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The World’s Daily Newspaper 

Paris, Monday, May 5, 1997 


Has Japan Spent Too Much Sharing Wealth? 

By Kevin Sullivan 

Washington P,w Service 

■ SATA, Japan -— Shiori Nagayoshi played a lovely 
pieee of classical music on the piano next to the big- 
soeen television in her family’s small living room. 
Her m-lme skates and $250 Nike sneakers — a must- 
have item for a fashion-conscious 12-year-old in 
-Japan these days — were stashed by the door. 

Shi on attends a brand-new junior high school, 
® . town’s new $16 million community 
Mfl, She studies English in the school’s state-of-the- 
art computer lab, and she listens to her favorite 

Japanese pop music on a compact disk player in her 
room at night. 

This farming and fishing town at the southern tip 
of the main island of Japan has one of the lowest per- 
capita incomes of any place in the nation. In the 
island prefecture of Okinawa and in some other 
extremely remote islands, the figures are even lower. 
But Sata is near rock bottom on the main island, 
although you would never know it from the com- 
fortable life in the Nagayoshi family farmhouse, or in 
virtually any other house in this hilly seaside town. 

U.S. leaders constantly struggle with the vast and 
divisive income gap between the United States' 

wealthiest and poorest citizens. The rich are gening 
richer and the poor are sinking deeper into poverty in 
what former Labor Secretary Robert Reich called a 
“chasm of inequality.” The trend is a global one. 
with the United Nations reporting that the incomes of 
the richest 20 percent around the world grew three 
times faster than the incomes of the poorest 20 
percent from 1960 to 1990. 

But Japan has virtually no such income gap. 
Almost all personal wealth was destroyed in World 
War EL and from that starting point, Japan set out to 

See JAPAN, Page 20 


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Debate Over Europe 
. Rages On in Britain 

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: Party’s ‘ Cancer ,’ 

Key Tory Says 

. 7 • . By Warren Hoge 

New York Tunes Service 


• -V LONDON — Britain’s Conserva- 

tives. in power so long that they bad 
come to think of themselves as the nat- 

• ural party of government, have sud- 
denly found themselves in the political 
wilderness with no leader, no con- 

s sensus. no presence in large parts of the 
United Kingdom and drastically re- 
> duced representation in Parliament 

The divisive issue of Europe that 
. helped get them into this unenviable 
: state arose this weekend as the chief 

; I; impediment to their choosing a leader to 
’r’jdfc succeed former Prime Minister John 

'|[ After the landslide victory by Tony 
.. _ I Blair and his Labour Party on Thursday, 

,_7‘ ~ 1 Mr. Major said he would relinquish the 

. party leadership as soon as the Tories 

, ; could select a successor. 

“Let us stop this obsession with 
* Europe,” Kenneth Clarke. 56. the 
r former chancellor of the Exchequer 

Spin doctor rewarded by Blair for 
, role in Labour’s victory. Page 6. 

who was the.first Tory to announce his 
candidacy, said Sunday. 

; “What we 'mustn’t allow is zealots 

inside the party to turn die whole lead- 

• •' ~i ? ersfnp election into a pro- and anti- 

. is Europe thing.’’ 

■J- 3 But Peter Lilley, 53. die former social 

-. security secretaty, said that he too 
'!_■ :n would be a candidate and would insist 
: :c " that foe party stake out a clear position 

-. on Britain's farther integration in 

j: Europe. 

And John Redwood, 48, the fiercest 
; . Euroskeptic in the party, said it was 
i “quite Ukely” that he would join foe 
■ 'Z‘\ fray and base his campaign on the po- 
. sition that “Europe is our continent, not 
. our nation.” 

. \V-a. Mr. Clarke, a star in Commons debate 

” r| and a man with the credentials of having 
•- Y\m the treasury during the recent years 
of ’economic recovery, described the 
".zJP debate over Europe as “the cancer at the 
' .'At' heart” of foe party. 

■ ‘ ‘Some people are qnite obsessed by 

h,” be said. "‘They are quite incapable 
"jj- of agreeing upon it.” 

: . Both dining foe campaign and in its 
imm ediate aftermath, recriminatory 
"* * ' . members of the party targeted Mr. 

■ Clarke, a declared Europhile, as foe 

i_'S; cause of their defeat, but ne scoffed at 
- that Sunday. 

v. ' ‘ .. “Labour did not win their enormous 
“ f . majority because we tad not become 
- f . right-wing and Euroskeptical enough,” 

- ^ be told foe interviewer David Frost. 

- “The public were rather indifferent 
to this internal Conservative squabble 

: • ’ over Europe except they thought it made 

_. us Jook rafoer a shambles and not an 

.dectable party.” 

. Monday, foe Labour government 

makes its first nod towards Europe, sig- 
■- ;; 'f'j . naling its willingness at an intergov- 
x? em m ental meeting in Brussels to sign 

■s-'T foe Social Charter, a list of proposals for 

’ Europewide reforms and standards in 
y workplace conditions. 
r While Mr. Blair said in his campaign 

. - that he was wary of committing Britain 

' / to foe single currency in 1999 and would 

"'v.^MUbniit the matter to a national refer- 
' > *endum in any event, he pledged that, 
V unlike foe Conservatives, be would 

• . agree U> including Britain in the Social 

\.i £ - Robin Cook, the new foragtrsec- 
.... retary. said foe signing would mark a 
fiesh start in Europe for Britain, work- 
ing with other member states as a part- 
ner, not as an opponent.” 

. ' See TORIES, Page 8 

*• Newsstand Prices _] 

' ' K Andorra 1000 FF Lebanon LLOOOOj 

:<a ■ at=3SSB!=SsS| 
Ss-^’isss SSf—JSffij 

' 4 £S'~ Iw m u.s.mmb»)— si- 20 ! 

Vote Heartens 
Continent’s Left 

By Craig R. Whitney 

Nevf York Times Service 

PARIS — Since Tony Blair’s elec- 
tion victory for the Labour Party in 
Britain last week, other leftists in 
Europe have found new reason for 

Elections will take place in France at 
foe end of this month, in Germany next 
year and soon after that in other coun- 
tries across the Continent where So- 
cialists and Social Democrats have 
found themselves frozen out of power in 
recent years. 

“We can do it too” was foe refrain, 


followed quickly by. “Of course, we 
would never think of doing what Labour 
did in Britain.” 

Labour’s sin, as some of its Con- 
tinental cousins see it, was adopting foe 
pro-business, anti-government, tax-cut- 
ting philosophies that conservatives 
everywhere insist are foe only way to 
compete in foe global economy. 

■ “The real winner of foe British elec- 
tions is Thatcherism.” a headline in the 
French weekly L’Ex press said in an- 
ticipation ofa Labour landslide, referring 
to the distasteful fto Continental leftists) 
ideology that former Prime Minister 
Margaret Thatcher and her successor. 

A is 

m Hr 

John Major, used to transform foe British 
political landscape and economy. 

Thatcherism may have made the rich 
richer and foe poor poorer, as its critics 
change, but in income disparity, Britain 
is little different from France- or Ger- 
many; all have been subject to the same 
inexorable global economic forces. Bri- 
tain, however, has distinguished itself 
from other countries in Europe in its 


AT&T Agrees to Cut Long-Distance Rates for Households 

Residential long-distance phone 
rates in tire -United States will fall sig- 
nificantly in the next several years un- 
der a plan negotiated by tire AT&T 
Coip. and the Federal Communica- 
tions Commission, according to of- 

ficials and industry executives. AT&T, 
foe largest U.S. provider of long-dis- 
tance service, said that it would cut 
residential rates by $500 million in the 
year beginning July 1 — foe first sub- 
stantial cut in long-distance charges in 

^ v.:.i 

foe 1990s. That will translate into re- 
ductions of 5 percent to 15 percent, foe 
company said. 

Sprint and MCI Communications, 
the- other major U-S. carriers, are ex- 
pected to follow suit Page 15. 

Italian Military Camp 
In Albania Is Fired On 

TIRANA. Albania (Reuters) — 

Three men att yfr ed an Italian militar y 
camp in southern Albania early Sunday 
in foe first direct assault on foe eighr- 
oation protection force in foe Balkan 
state, a military spokesman said. 

Lieutenant Colonel Giovanni Bern- 
ard! said foe men opened fire on the San 
Marco camp at Vlore at about 2 AM. 

“Tbe men on duty fired back into 
the air in the general proximity of foe 
criminals without trying to kill them,” 
Colonel Bernard! said. r The criminals 
quickly disappeared. No one was in- 
jured and there was no damage.” 


Terrorism Traps Bahrain and Canada 

SIKlia ISUVEft 1WU " ~ « 

of Texas” members who escaped. The others surrendered. Page 3. 


Kasparov Reigns (in Round 1) 

Page 23. 

Page 10. 

Snorts -.1 . 

... Paces 22-24. 

The Intermarket 

Page 12. 

| The IHT on-iine http: 

'Vv.'w.v.i 1 

Taipei Worries About Beijing’s Patience 

Handover of Hong Kong, Separatist Says, Will Start a Clock Ticking 

Mobutu Tries to Put 
Conditions on Exit 

Rebel Leader Demands Power 
As Forces Close In on Kinshasa 

MkUCnhiu/A|aR Raacr-ftate 

Prime Minister Tony Blair of Britain, his wife, Cherie, and their sons 
Nicky and Evan leaving their home in London to drive to church Sunday. 

change of thinking across the political 
spectrum about the welfare state. 

It is clear that Lady Thatcher and her 
party changed Britain in their 18 years 
in power, and that what Mr. Blair calls 
New Labour now accepts most -of those 

It is equally apparent that economic 
See EUROPE, Page 8 

By Howard W. French 

Nr* v York Times Sen-ice 

KINSHASA. Zaire — In his first 
meeting with the rebel leader who is 
trying to overthrow him. President 
Mobutu Sese Seko of Zaire said that he 
would relinquish power Sunday, but 
would only do so by banding over to a 
mutually acceptable transitional author- 
ity that would organize national elec- 

Meeting on a South African warship 
in the Congolese port of Pointe-Noire, 
Marshal Mobutu’s foe. foe rebel leader 
Laurent Kabila, insisted that power be 
handed over to him directly and vowed 
to press ahead with his military cam- 
paign against foe government 

At the end of a day of talks, foe South 
African president Nelson Mandela, 
said that foe two sides had agreed to 
meet in six to eight days to resume their 
discussions, but the gulf between Mar- 
shal Mobutu and Mr. Kabila appeared as 
large as it had been when foe day began, 
and the stage appeared set for a quick 
rebel military takeover before a second 
meeting could convene. 

A statement read at foe end of the 
talks by foe United Nations mediator, 
Mohammed Sahnoun, consisted of a 
simple restatement of each side’s po- 
sitions. While Mr. Kabila lingered in 
talks with South African officials before 
taking off for Angola, Marshal Mobutu 
quickly left, reportedly heading for foe 
airport at Pointe-Noire. His destination 
could not be immediately confirmed. 

Mr. Kabila claimed tp have ordered a 
halt to fighting while Sunday's talks 
were under way. But in statements be- 
fore and after the meetings he repeated 
his determination to press ahead with a 
war that has already brought his fighters 
to the doorstep of Kinshasa, which Mr. 
Kabila said the rebels could reach im- 

“Mobutu has asked me to give him 
eight days while be considers our de- 
mand to resign,” Mr. Kabila said in a 
telephone interview with Reuters 
shortly after foe meetings broke up. “I 
have agreed to that request and we shall 
meet again on this same ship within foe 
next eight days. But I have told him and 
foe mediators that there will be no 
cease-fire while he considers our de- 

According to foreign diplomats and 
other reports reaching this teeming city 
of 5 million, rebel forces now stand less 
than 120 kilometers from Kinshasa, 
both to the south and to the east, and, 
belying Mr. Kabila’s supposed cessa- 
tion of hostilities order, were said to be 
on foe move during foe day. 

In northeastern Zaire, dozens of 
Rwandan Hutu refugees suffocated or 
were crushed to death Sunday in a train 
carrying them from a refugee camp to be 
repatriated by air, witnesses told Reu- 

Aid workers and journalists saw 
dozens of bodies of refugees tumbling 
from open rail cars as the train pulled 
into Kisangani station. An official of foe 
UN High Commissioner for Refugees 
said he estimated more than 100 people 
had died in tire crush. 

A major objective of foe international 
mediation has been to prevent an armed 

See ZAIRE, Page 7 

Helena Viktfe/Thr AaenciMd Fn» 

Laurent Kabila, who refuses to 
declare a cease-fire during talks. 

In Italy Dies 
As Marzotto 

By Alan Friedman 
and Suzy Menkes 

Intenunional Herald Tribune 

ROME — In a development that 
could mark a shift in Italian capitalism 
and the erosion of power of Italy's lead- 
ing financial player, the Marzotto cloth- 
ing group has abruptly pulled out of a 
merger that would have created a $5 
billion-a-year European fashion power- 

Pietro Marzotto. head of the clothing 
and textile group, announced over foe 
weekend that the company was with- 
drawing from foe deal orchestrated by 
Mediobanca, the country's leading mer- 
chant bank. 

The deal, which would have seen Rat 
and Mediobanca as two of foe leading 
shareholders, had already come under 
fire from critics who said there was no 
industrial logic in combining the 
Rizzoli-Corriere della Sera newspaper 
.and book publishing group with Mar- 
zotto. a family-owned fashion business. 

In European fashion terms, tbe col- 
lapse of the deal could have immediate 
implications for Giorgio Armani, 
Valentino, foe fashion producer GFT 
and Hugo Boss, all of whose manu- 
facturing operations were to have come 
under the umbrella of the new con- 

Analysts and bankers in Milan said 
Sunday that the surprise cancellation, 
less than eight weeks after foe deal was 
announced, represented a serious revolt 
against tbe traditional dominance of Me- 
diobanca in Italian capitalism and could 
herald a further weakening of the power 
of the secretive merchant bank, the main 
ally of the Rat group. 

Some commentators in Italy said 

See NO DEAL, Page 20 

In Zero-Deficit Heaven , 
People Don’t Get Older 

By Patrick E. Tyler 

New York Times Service 

KAOHSIUNG, Taiwan — As cham- 
pions of the Taiwan independence move- 
ment, Weriey Yu and his family have 
built a political dynasty in tins seaport 
dry where harbor cranes soar abovea 
horizon of cargo containers stacked 

along a vast waterfront. It is a vista mat 

evokes foe economic vibrancy of this 
island off China’s southeastern coast. 

But Mr. Yu, a provincial assembly- 
man, speaks with surprising frankness 
about foeposriHffly that Taiwan might 
some day reunite with ns Icmgtmte en- 
en^Beijin|, especially after Hong Kong 
rearms to Chinese sovereignty July 1. 

“Just as foe United Stales is a con- 
federation of states, maybe we could be 
confederated with mainland C hin a,' ' be 
said rec entl y, striding across the broad 
concrete pier of Kaohsiung port. 

“We have to be more realistic, and 
not just talk in theories,” he said, tick- 

Hong Kong police’s qnandry. Page 4. 

ing off the conditions that would have to 
be f ulfilled. “We want our own mil- 
itary, our own foreign policy and our 
own officials. We have to have our 
dignity s n d our security. And China has 
to give us a promise that they will not 

use force to reunify.” 

Mr. Yu spoke like a man sure of his 
terms, but who also knew that the return 
of HoDg Kong to Chinese rule would 
start a clock ticking, counting down to a 
political reckoning for the 21 million 

people of Taiwan,. 
Nearly five decar 

Nearly five decades after Taiwan be- 
came foe exile home of Chiang Kai- 
shek’s Nationalist government, foe end 
of colonial role in Hong Kong tins year, 
and in Macau in 1999, has reawakened 
the prospect that Beijing may soon set a 
deadline for union with Taiwan. 

This long-deferred question has sud- 
denly became one of Asia’s major se- 
curity concerns. Whether the island’s 

See TAIWAN, Page 8 

By Clay Chandler 

Washington Pan Service 

WASHINGTON — . If everything 
goes as promised, the grand budget 
compromise embraced by President Bill 
Clinton and leaders of the Republican 
Congress will bring federal revenue and 
spending into balance in 2002 for the 
first time in four decades. 

But then what? 

Even as budget negotiators slapped 
one anofoer on the back for finally clos- 
ing a deal, fiscal experts cautioned that 
the agreement would do little to hold the 
budget in balance beyond 2002, when 
retiring baby boomers stop paying taxes 
and begin to claim Medicare. Social 
Security retirement and other costly fed- 
eral benefits. 

Many experts warned that the tax cuts 
outlined in the agreement reached Fri- 
day — a package estimated to lower 
federal revenue by $250 billion over foe 
next 10 years — could make the long- 
term. deficit outlook considerably 

* Tt’s conceivable that everything that 
has been gained by changes on foe 

Setax ade,” said Robert RebdhauCT, a 
former director of the Congressional 
Budget Office. “I think there is a real 
danger that all we’ve done here is fiD tbe 

deficit hole in foe short term in a way 
that will only make it deeper later on.” 

“Even if the budget is balanced by 
2002*' under the bipartisan framework, 
“it won’t stay balanced by 2010, and it 
sure as hell won’t be in balance by 
2020,’’ said Christopher Probin, direc- 
tor of forecasting at DRI/McGraw-Hill 
Inc. an economic forecasting firm in 
Lexington. Massachusetts. 

Richard Jackson, a economist with 
(he anti-deficit Concord Coalition, said; 
“We think that a deal is better than no 


deal. But it’s important to remember 
that this is only a small down payment 
on our long-term fiscal problems.” 

America’s long-run fiscal dilemma is 
straightforward: Over foe last four de- 
cades. foe country's political leaders 
have constructed an increasingly gen- 
erous network of “entitlement” pro- 
grams, so called because any eligible 
citizen is entitled to benefits, no ma t ter 
what the cost But those' pro gr ams, in- 
cluding Medicare, Medicaid and Social 
Security , have run afoul of demograph- 
ics and economics. 

The last of foe baby boomers, the 
population bulge of Americans bom be- 

See BUDGET, Page 8 

Budget deal strengthens Clinton. Page 3, • Markets await fire Fed. Page 16. 


Security Fears in the Gulf / 5th Fleet Loses an Oasis 

U.S. Navy Hauls Up the Anchor From Bahrain ’s Bars 

By Douglas Jehl 

New York Tima Service 

M ANAMA* Bahrain — As a liberty 
port, Manama cannot compete 
with the raimchiness of Manila or 
Bangkok, but the men and women 
of the U.S. Navy still regard it as an oasis in the 
heart of the Gulf. 

Filipino barmaids, to die blare of heavy- 
metal music, serve up American beer in cans 
— nectar in a sheikdom sandwiched by Saudi 
Arabia and Iran. 

“It would take a brave man to open a girlie 
bar," as one foreigner hastened to point out, 
but Bahrain has managed to carve out a spirit 
so cosmopolitan that a framed commendation 
in one nightspot begins * ‘ Thanks for the nig hts 
we can't remember.” 

So some dismay and apprehension have 
settled in here in the weeks since the United 
States abruptly ordered sailors on its vessels 
docking here to be denied the liberty that had 
become a custom. At the same time, a 7 P.M. 
curfew was imposed for all of the 1,000 land- 
based navy personnel at the headquarters here 
of its 5th Fleet. The U.S. Embassy has re- 
commended that even American civilians steer 
clear of bars and restaurants, saying it has 
received information that a terrorist attack 
might be planned against U.S. military forces 
in Bahrain. 

Now the bar stools and dance floors that 
offered an antidote to boredom for thousands 
of sailors every month are almost empty. 

Bahrain, a safe and welcoming harbor to the 
navy for nearly 50 years, is no longer seen as 
immune from die kind of anti-American mil- 
itancy that has preoccupied U.S. military plan- 
ners since a bomb attack on a U.S. target in 
Riyadh, Saudi Arabia* 18 months ago. That 
attack was followed by one last June that killed 
19 Americans. 

The latest warning issued by the embassy 
here, dated Ami 23, reported that it “continues 
to receive information about possible terrorist 
threats to the U.S. military in the region, in- 
cluding Bahrain." It urged all Americans to 
“exercise die strongest possible caution.” 

could complicate their efforts to attract tourism 
and foreign businesses as substitutes for a 
small and declining oil sector. 

Bahrain is not only the smallest country in the 
Middle East but also the smallest oil producer, 
with production of about 40,000 barrels aday — 
less man 1 percent of what is produced by Saudi 
Arabia. But for now, it remains dependent on 
the petroleum industry, earning additional rev- 
enue from an offshore oilfield shared with Saudi 
Arabia and by refining Saudi oil. 

Until the beginning of April, as many as 
three U.S. Navy ships tied up in Manama every 
week, and there were few restrictions on where 
sailors could head in their off hours. 

But since it made the warning public April 7, 
the navy has diverted vessels in need of liberty 
to the United Arab Emirates, where there are 
U.S. worries stemming from a fatal accidentia 
which an American sailor was found at fault. 
For the last 1 8 months. liberty beyond the Jebel 
Ah' port there has consisted of organized out- 
ings in large escorted groups. 

In the meantime, those aboard the handful of 
ships at anchor in Bahrain or those that have 
visited the port since have mostly had to gaze 
from the bridge or the deck at Manama, where 
the raucousness of bars like the Hunter's 
Lodge and Tabasco Charlie's had become the 
stuff of navy lore. 

“The intent is to avoid large gatherings of 

Americans that would create an inviting target, 
given the current environment,’ 1 aUJ>. official 
here said. 

U.S. vessels have been based in Bahrain 
since 1948, and its designation in 1995 as the 
permanent headquarters of a re-created 5th 
Fleet has added to its uniqueness in the Gulf, 
where conservative sensibilities mean that oth- 
er countries in which large numbers of U.S. 
military personnel are stationed, including 
Saudi Arabia and Kuwait, prefer to describe 
tiie arrangements as temporary. 

Nineteen U.S. vessels are now in the narrow, 
shallow waters of die Gulf, carrying about 
12,000 sailors and airmen. That is slightly 
lower than the recent average but still reflects 
the substantial buildup of U.S. forces in the 
region dial has been under way since the Gulf 
War in 1991. 

While some reports published after the 
warning was issued drew a link between the 
U.S. concerns and die domestic unrest here, 
U.S. officials have gone out of their way to 
suggest that the assumption was wrong. 

Since it began in December 1994, the cam- 
paign of violence has claimed nearly 30 lives in 
the name of an effort to persuade die emir to 
restore an elected Parliament, which was dis- 
banded in 1975. 

Hundreds of people remain in prison, in- 
cluding Shiite clerics who have become heroes 

to their followers, and the crackdown by the 
authorities drew criticism in the most recent 
State Department human rights report. 

Despite the high visibility of Americans here, 
none of the attacks have been aimed at U.S. or 
even clearly Western targets, and neither the 
graffiti emblazoned in Shiite villages nor the 
statements issued by leaders of die movement 
have hinted at anti-American sentiment. 


BAHRAIN— \ ThaGatt 




The Oult '; . - ^ | 

"V* tiAHflAJfi''- 

A mong those who have been con- 
victed of plotting against the gov- 
ernment, one group of Shiites was 
accused of taking part in a campaign 
orchestrated by Iran. U.S. officials have said 
they are convinced that those accusations are 

They say that ai least some among the group, 
more than a dozen of whom were sentenced to 
prison after a trial in March, were provided 
with mili tary training by Iran at camps outside 
Tehran and -in the Bekaa region of Lebanon. 

Bahraini and U.S. officials now describe the 
group as a Bahraini Hezbollah, with ties to its 
Lebanese namesake, which is backed by Iran 
and which has along record of attacks against 
UJS. targets. 

The U.S. ambassador, David Ransom, was 

at the U.S. Embassy to have called the audi- 
ence’s attention to newspaper reports describ- 


V V- 0 *™ 1 


mg threats against U.S. forces in the Gulf 
region made by Osama bin Laden, the multi- 
millionaire Saudi whom the State Department 
has labeled “one of the most significant fi- 
nancial sponsors of Islamic extremist activities 
, in the world today.” 

Mr. Bin Laden, who was stripped of his 
Saudi citizenship in 1994 and has taken refuge 
in Afghanistan, -has in several interviews over 
the last six months threatened to declare a holy 
war against the United States and its allies u 
Washington does not remove its forces from 
the region. 

O ther foreigners, including more than 
5,000 Britons, have shrugged off the 
expressions of alarm, andmany U.S. 
civilians say they have seen little 
reason to be concerned. The island also remains 
a haven for Saadis, Kuwaitis and others who 
are by far the largest share of tourists, flocking 
here in droves every weekend to seek out the 
turquoise waters and relaxed atmosphere. 

Led by the emir. Sheikh Isa ibn Sulman al 
Khalifa, who has been in power for 38 years, 
the ruling family of Bahrain has made little 
secret of its displeasure at the U.S. action. 
After sparring for more than two years against 
a campaign of scattered arson and small-scale 
bombings that has been waged by members of 
die Shiite Muslim majority, die emir and his 
family — who like most prominent landown- 
ers and businessmen here are Sunni — worry 
about a further sullying of Bahrain's image. It 

Canada’s Openness Appeals to Terrorists 

OtttBmm/mkfimAito aatoa Pnn 

An American soldier at the bombed military 
baracks in • Dhahran, Saudi Arabia. 

By Anthony DePaima 

- - New York lanes Service 

TORONTO — The recent arrest of a Saadi 
man linked to a deadly attack against Amer- 
icans in the Middle East last year has 
provided a glimpse, officials say, of how a 
largely hidden network of militant groups 
uses fflnfldfl to raise money, recruit mem- 
bers, provide refuge and plan attacks. 

While most derails are kept secret, court 
papers, official reports and transcripts of in- 
terviews with another man accused of ter- 
rorism and deported three years ago re veal the 
surprising degree to which officials say the 
Iranian-racked group HezboQah, or Party of 
God, has established a presence in Canada. 

Officials say they believe Canada’s com- 
paratively open borders and generous refugee 
policies make it easy for suspected terrorists 
to enter, whether they are trying to hide out or 
to find an easy way into die United States. 

The Saudi man, Hani Abdel Rahim 
Sayegh, is to appear before a federal judge in 
Ottawa on Monday to answer charges that he 
is a threat to national security and should be 
deported. He is accused of belonging to 
Hezbollah and of taking part last June in the 
bombing of a military barracks in Dhahran, 
Saudi Arabia, that killed 19 Americans. 

Court papers indicate that intelligence of- 
ficers believe that Hezbollah members in 
Canada helped Mr. Sayegh find a haven in the 

country last August. Much of what Canada 
knows about the bombing comes from Saudi 
and U.S. sources. But Canadian officials 

gained important information about the 
workings of Hezbollah in their country from a 
man accused of working for Hezbollah’s se- 
curity apparatus who was deportedin 1994. 

* ‘Hezbollah has members in Montreal, Ot- 
tawa, Toronto, all of Canada,” the man, 
Mohammed Hussein Husseini, said in a 1993 
interview with agents of the Canadian Se- 
curity Intelligence Service. 

Mr. Husseini offered derails of how 
Hezbollah conducted surveillance of impor- 
tant buildings in f-anaria, such as the regional 
headquarters of the intelligence service. 

In papers presented to the court the in- 
telligence service stated that it believed 
Hezbollah was prepared to order Mr. Hus- 
seini to “commit an act of te rr o ri sm” in 
Canada or elsewhere and that if it had ordered 
him to do so, he would have complied. 

The arrest in March of Mr. Sayegh and the 
accusation that he is connected to Hezbol- 
lah's operations in Canada have reopened a 
debate here that pits national security against 
the concerns of a multicultural society. 

During the Gulf War, for instance, the 
Canadian intelligence service .was widely 
criticized for conducting interviews in Arab 
neighborhoods, where residents felt unjustly 
singled out because of their backgrounds. 

” Senior U.S. officials said that at least one 

Hezbollah cell was in Canada in 1993, six 
months before the first interviews with Mr. 
Husseini in Montreal. 

The officials said at the time that the 
Canadian aim of Hezbollah provided plan- 
ning and logistical support tor terrorist at- 
tacks, perhaps in North America. 

Although the Canadian intelligence ser- 
vice declined to discuss its investigations, the 
agency gave its view of the scope of terrorist 
activities in Canada in its annual accounting 
to Parliament last month. 

The intelligence service said it believed 
that the militant groups used Canada for 
fundraising, as a sanctuary and for recruiting 
Canadian citizens in ethnic-minority com- 

They also provide “logistical support for 
terrorism outside Canada” and are devel- 
oping the potential for “terrorist actions in 
Canada,” according to the report. 

Mr. Husseini spoke to agents three times, 
and although be is not openly accused of a 
specific terrorist act, it is clear from the tran- 
script that agents suspect him of having taken 
part in the hijacking of a Kuwaiti jet in 1988. 

Mr. Husseini told the agents that Hezbol- 
lah comprised “a military, organizational 
and popular apparatus” and that “orders for 
these three units come from Iran, but final 
approval is obtained from Hassan Nasrallah 
and Sayid Fadlallah,” the political and re- 
ligious leaders of Hezbollah. 


FBI Sticks With Mechanical Failure in TWA Crash 

French Pilots Extend 
Strike for 2 Days 

PARIS (AFP) — Pilots for the do- 
mestic carrier Air France Europe voted 
Sunday to extend a strike by two days, 
after more than a week of disruptions. 

The pilots have been striking since 
April 25 over plans to introduce new 
pay scales in the merger of Air France 
Europe, formerly known as Air Inter, 
with Air France later tins year. Airline 
management said the strike barely ef- 
fected services over the weekend be- 
cause flights were staffed by other 

Italy Air Strike Threat 

ROME (Reuters) — Air traffic in 
Italy will be disrupted Monday if a 
planned national strike by air traffic 
controllers goes ahead. 

Traffic control unions have called a 
four-hour strike beginning at noon, al- 
though aviation authorities said a cer- 
tain number of flights will be guar- 
anteed. Ministry sources said Transport 
Minis ter Claudio Burlando had called in 
representatives of the traffic controllers ’ 
unions for a meeting Monday. 

The Royal Academy in London 
opened as usual Sunday after a fire forced 
a frantic rescue of artworks. No one was 
hurt in die blaze Saturday. A few new 
works, described as not being valuable, 
sustained minor damage. (Reuters) 

This Week’s Holidays 

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

MONDAY: Britain, Ethiopia. Ireland, Japan. 
Kyrgyzstan, Mexico, Moldova. Namibia, South Korea, 

TUESDAY: Leboooa, Syria. 

THURSDAY: Andorra. Austria. Belgium, 
Benin. Botswana, Burkina Faso. Burundi, Cameroon, 
Gemini African Republic, Congo, Czech Republic, 
Denmark, Egypt, Finland, Frame. Germany, Iceland, 
Indonesia. Ivory Coast, Kuwait, Lesotho, Liechten- 
stein, Luxembourg. Madagascar. Malaysia, Monaco. 
Namibia. Netherlands, New Caledonia. Norway. 
Pakistan, Portugal, Senegal. Slovakia, Swaziland, 
Sweden, Switzerland, Tabid. Vatican City. 

FRIDAY: Azerbaijan, Belarus. Belgium. 
Georgia, Kazakhstan. Kyrgyzstan. Moldova, Pakistan, 
Prarin , T nrfcmmiiaan. Ukraine. 

SATURDAY: Guatemala. 

Sources: JJ*. Morgan, Reuters. Bloomberg. 


erated Sunday that mechanical failure 
was the most likely reason for the crash 
of TWA Flight 800 last July 17 that 
killed all 230 people aboard. 

“I think that .me evidence as we’ve 
developed it to date would lead die in- 
quiry toward the conclusion that this was 
a catastrophic mechanical failure,” the 
FBI's director, Louis Freeh, said on the 
NBC News program “Meet the Press.” 

Mr. Freeh added that neither the FBI 
nor the National Transportation Safety 
Board, the lead investigating agency, 
had reached a formal conclusion about 
the midair explosion. “But the evidence 
is certainly not moving in the direction 
of a terrorist attack,” he said. “It is in 
fact moving in the other direction.” 

He said the Federal Bureau of In- 
vestigation hoped to reach a formal con- 
clusion by “mid- to late- summer" in 
conjunction with the safety board. The 
Paris-bound Boeing 747 exploded 
shortly after takeoff from New York’s 
Kennedy Airport. 

In November, 1996, James Kall- 
strom, the FBFs assistant director lead- 
ing the investigation, first put forward 
the theory that mechanical malfunction, 
rather than a bomb or missile, was the 

most likely reason that die center fuel 
tank exploded. 

■ Will Public Believe Findings? 

Matthew Purdy of The New York 
Times reported earlier: 

Nearly 10 months after the crash of 
TWA Flight 800 unleashed strong sus- 
picions of terrorism, U.S. law-enforce- 
• ment officials, now in the last stages of 
their criminal investigation, still have 
found no evidence of sabotage. 

But die increasing likelihood that the 
agents will determine that no crime oc- 
curred, coupled with the inability of in- 
vestigators to find the precise cause of the 


explosion, is forcing officials to confront 
the question of whether the public will 
accept the conclusions of their inquiry. 

“It doesn't do any good to conduct 
the most extensive investigation in avi- 
ation history and not have (he public 
believe it,” said Peter Goelz, die 
spokesman for the National Transpor- 
tation Safety Board. 

FBI officials, who have faced the near 
impossibility of proving that a crime did 
not happen, have pursued the possibility 
of a bomb or missile even in the absence 
of any physical evidence. 

A month ago, explosives experts at the 
federal Bureau of Alcohol, Tobacco and 


Forecast for Tuesday through Thursday, as provided by AccuWealher. 

Firearms concluded that there had been- 
an explosion of fuel vapors in the center! 
fuel tank of the Boeing 747 and that there- 
was no evidence of a bomb or missile,; 
two federal investigators said last week.! 

Still, FBI agents are examining every- 
hole and tear in the reconstructed fu-! 
selage for any evidence that a missile, an- 
explosive device or explosive shrapnel; 
may have tom through the plane. 

Even if the investigators say defin-; 
itively that the plane was not hit by a! 
missile, they must still explain reports' 
from more than 100 witnesses who have! f 
said they saw lights streaking toward the ' 
plane before it exploded. 



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With Budget Accord Reached, Clinton Can Begin Serving Second Ter 

By John F. Harris 

Washington Pvji Service 


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WASHINGTON — President 
Bill Umton let out a broad smile in 
the Oval Office and traded hi«h- 
fives with Vice President A1 Gore 
They were celebrating the start of 
Mr. Clinton's second term, three 
months overdue. 

The budget accord that he and 
Republican congressional leaders 
hammered out last week saves him 
the chance, according tolais polit- 
ical confidants and even some op- 
ponents, to re invigorate a presi- 
dency that lost momentum with 
astonishing speed after his Novem- 
ber victory because of the scandal 
over Democratic fund-raising. 

• The scandal does not go away, 
but now at least it takes place 
within the context of a significant 
policy achievement. The agree- 
ment, if Mr. Clinton and the Re- 
publicans continue their collab- 
oration tong enough to get it 
enacted, will most likely be the 
single most dominant feature of 

Mr. Clinton's domestic legacy, ac- 
cording lo several of his aides as 
well as presidential scholars. 

The aeaJ fulfills several of the 
key pledges that Mr. Clinton made 
in his bid for re-election. It elim- 
inates the deficit in five years 
while still leaving enough money 
for Mr. Clinton's plans to expand 
access to higher education, soften 


the blow on the reduced Medicare 
and Medicaid health care pro- 
grams and restore benefits to legal 
immigrants that were slashed dur- 
ing the overhaul of welfare last 

But the president got this only 
by accepting Republican premises 
that he previously vilified. The 
deal includes a significant share of 
the tax' cuts the Republicans 
wanted and scales back agencies 
in a way that Mr. Clinton never 

“I think it's an imponam 
achievement, but it's a shared 

achievement/’ said Charles 
Jones, a University of Wisconsin 
political scientist who has written 
about Mr. Clinton's presidency. 
' ‘Everybody has learned that they 
will do better with legislative pro- 
duction instead of gridlock.” 

It was also an achievement pro- 
duced with a markedly different 
style of presidential leadership 
than Mr. Clinton showed in his 
first term. During earlier budget 
battles, in 1993 and 1995, current 
and former aides recalled, Mr. 
Clinton was a hovering, omni- 
present figure. He wanted to make 
all the calls himself, edit legislative 
language himself, and regularly 
exploded in profane frustration 
when things were not going well.- 

This time, he was more de- 
tached. Although he made numer- 
ous phone calls ar key poinrs along 
the way — including a telephone 
barrage last week to Republican 
leaders and wavering Democrats 
on Capitol Hill — he left the day- 
in, day-out negotiations to others. 

The White House chief of staff, 

Erskine Bowles, supervised the 
process. Such aides as the national 
economic adviser, Gene Sperling, 
and the budget director, Franklin 
Raines, carried out roost of the 
direct talks. 

' ‘There is more of a sure-fooied- 
ness there.” said Rahm Emanuel, a 
White House senior adviser who 
has been with Mr. Clinton since bis 
first presidential campaign in 
1991. “There’s a poise that comes 
from knowing what his goals were 
and what he wanted.” 

for passing the Democratic deficit 
reduction package of 1993. and 
was now ready to make Repub- 
licans pay. 

This time the president had no 
such ambivalence and there was 
scarcely a whiff of internal debate 
at the White House. “Our match- 
ing orders since December were 
very clean We were supposed to 
try to create a bipartisan atmo- 
sphere that would produce a bi- 
e partisan agreement,” Mr. Sper- 
ling said. . . . . - 

This clarity about goals was an- The atmosphere in the talks was 
other critical break with the past, far less poisonous than in the past. 

exclaiming, “Thai's the craziest 
idea" before catching himself and 
apologizing for his intemperance. 

The talks had few leaks and, 
unlike those of 1995 and 1996, 

retirement benefits. But there is 
reason for skepticism about how 
long die new era of good feeling 
will last. 

White House aides have spoken 
jrt that has 

were not punctuated by public ac- of the exceptional rapport that has 
cusations of bad faith. grown up between Mr. Clinton 

White House officials are pre- and the Senate majority 

The budget talks of 1995 and 
1996 dragged on sullenly through 
two government shutdowns be- 
fore finally collapsing in failure. 
Then, the administration conduc- 
ted fierce debates about whether 
the object should be to strike a deal 
with Republicans or to avoid a 
deal and put the blame on Re- 
publican extremism. Mr. Clinton 
himself, according to aides, was 
ambivalent then: He complained 
regularly that he had got no credit 

“In ’95 our sense was that many 
things we believed in were under 
severe attack, that we had no 
choice — we had to fight back and 
fight back hard,” Mr. Sperling 
said. “This year the sense was that 
the differences were bridgeable.” 

That sense apparently prevailed 
on both sides. A participant in the 
talks recalled that once the chair- 
man of the House Budget Com- 
mittee. John Kasich. Republican 
of Ohio, objected to a point by 

dieting that this civility will be the 
model for the future. 

“This launches a process that’s 
got to move forward,” said the 
White House press secretary. Mi- 
chael McCuiry. “We’ve got the 
road map now, and the White 
House and Republicans will de- 
velop more confidence that they 
can work together on other is- 

Those issues. McCurry and oth- 
er aides said, include assembling 
majorities to pass the budget 
agreement, winning Senate ap- 
proval of an expansion of the 
NATO alliance and, further in the 
future, establishing a bipartisan 
commission to address the soaring 
long-term costs of programs such 
as Medicare and Social Securitv 

Trent Lott, Republican of Mis- 
sissippi. but Mr. Lott is a good bit 
less effusive. 

“It’s a tedious and evolving re- 
lationship,” he said in answer to a 
question. “We don’t agree polit- 
ically. We’re of different parties. 
But he’s where he is and I’m 
where I am. The president of foe 
United States and foe majority 
leader of foe United States Senate 
need to communicate and deal 
with each other in good faith." 

For foe president, it's not just 
the relationship with Republicans 
that matters. 'Hie events last week 
demonstrated anew a capacity that 
has been one of Mr. Clinton's sig- 
nal strengths as a politician: foe 
ability to bridge competing fac- 
tions in his own party. 

ito Terr 

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In First Game, at Least, Kasparov Thrashes Deep Blue 


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By Rajiv Chandrasekaran 

Washington Post Sen ice 

NEW YORK — When foe world 
chess champion, Garry Kasparov, 
entered a windowless 35fo-fIoor 
room to begin a six-game com- 
petition against one of the world’s 
most powerful supercomputers, for 
more was at stake than foe winner’s 
prize of $700,000. Up for grabs 
were some basic human percep- 
tions about computers. 

With its relatively simple rules 
but complex play, chess has been 
viewed as one of foe ultimate ex- 
pressions of human intelligence. 

While computer programs have 
been able to beat recreational play- 
ers since foe 1970s, grandmasters 
tike Mr. Kasparov have custom- 
arily been able to use brain cells to 
defeat electronic circuitry. 

Enter Deep Blue, a 1.4 ton su- 
percomputer designed by Interna- 
tional Business Machines Corp. 
that can compute 200 million pos- 
sible moves on a chess board every 
second. Infebruary last year, a less 
sophisticated version of foe ma- 
chine stunned the chess world with 
a first-game victory over Mr. Kas- 
parov, but foe grandmaster rallied 
to win the match. • ■ 

Saturday’s match, won by Mr. 
Kasparov after the computer 
resigned on th€k; 45th move,, fea- 
tured what some chess’ iexperts 
called aggressive playing by Deep 
Blue. The match took nearly four 
hours. The second game was set for 
Sunday. The new; computer has 
been juiced up with faster chips, 
sharper programming’ and advice 
from a former U.S. chess cham- 
pion, leading some observers to 

The Moves 

Game I — Ret! Opening 





irO ChiinrBM'al Knurl* 

Garry Kasparov, right studying the board as the game started. 



3. 63 

4. Bb2 

5. Bq2 

6. 0-0 

7. S3 

8. Nbd2 

9. h3 

10. e3 

11. Qel 

12. a3 

13. Nh4 

14. Nhf3 

16. Nh2 

17. Qcl 

18. R el 

19. Ndfl 

20. de 

21. Ne3 

22. Nhfl 

23. hg 





















25. Nxe3 

26. Khl 

27. Re2 

28. b4 

29. ef 

30. f4 

31. fxo5 

32. gfi 

33. BC3 

34. Oil 

35. Rxfl 

36. Kol 

37. BK3 

38. KJ2 
40. Rgi 

42. NX04+ 

43. RX04 

44. f6 

45. fl7 























A Yale University computer sci- 
ence professor, David Gelertner. 
predicted that a Deep Blue victory 
would be a seminal cultural event, 
“like Lindbergh flying the At- 
lantic.” Whether thai will happen 
won’t become clear until later this 

It has long been accepted as face 
that machines and other species can 
be stronger and faster than humans. 
Computers have been seen as more 
adept at rote tasks foal can be re- 
duced to numerical calculations. 

. suciras solving equations or storing 
driver license information. 
They've stumbled, however, when 
faced with challenges that involve 
more than numbers — recognizing 
shapes, understanding spoken 
speech and playing high-level 

With foe Deep Blue project, said 

ture — bow we will be using com- 
puters in the future. ' ’ 

At the same time, the computer 
is not yet what researchers would 
call “intelligent.” though its soft- 
ware draws upon years of so-called has spent eight weeks preparing for 
artificial intelligence research, the match by trying out some of his 
Deep Blue does not invent moves; moves against a personal com- 

Russian who has been foe world 
chess champion since 1985, said 
before the match. “I believe they 
always will be beatable.” 

The grandmaster, who said he 

question whether Mr. Kasparov .. Chung-Jen Tan, its manager, “we 

* - •• — 

will be able to notch another vic- 
tory. ’ 

“This is a very important mile- 
stone,” said Oliver Strimpel, ex- 
ecutive director of foe Computer 
Museum in Boston. “Chess play- 
ing is a domain that humans have 
viewed as sacrosanct, something 
that- is quintessentially possessed 
-by human intelligence. This could 
change all that/’ 

are demonstrating we can use a 
computer to solve problems that are 
not just numerical calculations. 
Suddenly this computer can be 
used to solve problems we have 
always solved with human intel- 

Win or lose,. Mr. Tan said, the 
.result will be staggering. “This is 
not just about-a chess’ match/' he 
said. ‘‘This is really about foe fu- 

rather, it relies on reams of com- 
plex, equation-filled computer 
code that tells it whai to do in 
particular situations. Most impor- 
tant, it cannot learn from its mis- 
takes. . . 

’ ’ Computers themselves have no 
more intelligence than a wooden 
pencil,” said Ben Shneiderman, di- 
rector of the human-computer in- 
teraction laboratory at the Uni- 
versity of Maryland 

That point is not lost on Mr. Kas- 
parov, who contends that his sin- 
gular advantage over Deep Blue is 
his intuition. Unlike foe computer, 
which, is evaluating billions of pos- 
sible positions as many as 15 turns 
ahead to determine which piece to 
move, Mir. Kasparov is relying on 
such nonnumerical considerations 
as his experience and gut instinct, 
winnowing down myriad possibil- 
ities into a few scenarios that he 
plays out in his bead. 

“The computer has generic 
weaknesses,” Mr. Kasparov, 34, a 

purer, has complained that he has 
not been allowed to see any of Deep 
Blue's practice games, while IBM 
scientists reportedly studied 
dozens of Mr. Kasparov’s past 
games as they programmed jhe ma- 
chine. ’ ■ \ 

As a result, Mr. Kasparov said he 
planned to play a very different sort 
of chess over foe next week, mak- 
ing nontraditional moves designed 
to throw foe computer off balance. 
‘ ‘This is about competition and I'm 
going to do whatever it takes to 
win.” he said 

The match is taking place in a 
small, television studio-like room, 
complete with bookshelves, a large 
globe, a Persian carpet and a 
wooden table decorated with Rus- 
sian and U.S. flags. 

Compared with the ori 
Blue, which garnered world 
fame despite eventually losing, 4-2. 

to Mr. Kasparov 

year, foe new machine 
souped up in several ways: 

It is about twice as fast. The IBM 
RS/6000 SP machine has 32 super- 
fast microprocessors working in 
parallel, meaning it can handle 
multiple complex calculations si- 

It is more flexible. New tools 
allow Mr. T an and his team to make 
adjustments to foe computer's 
playing style after each game, 
much like mechanics tuning up a 
race car. 

It is sawier. The new Deep Blue 
has been tutored by a grandmaster, 
Joel Benjamin. Its software is bet- 
ter able to determine which are foe 
strongest moves of foe billions it 

“The computer is going to be 
competing at a level we’ve never 
seen before.” said Mr. Tan, who 
unabashedly has been predicting 
that Deep Blue will win a majority 
of the games. Other computer re- 
searchers and many chess experts 
are not so sure. 

* ‘This is an amazing computer/ ' 
said Tony Marsland, a professor at 
foe University of Alberta and pres- 
ident of foe International Computer 
Chess Association, “but I don’t 
think foe computer's explicit com- 
mands will be a match for Kas- 
parov's strategic ability.” 

IBM plans to use the complex 
logic equations written for Deep 
Blue for a host of commercial ap- 
plications that’ require sophisticat- 
ed probability analysis, such as re- 
search on new drugs and weather . 
forecasting, Mr. Tan said. 

The company declined to spe- 
cify how much it has spent directly 
on developing Deep Blue. 

The match also is great publicity 
for the company. More than 300 
journalists from all over the globe 
are covering the event, creating a 
bigger media spectacle than the 
Bobby Fischer-Boris Spasslty 
world championship match in 
1972, chess experts said. In ad- 
dition to selling out a 500-seat aud- 
itorium in foe basement of a build- 
i is being played. 


morally losing, 4-2. ing where the game is being played 
in Philadelphia last IBM is providing live coverage a 
machine has been the World Wide Web at http:/ 

Showdown at the ‘Republic of Texas’ Ends in Surrender 

By Sara Howe Verhovek 

Ar' fu' Tort Times St nice 

FORT DAVIS, Texas — 
The standoff between Texas 
authorities and an armed sep- 
aratist group ended over the 
weekend when the group’s 
leader, who had vowed to 
wage an Alamo-style fight to 
the dep th, walked out of his 
trailer with three other mem- 
bers and surrendered here in 
the high desert of West 

The leader, Richard 
McLaren, 43, dressed in 
boots, jeans, a tweed coat and 
a cowboy hat, gave himself 
up after a “military style ce- 
remony” at which he and his 
followers . laid down their 
arms, ' said Mike Cox. a 
spokesman for foe state De- 
partment of Public Safety. 
TTMt!! '."Cox /said two other 
group members had fled on 
. foot into foe Davis Moun- 
tains, where 1 00 law-enforce- 
ment agents have been sur- 
rounding the trailer all week. 
He said the state authorities 
were trailing foe two with 
bloodhounds, horses and a 
helicopter, and were confid- 
ent of finding them quickly . 

The surrender under a bril- 
liant sun came a few hours 
after Evelyn McLaren walked 
out or the trailer and gave 
herself up to the authorities. 
She married Mr. McLaren 
last December in a ceremony 
sanctioned only by the Jawsof 

as the RepublK°o? Texas, 
Which holds that Texas was 
jfflegafiy annexed by the 
pnited States in 1845 and 
thus remains an independent 
cation. Mrs. McLaren, a 
former postal worker from 
Fort Worth, Texas, sur- 
rendered after an emotional 

appeal here from two of her 

Mr. McLaren ’s lawyer, 
Terence O’Rourke, said that 
the state authorities and bis 
client had negotiated a signed 
agreement calling for a 
“Texas-wide cease-fire” in 
the war that Mr. McLaren de- 
clared last Sunday. He said 
that Mr. McLaren would be 
given an opportunity to state 
his case, including his con- 
tention that be should be giv- 
en diplomatic immunity, be- 
fore a federal judge. 

Neighbors who had been 
evacuated because of foe 
crisis were jubilant that it had 
wound down; though many 
said they were angiy that they 
were sml not able to return to 

their homes, apparently be- 
cause of the search for the two 
men who fled. 

More than a few neighbors 
expressed disappointment 
that Mr. McLaren, who has 
long been widely detested 
here for his legal confronta- 
tions with town residents, was 
not killed during foe siege. 

The bizarre standoff here 
had many elements of farce, 
or perhaps of a bad B-movie. 
At the same time, though, it 
was handled by foe state as a 
deadly serious affair, in 
which it has said it is de- 
termined to serve criminal 
warrants on at least five of (be 
six. people inside foe trailer 
with minimal violence or risk 
to its officers. 

The Republic of Texas 
members “must be held ac- 
countable for breaking the 
law, ’ ’ Governor George Bush 
said. “They're kidnapping 
people in the state of Texas 
with guns.” 

Across foe nation, law-en- 
forcement authorities have 
been haunted by the legacy of 
the botched and deadly fed- 
eral assaults on a white sep- 
aratist in Ruby Ridge, Idaho, 
in 1992, whose unarmed wife 
was killed by a federal sniper, 
and on foe Branch Davidians 
near Waco in 1 993, more than 
80 of whom perished in a fire 
after Federal Bureau of In- 
vestigation tanks punched 
open their compound and in- 
serted tear gas. 

ay scat 

last year with the freemen of 
Montana, which ended with a 
surrender and without a 
single shot fired, the oper- 
ation by Texas authorities 
may well be cited as a model 
for ftefiling with armed anti- 
government belligerents. At 
the same time, though, some 
critics suggested this week 
that foe hands-off treatment 
might encourage other groups 
and that the state should have 
acted more quickly and force- 
fully to root out the rebels. 

In the immediate hours 
after his surrender, Mr. 
McLaren remained at foe 
command center where a ' 
Texas Rangers captain had 
spent the week alternately ne- 

gotiating with him and hear- 
ing him threaten to kill as 
many of foe law officers 
around him as he could. He 
was to be taken eventually to 
the Presidio County jail in 
Marfa, Texas, and he is likely 
to be charged with conspiracy 
to commit kidnapping and as- 
sault and a variety of other 
crimes. If convicted, he could 
spend foe rest of his life in 

The exact size of foe ar- 
senal at' foe group's “em- 
bassy,” as they called the 
trailer where they holed up, 
remained unclear. Mr. Cox 
said there were at least 10 
rifles, several pistols, and 500 
to 700 rounds of ammuni- 

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Weld’s Unusua l Career Move 

BOSTON — Governor William Weld was an early and 
vocal advocate of the North American Free Trade Agree- 
mem. With the state's economy heavily global and know- 
ledge-based, he told voters, there was no danger of jobs 
fleeing Massachusetts for Mexico. 

He never mentioned, however, that he might. 

In announcing last week that he would accept President 
Bill Clinton's nomination as ambassador to Mexico, the 
Republican made a daring exit from electoral politics. He 
is leaving at foe height of his popularity in this'Demo- 
cratic stare, forfeiting his national stature as one of foe 
Republican Party's more unusual stars: a fiscal con- 
servative who embraces abortion and gay rights. 

“This is a classic Bill Weld move." said his chief of 
staff. Virginia Buckingham. “He's supremely self-con- 
fident and sure of his place in the world, and doesn't need 
politics or national prominence to be happy.” 

Barely a year after winning re-election by a record 
margin in 1994, Mr. Weld began running for foe Senate, 
challenging foe Democratic incumbent, John Kerry. After 
losing that race decisively, he pledged to finish his term: 
“The message is I'm a real good governor and I should 
stick to that.” 

The race to succeed Mr. Weld is heating up. Many 
voters complain that Mr. Clinton gave Mr. Weld foe 
diplomatic job to help clear the way for Representative 
Joseph Kennedy H. nephew of Senator Edward Kennedy, 
who lobbied heavily for foe Weld appointment. (WP) 

Immigrants Get Benefits Back 

WASHINGTON — Mr. Clinton forced reluctant Re- 
publicans to restore disability and health benefits to 
several hundred thousand legal immigrants as pan of foe 
budget agreement announced this week. 

Budget negotiators said the agreement would provide 
$10 billion over foe next five years to aid foe immigrants, 
whose benefits were cm by foe welfare bill that Re- 
publicans pushed through Congress last year. 

In addition, officials said, foe agreement would provide 
$4.5 billion for initiatives to move people from welfare to 
work. Some of the money is intended to create jobs for 
able-bodied adults who. under foe welfare law. may 
receive food stamps for only three months in any 36- 
monfo period unless they are working. (NYT) 

Quote /Unquote 

Representative Frank Wolf. Republican of Virginia, 
one of (be House Appropriations subcommittee chairmen 
who will be charged with sorting out foe specifics of the 
agreement to balance Che budget by 2002: “There’s a long 
way to go. The final chapter's been written. Now we’ve 
got to write the chapters before it.” (WP) 

Away From Politics 

• Cigarette producers, faced with pressure from state 

attorneys general and public-health groups, have dropped 
a demand for complete legal protection in talks on a 
blanket settlement of tobacco-related lawsuits, people 
involved in the negotiations said. (NTT) 

A bald eagle has been hatched iu the wild on an island 
in the Hudson River, foe first eaglet hatched along the 
3 15-mile long river in 100 years, according to Peter Nye. 
chief biologist in New York Stale’s endangered species 
program, who documented the event. {NYTi 

• The actor Charlton Heston was swarmed by auto- 

graph seekers after winning a National Rifle Association 
board seat over the weekend at foe organization's con- 
vention in Seattle. (AP) 

In this Tuesday’s 





years of 
the Cannes 
Film Festival 

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= PAGE 4 


Bangladesh Confronts Its Past and Future With Trial of Leader’s Killers 

By John F. Bums 

New York Tunes Service 

DHAKA. Bangladesh — More than 
21 years after this poverty-stricken na- 
tion lost its first leader and most of his 
family in an assassination that marked 
the start of a long and turbulent period of 
military rule, a trial of the accused as- 
sassins has finally begun. 

In a temporarily converted guard- 
house at the gates of the Dhaka Central 
Jail, six people, four of them former 
army officers, have gone on trial for the 
killing on Aug. 15, 1975, of Mujibur 
Rahman, who led Bangladesh's 
struggle for independence from 
Pakistan and became its leader. 

The fusillade of automatic fire that 
felled Sheikh Mujib also killed nine 

members of his family, including his 
wife, three sons, two daughters-in-law, 
a brother, a brother-in-law and a neph- 

More is at stake in the trial than the 
guilt or innocence of the 20 people 
charged, all bat six of whom have died 
or fled the country. For Bangladeshis 
hopeful of convictions when the trial 
ends, possibly months from now, the 
hearing has become a watershed in the 
life of the country, an occasion to 
demonstrate that it is Anally becoming a 
nation under law. 

For many in this country of 120 mil- 
lion. the trial is a matter of pride as well * 
as justice. Bangladesh’s belief in itself, 
badly battered after the 1971 civil war 
that won it independence but cost at 
least a million lives, was deeply af- 

fronted when then U.S. Secretary of 
State Henry Kissinger described the 
country as a “basket case.” 

Bangladesh has made major econom- 
ic and social progress in recent years. Its 
last military government Collapsed un- 
der popular protest in 1990. But many 
here still feel weighed down by a past of 
military coups and political killings, and 
by Bangladesh's status as one of the 
world's poorest nations, with millions 
forced to migrate every year in search of 

Still, in looking to the trial of Sheikh 
Mujib’s killers for vindication, the 
country faces a new obstacle: the person 
who ordered the investigation that led to 
the trial was a daughter of the assas- 
sinated sheikh, die woman who is the 
country's new prime minister, Hasina 

Wazed. She is one of only two im- 
mediate family members not to have 
been caught up in die massacre, and so 
has had to face the accusation that she is 
seeking personal vengeance. . 

The accusation incenses Sheikh Has- 
ina, 49, who won election last June to 
take over as prime minister from Khal- 
ida 71a , widow of Major General Ziaur 
Rahman, who seized power after the 
1975 killings and was in turn assas- 
sinated, in 1981. Begum Zia's enmity 
with Sheikh Hasina has dominated pol- 
itics in the 1990s, and die former's 
supporters have protested the loudest 
against the trial. 

“This trial is just because the killers 
violated human rights in the most brutal 
way," Sheikh Hasina said in an in- 
terview. She added that “these killers" 

had murdered not only the country's 
independence leader but also “women 
and children, including a minor 

“Was that not a gross violation of 
human rights?** she asked. “What does 
the world have to say about that?” 

Any discussion about die killings 
provokes strong feelings in the prime 
minister, whose eyes bnm with tears at 
the recollection. 

In the reception room of her office, 
where she greets visitors in a gle am ing 
white abaya. a full-length hooded gown 
worn by Muslim women who have 
made the pilgrimage to Mecca, she sits 
beneath a large painting of her father. At 
dither end of the room are photographs 
of the family members who died with 
him, including Sheikh Hasioa's young- 

A Changing Role for ‘Asia’s Finest 9 

Hong Kong’s Police Vow Not to Turn Into Oppressors After Handover 

By Keith B. Richburg 

Washington Post Service 

HONG KONG — Police Launch No. 
32 sliced through the murky gray-green 
waters of Aberdeen, navigating the nar- 
row path between fishing junks, sampan 
taxis and the gaudy Jumbo floating sea- 
food restaurant. Finally, the policemen 
settled on a huge vessel lying at anchor, 
and they swung into action. 

The siren screeched the blue tight 
flashed and PL 32 sidled up alongside 
the suspicious trawler. 

“This is our bread and butter, these 
sorts of vessels," Rob Morley. an of- 
ficer. said as the policemen scrambled 
over the side and began their brisk in- 
spection of what turned out to be a legal 
cargo in containers beneath the deck. 

Six years ago, when Mr. Morley left 
Britain to sign on as a member of the 
Royal Hong Kong Police in the crown 
colony, routine inspections like this one 
for smugglers almost always netted re- 
sults. “Now there's not a lot to do,' ’ Mr. 
Morley said as the policemen checked 
the paperwork of the family members 
living aboard the junk. Smuggling goes 
pn. but it goes by land. “We're more 
like traffic cops,” he said. 

There may not seem to be much to do 
for this crew now. but Hong Kong's 
27,000-member police force is inher- 
iting a big job with expanded powers 
and responsibilities once this colony 
reverts to rule by China on July 1. With 
the Royal Navy all but gone, and the 
remnants of the British Army garrison 
winding down in preparation for with- 
drawal by midnight June 30, it falls to 

the police to be the enforcers of Hong 
Kong's borders, land and sea. 

Without the Royal Navy and marines 
providing backup, the police force alone 
must maintain the peace and pursue the 
smugglers; relying on their own arsen- 

The incoming government of Tung 
Chee-hwa, China's chief executive for 
Hong Kong, is proposing to give the 

¥ slice broad new powers. Under Mr. 

ling’s proposals, set to be adopted after 
China takes charge July 1, the police 
will have the power to ban public rallies 
or demonstrations on the grounds of 
protecting China's national security. 

How the police perform in their new 
role will have major consequences for 
political life in Hong Kong and for 
China's promise to allow it a high de- 
gree of autonomy. Waiting in the wings 
If the police fall down will be more than 
6.000 Chinese troops. 

The Chinese Army is widely disliked 
and feared here because of its role in the 
massacre of demonstrators that ended 
the pro-democracy protests at Beijing's 
Tiananmen Square in 1989. The Basic 
Law, which is the agreement laying out 
how Hong Kong wlU be governed after 
July, says that after the transfer, the 
Hong Kong government “may. when 
necessary, ask the central people's gov- 
ernment for assistance from the gam son 
in the maintenance of public order and 
in disaster relief.” 

The document also gives Beijing the 
right to declare a stare of emergency in 
Hong Kong whenever there is "tur- 
moil” that threatens China's “national 
unity or security." 

Troops can be called in by the chief 
executive to deal with an “internal se- 
curity situation," said Ng Ching-kwok, 
the senior assistant police commission- 
er and the director of operations. “But 
only if ihe situation gets out of hand. 
Sitting here, I can assure you — I won’t 
let it get out of hand. ’’ 

The first major test will come early — 
the day of the handover. Police are 
bracing for a week or more of demon- 
strations, rallies, possibly even a sit-in 
by members of the soon-to-be-abol- 
ished local legislature in the legislative 
chambers to protest their removal. 

“Our contingency planning takes in- 
to consideration all of these possibil- 
ities." Mr. Ng said. With large numbers 
of heads of state and other VIPs ex- 
pected to attend the ceremonies, the 
police are aware that many dignitaries 
“bring their own problems with them,” 
as a senior officer put it. 

Opinion surveys generally show that 
Hong Kongers support the police, and, 
because of the vigorous work of an 
Independent Commission Against Cor- 
ruption. the force largely has shed its 
earlier reputation for graft and abuse. 
The police are widely called “Asia's 
finest, * * and statistics indicate that Hong 
Kong is one of the world's safest cit- 

But an enhanced role for the police in 
a Chinese-run territory is raising the 
issue of whether the force could become 
an instrument of repression under the 
new regime. 

The police are doing their best to 
dispel that fear. * ‘People aren't going to 
wake up on July 1 to see policemen in 

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Pew frricVAgmoc Fmce-Piuie 

CHALLENGE — Christine Loh, a Hong Kong legislator, an- 
nouncing Sunday the formation of her Citizens Party. She expressed 
‘‘serious alarm** at the outlook for civil liberties under Chinese rule. 

green uniforms with stars on their 
shoulders armed with Kalashnikovs." 
said Chief Superintendent Harry Blud. 
the. police spokesman. “We're not go- 
ing to turn into a truncheon-wielding 
gang of oppressors. ’ ’ 

“Apart from changes to our uniform 
insignia, there won’t be any other 
changes,” Mr. Ng said. He said the po- 
lice consistently have shown wide tol- 
erance toward demonstrators, without re- 
gard to the content or cause of their 
protest, and that was unlikely to change. 

But some here are wary. “In terms of 
bow the authorities will use the police.' ' 
said Emily Lau, a legislator speaking 
while mat chin g in a demonstration 
against the new police powers. “I have 

no illusions. They, the police, will do 
what they are told." 

Another question is what role, if any, 

China's public security bureau will play 
in Hong Kong. The Basic Law gives the 
Communist government in Beijing a 
role to play in defense and foreign af- 
fairs here, and orders the local gov- 
ernment to draft laws against treason 
and subversion. But will Chinese se- 
curity agents become active here in 
tracking, even apprehending, dissidents 
as potential threats to China? 

“We don't know,” said James To, a 
lawyer and a Democratic Party member 
of the legislature who specializes in 
police matters. “Formally or inform- 
ally, they won’t tell you." 

est brother. Sheikh Rasel. who was 10. 

At the trial, the prosecution case re- 
counts events that have never been dis- ( 
pined, partly because the assassins, in 1 
the heady period after the overthrow, 
gave their own triumphant accounts. 

Attacking just before dawn, several 
of the army officers now under indict- 
ment, along with civilian co-conspir- 
ators. shot their way into Sheikh 
Mujib’s home on Road No. 32 in 
Dhaka’s plush Dhalmondi district. 

They gunned down the first family 
member to confront them, one of Sheikh 
Mujib’s sons, then went upstairs to the 
family's living quarters, machine-gun- 
ning the Sheik as he emerged from his 

Moments later, the other members of 
the family, including Begum Rahman, 
the Sheik's wife, were shot Other reia- 
. rives were killed in a similar attack in 
another Dhaka home. 

The military government that took 
over sought to dikance itself from the 
brutality by rounding up the army ma- 
jors who had led the attack and sending 
them- abroad, first to Libya, then to 
diplomatic posts around die world. But 
suspicions lingered that the real mas- , 
termind might have been General Zia, ft 
who was deputy army chief at the '* 

Critics of the trial have called it il- 
legal, because of a law passed by a Zia- 
controlled Parliament in 1978 that 
offered blanket immunity for all acts 
committed in the overthrow of Sheikh 
Mujib *s government. The cuircm gov- 
ernment repealed the law shortly after 
taking power last year, at a time when 
opposition politicians led by Begum Zia 
were boycotting the new Parliament 

Supporters of Begum Zia say that if 
Sheikh Hasina had really wanted to en- 
trench the rule of law, she would have 
halted the cycle of retribution in 
Bangladeshi politics by drawing a line 
under the 1975 killin gs and leaving 
those responsible, mostly men now in 
their late 50s and 60s, to enjoy an un- 
troubled retirement 

By putting the conspirators on trial, 
the critics say. Sheikh Hasina is trying to 
rewrite the history ofher father's tenure. 
Even supporters of Sheikh Mujib ac- 
knowledge a shift at that time toward 

one-man rule; suppression of indepeod- I 
ent newspapers and other forms of crit- ^ 

icism, and violence against opponents. 

“The facts are admitted — there was 
apian, and there was a killing," said 
Mahbubur Rahman, chief defense coun- 
sel in the trial, who is no relation to 
Sheikh Mujib. But Mr. Rahman — who 
is basing the defense on chums that the 
conspirators were motivated by a desire 
to rid Bangladesh of what was becom- 
ing a dictatorship — said Sheikh Hasina 
should worry for herself. 

“She should consider," he said. 





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Both Koreas 5 Red Cross Officials Meet on Food Aid 

“Perhaps in two or three years Begum 
Zia will c 

By Steven Mufson 

Washington Post Service 

BELTING — With the threat of wides; 
famine looming in North Korea. Red Cross 
officials from North and South Korea held their 
fust meeting in five years over the weekend to 
try to resolve disputes blocking deliveries of 
emergency food aid from the South. 

The two delegations held talks Saturday for 
two hours at a hotel here. 

Officials of the International Committee of 
the Red Cross said the delegates had discussed 
three issues: what route the food aid would take 
to North Korea, how South Korean aid pack- 
ages and bags would be labeled and how the 
delivery of the food would be monitored to 
make sure it got to the poor and hungry instead 

of the military and privileged others. 

TTiere was no resol ution of the issues, but the 
two sides are to consult with their governments 
and reconvene Monday. 

South Korea wants its food aid to go through 
a border point along the Demilitarized Zone 
where the truce ending the 1950-53 Korean 
War was signed. Currently all food aid to North 
Korea either travels by rail from China or 
arrives at the North Korean port of Nanpo. 

South Korean Red Cross officials also want 
the bags and packages of food clearly marked 
as coming from South Korea, a point the North 
Korean government is likely to resist because it 
would represent an embarrassing admission of 
failure in the CommunistNorth, which has long 
preached self-reliance. 

Whether the food reaches the truly needy is 

also a key issue for donors. Visitors to Pyong- 
yang see little sign of famine or hunger, raising 
suspicions that die government is giving pri- 
ority to people living in the capital. 

The Last intra-Korean Red Cross talks were 
held in August 1992 in Panmunjom, the only 
border crossing point between the two 

U.S. and the North Talk About MIAs 

Talks between the United States and North 
Korea over the fate of American servicemen 
missing from the 1950-53 Korean War opened 
Sunday at an undisclosed location in New 
York, The Associated Press reported, quoting a 
U.S. Defense Department spokeswoman. Lieu- 
tenant Colonel Joan Ferguson. She said the 
talks would last several days. 

come back to power, the tables 
will be turned and these so-called killers 
will walk free." 

Bui many Bangladeshis believe that 
the real reason Begum Zia and her sup- 
porters oppose the trial is that it may 
discredit General Zia. 

Early arguments have focused on the 
only woman indicted, Zobaida Rahman, 
wife of one of the army majors who fled 
abroad. She is said to have admitted to 
meeting General Zia. along with others, 
in the summer of 1975 at the 'main 
military barracks in Dhaka, where ac- 
cording to her alleged confession the 
general is said to have told the con- 
spirators. "Unless you do something, 
the fate of this country cannot be 

Mrs. Rahman has recanted the con- 
fession, saying that she made it because 
interrogators held her down and 
threatened her with attack dogs. 




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50,000 in Taipei Protest Crime 

TAIPEI — More than 50,000 demonstrators lay on the 
boulevard in front of Taiwan's presidential office Sunday to 
protest the government’s failure to check violent crime. 

Shocked by the recent kidnapping and murder of an 
actress’s teenage daughter, the protesters demanded the 
resignation of Prime Minister Lien Chan. 

Carrying signs that read “Outrage" and “Grieve,” the 
crowd called on President Lee Teng-hui to apologize and on 
Mr. Lien to resign. 

“We demand a reshuffle of the cabinet," a protest leader 
said, reading a statement in four languages spoken by ethnic 
groups in Taiwan. 

In the latest of a string of violent crimes in the last year, 
the police found the body of Pai Hsiao-yen. the 17-year-old 
daughter of the actress Pai Ping-ping, floating naked in a 
river last month. 

The kidnappers, who remain at large, strangled her with 
two ropes, bound her hands and sank her in the river with 

Activists said the murder was a stark example of how the 
government was failing to protect its people. 

The rally, despite the presence of several party banners, 
remained largely nonpolrtical. (Reuters) 

The tourists, most of whom were Thais vacationing 
during a long holiday weekend, were picked up by fish- 
ermen plying the waters near Flower Island, about 24 
kilometers (15 miles) from Phuket in the Andaman Sea. 

A significant number of foreigners were among the 
passengers, however, because Phuket, 650 kilometers 
southwest of Bangkok, is Thailand's most popular island 
resort with foreign tourists. 

The boat, the King Feny. hit the reef about 10 A.M. 
Lieutenant Peerapat said that there were life jackets for 
everyone aboard and that the boat took nearly an hour to 
sink, giving the fishermen ample time for the rescue. (AP) 

Australian Politician Is Pelted 

No Losses as Phuket Ferry Sinks 

BANGKOK — A ferry carrying 600 tourists sank 
Sunday after hitting a reef near an island off the beach resort 
of Phuket, but all those aboard were believed to have been 
rescued, the police said. 

There were no reports of anyone missing or seriously 
injured, said Lieutenant Peerapat Thingnga of the Phuket 

SYDNEY — The Australian politician Pauline Hanson 
was the target of heavy criticism Sunday as politicians, 
demonstrators and business leaders attacked her policies as 
divisive and ignorant. 

The criticism followed a protest in Western Australia 
state, where tomatoes, eggs and insults were hurled at Ms. 
Hanson as she arrived for a fund-raising breakfast in Perth. 

Ms, Hanson, who set off a bitter race debate last year, was 
surrounded by policemen and security guards and was 

Malcolm Fraser, a former Australian prime minister. ± 
joined other officials in attacking Ms. Hanson's policy of* 
restricted immigration, describing it Sundav as repugnant 
and offensive. ’ " 

"One thing is certain, her white, Anglo- Celtic Caucasian 
Australia would become full of racial discord and bit- 
terness.” Mr. Fraser said. 

Opinion polls last week showed that Ms. Hanson is 
attracting an increasing number of voters disillusioned with 
major parties. One poll said that about 10 percent of the 
voters support her One Nation Party. (Reuters I 



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Blair Puts Spin Doctor in Cabinet 

Labour’s Diverse Government Includes 5 Women 

LONDON — Britain's new prime 
minister. Tony Blair, gave a ministerial 
post Sunday to Peter Mandelson. the 
man who meticulously plotted the La- 
bour Party's crushing election victory. 

. A government spokesman said Mr. 
Mandelson would become minister 
without portfolio to help carry out gov- 
ernment policies and present them ef- 
fectively to the public. Mr. Blair also 
appointed Doug Henderson to be the 
new minister for Europe. 

Mr. Henderson was to meet Mr. Blair 
and Foreign Secretary Robin Cook to 
discuss a European Union meeting 
scheduled Monday, when Britain is set 
>ci take the first step toward signing the 
Elf’s Social Charter on workers’ 

Geoffrey Robinson, the former chief 
executive of the British carmaker Jag- 
uar. was appointed paymaster-general 
at the Treasury. He will be responsible 
for luring private cash into public in- 
frastructure projects. 

Helen Liddell, the former Scottish 
affairs spokeswoman, was made a min- 

ister of state at the Treasury. 

Mr. Blair made most of his cabinet 
appointments Saturday, and while there 
were no surprises, there were many 
firsts: He appointed a record five wom- 
en. a blind man and an openly gay 

Analysts said it was a strong and 
knowledgeable cabinet: Almost all its 
members served in Labour's shadow 
government in the House of Commons, 
and all have known one another for 

But those sh-engths are also the cab- 
inet’s greatest potential weakness. Its 
members bring numerous long-standing 
rivalries — political, ideological and 
personal — which is perhaps inescap- 
able in a system where almost everyone 
in power is drawn from the same pool, 
the House of Commons. 

The chancellor of the exchequer, 
Gordon Brown, is a power center unto 
himself. He has his own loyal party 
following and was a rival of Mr. Blair’s 
for the party leadership. It appears that 
Mr. Brown, who has longed to live at 

Britain Won’t Return Elgin Marbles 


LONDON — Chris Smith. Bri- 
tain’s new heritage secretary, on 
Sunday ruled out returning the so- 
called Elgin marbles to Greece. 

“We decided it was not a feasible 
or sensible option: we won't do it." 
Mr. Smith said on BBC television. 

The return of the Classical sculp- 
tures. brought to London nearly 200 
years ago from Athens, has been a 
long-standing Greek demand. 

Hopes had risen in Greece that with 
Tony Blair of the Labour Party- having 
won Thursday ’selection in Britain, the 

return of the treasures might be at 
hand. But Mr. Smith said die sculp- 
tures were an integral part of a British 
Museum collection that is visited by 
millions of people each year. 

"It would make no sense at all to 
split up the British Museum collection 
in that way." he said. An entire room 
in the museum is dedicated to the 

Elgin marbles. Other opponents of the 
return have said the British Museum 

has protected the sculptures from 
damage, especially from air pollution 
in Athens that has eroded other Clas- 
sical sculptures. 

No. 10 Downing Street, will get to do so. 
The Blairs have decided that the small 
apartment that is the traditional home of 
the prime minister is not large enough 
for their family of five. They are looking 
at No. 1 1 next door, traditionally the 
chancellor's residence, 

David Blunkett. who is blind, was 
appointed education and employment 
secretary: Marjorie (Mo) Mowlam was 
named Northern Ireland secretary; 
Chris Smith, the first openly homosexu- 
al cabinet member, will be national her- 
itage secretary: and George Robertson 
was appointed defense secretary. Mar- 
garet Beckett is the new trade and in- 
dustry secretary, and Ann Taylor is 
leader of the House of Commons. 

The Labour government will adopt a 
policy of “constructive engagement" 
in the European Union. Mr. Cook, the 
foreign secretary, said in an interview 
published Sunday. 

“We want to take Britain our of the 
position of isolationism, out of inward- 
looking chauvinism and into being a 
leading member of the international 
community." Mr. Cook was quoted as 
saying in The Observer newspaper. 

The Conservative government, de- 
feated by a landslide in national elec- 
tions on Thursday, was wracked by di- 
visions over Europe. 

Labour is pledged to improve rela- 
tions with the EU. While Labour plans 
to sign the Social Charrer on woikers' 
rights, the Conservatives refused to en- 
dorse it. 

However, like the Conservatives, La- 
bour has a noncommittal attitude toward 
a single European currency, which is 
supposed to stan in 1999. 

Mr. Cook said Britain would sign the 
Social Charter at the EU summit meet- 
ing in Amsterdam that begins June 16. 
Eu members are expected to finalize a 
new Union treaty at the meeting. 

(Reuters, AP, WP) 

run Kjawo/Af enct Ft met -Press* 

BRITAIN'S FIRST KITTY — A policeman petting Humphrey, the 
famous Downing Street cat. on Sunday in front of Mr. Blair's residence. 

In Serbian City, Failure Splits Apart 6 Together 9 

By Jonathan C. Randal 

ttasliinutmt Past Scn m n.e 

NOVI SAD. Serbia — After just 
four months in office. Mayor Mihaljo 
Slivar lamented between sips of plum 
brandy, the Together opposition co- 
alition to which he belongs has 
“turned victory- into complete defeat” 
here in Serbia’s second-largest city. 

Even worse, he said in an inter- 
view, is the likelihood that the op- 
position's failure in the capital of Ser- 
bia's agriculturally rich, northern 
Vojvodina region is a preview of pres- 
idential and parliamentary elections 
later this year. 

The mess his political friends have 
wrought, Mr. Slivar said, is even more 
astounding than the worldwide 
prestige that the opposition coalition 
gained last winter in defying Pres- 
ident Slobodan Milosevic’s efforts to 
steal municipal elections. 

After a three-month campaign of 
street protests. Mr. Milosevic was 
forced to acknowledge opposition 
victories in 14 Serbian cities, includ- 
ing Belgrade, where his government 
sought to annul election results last 
November and stage new votes. 

The victory raised hopes among 
many Serbs that their opposition to 
Mr. Milosevic could expand to a na- 
tional movement in the coming pres- 
idential and parliamentary votes. 

But the sad performance here and 
elsewhere in towns that elected op- 
position leaders already has deflated 
those hopes considerably. 

Unlike the results in Belgrade and 
the 13 other cities. Mr. Milosevic 
accepted the vote in Novi Sad im- 
mediately. But as elsewhere, when his 
Socialists vacated city hall they left 
behind an empty treasury and unpaid 

A lack of money, however, was not 
the principal cause of the coalition’s 
undoing in Novi Sad, Mr. Slivar said. 
The mayor blamed himself and his 

Two of the coalition’s principal 
parties. Vuk Draskovic's Serb Re- 
newal Party and Zoran Djindjic’s 
Democratic Party, quarreled so loud 
and long that Together no longer lived 
up to its name among the Serbs and the 
28 other ethnic communities making 
up Vojvodina ‘s population, he said. 

Mr. Slivar blamed “leaders and 
their vanities, political fighting be- 

tween my Serb Renewal Party and the 
Democrats and fighting within my own 

He added, “I was surprised, but not 
shocked, by the degree of paranoia 
and schizophrenia in Serb politics." 

Mr. Slivar said he was “in trouble 
from the start for saying I was the 
mayor of all Novi Sad’s citizens and 
taken to task for not being Gestapo- 
like enough in purging Socialists." 

He cited his refusal to fire a com- 
petent horticultural engineer, who 

irks de- 

centralizing surge of nationalism that 
set in motion Yugoslavia's split and 
the wars in Bosnia and Croatia. 

Capitalizing on Together's 
squabbles, the three-party pro- 
autonomy coalition is now backed by 
70 percent of the local population, 
according to polls, which the mayor 
did not dispute. 

Last week, six of the mayor's own 
Serb Renewal Party members on the 

was running Novi Sad's pa 
partment, simply because he 

70-seat municipal assembly bolted to 
depriving Together of 
r. Slivar intimated that 

e was a 

*1 asked our party- members if one 
of us could do as good a job. and a 
woman with a high school education 
raised her hand and said she wanted 
and deserved the job." he said. “I 
asked why and she replied. ‘Because 1 
like flowers.’ ” 

The coalition's local partners re- 
cently split, playing into the hands of 
increasingly popular politicians who 
advocate '’autonomy for the region. 
Their Vojvodina Coalition is deter- 
mined to restore the region's 
auionomous status, which Mr. Mi- 
losevic abolished in I9S9 in Serbia's 

the autonomists, det 
irs majority. Mr. 
he and 15 others might follow soon. 

An autonomist leader, Nenad 
Canak. called the local government’s 
failure “totally predictable.” 

Along with the mayor. Mr. Canak 
criticized Together’s officials in Bel- 
grade formicromanaging the slightest 
decisions, which they said would 
have been best left to Novi Sad. 

“Together in office proved incom- 
petent and is discredited.” Mr. Canak 
said. “It has no ideas, no programs 
and is just against Milosevic. 

“We are also against Milosevic. 
He remains our number one enemy, 
but we do have ideas and a pro- 

Trouw k/Rcooi 

Jovanka Broz, widow of Tito, the 
former president of Yugoslavia, mourn- 
ing at his grave in Belgrade on Sunday, 
the 17th anniversary of his death. 

Ankara Assailed 
Over TV Closure 

Agent'* Fnuice-Pnsse 

ANKARA • — The closing of a 
private television channel after a 
broadcast implicating Foreign 
Minister Tansu Ciller’s husband in 
corruption led to fresh political tur- 
moil Sunday in Turkey, with even a 
cabinet minister criticizing the 

“This is a sad move that will be 
corrected." said Defense Minister 
Turhan Tayan, a member of Mrs. 
Ciller’s True Path Party. 

The opposition Motherland Parly 
said. “Ibis is an indication that the 
government will crack down on me- 
dia members broadcasting against 
the wills of the political power.” 

The police raided the headquar- 
ters of Flash TV in the city of Bursa 
Saturday evening, shutting it down 
one day after the channel 's Istanbul 
studios were attacked by uniden- 
tified armed men. It resumed 
broadcasting in the Bursa area 
Sunday but was not able to broad- 
cast to the nation via satellite. The 
Communications Ministry- said 
Flash TV "lacked permission to 
broadcast via Radiolink systems." 

In Turkish Village, Death by Cancer Is a Fact of Life 

By Stephen Kinzer 

«Vrw York Times Service 

KARAJN. Turkey — Although this 
place looks like any small fanning vil- 
lage in central Anatolia, people in the 
area believe it bears a curse. 

For the last several decades, and per- 
haps for much longer, the leading cause 
of death in Karain has been cancer. No 
one here is quite sure why. but the stark 
facts of death hang over Karain like a 
dark cloud and have given it a deep 
stigma People don’t want to buy farm 
or dairy- products that come from 
Karain. so they must be sold at low- 
prices to middlemen who disguise their 
origin. Women deny that they are from 
the village out of fear that if they tell the 
truth, no man will marry them. 

“The worst of it is that when you get 
any kind of pain and go to a hospi tal, the 
minute you say you’re from Karain they 
send you to the cancer ward," said 
Mustafa Eser. an environmental health 
technician who was sent here by the 
Turkish government six months ago. 

Even the name of the village is tied to 
illness. It is said to be derived from the 
Turkish word "karin." which means 
abdomen, supposedly a reference to the 

number of people in the village who 
suffered from abdominal pains. 

On the main street one day recently, 
several people refused to talk to a visitor 
about the health situation. 

“Nobody is sick here.” a young man 
said. Told that doctors in the region had 
testified to the contrary, he relented. 
“Well, it's true.” he said. "We don't 

died in their 30s. “People here are very- 
competitive. very greedy. They work 
too hard.” 

Dr. Izzettin Baris of Hacertepe Uni- 
versity in Ankara, who spent four years 
studying patients in Karain and later 
published a study of the epidemic, said 
he believed the cause was erionite. an 
asbestos-like fibrous mineral in the 

*Tlie worst part of it is that when you get any kind of 
pain and go to a hospital, the minute you say you’re 
from Karain they send von to the cancer ward.’ 

like to talk about it. The sick people are 
not in bed. They’re out working and 
crying to live normally. It's just better 
for every one not to dwell on it.” 

Villagers have varying explanations 
for the cancer cases, most of which 
affect the lungs and liver. Some suspect 
there may be silicon dust in the volcanic 
stone from which many local homes are 
built. Others blame asbestos in the earth 
or water from local wells. 

“I think it could be from the stress we 
live with here.” said Ali Dogan. 29, a 
fanner whose uncle and grandfather 

powdery soil that villagers use for 
whitewash, insulation, plaster and as a 
substitute for baby powder. 

“This is a 100-year-old epidemic, but 
records have only been kept since 1973,” 
he said. "The problem is only in Karain 
and two other villages very close by. Of 
the 300 people who were examined in 
Karain. 150 had cancer. Similar percent- 
ages were found in Sarihidir and Tuzkoy. 
By chance, these three villages were built 
on a spot where the soil contains erionite. 
No other village has the problem.” 

The leading causes of death in Turkey 

as a whole are heart and cardiovascular 
diseases. According to statistics com- 
piled in 1994. cancer accounted for about 
8 percent of the country's deaths. Doctors 
estimate that the rate in Karain and the 
two nearby villages is 5 to 10 times that. 

Several years ago. the government 
offered to move the 4.000 people who 
live in Karain and the two other afflicred 
villages to a site about six kilometers 
(four miles) away. Residents did not 
believe that such a modest move would 
help, and countered by asking fora tract 
on a verdant prairie 25 kilometers from 
Karain. No decision was ever made, so 
here the villagers remain. 

A doctor in the nearby town of Urgup. 
Ferii Kuz. said many villagers in Karain 
consider the cancer plague to be a fate 
they cannot escape. 

“They accept it as their destiny.” he 
Dr. Kuz said. “If they get sick, they 
don't go to a doctor. Even if they have a 
small problem like a bronchial infec- 
tion. they are afraid that if they go to a 
doctor they'll be told that they have 
cancer. So the cancer situation means 
that a lot of them die of other diseases 
that are curable. Taken together it’s a 
public health tragedy, and no one seems 
to be doing anything about it." 


French Polls Show 
Left Catching Up 

PARIS — A second opinion poll 
in 24 hours showed Sunday that 
French leftist parties were catching 
up on the governing center-right 
majority ahead of the May 25-June 
1 general election. 

The poll, to be published in the 
conservative daily Le Figaro, 
showed the left would win 262 
seats and the center-right 291 of the 
555 in France. The poll did not take 
into account 22 seats in overseas 

The same SOFRES poll, con- 
ducted a week ago, gave the left 225 
seats and the center-right 329: 

A separate poll, publishedearlier 
in the Journal du Dimanche, first 
showed the rise in pro-leftist votes. 
It predicted the left would win from 
255 to 285 seats and the center- 
right from 269 to 299 seats, figures 
also significantly higher than those 
found by the same poll a week 
earlier. ( Reuters I 

French Minister 
To Leave Hospital 

PARIS — Culture Minister Phil- 
ippe Douste-Blazy is expected to 
leave the hospital in two or three 
days after being seriously wounded 
in a knife attack while campai g nin g 
in southern France, officials said 

The minis ter was stabbed in the 
back by a mentally unstable man 
Friday evening while on the elec- 
tion trail in Lourdes, where he. is 

President Jacques Chirac had a 
long telephone conversation with 
him Sunday, the Elysee Palace said, 
reporting that he would probably be 
allowed out of the hospital by mid-: 
week, but would have to con- 
valesce for some rime. (AFP) 

Berlusconi Leads 
Opposition Attack 

MILAN — More titan 1 00,000 
supporters of Italy's main oppo- 
sition center-right bloc packed the 
cathedral square in central Milan 
over the weekend in an anti -gov- 
ernment rally a week before runoffs 
in key mayoral elections. 

“A coalition of powers is in- 
creasingly threatening our well-be- 
ing. our democracy, our future and 
die freedom of our children.” Sil- 
vio Berlusconi, the . center-right 
leader, told cheering crowds at the 
demonstration Saturday. 

The center-left government .is ‘ ‘a. ; 
regime disguised in white.glqves,f ; 
he said. “It is a left impregnated 
with ideology, with communism.” 

Mr. Berlusconi has stepped up his 
attacks on the government since 
center-right candidates took the lead 
in mayoral elections in the northern 
cities of Milan and Turin in the first 
round of voting last week. Runoffs 
will be held May 1 1 . (Reuters) 

Bonn to Maintain 
Cool Ties to Tehran 

BONN — Germany will remain 
cool in its relations with Iran fol- 
lowing Tehran's decision last week 
to refuse to readmit the German 
ambassador, a Foreign Ministry of- 
ficial said Sunday. 

In an interview Sunday with the 
radio station Deutschlandfunk. 
Werner Hoyer, a foreign affairs of- 
ficial, said Bonn sought to maintain 
a * 1 very cool and reasoned ’ ’ attitude 
and wished to observe political de- 
velopments within Iran "with de- 
tachment and tranquillity." 

Iran's ability to resume dialogue 
with Europe “does not deperufon 
rhe manner in which the Europeans 
reacted to such bullying.” the of- 
ficial added. (AFP) 

The EU 
This Week: 

InierHuiii'nut Herald Tribune 

Significant events in the Euro- 
pean Union this week. 

•National negotiators to the in- 
tergovernmental conference on EU 
reform meet in Brussels on Monday 
and Tuesday, providing the first 
chance for Britain's new Labour 
government to signal its acceptance 
of European labor legislation in the 
Social Charter as well as greater 
flexibility on increasing the'use of 
majority voting. 




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PAGE 7' 

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t'fif- Sw 

Risk Down South: Clinton Raises Stakes in Trip to Back Mexican Leader 

By Thomas W. Lippman 

Washington Poa Servic e 

WASHINGTON — - After four years 
of heavy political investment in Mexico 
President Bill Clinton will raise the ante 
again this week with his first visit to a 
country that has climbed to the top of the 
administration’s national security 

Despite doubts among some admin- 
istration officials and independent ana- 
lysts about Mexico’s prospects for con- 
trolling drug trafficking and achieving 
political stability, the White House is 
pursuing its policy of supporting Pres- 
ident Ernesto Zedillo and seeking co- 
operation on trade, narcotics, immigra- 
tion issues and the environment. 

In some ways, Mr. Clinton's policy 
toward Mexico resembles his policy to- 
ward Russia. As with Russia, Mr. Clin- 
ton has adopted a policy in Mexico of 
embracing the president, expanding 
govemment-to-govemment cooperation 
and encouraging economic expansion in 

the hope that democracy and order will 
prevail over crime and violence. 

Long a state dominated by a single 
party and with a mostly closed economy, 
Mexico, like Russia, is passing through a 
political and economic transformation 
that could threaten crucial U.S. interests 
if it goes awry. 

Mr. Clinton's three-day trip starts 
Monday. He is scheduled to meet Tues- 
day with leaders of Mexico’s two prin- 

ope ning its markets, trends that Wash- 
ington supports but also fears because 
they create opportunities for drug traf- 
fickers and other criminal gangs. 

And under the Clinton administra- 
tion's definition of national security, 
which includes issues such as immi- 
gration, organized crime and environ- 
mental degradation, Mexico is a major 
foreign-policy concern. 

Some Clinton administration officials 

cipal opposition parties, as well as prom- are much less optimistic than others. The asserted. 

Summing up die pessimistic view of 
Mexico, George Grayson, a professor at 
the College of William and Mary, wrote 
recently that “ruthless drug barons 
wield mounting political influence 
throughout the country." 

“Zedillo’s diminution of presidential 
power will make it extraordinarily dif- 
ficult for the chief executive to combat 
drug trafficking and could open the door 
to Mexico's ‘Colombianization,’ ” he 

For better or worse, ihe officials said, characterized die proposals as outrageous, 
Mexico commands attention and stick- encroachments on Mexican sovereignly. 

ing from north of the border. It has a There can be “no further discussion 

population approaching 100 million, a of a request that U.S. anti-drug agents 
growing economy and a besieged gov- receive official permission to cany side 
eming party that may be on its last legs, aims in Mexico for their own security; - 

inent members of the Institutional 
Revolutionary Party, to show U.S. sup- 
port for a pluralistic political system. 

Throughout the Cold War, foreign 
policy strategists in Washington bad 
little interest in Mexico. It was polit- 
ically stable and economically marginal, 
and generally steered clear of the proxy 
struggles between the United Stales and 
the Soviet Union that engulfed many 
developing nations. 

Now, a politically volatile Mexico is 
the third -largest U.S. trading partner. It 
is decentralizing political power and 

“There are lots of countries toward 
which you have policy options,” a se- 
nior administration official said. “Mex- 
ico isn’t one of them. You have to make 
every effort to help Mexico make ihe 
political adjustments to promote eco- 

cs say they share a view widely Mr. Clinton, however, has repeatedly nomic growth and address the 

among independent analysts that chosen to engage and support Mexico. 

Mexico is incorrigibly corrupt and that 
its political leaders are unable or un- 
willing to respond to U.S. concerns 
abourthe drug traffic. 

One of the most outspoken advocates 
of this view, the administrator of the 
Drug Enforcement Agency. Thomas 
Constantine, told the Senate Foreign Re- 
lations Committee recently that ’’there 
is not one single law enforcement in- 
stitution in Mexico with whom the DEA 
has an entirely trusting relationship.” 

anons of its citizens in a way that makes 
The president first put his political in- them want to stay home. Either you do 
fluence on the line for Mexico in 1993 to that or you build a bigger wall along the 
win Senate approval of tbe North Amer- border, which is not a feasible option.” 

iean Free Trade Agreement. Thni he ^ ZediUo Draws Line 
arranged a rescue package for the Mex- ********* 

icon economy. Earlier this year he re- Sam Dillon of The New York Times 
jected die counsel of some of his senior reported from Mexico City: 

aides and certified Mexico as a good-faith 
partner in the anti-narcotics campaign. 

Senior White House and State De- 
partment officials who support this 
policy said Washington had no choice.. 

Mr. Zedillo said in an interview. He also ' 
dismissed a proposal that U.S. officials - 
administer polygraph tests to Mexicans ^ 
applying for sensitive posts in the coun- 
try’s troubled anti-drug agencies. _ 
“Thai’s ridiculous!" Mr. Zedillo 
said. ‘ ’Imagine if I told President Clinton 
thai we want to have a hearing in Mexico " 
to accept bis attorney general! ’ * 

“There is a line that's been drawn 
very strongly, and that is our sover- 
eignty,’’ Mr. Zedillo said. 

His statements and the vehemence " 
with which he made them suggested that • 
he was moving to pre-empt any U.S. 

President Ernesto ZediUo has strongly arm-twisting for agnrements ot anti-nar- 

rejected two proposals by U-S. law en- 
forcement officials aimed at improving 

colics issues during Mr. Clinton's visit, 
especially since domestic critics of Mr: 

security for U.S. drag agents in Mexico Zedillo have said he has been too meek 
and at detecting police corruption. He in dealing with tbe U.S. government. - 

Mandela Steps Up to Bat 

Events Force Reluctant South African 
To Step In as Continent’s Heavy Hitter 

By Barbara Crossette 

New York Times Serv ice 

Soon after tbe 1994 election in South 
Africa, when President Nelson Man- 
dela’s heroic stature gave new moral 
authority to his country’s already sub- 
stantial economic and military power, 
world leaders began urging him to take 
an active rote in solving his continent's 
seemingly intractable problems. 

Mr. Mandela told those petitioners — 
among diem the secretary-general of the 
United Nations, Boutros Boutros Ghali, 
and his successor, Kofi Annan — that he 
had too much work to do at home, as 
South Africa made a sometimes-rocky 
transition to democracy. 

la recent weeks, as the rebellion in the 
huge nation of Zaire gained force, that 
reluctance dissipated. Now, Mr. Man- 
dela, in his effort to bring about ne- 
gotiations between the leaders of the 
warring factions, is at the center of a 
historic moment for Africa. 

Diplomats who have watched South 
Africa’s transformation from a pariah 
state to tbe continent's great hope say a 
number of factors have played a role in 
Mb. Mandela’s progression to that South 
African ship off the Congo coast 

Although there is still unfinished 
business m South Africa, the overall 
situation seems less tense and poten- 
tially explosive, diplomats and UN of- 
ficials say. The South African Truth 
Commission continues to expose the 
crimes of the apartheid era, and may now 
be about to hear confessions about the 
violence committed by the leadership of 
tile governing African National Con- 
gress when it was an armed opposition. 

Mr. Mandela, 78, has also distanced 
himself over recent months from many 
day-to-day tasks of government, turning 
th*»m over to his deputy president and 
designated successor. Thabo Mbeki. 

Mr. Mbeki, who is with Mr. Mandela 
on his Zaire peacemaking mission, is 
increasingly the official to whom world 
leaders speak about policy details, while 
Mr. Mandela has been freed to devote 
more time to African statesmanship. 

Mr. Annan, a Ghanaian with an Af- 
rican network of his own, has told the 
continent ’s leaders on several public and 
many private occasions that the world 
can help them and their faltering econ- 
omies only if they commit themselves to 
better government, free of corruption, 
and greater efforts to end conflicts. 

In Angola recently, where decades of 
civil war virtually destroyed one of 
Africa’s naturally richest countries, Mr. 
Annan stood by Jonas Savimbi as tbe 
rebel leader who had kept the war going 
by balking at agreements told his fol- 
lowers that Mr. Annan is “a black man 
like us, and somebody we can mist.” 

For many Africans, Mr. Mandela is 
that and more. 

Mr. Annan’s spokesman. Red Eck- 
hard, said Friday that both President 
Mobutu Sese Seko of Zaire and Laurent 
Kabila, the rebel leader, were “com- 
fortable" with a leading rote for Mr. 
Mandela and South Africa. 

Until Mr. Mandela took on the task of 
persuading Marshal Mobutu, one of the 
continent's most durable dictators, to 
agree to an orderly transfer of power and 
at least give Zaire tbe chance, if not the 
certainty, of avoiding wider bloodshed, 
the South African president had mixed 
success with lower-keyed interventions 
in African trouble spots. 

Since his election m 1994, he has taken 
part in ■— though usually did not lead — 
African efforts to settle disputes in An- 
gola, Algeria, Burundi, Lesotho, Sudan 
and Swaziland. Only in Lesotho was he 
personally able to reverse a coup. 

He disappointed many diplomats by 
not taking a nigger role in the continuing 
conflict between Hutu and Tutsi in east- 
central Africa, involving cross-border 
violence and the displacement of people 
in Rwanda, Burundi, Uganda, Tanzania 
and Zaire. Reports by independent re- 
search organizations found that South 
African arms sales were contributing to 
tiie fighting in the region. Mr. Mandela 
has vowed to hah the trade. 

Most disappointing to Mr. Mandela, 
Sooth African officials and Western dip- 
lomats say, was the failure of his mission 

ftOfip Wojua/Apeacc fr»Bcc-Prt*se 

President Nelson Mandela of South Africa greeting members of the crew 
of the navy ship Onteniqua In tbe harbor of Pointe Noire, Congo. 

to save the life of the Nigerian civil 
rights and environmental activist Ken 
Saro-Wiwa, who was executed with 
eight of his colleagues in 1995. Mandela 
bad sent several personal representatives 
to seek clemency from Nigeria’s mil- 
itary leader. General Sani Abacha; 
among them Foreign Minister Alfred 
Nzo and Archbishop Desmond Tutu. 

Mr. Mandela also failed to win wide 
support for strong sanctions against 
General Abacha after the executions, 
carried out in the face of worldwide 
protest U.S. diplomats said that Mr. 
Mandela had been let down by fellow 
Africans who did not want to set a pre- 
cedent for what they saw as interference 
on human-rights grounds. The impact of 
sanctions against apartheid South Afri- 

ca seemed to have been forgotten. 

South Africa, if not Mr. Mandela per- 
sonally, did play a pivotal part in securing 
the indefinite extension of an interna- 
tional treaty barring the transfer of nuclear 
arms and weapons technology. 

Joining the expertise of a white-led 
nuclear establishment to the new gov- 
ernment’s influence among developing 
nations, the Sooth Africans were able to 
win wider support for the extension of 
the treaty by suggesting pledges by the 
nuclear powers that would go a long way 
in meeting the concerns of nonnuclear 
nations. In those negotiations. South 
Africa established a place for itself as a 
bridge between the world’s most power- 
ful countries and the weaker nations of 
tbe Third World. 

Arafat and Weizman 
To Meet on Tuesday 

JERUSALEM — The Palestinian 
leader Yasser Arafat is to meet Tues- 
day with President Ezer Weizman of 
Israel in an effort to lay tbe ground- 
work for tbe resumption of peace ne- 

The U.S. special envoy to the 
Middle East, Dennis Ross, is expected 
to follow up that meeting with a visit 
to the region later in tile week. 

The flurry of diplomatic activity 
raised hopes Sunday that the down- 
ward slide of tiie peace process had 
been braked, and that real progress was 
being made toward restarting talks. 

Negotiations broke off in March 
after Israel began construction of a 
housing project for Jews on a hilltop 
known to the Israelis as Har Homa and 
to tiie Palestinians as Jabal Abu Gh- 
neim. ( AP ) 

2 Towns Recaptured, 
Taleban Militia Says 

PESHAWAR. Pakistan —Afghan- 
istan’s Taleban Islamic militia said 
Sunday that it bad recaptured two 
towns from opposition forces in the 
eastern province of Kunar, bordering 

A Taleban spokesman said the mi- 
litia took Shegal, about 12 kilometers 
(7.5 miles) east of Asadabad on 
Sunday morning, and Asmar, 30 ki- 
lometers to tbe northeast, at midday, 
according to the Afghan Islamic Press 
news service. 

The service quoted the spokesman, 
based in the eastern Afghan city of 
Jalalabad, as saying thai an opposition 
helicopter was seen picking up bodies 
of an unknown number of opposition 
fighters killed in Asmar. while one or 
two opposition jets bombed die area. 

Two Taleban fighters were killed 
and two were wounded while five 
opposition fighters were arrested in 
Asmar, the spokesman said. 

Earlier, the spokesman said five 
opposition fighters had been killed 
ana 10 had been captured, while three 
Taleban fighters had been wounded 
during the battle for ShegaL 

Asmar had been in the hands of 
anti -Taleban forces since early April 
and Shegal since mid-April. 

The news service said clashes in the 
area in tbe past three weeks had re- 
sulted in the deaths of at least 15 
Taleban, including a commander 
known as Arabistan. with more than 
30 fighters wounded. Opposition 
losses in the same period were es- 
timated at 21 killed and more than 50 
wounded. (Reuters) 

Iraq Urges Action 
On UN Food Deal 

BAGHDAD — Iraq urged die 
United Nations on Sunday to speed up 
approval of contracts for food signed 
under tiie UN's oil-for-food deal, the 
official Iraqi News Agency reported. 

Trade Minister Mohammed Mehdi 
Saleh told visiting UN officials that 
the committee supervising the deal 
had yet to act on contracts valued at 
$250 million, die agency said. He 
accused the United Stares of inter- 
fering in the committee’s work. 

Yasushi Akashi, director of the UN 
Department of Humanitarian Affairs, 
arrived in Iraq on Saturday to assess the 
deal and to determine whether Iraqis 
needed further supplies. The agency 
said Mr. Saleh told Mr. Akashi that 
Iraq already had funds in a UN -mon- 
itored account to purchase the food. 

In December, the United Nations 
rave the go-ahead for Iraq to sell up to 
$2 billion worth of oil for an initial 
six-month period to -buy food and 
medicine for its people, who are suf- 
fering the effects of nearly seven years 
of UN sanctions. (AP) 

Vargas Llosa Pays 
Rare Visit to Lima 

LIMA — The Peruvian novelist 
Mario Vargas Llosa arrived in Lima 
over the weekend on his second visit to 
his homeland since losing a 1990 elec- 
tion to President Alberto Fujimori. 

He return is part of a Latin Amer- 
ican tour to publicize his new book. 
“Don Rigobeito’s Notebooks,” and 
to receive an honorary doctorate from 
Lima University. (Reuters) 

ZAIRE: Mobutu Meets Kabila 

Continued from Page 1 

takeover of Kinshasa, which, 
it is feared could spark a binge 
of looting by poorly paid and 
undisciplined government 
soldiers, and perhaps a last 
stand by Marshal Mobutu's 
ethnically loyal Presidential 

Weston diplomats say 
there are as many as 45.000 
Zairian soldiers in Kinshasa, 
most of them from demobil- 
ized units or deserters. The 
r emains of the Presidential 
Guard number about 15,000 
men, but military experts say 
that the motivated core of this 
unit numbers no more than 
2 , 000 . 

The diplomats have also 
been mounting’ a belated ef- 
fort to ensure that Mr. Kabila 
does not seize power un- 

checked, potentially setting 

the stage for yet another Zairi- 
an dictatorship. 

In recent weeks, Mr. Kab- 
v, ila, a lifelong revolutionary. 
?has said that during a tran- 
sitional period of undeter- 
mined duration be would rule 
with a government composed 
uniquely of his movement, 
the Alliance of Democratic 
Forces for the Liberation of 
die Congo. 

Mr. Mandela and the rest of 

the South African delegation 
aboard the ship went out of 

their way to avoid the appear- 
ance that the talks had railed, 
but in a brief statement in 
which he spoke of Mr. Kabila, 
the South African leader said, 
“The question of a cease-fire 
is not in his vocabulary." 

Earlier in the week, Mr. 
Kabila infuriated Mr. Mandela 
and President Bill Clinton's 
special envoy to Zaire. Bill 
Richardson, by foiling to ap- 
pear at tiie talks as scheduled, 
and repeatedly going back on 
understandings that had led the 
mediators to believe that an 
agreement was at hand. 

Mr. Kabila claimed the 
delays in his arrival were due 
to security concerns. A senior 
United States diplomat an- 
grily dismissed that as “a 
flimsy excuse," and called 
Mr. Kabila a “liar” who was 
determined to “win power on 
his own terms.” 

On Wednesday, Marshal 
Mobutu gave Mr. Richardson 
a letter to Mr. Clinton in 
which he said that be had 
agreed to step down if “cer- 
tain conditions" could be 
met, according to a senior 
member of Mr. Richardson’s 

Those conditions, though 
apparently not made explicit in 
the letter, reportedly involved 
a commitment on future elec- 
tions and protection for Mar- 
shal Mobutu and his family. 

A n 

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UN Juggles Fewer Troops and Less Cash to Keep Peace 


Mulling Reunification 

By Paul Lewis 

New York Times Service 

1994 the United Nations was running 18 
peacekeeping operations around the 
world, fielding a total force of some 
80,000 peacekeepers from 82 countries 
at an annual cost of almost $33 billion. 

Today the United Nations is running 
17 operations, but it has only 23,000 
soldiers in die field, and its peacekeep- 
ing budget has shrunk to $1 3 billion. 

Bernard Miyet the former French 
diplomat who took over as undersec- 
retary general in charge of peacekeeping 
this year, predicts that a year from now 

the peacekeeping troop numbers will be 
more like 1 6,000 to 15,000, as oper- 
ations in Angola, Haiti and the Croatian 
region of Eastern Slavonia close down. 

A small observer farce is planned to 
oversee the recent trace in the civil war 
in Sima Leone, but it will not begin 
operations until rebel leaders there ac- 
cept its presence. Plans for another small 
operation to help evacuate refugees from 
eastern Zaire are similarly in Umbo. 

Meanwhile, the world is not short of 
conflicts, which the Security Council 
occasionally discusses without taking 
much action. Afghanistan and Zaire are 
obvious examples, along with Algeria, 
Somalia and Sudan. The sharp reduction 

in the size of peacekeeping operations 
r mood or caution within 

reflects a new 
die Security Council and the United Na- 
tions as to what it can do. 

The nub of the problem is that most 
conflicts are within countries rather than 
between them. Thus, the United Nations 
has at times been under pressure to send 
peacekeepers into a civil conflict to pro- 
tect relief workers, though the antag- 
onists were still not ready for peace. 

As Shashi Tharoor. a special assistant 
to the UN secretary-general, Kofi An- 
nan, pui it “As long as UN peace- 
keepers were deployed among and 
worked with the cooperation of the Bos- 
nian Serbs, they were trapped in the 

basic conundrum that you can't make 
war and peace with the same people on 
the same territory at the same rime.” 

No one involved in planning peace- 
keeping operations has forgotten what 
Mr. Tharoor calls “that dreadful sum- 
mer of 1994,” when the Security Coun- 
cil wanted to send 5300 soldiers to try to 
quell genocide in Rwanda. A total of 19 
governments that had collectively 
pledged to provide 31,000 troops for 
peacekeeping operations were ap- 
proached. All declined to take part 
The UN financial situation is further 
with member 
states' unpaid peacekeeping bills now 
standing at $1.6 billion and unpaid reg- 

ular budget assessments at $5 11 million. 

Still, the relative success of the heavily 
armed NATO force policing the peace 
accord in Bosnia has produced what Mr. 
Miyet called “a consensus that peace- 
ea fo rcemenl and serious peace-restora- 
tion campaigns will always be the re- 
sponsibility of a coalition of interested 
countries using their own forces but with a 
green light from the Security Council.’ ’ 

This is the model Italy followed for 
the force seat to Albania recently to 
protect aid workers there. But when a 
truce is in danger of breaking down, Mr. 
Miyet said, “peacekeeping and light 
peace-restoration efforts” belong to the 
United Nations. 

Continued from Page 1 

Pope Beatifies a Gypsy 

Pontiff Calls Him Symbol of Racial Harmony 

The Associated Press 

VATICAN CITY — In a first for the 
Roman Catholic Church, Pope John 
Paul H on Sunday beatified a Gypsy, 
calling him a symbol of racial and 
cultural harmony. 

Several thousand Gypsies from 
across Europe joined a crowd in St 
Peter's Square to attend a Mass in hon- 
or of Ceferino Jimenez Malla and four 

other people beatified by the Pope, 
tin canon is 

Beatification is the last formal step on 
the road to possible sainthood. 

Mr. Jimenez Malla, 75. was killed by 
Republican forces during the Spanish 
Civil War in 1936. He was arrested for 
defending a priest and died refusing to 
renounce his faith, the promoters of his 
cause say. 

“The blessed Ceferino Jimenez 
Malla sowed harmony and solidarity 
among the Gypsies, mediating in con- 
flicts that plagued relations between 
non-Gypsies and Gypsies,” the Pope 
said in bis homily. 

Mr. Jimenez Malla showed that “the 
charity of Christ knows no limits of 

race or culture,” John Paul said, as 
about 30,000 people listened under 
bright sunshine. 

Gypsies, who are believed to have 
crane from India about six centuries 
ago, live throughout Europe on the 
edges of society, often residing in 
campgrounds and trailer paries. 

Before the service, groups of 
sang and clapped. A guitarist 
a violinist serenaded the Pope with 
pungent Gypsy melodies while a huge 
tapestry portrait of Mr. Jimenez Mafia 
hung from the facade of Sl Peter’s. 

Another of those beatified Sunday 
was Florentine Asensio B arioso, the 
bishop of Barbastro, Spain, where Mr. 
Jimenez Malla died. Bishop Asensio 
Barroso was killed by Republican faces 
around die same time as the Gypsy. 

Also beatified were Gaetano Cata- 
noso, a prison chaplain in southern Italy 
and founder of a small religious order 
who died in 1963; Enrico Rebuschini, 
an Italian priest who died in 1938, and 
Maria Encamacion Rosa], a 19th cen- 
tury nun in Guatemala. 

RBfl» Mwadbot/Agcocc Fimr lht 

Two Gypsy women talking Sunday in SL Peter’s Square, before the start of the beatification ceremony. 

fete is settled through peaceful nego- 
tiation or under the threat of force-front 
Beijing will help determine fee level of 
Asian instability in the future. 

As the weeks count down for the 
people of Hong Kong, toe is no keener 
audience watching every step _ of 
Beijing’s management of tire transition 
than the one here. 

“In Hong Kong, they have no choice 
but to accept their fate, but Taiwan is 
different,” said Hsu Hsm-liang. chair- 
man of the pro-independence Demo- 
cratic Progressive Party, of which Mr. 
Yu and his family are prominent mem- . 
bers. “However, we believe Chinese 
pressure on Taiwan is going to become 
greater and greater, and all the people in ■ 
Taiwan are really worried.” 

Taiwan is an island of contradictions. 
Politically, the supremacy of the gov- 
erning Kuomintang. or N ationalist Party, 
long committed to reunification with the 
tnamJaDd. is being undermined by agrow- 
ing independence movement President 
Lee Teng-hui, the first native Taiwanese 
to l ead the party, has more closely allied 
himself with separatist voters as a way to 
straddle the island's politics. 

Economically, an army of Taiwan 
businessmen is investing on the mainland 
despite government efforts to curb the 
two societies' growing interdependence. 

When the Communists chased their 
army into fee sea at the end of the 1945-49 
mil war, the Nationalists used dictatorial 
rule to turn this mountainous island into 
their fortress. But Taiwan has evolved 
into a thriving democracy and an eco- 
nomic powerhouse very much in charge 
of its own destiny. Modem and free, it 
seems a nation in everything but name. 

Beijing held belligerent military ex- 
ercises in the Taiwan Strait last year. 

Narciso Yepes, 69, Spanish Guitarist, 
Composer and Innovator, Is Dead 

The Associated Press 

MURCIA, Spain — Narciso Yepes, 69. one of 
Spain's most acclaimed classical guitarists and 
composers, died of cancer Saturday. 

A contemporary of Andres Segovia and Joaquin 
Rodrigo. Mr. Yepes was lauded far his technique as 
well as his interpretation. 

He was also an innovator of the instrument itself, 
designing a 10 -string guitar that he said was best 
suited to Baroque music. 

Mr. Yepes debuted in 1949 with the National 
Orchestra in Barcelona. Soon afterward, he 
traveled to Paris, where his international fame was 

Mr. Yepes performed in Europe, the United 
States. Japan and Latin America. His interpretation 
of Rodrigo's “Concert of Aranjuez” is one of his 
greatest achievements. 

Sir John Carew Eccles, Neurophysiologist 

New York Tunes Service 

Sir John Carew Eccles, 94. an Australian neuro- 
physiologist whose research illuminated some of the 
most mysterious functions of human nerve cells, 
died Friday in Contra, Switzerland, where he lived. 

In 1963, Sir John shared the Nobel Prize with 
two other scientists for work that demonstrated 
how electrical im pulses act across synapses, the 
junctions between nerve cells. 

His work essentially proved bow, by physics and 
chemistry, messages are passed from one nerve cell 
to another, and his conclusions were seen as a key 
to understanding higher functions of the brain. 

Sir John Junor, 78, Editor-Columnist 
LONDON (AP) — Sir John Junor, 78, one of die 
best-known editors and columnists in British jour- 
nalism over the past half century, died Saturday. 

Mr. Junor was editor of the Sunday Express for 


32 years and was knighted by Prune 
Margaret Thatcher shortly after she came to power 
in 1979. 

After leaving die editor’s chair in 1986, he 
continued to write columns in the Sunday Express 
and later in the Mail on Sunday. 

Blast From the Past: 
British Group Wins 
Eurovision Contest 

Leslie George Katz, 78, die founder of Eakins 
Press and a writer on art and literature, died of 

cancer on April 18 at his home in Manhattan. He _ 

was the publisher of Arts m a g azine in the 1950s. Narciso Yepes during a concert in Barcelona in 1992. 

The Associated Press 

DUBLIN — A one-hit-wonder Brit- 
ish rock group that enjoyed fleeting fame 
in the 1980s returned from the 
rock’n'roll dead to sweep the annual 
Eurovision song contest 

Katrina and the Waves, Jedby the 
American -bom • singer Katrina 
Leskanich, beat out 25 other nations cm 
Saturday with the song “Love Shine a 
Light” to win Britain's fourth Euro- 
vision prize since the contest began in 

The song was written by another band 
member, Kimberley Rew, who also 
wrote the band's 1985 chart topper, 
“Walking on Sunshine." 

The new song “is a very positive and 
optimistic song which reflects the new 
era about to begin in Great Britain,” said 
Ms. Leskanich, referring to the Labour 
Party’s victory in national elections 

and Keehmg, Taiwan’s main ports. 

The region remains jittery after the 
crisis of 1995-96, set off when the. 
United States granted Mr. Lee a visa, an 
act Beijing believed was intended to 
encourage the pro-independence bent 
the president has indulged 

Just sooth of the port at Kaohsiung lies 
a sprawling oil refinery complex that sup- 
plies 80 pacent of the gasoline in Taiwan, 
which has among the world's highest 
densities of automobiles pec road mile. 

4 'If mainland China fired one of these • 
new missiles into that refinery, the 
whole island could come to a standstill.’ ’ 
said Wang Chien-shien. who quit tire 
Kuomintang after 36 years to help form . 
the New Party, dedicated to eventual 
reunification wife fee mainland 

But fee pro-independence movement, 
supported by a quarter to a third of fee 
electorate, is so strong that it Threatens to 
take over a majority of the island's mu- 
nicipal governments in elections tins year 
and wrest control of the National As- 
sembly from the Nationalists by 2000. 

The dangef, Mr. Wang said, is feat 
Beijing will feel pressure to act “If the 
independence party has a big win, what is 
China to feink other than Taiwan is going 
for independence?' ’ he said “China will 
say. ‘We cannot wait anymore.' ” 

President Jiang Zemin of China has 
offered a deal similar to the “one coun- 
try, two systems" guarantee for Hong' 
Kong. He has pledged that Taiwan could 
keep a separate milrtaiy, and he has sug- 
gested that Taiwan leaders could serve in 
top Beijing positions, including fee vice 
presidency. Both the Taiwan govern- 
ment and opposition parties have greeted 
the proposal wife deep skepticism. 


EUROPE: Leftists on Continent Take Heart From Labour Victory 

Continued from Page 1 

change of some land is badly needed on 
fee Continent. Unemployment in Britain 
is only 6.1 percent, but it is 12.8 percent 

in France, 12.1 percent in Ital^ll.7 

percent in Germany and almost 22 per- 
cent in Spain, according to one of two 
sets of figures regularly compiled there. 

But achieving a consensus on what to 
do about it is all but impossible, in part 
because the world of Continental polit- 
ical parties is much more fragmented 
than in Britain and because in most coun- 
tries on fee Continent, proportional rep- 
resentation imposes a need for coalition 
governments and broad agreement 

Lady Thatcher despised the search for 
consensus, and because of the British 
electoral system, she won healthy ma- 
jorities in Parliament even though her 
Conservatives never wot a majority of 
fee popular vote. 

Thus, she was able to break the 
stranglehold that British labor unions 
had over fee economy when she arrived 
in power, and she legislated flexibility in 
British hiring and firing practices. She 
was also able to cut British income taxes 
to a top rate of 40 percent — about what 

Americans in fee upper tax brackets pay 
on some of their income, but far less than 
what the richest pay in France (54 per- 
cent) or in Germany (53 percent). 

Two decades later, Mr. Blair has ac- 
cepted most of these Thatcherite pre- 
scriptions as essential for Britain to com- 
pete effectively in the new global 

Here in France, though, there is no 
such consensus. President Jacques Chirac 
keeps saying that businesses would hire 
more people if they did not have to pay 

high payroll taxes that usually add about 
50 pc 

percent to the cost of every salary. 

But according to public opinion polls, 
most people in France — not just the 
Socialist opposition — oppose cutting 
these taxes if it would mean reducing the 
generous unemployment, pension and 
health-care benefits that French people 
have come to view as a right, not a 
privilege, over fee past 50 years. So far, 
nothing much has happened — and that is 
one reason Mr. Chirac called recently for 
new elections at the end of this month. 

Paralysis is also the rule in Germany. 
“What is wrong with our country?" 
President Roman Herzog asked in a 
speech last weekend contrasting Ger- 

many wife fee United States and other 
countries that seem to have made the 
transition to fee new global economy 
more easily. 

* ‘In brutal terms, fee loss of economic 
dynamism, fee paralysis of society." he 
answered. “Instead of producing de- 
cisions, debates turn into rituals," be 
went on. "At fee end, fee problem is 
usually put off. The status quo prevails. 
Everybody waits for the next subject” 

To reduce unemployment French So- 
cialists and German Social Democrats 
prefer to keep regulating waiting hours, 
shortening them without cutting salaries. 
Critics say all that will do is spread work 
among people who already have it with- 
out creating desperately needed new 
jobs for young people. 

In both Germany and France, oppo- 
sition parties say they will not go even 
halfway down fee British road. They 
will not shift the burden of economic 
adjustment from the rich to those least 
able to pay — salaried employees and 
workers. In Britain, such workers have 
little job security, but in the post -Cold 
War global economy, they have an easi- 
er time finding jobs than their unem- 
ployed colleagues on fee Continent 

15 Die in Attacks 
On Algeria Hotels 


PARIS — Two car bombs killed 
1 5 people and wounded 23 in hotels 
in a thermal resort in northwestern 
Algeria over the weekend, the Al- 
gerian newspaper Le Matin said 

The newspaper said fee bombs 
exploded 10 minutes apart in Sidi 
Bouhanifia. about 325 kilometers 
(200 miles) from Algiers. "The two 
blasts killed 15 people and wounded 
23, including a child, badly hurt in 
the head and whose hand was blown 
off, ” the paper said. It added feat the 
blast was so powerful that “accord- 
ing to a- medical source, half those 
killed could not be identified.” 

One bomb hit the Sahara Hotel, 
destroying the building; a second, 
outside the Hotel El Farah, caused 
widespread damage, the newspaper 
said. There was no claim of re- 
sponsibility for the attack. But au- 
thorities have blamed Muslim rebels 
for hundreds of bombs and other 
attacks over fee past five years. 

BUDGET: What Happens After 2002? 

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Continued from Page 1 

tween 1946 and 1964, will be eligible for 
retirement by 2030. By then, there will 
be as few as two Americans of working 
age for every senior citizen, down from 
about five workers per senior in 1960. 

Meanwhile, the average growth rate 
of the U.S. economy has slowed to about 
3 percent per year since the early 1970s 
— about half the pace of expansion 
during the postwar era, when many en- 
titlement programs were introduced. 
Fiscal experts warn that, in the absence 
of much stronger economic growth rates 
or far-reaching changes in entitlement 
programs, federal deficits are destined to 
climb to economically dangerous levels 
again early in fee next century. 

Few provisions in the budget blueprint 
would help avert that bleak scenario. It 
reduces by $i 15 billion projected spend- 
ing on Medicare, fee government's 
health insurance program for the elderly. 
But the bulk of those cuts would come 
from limiting payments to hospitals and 
doctors, an approach few experts expect 
to achieve a lasting reduction in health- 
spending rates even if it succeeds in 
lowering spending in the shorter term. 

The agreement includes several much ^ 
smaller Medicare provisions that could * 
make some lasting contribution to the 
deficit outlook. For example, it would 

limit what the government will pay for 

certain types of health services provided 
to seniors in their homes. It also en- 
visions a slight increase in the monthly 
Medicare premiums paid by all but the 
poorest recipients. 

The long-run cost of the proposed tax 
cuts remains unclear. Many of the tax cuts 
— including capital gains tax rate re- 
duction and provisions for expanding par- 
ticipation in tax-favored individual re- 
tirement accounts — are structured in 
such a way that experts expect them to 
cost the government far more money be- 
yond 2002 than in their first five years. 

The budget agreement amounts to 
little more than * ‘crossing our fingers and 
hoping the baby boomers don’t get any 
older.” said Richard Thau, executive 
director of Third Millennium, a non- 
partisan youth advocacy group based in 
New York. “We are no closer to solving 
the long-term entitlement problems wife 
this budget than we were two years ago. 
Leaders from both panics have agreed to 
sell out future generations. ' ’ 

dj* r.' 

J-v-i • ' . 

TORIES: Debate on Europe Rages On 

Continued from Page 1 

The Tories were confronting a conflict 
etween choosing a candidate who could 
fete the feuding wings of the party or 
hoosing one who would represent fee 
ostiie feelings towards European in- 
sgration held by an estimated 90 of fee 
65 Conservatives left in Parliament 
fter Thursday’s electoral drubbing. 

That task was made significantly 
lore difficult by fee withdrawal Sat- 
rday of Michael Heseitine, 64, fee 
inner deputy prime minister and pos- 
ibly the only person who might have 
rought the squabbling sides together 
nder his leadership. 

Mr. Heseitine, who had a heart attack 
1 1993, was taken to a hospital near his 
nuntry estate. after he suffered what was 
escribed as an angina attack. 

Shortly thereafter, his wife said he had 
ecided not to offer his name. 

Another potentially unifying candi- 
ate. Chris Patten, fee governor of Hong 
ong and former chairman of the party, 
ml word to supporters feat he would be 

remaining in his current position until 
fee transition of the colony to China or 
July 1 and then spend six months writing 
a book about Asia. 

Two other candidates with significant 
followings, William Hague, 36, fee 
former secretary for Wales, and Michael 
Howard, 55, fee former home secretary, 
are expected to enter fee race next week. 
Mr. Howard is considered “hard right," 
Mr. Hague “soft right,” and both men 
boast links to the ideological muse of the 
party, Margaret Thatcher. 

Mr. Hague caught her approving eye 
when, as a teen-ager, he gave a pas- 
sionate speech to a party conference. Mr. 
Howard, a critic of the liberal estab- 
lishment and fee courts, is said to be her 
favorite for the leadership now. 

Yet another Conservative testing fee 
waters on radio and television interview 
shows during the weekend was Stephen 
Dorrell. 45, the former health secretary. 

He was long viewed as a moderate 
until fee late weeks of the campaign, 
when he for the first time took up fee 
banner of hostility to Europe. 

Trumps Split, but What’s Love Got to Do With It? 


By Brace Weber 

New York Times Smirr 

NEW YORK — The moral of this 
story is feat money can’t buy hap- 

All right, maybe feat's not fee moral. 
Tire moral is feat great sex does not 
guarantee enduring love. 

Well, that’s probably not it either. 
But certainly the lesson to be taken 
from the news feat fee marriage of 
Donald Trump and Marla Maples is on 
fee rocks has a great deal more to do 
with money and sex — not to mention 
power and fame — than wife happiness 
and love. 

Neither Mr. Trump, 50, the real- 
estate developer fond of haying his 
name emblazoned on his holdings, nor 
Ms. Maples, 33, a model and sometime 
actress, has chosen to speak publicly, 
but the future former spouses issued a 

terse joint statement Friday confirming 
their decision to separate. 

“After a long relationship and a 
three -and -a- half-year marriage, we 
have decided to separate, as friends,” 
fee statement said. 

The friendliness apparently extends 
to some business arrangements. 

Ms. Maples, a former beauty pageant 
contestant from Georgia, is expected to 
honor her commitment to be fee host of 
fee Miss Universe Pageant on May 16. 
which is to be held in Miami. Mr. 
Trump, along wife CBS, owns fee pa- 

The statement went on to make a 
distinctly uncharacteristic request: that 
fee news media leave them alone. No 
mention was made of an impending 
divorce, the possibility of a reconcili- 
otion. a prenuptial agreement or the 
couple's 4-year-old daughter. Tiffany. 

Mr. Trump, whose real-estate em- 

pire includes casinos in Atlantic City, 
New Jersey, and New York City prop- 
erties including the Trump Tower and 
the brand-new Trump International 
Hotel and Tower at 1 Central Park 
West has a net worth estimated at from 
$450 million, by Forbes magazine, to as 
much as $23 billion. 

"He’s really married to his business 
anyway,” a person familiar wife Mr. 
Tramp’s portfolio and marital situation 
said, adding that the separation was Mr. 
Tramp's idea and that it was taking 
place now for economic reasons. The 
prenuptial agreement, the person said, 
which would pay Ms. Maples 51 mil- 
lion to $5 million in fee event of a 
divorce, is to expire within 1 1 months, 
after which she would be entitled to a 
settlement based on a percentage of Mr, 
Tramp’s net worth. 
w If bis net worth is really $23 billion, 
“even if she were to get a small per- 

centage,^ small percentage is a lot of 
money," the person said. 

This person, who insisted on an- 
onymity, .said Mr. Tramp would live in 
his new Tramp International building 
and feat Ms. Maples would live tem- 
porarily at Trump Tower, several 
blocks away in Manhattan. 

Eventually. Mr. Trump will buy her a 
new apartment “in a regular, non- 
Trump building." fee person said, 
adding that Tiffany "will be taken care 

No third party is involved, fee person 

After meeting in 1988. Mr. Trump 
and Ms. Maples conducted an on- 
again. off-agatn and very public affair 

— her declaration that sex with him 
was the best she had ever had was only 
the most memorable headline-grabber 

— that hastened the disintegration of 
Mr. Trump's first marriage. 

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The Business of 
‘Passionate Folly’ 

Luxury yachting is growing — in every wav. 

N ot only is the luxury-yacht business booming, with 
shipyards full and prospective clients fighting for 
building slots as they open, but die size of a super 
yacht is also increasing. Although the category begins at 
about 20 meters (66 feet) in length, the trend recently is for 
yachts of 40 meters or more, says Sandrine Elena, spokes- 
person for the Super Yacht Show being held in Nice from 
May 15 to 17. 1997. 

Siyer \acht is the only international exhibition in the 
world dedicated exclusively to luxury yachts, and from 800 
to 1.100 of them will be berthed in or near Nice during 
yachting season. 

Last year's event attracted more than 2,000 visitors from 
40 different countries. This year, more than 300 buyers — a 
6 percent increase over last year — are expected to attend. 

A major reason for the increase in attendance is mergers 
and acquisitions, especially in the United States, explains 
George Nicholson, chairman of luxury yacht brokerage 
Camper & Nicholsons. “A man has worked all his life, sunk 
his money into his business and sells it for S500 million. Now 
what does he do?” 

Rather than buy. an aspiring yachtsperson could con- 
ceivably charter a luxury craft once or several times a year. 
The cost might start at about S600 per person per day for a 
vessel accommodating from six to 20 passengers. At luxury 
yacht brokerage Nigel Burgess Ltd., die average charter is 
one to two weeks a year, says director Jonathan Beckett. 

Pride of possession 

Although some multimillionaires charter year after year, 
there is no substitute for yacht ownership. Pride of possession 
is the driving force behind what otherwise might be con- 
sidered “an act of folly,” says Michael Bremen, sales director 
of Germany's Lurssen Shipyards, maker of some of the 
world's most opulent yachts. “To build a yacht you have to 
be passionate because nobody needs one,” he says. 

Not many people can afford one. either. A run-of-the- 
millionaire won’t do, when a new 1 50-foot i 45.7-meter) boat 
may cost from $ 1 6 million to $25 million, and a 1 0-year-old 
boat will set you back S5 million to $10 milli on. 

Those are the starting costs. Yearly maintenance will run 
from 4 percent to 10 percent of capital value, says Mr. 
Beckett His brokerage is currently offering Philanderer, a 
40-meter sailing vessel, whose maintenance is about 
S350.000 yearly, including a crew of six to seven people. 

Some of this expenditure may be offset by charter revenue, 
but most super-yacht owners charter their boats to keep their 
'crews busy rather than to generate income. 

The number of shipyards capable of building top-quality 
super yachts is even more select than the number of cus- 
tomers who can afford them. About 100 boats measuring 115 
feet or more are produced annually. “In the 140-to-160-fbot 
range, die average yard can deliver two boats per year,” says 
Mr Nicholson. Sailing yachts offer a different experience 
from that of the motor-powered vessel, and drey attract a 
different kind of customer Mr. Bremen says that die owners 
of sailing yachts are “real sailors,” more knowledgeable and 
far more involved in the building of their boats. . i 





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A toy for grownups: A new 1504oot super yacht costs from $16 mSon to S25mffion — and that doesn^inckide yearly mamtenance. 

If their competitive drive is strong, they can participate in 
some of the regattas underwritten or promoted by luxury 
goods companies. Some, like the watchmaker Corum. spon- 
sor their own boats. Others sponsor regattas, such as the 
Spring Regatta of Portofino, developed by Italian men's 
clothier Ermenegildo Zegna. Watchmaker Vacheron Con- 
stantin will be sponsoring the world tour of on old sailing ship 
in 1999, recalling the era of merchant vessels and pirates. 

explains Michele Riechenbach, public relations spokesper- 
son for the company. 

Pirates of any era would covet the bounty of the largest 
passenger yacht afloat. For many years, the Greeks had that 
claim, but it is about to be overtaken by a 148-meter vessel 
commissioned from Lurssen. The shipyard acknowledges 
the owner only as a “London-based” client, but industry 
insiders claim it is destined for the Sultan of Brunei. • 

A Difference Between Men and Boys 

Super yachts enable the very wealthy to indulge their fantasies. 

W hoever said “The difference 
between men and boys is in 
the nature offoeirtoys,” must 
have been thinking of today's luxuty 
yachts. There are few venues where the 
ultra-rich can indulge in as many tech- 
toy fantasies as on foe high seas. 

To be fair, some technology is the 
result of regulation rather than personal 
preference. Michael Bremen — sales 
director of Germany's Lurssen 
Shipyards, maker of some of today's 
largest and most luxurious yachts — 
points out that changing regulations are 
behind the design of new yachts as well 
as the refitting of existing vessels. For 
example, the Maritime Safety Asso- 
ciation of Britain has ruled that any sea 
vessel capable of carrying more than 12 
passengers is a passenger ship and not a 
yacht Fire and safety regulations are 
different and more rigorous for the 
former. All yachts flying foe British flag 
have to comply with these rules, and 
other countries see them as guidelines. 

PCs on board 

All new luxury yachts come equipped 
with personal computers because 
everything on a super yacht is com- 
puterized these days. Older boats are 
refitted frequently to keep up with the 
latest developments in radio commu- 
nications, computer-aided sailing, high- 

speed navigation equipment, new chart 
technology, call routing, innovations in 
wheelhouse design, ergonomics, shore- 
based security and vessel monitoring. 

There is little on a boat that has not 
been affected by advances in technol- 
ogy. Mr. Bremen points out that a boat's 
bridge today is dramatically different 
from a bridge built a decade ago. There 
is more design in the dials. There is 
greater use of composite materials and 
aluminum. Insulation and exterior paint 
have improved- 

Communications equipment is smal- 
ler and better than it used to be, and it is 
improving all the time for radar, radio, 
television, fax and telephone. George 
Nicholson, chairman of yacht broker- 
age Camper & Nicholsons, says, “The 
size of a dish for dome television re- 
ception has shrunk from the size of a 
table to the width of a bowl.” 

Thanks to advanced communica- 
tions, yachts have emerged from the 
category of frivolous indulgence. They 
can be an asset formeetings and discreet 
business negotiations. “Businessmen 
don’t want to be out of touch, and today 
they don’t have to be.” says Mr. Nich- 
olson. The next big breakthrough, he 
predicts, will be flat-screen television. 
Today’s TVs take up a lot of living 
space, even in a super yacht, and cause 
problems for interior designers. Flat 

screens that can hang on a wall will be 
more attractive and more secure. . 

In addition to television and VCRs, 
luxury yachts may be equipped with 
high-quality sound and light systems 
for onboard discotheques and screening 
rooms for films. Underwater cameras 
are built into the hulls of some boats and 
connected to the television for a fish- 
eye view of the world. And that's just 
the beginning for entertainment 

Doughnuts and bananas 
“Water toys are important,” remarks 
Jonathan Beckett director of yacht 
brokerage Nigel Burgess. Ltd. Fun in 
the water has become a serious busi- , 
ness, as water skis and .scuba diving 
joust with jet skis, wavenmnere, wet 
bikes, doughnuts and bananas (rubber 
craft pulled behind the boat) for a pas- 
senger’s attention. 

Some of the larger yachts, reports 
Camper & Nicholsons, have room for a 
helicopter and a hot air balloon, a water 
slide or a 20-foot (6-meter) water tram- 
poline. If a two-person submarine 
seems passe, how about a Breathing 
Observation Bubble (BOB), described 
by some as an underwater moped that 
transports the aquatic rider at speeds of 
■2.5 knots. But don’t expect to call your 
office while you are enclosed in the 
bubble — not yet, anyway. • 

How to Choose 
A Port of Call 

From St. Tropez to Belize , the choices are vast. 

I n planning a luxuiy yachting vacation, a client often has 
a clearer idea of the sea he wants to sail than of the ship he 
wants to charter. For most first-time and many repeat 
customers, the Western Mediterranean — specifically the 
French and Italian Riviera — is the ultimate cruising ex- 

“For motor yachts, it is the most popular destination we 
offer,” says George Nicholson, chairman of luxury yacht 
brokerage Camper & Nicholsons. 

Jonathan Beckett director of Nigel Burgess Ltd., another 
luxuiy yacht brokerage, agrees. “The South of France is. 
always number one in popularity," he says. “France and Italy 
are beautiful and sophisticated, with lots of atmosphere and. 
good food on shore." 

Although the chefs on luxuiy yachts rival those of the. 
j finest three-star restaurants, part of the yachting experience, 
consists of dining ashore at this summer’s trendy trattoria or 
f chic cafe. The quality of the food is only one element in this 
I evaluation; Charm, physical beauty, local color and hos- 
■ pitality all play a part. 

! Another consideration in the selection of charter locations 
i is the political landscape. In the Eastern Mediterranean, the 
waters of ex- Yugoslavia were off-limits until recently; Mr. 
Beckett reports that insurance for yacht charter there became 
available only four months ago. “Yugoslavia is back.” 
concurs Mr. Nicholson. “Dubrovnik was not badly damaged 
during the war, and it is charming.” 

Following the wind 

A third consideration in the choice of destination is wind. 
Wind is not very important for motor yachts, but it is critical 
for sailing vessels. Wind conditions in the Caribbean con- 
tribute. in part, to its great popularity among sailors. Ac- 
cording to Mr. Nicholson, the Mediterranean generally does 
not offer great sailing, except for the Balearic Islands of 
Spain, the Cyclades in Greece and foe Straits of Bonifacio off 
Corsica. “Either there is not enough wind or too much.” he 
says. The time of year is also a factor: The Melteme winds in 
Greece blow in August, and foe best sailing is during that 
month. Conversely, he does not recommend motor yachting 
at that time. 

A fourth consideration is the level of experience, as we] l as 
the taste, of the individual customer. Michael Bremen, sales 
director of Germany’s Lurssen Shipyards, builders of some 
of the world's largest luxury yachts, believes that an ex- 
perienced yacht owner is likely to head off foe beaten track 
after a few trips. 

This “environmental appeal" is drawing more yachr 
charters to Alaska and foe Pacific Northwest, he says. Others 
are turning to foe picture-postcard seas of Southeast Asia for 
the same reason. 

For those who seek an active social life beneath the sea, 
Belize has become a requested destination. It boasts foe 
second-largest offshore reef in foe world, after Australia. 
Diving has also made Cozumel a popular port. • 


fie Castca^ 3 * Causes 

The concept, design and the decoration in 1930 Art Deco sly leof this cruis- 
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700 sqjn. of antique leaded glass windows and tree ancient lead setting bor- 
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The quality fittings on board, remind cine of the golden years of which only 
Fiance holds the secret. Equipped with 72 passenger cabins, including / 
Suites and 1 Royal Suite. A large psttcmomic restaurant exdusrray 
French, followed py a large Bar-Brasserie decorated in 1930 style. A vast 600 
stun. Casino with Jack pot machines will give the pleasure to the passen- 
gers. 1 large cabaret-spectacle with a discotheqw, 1 swimming-pool. 1 
solarium, I sports room, 1 sauna and 1 jacnm The Duty-free luxuiy bou- 
tiques will represent die most weD-known French brands. 

3X) passengers and 36 crew members will find an agreeable environment 
under exceptional cruising conditions in this truly flatting palace ***** 
The launchme ceremonv erf The Casino Royal cuisine is set for the end of 


mhx produced in its entirety by 
the Advertising Department 
of the International Herald Tribune. 

Writer; Claudia Fiisi is a business writer based in Itlay 
and the South of France. 

Program Director: Bill Mahder. 

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PAGE 10 



A Flawed Budget 

aging generation of baby boomers is 
going to place an increasing burden on 
the -nation’s health care and pension 
systems, while a relatively smaller 
number of working Americans will be 
there to pay taxes. This budget agree- 
ment makes some useful changes in the 
Medicare health program for the poor, 
but it postpones much of the needed 
reform. Even under cover of bipar- 
tisanship, neither side had the courage 
to back needed changes in how en- 
titlements are calculated, changes 
which would go a long way to al- 
leviating this generational problem. 
Tax receipts are unexpectedly high 
right now and the deficit is falling ; that 
gave the grasshoppers the chance to do 
a little more fiddling and kick the bard 
choices down the road again. 

It’s also the case that the tax cuts 
approved Friday are likely to benefit 
wealthier Americans most, while (he 
continuing pressure for spending re- 
ductions will fall on programs dial 
benefit the poor. The deal restores 
some benefits to legal immigrants left 
stranded by last year's changes in wel- 
fare, extends health insurance to un- 
covered children and creates the pos- 

Vice President A1 Gore hailed the 
provisional U.S. budget agreement ne- 
gotiated with the Republicans as “his- 
toric.” while Trent Lott, the Repub- 
lican senator, found it “revolu- 
tionary” in its consequences. 

In fact, while the accord contains 
some positive features and pushes in 
some useful directions, it is, overall, a 
disappointment. Given the possibilit- 
ies opened up by the current economic 
upturn in the United States, it may be 
remembered most of all as a missed 

It's worth keeping in mind drat the 
outline of the deal concluded Friday, 
after long negotiations between the 
White House and congressional Re- 
publicans, has to be approved by Con- 
gress, then have its derails filled in. A 
lot rides on bow those specifics are 
worked out Even in the broad outline, 
though, there are grounds for skep- 

The budgetary balance that will be 
achieved in the year 2002 — the first 
Fiscal balance since 1969, the balance 
which elicited most of the self-con- 
gratulation from the deal-makers — 
may prove ephemeral. They have ap- 
proved rax cuts, the full effect of which 
will not be felt until after 2002. In the 
last hours of negotiation. President BUI 
Clinton won concessions to limit the 
cuts and this ballooning effect. None- 
theless, the tax cuts seem sure to cost at 
least twice as much during the five 
years after the magic year of 2002 as in 
the period leading up to that year — 
and perhaps even more thereafter. 

That is especially unfortunate, be- 
cause the real pressures on the budget 
will start appearing only then. As 
everyone involved in this process 
knows, but few want to discuss, the 

sibility but not a guarantee of increases 
in the amount of college scholarship 
aid for poor students — all to the good. 
But these are corrections or modest 
initiatives, more modest than they 
might have been because of likely cuts 
in the estate and capital gains rax rates 
and the creation of a new middle-class 
entitlement for college tuition that 
may, perversely, lead to increased tu- 
itions rather than increased enroll- 

Overall, none of this is deserving of 
the term “revolutionary.” 


Helping Poor Debtors 

The World Bank and the Interna- 
tional Monetary Fund recently agreed 
for the first time to write off some loans 
to one of its borrowers, Uganda. 
Uganda is special because of a dec- 
adelong policy of pro-growth econom- 
ic reform. 

But the importance of the decision 
goes well beyond a single country. It 
means that the bank and the fund have 
at last put into effect a policy to reward 
poor, indebted countries that are se- 
rious about reforming their econo- 

Impoverished, indebted countries, 
especially those in Africa, cannot es- 
cape poverty under the weight of their 
external debt payments. Oxfam Inter- 
national, an advocacy group that lob- 
bies for debt relief, estimates that 20 
percent of government revenue in 
these countries goes to debt pay- 

Mozambique — where 25 percent of 
children die before the age of 5 from 
infectious diseases — spends twice as 
much paying off its debt as it does on 
health and education. Ethiopia spends 
four times more on debt payments than 
it does on health care. 

Unconditional debt relief, which 
would reward irresponsible economic 
policies, is not the answer. The United 
-States and some of its allies pushed for 
debt relief for countries that undertook 
moves to a free market, including 
prudent budget, monetary and trade 

Last fall the bank and the fund 
agreed. They promised to write off 
enough of their own loans to eligible 
countries so that debt payments would 
be brought down to affordable levels. 
The initiative assumed that creditor 
governments would write off about 80 
percent of their loans to such countries. 
But negotiations stalled over putting 
the plan into effect 

The deal announced last month 
broke the logjam. The bank and the 
fund rewarded Uganda for its exem- 
plary track record by reducing its of- 
ficial debt to near the lowest level — 
about twice the value of its exports — 
allowed under last year's initiative. 

Uganda will be required to wait one 
year for the debt write-off. Oxfam crit- 
icizes even this short wait because 
Uganda will suffer a needless addi- 
tional financial drain. The bank agreed 
to provide Uganda additional money 
over the next 12 months to ease the 
pain, but the fund could also chip in to 
prevent unnecessary suffering by 

The Uganda deal should encourage 
other poor, highly indebted countries. 
The initiative foresees, for example, 
helping countries that have large 
budget deficits, so that they would not 

be forced to impose crippling rax hikes 
to qualify for debt relief. 

The Uganda agreement also recog- 
nized in principle that countries forced 
to wait for den relief will need help in 
the interim. Finally, the bank and the 
fund promised to move quickly on other 
eligible countries — probably Bolivia. 
Burkina Faso, Guyana, Mozambique 
and, eventually, a dozen others. 

Oxfam worries that the World Bank 
and the monetary fund will impose 
excessively long waiting periods on 
other debtor countries and provide in- 
sufficient interim relief. These are valid 
concerns, which the bank and the fund 
can ease by swiftly moving on to other 
eligible countries and providing pack- 
ages at least comparable to Uganda’s. 


Other Comment 

Punishing Burma 

Of the many arguments against eco- 
nomic sanctions, the one that we have 
found the most persuasive is the 
simplest: They don't work. Once they 
are invoked, everyone loses. 

Burma is its own best argument 
against isolationism. It has managed to 
reduce itself tea Third World basket 
case through a self-imposed policy of 
closed-door self-sufficiency that ulti- 
mately spawned the current Stare Law 
and Order Restoration Council. 

The sanctions announced last month 
by the U.S. secretary of state, 
Madeleine Albright, cany even less 
credibility than usual. For one thing, 
they are so clearly half-hearted, ap- 
plying only to new investment. Even 
worse, the effect of imposing sanctions 
on a small fish like Burma while letting 
the much bigger Chinese fish off the 
hook is not to advance the cause of 
human rights in the former, but to 
discredit UJ5. policy toward the lat- 

Not that we think the uncritical em- 
brace of Burma by the Association of 
South East Asian Nations is the nec- 
essary conclusion. While there are ex- 
cellent arguments for a policy of ‘ ‘con- 
structive engagement,” ASEAN's 
eagerness to take this tar-baby straight 
to the altar raises its own questions. 
Last year’s admission of Vietnam to 
the ASEAN family, for example, has 
already created new pressures in the 
group's relations with neighboring 
China. The pressures to incoiporate 
Burma so soon afterward are more 
emotional than strategic. 

By all means, trade with Burma. But 
don’t marry it. 

— From Far Eastern Economic Review. 

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91997. huenmonalHttaki Tribune. Ail right mend. ISSi: 0294-WX- 

China’s Trading Status Isn’t the Real U.S. Issue 

L- . , tnlraf mr»r [In 

W ASHINGTON — President Bill 
Clinton’s misguided appease- 
ment of China has turned U.S. trade 
with Beijing into a political quagmire 
for both hims elf and for his critics here. 
The gathering battle over trade will 
produce only a Pyrrhic victory unlikely 
to abet the cause of freedom and de- 
mocracy in China, whoever wins. 

The fight centers superficially n the 
annual extension of most favored na- 
tion trading status to China, which Mr. 
Clinton must sign and submit to Con- 
gress for approval before June 3. But 
this trading status has become a club to 
swing in a Larger struggle, .which is 
really about Mr. Clinton’s authority, 
and the viability of a China strategy 
dial is now in tatters. 

It is the wrong fight over the wrong 
■ issue at the wrong time, with few of the 
protagonists acknowledging their tree 

Neither revoking nor extending the 
status will deliver the results the ad- 
vocates on each side promise. Nor- 
malized trade with China marginally 
promotes positive change there, in my 
view. Revoking the trading status is a 
Way of punishing China with economic 
sanctions that will make reform of all 
kinds less likely. 

But Mr. Clinton's ovedy lavish and 
warm political embrace of Chinese 
leaders he once styled as bloodstained 

By Jim Hoagland 

dictators has encouraged Beijing to 
push its search for advantage in the 
U.S.-China relationship to the brink 
and make all phases of that relationship 
vulnerable to attack. 

The presideut justified his reversal 
on China by arguing that comprehen- 
sive engagement with Beijing would 
accomplish two vital goals, one polit- 
ical. one economic: 

first, he held out the hope that grear- 
er understanding of the Communist ge- 
rontocracy in B,eijing would cause 
China to reduce human rights abuses at 
home and curb aims and nuclear tech- 
nology trafficking abroad. But Beijing 
has laughed at these American con- 
cerns .and now seems to have under- 
- taken criminal interference in UJS. do- 
mestic politics. 

These developments suddenly en- 
danger the second pillar of Mr. Clin- 
ton’s policy — greater economic in- 
terdependence and cooperation with 
China. Republican free-traders and re- 
ligious conservative groups, unhappy 
about other issues, have joined liberal 
h uman rights activists in targeting the 
favored-nation status, which essen- 
tially exempts China from punitive tar- 
iffs now applied only to a handful of 
rogue states. 

American businesses cashing in on 
the Chinese economic boom are de- 
ploying a major lobbying effort to fight 
this coalition and to argue that more 
trade will bring increased political 
freedoms for the Chinese people. That 
is only marginally true, and in any 
event is not the reason Boeing and the 
others will be twisting arms on Capitol 
Hill. They know the score, and their 
own bottom line. 

In the days after his re-election, Mr. 
Clinton and his national security ad- 
viser, Samuel Berger, charted an am- 
bitious economic program for the- year 
to justify the exchange of presidential 
visits Mr. Clinton has promised to. 
Beijing. They would seek permanent 
extension of the trading status and ac- 
celerated membership in the World 
Trade Organization for China “on 
commercial terms.” 

But Mr. Clinton is suddenly on the 
defensive, trying to blunt the attempt 
by the House speaker. Newt Gingrich, 
to limit any extension this year to three 
to six months, thereby effectively em- 
broiling the president's China policy in 
constant debate. Gone is any talk of a 
permanent extension of Chinese trad- 
ing rights. 

Assume, as I do. that Mr. Clinton 
will veto Congress's attempt to curb 
China's trading status and defeat an 
override. His “victory” will come 

days before China takes over Hong 
Kong. A Chinese crackdown onhuman 
rights in the former British colony will 
embarrass Mr. Clinton by underfilling 
the impotence of his policy. 

But Hong Kong is not the only 
powder keg Beijing's rulers sit on. Jap- 
anese and U.S. specialists have noticed 
a significant beefing up of Chinese 
internal security forces in recent 
months. . 

Some analysts speculate this is 
a jmp-ti not only at possible trouble 
around the Hong Kong transfer on July 
1, but also at the likelihood of serious 
labor unr est throughout China later this 

China has delayed shutting ineffi- 
cient and costly state-run enterprises as 
long as it can. The market shafe of 
Chinese-owned factories is actually 
shrinking in the midst of the foreign 
investment boom. Huge layoffs of state 
employees lie just ahead, in the view of 
many foreign analysts and, apparently, 
of China’s party arid police bosses. 

The Clinton administration has lost 
control of the political and economic 
forces that drive U.S. -Chinese rela- 
tions. Washington has let its diplomacy 
in Asia be taken hostage by events that 
will be little affected by the ceremonial 
visits the American and Chinese pres- 
idents covet so ardently. 

The Washington Post. 

r r :: 

An Urgent Mission for Blair: Getting Britain Euro-Ready 

L ondon — in a few 
weeks’ time, when Hong 
Kong reverts to Chinese rule. 
Britain will have ended its re- 
treat from Empire. In a few 
months 1 time, it will start its 
retreat from Europe. This is the 
prospect faced by Britain's new 
government under Tony Blair. 

The timetable looks like this: 
Before July I, 1998, the Euro- 
pean Council will determine 
which member states f ulfill die 
conditions for.the adoption of a 
single currency, starting on Jan. 
1, 1999. In fkct, by the fall of 
this year the list will effectively 
be known, and an informed 
guess is possible now. Britain, 
Sweden and Denmark (die 

If London stays 
aloof a trade tear 
could loom. 

By Roy Denman. 

Euroskeptic northern peri- 
phery) will exclude themselves 
for fear of losing “sover- 
eignty.” Greece (as an econom- 
ic basket case) will not qualify. 

AU the rest will, except Italy, 
which has difficulty meeting 
the criteria, but which is des- 
perate to join and may weU do 
so with a year’s delay. So by 
2000 there will be a single-cur- 
rency bloc of die Eleven. 

The Labour Party has ruled 
out Britain's joining a single 
currency until 2002. It is not 
difficult to see why. Labour has 
promised a referendum before 
entry. The national mood, 
whipped on by die Europhobic 
popular press, is against the cur- 
rency, and a new government 
would not want to risk losing a 
major referendum in its first 
five-year term. 

But even the date of 2002 is 
unrealistic. One of the criteria 
for entry is “the observance o fc ^^arrangement would be limited 
the normal fluctuation margins to industrial goods; access for 
of the European Monetary Sys- foodstuffs would have to be 
tem for at least two years with- separately negotiated 

1 992, resubmitting the pound to 
a European strait] acket has not 
been a popular prospect. Would 
a Labour government really be 
prepared to announce this in 
three years' time? If not, entry 
hardly seems likely for some ' 
time even after 2002. 

In the meantime, an increas- 
ingly integrated Europe of the 
Eleven will be quick to resent 
any way in which Britain might 
be getting, in a single market, a 
competitive advantage dial 
their tighter discipline forbids. 
So, if speculators force a de- 
valuation of the pound or if Bri- 
tain’s partners find its wages or 
taxes dangerously competitive, 
they will put a surcharge on 
British exports. This will lead to 
a trade war that Britain will 
have no chance of winning. 

Even without a trade war, a 
recent public opinion poll 
showed that 40 percent of the 
British public would prefer to 
leave the European Union. A 
trade war would impel a large 
majority to ask why . if the Euro- 
pean market were barred to 
them, they still had to make a 
substantial contribution to the 
Union budget and suffer agri- 
cultural and fishing policies that 
are about as unpopular in Bri- 
tain as a plague of rats. The 
result could well be Britain for- 
mally leaving the Union, al- 
though, like Norway, remaining 
in a trade relationship with it 

British Euroskeptics and the 
popular press would rejoice. 
But the consequences would be 
less appealing. Foreign invest- 
ment would shift to the con- 
tinent, as Toyota and Siemens 
have already warned. Britain 
would have to accept without 
discussion every piece of trade 
legislation passed by the 
Europe of the Eleven. And the 

would be no room for small fish 
like Britain and Norway. The 
same considerations would ap- 
ply increasingly to political and 
defense questions: it is difficult 
to see how much longer Britain 
would rate permanent member- 
ship in the UN Security Coun- 

This would be a sad destiny 
for a country that only a century 
ago was the world's super- 
power and that twice in the last 

hundred years has taken the 
lead in fighting for freedom. 
Retreat from Empire was in- 
evitable; retreat from Europe 
was not — this course was 
charted by divided and insular 
British governments. 

To break out from it would 
mean a firm decision to end 
British isolation and to make 
common cause with Europe. It 
would mean entering as soon as 
practicable the Exchange Rate 
Mechanism, and then in due 
course a single currency; this 

could mean greater stability, 
lower interest rates, higher 
growth and a leading role in an 
increasingly integrated Europe 
and thus m the world. 

But it would require from Mr. 
Blair vision, leadership and per- 
suasion on a heroic scale. He 
does not have much time. 

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

‘Early Disillusionment’ Ahead? 

T~ ' 

out devaluation against any oth- 
er member state.” In recent 
years the pound has gone up and 
down against the Deutsche 
mark like the Big Dipper — 
hardly a sensible basis for look- 
ing it itrevocably into the euro. 
Ever since Britain's ignomini- 
ous departure from the Ex- 
change Rate Mechanism in 

Britain would have no say in 
the commercial policy of the 
Union and, indeed, no effective 
say in world economic discus- 
sion. The Group of Seven would 
shrink: the Europe of the Eleven 
would speak with one voice on 
economic matters, and in a dis- 
cussion among Europe, the 
United States and Japan there 

L ONDON — The success of 
Tony Blair and his Labour 
Party in ending nearly two de- 
cades of Conservative rule adds 
another countiy to the length- 
ening list of nations where 
parties of the left have recouped 
their fortunes by moving de- 
terminedly to the right 
Spain, Italy, the Netherlands 
and the United States preceded 
Britain down this road. But the 
example of BD1 Clinton and the 
Democrats, among many oth- 
ers, has raised the stakes for the 
victorious Labourites to dem- 
onstrate that they can be as ef- 
fective in government as they 
were in the campaign. 

One man who is acutely con- 
scious of this challenge is Stan 
Greenberg, the Washington 
pollster who worked for Mr. 
Clinton in 1992 and who has 
been here as a consultant to the 
Labour campaign. 

He aigued three basic points: 
“The parties of the right are in 
fundamental trouble, divided 
by issues that are in the short 
term insoluble. The parties of 
the left have demonstrated that 
they are capable of throwing off 
the electoral liabilities of their 
industrial-age past and compet- 
ing successfully for informa- 
tion-age votes. Bur they have 
not shown equal boldness and 
ingenuity in devising and car- 
tying out government policies 
that fundamentally change 
people’s lives for the better.’ 

Mr. Greenberg's first claim 
is debatable. He sees the di- 
vision between traditional busi- 
ness Republicans and the Chris- 
tian Coalition adherents in the 

A New , and Not Better, Earth 

— We live on a new planet. 
That's what recent scientific 
studies demonstrate. 

Because of global warm- 
ing. caused by cars, factories 
and burning forests, the earth 
is shifting beneath us with 
stunning speed and unpredict- 


• The number of ‘ ‘extreme 
precipitation events” (rainfall 
of more than two inches [5 
centimeters] in 24 hours) on 
the North American continent 
has jumped 20 percent since 
the turn of the century, ac- 
cording to the National 
Oceanic and Atmospheric Ad- 

• Spring comes a week 
earlier in the Northern Hemi- 
sphere, says the Scripps In- 
stitution of Oceanography, 
which used carbon dioxide re- 
cords to document its find- 

• Vegetation has increased 
10 percent above the 45th par- 
allel, which crosses Seattle 
and Milan, since 1980, ac- 
cording to a study by Boston 
University scientists who ana- 
lyzed satellite data. 
Understand this about these 

Bv Bill McKibben 

changes: They are enormous. 
They do not represent small 
shifts at the margin, the slow 
evolution that hi always oc- 
curred on the planeL 

Spring a week earlier, 20 
percent more storms, 10 per- 
cent more vegetation since 
1980. If we were looking 
through a telescope and seeing 
the same things happen on 
some other planet, we would 
find it bizarre and fascinating. 
If someone’s watching us, 
they’re doubtlessly be- 

With this level of wanning, 
the Antarctic ice sheet could 
melt more quickly than pre- 
viously believed. The most re- 
cent El Nino ocean warmin 
lasted five years, not the usu: 
two, which researchers at the 
National Center for Atmo- 
spheric Research think may 
result from die extra global 

Compared with the mag- 
nitude of the situation, the re- 
sponse of politicians (and 
even most environmentalists) 
has been feeble. 

Although the United States 

promised at the 1992 Rio con- 
ference on the environment 
that it would not emit any 
more carbon dioxide in the 
year 2000 than it did in 1990, 
it has done virtually nothing to 
meet its promise, and like al- 
most every other developed 
nation it will miss the goal, 
probably by more than 10 per- 
ojhl Now negotiators are try- 
ing for an agreement with 
more teeth — but the dead- 
lines are far away and the tar- 
gets modest. 

Instead of locking 
ourselves into a document that 
physics, biology and chem- 
istry are rendering instantly 
outdated, it would probably be 
better to convene the world's 
leaders on the crumbling edge 
of the West Antarctic Ice 
SheeL Maybe then we’d get 
quick action. 

We need it: Remember all 
those things that scientists 
said would happen if we 
didn’t clean up our act? 
They]re happening. 

This is a new planet, not the 
earth we were bom on. 

By David S. Broder 

United States, and between the 
Europhiie and Europhobe Tor- 
ies here, as reflecting deep- 
seated cultural conflicts which 
will plague those parties for 
years. He may be right, but as 
recently as the time of Ronald 
Reagan and Margaret Thatcher, 
the factions learned to coexist 

He is demonstrably correct 
on Point 2: The victories by Mr. 
Clinton, who said, “The era of 
big government is over,” and 
by Mr. Blair, who took the 
promise of nationalized in- 
dustry out of the Labour plat- 
form, do represent the modern- 
ization of two parties that were 
rooted in the economic griev- 
ances of industrial workers and 
small fanners. Personally and 
politically, Mr. Clinton and Mr.' 
Blair embody a postindustrial, 
boomer-generation, middle- 
class, educated leadership elite 
that has accepted the interna- 
tional economy and the com- 
puter age as facts of life re- 
quiring a different approach to 

But the first Clinton admin- 
istration did little or nothing to 
reduce inequality of income or 
opportunity. And Mr. Green- 
berg, no longer a White House 
insider, is realistic when he 
says: “No one expects great 
things of the second Clinton 
term. If he avoids all the legal 
problems, the most he might 
have to show is a strong econ- 
omy and a balanced budget but 
government and the society will 
not have been reformed.” 

It is that record that shadows 
Mr. Blair even in his moment of 
triumph. The size of his victory 
and the greater degree of con- 
trol a prime minister exerts over 
his government improve the 
odds of his achieving some- 
thing more substantial than Mr. 
Clinton has. 

But he faces a greater risk 
than Mr. Clinton did of being 

thrown for an economic loop. 
Mr. Clinton came in just as the 
economy was beginning to re- 
cover from recession, and the 
reassurance that his first budget 
gave to the financial markets 
has helped sustain the boom, 
providing billions more for 
government spending. 

Mr. Blair starts in the third 
year of a similar British boom, 
facing afar greater likelihood of 
a cyclical downturn early in his 
five-year term. To reassure 
voters and markets, be expli- 
citly accepted current Tory 
spending and tax estimates as 
his own. But some doubt he can 
finance the improvements in the 
health service and schools that 
he has promised within that 
budget And if the economy fal- 
ters. he would face a politically 
cruel choice between higher 
taxes and lower public services 
and benefits. 

“The stray of left-center 
governments,” said Jeff Mul- 
gan, who is soon to quit as di- 
rector of an influential think 
tank to become a policy adviser 
to Mr. Blair, “has been one of 
election illusions turning into 
early disillusionment.” Thai 
was certainly the case with Mr. 
Clinton, and Mr. Blair, learning 
from Mr. Clinton's mistakes, 
was parsimonious with specific 
promises in the campaign. 

“His only real promise is to 
end long-term unemploy- 
ment,” Mr. Mulgan said. Bui 
that promise is a whopper: One 
British household in five has no 
one working. Both job (raining 
and subsidized private employ- 
ment schemes have failed more 
often than they have succeeded 
in other countries, and Mr. B lair 
has ruled out a large-scale gov- 
ernment jobs program. 

Both conscience and politics 
dictate that these new parties of 
the left cannot ignore this chal- 
lenge. But they- have yet to 
demonstrate they can overcome 

The Washington Post. 


The writer, an author, con- 
tributed this comment to The 
New York Times. 

1897: Fire Kills 115 

PARIS — Over a hundred per- 
sons, mostly women, were 
burned to death in a fire' which 
made of the Grand Bazar de la 
CharitS, the most fashionable of 
the charitable developments of 
the Paris season, a human 
shambles. Within a few 
minutes, the whole building, 
constructed of wood and 
covered with painted canvas, 
was in blaze. About 1,200 
people were in the bazaar at the 
time, and the number of the 
dead is estimated at 1 15. 

1922: Shell’s Oil Deal 

WASHINGTON — President 
Harding and Secretary of State 
Hughes prepared a firm protest 
to Great Britain in the event of 
verification of the signing of a 
contract giving the Royal Dutch 
Shell Company monopolistic 
rights in the Russian oilfields. 
The United Slates does not in- 

tend to permit such a contract. " 
which not only violates the 
open-door principle, but would 
also set a precedent and cause a 
general rush of nations to secure 
monopolistic exploitation of 
other Russian resources. 

1947: The GIs’ Casbah 

ALGIERS — The Casbah. Al- 
giers notorious native quarter, 
has become a hide-out for at 
least 250 American Army 
deserters, French police offi- 
cials revealed. These ex-GIs, 
most of them still wearing parts 
of their uniform, have formed 
into gangs and are living by 
peny thievery and black-market 
transactions in the heart of this 
labyrinthian slum perched on a 
hill overlooking the European / 
city. The Arabs refer to their ' 
new neighbors as the "Amer- 
ican colony. * ’ The deserters are 
presumably remnants of the 
American Army which landed 
at Algiers in November 1942. 

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Wn Euro-Ke^ 

lament* Ahead 

r w 

Get well soon, Martina. 

Accidents will happen. 
In the home, on the 
street... on horseback. 
And they happen ail 
too often to top ath- 
letes like Martina 
Hingis - the world’s 
Number One tennis- 
woman, as well as an 
accomplished rider. 

When you strive to 
outdo your very best, 
to scale new. peaks 
of performance, there 
are always risks. 

True sportswomen 
accept these risks along 
with the rewards - on 
the tennis court or 
off. As Martina’s uncon- 
ditional fans and 
partners, we at Opel 
would certainly 
endorse that. 

But so much for phi- 
losophy. Your biggest 
challenge now. 

Martina, is to get well 
soon. Our thoughts, 
and those of your 
many thousands of 
fans the world 
over, are with you. 

PAGE 12 




Sanctioning the Janus Words 

By William Safire 

W ASHINGTON — “I’m pondering 
the difference between boned and 
boneless chicken," writes Alan Levy, ed- 
itor in chief of The Prague Post. He is even 
more troubled about words like sanction, 
which is a verb for ‘ ‘allow, authorize." and 
a noun for "punishment." almost the op- 
posite. “Is there a lexicographical term for 
words that become antonyms of themselves 
through distortion, if not misuse?" 

The word is contranym or antilogy, but 
the popular phrase for it is Janus word. 
Janus was die Roman god of beginnings; in 
Latin, ianus is "gateway," and January, 
the opening month of die year, is named 
after this bearded custodian of the uni- 

The face of Janus was on the gates of ids 
temple in the Roman Forum; they were 
open in wartime and closed when Rome 

was at peace, requiring a bead with two 
s. One se 

faces. One sense of Janus-faced is “de- 
ceitful, two-faced," and another is "sen- 
sitive to dualities and polarities." 

In "Crazy English”’ (1989), Richard Le- 
rrer told of f 

derer told of Queen Anne's supposed com- 
ment in 1710 on seeing the completion of 
Sir Christopher Wren's magnificent edi- 
fice, St Paul's Cathedral; "awful, artificial 
and amusing. " At tbe time, that was a royal 
compliment, with awful meaning "awe- 
inspiring," artificial “artistic” and amus- 
ing “amazing." 

Those are merely words that flipped their 
definitions to the opposite, but/anus words 
retain both the ori ginal and the changed 
senses. In his most recent book, “Power 
Language’ ' (Houghton Mifflin trade paper, 
Si 1.9S), the best short course you can take 
in good writing and strong speaking, Jeffrey 
H. McQuain gathers up words that face in 
two directions. One ts oversight: either 
“something overlooked" or the quite dif- 
ferent “function of overseeing." 

Another is arguably, which McQuain 

urges should be replaced by certainly , if 
ar hat ’ 

that’s your drift, or hardly, if you intend tbe 
apposite. A third is the verb to table, which 
in Britain denotes “to {nit on tbe table for 
active discussion’* but in America means 
“to chuck it on the table to gather dust” 

If words exist to communicate meaning. 
Janus words - are not good words. They 
communicate confusion. We're stuck with 
the ones mentioned here so far. at least until 
one sense sinks and the other dominates, as 
"breathless in adoration" did with 
“yucky” in defining awful. But we don’t 
have to encourage the coinage of new Janus 

Consider showstopper , ‘ ‘spectacular 
performance that causes die audience to 
interrupt the show with applause,*' which 
President Bill Clinton used recently to 
mean “deal breaker.* * and for which he was 
roundly abused in this space. But “as any 
computer nerd could tell you." wrote Vicki 
Meagher of Bedford. Maine. ’ ‘a showstop- 
per (one word, no hyphen) is a bug so 
egregious that even avid users of a piece of 
software will find the product unusable. A 
showstopper stops the show, all right, and 
causes people to duo w up their hands — but 
in disgust, not to applaud." 


Can it be that this new word — barely 70 
years old — has developed an opposing 
sense? Apparently so; when Professor 
Richard Gambino of the State University of 
New York at Stony Brook was awarded the 
National Medal of Technology at die White 
House twoy ears ago. and began to talk tech, 
Clinton pointed to Vice President A1 Gore 
and said, “talk to A1 about that; he's in- 
terested in all that information technol- 
ogy." Writes Gambino, no mere computer 
nerd: “I suggest President Clinton may 
have picked up this usage of showstopper 
from the technology wonks he works with 
— perhaps A1 Gore, who did in fact ask 
some informed technical questions. ' ' 

“ Showstopper is often used in engineer- 
ing parlance," Gambino continues, "in the 
sense of ‘something that presents an in- 
surmountable obstacle.* For example, a 
boss might ask a young engineer in a project 
review, ‘Is this problem a potential 
showstopper!' I heard this term at IBM 
Research in technical discussions a least as 
early as 1975." 

Clarity lovers, awake! Stop this Janus 
word before it splits the lexicographical 
screen. Ensconced in my Queen Anne 
chair, I say it's awful, artificial and arguably 

New York Times Service 



By Philip Roth. 423 pages. 
$26. Houghton Mifflin Co. 

Reviewed by 
Michiko Kakutani 

B ACK in 1 960. Philip Roth 
gave a speech in which he 
argued that American life was 
becoming so surreal, so stu- 
pefying. so maddening, that it 
had ceased to be a manageable 
subject for novelists. He ar- 
gued that real life, the life out 
of newspaper headlines, was 
outdoing the ima gin ation of 
novelists, and that fiction 
writers were in fact abandon- 
ing the effon to grapple with 
"the grander social and polit- 
ical phenomena of our times” 
and were turning instead "to 
the construction of wholly 
imaginary worlds, and to a 
celebration of the self.” 

These remarks — made 
even before John Kennedy's 
assassination and the social 
upheavals of the '60s mag- 
nified the surreal quotient of 
American life — help illu- 
minate what Tom Wolfe iden- 
tified (with considerable self- 
serving hyperbole) in the late 

‘80s as a retreat from realism. 
They also help explain the di- 
rection that Roth s own fic- 
tion has taken over the last 
three and a half decades, his 
long obsession with alter egos 
and mirror games and the 
transactions between life and 

In his latest novel. "Amer- 
ican Pastoral,'’ however, 
Roth does away with — or 
nearly does away with — 
these narcissistic pyrotech- 
nics to tackle the very sub- 
jects he once spumed as un- 
manageable: namely, what 
happened to America in the 
derades between World War 
U and Vietnam, between the 
complacencies of the *50s 
and the confusions of the 
'60s, '70s and '80s. With the 
story of Seymour (Swede) 
Levov, Roth has chronicled 
the rise and fall of one man's 
fortunes and in doing so cre- 
ated a resonant parable of 
American innocence and dis- 

The resulting book is one 
of Roth's most powerful nov- 
els ever, a big. rough-hewn 
work built on a grand design, 
a book that is as moving, gen- 
erous and ambitious as his last 

novel, "Sabbath’s Theater.” 
was sour, solipsistic and nar- 

As Roth has observed him- 
self. his books tend to “zig- 
zag" between the two poles 
of his imagination: between 
the willfully decorous (“Let- 
ting Go.” "The Ghost 
Writer”) and the willfully 
outrageous ("Portnoy ’s 
Complaint,** “Our Gang"), 
the Jamesian and die Ra- 
belaisian. It’s eminently dear 
that "American Pastoral" be- 
longs to the first category, and 
it's also dear that its polite, 
dutiful hero, Levov. is die op- 
posite number of such flam- 
boyant egotists as Mickey 

At the same time, Roth has 
taken these two contradictory 
impulses in himself, and used 
diem to limn two contradic- 
tory impulses in American 
history: the first, embodied by 
Levov, representing that op- 
timistic strain of Emersonian 
self-reliance, predicated upon 
a belief in hard work and pro- 
gress; the second, embodied 
by the Swede's fanatical 
daughter. Mercy, represent- 
ing the darker side of Amer- 
ican individualism, what 

Roth calls "the fury, the vi- 
olence, and the desperation” 
of * ‘die indigenous American 

Whereas the collision of 
the prudent and the trans- 
gressive, the normal and the 
Dionysian, has been die 
source of uproarious comedy 
in earlier Roth novels, that 
same- collision in “Pastoral” 
generates a familial — and 
generational — showdown 
with tragic consequences, one 
that also becomes a kind of 
metaphor for America’s tu- 
multuous lurch into the 
second half of the 20th cra- 

W E do not get the details 
of Seymour’s story di- 
rectly from Roth, but through 
the prism of Roth's favorite 
hero and mouthpiece, Nathan 
Zuckerman, the infamous star 
of die "Znckennan" trilogy, 
who, we’re told, now lives in 
seclusion in the New England 
countryside, his body and 
spirit ravaged by surgery and 

This book boasts one of die 
most sensitively observed gal- 
lery of people to emerge from 
a Roth novel in years. In ad- 


By Alan Truscott 

D ummy is supposed to 
be dumb during the play, 
but the post-morten is some- 
what different. He or she may 
discuss matters with partner, 
but etiquette calls for staying 
out of the opponents* prob- 
lems. Occasionally, however, 
tbe temptation to intervene 
may be irresistible. 

The diagramed deal was 
played recently in the Israel 
Bridge Festival in Tel Aviv, 
which attracted players from 
more than 20 countries. 

Consider what the result 
should be in four hearts after 

tbe lead of the spade jack. This 
was reached after East had 
opened with a weak no-trump 
and then retreated to two 
spades after North doubled. 

Looking at ail four hands, 
the reader should consider die 
fate of four hearts after the 
opening lead of the spade 
jack. This was ducked, and 
East took his king and con- 
tinued the suiL South won 
with tbe queen, led to the 
heart ace and threw a dia- 
mond on the spade ace. 

He then eliminated dia- 
monds by cashing the king 
and ace and ruffing the third 
round. Then he led another 
trump, and East was caught. 

He had to choose between 

leading a club and conceding 
a niff t 

and sluff in spades. 
Whichever he did. South’s 
contract was safe. 

"A club lead would have 
beaten it,” East declared, 
"but there was no thin g we 
could do after a spade lead.” 

The dummy was Martin 
Hoffman of Lauderhill, Flor- 
ida. Casting etiquette aside, 
he contradicted East "You 
could have beaten it," he 

* ‘Just duck the first trick,' * 
Hoffman said. "Then your 
parmer will eventually win a 
diamond trick and lead a 

* A7« 

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Neither side was vulncrahle. The bid- 

















West led the spade jack. 

dition to Seymour and his vi- 
tuperative brother. Jerry, 
there’s their father, Lou, a 
businessman reminiscent of 
Roth’s own father in “Pat- 
rimony with "absolutely 
totalistic notions of what is 
good and what is right" 
There's Dawn, the Swede's 
beautiful wife, a woman who 
is neither a castrating witch 
nor a passive doormat — 
something of a rare occur- 
rence in recent Roth novels — 
but a fully fashioned human 
being, grieved and perplexed 
by bra 1 daughter’s defection. 
And there is a rich, variegated 
supporting cast of friends, 
neighbors and employees, 
who lend ballast to Seymour's 

Even Merry — who atone 
point is described as "chaos 
itself” — turns out to be a 
complex creature, enigmatic 
and alarming, but also oddly 
recognizable: a young wom- 
an captive to her emotions, 
impulsive, rebellious and 
angry, a girl who in a space of 
months has exchanged 4-H 
meetings for violent political 
demonstrations. Like her far 
cher, the reader struggles to 
connect the dots in Iter life, 
struggles to explain how this 
cherished daughter of priv- 
ileged parents could end up a 
fugitive from justice. But 
then, that is Roth’s point: that 
events are not rational, that 
people are not knowable, that 
life is not coherent. 

In foe end, the saga of foe 
Levov family is one of those 
stories out of foe headlines 
that make the reader’s head 
reel, one of those stories Roth 
once characterized as a threat 
to the novelist’s powers of 
invention. It is his achieve- 
ment in these pages that he 
has not only tackled and ima- 
ginatively harnessed such a 
daunting subject but has also 
used it to create a fiercely 
affecting work of azt. 

. ..Ti. 

a ;1p T. 


- ; N 't 


o“* b 



: r-‘* 


fit tC>: 

Michiko Kakutani is on the 
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As ‘Non- Compete’ Clauses Proliferate, So Do Lawsuits Over Them 

>.r-- 'w 

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: ?S0 

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By Noam Neusner 

Blwrn ihern ,\V*vj 

■ NEW YORK —- When eight interest- 
rare options traders working in New 
Jersey for Exco PLC quit to join a rival in 
New York, the British brokerage con- 
cern sued, saying the worker* had vi- 
olated signed agreements not to work for 

But a state judge tossed out Exco’s 
claims, saying the agreements were “too 
broad because they barred traders, for a 
year after leaving Exco. from working 
for any competitor located within 100 
miles (160 kilometers) of New York 
City — one of the few places in the 
United States where interest-rate options 
traders can find jobs. 

• As more companies are learning, 
agreements designed to prevent workers 
from joining competitors often are 
scorned by judges who don't like con- 
tracts that make it hard for people to earn 
fc living. 

i “Courts see it as the last vestige of 
indentured servitude.” said David Carr, 
a labor lawyer with the firm Johnson, 
Smith, Pence in Indianapolis. 

, So-called non-compete agreements 

typically require an employee not to 
work for a competitor in a certain geo- 
graphic region or for a certain period of 
time after leaving a company. Some- 
times they carry a penally for leaving, 
such as the cancellation of options to buy 
stock at reduced prices. 

Such agreements, once found only in 
employment contracts of top managers, 
increasingly are being applied to middle 
managers as well. 

‘ ‘Human capital is increasingly more 
important, and everybody knows it,” 
said Alan Sklover. a New York lawyer 
specializing in labor issues. 

And because the agreements are being 
applied to more workers, more disputes 
are winding up in court. “Non-com- 
pete" agreements are now among the 
most frequently litigated contracts in the 
United States, according to Larry Cun- 
ningham. a professor at George Wash- 
ington University Law School. 

Specialists in the field say the agree- 
ments will be vulnerable to legal chal- 
lenges if they can be seen as too broad or 
as excluding a worker from a geographic 
region that is crucial to a certain industry 
— such as Wall Street. 

“The court has a hard time accepting 

the fact that one company can prevent a 
person from earning his livelihood else- 
where," E. Daniel Raz, owner of Ana- 
lytic Recruiting Inc. in New York. said. 

Courts are Less sympathetic, however, 
if a worker had signed such an agreement 
in exchange for a bonus or other benefits 
— deals that top executives frequently 
strike but midlevel managers rarely do. 

In addition, courts sometimes side 
with companies that argue that even 

The court agreed and ruled that Mr. 
Redmond, who was general manager for 
Pepsi's businesses in California, would 
inevitably use trade secrets in his new 
job as vice president of operations in 
North America for Quaker's sports 
drink, Gatorade. 

“PepsiCo finds itself in the position 
of a coach, one of whose players has left, 
playbook in hand, to join the opposing 
team before the big game." the 7th U.S. 

Agreements designed to prevent workers from leaving to 
join competitors are frequently scorned fay judges as 
‘the last vestige of indentured servitude. 3 

employees who had not signed non- 
compete agreements should be barred 
from joining a rival char could profit 
from its trade secrets. 

For example, when William Red- 
mond left the soft-chink maker PepsiCo 
Inc. to join Quaker Oats Co. in 1994. 
Pepsi sued, asking that Mr. Redmond — 
who had never signed a non-compete 
agreement — be barred from working 
for Quaker for six months. 

Circuit Court of Appeals wrote in up- 
holding a lower court's ruling. 

Mr. Redmond no longer works for 
Quaker Oats. 

But if a non-compete agreement 
sometimes does not prevent a worker 
from taking a new job. it can sometimes 
limit his duties for his new employer. 
Dow Chemical Co. last week accused 
General Electric Co. of stealing trade 
secrets after hiring 14 people from 

Dow's automotive-plastics group. 
While GE denied the claims, a Michigan 
judge imposed a temporary restraining 
order and said that a former Dow en- 
gineer. Darin Evans, could not work on 
certain GE projects. 

In some other cases, even if a non- 
compete agreement does not hold up, a 
former employer can win a case on other 

In Exco's case, for example, it failed 
to keep the interest-rate options traders 
from leaving for jobs at Cantor Fitzger- 
ald Securities Corp. in New York. But a 
jury 1 in 1996 awarded Exco $4.3 million, 
ruling that Cantor Fitzgerald had in- 
terfered with the traders' employment 
contracts, said Lawrence Cam ev ale of 
the law firm Carter, Ledyard & Milbum. 
which represented Exco. 

“Even if you don't prevail on keeping 
someone our of the market, * ' Mr. Game- 
vale said, “there may be some more 
significant damages that an employer 
can show.” 

Some labor lawyers say they are con- 
cerned that companies use the threat of 
litigation over non-compere agreements 
to intimidate workers. 

Daniel O'Neill left Campbell Soup 

Co. for a prime competitor, H J. Heinz 
Co., in January. Mr. O’Neill had agned 
an agreement that Campbell said pre- 
cluded him from working for Heinz lor 
1 8 months. Heinz, in a pre-emptive law- 
suit, said the agreement should not apply 
ivwmy Mr. O’Neill would work in its 
pet-foods and tuna unit He had been 
president of Campbell’s soup and pre- 
pared-foods division. 

Campbell suggested that Mr. O’Neill 
be allowed to work for Heinz after a six- 
month “ice period" during which he 
would be required to keep a log of his 
conversations to prove he did not speak 
to Heinz employees, even socially. 

The companies settled in February. 
Mr. O’Neill can start at Heinz on SepL 
15. and Campbell can send engineers to 
inspect Heinz's plants to make sure its 
soup-making techniques are not being 

E ilfered. Mr. O'Neill must keep a log, 
ut be will be allowed to mingle with 
Heinz employees. 

Labor lawyers called the settlement a 
victory for Campbell. Not only did it 
make' Mr. O’Neill's departure difficult, 
but the soup maker snowed its other 
executives it would not let them leave 
without a fight 

Dysfunctional Boss’s Damage Extends Beyond Underlings, 3 Primers Warn 

J By Deborah Stead 

M*h - York Times Smite 

- NEW YORK — Some chief exec- 
utives are so unbearable that companies 
display warning labels. 

“He's awfuT," a midlevel manager 
said of her organization's chief during a 
job interview some years ago. 

“A megalomaniac." declared the 
next-tier interviewer. “He’ll interfere 
with projects, blame you for things: 
we’re not just talking about an annoying 
boss here." 

, Presumably, the caveats were meant 
to weed out the weaklings who would 
quake before the boss — or maybe the 
warriors who would not. 

Now, three books about dysfunctional 
bosses issue warnings that sound more 
dire: Neuroses and character flaws can 
do real damage to corporations,- they say. 
Apparently, even in the lean and mean 
*90s,the dune has come for emotionally 
‘aware executives. 

In ‘ ‘Beyond fee Looking Glass: Over- 
-coming die Seductive Culture of Cor- 
porate Narcissism" (Amacom, $24.95), 

Alan Downs argues feat narcissists — 
those interested only in image, power 
and profit — are invading America’s 

Mr. Downs, the author of 4 ‘ Corporate 
Executions," which criticized fee greed 
behind much business re-engineering, is 
angry about mass layoffs and social in- 
equities, about stiffed employees and 
poor corporate values. 

But while his bad-behavior profiles 
may have you nodding in recognition, 
they are too narrow a prism for viewing 
corporate America's failings or callous 

Narcissism, a psychoanalytic con- 
cept, is broadly defined as fee inability to 
empathize with anyone but oneself. 
People with a “narcissistic personality 
disorder" are more or less addicted to 
being admired and feel special enough 
not to play by the usual rules. 

Narcissistic managers, Mr. Downs 
wrote, are “insidiously toxic" to a com- * 
pany, despite traits often welcomed in 
business culture: a workaholic style, say, 
or obvious ambition. Overcontrolling 
and highly competitive, he said, they 

tend to create internal fiefs, turning a 
company into a ‘ 'cutthroar organization 
feat wastes resources competing with 

Perhaps most important, he con- 
cludes, narcissistic managers are ob- 
sessed wife that ultimate trophy, profit. 
"Forget social responsibility: forget 
caring for employees, " he wrote. 

Where does ail this narcissism come 
from? Mr. Downs cites approvingly oth- 
er business psychologists who argue that 
contemporary society, wife its emphasis 
on appearance over substance, is fertile 
soil. Corporate culture, he adds, lets it 

Naming names, Mr. Downs blames 
narcissism for chaos, calamities and de- 
moralizing downsizing at a number of 
companies. But despite some sharp de- 
piction (and sound advice about drum- 
ming out grandiose managers), the book 
ultimately overstates psychology’s role 
in shaping corporate America's basic 

Now for the nice-guy side of corporate 
psyches: “Executive EQ: Emotional In- 
telligence in Leadership and Organiza- 

tions, ' ' by Robert K. Cooper and Ayman 
Sawaf (Grosset/Pu mam. $24.95). 

“Executive EQ" builds on growing 
research in this area — some of which 
appears in Daniel Goleman’s 1995 best- 
seller, “Emotional Intelligence" — and 
applies it to the corporate world. 

Mr. Cooper, a consultant, and Mr. 
Sawaf, an entrepreneur who also helps 
schools teach emotional skills to chil- 
dren, argue that wife today’s high-tech 
management challenges, A does not al- 
ways lead directly to B, so companies 
need people with good intuition. 

As always, they add, businesses also 
require employees who are congenial, 
flexible and able to read emotions. Such 
“high EQ" people have already been 
found to succeed at work. The idea here 
is to create more of them. 

“Executive EQ” can be tough going 
at times. Each chapter is densely packed, 
and there are some jarring tone shifts — 
wise but irrelevant lessons from a 
Tibetan elder, for example, mixed in 
wife insightful counseling. 

The authors also insist on some goofy 
equations, such as “(.Calmness x En- 

ergy) - (Tension x Fatigue) — Motiv- 

But executives seeking a guide to emo- 
tional understanding can fend one here. 
The authors lay- down fee “four corner- 
stones” of executive emotional intelli- 
gence: literacy, which involves reading 
emotions; fitness, which includes open- 
ness to dissent; depth, which develops 
potential and independence, and “al- 
chemy,” fee art of sensing opportunity. 

Just so managers will not reel they are 
indulging themselves, fee book recounts 
the success of emotionally smart man- 
agers, including some at Federal Express 
Corp. and at fee Ritz-Carlton hotel 
chain, where employees are trusted 
enough to spend as much as $2,000, 
without anyone else’s authorization, to 
solve a guest's problem. 

Corporate character-building is the 
goal in “Protea Your Achilles Heel: 
Crafting Armor for fee New Age at 
Work" (Andrews & McMeeL $19.95). 
by Wess Roberts, who wrote fee best- 
seller “Leadership Secrets of Attila fee 

Mr. Roberts argues that the corporate 

world needs more managers with moral 
fiber, in pan to resist fee lure of ever- 
greatcr profit at workers' expense. 
(Some 8.4 million people lost jobs in 
corporate consolidations or restructur- 
ing from 1993 to 1995. be reminds us.) 

He retells the story of Achilles, fee 
son of Thetis (a goddess) and Peleus (a 
mortal), mapping out the Greek soldier's 
flaws: arrogance, greed and deceit, to 
name a few. He also suggests some 
corrective “shields" — humility, self- 
lessness and honesty, for example. 

Along fee way, he links each flaw to a 
corporate foiling, each antidote to a tale 
of success. 

Despite lively writing, however, this 
is slim pickings. As with all management 
guides that draw from, say, fee Bible or, 
in this case, Homer's ‘ ‘Iliad,’’ things can 
get unintentionally comic — as in fee 
wrath of Apollo reminding fee author of 
a takeover of an auto-parts company. 

And what's wife the tragic-flaw stuff? 
Yes, greedy executives demean their 
employees and play fee crueler capitalist 
games for glory and gain. But they cer- 
tainly are not fallen demigods. 

•i q 


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^ Intellectual Property Switzerland 

This international sports marketing company requires a common law qualified lawyer with 
between 2 and 6 years IP and particularly trade mark experience. (Refi 495NT). 

► Head of Department Spain 

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in the US headquarters. < Ref: 1075 NT j. 

► Employment/HR Counsel Germany 

This world leading US IT multinational is looting for a lawyer, S to 8 years qualified, to 
provide HR/Employment law adrice to the company's European operations, i Rcfi 2 9 36 NT). 

► European General Counsel Munich, Paris or Amsterdam 

This young and dynamic US IT company urgently requires a lawyer with between 4 and 8 
years experience gained within another information technology company. The role will 
include managing one UK-based lawyer. I Ref: 2964NT). 

► European Counsel Belgium 

This diversified. US multinational requires a Belgian or German qualified lawyer, aged in 
their 30's, with European commercial experience. Working closely with the business, you 
will handle a broad commercial role throughout the region. (Refi 124NT). 

► International Patent Attorney UK 

This market leading US multinational requires a Patent Attorney wife at least 2 vears 
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International Legal Recruitment 

Craven Home, 1 21 Kmgsway, London WC2B 6PA 
Tel *44 (0)171 831 3270, Ear *44 (0)171 831 4429 

air Canada 

a BrSath of Fresh Air 

| V. IVTFRMTHlMt. Q* 1 1 

Ifcral O-^^ tbnbime 


MONDAY, MAI' 3, 1997 

RAGE 15 


A Breath qf Fresh Air 

U.S. TV Stations 
Face a Tall Order 

Rushing to Fill Antenna Gap 

By Joel Brinkley 

Nm- York Times Service 

NEW YORK —In Austin. Texas, construction bad to be 
hated for several months during the nesting season of the 
golden-cheeked warbler. 

In Dallas, a construction accident killed three people 
because workers had not been properly trained. 

And in New York, even the city’s tallest skyscrapers 
may not be up to the task. 

For the few companies in the business of building 
television towers, the prospect of bizarre complications, 
bureaucratic delays and even fatal mistakes only serves to 
compound the extraordinary challenge now facing them. 

Under a federally mandated schedule to usher in digital 
high -definition television — a timetable that the con- 
struction industry says may be impossible to meet — the 
tower builders are embarking on a crash program across 
the United States to build hundreds of new television 
towers, at heights up to 2.049 feet (622 meters), taller than 
the world's tallest buildings. 

The trouble is, only about a half-dozen crews have the 
experience and training to put up these towers. 

Together, all of the U.S. tower-building teams may be 
able to put upas many as 20 towers ayear. But each yearfor 
die next four or five years, the broadcast industry is going 
to call on them to build 100 or more. Broadcasters and 
tower builders call it a Sisyphean mission; and if they do 
not succeed, many of the new digital stations will be years 
late going on the air. 

“f don’t see how we can get it done," said J.C. Kline, 
president of Kline Towers, one of only three companies in 
the United States that build television towers. "We just 
don’t have the capacity for this." 

Scores of engineers, politicians, lobbyists and bureau- 
crats spent mote than a decade in a tortured govemment- 
run program to devise the standard for the new generation 
of television. Now that the standard is set, and the Federal 
Communications Commission has lent every television 
station a second channel for the transition to' this new 
service. 1 .600 stations have to find places for the antennas 
that will beam die new programming to their viewers. 

Nearly all of them had chosen to defer even thinking 
about this problem until now, in part because a new tower 
costs at least $1,000 afoot, or $2 million for a 2,000-foot 

Digital television does not demand a tower any different 
from what conventional broadcasting requires, so in many 
cases, existing towers may suffice. 

But as many as one-third of the United States' television 
stations may have to put up new towers because their 
existing ones are loaded to capacity with antennas for 
television and radio stations, cellular phone providers and 
other communications systems. 

For these folly loaded towers, even one more amertna — 
with as much as 2,000 feet of fat copper cable leading to it 

Daimler Woos Thomson Bidders 


A new television tower going up in a Dallas suburb. 

— would add more weight than the tower could bear. 

The National Association of Broadcasters and Tom 
Vaughan, an industry consultant who specializes in towers, 
say their recent surveys of America’s television stations 
indicate that 500 to 700 of them will need new towers. 
Some broadcast executives say those numbers may be a bit 
too high. 

But whatever the final number of new towers turns out to 
be, broadcast executives know that die scope of the task 
will be daunting. 

"It’s something the world has never had to face up to 
before." said Bob Niles, who is in charge of the tower- 
building program for ABC, which owns 10 stations and 
expects to erect new spines for two of them. "It’s a serious 

Until early April, the tail-tower industry was a sleepy 
little business that had been depressed since the early 
1980s, when growth in die television industry slowed. In 
recent years, Kline along with its two friendly rivals — 
LeBlanc Communications Inc. and Stainless Inc. — have 
together been called upon to build maybe 10 or 15 tall 
towers a year, as new stations have gone on the air and 
existing stations have occasionally replaced towers. 

Building towers is nigged, skilled, dangerous work, and 
‘ 'right now I would be surprised if even a dozen crews in all 
of North America have the training to do it." said John 
Miller, president of LeBlanc. 

And that is just one of the problems. 

Most television towers in use today were built in the 

See TOWER, Page 19 

Bloomberg Ne*x 

MUNICH — Daimler-Benz 
Aerospace AG wants to team up with 
the winning bidder for Thomson-CSF. 
the French defense -electronics com- 
pany, as pan of its goal of encouraging 
integration among European defense 

While Germany's top' aerospace 
company is not seeking a stake in 
Thomson-CSF. a Daimler spokesman. 
Christian Poppe, said talks were in pro- 
gress with both Alcatel Alsthom SA and 
Lagardere Groupe’s Matra Defense Es- 
pace unit — competing bidders for 
Thomson-CSF — to form an alliance. 

“We are not talking about a joint 
bid," Mr. Poppe said. "We are looking 
for a form of cooperation or alliance." 

Daimler wants to team up with the 
winning bidder in the areas of space 
flight, missiles and defense electronics, 
the company's chief executive, Man- 
fred Bischoff, told the German news- 
paper Well am Sonntag. 

The French government, which has 
set a deadline of Wednesday for bids for 
Thomson-CSF, has accepted Alcatel 
Alsthom, allied with Dassault Indus- 
tries, and Lagardere as suitors. Mr. 
Poppe said talks were continuing with 
both companies. 

Separately. Mr. Bischoff called on 
the German government to decide 
quickly whether to buy the Eurofighter 
2000 fighter jet, which is a joint project 
of Daimler, British Aerospace PLC, 
Alenin Difesa of Italy and CASA of 

“Our shareholders won't be willing 
to accept much longer that we are losing 
a million marks ($579,000) aday," Mr. 
Bischoff said. "That's how much the 
delay of serial production costs." Ger- 
man government officials have prom- 
ised a decision by July. 

Mr. Bischoff, who has long cham- 
pioned the integration of the European 
defense industry as the only way to 
remain competitive amid shrinking na- 
tional-defense budgets, said Germany’s 
aerospace industry would only get 
weaker if it remained primarily depend- 
ent on German funding. 

In the medium and long term, the 
Airbus Industrie alliance should be- 
come the vehicle for cooperation in mil- 
itary jets in addition to its current joint 
development and sale of civil aircraft, 
Mr. Bischoff said. That is the only way 
to compete with major U.S. rivals such 
as Boeing Co. and Lockheed Martin 
Corp-; he said. 

He said the U.S. companies had an 

advantage because the military tech- 
nology they developed with funding 
from the u.S. government also ben- 
efited their civil-aircraft divisions. 

He said European defense integration 
was needed so that technology from one 
sector could be easily transferred to 
another, such as applying jet-fighter 
control technology to rockets. 

‘ ‘The business areas must profit from 
one another," Mr. Bischoff told Welt 
am Sonntag. 

He said Daimler also was seeking to 
buy Siemens AG's defense-electronics 
business as part of its effort to con- 
solidate the European defense industry. 
The Siemens unit has 1.2 billion 
Deutsche marks in annua] sales. 
Siemens’s air-traffic business, however, 
was to be sold directly to Thomson- 
CSF. Welt am Sonntag reported. 

Daimler also warns to take over the 
German missile company Bodensee 
Geraetetechnik GmbH, which is ma- 
jority-owned by Germany’s Diehl 
Group and 20 percent held by Matra. 
But Diehl Group does nor want the 
company to be run by Daimler, Welt am 
Sonntag repotted. 

German aerospace companies needed 
to consolidate as part of die European 
integration process, Mr. Bischoff said. 

China Plans a Trade-Rules Overhaul 


BEIJING — China, whose applica- 
tion to enter the World Trade Orga- 
nization has been held up by complaints 
that its market is not open enough, plans 
to overhaul its rules on procurement to 
meet international standards and to save 

The State Council, or Cabinet, is con- 
sidering a draft law that would require 
government departments and organiza- 
tions to handle their purchases by public 
bidding, said She Jianming, a vice min- 
ister with die State Planning Commis- 
sion, according to a report in the official 
China Daily Business Weekly. 

China's National People's Congress 
has made passage of the proposed gov- 
ernment-procurement law a priority this 
year, said Cao Kangtai. executive- 
deputy-director of the Cabinet’s legis- 
lative bureau. The rules will probably 
take effect in 1998, according to an 
unnamed person in die State Planning 
Commission, the state newspaper said. 

Trade ministers from die United 

States, European . Union. Japan and 
Canada said after a meeting in Toronto 
on Friday that China would have to 
improve access to its market for foreign 
companies if it wanted to join the 
Geneva-based trade organization soon. 

China has already begun to invite 
public bids for equipment-buying, con- 
struction and other purchases. State 
businesses also use direct procurement, 
though, as well as "under-the-table 
deals and government interference, 
which hampers management of the bid- 
ding process," the China Daily said, 
citing Mr. She. The new law would 
■ provide detailed rules, legal obligations 
and responsibilities for the industries 
involved, Mr. She said. 

Also on Sunday, a top fax official said 
Beijing planned to cut taxes for im- 
ported cigarettes, raise domestic con- 
sumption taxes on liquor and introduce; 
taxes on other luxury items to try to 
deter smuggling and tax evasion. 

Wang Zheng, deputy director of the 
taxation policy department of the Min- 

istry of Finance, said China's 45 percent 
tobacco and cigarette tax would be 
lowered, the China Daily Business 
Weekly reported. The nation's 25 per- 
cent local consumption tax for liquor 
would be raised to conserve grain, while 
taxes would be introduced for nones- 
sential luxury goods such as name- 
brand cosmetics, mineral water, elec- 
tronic appliances and gourmet foods to 
help even out the country's distribution 
of income. ( Bloomberg . Reuters) 

■ Xerox to Expand Investment 

Xerox Corp. plans to raise investment 
in its four joint ventures in China by $50 
million a year over the next few years, 
Reuters reported, quoting the China 
Daily Business Weekly. 

The company would invest $10 mil- 
lion to $ 1 5 million this year to expand its 
business to total document management 
from the mainstay of photocopying, foe 
newspaper quoted Stephen Lai, vice 
president of Xerox’s China and Hong 
Kong operations, as saying. 

AT&T to Lower Long-Distance Rates 

By John M. Broder 

Npw York Tima Service 

WASHINGTON — Residential long- 
distance telephone rates in foe United 
States will fall significantly in the next 
several years under a plan negotiated by 
AT&T Corp. and foe Federal Commu- 
nications Commission, according to of- 
ficials and industry executives. 

AT&T, foe largest U.S. provider of 
long-distance service, said mat it would 
cut residential rates by $500 milliaa in 
die year beginning July 1. the first sub- 
stantial cut in long-distance charges in 
foe 1990s. That translates into reductions 

^ceni to 15 percent, the company saut 

S print Corp.- and MCI Communica- 
tions, the two other major long-distance 
carriers, are expected to follow suit but 
have not announced how large their 
reductions will be, FCC officials said. 

MCI is in partnership with British 
Telecomm uni cations PLC to provide 
long-distance service. BT acquired MCI 
last November for $23 billion and is 
working to transform a utility company 
into the world’s fourth -largest global 
c rnmnimic arinire entity, named Conceit. 

The U.S. rate reductions Me the last 
major piece of a complex compromise 
hammered out in the past several weeks 
in intense negotiations between telecom- 
munications lobbyists and Federal Com- 
munications Commission officials. 

The regulatory agency is to issue rules 
this week that will begin to change the 
econ omi c*; of the U.S. phone business. 

It will also establish a multibillion- 
dollar fund to connect schools, libraries 

and health-care centers to the Internet 

Reed Hundt, chairman of the com- 
mission. called foe pledge by AT&T to 
cut household long-distance charges ‘ ‘a 
huge breakthrough." 

"We have been in a firefigbt with 
AT&T behind closed doors, and now 
tiie smoke has cleared," Mr. Hundt said 
in an interview. 

He said that over the next five years, 
after the major carriers reduced their 
rates, 85 percent of U.S. households 
would see their telephone bills g6 down 
and rates for the other 15 percent would 
remain about where they are today. 

Consumer advocates cheered foe 
AT&T announcement saying ir meant 
that average households would see an 
immediate break on their phone bills. 

The rate reductions by AT&T will 
apply to households that do not sub- 
scribe to a discount package for long- 
distance usage, roughly half of AT&T s ' 
75 million customers. 

The cost of long-distance calls placed 
during foe day and evening will foil by 5 
percent, while late-night and weekend - 
charges will decline by 15 percent foe 
company said. 

Mr. Hundt estimated that long-dis- 
tance charges would fall by a total of 
$30 billion in five years, with $17 bil- 
lion of the benefit going to businesses 
and the rest to residential consumers. 

AT&T and the other long-distance 
companies will get a windfall as a result 
of the broader plan that foe commu- 
nications commission is preparing to 
issue this week. 

The fees that long-distance companies 
pay local phone exchanges for access to 

their customers — which are called ac- 
cess charges — would come down $1.7 
billion in the first year of foe FCC plan. 

in part because the companies hope to 
get much larger reductions in access 
charges in the future and in part because 
Mr. Hundt threatened to seek new reg- 
ulations on long-distance rates if the 
companies did not use at least part of 
their windfall to benefit consumers. 

Although several elements of the new 
regulatory plan are still in flux, reg- 
ulatory and industry officials indicated 
that foe commission was likely to take a 
number of steps: 

• It is expected to create a “universal 
service fund” of $3 billion to $4 billion 

SCTvice forpoor, disabled and rural cus- 
tomers, as well as for wiring schools, 
libraries and isolated health-care cen- 
ters. The money will come from higher 
charges for additional phone lines in 
bouses and businesses, as well as from 
new levies on wireless telephone and 
paging services. 

• It is likely to shift roughly $4 billion 
in long-distance access charges, which 
are now based on per-mioute rates, to 
flat monthly charges, which would ben- 
efit many heavy long-distance users and 
Internet surfers. The losers will be small 
businesses that do not make large num- 
bers of interstate calls. 

• It is expected to increase the cost of 
second residential phone lines by $1 a 
month, from $3.50, and raise the cost of 
multiple business lines by $1 to $2 a 
month, from $5.50. 

CURR1NCY RATES jg Ericsson Moving? 

May 2 

Cross Rates . a w 

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, jLk mi 0337 OJUf — 5*25 13B L55CT 14U 

ES* £! ^ tut So vnx 1MO m txn*an w wsmx* 

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**+ Uj* VJJ ajjm LOL0 ISU A 30* IKK HUH ISO* HUB 

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Other Dollar Values 

G reek drat 
Indian rapue 
Into, rupiah 
Irish £ 

Motay. ri*8- 

j^jrward Rates 

&2MCr 3M* 

PwhdsHrt® uiw J-gg 

Cm nfruiMnr UW 1J»5 ™ 
DaiMiHk 1.7164 

taaq Pcr$ 

AttMtaaS 1J7S3 
Austria set 12.111 
BrezflrM 1.0636 
OriBBcmni BJM5 
CBMhlWVpa 30.92 
-DMbhtawe 6£47S 
Egypt pawd 3JH2 
Rr- MbMu 5.1819 



Non*, krone 

PUL paw 


















12409 12557 12U0 

14607 1.4557 14506 

Top Offices Might Go Abroad, Chief Says 

Bloomberg News 

STOCKHOLM — LM Ericsson AB, Sweden’s largest 
company as measured by market value, is investigating the 
possibility of moving its headquarters abroad, the president of 
the telecommunications company, Lars Ramqvist, said over 
the weekend. 

While not saying where the company might relocate its 
headquarters, Mr. Ramqvist said in an interview broadcast 
Saturday on Swedish Radio that the possibility “should be 
seen in the light of that fact that only 3 percent of our business 
is in Sweden.” 

Another advantage of moving would be to get more fa- 
vorable tax rates for employees, he said. • I 

A Swedish employee with an annual income of $50,000 
now pays about 42 percent of that income in taxes to the state. 
One with income of $100,000, meanwhile, faces a 48 percent 
tax bill, while an earner making $200,000 would pay a tax of 

52 percent. . 

1 ‘Our owners are looking at how we will, in the long term, 
recruit new leaders,” Mr. Ramqvist said. “It is almost im- 
possible to get foreigners to move to Sweden because of tax 

reasons." | 

Ericsson said last month that its first-quarter pretax profit ! 
rose 30 percent, to 2.02 billion kronor ($258 3 million), 
compared with the like quarter in 1996, as sales of its mobile | 
phones increased in its biggest markets, including Europe, the j 
United States and China. 

- *ai&r v " ; 



Rome: 6-7 May 
Stockholm: 13-14 May 
Helsinki: 22-23 May 
Copenhagen: 26-27 May 
Paris Software Expos 4-5 June 
Madrid: 11-12 June 
Brussels: 18-19 June 
Hamburg: 30 June - 1 July 
Frankfurt: 7-8 July 

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The powerful new way of doing 
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using Internet to do it better. 
Come to the e-Business Forum. 
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Solutions fora small planet 

PAGE 16 



Despite Low Inflation, Many Still Expect a Cautious Fed to Raise Rates 

By Mitchell Martin 

International Herald Tribune 

NEW YORK — The financial markets 
saw some important thresholds crossed 
last week, yet many participants are po- 
sitioned for an increase in short-term 
interest rates this month, expecting cen- 
tral bankers to avoid what has been called 
“new-age" optimism and focus instead 
on their traditional battle with inflation. 

On Friday, the government reported 
that unemployment was 4.9 percent in 
America last month, down from 5.2 per- 
cent in March and the first time it had been 
below 5 percent since December 1973. 

Stili. the pace of job creation was 
slower than had been expected, and the 
news encouraged the markets, where the 
Dow Jones industrial average had just 
returned to the 7,000-point level for the 
first rime in more than six weeks and the 
yield on the benchmark 30-year Treas- 

ury bond fell below 7 percent after trad- 
ing above that level for a month. 

Late Friday, reports from Washington 
of a deal to balance the federal budget 
gave a final lift to the securities markets. 
By the end of die day, the 30-year Treas- 
ury bond's yield bad fallen to 6.88 per- 
cent from 7.14 percent a week earlier, 
and the Dow had a 4.9 percent gain for 
the week, its biggest rise in five years. 

The initial reaction to the jobless re- 
port was mixed, as investors looked at the 
low unemployment rate and figured it 
would help persuade members of tire 
Federal Open Market Committee to 
nudge interest rates upward at their May 
20 meeting. 

At their latest meeting March 25, die 
central bankers raised their target for the 
federal funds interbank overnight loan 
rate to 5 .5 percent from 5.25 percent, the 
first increase in more than two years. 

The increase was thought to be the 

first of several that could take the federal 
funds rate as high as 6 percent. Under 
Chairman Alan Greenspan, the Federal 
Reserve Board typically has made 
policy moves in a series of small steps. 

Yet despite some signs of inflationaiy 
pressures, such as price increases at the 
wholesale level, strong retail sales and the 
dwindling stock of unemployed workers, 
American companies are not raising 
prices on their goods and services. 

Economists are divided as to why this 
is so. One camp says it reflects one-time 
factors, including an enlargement of the 
labor force, and that eventually econom- 
ic growth must slow or prices will start to 
rise precipitously. Another group main- 
tains that the productivity of the econ- 
omy has been greatly underestimated by 
traditional measurements and that its in- 
creasing efficiency allows for new jobs 
without forcing prices sharply higher. 

The debate is important to the credit 

market If the “new-age" camp is cor- 
rect about productivity growth being far 
higher than measured, then 30-year 
bonds yielding close to 7 percent are a 
bargain. Yields will fall, and bond prices 
will rise, if inflation is not perceived to 
be a threat. 

But although productivity may well be 
somewhat higher than the figures show, 
many analysts still findit unlikely that the 
Fed will risk abandoning its cautious 
monetary policy. As Salomon Brothers 
Inc. said m a weekend report, “While 
markets seem to be flirting with ‘new- 
age' op timism, policymakers likely will 
be more cautious, reasoning that the cost 
of a mistake that opens the door to in- 
flation is Larger than one that provides for 
a pleasant disinfl ation surprise.” 

Mr. Greenspan does not deny that pro- 
ductivity is increasing more rapidly than 
measurements of it reflect accepting 
some of the ideas of the economists who 

credit the computer industry with spur- 
ring greater efficiency. 

“Certainly." Mr. Greenspan told the 
Senate Budget Committee in January, 
“the judgment that aggregate productiv- 
ity has been growing faster than indicated 
by the official statistics seems reasonable 
in light 'of the significant business re-, 
structurings and extraordinary improve- 
ments in technology in recent years.” 

Technological improvements are dif- 
ficult to measure. A new refrigerator, for 
example, may cost more than fie model it 
replaces, and this would show up as in- 
flation in the consumer price index. But 
the new one would be likely to use less 
electricity than its predecessor, so that by 
the end of the first year, the cost of owning 
and r unning it could be actually lower. 

Edward Yardeni, chief economist at 
Deutsche Morgan Grenfell, is one of the 
optimists who say the economy can 
grow without inflation at rates faster 

than the approximately 2.5 percent the 
Fed currently accepts. 

“One of fie new-era insights that has 
to be considered is computers,", he s^d, 
adding, “High-tech generally is an im- 
portant contributor to our economic 

Although . Mr. Yardeni says recent 
wage increases have been largely offset' 
by technological advances, he is among 
the many economists who say the central 
bankers will push the federal. funds rate 
to 6 percent this year, beginning with a 
rise to 5.75 percent May 20. • 

Higher rates increase the attractive- 
ness of the dollar to international in-* 
vestries, giving a lift to prices of se- 
curities including long-term bonds.- 
Meanwhile, the strong dollar exerts an 
anti-inflationary effect by forcing Amer- 
ican companies to keep their prices low 
or lose market share to competitors from 
countries with weaker currencies. 


Most Active International Bends 

The 250 most active international bonds traded 
tfirougfi the Eurodear system for the week end- 
ing May Z Prices supplied by Tetekurs. 

Rnk Name 


Maturity Price 


Australian Dollar 

205 Australia 


11/15X11 1230330 


Austrian Schilling 

227 Austria 


04/11/07 990500 


235 Austria 


06/20/05 107.9500 


British Pound 

168 Asda Group 


M/24'97 100.8750 


220 Fannie Woe 


06/07/02 980750 




11/26XM 910750 


231 Britain 


11X16/01 990688 


Canadian Dollar 

T64 Canada 

5 ft 

02/01/00 1003691 


Danish Krone 

3 Denmork 


03/15/06 1102800 


17 Denmark 


11/15/98 1 075600 


21 Denmark 


71/15X17 1020900 


26 Denmark 


11/15/01 111.20 


31 Denmark 


12/15/04 1045700 


36 Denmark 


11/15(00 T 13.1000 


37 Denmark 


05/15X13 1115900 


54 Denmark 


11/10(24 955600 


67 Denmark 


12/10/99 1035500 


86 Denmark 


11/15X12 1020000 


98 Denmark 


08/15/97 100.8200 


115 Denmark 


02/15/99 1010400 


133 Denmark 


02/15/00 99.0200 


136 NykredH 3 Cs 


10X11/26 880000 


183 Denmark Thills 


07X11/97 990200 


189 Real Kredlt 


10/01/26 88.2800 


191 Nykredff Bank 


1001/26 950300 


319 NykredH 


10/01/29 94.1500 


233 Denmark 


02/15/98 1020300 


Rnk Name 

89 Credit Local 
91 Germany 
94 Germany 
96 Germany 
100 Germany 

104 Germany 

105 Germany 
107 Treuhand 
112 Germany 
114 Treuhand 

118 Germany 

119 Germany 
121 Germany 
123 Germany 

127 Germany 

128 Germany 

138 Volkswagen 

139 Germany 
148 Germany 
154 Treuhand 
161 Germany 
163 Treuhand 

165 Germany 

166 WGZ Bank 
171 Germany TbIHs 

184 Germany 
196 Germany 
206 Germany 
224 Belgium Tblll 
228 Germany 
240 Germany 
244 Germany 
246 BA Credit Card 
248 Cap Credit Card 

Cpn Maturity Price Yield 




6 ft 

5ft 10/18/00 101.8119 
84* 07/20X10 113.6958 
01/13/00 107.7575 
09/1 S/TO 103.9864 
09/22/97 101.7560 

07/1 S/04 107.7000 

5ft 03/20*98 102.9100 
5ft 09/24/98 1028700 
5ft 02/22/99 1033677 
7 71/2599 1073600 
7ft 10/21/02 110.9382 
05/22/00 113L36T5 
02/25/98 101.5400 
12/02/98 105.0300 
07/21/97 10141400 
02/20/98 102,2800 
*85 02/28/01 99.4652 
8ft 08/21/00112.9600 
6ft 06/21/99 706.7600 
5 01/14/99 1023300 
7ft 01/20/30 1080300 

5 12/17/98 102J600 
5ft 10/20/98 1020860 

3499 04/25/02 99.8100 
zero 1CV1 7/97 . 986214 
5ft 03/12/07 972200 
6ft 05/20/98 103/1900 
6ft 01/2098 10X4690 
7ft 10/20/97 101.7800 

6 01/29/07 1004667 
6ft 11/20(98 104.1700 
zero 07/11/97 907899 
6ft 02/24/99 1050200 
6ft 01/2Q98 102.1500 
5ft 08*2097 TOO. 71 00 

6 11/15/Q5 1020033 
5ft 08*15/31 1011469 












Rnk Name 

Cpa Maturity Price 


Japanese Yen 

151 Woild Bank 

157 World Bank 

180 Spain 

4ft 03/2Q/02 114.1786 
4ft 12/2004 1173993 
3.10 09/20/06 1043000 




Norwegian Krona 

211 Norway Tbflls 

430 06/18(97 700.1730 


Portuguese Escudo 

213 ING Bank 

238 Invest e Serv 

01/30/98 953192 
10(29/99 100.6300 

Spanish Peseta 

129 Spain 
19B Spain 

10.70 02/28X11 1143240 
01/18/18 99.7915 
830 04/30061133390 



Swedish Krona 

92 Sweden 

102 Sweden 

159 Sweden 

167 Sweden 

187 Sweden 

203 Sweden 

11 01/21/99 1090800103300 
5ft 04/12/02 96.7260 50900 
6ft 1025/06 953200 63200 

B 08/15/07 1053960 73980 
10ft 05/05/03 717.9300 80900 

6 Q2X19X15 943540 63600 

U.S. Dollar 

U.S, Budget Accord: A ‘Drop in the Bucket 9 

By Carl Gewirtz 

International Herald Tribune 

PARIS — Asa market-moving event, 
the agreement between President Bill 
Clinton and the Republican leadership 
of Congress on a plan to balance the U.S. 
budget in five years is rated by analysts 
as at best a modest plus. 

“On balance, it's positive," John 
Lipsky at Chase Manhattan Bank in New 
York said. “But I doubt it will have 
much impact on markets." 

John Makm, an economist at the con- 
servative American Enterprise Institute, 
called the accord “not an earth-shat- 
tering event " and said, “It implies a very 
modest net reduction of about $15 billion 
a year in the supply of government se- 
curities — a drop in the bucket.’ ’ 

David Hale, an analyst at Zurich 

Kemper Investments, said the deal may 
give some temporary boost to tire mar- 
kets but that close examination would 
show die plan to be “foil of holes." 

What bothers them is that the proposed 
tax cuts are imm ediate, while the spend- 
ing reductions are to occur later — leav- 
ing room for plenty of slippage between 
intent and deed — and that congressional 
approval of the deal is not at all certain. 

George Magnus, a London-based ana- 
lyst for Union Bank of Switzerland, said 
fiat “whatever benefit markets mig ht 
draw from news of the agreement could 
easily be swamped" if fie Federal Re- 
serve Board raised U.S. interest rates at 
its May 20 policy-making meeting. 

Uncertainty about the Fed’s inten- 
tions. made more cloudy by economic 
statistics that do not uniformly point to 
fhe need for another increase, is the cur- 

rent major preoccupation of investors. 

“With the incoming economic data so 
ambiguous,' ’ Mr. Lipsky said, “it could 
prove to be somewhat awkward for the 
Fed to follow up on the promise to 
eliminate the fiscal deficit with a new. 
tightening of monetary policy." 

Mr. Lipsky said fie Fed’s decision 
would be greatly influenced by next 
week's reports on April industrial pro- 
duction, retail sales and wholesale and 
retail prices. “My guess now is that the 
Ted will not raise rates' May 20," he said. 

But Mr. Hale said. “There's no doubt* 
the Fed will hike rates.' * He said the Fed’s 
chairman, Alan Greenspan, had been 
“consistently wrong on the strength of 
the economy and lucky so for on in-, 
flanon," and that “when you're that 
wrong about the economy, you don’t take 
chances about the risk of inflation.'’ 

Dutch Guilder 

Deutsche Mark 

1 Germany 

2 Germany 

4 Germany 

5 Germany 

6 Germany 
9 Germany 

ID Germany 

11 Germany 

12 Germany 

13 Germany 

14 Germany 

15 Germany 

18 Treuhand 

19 Germany 

20 Germany 

23 Germany 

24 Treuhand 

27 Treuhand 

28 Germany 
30 Germany 
32 Treuhand 
38 Germany 
40 Germany 

42 Germany 

43 Treuhand 

44 Germany 

45 Germany 

46 Germany 

47 Germany 

48 Treuhand 

49 Treuhand 

50 Germany 

51 Germany 

52 Germany 

53 Treuhand 

55 Germany 

56 Germany 

57 Treuhand 

58 Treuhand 

59 Germany 
62 Treuhand 
65 Germany 

69 Germany 

70 Germany 

71 Treuhand 

73 Germany 

74 Germany 

75 Treuhand 

79 Germany 

80 Germany 

83 Treuhand 

84 Germany 

85 Germany 




1 <1/1 4/05 
6ft 07/01/99 
5ft 02/21/01 
6ft 07/09/03 
6ft 07/15/03 
8ft O5/2I/01 
61* 04/22/03 











































M 47272 
107711 T 






















































34 Netherlands 
60 Netherlands 
88 Netherlands SP 
90 Netherlands 
95 Netherlands 
IDl Netherlands 
103 Netherlands 
113 Netherlands 

116 Netherlands 

117 Netherlands 
125 Netherlands 
130 Netherlands 
137 Netherlands 
141 Netherlands 
145 Netherlands 
153 Netherlands 
IS Netherlands 
169 Netherlands 
177 Netherlands 
186 Netherlands 
188 N e th e rla n ds 
190 Netherlands 
192 Netherlands 
199 Netherlands 
207 Netherlands 
223 Netherlands 

6ft 07/15/98 
5ft 02/15/07 
zero 01/15/23 
7ft 06/15/99 
Bft 09/15/01 
7ft 04/15/10 
zero 06/30/97 
7ft 10/01/04 
5ft 09/1902 


































































82 France OAT 
109 France OAT 
111 France OAT 
124 France OAT 
131 Italy 

134 Britain 

135 France OAT 
T40 France OAT 
147 France OAT 
173 Britain 

193 France BTAN 
215 France OAT 
225 UKT-nofe 
230 France OAT 
234 France B.T.A.N. 










9ft 02/21/01 
5 03/16/99 
8ft 04/25/22 

5 01/26/9 9 
10 02/2901 

6 03/1901 



























Finnish Markka 

185 Finland 

7ft 04/18/06 107.0506 67700 

French Franc 

81 France OAT 6ft 1925/061050500 61400 
93 France BTAN 4ft 0912/99 1010600 40600 
143 France B.TAM. 5ft 1912X11 1030800 50200 
1 46 France B.TAJY. 4ft 1912/98 1017300 40500 
1 79 France OAT 5ft 04/2907 947500 50000 
201 Franoe OAT 7ft 04/2905 112.7800 66500 
241 France OAT 5ft 092904 101.1500 50400 
247 France OAT 6 1925(25 920800 60200 

7 Brazil Cap 5.L 

8 Argentina L 
16 Argentina FRN 
22 Argentina 

25 British Telecom 
29 Brazil L 
33 Venezuela 
35 Brazil parZl 
39 Mexico par B 
41 Mexico 
61 BadWuert L Rn 

63 Brazil 

64 Helaba Inti Fin 
66 Brazil S.L 

68 Venezuela A 
72 Italy 

76 Brazil S7I 

77 Argentina L 

78 MadooparA 
87 Bulgaria 

97 Ecuador 
99 Mexico 
108 Russia 
110 Bulgaria 
120 Argentina 
122 Brazil S-L 
126 Ecuador 
132 Bco Com Ext. 
142 Ecuador par 
144 Argentina 

149 Argentina 

150 Ecuador 
T52 Finland 
156 Brazil 

158 Venezuela B 
160 Mexico 
170 E1B 

172 MBL Inti Fin 
174 Abbey NattTS 
176 Poland 
178 Quebec 


194 Venezuela 

195 Mexico A 
197 Bulgaria 
200 3 M 

202 Brazil Cbond S.L 
204 Sweden 
208 Ontario 
210 Panama 
212 CADES 

216 Peru 

21 7 Mexico 
2T8 Mexico B 

221 Italy 

222 Bco Cent Brazil 
226 Brazil 
232Advanta CCMT 
236 Abbey Natl TS 
237 Tokyo Elec Pwr 
239 ING Bank 

242 China Resources 

243 Belgium Tbffl 
245 Ontario 
249Mydta Trust 
250 Argentina 

4ft 04/15/14 850441 57900 
5U 03/31/23 65.7019 7.9900 
6ft 092905 890581 70800 
lift 01/3917 1060311 100700 
6ft 092902 997738 60000 
6ft 04/15/06 89.4051 70900 
6ft 12/1907 880700 70300 
5ft 04/15/24 63.7500 87400 
6ft 12/31/19 720563 80000 
lift 05/15/26 1060995 100100 
7 04/3902 1000750 6.9393 
6ft 01X11X11 98.1188 60200 
6ft 0929/02 1000750 60493 
69 m 0915/12 79.9063 80800 
6ft 0931/20 720563 97900 
6ft 0927/23 910750 70800 
6ft 0915/24 800135 80900 
6ft 0931/23 827500 7.7000 
6ft 12/31/19 720563 80000 
6Vu 07/2911 62.1875 100500 
3ft 02/2915 61.1611 50100 
7ft 0906/01 1010135 70900 
5-976 04/29X32 99.7200 00000 
9ft 11/27/01 98.0000 90400 
6ft 07/2924 630563100100 
11 1909/061070750107400 
6ft 0915/09 85.0000 8.1600 
lift 04/25X12 1020750 10.9900 
7ft 02/02/04 920000 70800 
3 02/2925 43.7500 60571 
5.703 09/01/02114.1000 17860 
5.703 0901/01 128-6500 17860 
6ft 02/2925 65.9375 9.7600 
7ft 07/28XM 1050750.70700 
8ft 11/05/01 1010750 8.7500 
6ft 03/31/20 720875 97900 
lift 09/15/16 105.763910.7600 
6052 12/2919 870000 77600 
7ft 0923X17 101.7500 7.1300 

3 11/3902 101.0000 2.9700 
6ft 03/1902 970750 60100 

4 1927/14 810750 4.9200 
7 01/3907 977935 7.1900 
6ft 04/2900 990600 6.9100 
6ft 03/1907 870438 7-7300 

6067 12/31/19 880563 7.7500 
2U 07/2912 460000 40900 
6ft 093901 1007500 60100 
4ft 04/15/14 830906 50000 
6ft 0904/03 990000 60700 
7ft 09O4XI2 1037500 70700 
4 07/17/1 6 847500 4.7500 
5ft 12/1901 990900 50971 
4 03X17/17 60.0000 60700 
9ft 02/0901 1040750 90400 
6ft 12/31/19 880875 7.1 B82 
7 09/1801 101.0000 6.9300 
6Wu 1914/99 84.9428 80200 

6 09/T5/T3 730500 8.T600 
5.793 08/15(04 100.1714 57800 
6ft 0925XX) 1000750 67200 

7 02/1307 990737 7.0700 
6ft 03/21/00 99.1250 60100 
200 93904 990940 20100 
zero 093997 990906 5.6200 
7ft 01/27/03 102.1250 77200 
6 *h 09/1507 83.7874 70300 
8ft 12/2903 99.0000 80600 

The Week Ahead: World Economic Calendar, May 5-9 

4 setodute ot tflts week's ecorwtric and financial everts, comp&od for the International Hofnld Tribune by Bloomberg Bi&n&ss Nows. 

This Week 


Brisbane: The Australian Sugar 
Convention. Speakers include 
Prime Minister John Howard and 
Rob Borbidge/the Queensland 
state prime minister. 

Wellington: Chancellor Helmut 
Kohl of Germany visits Prime Min- 
ister Jim Bolger. 


Brussels: April federal government 
spending, budget deficit car sales 
and unemployment statistics are ex- 
pected this week. 


Mexico City: President Bill Clinton 
to meet with President Ernesto Zedil- 

Montreal: Asia-Pacific Economic 
Cooperation trade ministers attend 
symposium on customs procedures. 

May 5 

Melbourne: The Sydney Futures Ex- 
change Ltd. and the Australian Fi- 
nancial Review hold the 1997 Trad- 
ing Edge Expo. 

Sydney: Speech to Trans Tasman 
Business Circle by Dennis Eck, 
chief executive of Coles Myer Ltd. 

Bonn: Economics Ministry releases 
March industrial output data. 
Copenhagen: March unemploy- 
ment figures. 

Madrid: March industrial prices. 

Arlington, Texas: American Air- 
lines pilots union to release results 
of a membership vote on a four- 
year contract proposal. 

Buenos Aires: Cost of construction 
index and consumer-, whoiesale- 
and producer-price data for April. 

Tuesday Tokyo: Management and Coordlna- 
May 6 ' tion Agency releases data on house- 
hold spending for March. 
Wellington: Employment figures for 
first quarter. 

Bonn: Economics Ministry may re- 
lease March manufacturing orders. 
Nuremberg, Germany: Unemploy- 
ment figures for April. 

Paris: INSEE releases first-quarter 
business confidence survey. 

Mexico City: Central bank releases 
foreign-reserve levels. 

Washington: April durable-goods 
orders, first-quarter employment- 
cost index, consumer confidence in- 
dex for May. 

Wednesday Tokyo: Finance Ministry releases 

ncuiBU)! *„,j„ th* fi«r+ Ofl rigiie 

May 7 

trade balance for the first 20 days of 

Tokyo: Japan Electronic Industry 
Development Association releases 
data on 1996 personal-computer 
shipments. • 

London: The chancellor of the Ex- 
chequer and governor of the Bank 
of England hold their monthly mon- 
etary meeting. 

Paris: Bank of France monetary 
council meeting. 

Mexico City: U.S. -Mexico Chamber 
of Commerce holds meeting. Speak- 
ers to include U.S. Treasury Sec- 
retary Robert Rubin. 

Washington: Labor Department re- 
ports productivity and costs for the 
first quarter. 

_ • 

. ■ ■ 

■ ■ 

New invernanonai Dona issues 

Compiled by Laurence Desvilettes 






% Price 


end Tents 


Floating Rate Notes 




035 10030 


Owrfi-nuxith Libor. NanaAaMe. Fees 020%. Denominations ShUXtO. (CS First Boston.) 

Den norske Bank 

SI 10 



l 99.929 


interest will be 030 over 3-manth Libor unto 2001 when Issue Is artableqrpar, thereafter UJ5 - 
ovk Fees 000%. fCbase Manhattan Bank Inti} ■ - 

Federal Home Loan 
Mortgage Corp- 






Over 3-momti UUar. CaUahle at par from ISW. Fees OJ30%. (Nomura Inti) 







Bek"* 3-month Ubor. Noncollable. Fees 0.15%. (HSBC Capital Markets! 

Repackaged Sovereign 

SI 40 


libor 99ft 


Interest will be the 3-monlh Libor. NonartoWe. Fees 020%. Denominations 510000. (Barclays. 







0«r 3-monlh Ubor. CaHabfe at portion 2000. Fees not dtsdosetf. Denominations ShUOO. 
(Salomon Brothers InfU 







Over 6-month Ubor. NoncaHabie. Fewnof available. (Merrill Lynch IrttfJ 

TPE Inti Finance 






Over 6-montn Ubor. Callable at par In 2000. Fees not avoflobte. {Sumitomo Finance.) 

Bankers Trust 






Over 3-manth Ubor. Callable at par In zooa Fees 0.175%. (Lehman Brottwre Into 

European Investment Bank 






Beta* 3- month Ptaor. NancaHa&ie. Fees 0.15%. (Banque NaflanaJe de ParKJ 


Altos Homos de Mexico 






Semiannually. Reaffered at 99.939. Noncofloble. Fees not available. (MntV Lyndi inrU 

Altos Homos de Mexico 






Semiannually. Noncollable. Fees nor ova liable. (Merrill Lynch InfU 

Bank Handkiwy Finance 






NoncoDable. Fees 035%. Denominations S10000. U.P. Morgan SecvrNe&J 

Banque Li ba no- Franco Ise 






Semiannually. NancaflaMe. Fees 1%. Denominations 550000. (Barque indasuezj 

CS First Boston 





— - 

interest will be 7.90% until 2007. when Issue Is callable at par, thereafter 2 aver Treasurtev Fees 
0075%. Denominations S25O0OO. (CS First BastonJ 

First National Bank Chicago 






Reaffered at 9904. NancaOable. Fees 1 ft%. {Lehman Brothers Inti) 

Nontdeutsche LB 






Semtautuony. Nonconabte. Fees no» fflsdosed. Denominations S100000. (J J. Morgan 








NancaflaMe. Fees 005%. (SBC Warbutg.) 

IBM Inti Rad nee 






Reoffered at 99.405. Nancallabte. Fens 2%. (Deutsche Morgan GrertfdU 

Auto link Concessionaires 






Semiannually. Noncollable. Fees 0425%. (Morgan Stanley Inti) _ 

Bradford & Bingiey Building 






interest wn be B% until 2002. when issue b callable at par, thereafter 1.20 aver G«s. Fees 

D.40%. Denominations EIOXOOO. (HSBC MarfcefsJ ( 

Federal Home Loan 
Mortgage Corp. 






Semiannually. Noncollable private placement. Fees 0L2O%.(YamaldiI Inri.) 0 



El 50 




Noncaltable private ptaeentent. Fees 000%. (frikko EurapeJ 

BGB Finance 






Reoffered at 95057. NoncaBaMe. Fees 2%. [Cafcse das Depots etConsJgnolfansj 







Reoffered at 7908. NonadtaHe. Issue maybe redenominated In euros after EMU. Fees Kv% 
(Banque Paribas Capital Markets.) 

Bayertsdie Hypotheken und 
Wechsel Bank 






Noncollable. Fungible with outstanding Issue, raising total amount to <00 biffloo lire. Fees 1 ’ f.o. 
(IMi BankJ 

World Bank 

IT 1300,000 





NoncaBobte. Fees 1 (Banco CammerOole itoDanaj 







Reoflered at 100/15. Noncollable. issue may be redenominated In euros after EMU. Fees 

1.275%. (ING BartngsJ 








Reoffered at 99J4. NaneaRable. Fees 2% (Rabobank Inti) 







Reofterad at 99.90. NonatOatte. Issue may be redenominated In euros after EMU. Fees 1 00" j. 






Yield 13.99% Reoftened at 6'.5% NoncaBabie. Proceeds 168 mlHlon rand. Fees 000 % 

(Toronto- Dam Wan Bonk.) 


SA R4000 





Yield 13.72% Reoffered of 4J75. NoncaPatrie. Proceeds 192 million rand. Fees 0J75% 

(Toronto- Dominion Bank.) 

Deutsche Finance 





Yield 1200%. Noncollable. Fungible with outstanding Issue, raking total lace a mourn to 3 blTTton 
rand. Fees 025% (Deutsche Morgan Grenfeti.) 







Noncollable private ptocanenf. Fees not disclosed. (Yamafctil tori.) 







Redemprian at maturity may be In doflam. Noncollable private placement. Fees 0J5% 

(Kankaku EurapeJ 

European Bank tor 
Reconstruction & 






Redemption of maturity may be In dollars. Noncollable private placement. Fees 000% 

(KokuuH EurapeJ 

European Bank tor 
Reconstruction & 






Redemption ot maturity may be In Australian donors. Noncaflable private placement. Fees 

030%. (Morgan Stonfey InTIJ 

■ i 


Finnish Export Credit 






RMKMioiton amount at maturity wffl be In New Zealand donors. Noncollable private placement - ' 
Fees 1 (Morgan Stanley Inti InfU 

Finnish Export Credit 






SenHonnuatty. Redemption amount at mafuitty will be In New Zealand dollars. NoncoDable 
private placement. Fees l'.4% (Wako InrU 






SemNniM/any. Redemptlofi amounlot mafurtty wDl be in doflors. NonadiatNe private placement; 
Fees 1 ft% OB J Inn J 

Last Week's Markets 



! ;! 

: VT. 


Vi. • 


I -r 





Canberra: Reserve Bank of Aus- 
tralia governor, Ian Macfartane, ad- 
dresses a House committee on fi- 
nancial institutions and public ad- 

Tokyo: Seta Corp. initial public of- 
fering on over-the-counter market 

Rome: Retail sales tor January to 
be released. 

Mexico City: Finance Ministry re- 
leases March trade balance. 
Washington: Commerce Depart- 
ment reports on construction spend- 
ing for March, personal income and 
spending for April. 

May 9 

Tokyo: Economic Planning Agency 
releases monthly economic report 
after cabinet meeting. 

Wellington: Government releases- 
preliminary population figures. 

Budapest: April Inflation figures. 
Oslo: April consumer price index. 
Rome: February industrial orders 
and sales. 

Mexico City: Central bank releases 
inflation rate for April. 

Washington: Conference Board re- 
ports March leading indicators; Fed- 
eral Reserve Board releases weekly 
report on commercial and industrial 
loans at U.S- commercial banks. 

Urtffed States 
DJ Indus. 
dj um 
DJ Tram. 
Nikkei 225 
FTSE 100 
TSE Indus. 

UC 30 



Horn Kong 
Hong sang 

May 2 

Apr 25 










Money Rates 

United states 
Discount rate 
Prlffio rate 
Federal funds rate 

May 2 









1901475 1801206 + 405 

405560 4069.70 

609700 503600 
205501 203676 
306037 1374.10 
1X08170 12045.76 

+ 1.97 
♦ A69 
+ 206 
+ 145 

Can money 
3-month interbank 

Sank base rate 
Cart money 
3-month Interbank 


Cart money 
3-mamn totnrtjank 


C OB mon ey 
3-montfi Interbank 


London p.m.fluJi 



84775 82703 + 5UI 

050 050 

001 004 

003 0.68 

600 600 

4JW &00 



31 * 3 ** 



373 375 

May 2 Apl 25 % Ch'go 
33905 34275 - 0.76 

Eurobond Yields 

U.5. Mong term 
U0. L mdm term 
U 0 . i* short term 
Pounds sterling 
French fTOtics 
Italian lira 
DpniSh kroner 
Swedish Kronor 
ECUs, tong term 
ECUs, mdm term 



mwok LuMmOourg stock exchange. 


MOT? , 

Apl 11 Yr Met, 


























































Weekly Sales 

Primary Worker 


5 Hons s 
Straights 227.7 1105 17746 

SIT 1 ,■£? in-3 152 4 

TOM mSij 15.7190 422 U 

T°tal 100335 8527.1 30.5107 9.1790 

Secondary Market 

aSTlT ' EnroOMr 
. . 5 Nwb s NanS 

5J2S!? s21 flS ? 71/7720 2571 7 J 

Convert. 8310 257JJ 25837 1.4725 

FTP* iHS 3,4 ‘ 51m - 7 73725 

gCP 12027.9 11,971.1 30760.7 250415 
Total 540070 35578.7137,152.9 59.1 14.1 
Source Eumdear. Cedel Bank. J 

Libor Rates 

\-maalk J+mntfc « — rtt i 

U.S-* Sk. 5 >v* S*Vii French franc 

Deutsche mark 3 *b 3 ,- j ECU 

Pound Staffing 65 * 64, yen 

Sources: Umds Bank, Reuters 














Why Big Stocks Have Last Laugh 

1 jj \ By Floyd Norris 

^ .Vi*h' fat Times Service 

Sg*j J NEW YORK — A funny thing is 
W.? [happening to aggressive-growih mu- 

» '[tual funds. the ones that go for the 

'■biggest winners. Investors have 

•; shudder — taken money out of them. 
\ That is a case of money chasing — 
.fej ';br perhaps one should say fleeing — 
►’performance. Those funds vary 
'greatly, but most of them invest 
’■ •primarily in small stocks: and never in 
-t ^ ,-ihe lifetime of most investors have 
v>. i -‘small stocks underperformed big ones 
■ fit .os badly as they have over the past 
4U year. 

< For the 1 2 months through April, the 
/most widely followed indicator of 
/small stocks, the Russell 2000. was 
. virtually unchanged, with dividends 
| -reinvested. The Standard & Poor's 
idOO-stock index, the big-stock mea- 
“sure, meanwhile, was up 25.1 per- 
j [cent 

That is the biggest 12-month spread 
:■> * in the nearly 20 years the Russell index 

§>$ [has been around. According to Ted 
Aronson of the Philadelphia-based 
^jjftmoney-management firm Aronson & 
■Partners, earlier measures of small- 
k- ? ’ stock performance show that the onlv 

| -Comparable such periods came in 1 929 
i*2. land 1937. 

Last week, wc also learned that ag- 
gressive-growth funds had a net $156 
million taken out of them in April. That 
is not a Jot of money — such funds 
have S265 billion in assets — but most 
of the funds have been losing money 
for some lime now. and it is the first 
time since 1992 that such funds have 
seen a net withdrawal over a frill 

A year ago. the picture could not 
have been more different. In May 
1996. just as small-stock returns were 
peaking, investors poured a record 
S9.1 billion into aggressive-growth 
funds — just in limelo catch a year of 
relatively poor performance. Many 
fund investors tend to buy only after "a 
prolonged rise and hold off selling 
until a long period of poor perfor- 
mance. They don't cause plunges: they 
just suffer from them. 

Why have small stocks lugged 
lately'.’ To some extent, it is a reaction 
to the situation a year ago. when many 
small s rocks, particularly in technol- 
ogy. were greatly overvalued. Looking 
only at technology stocks, those in the 
Russell 2000 were down 14.4 percent 
for the year through April 30. while 
those in the $&P 500 were up 34.4 

There is also the well-publicized 
fascination with stock index funds. 

which have been outperforming al- 
must everything. Those funds primar- 
ily buy big stocks and have thus driven 
up prices of those slocks. Many fund 
managers, moreover, associate size 
with safety and liquidity. 

Consider two software stocks. Mi- 
crosoft Carp., an S&P 500 company, is 
up 46 percent so far in 1997 and has a 
market capitalization of $ 1 45 billion. It 
also sports a price/eamings ratio of 53. 
Zilog Inc., of the Russell 2000. is down 
24 percent this year and has a market 
capitalization of less than $400 mil- 
lion. Its P/E ratio is 1 8. 

If you need to raise cash quickly, it 
would be u lot easier to quickly sell S 1 0 
million of Microsoft stock than a sim- 
ilar quantity of Zilog shares, but that 
does not by itself make Microsoft a 
better long-term investment. 

If Lhere is value to be found in this 
market, it is almost certainly in the 
unloved smaller stocks. This is prob- 
ably not the time to buy and put away 
an SAP 500 index fund. 

All stocks, small or large, did fine 
last week, particularly when it starred 
to appear that a big tux cut was coming. 
Until the politicians announce an ef- 
fective date for a cut in the capital- 
gains tax. there will be an incentive to 
delay selling stocks in which an in- 
vestor has a profit. 

A Small-Stock Slump 

How much the Standard & Poor's 
500 has outpaced or trailed the 
Russell 2000, in 12-month returns. 

30 percentage points 


-30 — 

i . <oe * <nn OTv 

Dow Industrials 

^ gh 6.750 



F M T W T F 


It will be interesting to see how 
much selling develops once investors 
know they can sell at a low tax rate. 
Until then, anyone who buys a stock 
dial is already up a lot is taking the risk 
of buying just before a wave of sell 
orders arrives. 


. " New York Times Service 

lNEW YORK — Children like to 
spend money — whether on video 
gomes or Nikes. But more and more of 
ujpm seem to be learning about saving 
am investing for the future from their 
pttents and guardians. 

£Stein Roe & Famham Inc., a mutual 
ftuid company in Chicago, recently 
sponsored a children's essay contest to 
encourage such practices. The question 
wits: What are the most important things 
yqu have learned about money and in- 
vesting, and how will this knowledge 
help you in the future? 

i Among the more than 1 .200 entrants, 
jgjbm children in their sixth through 
eighth year of elementary school, sev- 
e^l themes emerged. A common sen- 
timent was that banks are a place where 
your money grows very slowly. For all 
flfe bankers pur there trying to sell mu- 
tual funds and other investment 
products, those responses suggest a 
prickly image problem. 

[•Many children described saving as 
the first step on their way to financial 
competency. Some had innovative ap- 
proaches worked out with their parents: 

others talked about specific formulas, 
like saving 10 percent of everything 
earned, whether pet sitting or doing 
household chores. A few said they set 
aside a whopping half or two-thirds of 
what they were paid or received as gifts 
to help build a college fund. 

Then there were a few other widely 
held beliefs that have sent investors of 
all ages down ill-chosen paths: stocks 
always go up; you can sell houses for 
more than you bought them for and 
make a profit; you will do well buying a 
stock if you like the company's 

Here are excerpts from several of the 

“When I was 6, my grandfather 
began to teach me about the stock mar- 
ket. He told me I needed to learn how to 
invest intelligently although at the time. 
I’m not sure I knew what that meant. He 
taught me how to read The Wall Street 
Journal and how to follow stocks on the 
New York Stock Exchange and on the 
Nasdaq. . 

* ‘When my grandfather thought I was 
beginning to get a handle on investing. 

he gave me $150 fo invest in a stock of 
my choice. Foolishly. I disregarded 
everything he taught me. and I invested 
with my heart. I chose a stock of a minor 
league baseball park in my state that was 
listed on the Nasdaq. 

“I was sure this was a sound in- 
vestment. but from the day I bought it, it 
has continued to lose money. And lost 
month, there was a I -for- 10 reverse 
split! Today, my 48 shares are four 
shares and my investment is worth $1. 
What a lesson that was!” 

A New Jersey seventh-grader 

“Before you invest money you have 
to make it The way I do this is by using 
coupons at the grocery store. Every 
week I cut out the coupons of products 
we use. My mother makes a list of the 
items we are going to buy. Then my 
fazher and I go to the store with the 
coupons and the list When we pay for 
the groceries, I hand the coupons to the 
cashier, and he or she scans them. The 
savings show up on the receipt. 

“When we get home, my father adds 
up the savings, and I write the amount 
saved in a notebook. I save approx- 

imately $10 per week (that is over $500 
per year). 1 put half of this savings in 
mutual funds, and I am able to spend the 
other half." 

A Wisconsin fifth-grader 

"My grandparents have been a good 
example to me. They have an invest- 
ment fund for each of their grandchil- 
dren. Instead of buying me an expensive 
'wonder world* for my birthday, they 
put money in my account Then they 
buy me something smaller for my birth- 
day, but I know that my future is grow- 
ing bigger every year. I think they are 
very wise and love me enough to plan 

A Georgia fifth-grader 

“1 am 10 years old. I started investing 
when I was 9. 1 want to buy a car when 
I’m 16. 

"Just like me, my money grows over 
a long period of rime. 

“My father is a stock person. He 
always tells me how well my stocks are 
doing compared to his. Mine are doing 

A Washington state fifth-grader 

RAGE 19 

Disputes With Brokers 
To Become More Costly 

7,050 ! 

Children Follow Elders Into the World of Investing 

By Marcia Vickers 

.Vrw »«>fx 7 jiw» Srivni* 

NEW YORK — For investors, the cost 
of complaining seems about to go up. 

The National Association of Secu- 
rities Dealers is expected to file a rule 
proposal in the next two weeks request- 
ing that arbitration fees be increased for 
both investors and brokerage firms. 

Under the proposed sliding scale for 
fees, the cost of filing an arbitration 
claim would increase by between 25 
percent and 100 percent for investors 
with claims ranging from $10,000 to S5 
million. For example, an investor with a 
SI 00,000 claim who now pays a S200 
filing fee would pay $300. 

Tiie maximum filing charge for in- 
vestors would be $850. Deposit fees for 
hearings — which often are refunded to 
im esiors — also would rise. On claims 
for $50,000 to $100,000. that fee would 
rise 50 percent, from $500 to S750. 

“We're doing this because our ex- 
penses greatly exceed our revenues for 
processing arbitration claims." said 
Linda Fienberg. executive vice pres- 
ident of dispute resolution at the 
NASD’s regulatoiy arm. 

Last year, the association incurred a 
net loss' of about S10 million in its dis- 
pute-resolution program, according to an 
internal document obtained by The New 
York Times. Ms. Fienberg said that even 
with fee increases, the group's arbitration 
expenses would exceed its revenue. 

Brokerage firms would see substantially 
larger increases m fees than investors 
would, according to Ms. Fienberg. . 

The companies, she said, also pay an 
additional fee that investors do not. 

For example, on a SI 00,000 claim 
filed by an investor, a brokerage firm 
now pays a filing fee of $500; this would 
rise to $1 .000. The firm also would pay 
a surcharge, which is scheduled to rise 
to $ 1 ,500 under the proposal from $350 

When opening a brokerage account, 
and often a mutual-fund account, in- 
vestors sign a statement agreeing to take 
any dispute to arbitration rather than to 

Member firms cover 75 percent of the 
costs associated with the group's arbit- 
ration forum, and investors pay die re- 
maining 25 percent, Ms. Fienberg said. 

The additional revenue the NASD 
hopes to raise under its proposal would 
help offset the general rise in the cost of 
arbitration . industry specialists say. 

Two years ago, the group had a back- 
log of cases, but the backlog has dis- 
appeared in the past year, Ms. Fienberg 

A year ago, the NASD began an 
overhaul of its arbitration program, 
planning technology upgrades and 
training for arbitrators. These changes 
are intended to lead to speedier ap- 
pointments of arbitrators, faster pro- 
ceedings and more diversity and more 
sophistication among arbitrators. 

TOWER: Tall Order for Antenna-Builders 

Continued from Page 15 

1950s or '60s. Some were placed right 
next to the stations; others were put up in 
corn fields or pastures on the edge of 

In the years since, insurance compa- 
nies have begun to require television 
stations building towers to use tracts of 
land large enough so that the tower can 
fall in any direction without hitring any- 
thing — meaning that in some cases a 
circular plot with a diameter of 4,000 
feet is needed. Towers do. in fact, fall on 
occasion. Seven of them collapsed dur- 
ing a storm in Minnesota and North 
Dakota last month. No one was injured. 

The new insurance requirement 
makes it unlikely that many stations will 
be able to buiJd lowers next to their 
offices, and sites outside town have their 
own problems. Since the 1950s, the 
suburbs have grown up around the 
towers — and beyond. 

In Denver, for example, where one or 
more new towers for digital antennas 
will be needed. ‘ 'all the broadcasters put 

their towers up on a mountain outside 
town 35 years ago," said Robert Ross, 
the CBS vice president who is running 
the network's tower-building program. 

“Back then it was just pine trees and 
dirt roads with lots of switchbacks. But 
now there are a lot of million-doilar 
homes out there." 

As a result, the area's zoning has 
changed, “and we can barely touch the 
existing towers without lawyers and 
variance hearings." Mr. Ross said. 

“I don't know how we're going to get 
a new one up,’’ he said. 

Once a station does find a large plot of 
land for a tower, the next set of chal- 
lenges will begin: winning permission 
to build it. Nobody, it seems, wants a 
tower in their backyard. 

David Broizman, administrator of the 
National Association of Tower Erect- 
ors. said a recent project in Blooming 
Prairie. Minnesota, had to be relocated 
at the last minute when environment- 
alists complained that it was going up in 
the migratory flight path of a certain 
breed of duck. 


I 8 t h 
Oil & Money 
conference will be 
held on November 18-19 
in London. This major inter- 
national energy forum will be 
addressed by oil ministers from the 
world’s largest producing nations as well as 
senior oil industry executives. For further details, 
please contact Brenda Erdmann Hagerty in 
London on Tel. (44 171) 420 0307 


Fax: (44 1 7 1) 836 0717 

f The Oil Daily Company 







PAGE 20 



Thai Telecom Sell-Off Dollar, ‘Boxed In,’ Awaits Fed Waterford F(KMis RejecK Tak««r 

Seen as Overwrought 

By Carl Gewirtz 

International Herald Tribune 


BANGKOK — New mobile 
phone operators hoping to crack the 
Thai market will face an uphill 
struggle against companies that 
already have national coverage and 
large customer bases, some analysts 
said Sunday. 

The deputy transportation and 
communications minister, Direk 
Charoenpol, said last week that his 
ministiy would seek cabinet approv- 
al for new operators to enter the 

He said the government planned 
to grant four or five new licenses to 
private companies. 

The announcement sparked a sell- 
off in telecommunications shares, 
especially of mobile phone oper- 
ators, as investors anticipated lower 
earnings by existing operators. 

But analysts said the worries were 
exaggerated . noting that it would take 
at least two years for new entrants to 
build nationwide networks. 

“It’s very difficult for those new 

guys to break into the market." said 
Michael Millar, research manager at 
SocGen-Crosby Securities. 

“The market is very coverage 
conscious." he said. “'So new guys 
have to come in from day one with 
similar or better coverage." 

Two private companies — Ad- 
vanced info Services PLC and Total 
Access Communication PLC — 
now control the mobile phone busi- 
ness in Thailand. A third company. 
Wireless Communications Service, 
a joint venture of International En- 
gineering PLC and Total Access, is 
expected to start service this year. 

Analysts said another factor 
would be the sluggish economy. The 
government has said it expects the 
economy to grow at 6.8 percent this 
year, but some private analysts see 
growth sinking below 6 percent. 

“The Thai economy is going to 
slow down and that may affect the 
number of new subscribers." said 
Paul Ngo. an investment analyst at 
ING Barings. 

PARIS— Japan’s return to work 
Tuesday after a weeklong spring 
vacation may add some zest to the 
foreign-exchange market, but ana- 
lysts warn not to count on it. 

The dollar ended last week at 
126.595 yen and 1.7295 Deutsche 
marks, virtually unchanged from 
the previous week, as a commu- 
nique from the Group of Seven's 
top finance officials and central 
bankers was universally derided as 
saying nothing new. 

U.S. Treasury Secretary Robert 
Rubin reiterated his support for the 
G-7 statement on the dollar, saying 
Sunday that a “strong" U.S. cur- 
rency had led to lower inflation. 

“What we don’t want to have is 
have currencies get out of synch 
with fundamentals." Mr. Rubin 

But Jim O'Neill of Goldman. 
Sachs & Co. described the dollar 
as “boxed in." On the one hand, 
he said, there is “considerable 
anxiety that the Bank of Japan will 
intervene to prevent further weak- 

ness of the yen," while on the 
other, “everyone is on tenterhooks 
about whether the Federal Reserve 
will increase U.S. interest rates." 

The Federal Reserve Board’s 
policymakers will meet May 20, 
and analysis are hedging their 
earlier bets on a rate increase in 
view of last week's data showing 
no significant upward pressure on 
U.S. prices. 

4 ‘There is a chance, but hardly a 
certainty, that the Fed will follow 
its quarter-point increase in March 
with another one this month.' ’ said 
John Llewellyn of Lehman Broth- 
ers. But he said there were sound 
reasons for the Fed to hold back. 

Citing a surge in exports to ex- 
plain the sharp growth in the final 
quarter last year and good weather 
in many areas in the first quarter of 
this year. Mr. Llewellyn argued 
that “economies grow above po- 
tential rales for extended periods 
only when there is a strong force 
pushing iL' ’ The possible forces, he 
said, include an expansionary 
budget deficit an aggressively easy 
monetary policy or strong export 
growth, “none of which currently 

ipply in the United States." 

Mr. Llewellyn does not rule out 

the possibility that runaway spend- 
ing by companies and consumers 
could give new life to the U.S. 
boom, but he doubts it. 1 This U.S. 
business cycle is different," he 
said, citing increased world com- 
petition that prevents companies 
from raising prices, frightened 
workers who are more interested 
in job security than wage increases 
and "vastly better” monetary and 
fiscal policies that are keeping the 
economy in control. 

In no small part because of the 
rise in the dollar, which is up 14 
percent against the mark and 
nearly 1 2 percent against the yen in 
the past six months. Mr. Llewellyn 
said, “U.S. growth is set to slow 
throughout the rest of the year." 

Mr. O’Neill said be expected the 
dollar to trade cautiously until the 
Fed meeting. If interest rates are 
not increased, he expects the dollar 

DUBLIN (Bloomberg) — The boards of WaterfonJ Foods 
PLC and Waterford Co-operative Society Ltd. on Sunday 
rejected a takeover bid from Avonmore Foods _PLC that 
valued the company at £281 million ($419.7 million). 

Waterford Co-operative, which owns 68 percent of the 
shares in the dairy company, said the bid did not “reflect the 
underlying value of the Waterford business. 

>***<# .- 

Microsoft Plans Training Drive 

ORLANDO, Florida (Bloomberg) — Microsoft Corp. has 
announced a plan to recruit and traiu computer workers, saying 
190,000 U.S. jobs are vacant for a lack of trained applicants. 

Microsoft said Saturday that it would spend several million 
dollars providing training to colleges, technical institutes and 
working professionals. The company's Skills 2000 program is 
designed to address U.S. Department of Labor estimates that 
80 percent of die new jobs created over die next 10 years will 
involve new and expanding technologies. 


,-=r ■ « 

Kuwaiti Slams Privatization Policy 

to drop below 1.70 DM aad to the 
low \ 20s against the yen. But if the 

low 1 20s against the yen. But if the 
Fed does raise rates this month, 
Mr. O'Neill sees die dollar pushing 
beyond 1.77 DM and 129 yen.' 

NO DEAL: In a Blow to Mediobanca, a Merger to Create an Italian Fashion Powerhouse Collapses 

KUWAIT (Reuters) — The speaker of Kuwait's Parliament 
warned thatgovemment privatization policies could cause an 
economic, catastrophe and a security problem, newspapers 
reported Sunday- 

The newspaper As Seyassa quoted Ahmad al Saadoun as 
saying ih»r the program was “pushing toward concentrating 
the whole state in the hands of a small group of people." 

The state has sold stakes in 22 listed and unlisted firms for 
740 million dinars ($2.43 billion) since the program was 
started in September 1994. Shares worth an additional 1 
billion dinars are to be sold by the end of 1998. ^ 

•: x* 

i r* ‘ - 

tv *m 

Continued from Page 1 

Sunday that the weekend de- 
velopment would probably 
have implications that tran- 
scended the terms of the col- 
lapsed deal itself. 

"The significance of this 
debacle." said Francesco 
Micheli, a prominent finan- 
cier. “is more important than 
the episode itself because it 
could mean that new protag- 
onists. including foreign in- 
vestment banks, will now be 
able to play a greater role on 
the Italian business scene." 

The Marzotto group said it 
had pulled out because of “ir- 
reconcilable differences" 
over corporate strategy. But 
the move was seen in Italy on 
Sunday as an embarrassment 
for Enrico Cuccia, 93, the head 
of Mediobanca. It was also 
seen as a setback for Cesare 
Rom id, the recently convicted 
Rat chairman who had sup- 
ported the merger, and whose 
son Maurizio Romiti was set 
to be named as managing di- 
rector of the new entity. 

Since 1946, Mr. Cuccia has 
been able to shape much of 
Italy's private sector, spin- 
ning a spider's web of in- 
dustrial and financial share- 
holdings that became known 

as the tihi nobile, or noble 
wing, of Italian capitalism. 

An emerging generation of 
Italian investors and man- 
agers. however, is calling for 
more market democracy and 
is increasingly vocal in its cri- 
ticisms of Mediobanca's be- 
hind-the-scenes methods. 

So important to Mr. Cuccia 
and to Mr. Romiti. 73. was the 
planned pooling of Marzotto 
with other Fiat and Me- 
diobanca assets that Giovanni 
Agnelli, the honorary pres- 
ident of Fiat, in March ex- 
plicitly endorsed the accord 
as “an excellent deal." 

Mr. Cuccia, meanwhile, 
last week broke his tradition 
of acting in silence when he 
spearheaded a public letter- 
writing campaign to express 
solidarity with" Mr. Romiti. 
who was convicted last month 
on charges of tax fraud, falsi- 
fying Fiat accounts and sanc- 
tioning a slush fund for illicit 
payments to political parties. 

Italian business insiders 
said Sunday that against this 
backdrop, much was riding 
on the success of the merger. 

A previous attempt by Rat 
and Mediobanca to create a 
conglomerate with similar as- 
sets"was stopped in late 1995 
amid complaints from minor- 

ity shareholders and objec- 
tions from regulators. 

"This was merely another 
power play by Cuccia and Ro- 
miti, and the fact that it has 
collapsed could mark a turn- 
ing point for Italian capital- 
ism." said a leading Milan 
business executive who asked 
not to be named. 

An executive with a fash- 
ion company involved in the 
failed merger, who asked not 
to be identified, said it had 
always been obvious that the 
deal was a financial maneuver 
and not a fashion one. 

“It didn’t make any sense, 
and everyone was skeptical.' ’ 
he said. “And the rejection is 
not going to affect the fashion 
business. What would have 
been a disaster is if they had 
dislodged Pietro Marzotto. 
He is a great manager and 
understands fashion. It is 
more than just financial 
games to him." 

Mediobanca executives 
could not be reached for com- 
ment. but in a joint press re- 
lease with the Marzotto 
group, the board of the Fiat- 
Mediobanca affiliate that was 
to have been part of the mer- 
ger expressed “regret." 

The board of Marzotto. 
meanwhile, said that the ir- 

reconcilable differences that 
had caused it to call off the 
deal involved “principles of 
organization, the sharing of 
responsibilities and proce- 
dures for directing and con- 
trolling the group of compa- 
nies." The Marzotto board 
also said it had differed with 
its potential partner over 
“group financial policy, 
goals, and in particular the use 
of risk capital and lending." 

An executive close to the 
deal said Marzotto family 
members were fearful that Mr. 
Marzotto would end up sur- 
rendering real decision-mak- 
ing power to Maurizio Ro- 
miti, who until recently served 
as a close aide to Mr. Cuccia. 

Id addition. Mr. Marzotto's 
strategy was to use cash to 
make acquisitions in the tex- 
tile sector and focus on a 
Europewide industrial 
strategy, while family mem- 
bers were said to fear that 
Mediobanca would have used 
the new entity as a vehicle to 
invest in other industries and 
to engage in financial rather 
than industrial operations. 

Some players in the Italian 
fashion world had hoped the 
merger would create a power- 
ful global force. 

“It is a big surprise and a 

liiitcb for \czs7vcck Inicnintioiiuh SdccuiI Issue. 


The City of Survivors 


* * 

This summer, die world will focus on one of the globe’s most 
remarkable places. Much of the comment on Hong Kong’s 
return to China will dwell on the risks and dangers involved. 
They are real. But Newsweek^ editors will 
concentrate on the soul of Hong Kong, from 
which flows its most enduring characteristic: 
whatever the changes, whatever the shocks - 
the city survives. 

ir r 

Why Hong Kong is the international issue of 1 997. 

• The Least likely place 

A vivid history, with maps and historical photographs, of 
150 years in Hong Kong- and how it has beaten the odds 
rime after time. 

• Families 

A look at some of the people who have shaped 
Hong Kongs past, present - and its future: The 
British, the Shanghainese, the New Hong Kongers. 

• the Next hong Kong 
In interviews with the best and the brightest of Hong Kong’s 
new leaders and industrialists, we sketch how the city 
continue to be what it is now - one of the handful of places 
on earth where men and women can feel most thrillingly alive. 

An electronic version of “Hong Kong: The City of Survivors 71 
will be featured in late Spring as part of the NWi Business 
Resource Center Website. 

great pity," said Giancarlo 
Giammetti. a business partner 
of Valentino, which is man- 
ufactured by GFT. 

“We had hoped that this 
would be an all-Itaiian con- 
glomerate of luxury to com- 
pete on the international mar- 
ket like LVMH," Mr. 
Giammetti said in Paris on 
Sunday, referring to the lux- 
ury-goods company LVMH- 

Moet Hennessy Louis V tat- 
too. “Today in the global 
market, financial operations 
are almost more important 
than the fashion element," he 
said. “You have to be tough 
enough and have the means 
enough to compete. We were 
all hoping that die new Italian 
luxury group would have 
been at that level, and it is a 
great disappointment.' ’ 

Goodyear Gets Deal With Union 

CHICAGO (Reuters) — Goodyear Tire & Rubber Co. and 
the United Steelworkers of America have agreed to a new, six- 
year labor contract that, if ratified, would end a strike begun 
April 20 by. nearly 13.000 U.S. rubber workers. 

Details of the agreement, reached Saturday, were not an- 
nounced, but the union, which represents the rubber workers, 
said h met their objectives. "The proposed agreement provides 
improvements in wages and benefits and addresses the em- 
ployment involvement issues, among others, that we had iden- 
tified as important" said Dick Davis, 3 union spokesman. 

JAPAN: Tokyo Confronts the Price of Redistributing Its Wealth 

Continued from Page 1 

rebuild itself as a land where 
everyone was equal. The gov- 
ernment established an ag- 
gressive system of taxing the 
wealthy and subsidizing the 
poor, hoping to eliminate the 
highs and lows and create a 
society where everyone was 
comfortably in the middle. 

That vision largely has 
come true. Only 2 percent of 
Japanese households have in- 
comes of less than $16,000 a 
year, and only 2 percent have 
annual incomes topping 
$160,000. The vast majority 
are in the middle: Just over 
half of Japanese households 
earn between $35,000 and 
$75,000 a year. 

| . Japan's average per-capita 
income last year was 

| $31 ,886. The richest place in 
the country was Tokyo, 
where the average per-capita 
income was $35,200, and one 
of the poorest was Sata with 
an average per-capita income 
of $19,240 — a relatively 
modest span between wealthy 
and needy. 

“Modern Japan is almost 
neurotic in pursuing econom- 
ic equality and has achieved it 
to a degree not achieved any- 
where else," wrote Taichi 

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Sakai ya, a prominent author 
and commentator on Japa- 
nese society, in his book 
“What Is Japan?" 

The effect of Japan’s re- 
latively narrow income gap 
can be seen here in ways large 
and s mall. Only 1 percent of 
the population is on welfare. 
Public schools in every part of 
the country look alike, be- 
cause the government guar- 
antees parity right down to the 
books in the library. Japan has 
a 99.9 percent literacy rate. 

Corporate titans have re- 
latively modest incomes — 
the average chief executive 
earns about $300,000 a year 
— resulting from a purpose- 
ful effort to prevent a gigantic 
divide between entry-level 
workers and the company 

The parity is obvious in al- 
most any neighborhood in 
Tokyo. There are no equival- 
ents here of exclusive 
Beverly Hills or desperate 
Bronx slums: things are more 
mixed. One branch of Japan’s 
richest family, the Tsutsurais, 
lives in a fabulous walled 
compound in die Hiroo 
neighborhood of Tokyo. A 
few doors down, a working- 
class family sells cucumbers, 
tomatoes and milk from the 
door of their one-room 
house. . 

“Japan is more of a semi- 
socialist society than a cap- 
italist country," the econom- 
ic analyst kimindo Kusaka 

But the question now fa- 
cing Japan is: Can it. and 
should it, continue paying the 
price to maintain the equality 
it has built in the last 50 

Already, economists 

say, the gap between rich and 
poor has widened slightly in 
recent years. Many argue that 
if it is to jump-start its stag- 

nating economy and remain 
competitive, Japan will have 
to adopt reforms that will cre- 
ate an income gap more like 
that of other rich trading na- 

“The smallness of the gap 
is a good thing ," said Iwao 
Matsuda. a: lawmaker in the 
opposition New Frontier 
Party, “but it is being main- 
tained at big expense."' 

He and many other critics 
argue that Japan, to stay com- 
petitive in the world, must 
scale back its massive central 
government, deregulate its 
economy and loosen the gov- 
ernment's grip on life in gen- 
eral to allow market forces to 
work more freely. 

The government cannot 
continue to subsidize the poor 
through a 50 percent income 
tax on wealthy citizens or a 
37.5 percent corporate in- 
come tax, Mr. Matsuda said. 
He and other critics say the 70 
percent tax rate on inherited 
wealth also must go because it 
represents outdated and ex- 
cessive government interfer- 
ence. That tax raises a bundle 
for the government, but it also 
forces families to sell their 
homes when their parents 
die. i 

Many economists think Ja- 
pan uses pork-barrel projects 
as a- crotch. Die massive 
amounts of money the gov- 
ernment spends on public 
works and construction keep 
many people working. But 
many observers say that 
money would be better spent 
on new industries, factories or 
other investments that would 
generate income and far 
greater numbers of jobs. 

Already, there are signs of 
cracks in die system of wealth 
distribution. Japan is rapidly 
becoming the world's oldest 
society, and those elderly 

people need expensive med- 
ical care that is putting a huge 
strain on the national health 
insurance system. 

The government is grap- 
pling with huge debts built up 
by banks during the 
“bubble" economy days of 
the early 1990s, and for the 
first time it is allowing banks 4 
and credit unions to rail. Tbe r 
national railroad is billions of 
dollars in debt. 

A small but increasingly 
visible number of homeless 
people Uve in cardboard 
boxes on the streets, in sub- 
way stations and some neigh- 
borhood parks. Beggars and 
bankruptcies, until recently 
viewed here as an American 
problem, are becoming more 

Taken together, such prob- 
lems mean Japan has less 
money for education grants, 
agricultural subsidies, public 
works projects and other pro- 
grams designed to even out 
the distribution of wealth be- 
tween cities and rural areas. 

Just as important, the na- 
tional political landscape has 
changed. For almost 40 years, 
the Liberal Democratic Party 
held single-party rule. That 
enabled it to collect tax rev- 
enues from wealthy urban 
areas and distribute them to 
the poorer rural areas. In re- 
turn. vote-rich agricultural Ja- 
pan showed its gratitude with 
decades of support for the 
party's politicians. 

But the equation has, 
changed: The Liberal DemoJJj 
cratic Party is still in control, 
but it must share power with 
several smaller parties, and 
the buzzword in Tokyo these 
days is reform: smaller gov- 
ernment. less regulation, a 
more nimble economy where 
market forces are allowed to 

Ln 1997, the IHT will publish a series of Sponsored Sections in the Asia edition on: 

Fast Track ’97: 
Asia Business Outlook 

For the past two years, the "Fast Track “ series has been taking the pulse of the Asia-Pacific 
region and winning acclaim from readers and advertisers who feel its one of the best of the 
International Herald Tribune’s special section projects in Asia. 

EaLch section in 1997 will include a variety of articles on one central themp; 

■ MAY: The Asian Brand - How well-known are Asian countries and businesses and what 
value does name-recognition bring? 

■ SEPTEMBER: The Public Sector - Privatization is not a panacea for ail countries and all 
industries. A look at the most dynamic public-sector initiatives and at how they can 
successfully complement those of the private sector. 

■ NOVEMBER: Diversify or Divest? -To maximize grcjwth, should Asian businesses focus 
on their core businesses or branch out? A look at recent mergers, alliances, joint ventures, 
reorganizations and spin-offs. 

For more information about advertising in any of these sections, please contact; 
Andrew Thomas, FHT Singapore. Tel (65) 223 64 78, Fax: (65) 325 08 42 
or e-mail: supplements(a' 



• L • * V 





PAGE 21 

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PAGE 22 


Parma Triumphs, 2-1, 
Keeping Title in Sight 

Juventm Lead at Top of Italian League 
Shrinks After 0-0 Tie With Sampdoria 

Ctmqthrdfo Our SuffFntn Dttpatches 

Enrico Chiesa returned from an in- 
jury and scored as AC Parma rallied to 
beat Atalanta of Bergamo, 2-1, 
Sunday to keep alive its hope of catch- 
ing Juventus of Turin at the top of the 
Italian league. 

Juventus settled for a 0-0 home tie 
with Sampdoria of Genoa and its lead 
shrank from six to four points with 

European Soccer 

five rounds of games to go. Juventus 
and Parma meet in Turin on May 1 8. 

At Bergamo, Atalanta took the lead 
with a controversial goal by Gianluigi 
Lentini. The linesman had waved his 
flag to indicate that Filippo Ihzaghi 
was offside, but the referee allowed 
the goal, provoking a protest by 
Parma players. 

Heman Crespo equalized with a 
header in the fifth minute of first-half 
injury time, and Chiesa — who had 
been sidelined for more than a month 
with a hurt leg — won the match by 
slotting home a shot from an acute 

angle in the 66 th minute. 

»’s victory also increased its 
lead over third-place Intemazionale 
of Milan which lost, 1-0, to Vicenza 
on Saturday night. Sec-md position 
will earn a team a place m next sea- 
son’s Champions League. 

Behind Inter, five teams battling 
for UEFA Cup places are separated by 
three points 

Lazio, which is fifth, salvaged a 1- 
1 draw against Rome rival Roma with 
an injury- time goal from Igor Protti. 
Lazio played the second half with just 
10 men. 

England Ole Gunnar Solskjaer 

scored two crisp goals to rescue 
Manchester United at Leicester City 
on Saturday. The Premier League 
leader, which trailed 2 - 0 , gained a 2-2 
draw and one of die four points it 
needed from its last four games to 
retain its tide. 

Arsenal, which started die day in 
second place but has played more 
games than any of the other leading 
clubs, lost at home, 1-0, to Newcastle 
and cannot catch tbe leader. Liverpool, 
which climbed to second with a 2-1 
' victory over Tottenham Hotspur, and 
fourth-place Newcastle are the only 
teams capable of overtaking 
Manchester United. 

Robbie Elliott scored Newcastle's 
winner at Highbury. Newcastle is nine 
points behind the leader with three 
games left Newcastle finished a bad- 
tempered game with 10 players. Keith 
Gillespie was sent off after collecting 
two of the game's 10 yellow cards. 

Liverpool lies three points behind 
Manchester United and has two 
games left. 

In the struggle to avoid relegation, 
Fabrizio Ra vane hi scored a last- 
minute penalty as next-to-last 
Middlesbrough beat Aston Villa 3-2. 

Last place Nottingham Forest man- 
aged only a 1-1 tie at home to 
Wimbledon and was relegated. 

At the bottom of the third division 
of the Football League, Brighton, 
which 14 years ago was in the top 
division, avoided dropping out the 
league altogether when it tied its final 
game. 1-1, at Hereford. 

The two clubs finished even on 
points but Brighton had scored more 
goals. Hereford dropped out of the 
league after 25 years. (AP, Reuters) 

A Full - Court Press Now 
In Women’s Basketball 

By Amy Shipley 
and Kail Hente 

Washington Post Service 

M INUTES after the Women’s Nation- 
al Basketball Association wrapped 
up its inaugural player draft, the 
American Basketball League, the only other 
women’s professional league in the United 
States, raised the stakes 
The ABL’s co-founder, Gary Cavalli, an- 
nounced to a national audience that his league 
had beaten tire WNBA for the University of 
Connecticut's star center. Kara Welters. 

The timing of the news conferences last 
week was strikingly illustrative. While the 
two new women's leagues fight to get off the 

r ind, they are also fighting each other — 

Ynvmro Sorm/Ageac* Huncr-PraM 

Michael Johnson, left finishing ahead of Vincent Henderson Sari day. 

Bailey and Johnson Win in Rio 

(Urepdrd fry fXr SkS Front Dapajus 

RIO DE JANEIRO — The Olympic 
sprint gold medalists, Donovan Bailey 
and Michael Johnson, easily won the 
100 -meter and 200 -meter races, re- 
spectively, at the Rio Grand Prix track 
and field meet Sunday. 

A crowd of about 10,000 cheered 
the affable Bailey but booed Johnson, 

who had been deemed unfriendly by 
the local press. After Johnson won in 
20.29 seconds, he was loudly jeered. 

Bailey, competing in his first in- 
dividual race of the year, won in 

The Canadian blamed the early 
morning start for what he described as 
a disappointing time. (AP. Reuters ) 

Sebastian Enjolras, 21 , Killed on Track to Formula One 

By Brad Spurgeon 

International Herald Tribune 

I only met him a few times, but 
each time I was impressed by a 

humble young man who was frilly 
i of where 

aware of where he wanted to go, and 
how he was going to get there. 

Sebastian Enjolras. 21. was 
climbing the ladder of automobile 
racing with apparently easy success. 
His goal was Formula One. But un- 
like more and more drivers who are 
jumping practically from go-karts 
into Formula One cars, he did not 
want to skip any stages in his de- 
velopment as a driver. 

His climb was cut short Saturday 
when he was killed at pre-qualify ing 
for the 24 Hours of Le Mans race. 

He started karting as a boy. At 17, 
after three years in the French team, 
he drove the fastest lap of the week- 
end in an indoor karting champi- 
onship at Bercy in Paris, faster than 
all the Formula One drivers, includ- 
ing Ayrton Senna and Alain Prost 

In 1994 he gained his first victory 
in a single-seat open-wheel cham- 
pionship, Formule Campus, and last 
year, at the next level, he won the 
French Formule Renault champion- 
ship with 11 victories and 12 pole 
positions in 16 races. 

“I want to learn as much as pos- 
sible to arrive in Formula One at a 
high level of experience," he said. 
“ There are some who have gone up 
too quickly and have stagnated at a 
high level. They’ve stalled.” 

This year he had agood start to his 
first season in the Bench Formula 
Three championship, generally con- 
sidered two stages down from For- 
mula One. 

On Saturday, the body work of his 
car, part of tbe Rachel Welter team, 
came loose and the car became air- 
borne and flew over tbe safety, bar- 
rier of the track. 

On the same Saturday three years 

ago Roland Ratzenberger died dur- 
ing qualifying for the Formula One 
Grand Prix at Imola. Ratzenberger' s 
best time would have been good 
enough for last place on the grid. Tbe 
next day Ayrton Senna, who had 
qualified first, died during the race. 

First place, last place, a place not 
yet made, motor sport remains 
deadly. While a high-profile murder 
trial is going on in Italy against 
Senna's team, who are being charged 
for his death, another driver has died 
in a similar manner, practicing the 
same .sport. He will never make it 
into the history books as anything 
more than a small statistic. 

players, attention and marketing dollars. 
At the corporate level, the ABL and WNBA 
are enrwined not in a spirit of sisterhood, but 
in a fierce competition. 

It’s a telling development considering that 
no professional women's basketball league 
has yet survived in the United States. 

“Hopefully it won't hurt women's bas- 
ketball overall,” said Kanina McClain, a 1996 
Olympian who recently signed with the ABL’s 
Atlanta Glory. “What makes me kind of fear- 
ful about the whole thing is, with basketball in 
the summer and the winter, we’re throwing a 
lot of women’s basketball at the public.” 

The competition has grown more pro- 
nounced as the WNBA, hacked by the con- 
siderable marketing muscle of the National 
Basketball Association and a network tele- 
virion deal, approaches its start June 21 . With 
the WNBA climbing into its ready-made spot- 
light. the ABL — which holds its draft 
. Monday — seems to be on the attack. 

Spending far more on salaries than the 
WNBA, the ABL has landed most of tbe big- 
name college graduates in recent weeks. Its 
most significant signing was Kate Starbtrd of 
Stanford, the Naismith Award winner, who 
will play for the Seattle Reign. After losing $4 
million in its first season, the ABL has vastly 
increased its talent for the start of its second 
season in the fall. 

While Val Ackerman, the head of the WN- 
BA, tried to move away from combative state- 
ments, saying that the two leagues are * ‘com- 
plementary,” Cavalli has occasionally 
sounded like a Pepsi executive who just stole 
a few market-share points from Coca-Cola. 

“It’s been very stressful.” Cavalli said. 
“For every top player signed, it’s been a battle 
going up against the most successful, pres- 
tigious basketball mac hine in tbe world.” 
Nancy Lieberman-Cline, a Hall of Fame 

player who will join the WNBA's Phoenix 

does not share Cavalli ’s feelings 
but she understands them. The WNBA has not 
had to work for exposure: Its ads have appeared 
during every NBA broadcast on NBC since 
March 9 and all 29 NBA teams have aired die 
ads on team television and radio broadcasts. 

more aggressive in its approach.” ft has been. 
Pointing out that the ABL has landed such 
stars as Georgia’s La’KeshiaFrett Alabama'^ 
Shalonda Eras, Florida’s DeLisha Milton, 
Notre Dame's Beth Morgan and Georgia’s, 
Redra Holland-Com. Cavalli said: ‘*1 
wouldn’t go so far to characterize it as a 

“But, we identified 13 players out of col- 
lege we felt we should have. Of the 13 w£ 
identified, we signed eight. The WNBAr 
signed three. ” 

Players say they’ are signing with the ABL- 
because of the quality of competition, the tim- 
ing of the season and the places the teams play.-. 
Wolters, who signed with the New England 1 
Blizzard, said the biggest factor in her decision; 
was staying at home and playing in front of- 
Connecticut fans. The bigger salaries also have 
been an enormous lure for the ABL. 

Top ABL players, such as Starbird and; 
Wolters, will earn $ 150,000 in base salary next- 
season — a $25,000 increase from the league’s; 
first 40-game season. The ABL’s minimum' 
salary, $50,000. is more than the $37,500 that 
will be paid to the top three picks in the WNBA‘ 
draft: USC’s Tina Thompson and Pam McGee 
and Stanford’s Jamila Wideman. ~ **■ 1 

WNBA salaries decrease through the 
rounds of the draft, with fourth-round picks, 
such as George Washington's Tajama Ab-. 
raham earning $15,000. The WNBA says it is* 
striving to keep salaries under control. 

It also touts the substantial number of over- 
seas players it has attracted to play alongside 
such American stars, as Sheryl Swoopes, Re- 
becca Lobo, Lisa Leslie and Lynette Woodard.' 
Players have chosen the WNBA for its ap- 
parent security, shorter season and the guar^ 
anteed exposure. ‘ ‘With the NBA backing, you 
can't go wrong,” said Virginia’s Torn S Liber, a* 
first-round pick of the Charlotte Sting. 

Ackerman seems unconcerned by the ABL's- 
recent signing blitz. Perhaps that’s because ,' 1 
with the NBA firmly behind it, the WNBA does 
not need to be unnerved about anything. Games’ 
will be shown three times a week on national* 
television. The WNBA has seven national- 
sponsors. according, to Ackerman, and is ex-“ 
peering to announce two more. 

Whereas ABL games were on network* 
that reach 66 million homes, the WNBA has 
much wider exposure, led by NBC, a national* 
network, and ESPN, the sports network. 

“We don’t believe high salaries and high- 
debt will be a formula for the long-term' f 
success of a sports league,” Ackerman said. 

The WNBA will play a 28-garae schedule' 
during a two-month season this summer, die 
least active time on die sports calendar. 

The ABL's 40-game season took place last' 
fall and winter. Also, while the WNBA has* 
franchises in large-market NBA cities, the; 

ABL put its franchises only in smaller cities,- 
careful to select regions it believed would be 
receptive to women's basket bafl. 

Though it averaged 3,536 fans a game 

yet* So f’ 

yw Sun ? 


a 0° m 

- ■:> ■ 

c — - 1 * * 


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becbjdir::: :» 


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Eventually, Lieberman-Cline said, she ex- above the preseason projection of 3,000 — and 
pects the leagues will merge. “It's David and still suffered $4 million in Josses last year, the 
Goliath,” she said. “The WNBA feels it can AT ” **-- ^ ~ 

Hifav V*. :: 

Eve ii< tv,:-: 
dmble-co-T.i. : _ v. 
Poto.'ra: ■ 

Tte S:- : >■ 


take its time and build a foundation for tbe 
long term. I think the ABL has to be a little 

ABL was recently fortified by $6 million from, 
a new group of investors and bas expanded to' 
a ninth city. Long Beach. California. 



Major League Standings 








































Kansas Qty 
































, 14 




runoNJU, iiaouk 





















New York 





















St. Louis 





















San Fitmcfsca 17 




Las Angeles 





San Diego 









TOO 000 000—1 

5 0 

Cnnft Nelson (8), Stanton (8), M. Rfwra (B) 
and Gtardb Rtlstey, J. Walker (8), R. Varas 
CM. M. wnnams IV) and Spehb Sweeney (7). 
W— Cone. 3-1 L— PWster, 0-2. Sv— M. 
Rivera (9). HRs — New York, B. WDOoms (31. 
T. Maiflmz (10]. 

Basin IN 110 101—* 12 1 

Tens 001 on 100-4 a l 

Sole. Coni («, B. Henry (71, Stocumb (9) 
ond Hatteberg, Hosebnon (8); Burkett, 
Gunderson C7), Pa t terson C7J. Wettetand (91 
and I. Rodriguez. W— B. Henry 2-1. 
L— Patterson, 2-3. HRs — Boston, M. Vaughn 
(7). Tens, Buford (2). 

Milwaukee 0M 0W 100—1 3 0 

Seattle ON 323 Ofei-4 10 1 

D'Amico. Maloney (6) and Matheny; 
RJotmsan, Ayala (9) and D.WBson. W— R. 
Johnson, 441 L— - DAmta, 0-2. 

HRs— Mflwnukea, Mieske (1). Seattle. 
Griffey (l«, A. Rodriguez (Si. O. Wilson a]. 

Harris (II. San Fi wcteuL Bands M, 
Taubensee (4). 

Montreal IN IN Zlft-d 9 • 

San Mono 2M IN lot— 4 11 • 

Judea Telford (7), D. Veres (7), Urbina (8) 
and Wldger: VaJenzuefci Bodriler (8} and 
Ftalwrty. W— O. Veres. 1-0. L— Boehfler, 0-1. 
Sv— Urbina (3). HRs— Montreal 

Grudzielanek (1). R. Write (5). San Diega T. 
Gwynn (6),C Janes Cl). 

Chicago IN ON Hi 0—7 12 1 

Los Angeles 301 M0 201 1-6 11 B 

Tetemaca BoffenfieM CO, T. Adams (7), 
Rotas (V), Patterson (10) and Houston, 
Serrate 19); RJAarttnez, Drettbrt (6). 
Radbnky (7). Gultirte (8), Hah m. Candatn 
(10) ond Ptazza, Prince no>. W—Caruflatn. 3- 
I. L— iwterean, 1-2. HR— las Angefes, 
Piazza (5). 

Bafflreot* 011 112 20*— 7 13 8 
Karsay, Acre (J) and Molina; key, A. 
Benitez (?) and Hailes. W-Key, 54). 
L— karsay. 03. HRs — Baltimore, R. Alomar 
(4), E- Davis (6). 

Minnesota 002 ON 000 1—3 7 2 
Toronto 100 Ml 000 •— 2 6 0 

Rgdfca Aguilera (10) and SMnbacte 
Person, Crabtree (?) and OB rien. w— Rad ko, 
2-1. Lr-Cmbtree. 1-2. Sv— Aguttero (SI. 

Mew York 000 200 025-9 7 1 

;Ofr OH >10 000-1 7 2 


Pittsburgh ON 200 001-3 6 0 

Atlanta ON 011 000-2 7 0 

Sdimldt Pelera IB), Loiselle (9) and 
Kendaifc GAtaddux. BJelecU IB), Embree (9) 
and E. Perez, w— Peters. 1-0. L— BlelecW, 1- 

1. Sv — Lolsefle (i). HRs-flnsburgti A. 
Manln (1). Atlanta, Lemke CU. 

St Louis 004 ON 000-4 < 0 

New York 120 IN 12*— 7 11 ] 

Osborne, FrascnJore (31, Mathews (61, 
Honeycutt (8) and Dtfeflas Reyimsa 
McMIdtael (7), J. Franco (?) and Huntfiey. 
W— McAAIdiael 2-2. L— Mattwws, 0-1. 5v- 
Franco (7). HR— New York, Huskey (3). 
Florida 010 «M 000-1 8 1 

Houston in an oo*— a 8 l 

Rapp, Powell 17) and C. John&an; 
Reynokte. B. Wagner (9) and Ausmus. 
W — Reynolds, 4-2. L— Rapa 2-2. Sv- 
B. Wagner (6). HRs— Horida Canine (5). 
Houston, Bagwell (81. 

PbBndelphfci 500 002 080-7 9 1 

Colorado 200 011 000-4 5 0 

BJMunax. R Hants (71 SpradDn (B), 
BcttaUco (91 and Ueberthot M.Thompson. 
McCuny (7), DeJean (?) and. Mrmwomig, 
Reed (7). W-B. Munoz, 1-4. L— m. 
Thompson, 3-2. Sv— Borin Deo (6). 
HRs — PhOadeJplria. Brogno O. CotoradA 
Manwaring (1). 

Oadnoff 018 OM 001-6 13 I 

SwFmdin 001 BOO 100—2 3 I 

Schoun*. Show (8), Brantley (9) and 
Taubensee, ORver (9); CLFeracmdez, Poole 
(6), Roa <81 and R. WBhs. W— Schaurek. 2- 

2. L-a Fernandez, 3-2. HRs-Ondnnall L 


Minnesota IN 810 llO-d 10 0 

Tomato 010 ON 401-4 10 0 

Robertson, Trombley (7), Guardado (7), 
Nautiy (7), RttcHe (0), 5wtnde0 (9), Oban (9) 
and G. Myer* Guzman, Spo^rfe (5), TTmBn 

(7) , QuantiBI (9) retd Sardtaga. W— Quontrill 

Detroit 005 0W 001—4 5 1 

Cleveland 102 ON 022-7 10 .1 

MoeWw, J. Cummings <63. Mkxfl (7). M. 
Myers (8), Broad (9) and B. Johnson, 
Casanova (9); Ogea, Plunk (8) and S. Alomar. 
w-Ptunk, 1-2. L-BrocoH, 03. 
HRs— DetraH, To. dark (9). CJevetoncl 

T.Femandez (2). 

Orddaod ON 010 102-4 7 0 

BaNtaure MO 003 000-3 9 0 

MoWer, A. Small (7), Groom (9), Taytor(9) 
and Moyne, Moflna (91; Mussina 

TeJAathews (7), Oresaj (7), A. Benttez (8), 
Rhodes (8), RaAtyen (9) and Hades; 
Webster (9). W— A. SokA 43. L — RaJMyers, 
0-1. Sv— Tartar (6). HRs — Oakland. Giambi 
(4), Sptado (4). BaUfmare, C. Ripken CO, 
IncavIgBa (31. 


Anaheim 001 000 011— 3 8 0 

Chicago QM 000 002-2 11 a 

Watson, P. Harris 18), Holtz (8), James (91, 
DeLuda (7) and Lcyrits Baldwin. T. CnttlDo 

(8) , Simas (9J, Bettoffl (9) and KarKoviCE. 
W— Watson. 1-2. 1^— Baldwin, (M. 
5v— DeUieJa Cl). 


Anaheta Ml 0M 001—2 3 8 

CUcngu 101 200 OCbC — 4 9 1 

DJpringer, D. May- (4) and Fabregas; 
Drabek. T. CasflBo (8), R.Hernandez (9) and 

Pena. W— Drabek, 2-1 L— D. Springer, 0-1. 
sv— R. H ernandez (4). HRs— Anaheim, 
Hawed (2). Chicago, Durimm (2). 

New York OM N1 000-1 8 1 

KMsasOty 081 881 OOx— 2 i 0 

Pettftte and GfeartS; Belcher and M. 
Sweeney. W— Belcher, 33. L-PeWtte, 5-1. 
Boston 281 030 000-6 12 1 

Texas 0M 418 802-7 14 2 

Avay, Tdcek (4), Corel (6), Games m, 
Skxuavb (ft) and Hasebnare DjOBvcg Sarv 
tana (5), X Hernandez (8). vosbetg (91 and 
IJlodriguaz. W— Vbsbetg, 1-1. L— Stoaimb, 

0- 1. HR— Boston, Pemberton (1). 

MBwmdtee 081 201 005-17 17 0 

Seattle 2M 011 000-4 14 1 

J -Mercedes, Ftarto (51. Vlllone (8), 
Wfckman (9) and Matheny, Levis (9); 
Fassera Lowe (2). B. Wells (5), Wolcott (8). 
Charlton (9) and □. Wilson. Marznno (5). 
W— Ftorie, 1-G, L— Fassero, 4-1. 
HRs— Mlhraukee, Unrae ni. MewfMd (13. 
Mieske (2), Jaffa (7). 


SI. Lords 0M 010 000-1 8 8 

New York 000 111 2Q*-5 9 0 

AiLflenes. Raggia (7) and LampMa 
□tielKe (7); R-Reed, KastUwada (8) and 
Hundley- W— R. Reed, 3-1. L— AivBenes, 1- 
1. HRs — New York. Otorud (4), Humfley (7). 
PMad WnMe 010 OM 110-3 6 1 

CMereda 002 220 OTx-7 7 2 

Portugal, RuHCam (4). Minds (5), 
Ptantonbeig (7), R. Harris (8) and Parent. 
Lieberthal (B); Wright Dipatu (8), M. Munoz 
(8), S. Reed (9) and J&Reed. W— Wrfght,4-1. 
L— Portugal 0*2. 

Ondaatt 0M OM 012-3 6 2 

sap FftuKteca on 8<w an— i 9 3 

SmSey. Shaw (B), Brantley (91 and J. Oliver 
VOnLandlngftam, RLRadrlguez (8). Tavnrez 
(8), Poole (91 and Jemen. W— SmOey, 2-5. 
L— R. Rodriguez. 2-2. 5v— Bnmfley (1). 
HR— San Francisco, M. Lewis (3). 

PfftsMrgb OH 010 002-3. 7 1 

Ariosto 0M OH 000-0 4 1 

Lootza. Rlnam (9) and Kendall; Gfavfnc, 
Oontz (9), Byrd (9), Embree (9) and J. Lopez 
<93, E. Perez (91. W— Lootza 3-0. L-Gtavtoe, 
4-1. Sv— Rtoam at. 

Montreal 0M om ooo-a 3 l 

San Dfege IN OH 00*— T 5 0 

Hetmanscm, Dual (6L M. VatOes (6). 
TeHxrrd (8); Tf.WorreJl Hoffman (8) and 
Raherly. W— TLWorrel, 2-1 L— Hetmartsan, 

1- 2. Sv— Hoffman (4>. HR-Sand Diego, 
Gwynn (7). 

Hacua too 300 002 0M 1-9 11 1 
Houston 330 101 OH 0M 0-8 17 2 

(13 InntogsJ^aunden. Starter (4), Hutton 
(6), Nen W. Cook (10). F.HwwSa (12), 
Pawel (ISandCJaimsats Hampton. Lima 
(4), R^pringer («, Hudek (9), B. WOgner (9), 
Martin (11), R. Garda (13) and Ausmus. 
W— F. Heredia, 2-0. L— R. Garda, 2-1. 
Sv— Powell (1). HRs— Ftorida, Abbott CO, 
Zaun (2). 

Chicago 100 IN 000-2 S 0 

Los Angeles 0M 8M 001—1 8 3 

MutooBand, Rotas (9), T. Adams (9) and 
Senator l.veidu. Had CBL Dietfort (9) and 
Piazza. W-MuOnSand, M L— I. Vtrtdes, l- 
4,Sv— T.AdmrreCO. 

Japanese Leaoues 








































Hanshbi 7, Hiroshima 3 
Onmtchl 8, Ycrkutt 3 
Ybraluri 5, Yokohama 2 

Yokult 7, Chunktil 6 
Hcmshla 3, Hhusfflma 1 
Yokohama & Yomkirt5 

Ana beta 0 1 0 0-1 

Detroll 0 0 11-2 

First Period: None. Second Period: A- 

Kartya 6 (Vtm tape, Mironov) (pp). TWrd 

Period: D- Fedorov 1 (Sandstram, Udstrem) 
Overtime: 1 D- Lapointe 1 (Shanah a n. 
Murphy). Shots bo god: A- 6-9-5-0—20. D- 
13-6-10-1— 3a Gg n B es: A-HeberL D- 

(Detroit leads uital-l 
Edmonton 0 \ tt— 1 

Colorado 2 2 1—6 

First Period: C-Laantol (Corbet Saldd 2, 
C-Lemieux 6 (Forsberg, Kamensky) Second 
Period: E-ButMrerger 2, 4 C-, Forebetg 3 
(Lacnnd 5, GUzoflnsti 3 (SaMc) TNrd 
Period: C-Porsberg * (Ozodnsh. Saklc) (pp). 
Shots oa goab E-139-14— 36. C- 14-14-9—37. 
GeaBes: E- Joseph. C-Roy. 

(Cotornde leads series 1-8) 
PbBodelpbla 8 2 3-5 

Buffalo 0 3 0-3 

First Period: None. Second Period: B- 
Gnrsek 1 (Ptante, Baughnei) 2. B-AAay 1 
(Ray, Wilson) 3, P-KortUc 1 (Zubrus, Loauird 
A Brivudeite 3 (Buiridge, SmeffOO (ppl. & P- 
Renberg 2 (Coffey) (pp). TOW Period: P- 
BrimrAmoiir 4 (Hnwadruk, Falloon) 7, P- 
Podeto 2 (KtaU. Otto) & P-BrintfAmour 5. 
tar). Shots no goal: P- 1 2-20-15-47. B- 6-12- 
1*— 32. Goa Bob P-Siww. B-Shletas. 

(Ptritodelptita leads series 1-) 



Otago 28, Auckland 45 
Waikato 47, Gauteng 9 
Queensland 40, Natal 3 
Northern Transvaal 23, Cantertrury 22 
sTJUMmrasc x-Aucfcland 4tt WWIhgtan 
31; ACT 31; Natal 27) Gauteng 22r Northern 
Transvaal 20; Free State l^Waftatol 8; Carv 
terbury 17; New South Wtoes 16; Queensland 
15; Otago 13. 

xRnched semttftial berth. 

Enqlish First Division 

Leicester 2, Manchester Untied 2 
Liverpool 2. Tottenham 1 J 

NUdrflesbraugttl Aston VUa 2 
Nottingham Freest l, Wimbledon i 
Southampton Blackburn a 
Sunderland % Everton 0 
west Ham & Sheffield Wednesday 1 
STMuwfOSi Ma nc hester United 7th 
paWs Liverpool 67; Arsenal i& Nawcnsfle 
63: Aston VBta SB; Chefaen 56. Shetfleto 
Wednesday 56i Wimbledon 5ft Tottenham 
4ft Derby 4ft Leeds 4& Everton Black-, 
bum 41; Southampton 41; West Ham 41; Le-' 
taster 41; Sunderland 4ft Coventry 3ft Mid, 
dleshrough 3ft Nottingham Forest 34. 

2. Bath 31; 3. Hariegulns 3ft 4. Leicester 29; 5. 
Sale 2ft 6. Saracens 2S; 7. Gbucester 23) & 
Northampton 2ft 9. Bristol 17; 10. London 
Irish 12; 11. West Hartlepool ft 12. QrreU 6. 

World Championships 












Da lei 























Nippon Ham 






euuni«MY f a imus 

SeBru 7. LotteS 
Dale! 8. Kkitasu 1 
Nippon Ham A Orix 3 

Seffru ft Lotte 3 
Orix ft Nippon Ham 3 
KWetsu 4, Doled 


Finland ft Slovakia 2 
Czech Republic 9, Frances 
Genua ny 1, Slovakia 0 
Finland 7, Russia 4 

standi Man, x-Czoch Republic 8 paints; 
x-Adand ft x-Russlo 7; Skwatda S France 2; 
Germany L 

Sweden 1, Latvia 1, 

Canada ft Italy 0 
Sweden X United States 1 
Latvia ft Norway 3 

STANDmcn x-Swedvt 9 palms; x-Cano- 
da 7; x-ua. ft Latvia ft Italy 3; Naroray 1 . 

x -advanced to medal round 

NBA Playoffs 






Pf-TT^ * mutmud * D** FSaUl 



AIMlta 22 24 27 21- 94 

Detroit 23 IS 19 25- 82 

A: Saiitti 7-12 9-10 2& Mutombo 54 64 1ft- 
D: HM 11-29 6d 2& Dumare 3-13 6-6 U Re- 
bauads^Altanta 57 (Loettner. Mutombo 12), 
Detroit 42 (Milts ID). Assists— Ahantn 19 
IBkrylsek «), Del. 13 (HM, Dumalft Mctde 3). 
(series tied 2r» 

LA Lakers 21 23 24 27-95 

Pwltond 19 30 25 17-91 

LA. takers: Campbefl 8-16 11-12 27, 
ftONeal 9*19 9-1 1 27; P: Sabonis 1 (M63-221 
Wallace 10-14 04) 21. Rebounds L« 
Angeles 46 (Horry, S.(7NeaL Van BteL 
Kereey 8), Portland 43 (Sabanb 10). 
Asslstf-Las Angeles 16 (Jones, Vbn Exri S), 
Puittond 30 (Andenan 5). 

(LA. tatore win series M> 
miurwiy’s Rimn 
Phoenix 23 18 32 19- 92 

Seattle 33 38 18 33-116 

P: Person 10-191-2 2ft Johnson B-27 3-3 2ft 
S: Schrempf 9-14 2-2 24, Kemp 6-12 9-11 21. 
teteoffds-Phoenk 44 (Person. «dd 8), 
Seattle 56 (Kemp 11). Aestts-Pfioenl* 19 
(Kidd 7), Seattle 29 (Payton 10). 

(Seattle wins series 3-25 

West tadtes: 3004) (44.4 owns) 

India: 199-7 (50 overs) 

West I nates won by 10 wtekefc; and wtn 
series 3*1. 

Chumichi Crowns 

Final aeeras Sunday In the l20mMonyen 
(8 945JKHJ) CtMidchi Crowns gaff 

per-70 Nogoya God CMb Wego eruirse at 
Aten*. Japan: 


"Jumbo" OnklJap, 

Brian Watts. U.S. 

G. Nonnan, Australia 

S. Gkm, Austrafla 
N. Serbawa. Jap. 

Rick Gibson, Canada 
K. TakamL Jap. 

Kaname Yakoa Jap. 
IkuoShlrahamb Jap. 

Tofchl Teshtaa, Jh- 

Italian Open 




67- 68-71 •66— 272 
71 -67-71 -64— 273 
69-48-4B-68— 373 

68- 70-67-48—273 

NHL Playoffs 

N-Y, Rargera 
Mew Jersey 

sun FOULS 


0 0 0-0 

, 0 1 V -2 

First Period: None. Second paled: N J.- 
Wedermayer2(Chfflnbeni. Ettas) (Pp).TWrd 
Ported: NJL-MocLflan 4 (sevens) ten). 
Shots aa geac New York 6-8-7-21- *U.- 19- 
9-6-34. Gefttes; New York, RKMer. tU^ 

(New Jersey loads series 1*) 

Top finishing scores end winner's prtzn 
monsy sftor Sunday's final round a the 
S7KLOOO Rattan Open, ptoyed on ihc psr-72. 
7.111-ywrd (MOO^n-r-ri Oardogoff Country 
Ctirii course, a Breeds, taty: 

B. Longer, Germany 71-69-69 hW— 273 

J.M.Otazabol, Spain 68 * 71 - 67 - 68-274 

D. Ornta, N. Ireland 
S. Webster, England 
P. Walton, Ireland 
Brian Daria, Englamt 
Daren Lee, England 
D.Robertsaa Scotland 

C. Roots, Italy 
R- Russet Scotland, 

[_ Westwood, England 

6B- 75-65- 70—278 

68- 70-76-66— 279 
71-69-7069 — Q79 
71 -69-68.71-279 

71- 73-69-46—279 

72- 7066-71—279 

69- 746967—279 


MAC Breda a Feyenoard z 
Sparta Rotterdam 2, A|ax Amsterdam 1 
VHesse Amhem Z WBtom II TRburg 0 
Vblendam £ AZ Afiunaar 2 
Greatodiap Doettnchem 2. Heerenveen 1 
Twente Enschede 2. Fbrtuna Stored 1 
RKC Woahrijk I, UlrecntO 
areWNMNam Peyenoard 66 paints PSV 
6ft FC Twente 5ft Ajax 51; VHesse 51; 
Heerenveen 5ft Roda JC 49; De Graafschap 
39; NAC39; Sparta 32s FC Grtmlngen 32; FC 
Utrecht 32; Fortuna Sltt. 32; wmem II 31; FC 
Vaiendam 31; NEC 2ft- RKC 2ft- AZ 22. 

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World Champiomsheps 

Deng Yaplng, CNna 21-12 22-20 19-21 21-11 * 


CMong Peng^ung, Chen Jlnft Taiwan and 
Wong Lkda Wong Non, China 


PAGE 23 



:T -• 

Sonics Soar, 
Sending Suns 
And Johnson 
Back Home 


By Tom Friend 

Nov York Tima Service 

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SEATTLE ■— Either one team or one 
player was going to be heading home — 
either the Seattle SuperSonics or Kevin 
Johnson — and that was Johnson tum- 
ingin his mesh uniform. 

The Phoenix Suns and the fastest 
point guard on Earth were retired si- 
multaneously on Saturday, after the Su- 
perSonics finally found a bench player 

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who could make a shot. His name was 
David Wingate, the Suns refused to 
guard him, and his 19 points helped the 
Sonics to a 116-92 playoff victoiy that 
was far more tense than the score in- 

fa The first half was all Seattle, the third 
^ quarter was a mood swing and the fourth 
was a bon voyage. 

Johnson, who has said he decided in 
junior high school that he would play 10 
professional seasons, wrapped up his 
decade by missing nine straight shots 
with the game on the line — he was 8 of 
27 over ail — and that was why Seattle 
won the fifth and final game of this first- 
round series. 

The Sonics now face Charles Barkley 
and the Houston Rockets, starting 
Monday night, while Johnson faces 
.rrj.'* Jetty Colangelo, starting next month. 
Colangelo, tine Suns’ owner, will tiy to 
convince the 31-year-old Johnson to 
■'<> return for one mote season. 

: J’ .!/ In his NBA career, Johnson has 

scored 12,611 regular-season points in 
. .. 5 679 games and 1 ,942 points in 92 play- 

off games. He was a three-time All-Star 
_ ' - • and one of six players to surpass 11,500 
points, 6,000 assists, 2,000 rebounds 
.. and 1,000 steals. 

. : . . Asked if his decision to quit now was 

final, Johnson said: “I've never 
changed my mind about this. Obvi- 
; - : Sj.v ously, if the Lord changes my mind. I'll 
: c be obedient to than I’U need a sign.” 

• -c ’ What would a sign be? “A burning 
bush,” he said. 

Seattle had a burning bench on Sat- 
urday. Not only did Wingate (stepping 
in for the injured guard Nate McMillan) 
have 10 rebounds to complete his 
double-double, but the sixth man, Sam 
Perkins, had 15 points. 

The Sonics’ point guard, Gary 
Payton, had carried his team until Sat- 
urday, when he shot a horrible 7 of 26 

Braves Bounce Back to Beat Bucs 

The Sonics’ David Wingate passing off behind Wesley Person of the 
Suns. Seattle will now meet Houston in the second round of the playoffs. 

■ ! .1 > 

from the floor. It was Wingate and Det- 
lef Schrempf (24 points on 9-of-14 
shooting) who bailed the team out 

Seattle led 63-41 by halftime, mostly 
because the referees were- swallowing 
their whistles. Johnson got to die free- 
throw line just once intbe first half, so the 
Suns’ coach, Danny Ainge, told his play- 
ers to shoot 3-pointers in the second. 

They drained six of them in the third 
quarter and used a 17-2 ran to get as 
close as 5 points. With the score 8 1-76 
early in the fourth, Wingate and Schr- 
empf hit consecutive 3-point bombs, 
and then the Suns fell asleep on an 
inbounds play and yielded a Wingate 
lay-up, making it 89-76. 

Down 2 Goals, Flyers Overcome Sabres 

|( _ s aisa* 

;i rtf** 


The Associated Press 

Just as the Buffalo Sabres were ready 
to forget about Dominik Hasek’s sus- 
pension, Shjon Podein reminded them 
with a shot between Steve Shields's 

. Podein scored with 48 seconds left in 
ihe third period as the Philadelphia Fly- 
ers overcame a two-goal deficit to beat 

‘ NH1 P tArorn 

the Sabres, 5-3, Saturday night in Game 
1 of the Eastern Conference semifinals. 

Podein scored the game-winner after 
Trent Klatt poked the puck loose behind 
i the Buffalo net Podein grabbed control 
. --?and stuffed it past Shields as the Sabres’ 
goalie moved across the crease. 

Klart “did all the work behind the 
, net” Podein said. “He held off two 
guys at the same tune. I just kind of 
jammed it home.” 

Rod Brind 'Am our tied the game mid- 
way through the third period and com- 
pleted the scoring on an empty-netter 
Jrith six seconds left 
n Shields, who replaced an injured 
Hasek in the Ottawa series and helped 
the Sabres outlast tire upstart Senators, 
is playing while Hasek serves a feree- 

f^^e^ e Shj^°made^savM C S 
kept the Sabres in the game before 
Podein put them away. 

“I felt like I was playing well,” 
Shields said. ‘T saw the puck welL We 
just got caught by our mistakes.” 

The- second game is scheduled 
Monday night in Buffalo. 

This game had scoring, heavy hitting, 
fighting goalies, a goal with one second 
left in the second period and, at the end, 
two.exhausced teams. 

The contest was stopped for about 15 
minutes with 2i55 left in the second 
following a scuffle in front of the Phil- 
adelphia net. 

It ended with everyone on the ice 
matched up while the Flyers' goalie. 
Garth Snow, and Shields traded words 
in the Flyers' zone and punches near the 
Sabres’ beach. 

Michal Grosek. Brad May and Don- 
ald Audette bad Buffalo’s goals. Dan 
Kordic and Mikael Renberg also scored 
for the Flyers. Snow had 29 saves. 

Buffalo had a goal disallowed with 
8:06 left in regulation after officials 
ruled that a Sabres forward, Wayne 

Primeau. was in the crease when Rob 
Ray flipped the puck past Snow. 

■ Whalers Heading South 

The Hartford Whalers seem to be 
headed for North Carolina and, barring a 
late deal with the Greensboro Coliseum, 
will make their temporary home in Fay- 
etteville, The Associated Press reported. 

The team’s permanent home will be 
Raleigh's new $120 million arena, to be 
completed by 1999. The Whalers also 
had been courted by Columbus, Ohio. 

The arena in Fayetteville seats 10,000 
for hockey and would be the smallest in 
the league. 

Jim Rutherford, the Whalers* general 
manager, said die team could target cor- 
porations and aim for an average ticket 
price of $50 to $60. 

The average league ticket this season 
was about $39. 

Sweden Holds Championship Edge 

The Associated Press 

TURKU, Finland — Sweden 
scored two goals m the last four 
minutes for a 3-1 victory over the 
United States, but both teams ad- 
vanced to the medal round at the 
World Ice Hockey Championships. 

Canada beat Italy, 6-0, Saturday to 
gain a place in the final round. 

In Helsinki, the Czech Repnblic 

beat France, 9-3, and Finland rallied 
to beat Russia, 7-4. 

Canada, the Czech Republic, Fin- 
land, Russia, Sweden and the United 
States will start a round-robin tour- 
nament Monday. Teams that met in 
the first round do not play again, so 
Sweden starts the round robin in first 
place with four points for its victories 
over Canada and the United States. 



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The Associated Press 

Chipper Jones singled in one ran. two 
more scored when a rookie right fielder. 
Emil Brown, dropped a fly bail and the 
Atlanta Braves beat the Pittsburgh Pir- 
ates, 3-1. Sunday. 

Atlanta, the National league leader, 
had lost the first two games of the 

The Braves scored three runs with 
two outs In the third inning. Michael 
TUcker doubled, took third on Francisco 
Cordova’s wild pitch and scored when 
Jones singled to right. 

After Fred McGriff walked, Ryan 
Klesko lofted a fly ball to Brown, who 
appeared to have trouble with the swirl- 
ing wind and was unable to keep it in his 
glove. He was charged with an error. 

Terrell Wade (2-1) allowed six hits, 
struck out six and walked two. He was 
chased in die sixth when A1 Martin led 
off with a single and scored on Kevin 
Young's double. 

Mark Wohlers got four outs for bis 
eighth save, getting out of a two-on. 
two-out jam in the eighth. 

Cordova ( 1 -3) gave up five hits in six 
innings, struck out two and walked two. 
The loss stopped a three-game winning 
streak for the Pirates, their longest this 

bum Jays i, twins o Pat Hentgen 
struck out 10 and pitched a four- hitter 
Sunday, giving the Blue Jays a victory 
over Bob Tewksbury and Minnesota in 

Tewksbury pitched a four-hitter but 
lost, Car! os Delgado's run scoring 
single in the fourth inning sent the 
Twins to their 10th loss in 11 games. 

Hentgen, last year's AL Cy Young 
Award winner, walked only one and 
retired 17 straight batters. It was his 
seventh career shutout and first com- 
plete game of the season. 

Hentgen (2-1) gave up singles to 
Chuck Knoblauch and Matt Lawton in 
the first, but did not allow another run- 
ner until Lawton walked with one out in 
the seventh. 

The Toronto right-hander has pitched 
at least seven innings in 22 of his last 23 

starts. Knoblauch, in the first inning, 
was the only Minnesota runner to get 
past second base. 

Tewksbury (1-5) did not allow a hit 
until Orlando Merced led off the fourth 
with a double. Two outs later. Delgado 
blooped a single to right that scored 
Merced. Tewksbury struck out two and 
walked two in his second complete 
game of the season. 

Tigers 2. Indiana o Detroit snapped a 
15-game losing streak at Jacobs Field 
but lost its pitcher Willie Blair to a 
fractured jaw. 

Blair was hit in the head by Julio 
Franco’s line drive and taken off the 

Sunday Baseball 

field in an ambulance after shutting out 
his former team for 5Yi innings. 

The Tigers said Biair (3-2) sustained 
a fractured jaw and would be hospit- 
alized overnight. 

The Indians were shut out for the first 
time in 104 games.. 

Blair was working on a four-hit 
shutout when Franco drilled a shot right 
back the mound with two outs in the 
sixth inning. The ball hit Blair near his 
left ear, and be lay motionless for about 
five minutes. Franco ran past first base 
and squatted with head in hands, trying 
not to look. 

John Cummings relieved and retired 
seven straight and Doug Brocail pitched 
the ninth for his first save. 

Gartfinsls 8, Meta 2 Todd Stottlemyre 
allowed three hits in eight innings and 
Tom Lampkin drove in three runs as St 
Louis won in New York. 

Ray Lankford and Willie McGee 
homered as the Cardinals salvaged the 
final game of the three-game series. 

Stottlemyre allowed just two hits be- 
fore Steve Beiser.hit a bloop leadoff 
double in the eighth. John Frascatore 
finished with a two-hit ninth. 

Stottlemyre has won all four of his 
career starts against the Mets. The right- 
hander struck out five, walked three and 
was never in real trouble. 

New York ran itself out of a potential 

big inning in the fourth when Todd 
Hundley got caught off second base 
following Carlos Baerga’s one-out sac- 
rifice fly. . . 

The loss was the Mets' second in their 
last eight games and prevented New 
York from reaching .500 for the first 
time since April 5. 1996. 

The Cardinals didn’t waste any time 
getting to Mark Clark, who lost for the 
first time in four starts. 

Delino DeShields dropped a bunt 
single on the first pitch of the game and 
promptly stole second. One out later, 
Lankford hit a 1-1 pitch over the left- 
field wall for his fourth homer. 

Danny Sheaffer followed consecut- 
ive singles with a run-scoring double, 
and Lampkin capped the four-run first 
with an RBI groundouL 

McGee's second homer of the sea- 
son. a two-run shot, gave the Cardinals a 
6-1 lead in the fourth. 

Clark, who bruised a band trying to 
catch a ball hit by Royce Clayton tore- 
handed to open the fourth, was tagged 
for six runs and eight bits in four in- 
nings. X-rays on his hand were neg- 

Sl Louis made it 8-1 in the fifth on 
Lampkin 's two-run single off Ricardo 

Pete Hamisch was back in uniform 
for the Mets. 

Hamisch, diagnosed with depression, 
rejoined his teammates for the first time 
since the disease forced the pitcher to 
leave the club last month. 

After an anxious Saturday night, he 
decided to give it a go Sunday for the 
Mets’ game against die St Louis Car- 

“Right now. I'm at a little crossroads 
as far as die medication I'm taking,” he 
said. “I'm getting better. The anxiety is 
getting better at this point” 

Hamisch, whose playing weight is 
listed at 207 in the team's press guide, 
has lost more than 20 pounds since 
leaving the Mets five days after pitching 
their season opener at San Diego. 

He appeared weak and a bit leth- 

■ Bird Weighing Facers* Offer 

The former NBA great Larry Bird is 
considering an offer to be the next coach 
of the Indiana Pacers. The Associated 
Press reported from Indianapolis, citing 
published reports. 

Newspapers in Indianapolis and Bos- 
ton said Saturday that Bird also was 
considering an offer from the Boston 
Celtics to become coach or to take an- 
other position with the franchise for 
which he starred for 13 years. 

Bird, no w a consul tant for the Cel tics, 
was quoted Saturday as saying that if he 
left Boston, it would to be to join the 

Mussina Wins Cash, Loses Gai 

Orioles Fall After Giving Right-Hander $21 Million 

The Associated Press 

Jason Giambi hit a two-run hooter off 
Randy Myers wiih two outs in the ninth 
inning to deprive Mike Mussina of a victory 
to go with his new $21 million contract 

Giambi's home run Saturday gave the 
Oakland Athletics to a 4-3 victory over 
the Baltimore Orioles. 

Myers was 11 -for- 11 in save oppor- 
tunities this season. He got two outs but 
then Damon Mashore doubled and Gi- 
ambi hit an 0-1 pitch over the center- 
field wall for his fourth homer. 

That ruined Mussina's bid for a 
fourth straight victory. The right-hander 
pitched 6VS innings and left with a 3-1 
lead after allowing four hits, two walks 
and striking out seven. 

After the ga m e, Baltimore announced 
that Mussina bad been given a three- 
year, $21 million contract extension. 

“Sometimes money isn’t that big a 
deal,” said Mussina. 

The contract, which will start in 1998, 
is the third highest signed by a pitcher. 
The Blue Jays are paying Roger Clemens 
$8.25 million a year for three years. John 

Smoltz of the Braves has a four-year 
contract worth $7.75 million a year. 

Giambi hit a hanging slider for his 
fourth homer and the first runs off My- 
ers this season. 

Baltimore loaded the bases with two 
outs, before Billy Taylor retired Pete 
Inca vi glia oo a groundouL 

“Does every game have to end with 
the bases loaded, the count 3-and-2 and 
everyone running?” Art Howe, the 
Oakland manager asked. 

Brown* i7 ( MarinMrs4 John Jaha. and 
Matt Mieske hit consecutive homers 
during an eight-run second inning, and 
Tim unroe hit a grand slam in the ninth 
as Milwaukee won in Seattle. 

The Brewers tied a franchise record 
with 1 1 extra-base hits, including seven 
doubles and four homers. 

Rangaw 7, Rad Sox « Dean Palmer hit 
a two-run single with one out in die 
ninth inning, giving Texas a victory 
over visiting Boston. 

The Rangers loaded the bases with one 
out in the ninth on a walk to Rusty Greer, 
a double by Juan Gonzalez and an in- 
tentional walk to WHl Gaik. Palmer then 
singled to scene Greer and Gonzalez. 

Hoyala 2, Yankaaa i In Kansas Gty. 
Tim Belcher pitched an eight-hitter as 
the Royals handed Andy Petti tre his first 
loss this season. 

Belcher walked two, struck out three 
and retired 1 6 hitters on groundball outs. 
Petrine (5-1) allowed six hits and one 
earned nrn. 

Angela 3, White Sox 2; White Sox 4, 

Angela 2 Ray Durham had five hits in 
rune at bats for Chicago as it split a 
double header with visiting Anaheim. 

In die first game, Allen Watson 
pitched seven shutout innings for the 
Angels. Durham, who hit a two-run 
single in the ninth inning of the first 
game, singled, homered and doubled in 
his first three at-bats in Game 2. 

Indiana 7, Tigers 6 Sandy Alomar'S 
tun scoring single with two outs in the 
ninth lifted Cleveland to Its 1 3th straight 
win over Detroit The Tigers have lost 
15 straight games in Cleveland. 

Detroit looked like it 'might end the 
slide intbe ninth when the Tigers took a 
6-5 lead on Brian Hunter’s run-scoring 
single. But aided by a wild pitch from 
Doug Brocail and a passed ball, the 
Indians tied it cm David Justice's sac- 
rifice fly before Alomar singled just over ' 
right fielder Melvin Nievers’s glove. 

Mm Jay* 6, Twin* 5 In Toronto, 
Gregg Olson walked Carlos Delgado on 

Takas hi Kashiwada pitching for the Mets 

Dan Brnnen/Agaaoe Ba uu i- f i m e 

against the Cardinals. 

four pitches with the bases loaded and 
two outs in the ninth to give the Blue 
Jays the winning run. 

After the Twins rallied to tie the game 
with two runs in the ninth the Blue Jays 
took advantage of four walks off three 
Minnesota relievers. 

In National League games: 

ii«ts 5, Cardinals i Rick Reed pitched 
seven strong innings and Carlos Baerga 
went 4-for-4 as New York won for the 
sixth time in seven games by beating 
visiting SL Louis. 

Reed gave up one run and six hits 
before leaving tor a pinch-hitter in the 
seventh. The right-hander struck out six. 
walked none, but even so his earned run 
average rose from 1.03 to 1.07. 

Maurfin* 9, Astro* 8 Florida ended its 
10-game read losing streak on Moises 
Alou’s two-out infield single in the 13th 

inning . 

With two outs, Kurt Abbott and Gary 
Sheffield hit consecutive singles to put 
runners on first and third. Alou then hit 
a sharp grounder to the left of third 
baseman Sean Berry, who knocked the 
ball down but had no play at first as 
Abbott scored the go-ahead run. 

The Astros threatened in the bottom 
of the 13th but Berry hit into a game- 
ending double play. 

Bodae*7,PtiaEkw3 In Denver, Jamey 
Wright pitched seven effective innings 
for his fourth win and Colorado took 
advantage of nine walks. 

Wright (4- 1 } allowed four hits in seven 
innings, struck out four and walked Four. 
The nghr-hander has won all four starts 
in which he has gone seven innings. 

The Rockies didn't hit a home ran for 
only the third time this season, and man- 

aged only seven hits off five pitchers. 

Rads 3, Giants i Cincinnati scored 
three unearned runs, the first on Lenny 
Harris’ suicide squeeze in the eighth on 
the way to victory in San Francisco. 

John Smiley struck out eight in seven 
innings to snap a personal five-game 
losing streak. He gave up seven hits and 
didn't walk a batter as the Reds won their 
second straight after losing nine of 10. 

San Francisco has lost five of six and 
is 4-7 since a 13-3 start. 

Cute 2 , Dodger* 1 In Los Angeles, 
Teny Mulholland pitched 8% strong 
innings and Chicago turned three errors 
into a pair of unearned runs to beat the 

Mulholland was replaced by Mel Ro- 
jas after giving up his sixth hit, a two-out 
angle to Eric Karros in the ninth. Rojas 
then gave up consecutive singles 10 Raul 
Mondesi and Todd Zeile that cut the 
Cubs’ lead to 2-1. Terry Adams relieved 
Rojas and retired Wayne Kirby on a 
groundout to earn the save. 

Padres 1 , Expos 0 In San Diego, Tim 
Worrell allowed three hits in 736 Innings 
and Tony Gwynn knocked in the game's 
only run with a first-inning home ran. 

Worrell. 0-3 with a 6.16 ERA in his 
last four outings, retired 1 1 straight bat- 
ters before ranning into trouble in the 
eighth inning. 

PinaM3!,Brav*sOEsteban Loaiza out- 
dueled Tom Glavine in a battle of un- 
beaten pitchers in Atlanta and Pittsburgh 
won a season-high third straight game. 

Loaiza shut out the Braves on four 
hits over eight innings. 

It was the first shutout this season for 
the Braves, the National League’s top 
hitting team. 

BASKETBALL Women’s professional leagues battle for position p.22 ICE HOCKEY Flyers blunt Sabres in playoffs 

PAGE 24 

World Roundup 

MfctaeJ Pitbartoc AnOMKd Fiat 

Iva Majoli returning to Rux- 
andra Dragomir on Sunday. 

Majoli Takes Title 

TENNIS Iva Majoli captured the 
first day-court title of her career 

and her second championship of 

the year by overwhelming doiifc 
partner Ruxandra Dragomir 6-3, 
6-2 Sunday in the final of the 
Rexona Cup in Hamburg. 

The Croatian cruised through 
the match in 63 minutes, losing 
only one of her service games to 
win $79,000. 

• Mark Philippoussis served 19 
aces Sunday in his 7-6, 1-6, 6-4 
victory over Alex Corretja in the 
final of the Munich Open. 

“All you can do is stand and 
a dmire it," Corretja said. “You 
feel like a mouse out on the 

• Cedric Pioline won the 
second ATP Tour tournament of 
his career Sunday when he brat 
Bohdan ULihrach, a Czech, 6-2, 
5-7, 7-6 in the Czech Open in 
Prague. Pioline wasted three 
match points before taking a third- 
set tie-break. (AFP, AP, Reuters) 

Langer Edges Olazabal 

golf Bernhard Laager shot a 
course record 64 Sunday to edge 
past Jose Maria Olazabal and win 
the Italian Open in Brescia. It was 
Laager's first European Tour title 
for nearly two years. 

The German began the final 
round three strokes behind Olaza- 
bal. Langer won by one stroke 
after making four birdies in the 
last five holes while the Spaniard 
collected pars. 

• Phil Blackmar, who has not 
won since 1988, and second-year 
Tour player Kevin Sutherland 
were deadlocked at 10-under-par 
206 heading into the final round of 
the Houston Open. (AP, Reuters) 

Sleepytime Wins Easily 

HORSE RACING Sleepytime 
gave trainer Henry Cecil his fifth 
1,000 Guineas success with an ef- 
fortless four lengths victory 
Sunday in the fust fillies' classic 
of the British season. (Reuters) 

Ping-Pong Politics 

table tennis China is consid- 
ering ordering three of its women's 
doubles teams to allow a Hong 
Kong player to win as a public 
relations gesture at the world 
championships in Manchester. 

China, which has already won 
three titles, has three pairs in the 
semifinals of the women's 
doubles. According to a Chinese 
source who declined to be iden- 
tified, they may be asked to allow 
the China-Hong Kong combina- 
tion of Qiao Y unping and Chai Po 
Wa to take the title. 

• Qatar and Iran said their 
teams were delayed by traffic 
while Algeria argued that two of 
its players were ill. 

Their reasons for not playing 
matches against Israel were ac- 
cepted by a tournament jury 
Sunday, but they far from satisfied 
the Israeli team, which had de- 
manded punishment. 

All three countries claimed they 
had no objection to competing 
against Israel. (AP) 

7* ?TivTO»MTiirvu.®# « r 


MONDAY; MAY 5, 1997 

Substitutes Save 9-Man Bayern Munich 

Cwnprifd fa Our Sktf Fnm Uupmktj 

Bayern Munich, the Bundesliga lead- 
er, salvaged a 3-3 tie with local rivals 
1 860 Munich thanks to a Carsten Janck- 
er goal two minutes from die finish. 

Bayern was reduced to nine men after 
wing back Christian Ziege and captain 


Lothar Maithaeus were sent off for their 
second yellow cards in the second half. 
Yet the league leader twice came from 

I860, which has not beaten Bayern 
since 1977, raced to a 2-0 lead with two 
goals from Horst Heldt. 

Juergen Klinsmann pulled one back 
for Bayern just before the break and 
Mebmet Scholl added a spectacular 
second eariy in the second half. 

Joerg Boehme, a substitute for 1860, 
put his team 3-2 ahead with his first kick 
of the ball in the 82d minute but Janck- 
er's late strike meant Bayern preserved 
its three-point lead over Bayer 

In the 15th minute, Heldt ran almost 
the length of the field before slotting the 
ball past Bayern goalie Oliver Kahn. 

He added a second just three minutes 
later after Olaf Bodden was brought 
down. Kahn parried Heldt 's penalty but 
Herldt followed up to ram the tell 

Klinsmann scored with a bullet head- 
er. Then Scholl, who replaced Dietmar 
Hamann, bought Bayern level in die 
59th minute, dribbling past several 1 860 
defenders on the edge of the penalty 
area before firing the tell home. 

Werner Lorant, the 1860 coach, 
brought on Joerg Boehme in the 8 2d 
minute. The 23-year-old midfielder cut 
back inside the Bayern area with his first 
touch and then rifled a vicious shot past 
Kalin. Bayern's misery was compoun- 
ded moments later when Matthaeus was 
sent off. 

Jancker, who replaced Klinsmann in 
the 70th minute, turned brilliantly inside 
the area and shot past Rainer Berg in die 
1860 goal. 

* Leverkusen played Borussia 
Moenchengladbach on Saturday and 
tied 2-2 after conceding a goal in last 
seconds when Martin Dahlin collected a 
desperate downfield pass and scored. 

British tabloids reported Sunday that 
Klinsmann had agreed to return to Tot- 
tenham Hotspur of the English Premier 
League next season. 

BRAIN Real Madrid came from be- 
hind on Sunday to beat Sporting de 

Magic Miracle 
Falls Short, as ijflfy 
Heat Move On \$on& a 

t foole* 

( ^>}({ Rush 

The Associated Press 

MIAMI — The Miami Heat with- 
stood one last comeback by the Orlando 
Magic on Sunday. 

Orlando scored 10 consecutive points 
midway through the fourth quarter and 
reduced a 17-point deficit to three, but 
Miami held on for a 91 -S3 victory in die 
deciding fifth game of the first-round 
playoff series. 

Tim Hardaway shook off a shooting 
slump to hit two baskets — an off- 


be - 

Sonics eliminate the Suns. Page 23. 


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balance 20-footer and a 3 -pointer from 


24 feet — ■ in the final 43 seconds to 

pi or 

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Olaf Bodden, left, of I860 Munich battling for a header Sunday with Thomas Helmer of Bayern Munich. 

Gijon 3-1 in a match in which its fans 
booed Italian coach Fabio Capello. 

Davor Suker scored in the 38th and 
71st minutes and Roberto Carlos 
thundered in a third goal to put Real 1 1 
points ahead of FC Barcelona which 
plays Monday at Extremadura. 

Throughout die game Real fans 
shouted insults at coach Fabio Capello, 
who five days earlier had announced his 
decision to leave die club at the end of 
the season. 

Madrid fell behind 1-0 at minute 29 
on a score by Sporting's Russian striker 
Dmitri Tcherisev. 

In Seville, Betis lost ground with a 0- 
0 draw against mid-table Compostela. 

Chi Saturday, Deportivo de La Co- 
runa flattened Seville 3-0. Rivaldo 
scored twice. He has scored in sixth 
consecutive games. 

France Monaco won the French 
league title without kicking a ball when 

Bordeaux held Paris St Germain to a 2- 
2 draw at the Pare des Princes. 

The Parisians needed a win Saturday 
to retain its slim hope catching the team 
from the principality. It started the game 
nine points behind Monaco with three 
games to play. PSG needed to win all'its 
remaining games while Monaco lost 
three times. 

The Parisians remained second in the 
table, if they hold that position they will 
qualify for the European Cup Cham- 
pions’ League next season. 

Third-placed Nantes also drew 0-0 at 
Guingamp and trails Paris St Germain 
by three points. 

PSG took the lead after the 14th 
minute when Bruno N’Gotty scored 
from a free kick. 

Jean-Piecre Papin equalized in die 
39th minute from across by Ibrahim Ba. 
the game's best player. 

Bordeaux took a 2-1 lead with a goal 

by Kaba Diawara with two minutes left. 
But Rai equalized immediately. 

Scotland Celtic beat Hibernian 3-1 
Sunday to deny bitter rival Glasgow 
Rangers die Premier League title, at 
least lor 24 hours. 

Celtic kept alive their very remote 
hopes of denying Rangers the cham- 
pionship thanks to two goals from Por- 
tuguese striker Jorge Cadete. 

However. Rangers need only one 
point from its game against Motherwell 
on Monday to win die title. 

NETHERLANDS Argentine striker 
Pablo Sanchez scored both goals as Fey- 
enoord beat NAC Breda 2-0 on Sunday 
to move to the top of the Dutch first 
division. Feyenooid have 69 points, one 
more than PS V Eindhoven, who did not 
play this weekend but could regain top 
spot on Wednesday when it meets 
Sparta Rotterdam. (AP, AFP, Reuters) 

Italian, English Leagues, Page 22 

clinch the victory. The Heat survived 
Penny Hardaway’s 33-point effort and 
won a playoff series for the first time in 
their nine-year history. 

Miami, the Atlantic Division cham- 
•ion, advanced to the second round of 
i playoffs where it will meet the New 
York Knicks, formerly coached by their 
own mentor, Pat Riley. 

The Heat blew out Orlando in Miami 
in the first two games before the Magic 
bounced back at the O-rena. The home 
team won every game in the series by an . 
average margin of 16 points. 

Miami missed nine consecutive shots 
in the fourth quarter on Sunday before 
Tim Hardaway sank his 20-footer — 
while being closely warded by Darrell 
Armstrong — for an 86-80 lead with 43 
seconds to go. He then answered Penny 
Hardaway’s 3-pointer with a 3-pointer 
of his own, making the score 89-83 with 
14 seconds left. 

Thn Hardaway shot just 5-for-20.. 
from the floor and finished with 1 l 
points. He shot 30 percent in the r 

Orlando struggled against Miami's 
stifling defense, shooting just 39 per- 
cent Penny Hardaway, who had 42 
points in Game 3 and 41 in Game 4 for 
the Magic, faced frequent double-team- 
ing for the first time in the series and 
missed 14 of 22 shots. He had 10 as- 

With Orlando starters Horace Grant 
and Rony Seflcaly still sidelined by in- 
juries, the Heat’s Alonzo Mourning 
dominated inside after a slow start. He 
scored 22 points and added 12 re- 

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Silver Charm Holds On in Derby 

By Andrew Beyer 

Washington Post Service 

LOUISVILLE, Kentucky — One 
year ago the trainer Bob Baffert 
whooped as the horses crossed the finish 
line in the Kentucky Derby, thinking his 
colt, Cavonnier, had won America's 
most famous horse race. The camera 
disclosed that he had lost by a fraction of 
an inch, and Baffert has been tormented 
by the memory ever since. 

Saturday he was thinking, “Here it 
comes again! Please, Lord, don't to it to 
me again." His colt. Silver Charm, was 
leading in mid-stretch at Churchill 
Downs, but Captain Bodgjt was ac- 
celerating strongly and gaining with 
every stride. A 16th of a mile from the 
wire. Silver Chaim looked beaten, but 
jockey Gaiy Stevens summoned Silver 
Charm's last reserves of energy, and he 
surged to win by a head. 

At Baffen’s side. Bob and Beverly 
Lewis felt a similar emotional weight 
lifted from their shoulders. They have 
poured millions into the game in the 
search for a Derby-caliber horse, mostly 
by having the trainer Wayne Lukas buy 
high-priced yearlings for them. But they 
permitted Baffert to buy an occasional 
modest horse and he picked up the 
young Silver Chaim for $85,000. The 
outcome of Saturday's race confirmed 
the widespread opinion that Baffert, 44, 
is one of the rising stars of his pro- 

There was a groundswell of support 
at Churchill Downs this week for Baf- 

fert’s colt, who had run gamely in defeat 
in the Santa Anita Derby and had trained 
exceptionally well here. So. too, was 
there much enthusiasm for the consist- 
ent colt from Maryland, Captain Bodgit 
While most of the media attention had 
centered on the regally bred, once- 
beaten Claiborne Farm colt Pulpit the 
betting public knew best The crowd of 
141,981 shunned Pulpit making Cap- 
tain Bodgit the 3-to-l favorite and Sil- 
ver Charm the 4-to-l second choice. 

Each of the contenders had a fair shot 
at Derby glory; each got the trip he 
wanted, none had any trouble. 

When the gate opened, Stevens was 
pushing aggressively on the speedy Sil- 
ver Charm as if be wanted the lead. 
There were several potential front-run- 
ners in the field, and each jockey wanted 
to see what the others were doing. As 
Shane Sellers on Pulpit and David 
Flores on Free House rushed to the 
front, Stevens put his mount under re- 
straint “The first turn was critical for 
me." Stevens said. “I was able to get 
the stalking position I wanted." 

The leaders were setting an honest 
pace — an opening half-mile of 47 and 
two-fifths seconds run mostly into a 
headwind — as Silver Charm sat just 
outside them. Meanwhile. Aiex Solis 
was sa ving ground with Captain Bodgi t 
sitting about eight lengths off the pace, 
with the leaders in his sights. 

Just as Stevens turned Silver Charm 
loose on the final cum, Solis was putting 
Captain Bodgit into high gear and 
angling wide for room. A quarter-mile 

from the finish, it was evident the race 
was going to boil down to die favor- 

Captain Bodgit drew abreast of Silver 
Charm in mid-stretch and looked as if be 
was going to go on by. But he drifted in 
and slightly lost his momentum, while 
the leader fought back. Stevens said 
Silver Charm “had started relaxing a 
little bit when he got the lead. But we 
could have gone around again and they 
wouldn’t have caught him." The vic- 
tory gave .Stevens his third Derby tri- 

Silver Charm covered the 1 Vs miles in 
2:02 and one-fifth. The top pair finished 
3‘A lengths ahead of Free House, the colt 
who had nosed out Silver Charm in the 
Santa Anita Derby. . 

Pulpit finished another three lengths ' 
back in fourth place, his reputation as a 
budding superstar shattered. Sellers 
said: “When we were on the back- 
stretch, I felt I was going to win my first 
Kentucky Derby. But he wasn’t able to 
sustain a drive." 

When Silver Chaim's nose hit the 
finish line first, Baffert ’s emotional re- 
action was predictable; he had finally 
erased the most painful memory of his 
professional life. But it was Bob Lewis 
who summoned up the overpowering 
nature of the experience. After the race 
he was asked if this was the most sat- 
isfying victory of his life, and he said it 
was more than that. On his tombstone. 
Lewis said, he wanted this epitaph: 
“Adoring father, loving husband, and 
winner of the 123d Kentucky Derby.” 


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Gary Stevens aboard Silver Charm rocketing down the home stretch. 

Every country has its own AT&T Access Number which 
makes calling from France and other countries really 
easy. Just dial the AT&T Access Number for the country 
you’re calling from and you’ll get the fastest, clearest 
connections. And be sure to charge your calls on your 
AT&T Calling Card. U’ll help you avoid outrageous 
phone charges on your hotel bill and save you up to 60 %? 
So please check the list for AT&T Access Numbers. 

XT&T Access Numbers 

intrmalionafly from overseas: 

I Just dial the AT&T Acqm Number 
for the amn&Y you are calling from. 

1 Dal the phone number you're calling. 
3- Dial the calling card number listed 

above your name. 


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