real Madrid 0 

Deportvo de la Coruna 1. Extremadura 0 



Jana Novotna (2). Czech RcpobSc del. Ai 

Gneg Rusedski Biftnta dec. Sandan StuOe 
Australia, 64 64 

fCaral Kucera. Slovakia, def. rim Henman (4). 
Britain 64 2-6 64. 

Carolina— T raded 1997 lst-reund draft 
pick to Sot Jase tor 1 997 2nd- round dntff pkk 
and 1 998 amditioniil draft pick. 

Prhiso bum the St. Louis as campensaOon far 
the hlrfag of Lany Pleou i& general mono oe r. 

TAMPA bay— T raded UVShownBuirtoSan 
Jose for 1997 5flh-raund draft pick. Traded G 
Rkk Tcbaracd to Calgary for T9» ritwaund 
draft pidu Named PeterMohovflch scout 


«BOr 3H (20 OH— 5 7 8 
^ total . IN 220 111—7 12 0 

Bddwc Castan (7X R.Veres (8) and 
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28 June, LIVE, The 
S panlah Cup Ffeial 

The Bemabeu hosts the 
clash between Barcelona 
and Betis Sevilla 


23-29 June, LIVE, 

The FIFA under 20 
World Championship 

Brazil, England, Spain and 
Franca are among the 24 
nations who qualified for 
the competition 



• ^ 

4 e Open de Coif Feminin 


A fabulous {day-off victory for Hiromi KOBAYASH1, with AHsou NICHOLAS in second place ends 
two days of suspense during which the two champions alternately had the upper hand. 
Marie- Lanre de LORENZI of France takes the third place on the podium. 

■ ■ 

After a gentle start to play, the English woman and her Japanese opponent launched seriously into battle 
on the seven hole with two birdies. Although Alison NICHOLAS was in the lead throughout this 4th 
round, Hiromi KOBAYASHI (aged 34), with her relentless counter-attacks, never gave her any respite. 
On the 18th hole, in a final assault, the Japanese woman signed a birdie, thus forcing the English woman 
-- into a play-off on hole if 1 8 (par 5. 425 meters): Hiromi KOBAYASHI did not betray any nerves. With a 

great deal of panache, she signed an eagle and landed herself a superb victory. 


^3® Japanese victory greatly illustrates how the Evian Masters, already at the top in Europe, has now 
Jhached an international dimension. A welcome sign for the future ambitions of the tournament's 
;X^ahxrian Fra^ Riboud 

-&wd platings: I (-14) Pfiromi Kobayashi, 2 (-14) Alison Nicholas, 3 (- 8 ) Marie-Laure de Lorenzi, 

. 4 (- 6 ) Joanne Morley, 5 (-5) Carin Hj Koch, Shani Waugh, Amy Alcoa, Charlotta Sorenstam. 



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Charapfem ah ip, Spain 
The 30th European 
Championship bring 
together the cream of 
European Basketball 

29 Jute, IAAF Grand Prbt, 
SbefVMd and Lflle 

AH of Britain’s top athletes 
vriM be in action in Sheffield 
white a top class field is also 
expected in Line 


26 - 28 dune, LIVE, 
The. Dutch Grand Prlx 
Michael Doohan w9l be 
aiming for his sixth 
In seven races 

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PAGE 24 

World Roundup 

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Ignacio Garrido teeing off 
Sunday in the German Open. 

The Son Rises 

golf After three second-place 
finish es in four years, Ignacio 
Garrido of Spain won his first 
tournament Sunday, finishing the 
Volvo Goman Open with a 13- 
under-par 271. 

Garrido, the 25-year-old son of 
the former Ryder Cup player Ant- 
onio Ganido, finished die final 
round with a one-over-par 72. 

Four shots behind was Russell 
Claydon of England, who hit a 
final-round 66 for a 275 total. 
Mark James shot a 72 and finished 
one behind at 276. 

• Ernie Els, the U.S. Open 
champion, stood one round away 
from a second successive victory at 
the Brick Classic after his four- 
under-par 67 Saturday at West- 
chester Country Club. The South 
African had a three-day total of 199 
and a three-stroke lead (Reuters) 

Australia Defies Rain 

Australian opening 
bats man Matthew Elliott hit a 
spectacular century Sunday as 
Australia kept up the pressure on 
England in the second test match 
at Lord’s in London, 

Although only 17.4 overs were 
possible on the fourth day follow- 
ing a series of torrential down- 
pours, Elliott took his total from 55 
to 112 white Australia advanced 
from 131 runs lies' two wickets to 
213 for seven at the close. It leads 
England by 136 with oneday’s play 

remaining . Elliott hir 11 fours in 54 
balls on Sunday. (Reuters) 

Christie Ties, British Win 

Linford Christie’s 
final race for the British team 
ended in a dead heat Sunday in the 
European Cup final in Munich. 
Christie and Greece's Georgios 
Panayiotopoulos crossed the fin- 
ish line together in the 200 meters 
in 20.56 seconds. 

Christie won the 100 Saturday 
and Britain won the men's com- 
petition at the event, which brings 
together Europe’s top eight track 
nations in team competition. Rus- 
sia took the women’s team title. 

Russia's Olga Kuzenkova 
shattered the women's hammer 
throw world record by more than 
11 feet, with a heave of 73.10 
meters (239 feet, 10 inches) to 
smash the 69.58 mark set in March 
by Romania's Melinte Mihaela. 
Mihaela also beat ha old record 

Hardier Alrii-Bua Dies 

Uganda's only 01; 
medalist, John Akii- 


in a Kampala hospital. 

Akii-Bua, a policeman, won the 
400-meter hurdles at the 1972 
Munich Olympics. He died on Fri- 
day, a week after he was admitted 
to hospital with abdominal pains. 
He was 49 and had been ill for 
some time, athletics officials 

Akii-Bua is survived by a wife 
and 11 children. He came from a 
polygamous family, one of 50 
children his father had by nine 
different mothers. (Reuters) 


As Wimbledon Starts, 

After Sampras, Who? 

American Seeks 10th Grand Slam 

By Ian Thomsen 

International Herald Tribune 

WIMBLEDON, England — Pete 
Sampras is the only sa\ 
the 256 gentlemen and ladies entered at 
Wimbledon. No other man has secured 
more than one Grand Slam title in the 
last four and a half years; Sa mp as has 
won eight of them, and when the 
world's greatest tennis tournament 
opens Monday, the 25-year-old Amer- 
ican will be favored to win his 10th 
Grand Slam title overall. 

When was the last time the men’s 
game had such a dominating player 
while the women did not? In the absence 
of Steffi Graf, who is injured and con- 
templating retirement, the impairment 
of Monica Seles, and the interim in 
which 16-year-old Martina Hingis must 
yet prove whether she is her tour’s next 
great player, there is no woman who can 
equal the current run of Sampras. The 
only active woman with a history of 
success at Wimbledon is Conchha Mar- 
tinez, the 1994 champion. She is seeded 
a lowly 10th this year. 

The recent French Open champion, 
Iva Majoli, seeded No. 4, has never won 
a match on Wimbledon’s grass courts — 
juniors, seniors, doubles or singles. 

So it all comes down to No. 1 
Sampras. Everyone else is a mystery, a 
sentimental favorite, an eccentric chal- 
lenger. Even then, Sampras is not with- 
out his doubts. Since winning the U.S. 
and Australian Opens, he has suffered 
through minor injuries and stomach 
bugs and he has lost in recent weeks to 

players who should never have upset 
niTTi- Bl 

But then, Sampras lives the most 
boring life on tour imaginable, seem- 
ingly never leaving his hotel except to 
play matches, and watching bad Euro- 
pean TV in between. Perhaps the bore- 
dom of his preparations has seeped into 
his game. U so, die muffled surround- 
ings of Center Court should start him up 

Can Sampras be guided through sev- 
en of the most dangerous, blasting 
rounds of tennis to win the silver trophy 
for the fourth time in five years? Here 
are the challengers in his path, like 
challengers waiting for him at each tier 
in a video game: 

The Giants: Last year, the 6 foot 1 
inch (1.85 meter) Sampras looked tiny 
and frail across from Richard Krajicek 
of the Netherlands, who is now the 
defending champion and seeded No. 4. 
Sampras will be able to avoid Krajicek, 
No. 2 Goran Ivanisevic of Croatia and 
No. 7 Mark Philippoussis of Australia 
until the f inal. 

Every Goliath is flawed in some way. 
Krajicek gorged himself on Wimbledon 
last year and needed “about four, five 
months before I got the fi ghting spirit 

Ivanisevic should have won a Gland 
Slam title by now, having reached two 
Wimbledon finals since 1992, but he is 
tike one of those high-speed computer 

modems that fails to connect at the 

crucial moments. 

Philippoussis is the favorite of many 
to scorch all that lays before him. He has 
been drawn in the first round against 
Greg Rusedski, the Canadian-tuxsed- 
Briton, who serves almost as hard. For at 
least three abbreviated sets they will do 
nothing more elegant than slash away at 
each other’s shields. At least thou the 
tournament will be rid of one of them. 
When Philippoussis beat Ivanisevic re- 
cently in a grass-court final, the whole 
dud took less than an hour, and only five 
times were points extended beyond four 

The Old Germans: Michael Stich 
and No. 8 Boris Becker have won four 
Wimbledon singles tides between them. 
Stich, the 1991 champion, is about to 
retire because his serving shoulder has 
lost its swiveL He meets the 1993 fi- 
nalist Jim Courier in the first round. 
Stich’s elder rival, Becker, seems to 
have recovered from the wrist injury 
that knocked him out of last year’s tour- 
nament Becker hasn't won at Wimble- 
don since 1989 — he turns 30 in 
November — bnt he will be a dangerous 
match for Sampras should they meet as 
scheduled in the quarterfinals. 

The Swedes: They don’t complain, 
they don’t save especially hod, and 
Sampras hasn’t been able to beat them 
lately. Magnus Norman knocked him 
out in the third round of the French 
Open, after a stomach bug had done the 
preliminary work, and Jonas Bjotkman 
beat Sampras in the quarterfinals at 
Queen’s Club last week. Sampras will 
open against the unprepossessing world 
No. 54 Mikael Tills from of Sweden. 

The Basetiuers: Most of than aren't 

Jana Novotna hitting a backhand Sunday to Arantxa Sanchez Vicark) in a warm-up tournament for Wimbledon. 

Rain Wreaks Havoc on Warm - Ups 

Novotna and Sanchez Vicario Share Prize Money in Eastbourne 

compatible with the squeaking Wimble- possi 
don lawns. Thomas Muster has refused fore ( 

his invitation for the third straight year. 
No. 11 Gustavo Kuerten, the recent 
French Open champion of Brazil, lost 
his first grass match in straight sets last 
week to Rusedski and said afterward, “I 
just did not know how to play." 

The Russian: No. 3 Yevgeni Kafel- 
nikov, the 1996 French Open champion, 
could be tiie biggest threat to Sampras 
— not just if they meet in the semifinal, 
bat around the world ova the next few 

And last but not least, 23-year-old 
Tim Henman of Oxford, at No. 14 the 
first Briton to be seeded since Buster 
Mottram in 1983. The British haven't 
celebrated a men’s singles champion for 
six decades. Henman, who has been 
struggling since undergoing elbow sur- 
gery this spring, will be under more 
pressure than Sampras. 

Can^tOedbf Our Staff 

On the eve of Wimbledon, rain wiped 
out the final of the women’s grass conn 
event in Eastbourne on Sunday. 

Jana Novotna, the second seed in the 
traditional Wimbledon warm-up event, 
was leading the fourth-seeded Arantxa 
Sanchez Vicario, 6-5, in the first set, but 
trailing, 30-40, on the Spaniard’s serve 
when play was abandoned because of 

Only 45 minutes of play had been 
ble between Sunday’s showers be- 
organizers decided to abandon the 
final altogether because of the start of 
Wimbledon on Monday. 

The decision meant that Sanchez Vi- 
cario and Novotna shared £48,000 
($80,000) in prize money. It was the 
first time that the tournament had not 
been completed in its 19-year history. 

Rain disrupted play all week, and 
although organizers put the tournament 
into an extra day Sunday, there was no 
relief from the weather. 

Meanwhile, in Rosmalen, Nether- 
lands, the defending Wimbledon cham- 

pion Richard Krajicek edged out Guil- 

laume Raoux of France, 64, 7-6 (9-7), 
Sunday in the final of the Heineken 
Trophy grass court tournament. 

Earlier in the day, third-seeded Rux- 
andra Dragomir of Romania won the 
$27,000 first prize in the women’s final, 
beating the unseeded Miriam Oremans 

of the Netherlands, 5-7, 6-2, 64. The 
match was suspended because of rain 
Saturday evening, and resumed with 
Dragomir, who is seeded No. 15 for 
Wimbledon, leading 3-1 in the final set 

Krajicek won a tight, service-dom- 
inated encounter on two backhand re- 
turns. The first convened a break point 
in the fifth game and the second came at 
8-7 as Raoux served to save match point 
in the second-set tiebreaker. 

Krajicek served three aces in his first- 
service game, and three games lata 
seized the match ’s first and only break 
point to lead 3-2. 

Raoux never threatened the Dutch- 
man’s service as the first set ebbed 
away, but he conceded just two points in 
his next eight service games to take the 
second set to a tiebreaker. 

Krajicek’s 14th ace- set up a match 
point after the first 15 points of the 
tiebreaker went with serve. Thc Dutch- 
man’s dipping return fated Raoux to 
hit his shot into the net, ending the 
match after an hour and eight minutes. 

Krajicek, who did not lose his service 
throughout the tourney, picked up 
$66,400 and passed Yevgeni Kafel- 
nikov of Russia into fifth place in the 
ATP rankings. He also proved his fit- 
ness and form for his title defense at 

Rain forced the final of the Notting- 
ham Open indoors on Saturday. 

Sheltered from the downpour, the Ca- 
nadian-born Briton, Greg Rusedski 
powered to an impressive 64, 7-5 find 
victory over Karol Kocera. 

Torrential rain forced the organizers 
to take the semifinals and finals of the 
grass court tournament indoors for foe 
second day in succession. As a con- 
sequence, 3,000 fans were again locked 
outside due to a lack of spectator ac- 

Another 100 fans watched from on- _ . .— 

demeath umbrellas through the win- 
dows of the Nottingham Tennis Centre 
as Rusedski dispatched Sandon Stolle of’. Tl, ^ 

Australia, 6-3, 64, in the first «am- lit i C $| 

Kucera then beat Tim Henman, 64, 

2-6, 64, to rule out the unprecedented 
event of two Britons contesting an ATP 
final. (AP. Reuters. AFP ) 

■ Former Champion Qualifies ^ 

A forma Wimbledon champion. Fat - 
Cash of Australia, fought his way ’ 
through qualifying matches on Saturday - ■ 
to secure his place in this year’s main - 
draw, Reuters reported from London. ~ 

Cash, who beat Ivan Lendl in straight : - 
sets to win the 1987 title, defeated Oren -v 
Motevassel of Israel to earn a first- -~ 
round encounter with Byron Black of 
Zimbabwe. Cash received a wild card " 
into the qualifying tournament and won 
all three of his matches. - 

Vigo Thrashes Champion Real Madrid to Survive 

CcaplkdlnOtrSMqfFmmD iM pBc kB 

Bosnian striker Vladimir Gudelj 
scored a hat trick as Celta Vigo thrashed 
the newly crowned Spanish champion, 
Real Madrid, 4-0, on the last Sunday of 
the league season to stay in the First 

Rayo VaUecano of Madrid lost 2-1 at 

Copa America. Page 23. 

home to Barcelona and must win a play- 
off against Majorca to retain its place in 
the First Division. 

Extremadura will return to tbs 
Second Division after only one season 
following its 1-0 loss away to Deportivo 
La Coruna. The decisive goal was 
scored in the first minute by Aitor Ber- 

Ronaldo, who signed for Inter Milan 
on Friday and again did not play for 
Barcelona on Sunday, ended as the 
league's top scorer with 34 goals, nine 

ahead of Alfonso Perez of Real Beds. 

world cup Striker Kazuyoshi Mima 
scared six goals Sunday as Japan 
thrashed Macau 10-0 in a World Cup 
Asian zone Group 4 first-round qualifier 
in Tokyo. 

It left Japan with a maximum 12 
points from four matches in which it has 
scored 27 goals and conceded none. 

Oman, which trounced Nepal 6-0 
earlier Sunday, is second with nine 
points from four games. 

In Beijing, China beat Vietnam 4-0 
Sunday to clinch first place in Asian 
Group 8. Tajikistan, which lata over- 
powered Turkmenistan 5-0 in Dush- 
anbe, finished second. 

China becomes the seventh nation to 
for the next round of Asian 
tniying, joining Saudi Arabia, Iran, 
United Arab Emirates, South Korea, 
Kuwait and Qatar. Three teara* will 
qualify directly for the finals in France, 
and a fourth will go to a playoff with the 
winner of the Oceania region. 

would youth cup Adailton Martins 
scored six goals Sunday —the first four 
in eight minutes — as Brazil over- 
whelmed South Korea 10-3 in the world 
youth championship in Malaysia. 

The victory in Kuala Lumpur meant 
Brazil won all three of its games in 
Group B. Afterward. Antonio Barraso, 

up £>. . 

the Brazil coach, said he was unhappy 

ee goals. 

that bis team had conceded three gi 
Brazil’s goals came from Fernandas 
Da Costa (19th and 41st minutes), Mar- 
tins (30th. 32d, 35th, 38th, 62d, 68th), 
Vinicius Da Silva (66th), and Junior 
Junior (80th). 

Brazil has a second-round match 
against Belgium, whose coach Ariel 
Jacobs said he was looking forward to 
tiie game, although it would be “a very 
difficult honor.” 

Belgium beat Malaysia 3-0 on Sunday 

vance to the second round. Ghana beat 
the United States 1-0 to win Group C, 
while Ireland drew 1-1 with China to 
finish second. The Americans must 
await tiie outcome of Monday's games 
to see whether they advance as one of 
the best third-place teams. 

NETHERLANDS NEC Nijmegen held 
on to its First Division status Saturday 
by winning Group B of the division 
playoffs on goal difference. 

NEC beat a Second Division team, 
Cambuur, 4-0 away in the lastround of 
the round-robin tournament to finish 
level on points with Go Ahead Eagles 
Deventer, but with a superior goal dif- 
ference. (AP t Reuters , AFP) 

■ Dortmund Hires Nevio Seals 

to finish third in Group A behind Ur- 

co, which 

uguay and Morocco, which drew 0-0. 

France beat South Africa 4-2 to finish 
second to Brazil in Group B and ad- 

Enropean Cup holder Borussia 
Dortmund said Sunday it h qd signed Ne- 
vio Scala as its coach after Peru^a agreed 
to release him. Scala, 49, previously 

guided Parma from the Italian Second 
Division to 

the European elite. (Reuters) 

Maradona Hires 

Ben Johnson 

The Associated Press 

TORONTO — Diego Mara- 
dona, the Argentine soccer star at- 
tempting a comeback, has hired the 
banned Canadian sprinter Ben 
Johnson as a $l,0Q0-a-day trainer. 

"I want to be the best in the world 
again, ’ ’ Maradona said after a two- 
hour workout in Toronto on Sat- 
urday. “Ben’s the fastest man in the 
world, a powerhouse, an anima l 

» \ 

•RJ i.'TOCif A 





Johnson, 35, was stripped of his 

ild me 

Olympic 100-meter goftf medal in 


1988 for drug use, and banned far 
life after he failed another drug test 
in 1993. 

Maradona, 36. was suspended in 
1991 after testing positive for co- 
caine. He was thrown out of the 1994 
World Cup for using stimulants. 


The^ast is the past," Johnson 

said. We’re just trying to do the 

tilings we do best. The only parallel 
we see is two of the world’s greatest 
athletes coming back." 


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